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1、2022Sustainability Report5 FOREWORD7 ABOUT THIS REPORT10 SUSTAINABILIT Y IN THE GROUPS DNA11 Corporate Governance 14 NEW AUTO Group Strategy 18 ESG Performance Management and Materiality Analysis20 Sustainability Management 22 Sustainability Impact of New Mobility Options 24 Stakeholder Management 2
2、6 Environmental Compliance Management33 Risk Management35 Corporate CitizenshipCONTENTSA detailed description of the sustainability activities of the Volkswagen Groups brands and regions is available at: Sustainability Reporting&ESG Performance NAVIGATION References to chapters in the Sustainability
3、 Report References to websites References to the Annual ReportFOCUS TOPICS1 DECARBONIZATION36 Decarbonization56 EU Taxonomy2 CIRCUL AR ECONOMY68 Circular Economy3 PEOPLE IN THE TR ANSFORM ATION75 People in the Transformation 4 DIVERSITY89 Diversity5 INTEGRITY94 Integrity 6 SUPPLY CHAIN AND HUMAN RIG
4、HTS104 Supply Chain and Human Rights114 APPENDIX115 Independent Auditors Limited Assurance Report118 Contact Information2TABLE OF CONTENTSSUSTAINABILITY IN THEGROUPS DNASUSTAINABILITY AND ESG(ENVIRONMENTAL,SOCIAL,GOVERNANCE)ARE PART OF THE NEW AUTO GROUP STRATEGYESG PERFORMANCEESG PERFORMANCECIRCULA
5、R ECONOMYDIVERSITYINTEGRITYPEOPLE IN THETRANSFORMATIONSUPPLY CHAIN ANDHUMAN RIGHTSDECARBONIZATION06|ESG,Decarbonization and IntegrityTECH PLATFORMSTECH PLATFORMSTECH INITIATIVESTECH INITIATIVESVOLUMEPREMIUMSPORT&LUXURYBASE INITIATIVESBASE INITIATIVESMECHATRONICSSOFTWAREBATTERY&CHARGINGMOBILITY SOLUT
6、IONSAs we transition from automotive manufacturer to mobility group,we are resetting our priorities with the NEW AUTO Group strategy and positioning ourselves for the future.We are keeping our aim of being a world-leading provider of sustainable mobility firmly in our sights and making the Group mor
7、e focused,efficient,innovative,customer-oriented and sustainable,as well as systematically gearing it toward profitable growth.The NEW AUTO Group strategy defines the six key focus issues shown above for the area of sustainability and ESG in Group initiative 6.This Sustainability Report including no
8、nfinancial report is structured in accordance with these.In addition,the Sustainability in the Groups DNA chapter provides a definition of sustainability for the Group and an insight into topics such as risk management,environmental management,stakeholder management and corporate citizenship.The aim
9、 is to improve performance in the capital markets ESG ratings and rankings so as to increase the ability to invest and optimize the cost of capital.3FOCUS TOPICS2022 HIGHLIGHTS633,881 metric tons of CO saved through the Aluminum Closed Loop process since 2017.12.8 m training hours in the Volkswagen
10、Group.94%of managers have taken part in the Diversity WinsVolkswagen program.The T4I program has been rolled outin 784 controlled companies to date.Development and implementation of a new management approach for responsible supply chains.Reconditioning a gearbox reduces CO emissions by 54%and reduce
11、s the primary energy requirement by 52%compared with the new part.Proportion of women in management worldwide and internationality of top management increased.1,517 inquiries were processed at the compliance information point.2,900 suppliers were trained on sustainability.CIRCULAR ECONOMYDIVERSITYIN
12、TEGRITYPEOPLE IN THESUPPLY CHAIN ANDTRANSFORMATIONHUMAN RIGHTSDECARBONIZATION+26%BEVs 572,100 all-electric vehicles delivered to customers worldwide.1.5 C as goalSBTi confirms tightened climate targets in production.Training costs in the Volkswagen Group:398.6 m1 Further information on the figures o
13、n this page,such as definitions and scope,can be found in the relevant chapters.Dear stakeholders and colleagues,Leaving a better world for future generations is,in our eyes,the greatest challenge of our times.Sustainability is not a fad.Its firmly embedded at Volkswagen as one of five principles of
14、 corporate governance.We think of sustainability holistically:Its about the environment including climate protection and about our social responsibility,the transformation of the workforce and the way we run our company.In the Group,we have set ourselves the long-term goal of becoming net carbon neu
