Toyota Will Face First Climate Shareholder Resolution

Today, three shareholders are announcing that they have filed a climate lobbying-related resolution for Toyota Motor Corporation’s Annual General Meeting (June date TBC). The filing comes after a long period of active engagement led by Danish pension fund, AkademikerPension (US$20 bn in AUM), along with Norwegian financial services company, Storebrand Asset Management (US$120 bn in AUM), and Dutch pension investment company, APG Asset Management (US$600 bn AUM).

The independent think tank InfluenceMap, which is producing data-driven analysis on how business and finance are impacting the climate crisis, is ranking Toyota as one of the most negative companies on climate lobbying. Influencemap, provides analyses for the investors in investor led Climate Action 100+ with US$68 trillion in total assets under management.

Kamil Zabielski, Head of Sustainable Investment at Storebrand Asset Management said:
"The Paris agreement needs strong regulation at the national level. Companies and trade associations should not be using their political influence to block climate policies and slow the pace of urgent climate action. We believe that Toyota, as a leading automotive company in Japan, should be consistent in their policy engagement in all geographic regions and ensure any engagement conducted on their behalf or with their support is aligned with our interest in a safe climate, in turn protecting the long-term value in our portfolios across all sectors and asset classes."

Anders Schelde, Chief Investment Officer (CIO) at AkademikerPension said:
“We are filing a shareholder proposal for Toyota’s upcoming AGM. After over two years of intense engagement with Toyota, it has still not been possible to reach common ground with the company. Independent analysts, Influencemap, find that Toyota and its business associations such as Keidanren and JAMA still have a long way to go to be aligned with the goals of the Paris Agreement when it comes to their lobbying. From an investment perspective, we’re concerned that Toyota is missing out on profits from soaring EV sales, jeopardizing its valuable brand, and cementing its global laggard status. We welcomed the dialogue and annual disclosure but we need concrete policy changes and a better annual review drawing on independent data to calm international investors.”

Herman Slooijer, CIO at APG Asset Management said:
"Toyota Motor Corp is Japan Inc. Since Toyota is the world’s largest car maker, accelerating the company’s EV transition is not only crucial for improving its business competitiveness, but also for giving a push to the decarbonization of the entire industry. Toyota plays a pivotal role in the Japanese automotive related industry, which leads the country’s manufacturing and economy. We therefore believe that Toyota leading engagement with industry associations, regulators, and its supply chains is critical for decarbonizing the Japanese economy as well as for sustainable economic growth and job creation in Japan. We encourage Toyota to enhance and increase transparency of its sustainability disclosures based on our suggestions – especially considering recent emission misrepresentation issues at some of its affiliates. This is important to restore investors’ confidence in Toyota’s carbon reduction commitment and strategy."