Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced specific energy consumption by -17.9% compared to 2010 baseline
• Reduced specific CO₂ emissions by -26.1% compared to 2010 baseline
• Reduced specific VOC emissions by -49.4% compared to 2010 baseline
• Reduced specific water consumption by -17.1% compared to 2010 baseline
• Reduced specific waste for disposal by -43.3% compared to 2010 baseline
• Achieved a 30.8% reduction in overall environmental impact per vehicle compared to 2010.

Social Achievements

• Launched "Empower to transform" human resources strategy
• Maintained employee satisfaction index score of 78.3 out of 100
• Implemented various compliance training courses for around 219,549 employees
• Supported approximately 3,500 refugees with language and foundation training courses

Governance Achievements

• Strengthened internal processes and control mechanisms in response to the diesel crisis
• Revised Code of Conduct and whistleblower system
• Implemented a diversity index to track women in management and internationality of top management

Climate Goals & Targets

Environmental Challenges

• Diesel crisis and its ongoing consequences
• Balancing individual mobility solutions with resource consumption and climate change
• Meeting climate targets while maintaining market success of SUVs
• Managing the shift toward e-mobility and associated workforce changes
• Addressing environmental questions related to e-mobility's resource use and battery recycling
• Adapting to a new competitive environment with new mobility services
• Balancing data sharing with data protection regulations

Mitigation Strategies

• Strengthened internal control systems and compliance programs
• Investing €34 billion in e-mobility, autonomous driving, digitalization, and new mobility services
• Developing new mobility solutions and digital services
• Implementing a holistic approach to sustainability management
• Working with suppliers to minimize environmental impacts
• Developing closed-loop material cycles and using recycled materials
• Implementing Green Logistics initiatives

Supply Chain Management

Supplier Audits: 137 supplier locations evaluated against sustainability criteria in 2017

Responsible Procurement

• Volkswagen Group requirements regarding sustainability in its relationships with business partners (Code of Conduct for Business Partners)
• Due diligence requirements for conflict minerals
• Sustainable raw material procurement guideline

Climate-Related Risks & Opportunities

Physical Risks

• Climate change

Transition Risks

• Regulatory changes governing CO₂ emissions

Opportunities

• Development of energy-efficient products and e-mobility

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

• Various UN SDGs

The report mentions alignment with the UN Sustainable Development Goals but does not specify which goals are targeted.

Sustainable Products & Innovation

• Electric vehicles
• Hybrid vehicles
• Natural gas vehicles
• Lightweight vehicles

Awards & Recognition

• Five Golds in the Fleet News Award 2017
• Audi UK named "Fleet Manufacturer of the year"
• e-Golf won first and second place in the WAVE Trophy 2017

Environmental Metrics

ESG Focus Areas

• Integrity and Compliance
• Sustainability throughout the Group
• Shaping Mobility with a View to the Future
• Environmental Protection
• Being an Excellent Employer

Environmental Achievements

• Reduction in total CO₂ emissions per vehicle produced (Scope 1, 2, 3) from 40.5 t/a in 2017 to 40.4 t/a in 2018
• Reduction of European new-car fleet CO₂ emissions to 123 g/km
• 37% of energy used worldwide from renewable sources
• CO₂ emissions (Scope 1 and 2) have fallen since 2010
• Reduction in energy consumption per vehicle since 2010
• Aluminum Closed Loop Project achieved a closed loop for aluminum

Social Achievements

• Supported over 3,850 refugees to gain language and other preliminary qualifications
• Hosted the ninth Global Social Business Summit
• Implemented the integrated integrity program aimed at all employees
• Employee satisfaction index score of 78.9 out of 100

Governance Achievements

• Established the Integrity and Legal Affairs Board of Management business area
• Implemented the Together4Integrity (T4I) program
• Revised the Code of Conduct in 2017
• Revised Group policy further improved the whistleblower system

Climate Goals & Targets

Environmental Challenges

• Complexity of the company with 12 brands, more than 664,000 employees and 123 production sites
• Comprehensive transformation due to the transition to e-mobility, digitalization and new mobility services
• Consequences of the diesel crisis
• Conflicting goals and sustainability-related challenges resulting from the business model
• Threat to air quality in town and city centers and driving bans owing to excessive levels of nitrogen oxide
• New requirements as regards data protection with digitalized mobility concepts and autonomous vehicles

