Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business and Customers
• Product Responsibility
• Environment and Energy
• Employees and Community

Environmental Achievements

• Implemented 57 resource efficiency measures resulting in savings of > EUR 500,000 at the Leipzig plant.
• Revalidated EMAS certification of Zuffenhausen; obtained ISO 50001 certification for the energy management system in Weissach.
• Implemented EDLG at 54 European subsidiaries; rolled out ISO 50001 and ISO 14001 certification at all external sites; implemented Group “Environment” and “Energy” policies.

Social Achievements

• Introduced caregiver leave, sabbaticals, and home office opportunities.
• Introduced Porsche Health Days and “Prevention First” and “Boxenstopp” health schemes.
• Implemented job sharing for women; network meetings for staff on parental leave; Girls Day to encourage young women; expanded childcare facilities and school vacation schemes.

Governance Achievements

• Conducted stakeholder survey 2015; developed a concept for establishing a Sustainability Advisory Board.
• Developed and approved an in-house Sustainability Roadmap incl. specific action plan; preparations made to integrate sustainability into the corporate strategy.
• Continued target group-oriented training programs based on the training plan that is drawn up each year; number of employees at Porsche AG, Porsche Leipzig GmbH, and other German subsidiaries who attended training courses on relevant compliance issues in 2015: around 7,300

Climate Goals & Targets

Environmental Challenges

• The diesel issue affecting the Cayenne Diesel model sold in the USA from model years 2013 through 2016.
• Increasing challenges facing a modern and sustainable automobile manufacturer due to megatrends such as urbanization, digitization, or demographic change.
• Reducing fuel consumption and vehicle emissions, especially in light of the current diesel issue and climate change.

Mitigation Strategies

• Full cooperation with all relevant authorities to clarify the diesel issue.
• Investing more than one billion euros in the Mission E project, focusing on optimizing environmental performance of vehicles over their entire life cycle and pioneering e-mobility.
• Implementing extensive measures to continuously optimize consumption through drive and operating strategies and reducing resistance in operation; introduction of downsized turbochargers, start-stop, coasting, electromechanical power steering, active radiator grille shutter, and brake energy recovery.

Supply Chain Management

Supplier Audits: Started developing an audit concept; completed audit concept.

Responsible Procurement

• Strict compliance with Volkswagen Group sustainability requirements embedded in supply agreements.
• Thorough integrity check of potential new suppliers.
• Use of questionnaires and e-learning modules to constantly monitor and further develop suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and alternative drives

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, ISO 50001, EMAS

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Cayenne S E-Hybrid
• Mission E concept vehicle
• New generation 911 Carrera with downsized turbocharged drives
• 718 Boxster and Cayman with downsized engines

Awards & Recognition

• DGNB gold pre-certificate for Plant 4
• 2nd place in Logistics Innovation Prize 2015
• 1st place in Die Welt Top 500 Award for sustainable growth
• Multiple J.D. Power awards (APEAL and Initial Quality Study)

Environmental Metrics

ESG Focus Areas

• Economic success
• Ecological awareness
• Social responsibility
• Vehicle safety
• Fuel consumption and vehicle emissions
• Materials and sustainable raw materials
• New mobility concepts
• Energy and emissions during production
• Environmentally compatible logistics
• Resource consumption during production
• Attractive employer
• Staff development
• Corporate co-determination
• Occupational health and safety
• Compliance
• Responsibility in the supply chain
• Digital transformation
• Long-term customer relations
• Long-term economic stability

Environmental Achievements

• Porsche AG and its subsidiaries Porsche Logistik GmbH and Porsche Leipzig GmbH switched to 100% green electricity at the start of 2017.
• Significant reduction in the injury rate in recent years.
• Achieved its lowest accident rate ever with 5.5 accidents per million hours of work in 2017.
• Saved almost 38,000 liters of fuel per year by shortening the duration of GT3 engine testing.
• Saved almost 400,000 kilowatt hours of electricity per year by optimizing the extraction of smoke generated during welding.
• Saved almost 67,000 euros of paint material in Zuffenhausen by optimizing the application technique.
• Reduced electricity consumption by more than 740,000 kilowatt hours per year in Leipzig by reducing the fresh air component in the paint shop.
• Saved an average annual saving of 2,092 cubic meters of fresh water on the Leipzig testing track.
• Planted several thousand oak trees in an area covering 4.6 hectares to improve forest diversity.

Social Achievements

• Opened a new training center in Leipzig with modern workshop and seminar rooms.
• Opened a new training center in Cape Town to train 75 women and men from disadvantaged backgrounds.
• Extended contracts with Gewandhaus Leipzig and Stuttgart Ballet.
• Raised 185,000 euros for charity through the 6-hour Charity Run.
• Supported more than 100 projects as part of its charitable donations and CSR sponsorship activities.
• Launched the Porsche Golf Circle, an international, app-based community for Porsche customers who are golf enthusiasts.

