Japan Inc feels the heat over Russia ties as rivals shun Moscow

Mitsui & Co and Mitsubishi Corp have stakes in the giant Sakhalin-2 LNG project Shell SHEL.L is now exiting. Itochu Corp 8001.T and Marubeni Corp 8002.T have invested in the Sakhalin-1 oil project that Exxon Mobil XOM.N is pulling out of.

TOKYO: Japanese firms are under deepening pressure over their ties to Russia and are scrambling to assess their operations, company and government insiders say, after Western rivals halted businesses and condemned Moscow for invading Ukraine.

While environmental, social and governance (ESG) investors have previously targeted Japan Inc for use fossil fuels, scrutiny over Russia could become intense. Executives say privately they are worried about reputational damage, a sign corporate Japan is - however reluctantly - becoming more responsive to pressure on social issues.