Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Toyota to review climate stance as investors turn up the heat

Stock Markets Apr 19, 2021 07:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Auto Shanghai show in Shanghai 2/2

By Aaron Sheldrick

TOKYO (Reuters) - Japan's Toyota Motor (NYSE:TM) Corp signalled a shift in its climate change stance on Monday, saying it would review its lobbying and be more transparent on what steps it is taking as it faces increased activist and investor pressure.

The carmaker came under scrutiny after siding with the Trump administration in 2019 in a bid to bar the state of California from setting its own fuel efficiency rules.

Toyota "will review public policy engagement activities through our company and industry associations to confirm they are consistent with the long-term goals of the Paris Agreement," it said in a statement, adding that actions will be announced by the end of this year.

The automaker also said it will "strive to provide more information so that our stakeholders can understand our effort to achieve carbon neutrality."

A company spokeswoman, who confirmed that "public policy engagement activities" includes lobbying, was not able to respond immediately to questions about pressure from investors.

Four funds with about $235 billion in assets under management are pressuring Toyota before its annual shareholder meeting in June to draw a line under its lobbying against international efforts to prevent catastrophic global warming.

"This move must not be a PR exercise but instead signal a clear end to its role in negative climate lobbying which has given it a laggard status," Jens Munch Holst, chief executive officer of Danish pension fund AkademikerPension, told Reuters.

AkademikerPension has "escalated via intense direct engagement" with Toyota after a decade of communicating with the automaker through a third party, Troels Børrild, spokesman at the Danish fund, told Reuters.

'UNDERMINED CLIMATE ACTION'

AkademikerPension will consider preparing a shareholders resolution to submit at next year's annual general meeting if "Toyota fails to deliver on its commitment," Børrild said.

The fund would consider selling its Toyota holding if there is no change, but the spokesman said fund officials did not believe it would come to that.

"Right up until now, the company has repeatedly undermined climate action, from opposing the U.K. government's ban on internal combustion engines by 2030 to opposing car fuel economy standards in the U.S.," Munch Holst said.

The Toyota spokeswoman told Reuters that it would need more time to respond to Munch Holst's comments.

The other investors are Church of England Pensions Board, Sweden's AP7 and Norway's Storebrand.

Toyota was among major automakers that supported the Trump administration in its attempt to bar California from setting its own fuel-efficiency rules or zero-emission requirements.

They have since dropped that support in a "gesture of good faith an to find a constructive path forward" with the Biden administration.

With pressure growing on carmakers to slash emissions, Toyota is also scrambling to produce EVs that can compete globally with rivals' models.

Toyota this year settled a lengthy Justice Department civil probe into its delayed filing of emissions-related defect reports for $180 million.

Toyota to review climate stance as investors turn up the heat
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email