Employees fix the seats of a Volkswagen AG (VW) ID.5 electric sports utility vehicle (eSUV) on the assembly line at the automaker's electric automobile plant in Zwickau, Germany, on Tuesday, April 26, 2022.(Photo: Krisztian Bocsi / Bloomberg) The investors “are concerned that while the auto giant is publicly championing the green transition, it may be undertaking lobbying activities that run c ounter to its stated climate ambitions,” ClientEarth said. “This potential contradiction exposes the company to reputational and operational damage and puts the security of their investments in question.”
Volkswagen said the motion the plaintiffs are proposing is inadmissible, because it would encroach on the management board’s powers and shareholders couldn’t legally adopt it even if they wanted. The company nevertheless shares the view that climate protection deserves greater prominence in reporting and is currently considering several approaches to this, it said.
The company already reports on its public affairs activities on a voluntary basis and climate-related issues are also part of various of its disclosures, Volkswagen said. All activities serve to support its strategic goals and a key part of that is the support for the Paris Climate Agreement and the European Green Deal, according to the company.
The investors have asked VW about the lobbying issue for several years but the firm refused to hand over the information, according to ClientEarth. VW earlier this year rejected their proposal to add the motion to the meeting agenda.