An investor webinar was held to provide background information on the joint shareholder proposal submitted to Nippon Steel Corporation (hereafter “Nippon Steel”) by Corporate Action Japan (CAJ), the Australian Centre for Corporate Responsibility (ACCR) and Legal & General Investment Management (LGIM). To view the webinar recording visit here, and read more about the joint shareholder proposal here.

Background

Nippon Steel has set a target of achieving carbon neutrality by 2050. However, investors are concerned about the risks to long-term shareholder value associated with its climate strategy and alignment with the goals of the Paris Agreement, particularly in relation to transparency on short- and medium-term targets and investment plans, corporate governance and lobbying activities.

CAJ has engaged in constructive dialogue with a group of shareholders, including LGIM, ACCR, Amundi, Nordea Asset Management and Storebrand Asset Management. Ongoing discussions have focused on Nippon Steel’s climate change strategy, disclosure and governance. However, the shareholder group concluded that our concerns had not been fully addressed and that improvements and progress had not been made within the expected timeframe.

In light of this, we have put forward a joint shareholder proposal to Nippon Steel, suggesting ways in which they could enhance their decarbonisation strategy and protect the long-term interests of shareholders.