Toyota Motor Corporation is a Japanese multinational automotive manufacturer that produces a wide range of vehicles, including cars, trucks, SUVs, and hybrids. It is the largest automobile manufacturer in the world.

Positive signals

Toyota's scope 1 and 2 emissions decreased from 2020 to 2023.

Toyota has reduced CO2 emissions from new cars by 23% since 2012.

Sustainalytics rates Toyota Motor Corporation as having a 'Medium' ESG risk, with a score of 27.7 as of May 2025, indicating that the company is managing its material ESG risks better than many industry peers.

Toyota aims to achieve carbon neutrality globally by 2050 and has set interim targets to reduce CO2 emissions from new vehicles by 35% by 2035.

Toyota aims to reduce CO2 emissions from new vehicles by 90% by 2050, using 2010 as a base year.

Concerns

Settlement for noncompliance with Clean Air Act

Criminal charge and deferred prosecution agreement

Toyota has repeatedly lobbied governments to delay, weaken, or roll back zero-emission vehicle regulations and was ranked the automaker with the most negative impact on climate policy globally in 2021 and 2022 by InfluenceMap. In 2023, Toyota opposed both the EPA’s proposed greenhouse gas emissions standards and updated fuel efficiency standards for cars.

Toyota may face a $50 million fine in Australia for allegedly overstating its vehicle emissions, as reported in 2023, raising concerns about the accuracy of its environmental disclosures.

Criminal charge and financial penalty for misleading safety statements