Corporate Climate Policy Engagement inJapan
World Benchmarking Alliance – Codo Webinar: December 13, 2022
Monica Nagashima, Japan Country Manager (based in Tokyo)
monica.nagashima@influencemap.org

About InfluenceMap▪ Independent think tank founded in 2015
▪ Based in London with offices in Tokyo, NYC, and Seoul▪ Key Areas: (1) LobbyMap (Corporate Climate Policy Engagement);(2) FinanceMap; (3) Japan Energy Transition Initiative (JETI)▪ Database covers 400 companies, 200 industry associations

Data provider to investors with $68 trillion in AUM

Methodology Summarized■ Definition of “policy engagement” is based on 2014 UN Guide for
Responsible Corporate Engagement in Climate Policy■ “Climate Policy” is defined as past, currently evolving and potential
future policy measures motivated by the UNFCCC process■ Seven publicly accessible data sources are scrutinized for evidence ofclimate policy engagement, with recent evidence heavily weighted■ Each evidence item is individually scored against Paris
Agreement-aligned Benchmarks. Governmental policy benchmarks(e.g. EU ETS, US Clean Power Plan) and Science Based Policy
benchmarks from global mandated bodies (IPCC statements on energy
mix, EVs etc.)

InfluenceMap’s Key Metrics▪ Performance Band (A+ to F): A full measure of a company’s
climate policy engagement (combination of Org. and Rel. Score)▪ Organization Score (0 to 100): A measure of how supportive or
obstructive a company is towards Paris-aligned climate policy▪ Engagement Intensity (0 to 100): A measure of the level of policy
engagement, whether positive or negative.
▪ Relationship Score (0 to 100): A measure of how supportive or
obstructive a company’s industry associations are towards
Paris-aligned climate policy, aggregated.

Opensource Database and Rankings
Performance
Band

Organization

Engagement
Intensity

SectorRegion

Lobbying
Review?

C+

Daikin Industries

23

Industrials

Asia

No Review

C

Panasonic

15

Information
Technology

Asia

No ReviewD+

Honda Motor

31

Automobiles

Asia

No Review

D+

Hitachi

14

Information
Technology

Asia

No Review

D+

Nissan31

Automobiles

Asia

No Review

D

Toray Industries Inc.

11

Chemicals

Asia

No ReviewD

ENEOS Holdings(formerly JX Holdings
Inc)

27

EnergyAsia

No Review

D

Toyota Motor

34

Automobiles

Asia

Yes

D-Nippon Steel Corporation

25

Metals & Mining

Asia

No ReviewE+

Suzuki20

AutomobilesAsiaNo Review

CA100+ Investor Hub: Resources and Updates https://ca100.influencemap.org/
Hyperlinks above are linked to individual LobbyMap corporate profiles

2022 Analysis on Corporate Japan
Report: Japanese Industry Groups and Climate Policy, Nov 2022
Platform: https://japan.influencemap.org/▪

Assessed 50 industry associations and 20companies▪

Policy engagement in Japan mostly done
through industry associations, rather thancompanies▪

Heavy Industry groups (steel, autos, electric
power, gas/oil, chemicals and coal) are moststrategic and negative▪

70% of corporate Japan by GDP/employmentis positive but unengaged

Corporate opposition to climate policy in Japan isinconsistent with their support for carbon neutrality

Link to Japan Policy Tracker

Review of Corporate Disclosure on Industry
▪

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▪

▪

AssociationsDisclosure on industry associations is a key part of Climate Action 100+
(CA100+) - Investor expectations outline need for companies to establish robust
governance processes to ensure alignment on climate policy engagement
Starting with BHP in 2017, over 30% CA100+ companies have published areview of their industry association alignment – Toyota is the only Asiancompany to date
InfluenceMap has developed a methodology to assess and rank the quality ofthese review, including guidance on best practice. Link to the ranking.
Companies with memberships to misaligned industry associations and poor
disclosure risk facing shareholder resolutions

Conclusions▪ Investor driven: Direct and Indirect corporate engagement withclimate policy (lobbying) is a major concern for investors▪ Fair representation in Japan: To make corporate policy engagementin Japan on climate policy more representative of the broader
economy, reform will likely be needed in how industry associations
are represented in the policy making process and within Keidanren▪ Transparency and 1.5C alignment: Companies are encouraged topublish a detailed annual review of the company’s direct & indirect
lobbying activities against the 1.5C goal of the Paris Agreement