California, New York pensions reject Toyota chairman. Shareholder voting records showed that two top U.S. public pension systems voted against Akio Toyoda’s re-election, focusing on the automaker’s annual meeting later this month.

According to fund postings, CalPERS and the New York City Comptroller voted for a resolution demanding Toyota disclose its climate change lobbying.

Last week, two big proxy advice companies expressed governance concerns at the automaker, prompting the voting. Glass Lewis advised shareholders against re-electing Toyoda, citing his role in the lack of an independent board.

Toyota did not comment on Toyoda’s defeat on Friday.

Climate groups and green investors have criticized the world’s largest carmaker for its delayed adoption of battery-electric vehicles.
The disclosures by activist public pension systems highlighted the pressure Toyota faces at its annual meeting on June 14 overboard supervision and its drive for electric vehicle (E.V.) alternatives, including hybrids like the Prius.

Japanese corporations are under growing scrutiny from shareholders, yet domestic investors prefer boards and cross-shareholdings by related enterprises.

Toyota has claimed its board meets Tokyo Stock Exchange governance standards for independent monitoring and would act with “objectivity, independence and an ability to conduct appropriate supervision.”

Toyoda, the grandson of the company’s founder and chairman, was nominated to the board to help Toyota transition from auto manufacturing to “mobility” services.

Toyota’s board advises shareholders against climate lobbying disclosure. Toyota was committed to carbon neutrality by 2050 but needed flexibility to make swift changes, especially in disclosures.

CalPERS, the largest U.S. public pension fund with $450 billion in assets, declined to comment. New York’s comptroller manages a $243 billion pension system.

CalPERS, a major worldwide investor, voted for around 20 million shares on the Toyota resolutions, less than 0.2% of the stock on the issue.

As of March, New York City pension funds owned 6.7 million Toyota Group shares, including Toyota Boshoku (3116.T) and Toyota Tsusho (8015.T). Toyota Motor Corp.’s share was unclear. Toyota shares rose 3.4%, surpassing the 1.2% Nikkei index (.N225).

This year, the company’s shares returned 13%, including dividends, underperforming the index’s 21%.

In explaining the funds’ vote, New York City Comptroller Brad Lander stated the Toyota board was not independent.

“A board that is genuinely independent of management and appropriately focused on maximizing long-term shareholder value, can strengthen and affirm Toyota’s commitment to electric vehicles,” he said.

The New York pension system has also encouraged Ford (F.N.) and General Motors (GM.N) to accelerate electrification and disclose their vehicle standards lobbying.

Toyota claims to introduce hybrids, plug-in hybrids, hydrogen, and electric vehicles instead of only E.V.s reduces carbon emissions and is more practicable.

For the first time, the carmaker sold 8,584 EVs, including Lexus, in April, accounting for more than 1% of its global sales. By 2026, it wants 1.5 million E.V. sales.