{"id":78220,"date":"2024-10-22T16:43:43","date_gmt":"2024-10-22T05:43:43","guid":{"rendered":"https:\/\/www.marketforces.org.au\/?p=78220"},"modified":"2024-10-24T16:19:03","modified_gmt":"2024-10-24T05:19:03","slug":"communities-csos-worldwide-send-open-letter-to-jpx-investors-on-jera-disregard-for-community","status":"publish","type":"post","link":"https:\/\/www.marketforces.org.au\/communities-csos-worldwide-send-open-letter-to-jpx-investors-on-jera-disregard-for-community\/","title":{"rendered":"Communities and CSOs worldwide send an open letter to JPX and investors on JERA’s disregard for community stakeholders"},"content":{"rendered":"\n

MEDIA RELEASE<\/strong><\/p>\n\n\n\n

(\u82f1\u6587\u306b\u7d9a\u304d\u3001\u65e5\u672c\u8a9e\u8868\u8a18\u304c\u3054\u3056\u3044\u307e\u3059)<\/p>\n\n\n\n

22 October 2024:<\/strong> Market Forces, communities, and civil society organisations worldwide have sent an open letter to the Japan Exchange Group (JPX) and to asset managers to raise concerns about thermal power producer JERA’s governance, outlining the company\u2019s disregard for engaging local community stakeholders affected by the company’s fossil fuel expansion.<\/p>\n\n\n\n

Megu Fukuzawa, Asia Energy Finance Campaigner at Market Forces said;
\u201cJERA\u2019s refusal to engage with community stakeholders including Indigenous peoples, reflects a broader trend of neglect by overlooking dialogue and accountability, which must be a serious concern for investors. Failure to engage with community stakeholders violates the principles of sustainable, responsible corporate governance expected by global investors. JERA\u2019s failure to engage with communities affected or will be affected by the company\u2019s fossil fuel developments creates possible reputational risks for the company\u201d<\/strong><\/p>\n\n\n\n

Full text of letters here (English<\/a> \/ Japanese<\/a>), and the summary of our letter is below;<\/p>\n\n\n\n

=======Summary of the letter=========<\/p>\n\n\n\n

Dear JPX and Investors,
As we consider the potential of a future JERA initial public offering<\/a> (IPO), it is crucial to evaluate the risks associated with this company\u2019s current operations and governance practices. While JERA has publicly stated<\/a> its commitment to “proactive communication” and engagement with stakeholders as part of its corporate social responsibility, its lack of engagement with community stakeholders suggests a troubling disconnect between the company\u2019s statements and actions. This inconsistency may present challenges for JPX and investors, including possible exposure to reputational risks.
A red flag for JPX and investors lies in JERA’s approach to governance and stakeholder relations. Japan\u2019s Corporate Governance Code<\/a>, which JERA must follow if it becomes a listed company on JPX, highlights the importance of effective stakeholder engagement for fostering long-term corporate value ensuring that \u201cthe rights and positions of stakeholders are respected.\u201d JERA appears to be disregarding this principle. Over the past year, JERA has rejected meeting requests from at least 9 civil society organisations and or community stakeholders. These include requests from the following civil society groups and communities trying to raise concerns around JERA-backed projects:<\/p>\n\n\n\n