(Bloomberg) -- Proxy adviser Institutional Shareholder Services is backing investors calling on Electric Power Development Co. to set clearer targets to curb emissions and to strengthen links between executive pay and climate action.

ISS recommends holders vote in favor of two climate-focused resolutions proposed by investors including Amundi SA and HSBC Asset Management at an annual meeting later this month, according to a note to clients.

“It is in investors’ interest to better understand how the company intends to remain viable in the long term with the help of critical climate information,” ISS said in its report dated Wednesday. 

The shareholder resolutions — put forward with the Australasian Centre for Corporate Responsibility — call on the firm, known as J-Power, to set short and medium-term emission reduction goals, and seek improvements to the process of linking remuneration policies with progress on climate targets. 

Read more: HSBC Among Climate-Focused Investors Targeting J-Power Executive

J-Power is aware of the ISS recommendations, remains opposed to the shareholder proposals, and will continue efforts to help investors understand its position ahead of the annual meeting, the company said in a statement. 

Similar climate-related proposals put forward last year calling for stricter climate targets won about 26% support.

Amundi, HSBC and hedge fund Man Group Plc plan to vote against the election of Hitoshi Kanno, who was in charge of the company’s decarbonization strategy and in March picked to lead J-Power. ISS advised investors to back Kanno’s appointment.

--With assistance from Tsuyoshi Inajima.

©2023 Bloomberg L.P.