Climate Lobbying Overview: Toyota is actively engaged with a variety of climate policy streams globally in 2021-23 with mostly negative advocacy. Despite consistently stating support for the Paris Agreement, and limited support for some measures to decarbonize the transport sector, Toyota has mostly negative engagement globally on policy mandating the full electrification of the automotive sector, instead promoting an extended role for ICE-powered vehicles, including hybrids. Toyota has also opposed numerous policies mandating the long-term phase-out of internal combustion engine (ICE)-powered vehicles and the introduction of zero-emission vehicle targets in multiple regions in 2021-23.

Top-line Messaging on Climate Policy: Toyota’s top-line messaging on climate change is mostly positive. Toyota has consistently stated support for the Paris Agreement in 2021-22, including in its 2022 Climate Public Policies Report. At a press conference held in April 2021, Toyota’s president, Akio Toyoda, appeared to show broad support for Japan’s long-term climate neutrality targets, while suggesting that Japan needs an expansion/mix of technology options for GHG reduction. More negatively, at a September 2021 press conference, Toyota’s President emphasized competitive disadvantage concerns for Japan around climate regulation, appearing to support less ambitious action. Similarly, a May 2022 press conference statement by President Toyoda criticized Japanese climate regulations, stating they should not limit technology options. In a September 2021 UK consultation response, Toyota stated support for the UK's 2050 net-zero target, though with uncertainty as to whether it supports near-term action to achieve this goal. In an August 2022 press statement, Toyota stated that it “continues to share the vision” of GHG reduction and carbon neutrality goals with the California Air Resources Board (CARB) and the state of California.

Engagement with Climate-Related Regulations: Toyota has actively engaged with policymakers on various climate-related regulations globally. In the United States, in a September 2021 consultation response, Toyota stated support for the mid-range proposal for 2023-26 federal GHG emissions standards for vehicles, in between Trump and Obama-era standards, while opposing the proposed high-range standards. It also advocated for numerous flexibilities to weaken the stringency of the regulation. In February 2021, Toyota withdrew from US litigation it previously supported to remove California’s ability to set its own GHG emissions standards under the state’s Clean Air Act waiver. In August 2022, Bloomberg reported that Toyota had announced support for California’s authority to set its own GHG emissions standards under the Clean Air Act.

In Australia, an October 2022 Toyota consultation response appeared to support an Australian fuel efficiency (CO2) standard for light-duty vehicles with major exceptions. These include calling for "achievable" targets, supporting numerous compliance flexibilities including credits (e.g. super credits, off-cycle credits), banking, pooling, and trading, and stating that the FCAI "industry code provides a logical baseline that can be utilized to develop a mandated scheme", suggesting support for CO2 targets in line with the Federal Chamber of Automotive Industries (FCAI)'s low stringency voluntary standards. Moreover, in May 2023, a senior executive from Toyota Australia was reported by the Guardian arguing that Toyota would advocate for a fuel efficiency standard with a generous time-frame that cut pollution “without cutting vehicle choices”.

In a March 2021 Toyota consultation response to New Zealand’s climate action plan, Toyota appeared to oppose the proposed 105g CO2/km emissions standards for light-duty vehicles, advocating for a significantly less stringent 130g CO2/km target, while supporting a New Zealand Emissions Trading System for road transport at the expense of more stringent emissions regulations. Similarly, in a November 2021 consultation response, Toyota appeared to advocate to oppose proposed higher 2026 and 2027 CO2 targets for light-duty vehicles in New Zealand.

Positioning on Energy Transition: Toyota in 2021-23 appears to have consistently advocated for a long-term role for ICE-powered hybrid vehicles over battery electric vehicles globally, and strongly opposed ICE phase-out and ZEV mandate policies. According to a November 2022 JAMA Blog, President Akio Toyoda met Japan's Prime Minister Kishida at Toyota's factory in June 2022, where he appears to have advocated against the introduction of regulations, supported extending the role of hybrids, and persuaded Kishida to withold support for ZEV targets at the subsequent G7 summit. In Japan, a June 2022 Reuters article stated that Toyota President, Akio Toyoda, appears to have successfully pressured the Japanese government to promote hybrids over pure battery electric vehicles (BEVs) in Japan's annual economic policy roadmap. In March 2021 testimony to Japan's Ministry of Economy, Trade and Industry (METI), Toyota also stated opposition to introducing a ZEV mandate in Japan. While announcing a new 2030-35 BEV strategy in December 2021, Toyota maintained its position that different national energy situations require “a variety of carbon neutral-options”, and advocated for a continued role of ICE technology in global markets. In a December 2022 speech, Akio Toyoda said that “BEVs are just going to take longer to become mainstream than the media would like us to believe”. Similarly, speeches from Toyota's chief scientist, Gill Pratt, in January 2023, reported by Automotive News, and May 2023, reported by Bloomberg, advocated for a longer-term role for ICE-powered hybrids over BEVs, stressing concerns around lithium supplies and charging infrastructure. In May 2023, a Toyota Australia executive was reported by the Guardian to have stated that “it is too early” for the rapid adoption of BEVs in the region. According to a December 2021 Sentaku magazine report, Toyota has also disseminated books criticizing BEVs to Japanese media and the government, as well as organizing briefing sessions for the Japanese media to discourage reporters from writing positively about BEVs, according to a November 2021 Weekly Economist article.

