Toyota referred to consumer watchdog over 'greenwashing' complaint

Toyota is facing an investigation by the Australian Competition and Consumer Commission (ACCC) after Greenpeace filed a complaint about the carmaker's environmental claims.

The complaint, made by the Environmental Defenders Office on behalf of Greenpeace Australia Pacific, focuses on claims made by Toyota regarding the environmental performance of its vehicles and its net-zero ambitions.

Greenpeace's request for the watchdog to investigate the automaker, filed on Friday, follows an announcement by the ACCC it would step up its probe of companies’ sustainability claims after a survey found 247 businesses and brands had made misleading statements.

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Toyota Hybrid

The basis of the complaint is that; Toyota’s net-zero by 2050 plans 'appear inconsistent with its current plans for car production', Toyota is 'not seeking a rapid transition to eco-friendly cars and has a global track record of lobbying to delay, block or weaken vehicle emissions standards' and its vehicles 'may not meet emission standards in real-world use as opposed to test conditions'.

The use of environmental and sustainability claims is becoming more common in the marketing of consumer goods, according to the ACCC. However, there are concerns that a significant proportion of the claims made by businesses may be false, misleading, or have no reasonable basis. This is often known as ‘greenwashing’.

“We believe Toyota Motor Corporation’s advertising is misleading Australian consumers by understating its cars’ emissions and overstating its commitment to clean transport,” said Lindsay Soutar, Director of Greenpeace Australia Pacific’s Electrify campaign.

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“Toyota Motor Corporation makes claims in its advertising that give the false impression the company is leading the transition to clean cars, but the truth is Toyota is not leading the transition but is acting globally to block the take-up of electric vehicles.

“All companies have a duty to tell the truth about their products. That standard must apply especially to a company like Toyota, which is Australia’s largest and until now most-trusted car maker. There needs to be a level playing field so that consumers can make informed choices about how to use their purchases to protect the environment.

“The people — and, increasingly, the corporate regulators — are calling out these misleading practices and holding these corporations to account," added Environmental Defenders Office Managing Lawyer, Kirsty Ruddock.

“If companies like Toyota continue to behave in this manner, they run the very real risk of eroding their social licence and seriously damaging their brand and their customer base.”

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Responding to the concerns, a spokesperson for Toyota told Wheels: "Toyota Australia has a long track record in helping customers reduce their vehicle emissions, including through the supply of over 315,000 hybrid-electric vehicles and investment in reduced tailpipe emissions vehicles and carbon-neutral technologies. We are committed to achieving a sustainable future and reject any claims to the contrary."

In February, it was revealed Toyota's incoming CEO Koji Sato promising a major shift to prioritise battery-electric vehicles (BEVs) – while sticking with a diverse powertrain strategy.

Sato plans to “drastically” revamp the Japanese automaker’s EV strategy – which has long been criticised for its reluctance to commit to the technology – by accelerating the roll out of a next-generation platform expected around 2026, positioning Lexus to lead the charge, and appointing younger executives.