Chubu Electric Power

While Chubu states that it has no fossil fuels-based generation assets, less than 16% of the electricity it sells to its customers is generated from renewable sources. Chubu has outlined its intention to allocate approximately USD 500 million annually towards decarbonisation efforts both in Japan and globally from 2021 to 2030. This commitment represents approximately 30% of its total capital investment in 2022, falling significantly short of the sectoral expectations of 95% for decarbonisation investments required by electric utilities from advanced economies. Given that the company has no intentions to phase out the coal plants operated by JERA and continues to supply coal-based electricity, projections show that Chubu will significantly exceed its 1.5°C carbon budget for the period 2022-2037. The company needs to reduce its emissions intensity by about 9% per year to align with its 1.5°C pathway in 2027.

Chubu Electric Power’s transition plan sets out the company’s intention to expedite restarting the Hamaoka Nuclear Power Station, potentially adding approximately 4 gigawatts (GW) of low-carbon capacity to its energy generation portfolio. Further, the company envisions expanding its renewable energy generation capacity by 3.2 GW by 2030. However, it is important to note that this increase constitutes only a small fraction of the electricity supplied by the company. Additionally, Chubu aims to reduce emissions by reconsidering its procurement of inefficient coal-fired thermal power sources. These combined efforts are expected to result in a reduction of approximately 50% in emissions. Regardless, considering its limited investments in decarbonisation, there is significant uncertainty surrounding how the company plans to achieve its net-zero emissions goal.

Chubu needs to develop a supplier engagement strategy and use all its available levers to influence its suppliers to reduce emissions. The company’s Supplier Code of Conduct expects suppliers to reduce energy consumption and emissions from chemical substances and conserve biodiversity. However, suppliers are not required to publicly report their greenhouse gas (GHG) emissions or any other low-carbon requirements. The company does not include emissions reduction criteria in the selection of new suppliers or in the contract renewal of existing suppliers.

Chubu Electric Power aims to become net zero by 2050 across all its businesses. However, the company plans to use an unquantified amount of offsets to achieve this target. By 2030, the company aims to reduce its scope 1 and scope 3 category 11 (use of sold electricity) emissions by 50% compared to 2013 levels.

Chubu Electric Power plans to add 3.2 GW of renewables capacity by 2030. The company is also working towards restarting the Hamaoka Nuclear Power Station as soon as possible, which will add about 4 GW of low-carbon capacity to its energy generation portfolio. However, its subsidiary JERA has no plans to end the use of coal.

Currently, less than 16% of the electricity sold by Chubu Electric Power is produced from renewable sources. The majority of the electricity sold by Chubu is generated by its subsidiary JERA, which uses coal and fossil gas for electricity generation. The company plans to undertake demonstration testing for ammonia co-firing at a 20% rate with coal power at one of the power stations, though ammonia production relies heavily on fossil fuels.

Chubu reduced the emissions intensity of its sold electricity between 2016 and 2021, however, the rate of reduction is not aligned with the company’s 1.5°C pathway. . To align with its 1.5°C pathway in 2027, the company must reduce the emissions intensity of its sold power by approximately 9% per year.

Chubu Electric Power does not have a credible plan to achieve its low-carbon goals. The company’s transition plan outlines major steps as to how the company is planning to mitigate between 35% and 50% of its emissions by 2050. But the company is not seeking to phase out coal power from its retail energy mix. On the contrary, its subsidiary JERA is growing its fossil fuels-based generation portfolio. In May 2023, Cirebon, JERA’s coal power plant in Indonesia, began commercial operations expected to continue for 25 years.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company discloses the actions it takes to embed equality of opportunity for women and vulnerable groups to jobs. In particular, it provides job assignments and rotations to expand the career options for women and it creates employment opportunities for mentally and intellectually challenged people by engaging in new business ideas. However, no public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. No public commitment by the company was found stating its intention to re-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers.

The company commits to respecting the health and safety of its workers. Additionally, the company discloses some information about the diversity of its workers. However, the company can strengthen its disclosure on these subjects as well as on its living wage and working hours practices.

The company discloses its global tax strategy. However, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. The company can strengthen its disclosure on these topics as well as on responsible lobbying and political engagement, as well as protecting personal data.