Mitsubishi Corporation

Despite its net zero emissions by 2050 commitment, Mitsubishi Corporation (Mitsubishi) is undermining this goal with its pursuit of new gas production and infrastructure projects. 

The International Energy Agency finds in its Net Zero Emissions by 2050 Roadmap that there is no room for new oil and gas fields, significant stranded asset risk for liquefied natural gas (LNG) facilities, and that gas use for power must rapidly decline. Yet Mitsubishi is pursuing new projects to significantly expand its LNG and gas power operations, and has no policies to rule out or in any way restrict their development, effectively betting shareholder capital against the net zero by 2050 energy transition it claims to support.

The company has also set a medium-term emission reduction target that fails to manage the significant exposure to transition risk represented by its Scope 3 emissions. Without effective and comprehensive short- and medium-term emission targets covering Scope 1, 2 and 3 emissions, and a capital allocation framework aligned with the company’s own net zero by 2050 commitment, Mitsubishi is at significant risk of contradicting the goal and the timeline of net zero emissions by 2050, which it claims to support.

Extensive engagement with Mitsubishi by Market Forces, Kiko Network, and Friends of the Earth Japan (among others) has not led to adequate changes from the company. As a result, shareholder proposals making the following requests of Mitsubishi have been filed:

1. Adopt and disclose short- and medium-term greenhouse gas emission reduction targets aligned with the climate goals of the Paris Agreement.
2. Disclose an assessment of how a net zero by 2050 pathway would affect the assumptions, costs, estimates, and valuations underlying capital expenditure investments in the development of new upstream, midstream and downstream oil and gas assets.

Investors should vote for these proposals at Mitsubishi’s AGM at the end of June 2022.

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