Devendra Kumar
Toyot’a annual general meeting saw executives fielding challenges and reaping praise from investors on Wednesday, with shareholders ultimately rejecting demands for the company to do better on fighting climate change. AkademikerPension, a 20 billion US dollar Danish investment fund, initiated the proposal, accusing Toyota of lobbying to weaken efforts by governments to phase out the internal combustion engine. The fund claimed Toyota is missing out on profits from soaring EV sales, jeopardizing its brand and cementing its global laggard status. Toyota officials defended their green record, noting they are aiming for carbon neutrality by 2050. They stressed that instead of just focusing on battery electric vehicles, the company is pursuing multiple energy options, including hybrids, plug-ins, and hydrogen-powered vehicles.
Akio Toyoda, the company’s chairman and grandson of the founder, faced criticism for Toyota’s lagging progress on battery electric vehicles. However, executives argued that the company is working hard to catch up and has acknowledged falling behind in the market. The company’s president, Koji Sato, has vowed to “move people’s hearts” based on a team-oriented style of management. Toyota has announced initiatives such as developing an all-solid-state battery for EVs by as early as 2027.
Major US pension schemes, including the New York City Comptroller’s Office and the California Public Employees’ Retirement System, backed the climate change proposal. Greenpeace activists also joined the meeting, demanding Toyota stop fueling the climate crisis and quit fossil fuel cars by 2030. Most shareholders who spoke praised Toyota’s efforts, with Mr. Toyoda’s remarks receiving enthusiastic applause. Despite the criticism, the company’s president remained optimistic, stating that diversity of technology is important and that the company is working towards its goals.
The meeting highlighted the growing pressure on Toyota to transition to zero-emission vehicles, with some shareholders calling for the company to take bolder action. The Sierra Club, a US environmental group, urged Toyota to shift course and focus on electric vehicles. As the company faces increasing scrutiny, executives must continue to balance the demands of investors with the need to prioritize sustainability and environmental responsibility.