A group of investors associated with Market Forces have teamed up with Kiko Network to ramp up pressure on Japan’s top three banks to cut financing linked to fossil fuels ahead of their respective annual meetings.
According to a Reuters report citing sources close to the matter, the coalition is filing shareholder proposals at Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group.
The coalition last targeted Mitsubishi UFJ in 2021, when a shareholder proposal urging the bank to disclose its strategy to align with Paris Agreement goals received 23% support from shareholders.
Sumitomo Mitsui was hit with the same proposal at its 2022 annual meeting, which won 27.7% support. A second proposal seeking fossil fuel financing reporting garnered 9.8% support from shareholders. Earlier this year, the bank committed to phasing out corporate and project financial exposure to coal mining and coal-fired power plants by 2040.
Mizuho Financial’s 2020 annual meeting also saw investors lend 34.5% support to a proposal seeking disclosure on the bank’s business strategy to align investments with the goals of the Paris Agreement.
The coalition of investors includes representatives from Friends of the Earth Japan and Rainforest Action Network.
Tokyo Electric Power, Chubu Electric Power, and trading house Mitsubishi Corp. are also expected to face shareholder proposals from the coalition this year regarding their climate commitments.
Under Japanese corporate law, the proposals will need to recieve two-thirds majority support to pass at the annual meetings, as they are asking the banks to amend their articles of incorporation.