Toyota has consistently opposed national policies to phase out internal combustion engine (ICE) vehicles globally. In Canada, a February 2023 Toyota press release appeared to oppose a federal zero-emission vehicle (ZEV) mandate, and a March 2023 Toyota consultation response opposed a Canadian ZEV mandate, further stating that generally "Toyota does not support the notion of ZEV mandates". In the UK, a Times report in April 2022 stated that Toyota had urged the UK's Transport Secretary to weaken its "green" policies mandating a rapid switch to BEVs, warning that it may cease its UK operations. A September 2021 UK Toyota consultation response, found via FOI request, further called on the UK government to weaken its 2035 ICE phase-out policy by including sales of mild, full and plug-in hybrids from 2030-35, alongside opposing a ZEV mandate. In Europe, a February 2022 Nikkei article reported that in July 2021, weeks after the EU announced a 2035 effective phase-out date for ICE vehicles, Toyota directly asked France's President Macron in a private meeting to prolong the sale of ICE-powered hybrid vehicles in the EU. In Japan, at an April 2021 press conference, Toyota President, Akio Toyoda, appeared unsupportive of Japanese phase-out dates for gasoline or diesel-powered vehicles. In the US, a Toyota US blog post from July 2021 appeared to oppose specific measures to electrify transportation, including the phase-out of ICE powered vehicles and ZEV mandates. A May 2022 Toyota US consultation response also appeared to oppose a federal ZEV mandate for heavy-duty vehicles. Similarly, in New Zealand (NZ), an op-ed from the Toyota NZ chief executive and a Toyota consultation response, both from March 2021, opposed a recommended 2035 ban on new petrol and diesel car sales. At a global level, in November 2021, Toyota did not sign a global pledge made at COP26 to phase out ICE-powered vehicles in leading markets by 2035 and globally by 2040. A spokesperson told Reuters that it did not commit to the pledge as in "many areas of the world ... an environment suitable for promoting full zero emission transport has not yet been established".

In the US, at the state level, a May 2022 consultation responses indicated that Toyota appeared to oppose California's proposed Advanced Clean Cars II regulation, which would require an increasing percentage of new light-duty electric vehicle sales each year until a 100% ZEV mandate in 2035, advocating for numerous flexibilities to weaken the rule’s stringency. At a September 2022 press conference, Toyota President, Akio Toyoda further stated that it would be "difficult" to achieve a 2035 ICE-phase out in California, and a US federal 50% target of zero-emission vehicles. At the federal level, in March 2021, Toyota provided evidence to the Senate Energy and Natural Resources Committee, emphasizing the difficulties of electrifying road transportation in the US and advocating for policymakers to widen their policy decarbonization focus beyond BEVs to include hybrid vehicles. an August 2021 Toyota press statement appeared supportive of a newly proposed voluntary US 40-50% electric vehicle sales target (including hybrids) by 2030. However, in August 2022, Forbes reported that a US Toyota executive appeared to suggest it was unlikely that automakers would meet the 40-50% target as the "rhetoric" around electric vehicles is way out ahead of consumer demand. Regarding US purchase incentives, in September 2021, Toyota argued in a letter sent to the US House Ways and Means Subcommittee that new EV incentives unfairly prioritized union-built vehicles, while appearing to support a general US EV tax credit. In June 2022, Toyota further signed a joint letter to US congressional leaders supporting a US electric vehicle tax credit, and the removal of an OEM cap for such a credit.

Regarding the energy mix in Japan, while comments from Toyota’s CEO, Akio Toyoda, at a March 2021 JAMA press conference appeared supportive of measures to promote renewables and decarbonize Japan’s energy sector, additional communications again from Akio Toyoda in September 2021 emphasized the costs of Japan's renewable energy transition. Similarly, in a December 2021 interview, Akio Toyoda stressed that promoting electric vehicles should depend on the energy situation in each global region, emphasizing the high emissions of Japan’s power sector, and suggesting BEVs in Japan would produce high carbon emissions. In contrast, Toyota's 2022 'Public Policy' disclosure, stated that "Toyota supports the Japanese government’s new 2030 energy mix plan, where renewable energy is to be the country's main power source in 2030", including a doubling of Japan's renewable energy in the next ten years.

Industry Association Governance: Toyota appears to have mixed transparency over its indirect influence through industry associations. In December 2022, Toyota published its second review of its industry association memberships and their alignment on climate change. The company did not identify any cases of material misalignment. Toyota retains high-level positions in several regressive trade associations. These include Japan Automobile Manufacturers Association (JAMA), where Toyota President Akio Toyoda is chairman, Keidanren, where Toyota Vice Chairman Shigeru Hayakawa is Vice Chair of the Board of Councilors, the European Automobile Manufacturers Association (ACEA), where Toyota Europe Chairman Didier Leroy is a board member the Federal Chamber of Automotive Industries (FCAI) in Australia, where a Toyota executive is currently chair. Toyota also retains memberships to several other associations, including the Alliance for Automotive Innovation and National Association of Manufacturers (NAM) in the US, Society of Motor Manufacturers and Traders (SMMT) in the UK, and the Society of Indian Automobile Manufacturers (SIAM) in India.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q2 2023.