Carbon Dioxide (CO2) released by incinerating fossil fuels such as oil, coal and natural gas is the main cause behind the planet’s warming. As a new measure to resolve the issue of global warming, 350.org is promoting a divestment initiative around the world, calling for the withdrawal of investments and loans in fossil fuel-related companies.
The Ministry of Environment announced its intention to newly construct (with certain conditions) coal-fired thermal power stations that emit large amounts of carbon dioxide, despite continually having stated that it “could not approve” doing so. The Paris Agreement reached last year is behind a strengthening global tide to “shift away from carbon dioxide”. This change of direction in policy will surely invite harsh criticism from international society towards Japan, the country hosting this year’s G7 Summit.
To express a dissenting view against this turn of events, we ascertained the current state vis-à-vis Japan’s investments and loans in fossil fuel-related companies, which are accelerating global warming. We also investigated the current state of investments and loans in nuclear power-related companies that underpin nuclear power stations – which have for a long time met vociferous opposition from the people of Japan.
As part of its Divestment campaign, 350.org Japan focused on banking groups, insurance companies and local governments, investigating their respective investment and financing in fossil fuel-related companies and nuclear power-related companies, and has announced the results.
Main Findings of Investigation:
- Having investigated investments by banking groups in fossil fuel-related companies, nuclear power-related companies and companies related to expanding domestic coal-fired thermal power stations – with regard to companies related to fossil fuels and companies related to nuclear power – it was ascertained that Mitsubishi UFJ has the highest amount of investment and loans, followed by Mizuho, Mitsui Sumitomo, and then Mitsui Sumitomo Trust. Furthermore, regarding companies related to expanding domestic coal-fired thermal power stations, Mizuho has the largest amount of investment and loans, followed by Mitsui Sumitomo, Mitsubishi UFJ, and Mitsui Sumitomo Trust (refer to table A-1 and A-2).
- Having investigated investments/loans by insurance companies in fossil fuel-related companies (Mitsubishi Corporation, Idemitsu Kosan Co., Ltd., Mitsui & Co., Ltd., Itochu Corporation, Marubeni, INPEX, JX Holdings) and in nuclear power-related companies (Toshiba, Mitsubishi Heavy Industries, Hitachi), and in companies related to expanding domestic coal-fired thermal power stations (Kansai Electric, J-POWER, Tokyo Electric, Chubu Electric, Kyushu Electric, Chugoku Electric, Kobe Steel, Tokyo Gas, Marubeni, Idemitsu Kosan Co., Ltd.), it was ascertained that for fossil fuel-related companies, Meiji Yasuda Life has the highest amount of investments/loans, followed by Nippon Life, followed by MS&AD. For investment in nuclear power-related companies and companies related to expanding domestic coal-fired thermal power stations, the highest amount invested for both was Nippon Life, followed by Meiji Yasuda Life, and Daiichi Life (refer to Tables B-1, B-2)
- Having investigated the state vis-à-vis number of shares held by local governments in electric companies, it was ascertained that the Tokyo Metropolitan Area, Toyama Prefecture, Kobe City, Yamaguchi Prefecture, Kochi Prefecture and Okinawa Prefecture all hold a high numbers of shares.
Table A-1: Breakdown of Investment Method of Banking Groups in Companies related to Fossil Fuels/Nuclear Power/Expanding Domestic coal-fired thermal power stations (Unit: 100 million JPY)
Investment Method
Mitsubishi UFJ
Mizuho
Mitsui Sumitomo
Mitsui Sumitomo Trust
Fossil Fuels
Shares Held
1,599
2,150
1,288
1,674
Loans
4,071
1,789
2,120
196
TOTAL
5,670
3,939
3,408
1,870
Nuclear Power
Shares Held
1,162
246
223
56
Loans
2,511
1,003
543
520
TOTAL
3,673
1,249
766
576
Domestic Coal
Shares Held
543
1,824
754
766
Loans
7,792
10,462
9,708
2,921
TOTAL
8,335
12,286
10,462
3,687
Total of above 3
16,875
16,842
14,563
5,612
Refer to marketable securities reports of each company and Toyo Kezai’s “Major Shareholder Handbook 2014”.
As Marubeni is included in both fossil fuels and domestic coal, the total for all three excludes overlaps.
