Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Employee Well-being
• Sustainable Resource Management

Environmental Achievements

• Reduced fuel consumption in several models (e.g., A3 1.6 TDI with 3.8 liters of diesel per 100 kilometers)
• Introduction of TDI clean diesel technology reducing nitrogen emissions by up to 90%
• Reduced overall energy consumption despite increased vehicle production in previous years
• Establishment of the Audi Environmental Foundation

Social Achievements

• Maintained high employee satisfaction scores
• Record-breaking Christmas donation campaign
• Increased number of apprenticeships
• Initiatives to improve work-life balance
• Partnership with FC Bayern München AG

Governance Achievements

• Revised remuneration system for the Audi Board of Management
• Strong financial performance despite economic crisis
• EMAS certification across all locations

Climate Goals & Targets

Environmental Challenges

• Global economic crisis leading to reduced demand for vehicles
• Supply chain disruptions
• High refinancing costs
• Falling residual values in the used car market

Mitigation Strategies

• Optimization of processes and cost structures
• Methodical expansion of product range
• Active steering of production and fixed costs
• Job protection measures (short-time work, insourcing)

Supply Chain Management

Responsible Procurement

• Focus on overall economy, reliability, quality, and innovation
• Close consultation with Volkswagen Group Procurement
• Cooperation with suppliers through integration into product development

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: EMAS

Certifications: DIN EN ISO 14001

Sustainable Products & Innovation

• Audi e-tron
• Audi A3 1.6 TDI
• Audi A4 2.0 TDI e
• Audi Q5 hybrid

Awards & Recognition

• Germany – Land of Ideas award for Travolution project
• ADAC Yellow Angel award
• Auto Zeitung Image Report favorite car brand
• Germany’s most attractive car brand (Brand:Trust)
• Auto motor und sport Best Cars awards
• ADAC most reliable vehicles awards
• Auto Bild Design Award
• Design Award of the Federal Republic of Germany 2010 for A5 Coupé
• Golden Steering Wheel 2009 for A5 Sportback
• Automotive Lean Production Award
• Green Car of the Year Award for A3 Sportback 2.0 TDI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Conservation
• Circular Economy
• Diversity & Inclusion
• Ethical Operations
• Data Protection
• Supply Chain Sustainability
• Employee Well-being
• Corporate Governance

Environmental Achievements

• Reduced CO₂ emissions by 7.48% year-on-year.
• Brussels plant became the world’s first certified carbon-neutral large-scale production plant in the premium segment.
• Saved around 150,000 tons of CO₂ through the Aluminum Closed Loop process.
• Saved more than 71,300 megawatt hours of electricity and approximately 10,800 tons of CO₂ emissions through energy efficiency measures.

Social Achievements

• Launched the “Everyone has a psyche” internal campaign to promote mental health.
• Introduced virtual reality training sessions for electric vehicle maintenance.
• Implemented the “Together4Integrity” program to reinforce compliance and integrity.
• Improved employee satisfaction (details in Stimmungsbarometer).

Governance Achievements

• Established an organization-wide network of integrity ambassadors.
• Revised the Code of Conduct.
• Implemented a systematic cause analysis and lessons-learned process.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and increased CO₂ emissions due to electrification.
• Sustainable extraction of raw materials for electric vehicles.
• Ensuring compliance with sustainability standards across the global supply chain.
• Addressing stakeholder concerns about autonomous driving.

Mitigation Strategies

• Developed measures to reduce carbon emissions in the supply chain (Audi CO₂ program).
• Implemented the Aluminum Closed Loop process.
• Introduced a mandatory sustainability rating (S-Rating) for suppliers.
• Conducted a large-scale online study (“The Pulse of Autonomous Driving”) to understand public perception of autonomous driving.

Supply Chain Management

Supplier Audits: 12,646 suppliers provided information via self-assessment questionnaires (SAQ). 1,331 on-site inspections by independent sustainability assessors.

Responsible Procurement

• Mandatory sustainability rating (S-Rating)
• Audi CO₂ program
• Aluminum Closed Loop
• Membership in the Aluminum Stewardship Initiative (ASI)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: EMAS (Eco-Management and Audit Scheme), DIN EN ISO 14001, DIN EN ISO 50001

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Various initiatives contribute to these goals through decarbonization efforts, sustainable production practices, resource efficiency, and community engagement.

