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It was impossible to ignore the climate headlines in 2023. We saw record global temperatures, billion-dollar weather and climate disasters on the rise, and countries at COP 28 committed to moving away from fossil fuels to reduce planet-warming emissions.
And, for the first time ever, Toyota shareholders proposed a resolution demanding a comprehensive, annual review of its climate-related lobbying at its 2023 annual general meeting.
Since the climate resolution was rejected last year, Toyota seems to have disregarded the need for any climate action at all. Toyota has lagged behind most automakers on producing battery electric vehicles, and has consistently lobbied against clean car policies and climate policies around the world.
This year, AkademikerPension submitted a shareholder proposal urging Toyota to ensure its reporting on climate-related lobbying activities is aligned with protecting the company and shareholder interests in the long-term.
The research firm InfluenceMap recently published an analysis demonstrating a clear trend between automakers that are expected to have the lowest percentage of electric vehicles by 2030 and are lobbying policymakers to delay and weaken climate policies. According to the report, Toyota scored a D based on its low EV production forecast and fierce opposition to climate rules in multiple countries, including Australia, Canada, US, and UK.
AkademikerPension’s resolution must serve as a wakeup call. Toyota’s harmful lobbying is at odds with the investors who are committed to responsible stewardship on climate change. The Climate Action 100+ initiative is led by the investor community that is committed to improving sustainability practices to mitigate financial risk.
Automakers hold the keys to reducing vehicle emissions. If Toyota stops greenwashing and firmly embraces battery electric vehicles, it could be an environmental leader once again. But instead we continue to see the brand perpetuating a legacy of combustion cars and trucks in conflict with climate policies.
Toyota’s actions are putting our global climate targets at risk and threaten the urgent transition to electric vehicles. Combustion-powered vehicles will continue our precarious demand for oil, fueling the climate crisis.
This is a pivotal moment for investors and the world to put Toyota on notice. Toyota has stalled for far too long.