TOKYO – Investor activist group Market Forces called on eight major banks to reconsider providing loans to Jera Company, over concerns that Japan’s top power producer would use the money to expand its fossil fuel business. 

The Australia-based advocacy group sent a letter to lenders including Deutsche Bank and Standard Chartered urging them to engage with Jera to set a clear plan to reach net-zero emissions by 2050, said Ms Bernadette Maheandiran, Director of Asia Energy Finance at the organisation.

“Many of these banks have net-zero banking commitments, so we’re seeking for them to engage with Jera on its transition plan,” said Ms Maheandiran. “Because it’s not quite a credible or clear plan from our reading of it.” 

Climate activists are increasingly seeking to sway financial institutions, which often face scrutiny from customers and shareholders over their decarbonisation efforts, to pressure major polluters to act more quickly. Japan’s power producers are among the nation’s biggest emitters as they burn natural gas and coal to produce electricity.

Jera, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, has a goal to achieve carbon neutrality by 2050 and is looking at technologies including carbon capture and storage, green ammonia fuel and renewable energy as part of its emissions reduction strategy. Its Bloomberg environmental score is below the median of its peers.

A Jera spokesperson said the company didn’t get a letter from Market Forces and isn’t in a position to comment.

The other targeted lenders were Mitsubishi UFJ Financial Group, DBS Group Holdings, ANZ Group Holdings, Bank of China, ING Group and Natixis. ANZ and ING confirmed that they received the letter, but didn’t make a further statement. The other lenders targeted declined to comment. BLOOMBERG