Global investors pressure Asian utilities to reduce emissions

As part of the new climate change participation plan, global investors including JPMorgan Chase and Fidelity will require the five most polluting power generation companies in Asia to reduce greenhouse gas emissions.

With total assets of US$8.8 trillion, this group of investors will target utility companies operating large coal-fired businesses in China, Hong Kong, Japan and Malaysia. According to supporters of the plan, these power companies produced a total of approximately 285 million tons of carbon dioxide in 2019, which is equivalent to Spain’s national emissions. Other investors include the asset management divisions of BNP Paribas and Amundi in Europe, and Sumitomo Mitsui in Japan.

This signifies that global investors have recently pushed major polluting companies to reform their businesses and take action on climate change issues.

China Resources Power Holdings, Hong Kong CLP Holdings, National Energy Malaysia, Central Japan Power and J-Power have been informed of the participation plan to be launched on Monday.

According to documents seen by the US government, these utility companies were singled out by investors because they generate large amounts of greenhouse gas emissions, have huge coal-fired power generation capacity, or are seen by investors as achieving the global net zero emission target Aspect has a strategic role. Financial Times.

The plan is coordinated by the Asian Climate Change Investors Group, which has 56 members from 13 countries and manages more than $15 trillion in assets.

“The carbon emissions of Asian utilities account for 23% of the world’s total carbon emissions,” said Rebecca Mikula-Wright, executive director of AIGCC. “The transition of Asian utilities to net zero emissions is critical for the world to achieve its Paris Agreement goal of limiting global warming to 1.5C.”

According to the plan, investors will challenge the board’s responsibility for climate risk, how they will phase out coal use in a way that meets the goals of the Paris climate agreement, their disclosures and how they will achieve net zero emissions by 2050.

The plan will run in parallel with similar plans pursued Initiated by the Climate Action 100+ initiative, this is an influential global investor group with more than 500 members including BlackRock and Pimco.

Paul Millon, BNP Paribas’ Asia Pacific management director, said that the new plan will target some Asian utility companies that are not covered by the Climate Action 100+ plan and are highly dependent on coal.

“We believe that constructive dialogue with these key companies can facilitate their transition to net zero emissions,” he said.

“Investors have strong expectations for these companies. What they need to do to meet our own expectations in order to continue to invest in these companies in the medium to long term.”

J-Power stated that it is promoting the use of hydrocarbon-free power generation and has set a temporary goal of reducing carbon dioxide emissions by 40% by 2030 compared to 2017-19 levels.

CLP stated: “We welcome participation and look forward to discussing our decarbonization plan with AIGCC.”

Zhongbu Electric declined to comment on the matter.

China Resources Power and National Energy did not respond to requests for comment.

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