Mitigation Strategies

• Developed a sustainable style of company management and put in place the necessary management structures
• Entered into a responsible and objective dialog with local authorities
• Established a stakeholder management system
• Implemented the Roadmap E for all brands
• Developed methods and expanded know-how for impact assessments based on real data, models and simulations
• Launched the Together4Integrity (T4I) program

Supply Chain Management

Supplier Audits: 947 on-site sustainability audits completed

Responsible Procurement

• Sustainability in supplier relationships concept
• Code of Conduct for Business Partners
• Sustainability questionnaire
• E-learning module on sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather situations, storms or floods

Transition Risks

• Differing CO₂ and emissions regulations

Opportunities

• Development of energy-efficient products
• E-mobility

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, UN Sustainable Development Goals, German Sustainability Code

Certifications: ISO 14001, EMAS, ISO 50001, ISO/TR 14062, ISO 14006

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Volkswagen I.D., I.D. BUZZ and I.D. CROZZ
• Electric vehicles
• Modular Electric Drive Toolkit (MEB)

Awards & Recognition

• ADAC Ecotest 2018: 1st: e-Golf, 2nd: e-up!
• VCD/VCS award for VW eco up!, Skoda Citigo and SEAT Mii with natural-gas drive

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Integrity and Compliance
• Human Rights
• Sustainable Supply Chain
• Employee Well-being
• Diversity and Inclusion
• Digitalization
• Sustainable Mobility

Environmental Achievements

• Reduced CO2 emissions per vehicle by more than 35% since 2010 (Scope 1 and 2)
• Achieved 41% renewable energy share in global electricity consumption
• Audi Brussels plant became carbon neutral
• Zwickau plant converted to one of Europe's most environmentally friendly e-plants, reducing CO2 emissions by nearly 90,000 tonnes per year
• Launched a pilot facility for battery recycling in Salzgitter
• ID.3 electric car launched with a carbon-neutral footprint (through offsetting)

Social Achievements

• Supported more than 520 global projects and initiatives
• Launched the Together4Integrity program to improve integrity and compliance
• Implemented a new sustainability rating for suppliers
• Launched the 'WeShare' electric carsharing service
• Launched MOIA ride-sharing service in Hamburg
• Implemented refugee integration support programs
• Expanded employee volunteering programs

Governance Achievements

• Implemented the Together4Integrity (T4I) program
• Revised the Code of Conduct for Business Partners
• Strengthened the whistleblower system
• Developed a new Group policy on governance, risk, compliance, and legal (GRC+L)
• Developed the integrity index to measure progress in integrity and compliance

Climate Goals & Targets

Environmental Challenges

• High CO2 emissions in the electric vehicle supply chain
• Supply chain disruptions due to climate events
• Human rights challenges in raw material extraction
• Shortage of IT skills in the labor market
• Need for accessible charging infrastructure for electric vehicles

Mitigation Strategies

• Contractual obligation for battery suppliers to use certified green electricity
• Joint venture with Northvolt for battery production in Salzgitter
• Increased transparency in the supply chain through audits and blockchain technology
• Investment in employee training and development
• Partnership with Schwarz Group to expand charging infrastructure
• Investment in the development of charging solutions through Elli

Supply Chain Management

Supplier Audits: 1,331 on-site audits in 2019

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainability rating ('S rating') for suppliers
• Requirement for certified environmental management systems (ISO 14001 or EMAS)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, storms, floods

Transition Risks

• Changing CO2 and emissions regulations

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, EMAS, ISO 50001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• ID.3 electric car
• Audi e-tron
• Porsche Taycan
• MOIA ride-sharing service
• WeShare carsharing service

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular economy
• Responsibility in supply chains and business
• Workforce transformation

Environmental Achievements

• Reduced CO2 fleet average in the EU by around 20 percent
• Tripled unit sales of e-vehicles in the Group
• Reduced production-related environmental impact (CO2, energy, water, waste, volatile organic compounds) by 32.8% per vehicle compared to 2010.

Social Achievements

• Coordinated and donated aid supplies internationally during the COVID-19 pandemic
• Conducted 25,000 coronavirus tests for employees
• Produced medical equipment
• Revised Social Charter

Governance Achievements

• Successfully completed the Monitorship in 2020 following the diesel issue
• Established a comprehensive integrity and compliance management system through the “Together4Integrity” (T4I) program
• Published a Green Finance Framework for sustainable investments

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic
• Supply chain disruptions
• Transformation to e-mobility and digitalization
• Significant downgrades in numerous sustainability ratings due to the diesel issue
• CO2 emissions in manufacturing an electric vehicle are roughly twice as high as with a vehicle with a combustion engine.

