TOKYO (Reuters) -Japan’s JERA said on Thursday it had made sufficient disclosures when it issued a $300 million bond in Singapore last year, after a climate activist group alleged the power firm had not properly disclosed systemic risks over its investments in LNG.
Australia’s Market Forces lodged a complaint with Singapore Exchange (SGX) in February in which it criticised JERA’s description of the impact of the war in Ukraine on the liquefied natural gas (LNG) business.
It also said that the bond prospectus filed by JERA, Japan’s biggest power generator and one of the world’s biggest LNG buyers, did not mention litigation in Australia or cite a business plan to manage a potentially rapid shift to renewable energy from fossil fuels.
A JERA spokesperson said in an email to Reuters that the company believes it made sufficient disclosures with the bond issuance, but did not elaborate further.
“As with any whistleblowing complaint, we will review and take the necessary action,” an SGX Group spokesperson said in an emailed response to Reuters on Thursday. “If any public action is taken, an announcement will be made.”
JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, has the capacity to provide about a third of Japan’s thermal power generation output.
The complaint came nearly a year after Market Forces and four other groups jointly urged Tokyo Electric and Chubu Electric to improve climate-related risk disclosures at their annual shareholders meetings.
Those proposals were not approved.
(Reporting by Yuka Obayashi; Additional reporting by Makiko Yamazaki in Tokyo and Yantoultra Ngui in Singapore; Editing by Edwina Gibbs and Alexander Smith)
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