This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Toyota’s greenhouse gas emissions continue to rise despite public climate commitments. The company reported 592.89 million metric tons of CO₂ equivalent in 2023, a volume that exceeds the annual emissions of Germany. While Toyota has set a net-zero target for its value chain by 2041, its reported emissions intensity—8.33 tCO₂e per million USD revenue in 2024—is not meaningfully lower than its peer group median of 10.93, indicating it is not decarbonizing faster than the automotive sector. The company’s primary climate strategy relies heavily on hydrogen and hybrid technologies, rather than a rapid transition to zero-tailpipe-emission vehicles, which has resulted in an ongoing increase in its overall carbon footprint.
Toyota Motor Corporation is ranked among the world's most obstructive companies on climate policy, according to InfluenceMap's Corporate Climate Policy Footprint report. The think tank has consistently assessed Toyota as taking "mostly negative positions on the energy transition" and placed it third on a global list of "negatively influential" organizations for its lobbying against government climate policies. This opposition has focused on advocating to weaken greenhouse gas emissions standards in key markets like the United States and opposing phase-out deadlines for fossil fuel vehicles.
The company's public climate commitments are assessed as misleading. While Toyota promotes its "Beyond Zero" campaign and "Toyota Environmental Challenge 2050," its strategic advocacy and product roadmap contradict these goals. The company has been cited for greenwashing by environmental groups for overstating the environmental performance of its vehicles and promoting a multi-pathway strategy that relies heavily on hybrids, which still run on fossil fuels, over a full transition to battery electric vehicles. This approach, coupled with its lobbying activity, positions Toyota as a global roadblock to electric vehicle adoption and stronger emissions regulation.
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A digest of changes to our exclusion list — new additions, removals, and the evidence behind them. We review the list continuously as new evidence surfaces.
Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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