Toyota [7203:JP] shareholders rejected an unprecedented resolution regarding the automaker’s climate lobbying practices and expressed support for the company’s board at their annual general meeting, as reported by Reuters on June 13. The resolution, which called for increased transparency on climate lobbying, was proposed by three European asset managers but was expected to be defeated due to strong management backing and the significant presence of Toyota group companies and suppliers among the shareholders. In addition to supporting the board, shareholders also voted in favor of all 10 board members, including Chairman Akio Toyoda. The shareholder meeting took place shortly after Toyota, the world’s largest automaker, unveiled an ambitious plan for electric vehicles (EVs), which included details on solid-state batteries and significant production changes. This move signaled Toyota’s intention to capture a larger market share in the EV industry.

Despite facing criticism from activists and green investors for its perceived slow adoption of EVs, Toyota maintains a multi-pathway approach toward achieving carbon neutrality. This approach includes petrol-electric hybrids, hydrogen fuel cells, and EVs. The company argues that its strategy is more effective in reducing carbon emissions and more practical considering the varying customer needs, EV infrastructure, and availability of clean energy across different countries.

Sources:

https://www.reuters.com/business/autos-transportation/toyota-annual-meeting-ambitious-pivot-may-overshadow-shareholder-challenge-2023-06-13/

https://global.toyota/pages/global_toyota/sustainability/esg/environmental/carbon_neutrality_en.pdf