Mitigation Strategies

• Implemented measures to protect employees and business against COVID-19
• Developed alternative sourcing strategies
• Launched a comprehensive decarbonization program with a goal of carbon neutrality by 2050
• Incorporated an action plan in the Best Governance module of the TOGETHER 2025+ strategy to improve sustainability ratings
• Developed a Green Finance Framework to attract sustainable investments
• Implemented a comprehensive integrity and compliance management system
• Developed roadmaps with suppliers to reduce CO2 emissions
• Contractually obliged high-voltage battery suppliers to use certified energy from renewable sources.

Supply Chain Management

Supplier Audits: 790 on-site audits in 2020

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainability requirements in contracts
• Sustainability rating (S rating) for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, storms, floods

Transition Risks

• Differing CO2 and emissions regulations

Opportunities

• E-mobility, renewable energy

Reporting Standards

Frameworks Used: GRI Standards (Core option), TCFD

Certifications: ISO 14001, EMAS, ISO 50001, ISO 27001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)
• SDG 12 (Responsible consumption and production)
• SDG 11 (Sustainable cities and communities)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)

Initiatives aligned with prioritized SDGs

Sustainable Products & Innovation

• ID.3, ID.4, Audi e-tron, Porsche Taycan

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular Economy
• People in the Transformation
• Diversity
• Integrity
• Responsibility for Supply Chains and Business

Environmental Achievements

• Reduced the overall environmental impact of production (UEP) by 29.0% compared to 2010.
• Reduced specific CO₂ emissions by 33.3% compared to 2020.
• Reduced specific VOC emissions by 62.0% compared to 2020.
• Reduced specific water consumption by 11.6% compared to 2020.
• Reduced specific waste for disposal by 61.6% compared to 2020.
• Achieved 49% renewable electricity share in total global electricity consumption at production sites (excluding China).

Social Achievements

• Increased the proportion of women in management positions to 16.3% (up 1.2 percentage points from the previous year).
• Improved employee satisfaction index to 82.3 out of 100 (slightly above the previous year's score).
• Implemented OneHR operating model for standardized HR departments.
• Trained 17,151 young people.

Governance Achievements

• Reinstatement in the UN Global Compact.
• Implemented Together4Integrity (T4I) program to anchor integrity and compliance measures.
• Completed 707 companies' implementation of T4I program (employing more than 90% of all employees in majority-owned companies).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global supply bottlenecks and electronic components shortages.
• Production stops at many sites leading to increased specific resource requirements.
• High CO₂ emissions in the supply chain during the transition to electric mobility.
• High proportion of coal-fired power in the Chinese electricity mix.
• Legal and media controversies related to the diesel issue.

Mitigation Strategies

• Strategic allocation of available quantities to brands and component prioritization.
• Intensification of business relationship management with suppliers.
• Switching energy supply to renewable energies and integrating renewable energy quotas in supplier procurement.
• Certification of self-imposed decarbonization targets by independent organizations.
• Development of new and fuel-efficient vehicles and alternative drive technologies.
• Regular communication regarding carbon footprint, emission reduction targets, and electrification strategy.
• Establishing comprehensive ESG data reporting tools.
• Implementing a comprehensive decarbonization program covering the whole vehicle life cycle.
• Collaboration with steel manufacturers to accelerate the switch to carbon-neutral products.
• Contractual obligation for high-voltage battery suppliers to use renewable energy in production.
• Investment in own battery cell production capacity.
• Expansion of fast charging infrastructure in Europe, China, and the USA.
• Supporting the construction of wind farms and solar parks.
• Implementing a holistic approach to the circular economy.
• Developing a long-term stakeholder engagement strategy.

Supply Chain Management

Supplier Audits: 654 on-site audits in 2021

Responsible Procurement

• Code of Conduct for Business Partners, sustainability requirements in contracts and specifications, sustainability rating (S rating).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting supply chains
• Water availability impacting production sites

Transition Risks

• Emissions standards compliance, carbon pricing, increasing model diversity, emission-based vehicle taxation, reputational risks.

Opportunities

• Sales potential for fuel-efficient and electric vehicles, cost savings from decarbonization measures, positive capital market performance.

