J-POWER disclosures welcome, but questions remain

Electric Power Development Co., Ltd (J-POWER) has published its 2026 TCFD report providing additional detail on how it makes and evaluates investment decisions.

The disclosures follow sustained shareholder engagement with J-POWER by ACCR and several institutional investors, who have engaged regularly with the company on its transition plan, capital allocation decisions, and long-term corporate value since early 2022.

Recognising the additional information provided on the company’s investment framework, ACCR and the co-filing institutional investor have withdrawn their shareholder proposal.

The proposal asked for an investment framework outlining how the board evaluates major investments exposed to transition risks, together with a comparative analysis of the cost of emissions reductions across different technologies.

As a result of the withdrawal, the proposal will no longer be put to a vote at this year’s AGM.

Shareholders will continue engaging with J-POWER to elicit further information about the cost efficiency of the technologies used to reduce emissions to meet the company’s carbon neutrality goal. The disclosures show that the company plans to invest significant capital in transition technologies, including CCS, coal gasification, and ammonia/biomass cofiring which are expected to contribute only a limited proportion of the company’s emissions reductions to 2030 and 2035.

Martin Norman, Head of Stewardship, Global, ACCR, said:

“J-POWER's disclosures, while welcome, only heighten concerns about the company’s transition plans and corporate value. J-POWER anticipates investing significant capital into technologies like CCS, biomass, and ammonia which are not only expensive and dependent on long-term policy support but, as these disclosures reinforce, also seem to deliver only limited emissions reductions when compared to a strategy where coal plant closure is prioritised.

“This raises the question of whether J-POWER’s management plan and Blue Mission 2050 strategy are aligned with where future value is shifting in the electricity sector. We expect that long-term investors will dig into these disclosures and scrutinise whether J-POWER has the ability to adjust the business portfolio appropriately through the energy transition.

“We will continue to engage with J-POWER about their transition strategy and the associated capital allocation decisions as they prepare their forthcoming management plan.”