Shareholder Group Holds Third Dialogue with Kobe Steel Executive Vice President Nagara
On 28 August 2026, a shareholder group comprising Corporate Action Japan (CAJ) and overseas institutional investors held a dialogue on decarbonisation strategy with Kobe Steel, Ltd. Kobe Steel was represented by Hajime Nagara, Representative Director and Executive Vice President, along with officials from the General Administration and CSR Department. The session focused primarily on balancing steady decarbonisation progress with long-term corporate value enhancement through Q&A between the shareholder group and management. This dialogue was conducted to deepen discussions following Kobe Steel’s response to the letter submitted by CAJ on 22 April 2026.
During the dialogue, the shareholder group first requested detailed explanations regarding Kobe Steel’s decarbonisation targets, blast furnace transition plans, and efforts towards market creation and international standardisation for green steel. Furthermore, the group sought management’s perspective on the status of establishing reduction targets and implementation pathways towards GHG emissions neutrality by FY2050.
In response, Kobe Steel outlined concrete transition strategies, explaining that it is considering the introduction of scrap melting furnaces (involving an investment of approximately JPY 100 billion) while evaluating CAPEX, OPEX, and product quality. The company also highlighted its active engagement in promoting international standardisation of the mass balance methodology for green steel. Regarding additional interim targets post-2030, Kobe Steel noted that it ‘will continue to examine what targets can be set during the formulation process of the next Medium-Term Management Plan, taking into account uncertainties in technological development and market formation.’
The steel industry is one of the hardest sectors to decarbonise. It faces complex challenges that exceed the capacity of any single company, ranging from international rule-making trends such as Europe’s Carbon Border Adjustment Mechanism (CBAM) to resource acquisition competition for high-quality scrap and securing stable supplies of renewable energy. Nevertheless, we expect Kobe Steel to fully incorporate these factors and peer strategies into its business strategy, partner closely with supply chain and industry trade groups, and play a leading role in driving decarbonisation across the entire industry. Corporate Action Japan remains committed to continuing constructive engagement built on trust to support Kobe Steel’s sustainable growth and long-term corporate value.