Governance Achievements

• Established a compliance organization with a chief compliance officer and compliance area managers.
• Developed a code of conduct for all managers and employees.
• Set up an internal and external collection point for notifications of potential legal violations.
• Implemented a compliance training program including e-learning modules and workshops.

Climate Goals & Targets

Environmental Challenges

• Uncertainty caused by the UK’s Brexit negotiations.
• Political uncertainty in Brazil.
• Radical change in the automotive industry (electrification, digitalization, connectivity).
• Potential ethical issues in the supply chain.
• Increasing traffic load, particularly in built-up areas.

Mitigation Strategies

• Allowing for a slight slowdown in growth in the world economy in 2018.
• Making enormous investments in mastering the digital transformation and enhancing its own powers of innovation.
• Implementing measures to make the supplier chain as positive and value-adding as possible.
• Conducting sustainability audits of selected suppliers.
• Deploying three CNG gas trucks for daily transport to save CO2 emissions.
• Planning to use LNG gas trucks in the next few years.
• Preparing to transport new vehicles by rail using green electricity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainability requirements included in suppliers’ contracts.
• Sustainability audits of selected suppliers.
• Regular employee seminars on sustainability requirements.
• Supplier workshops.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and alternative drive technologies.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, EMAS

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Mission E (first purely electric Porsche)
• Cayenne with PSCB brake (reduced brake dust)
• Lightweight carbon fiber wheels

Awards & Recognition

• 13th straight year as the automobile brand with the highest attractiveness for customers in the US (APEAL study)
• 6th consecutive first place for the 911 in the J.D. Power Initial Quality Study
• 3rd consecutive first place for the Macan in the J.D. Power Initial Quality Study
• Gold Award for the Leipzig plant in the J.D. Power Initial Quality Study
• Four Kelley Blue Book Brand Image Awards
• Car and Driver’s “10 Best Cars” and “10 Best Trucks/SUVs” awards
• auto motor und sport’s “Best Cars 2017” awards
• sport auto’s best-in-class awards for four Porsche models
• Top Gear’s “Engine of the Year” award for the 911 GT3
• Code Brown Award for the 911 GT2 RS
• Golden Steering Wheel award for the Panamera Sport Turismo
• LEED Gold certification for Porsche Centre Shanghai Waigaoqiao
• LEED Certified rating for the Porsche Experience Centre in Los Angeles
• Platinum certification from the DGNB for Plant 4

Environmental Metrics

ESG Focus Areas

• Business & Customers
• Product Responsibility
• Environment & Energy
• Employees & Society

Environmental Achievements

• Reduced CO₂ emissions of its logistics operations by three per cent, avoiding the generation of more than 6,000 tons of climate-damaging carbon dioxide by using renewable green energy for rail transportation of finished vehicles.
• 100% green energy used to supply power needed for production.
• Production process for Taycan is carbon neutral.

Social Achievements

• Established the Ferry Porsche Foundation to support education, social issues, and young people.
• Increased workforce by nine percent, creating approximately 1,500 new jobs at the Zuffenhausen location alone for Taycan production.
• Various initiatives supporting refugees and young people in vocational training and education.

Governance Achievements

• Sustainability is a top priority, directly overseen by the Chairman of the Management Board.
• Established a “Group Sustainability Directive” with binding rules on sustainability topics.
• Developed the Porsche Sustainability Index to combine economic success with social commitment and environmental reduction.

Climate Goals & Targets

Environmental Challenges

• Early-than-expected emissions legislation in Europe leading to challenges and bottlenecks.
• Decreasing demand for diesel vehicles.
• Global economic slowdown and geopolitical tensions.

Mitigation Strategies

• Promptly equipped 911 GTS vehicles with particle filters and WLTP-certified all new 911s (992 generation).
• Decided to move forward without diesel models.
• Invested six billion euros in e-mobility by 2022.
• Implemented measures to increase efficiency and tap into new business areas.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct; adherence to high environmental, social, and human rights standards; sustainability audits.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes; market shifts.

Opportunities

• Development of energy-efficient products; e-mobility.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, EMAS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 4 (Quality education)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 17 (Partnerships for the goals)

Porsche's sustainability activities contribute to these goals through various initiatives in education, employment, innovation, urban development, resource efficiency, climate action, and collaborations.

Sustainable Products & Innovation

• Taycan; plug-in hybrid models; lightweight construction; energy-efficient technologies.

Awards & Recognition

• Econ Awardee of the Year 2018; various awards for Newsroom content; Kelley Blue Book awards; J.D. Power awards; U.S. News & World Report ranking.

Environmental Metrics

ESG Focus Areas

• Innovative Mobility
• Reliable Partner
• Go to Zero

Environmental Achievements

• Main factory in Zuffenhausen became carbon-neutral.
• Reduced CO2 emissions (scope 1 and 2) by 9.6% since 2014 at the Stuttgart-Zuffenhausen location.
• 100% green energy used to power vehicle production.
• Carbon-neutral production of the Taycan.

