Climate Shareholder Proposals lodged with Mitsubishi Corporation

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

LNG expansion plans undermine climate commitments


Mitsubishi is expanding its LNG business by building gas fields, LNG terminals and LNG to power projects, contrary to the International Energy Agency (IEA)’s ‘Net Zero by 2050’ scenario (NZ2050), which makes clear that achieving net-zero emissions by 2050 means no new fossil fuel supply and an extremely limited and narrowing role for fossil fuels in electricity generation.

LNG Canada, a polluting gas terminal development that Mitsubishi has invested in despite climate concerns and opposition from First Nations peoples whose traditional lands this project would impact.


Mitsubishi has no policy to rule out or in any way restrict new exploration or expansion of oil and gas fields.
NZE2050 conclusions compared with Mitsubishi policies and practice

NZE2050 conclusions

Mitsubishi policies

Mitsubishi practice

“Beyond projects already committed as of 2021, there are no new oil and gas fields approved for development in our pathway”

No policy to rule out or in any way restrict development of new oil and gas fields

Along with project partners, Mitsubishi plans to develop the new Udabari gas field and raise output at the Vorwata gas field to expand the Tangguh LNG project in Indonesia

“Also not needed are many of the liquefied natural gas (LNG) liquefaction facilities currently under construction or at the planning stage”

No policy to rule out or in any way restrict development of new LNG projects

Plans to increase LNG liquefaction capacity (on an equity share basis) by roughly 20% from 12mtpa currently to 14.6mtpa by the mid 2020s

Plans to build an LNG terminal in Port Qasim, Pakistan. Local NGOs have raised concerns that the project will disrupt fishing communities and harm vital mangrove forests

Recently received a loan to develop LNG Canada, a major polluting LNG terminal, objected to by the First Nations people whose traditional lands this project would impact

Absolute emissions from oil and gas fall by 23% from 2020-2030 (oil 27%, gas 17%)

No Scope 3 emissions target, therefore nothing to restrict emissions from the end use of its oil and gas products

Currently bidding on or sponsoring two import terminals and three proposed LNG to power projects in Bangladesh and Vietnam. With an expected life of 25 years, these projects will be emitting carbon and processing carbon-intensive LNG to 2050 and beyond


Under a net zero by 2050 scenario, lower-than-anticipated LNG demand would hurt the profitability of Mitsubishi’s LNG investments. Investors should also be concerned that Mitsubishi’s business strategy to expand LNG could lead to stranded assets. According to a new report published by Global Energy Monitor in October 2021, much of the new gas infrastructure plans in Asia could become stranded through the global shift to clean energy.

Mitsubishi has no disclosed pathway to meet climate commitments

Investors have set clear expectations for companies to disclose the metrics and targets required to evaluate the credibility of companies’ net zero by 2050 commitments and their associated transition plans. Although Mitsubishi has committed to reach net zero emissions by 2050, it lacks disclosure of key elements required to show it has a viable pathway to meet this goal.

  • Mitsubishi has not set any short-term emission reduction targets, and its mid-term target is entirely inadequate to ensure alignment with a net zero by 2050 pathway and manage transitional climate risk, as it excludes use of sold product emissions in the company’s scope 3 emissions.
  • As a company heavily involved in the sale of carbon intensive products, Scope 3 emissions represent significant transition risk to Mitsubishi. However, the company currently doesn’t have targets related to those emissions.
  • Mitsubishi’s March 2022 analysis against the IEA’s NZE2050 scenario lacks any disclosure of quantitative sensitivities for key financial assumptions or key variables related to transition risk. This lack of disclosure makes it impossible for investors to grasp the true extent of the company’s exposure to transition risk and compare it with other companies.

Without effective and comprehensive short and mid-term emission targets, and a capital allocation framework aligned with the company’s own net zero by 2050 commitment, Mitsubishi risks wasting shareholder capital on projects and activities that are incompatible with the energy transition required to meet this goal.

The shareholder proposals seek that the Company properly manage climate-related financial risk and maintain long-term corporate value through:

  1. disclosure of short and mid-term greenhouse gas emission reduction targets aligned with the goals of the Paris Agreement
  2. disclosure of how the company evaluates the consistency of each new material capital expenditure with its net zero greenhouse gas emissions by 2050 commitment

Webinar: Understanding climate-related shareholder proposals in Japan (May 31, 2022)

A webinar with experts related to this shareholder proposal can be found here:


Informational purposes only – This communication is provided solely for informational purposes only and is not, and should not be construed as, investment advice or investment recommendations for the purposes of the Financial Instrument Exchange Act of Japan.

No joint-exercise of voting rights – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, an offer, an acceptance or a consent, to enter into an agreement for the joint exercise of voting rights or any other shareholder’ rights for the purposes of the Financial Instrument Exchange Act and Foreign Exchange and Foreign Trade Act of Japan. If needs be, it is hereby emphasised that each shareholder exercises its shareholder’s rights independently based upon its own decision and shall not be held liable for its exercise of its shareholder’s rights in any event or in any result, as a breach of any discussion between the shareholders.

No proxy solicitation – Nothing in this written communication, nor in any related oral discussion, is intended to be, nor should it be construed as, a “solicitation for proxies” for the purposes of the Financial Instrument Exchange Act of Japan. The shareholder is not soliciting or seeking any authorization by any other shareholders to exercise their voting rights or any other shareholders’ rights on their behalf or as their agent at the annual shareholders’ meeting.