Although Toyota was instrumental in making hybrid vehicles mainstream, its support of the Trump administration in 2019 put it uncomfortably in line with climate denialists. The company has now said that it will review its position.
In a statement, Toyota said that it would “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 also said it would provide more information so that “stakeholders can understand our effort to achieve carbon neutrality.” The company confirmed to Reuters that it reconsider its government lobbying activities.
The decision follows pressure from four major Toyota investors. Together, the funds own about $235 billion in assets and are pushing the company to recommit to efforts to reduce carbon emissions.
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“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, CEO of Danish pension fund AkademikerPension, told Reuters.
The fund has said it will consider preparing a shareholder resolution to submit at Toyota’s annual general meeting next year if the company fails to deliver on its green commitments.
“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.
Toyota recently previewed a brand new electric SUV, the bZ4X. Co-developed with Subaru, the EV is roughly the size of a Rav4 and will ride on the e-TNGA platform. Long term, it has promised to offer 15 EVs, with sales of the first bZ vehicle set to start in mid-2022.