Social Achievements

• Launched employee well-being program.
• Created around 2,000 new jobs for Taycan production.
• Supported a wide range of charitable initiatives.
• Paid a special bonus of up to 9,700 euros before tax to employees.

Governance Achievements

• Revised sustainability strategy with focus on value-creating growth and reduced environmental impact.
• Issued a one billion euro green bond, the largest of its kind by a car manufacturer.
• Established Group Guideline on Sustainability.

Climate Goals & Targets

Environmental Challenges

• Global competition for resources and the impact of climate change.
• Stricter political regulations, digitalization, and shifting consumer demand.
• Transformation of the automotive industry.
• Trade distortions at an international level and geopolitical tensions.

Mitigation Strategies

• Development of groundbreaking products, technologies, and services that consume fewer resources.
• Investment in electromobility (over six billion euros by 2022).
• Income program aimed at ensuring future economic stability.
• Intelligent ideas that bolster income (e.g., digital methods, reduced variety of versions).

Supply Chain Management

Supplier Audits: On-site checks by independent sustainability auditor for suppliers with unsatisfactory self-disclosures.

Responsible Procurement

• Sustainability rating (S rating) as a binding award criterion for all production material suppliers.
• Compliance with high environmental, social, and human rights standards.
• OECD Due Diligence Guidance for Responsible Supply Chains.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Electromobility

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Limited assurance against the relevant criteria and requirements of the GRI Standards (business audit pursuant to ISEA 3000 (Revised))

UN Sustainable Development Goals

• SDG 4 (Quality education)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 17 (Partnerships for the goals)

Porsche's sustainability activities contribute to these goals through various initiatives such as vocational training, responsible supply chain management, electromobility, resource-efficient production, and collaborations with stakeholders.

Sustainable Products & Innovation

• Taycan (all-electric sports car)
• 718 Cayman GT4 Clubsport (organic-fibre body parts)
• Cayenne Coupé (adaptive rear spoiler)

Awards & Recognition

• Kelley Blue Book awards (Brand Image Award, Best Resale Value, Best Car Styling)
• J.D. Power awards (Sales Satisfaction Index, Customer Satisfaction Index, APEAL)
• Universum Student Survey (most attractive company in automotive industry)
• Glassdoor employer ranking (top spot among leading employers)

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular economy
• Diversity
• Partner to society
• Supply chain responsibility
• Governance and transparency

Environmental Achievements

• Reduced CO₂ emissions per vehicle produced by more than 98% since 2014.
• Achieved net carbon neutral manufacturing process for vehicles at Stuttgart-Zuffenhausen and Leipzig since 2020.
• Stuttgart-Zuffenhausen site saved over 850,000 kWh of heat energy by optimizing a paint shop.
• Leipzig site uses exclusively electricity from renewable energy sources since 2017.
• Initiated construction of an industrial eFuels production plant in Punta Arenas, Chile, with partners.

Social Achievements

• Launched "Porsche hilft" initiative, with volunteers performing over 1,400 hours of voluntary work.
• Donated €1.5 million to victims of the conflict in Ukraine.
• Supported various social projects globally through "Join the Porsche Ride" initiative.
• Main sponsor of the nationwide Children’s run for life.
• Supported the project "Supp_Optimal" providing meals to homeless people in Stuttgart.

Governance Achievements

• Successful IPO in 2022, making Porsche AG an independent company.
• Implemented a software-based ESG management system.
• Established a Business and Human Rights Council to monitor compliance with the Supply Chain Due Diligence Act.
• Sustainability targets incorporated into the remuneration system for the Executive Board from 2023.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the conflict in Ukraine and rising raw material and energy prices.
• Semiconductor shortage.
• Limited availability of parts for the Taycan.
• Need for further expansion of charging infrastructure.

Mitigation Strategies

• Dual sourcing certain parts.
• Stockpiling important components.
• Direct dialogues with chip manufacturers.
• Investment in IONITY and plans to build a fast-charging network.
• Development of alternative sourcing strategies.

Supply Chain Management

Supplier Audits: 88.6% of production material from direct suppliers with a positive sustainability rating (S-rating) in 2022.

Responsible Procurement

• Code of Conduct for Business Partners.
• S-rating system.
• Material-specific sustainability requirements (e.g., for mica and leather).
• Due diligence measures for high-risk countries.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and alternative drive systems.

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, ISO 50001, EMAS

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

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

Porsche's initiatives contribute to these goals through decarbonization efforts, sustainable raw material procurement, circular economy initiatives, and social responsibility projects.

Sustainable Products & Innovation

• Taycan
• eFuels

Awards & Recognition

• Trendence Award for "Porsche hilft" initiative
• Universum Student Survey: Most attractive employer for students of engineering and business sciences
• Universum Young Professionals Survey: Top spot in engineering and business sciences
• Glassdoor Award for employee satisfaction