Dialogue with Mr. Hajime Nagara, Executive Vice President of Kobe Steel
On June 4, a shareholder group comprising Corporate Action Japan and overseas institutional investors held a constructive dialogue with Mr. Hajime Nagara, Executive Vice President and Representative Director of Kobe Steel, along with other company representatives. Over the course of this ongoing engagement, the shareholder group has deepened its understanding of Kobe Steel’s efforts regarding climate change and sustainability, while actively supporting the company’s concrete initiatives in these areas. This recent interaction with the company’s leadership is viewed as evidence of Kobe Steel’s sincere approach to listening attentively to even critical feedback, as well as its steadfast commitment to maintaining open and constructive dialogue with its shareholders. Corporate Action Japan highly appreciates this approach.
During the meeting, following the release of the company’s mid-term business plan for 2024–2026, the shareholder group raised several key issues, expressing concerns and requesting further clarification on the rationale behind certain decisions, as well as on the company’s future policies. Specifically, the group strongly sought greater clarity on the impact of postponing the introduction of electric furnaces on the company’s international competitiveness and its greenhouse gas (GHG) reduction strategies, as well as on the economic viability of its decarbonization initiatives, such as ammonia co-firing. In response, Kobe Steel provided a comprehensive explanation of its decarbonization strategy, detailing its current progress and challenges, while reaffirming its strong commitment to achieving carbon neutrality.
The steel and power sectors, often categorized as “hard-to-abate sectors,” face significant challenges that cannot be addressed by any single company in isolation. These challenges include not only domestic regulatory changes but also substantial global shifts, such as alterations in trade-related regulations and the evolving dynamics of the supply chain. Given this context, the shareholder group expressed its strong expectation that Kobe Steel will implement a more ambitious and detailed decarbonization strategy and accelerate its execution.
Corporate Action Japan remains committed to supporting Kobe Steel’s sustainable growth and further enhancement of its corporate value and will continue to engage in constructive dialogue.
