Toyota Motor president Akio Toyoda has come under fire from some of the company’s largest shareholders for questioning Japan’s policy to ban the sale of new internal combustion engine cars in its quest for carbon neutrality.
Toyoda, in his capacity as chairman of the Japanese Automobile Manufacturers Association, was recently critical of the country’s decision to ban the sale of conventional vehicles by 2035, saying “what Japan needs to do now is to expand its options for technology. I think regulations and legislations should follow later”.
He added “a policy that bans gasoline or diesel powered vehicles from the very beginning would limit such options and could also cause Japan’s automotive industry to lose its strengths”.
According to a Reuters report, five institutional investors with a combined US$500bn in assets under management said Japan’s leading carmaker risks falling behind its global competitors with more comprehensive electric vehicle programmes while also shielding other vehicle manufacturers that may be seeking to avoid meeting climate goals.
Toyota has already stated it aim of becoming carbon neutral by 2050 and that it would shift its lobbying activity to reflect this. The company also said recently it would become more transparent on what measures it would take to achieve its carbon emissions targets, in response to increased activist and investor pressure.
But Toyoda’s latest remarks have concerned investors that he may not be on board with the company’s recently stated policies.
Danish fund Akademiker Pension’s CEO, Jens Munch Holst, was quoted as saying “we’re genuinely concerned that Toyoda does not seem to realise what is at stake here”. He confirmed his company would consider a shareholder resolution and even selling its holding in Toyota if there was no change to Toyoda’s stance.
A Toyota spokeswoman told Reuters the company would address climate issues when it announces earnings on 12 May.