Chubu Electric Power Company, Incorporated | Partial amendment to the Articles of Incorporation (disclosure of asset resilience in line with a Net Zero by 2050 Pathway)

Status
19.90% votes in favour
AGM date
Proposal number
9
Resolution details
Company ticker
9502
Lead filer
Market Forces
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Utilities
Company HQ country
Japan
Resolved clause
Resolution Content
The following clause shall be added to the Articles of Incorporation.
clause (1) Compatibility with Decarbonized Society
clause (2)rticle X. Disclosure of Asset Resilience to a Net Zero by 2050 Pathway
(1) To promote the long-term success of the Company, given the risks and opportunities
associated with climate change, the Company shall include annually in its corporate
reporting an assessment of how a net zero by 2050 pathway would affect the
assumptions, costs, estimates, and valuations underlying the Company’s energyrelated assets. The assessment shall include all energy-related assets of all group
companies and business segments.
(2) Omitting proprietary information, the disclosures shall include key assumptions and
estimates, including those related to long-term commodity demand, long-term
commodity and carbon prices, asset lives, future asset retirement obligations, capital
expenditures and impairments.
Supporting statement
This proposal seeks the Company to disclose necessary information in order for shareholders to determine the resilience of the Company’s assets to a scenario where carbon neutrality is reached by 2050, consistent with the policies of many countries, including Japan and key trading partners. The TEPCO Group is exposed to significant transition risk due to its significant involvement in fossil fuel-related businesses, and this is set to expand under current plans. It is, therefore, an urgent imperative for the Company to ensure maintaining long-term corporate value under a net zero by 2050 scenario by assessing the resilience of the energy-related assets owned by all business segments of the Company.
The information disclosure this proposal seeks is commonly expected among investors through the Task Force on Climate-related Financial Disclosures (TCFD), investor groups (e.g. IIGCC), and shareholder proposals in other markets. Global peers of the Company are already disclosing this type of information in more detail. An approval of this proposal will provide investors with critical information required to understand the security of their capital. It will also place the Company in a better position to manage transition risk and opportunities, and to maintain long-term corporate value as the Company shifts toward a decarbonized economy.

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