Table A-2: Order of Investment/Loans by Banking Groups in Companies related to Fossil Fuels/Nuclear Power/ Expanding Domestic Coal-fired Thermal Power Stations (Unit: 100 million JPY)
Fossil Fuels
Nuclear Power
Domestic Coal
Total of above 3
1st: Mitsubishi UFJ
5,670
1st: Mitsubishi UFJ
3,673
1st: Mitsubishi UFJ
12,286
1st: Mitsubishi UFJ
16,875
2nd: Mizuho
3,939
2nd: Mizuho
1,249
2nd: Mitsui Sumitomo
10,462
2nd: Mizuho
16,842
3rd: Mitsui Sumitomo
3,408
3rd: Mitsui Sumitomo
766
3rd: Mitsubishi UFJ
8,335
3rd: Mitsui Sumitomo
14,563
4th: Mitsui Sumitomo Trust
1,870
4th: Mitsui Sumitomo Trust
576
4th: Mitsui Sumitomo Trust
3,687
4th: Mitsui Sumitomo Trust
5,612
Refer to marketable securities reports of each company and Toyo Kezai’s “Major Shareholder Handbook 2014”.
As Marubeni is included in both fossil fuels and domestic coal, the total for all three excludes overlaps.
Table B-1: Breakdown of Investment Method of Insurance Companies in Companies related to Fossil Fuels/Nuclear Power/ Expanding Domestic Coal-fired Thermal Power Stations (Unit: 100 million JPY)
Investment
Method
Nippon
Life
Daiichi
Life
Meiji Yasuda
Life
Sumitomo Life
Tokyo
Marine Nichido
Sonpo Japan
Nippon Koa
MS&AD
Fossil Fuels
Shares Held
1,344
468
1,532
169
1,949
555
2,502
Loans
3,700
800
4,794
Total
5,044
1,268
6,326
169
1,949
555
2,502
Nuclear Power
Shares Held
1,212
1,047
478
109
263
132
100
Loans
950
170
990
Total
2,162
1,217
1,468
109
263
132
100
Domestic Coal
Shares Held
3,021
936
1,177
106
207
338
120
Loans
5,479
955
1,651
396
30
Total
8,500
1,891
2,828
502
237
338
120
Total of Above 3
14,585
3,406
8,871
780
2,242
694
2,722
Refer to marketable securities reports of each company and Toyo Kezai’s “Major Shareholder Handbook 2014”. Blank columns denote that the amount borrowed is unclear and does no signify that no shares are held.
As Marubeni is included in both fossil fuels and domestic coal, the total for all three excludes overlaps.
Table B-2: Order of Investment/Loans by Insurance Companies in Companies Related to Fossil Fuels/Nuclear Power/ Expanding Domestic Coal-fired Thermal Power Stations (Unit: 100 million JPY)
Fossil Fuels
Nuclear Power
Domestic Coal
Total of Above 3
1st: Meiji Yasuda Life
6,326
1st: Nippon Life
2,162
1st: Nippon Life
8,500
1st: Nippon Life
14,585
2nd: Nippon Life
5,044
2nd: Meiji Yasuda Life
1,468
2nd: Meiji Yasuda Life
2,828
2nd: Meiji Yasuda Life
8,871
3rd: MS&AD
2,502
3rd: Daiichi Life
1,217
3rd: Daiichi Life
1,891
3rd: Daiichi Life
3,406
4th: Tokyo Marine Nichido
1,949
3rd: Daiichi Life
263
4th: Sumitomo Life
502
4th: MS&AD
2,722
5th: Daiichi Life
1,268
5th: Sonpo Japan Nippon Koa
132
5th: Sonpo Japan Nippon Koa
338
5th: Tokyo Marine Nichido
2,242
6th: Sonpo Japan Nippon Koa
555
6th: Sumitomo Life
109
6th: Tokyo Marine Nichido
237
6th: Sumitomo Life
780
7th: Sumitomo Life
169
7th: MS&AD
100
7th: MS&AD
120
7th: Sonpo Japan Nippon Koa
694
Refer to marketable securities reports of each company and Toyo Kezai’s “Major Shareholder Handbook 2014”.
As Marubeni is included in both fossil fuels and domestic coal, the total for all three excludes overlaps.
Regarding further details of results, please address enquiries to:
Shin Furuno, Divestment Campaign Manager, 350.org Japan
Email: [email protected] / Tel: 070-2793-3648
Media Contact:
Marie Tanao
Email:[email protected] / Tel: 090-2183-2113
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