Sustainable Products & Innovation

• Audi e-tron
• Audi e-tron Sportback
• Plug-in hybrid models

Awards & Recognition

• Golden Steering Wheel (e-tron)
• International Engine of the Year (2.0 TFSI)

Environmental Metrics

ESG Focus Areas

• Emissions and energy along the value chain
• Alternative drive technologies and vehicle emissions
• Supply chain responsibility
• Corporate culture, inclusion and diversity
• Compliance and integrity

Environmental Achievements

• Three plants (Brussels, Győr, Böllinger Höfe) achieved net carbon neutrality.
• Increased use of recycled materials in vehicle components.
• Reduced CO2 emissions in logistics through a shift from road to rail transport.

Social Achievements

• Launched the “better normal” project to improve work-life balance and flexibility.
• Implemented the “Supplier Diversity & Inclusion” initiative.
• Increased investment in employee training and development (EUR 500 million by 2025).

Governance Achievements

• Implemented the Together4-Integrity compliance and integrity program.
• Enhanced ESG management system.
• Voluntary reporting of key figures according to the EU taxonomy.

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown.
• Supply chain disruptions (semiconductors, energy prices, war in Ukraine).
• Logistics challenges.
• Coronavirus lockdowns in China.

Mitigation Strategies

• Crisis management teams.
• Diversification of supply chains.
• Development of technical alternatives.
• Close collaboration with suppliers and customers.
• Efficiency measures (Audi.Zukunft initiative).

Supply Chain Management

Supplier Audits: Around 16,000 suppliers completed SAQ for S-Rating; 252 on-site checks conducted.

Responsible Procurement

• Code of Conduct for Business Partners.
• Sustainability Rating (S-Rating).
• Supply Chain Grievance Mechanism.
• Raw Materials Due Diligence Management System (RMDDMS).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Failure to meet CO2 fleet emission targets.
• Delayed development of charging infrastructure.

Opportunities

• Increased demand for electric vehicles.
• Improved supply situation for electric vehicle components.

Reporting Standards

Frameworks Used: GRI, EU Taxonomy

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Audi's sustainability initiatives contribute to these goals through decarbonization efforts, sustainable production practices, responsible supply chain management, and promotion of sustainable mobility.

Sustainable Products & Innovation

• Audi Q8 e-tron family
• Audi Q6 e-tron
• Audi e-tron GT
• Audi Q4 e-tron

Awards & Recognition

• Zero Impact Factory Award (Volkswagen Group)

Environmental Metrics

ESG Focus Areas

• Decarbonization of the value chain
• Circular economy
• Vehicle safety

Environmental Achievements

• Production operations at the Ingolstadt plant have been net carbon-neutral since January 1, 2024
• CO₂ emissions reduced by more than 450,000 metric tons in the supply chain in 2023 through various measures including the use of CO₂-reduced materials and green electricity in high-voltage battery cell production.
• Energy intensity of the Group relating to automotive production reduced by approx. 10 percent compared to 2022.

Social Achievements

• Launched the “better normal” project, offering employees a hybrid working model.
• Invested over EUR 250 million in training and development of employees over the past two years.
• Achieved a 71% participation rate in the employee “Stimmungsbarometer” survey.

Governance Achievements

• Received a C+ rating from ISS ESG, outperforming the industry average.
• Implemented the Responsible Marketing Guideline to reinforce respectful communication.
• Established a Human Rights Focus System (HRFS) to evaluate risks related to human rights and environmental obligations.

Climate Goals & Targets

Environmental Challenges

• Implementation of the ambitious product program, potentially leading to delays and negative financial effects.
• Significant supply risks impacting production volumes.
• Legal requirements relating to products and services, such as legislation on prohibited substances and cybersecurity regulations.

Mitigation Strategies

• Implementing the Audi Agenda to address challenges and outline a concrete course of action.
• Developing its international production network to improve flexibility and eventually switch completely to producing electric vehicles.
• Continuously developing its risk management system and internal control system.

Supply Chain Management

Supplier Audits: 89 audits carried out worldwide in 2023

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainability Rating (S-Rating)
• Act4Impact sustainability initiative

Climate-Related Risks & Opportunities

Transition Risks

• Failure to meet average target for CO₂ fleet emissions
• Heterogeneous development of demand for electric models

Opportunities

• Expansion of electric mobility
• Development of highly automated drive systems

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001, ISO 14001, ISO 45001

Third-party Assurance: EY

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Audi aligns its activities with these SDGs, focusing on areas where it can make the biggest difference.

Sustainable Products & Innovation

• Audi Q6 e-tron
• Audi Q8 e-tron
• Audi Q4 e-tron

Awards & Recognition

• IIHS “TOP SAFETY PICK” award (eight models)
• IIHS “TOP SAFETY PICK+” award (six models)