Toyota Motor Corporation ADR (NYSE:TM) will confront a difficult hurdle Wednesday when the company holds its annual shareholder meeting. According to recent reports, certain pension funds plan to vote against Chairman Akio Toyoda over governance concerns. These investors are also advocating for increased transparency regarding the company’s climate lobbying activities.

The Japanese auto giant has attracted the attention of activists and green investors in recent years, who say the company has been slow to roll out battery electric vehicles. Now, some investors have taken aim at the independence of its board.

Two of the largest pension funds, California’s CalPERS and CalSTRS, along with New York City’s pension system and other asset managers have said they are voting against current chairman and former CEO, Akio Toyoda.

Shares of Toyota received a boost Tuesday after the company revealed plans to build new battery technology and EV innovation.

The strong financial performance has meant concerns about board independence have largely been shrugged off, said Kazunori Suzuki of Waseda Business School.

“The question is, which is better, a company with perfect governance and bad earnings, or one with a governance framework that is imperfect, but has strong earnings?”

Toyoda took over as chairman in April after spending over a decade as CEO of the company his grandfather founded and is unlikely to lose his seat.

He enjoys strong support from individual investors and the many suppliers and Toyota group companies among its shareholders.

Last year he was re-elected to the board with 96% support.

Shares of TM are up 5.23% in pre-market trading on Tuesday.