We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
Climate Lobbying Overview: The Japan Chemical Industry Association (JCIA) seems to have some engagement with climate and energy policy in Japan. It appears to be supporting Japan’s Carbon Neutrality by 2050 Goal, while emphasizing on the need for solutions and pathways. It has also been actively engaging positively on various climate-related regulations including the tax system, GHG reduction and emissions trading. However, it is showing financial concern on energy transition and supporting continuous use of energy with high GHG emissions.
Top-line Messaging on Climate Policy: JCIA appears to have a mixed position on top-line messaging on climate policy. JCIA has supported the 2050 carbon neutrality goal but appear to emphasize the need for climate solutions and pathways that heavily rely on technology to reduce emissions from GHG-intense energy sources in the long-term, as stated in their position paper published in May 2021. In March 2021, according to the news article published by Nikkan Chemical, the former chairman Morikawa showed support for government intervention to make sure carbon is priced into the economy in order to achieve the carbon neutrality.
Engagement with Climate-Related Regulations: JCIA appears to be actively engaging with climate-related regulations in Japan. JCIA appear to support some forms of government regulation to provide equal footing for countries, however, have suggested the need to review the climate change mitigation tax system as stated in its 2021 Annual Report published in July 2021. In March 2021, at a Ministry of Energy, Trade, and Industry (METI) committee meeting regarding economic measures for achieving carbon neutrality, JCIA suggested that any discussion on carbon tax implementation was premature. In September 2021, JCIA appear to be supporting GHG emission reductions in their own activities, although it is unclear if they support GHG emission standards. JCIA also appears to support emissions trading in order to realize carbon neutrality in the entire value chain.
Positioning on Energy Transition: JCIA appears to have negative position on energy transition in Japan. During the series of METI committee meeting held in July 2020, JCIA advocated for continued use of fossil fuel power supply within its sector. During the committee meeting held in August 2020, JCIA suggested that the transition of energy would be unaffordable. In March 2021, during the METI committee, JCIA appear to support decarbonization of energy sources including clean hydrogen. During the committee held in January 2022, JCIA supported the expanded use of bioenergy, and the continuous use of natural gas, as it is comparatively low carbon, without clarifying on conditions related to CCS.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2022.