Chugoku Electric Power Co Inc/The
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exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
The Chugoku Electric Power Company operates a significant fleet of thermal power generation facilities, which are primarily coal-fired. As of March 31, 2025, the company reported ¥329.6 billion ($2.1 billion) in thermal power production assets on its balance sheet. While the company also operates hydroelectric and nuclear facilities, its thermal power segment represents a substantial, ongoing commitment to fossil fuel-based generation.
The company's involvement in international power sector development, such as its consultancy role in a 2014 transmission project in Cambodia funded by the Japan International Cooperation Agency, demonstrates its operational footprint in regions where coal-fired power generation is a dominant part of the energy mix. Chugoku Electric Power has not announced a plan to retire its coal-fired assets or transition its thermal generation to renewable sources, indicating a continued reliance on coal as a primary fuel.
Chugoku Electric Power Co., Inc. operates the Shimane Nuclear Power Plant, which is located in an active seismic zone on the coast of the Sea of Japan. The plant’s location and operational history present significant environmental risks. In 2011, following the Fukushima Daiichi nuclear disaster, the Nuclear and Industrial Safety Agency of Japan issued a directive requiring Chugoku Electric to implement urgent safety measures at the Shimane plant, specifically citing the risk of tsunami-induced flooding. The company’s continued operation of this facility, despite documented seismic and tsunami hazards, constitutes a persistent risk of catastrophic environmental contamination through potential radiation release into the marine and terrestrial ecosystems.
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