Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. These proposals mark the first time climate groups have targeted the banks' boards to pressure them on climate change.
The proposals focus on board oversight of climate-related business risks and seek to make the banks disclose how they evaluate director competency for such oversight. Additionally, the groups are calling for the banks to disclose credible transition plans to meet carbon-neutral targets by 2050. These proposals reflect governance standards set by the International Sustainability Standards Board (ISSB) that require disclosure around how governance bodies oversee sustainability-related risks.
The proposals will be voted on at the banks' annual general meetings in June. Last year, similar climate proposals received around 20% backing from shareholders. The climate groups are also urging the banks to disclose how they assess fossil fuel sector clients' climate change transition plans and their actions in case of inadequate plans.
Shareholder activism on climate change has gained momentum in Japan since 2020, when Mizuho became the first listed company in the country to face a climate-related vote.