MHI: The wrong kind of transition

Ammonia co-firing is a notable component in Japan's transition plans, and is mentioned clearly as a UOP in Mitsubishi Heavy Industries new transition bond deal. We question this use, especially when the Scope 3 upstream emissions go unaccounted for. And we note some translation errors: "coal-fired power" does not equal "steam power" according to our Japanese-English ESG translation booklet.

(6 Sep 2022)

With some recent information on association with the Carmichael coal mine project, we follow up our earlier note on the ESG rating of a 99.7% coal based utility, We note that the ESG rating has increased since last time, from a 94th percentile to a top 97th percentile. And we disagree.

Sembcorp's sale of thermal coal power in India shifts operational to financial exposure, and should not lead to a deconsolidation of carbon exposure. This has important implications for investors in SLBs, as well as shareholders looking to vote for/against the transaction at the 8 Nov EGM.