Reporting Standards

Frameworks Used: GRI Standards (Core option), TCFD recommendations, EU Taxonomy Regulation

Certifications: ISO 14001, EMAS, ISO 50001, ISO 45001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft (EY) - Limited assurance

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)

Initiatives contribute to these goals through decarbonization, circular economy, sustainable supply chains, and responsible resource management.

Sustainable Products & Innovation

• Electric vehicles (ID. family, Audi e-tron GT, Porsche Taycan), vehicles with sustainable components (green aluminum, low-emission tires).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Decarbonization
• ESG Performance

Environmental Achievements

• Reduced absolute greenhouse gas emissions in production by 27.2% compared with 2018 by 2022 (aiming for 50.4% reduction by 2030).
• Operates eight production sites on a net carbon-neutral basis (taking offset measures into account).
• Increased percentage of electricity purchased externally from renewable sources at EU production sites from 93.3% to 99.6% within one year (aiming for 100% by 2023 for all EU sites and by 2030 for all global sites outside China).
• Generated 405,735 MWh of electricity from renewable energy in 2022 (aiming for 1.2 million MWh by 2030).
• Implemented 6,443 energy efficiency measures totaling 2.4 million MWh by 2022 (aiming for 4.9 million MWh by 2030).

Social Achievements

• Not disclosed

Governance Achievements

• Established internal carbon pricing tools, including shadow prices and internal emissions trading.

Climate Goals & Targets

Environmental Challenges

• Higher CO2 emissions initially arising in the supply chain during the transition to electric mobility.
• Difficulty of raw material extraction and energy-intensive processes in manufacturing batteries.
• Need for expanding charging infrastructure worldwide.

Mitigation Strategies

• Systematically identifying the biggest drivers of CO2 emissions in the supply chain and defining measures to reduce them.
• Contractually obligating all suppliers (new contract awards) of high-voltage batteries to use certified power from renewable sources.
• Further requirements for upstream stages of the value chain, such as CO2 limits.
• Using additional sustainable components, including battery cases and wheel rims made of CO2-reduced aluminum for ID. models.
• Collaborating with suppliers on a more sustainable supply chain, aiming for 100% renewably generated electricity by 2030.
• Founding the joint venture IONITY and its brand Elli to expand fast-charging infrastructure.
• Strategic partnerships with BP, Iberdrola, and Enel to expand charging networks in Europe.
• Expanding charging infrastructure in the US and China.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• All suppliers (new contract awards) of high-voltage batteries are contractually obliged to use certified power from renewable sources.
• CO2 limits for upstream stages of the value chain.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Additional costs in energy and material consumption due to carbon pricing.

Opportunities

• Expansion of electric vehicle market

Reporting Standards

Frameworks Used: SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric vehicles

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Sustainable Financing

Environmental Achievements

• Issued EUR 6 billion of green bonds, bringing the total volume to EUR 9.5 billion.
• 30% DCI reduction target by 2030 compared to 2018 (on track).

Social Achievements

• Not disclosed

Governance Achievements

• EU Taxonomy aligned Green Finance Framework 2022.
• External audit of EU taxonomy reporting (Article 8) on a reasonable assurance basis.

Climate Goals & Targets

Environmental Challenges

• Uncertainty regarding the impact of the Russia-Ukraine conflict on the Volkswagen Group’s business.
• Potential changes in significant parameters relating to key sales markets, exchange rates, energy and other commodities, or the supply with parts.

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy, ICMA Green Bond Principles

Certifications: Null

Third-party Assurance: TÜV NORD CERT

UN Sustainable Development Goals

• 9.1
• 9.5
• 11.6
• 13.1

Not disclosed

Sustainable Products & Innovation

• ID.7 (MEB platform with highly efficient drive generation)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular Economy
• Biodiversity Protection

Environmental Achievements

• EUR 28bn of Taxonomy-aligned capital expenditure from 2021-2023 allocated towards eligible assets/projects related to the manufacture of electric vehicles.
• Use phase emissions of vehicles to be reduced by 30% compared to 2018 by 2030 (Science Based Target initiative certified).

Social Achievements

• Not disclosed

Governance Achievements

• EU Taxonomy reporting (Article 8) will be externally audited on a reasonable assurance basis.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: EU Taxonomy, ICMA Green Bond Principles, Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: TÜV NORD CERT

UN Sustainable Development Goals

• 9.1
• 9.5
• 11.6
• 13.1

Not disclosed

Sustainable Products & Innovation

• Battery Electric Vehicles (BEVs)

Awards & Recognition

• Not disclosed