15、tral by no later than 2050 this includes our supply chains,plants and business divisions and our customers use of the vehicles.The biggest contribution to reducing our emissions has been made by electric mobility.And its share in our sales is rising:In 2022,almost 7%of all the vehicles we delivered
16、globally were all-electric.At 572,000 units,we sold a good 26%more e-cars in total than in the previous year.Our attractive e-models,including the Volkswagen ID.Buzz,the ID.5 and the Audi RS e-tron GT,have been impressing customers since their launch.For this year,were aiming for 11%of our sales to
17、be electric vehicles,and we want to increase this to 20%by 2025.The Volkswagen Group is also the first automotive manufacturer to directly support the expansion of renewable energy on an industrial scale.The Group brands have already supported the construction of wind farms in Germany,Sweden and Fin
18、land in 2022.It is planned that all the projects together will generate around seven terawatt GRI 2-22Oliver Blume,Chairman of the Board of Management of VolkswagenAGDaniela Cavallo,Chairwoman of the General and Group Works Council of Volkswagen AGFOREWORDhours of additional green electricity by 202
19、5.This should even better cover the electricity needs of the electric vehicles brought to market and mean a net carbon-neutral use phase can be achieved for the electric fleet.Its clear that Volkswagen is committed to the electric drive for decarbonization for cars,trucks and buses.Were delighted th
20、at the renowned Science Based Targets initiative last year honored our more stringent CO2 targets in production.By 2030,we want to reduce our passenger cars and light commercial vehicles production-related CO2 emissions by 50%instead of our previous target of 30%.The Science Based Targets initiative
21、 has confirmed to us that this means our Group meets the requirements for the 1.5 C goal for the production phase.In battery production too,were mindful of sustainability.We laid the foundation for our own first battery cell factory at the Salzgitter site in 2022.Five more factories in Europe will f
22、ollow by the end of the decade in order to cover the rising demand for electric cars.Each factory will be run entirely on renewable energy and will be de-signed for future closed loop recycling with the aim of recycling as much material as possible and keeping our own raw materials loop as closed as
23、 possible.Our first battery cell manufacturing facility shows that the focus on e-mobility and software development is going to change work.Volkswagen wants to make this transition in an employee-friendly and socially acceptable way.5FOREWORD Table of Contents In 2022,we continued to anchor sustaina
24、bility in our core business.We were able to use our social power at the start of the year when many people were experiencing immeasurable suffering as a result of Russias invasion of Ukraine.We provided help with donations of goods,financial support and the use of our vehicles.Were proud of our empl
25、oyees in Germany,who donated more than 2 million for emergency aid.The big Volkswagen family shows solidarity and holds together in times of crisis.Not only does the transformation to e-mobility underline the need to safeguard jobs,so do other challenges from the past year,includ-ing the aftereffect
26、s of the Covid-19 pandemic,the impact of the war in Ukraine,the supply-chain bottleneck and striking increases in the prices of raw materials and issues with their availability.This makes it all the more crucial that job security,which we consider one of the most important action areas for our Group
27、,has been planned in advance until 2029.This gives us a decisive competitive edge compared with other companies looking for new employees.This security plays a major role for our future colleagues when they are choosing where to work and increases our attractiveness as an employer.The codeterminatio
28、n tools,which were set up at an early stage,offer new talent attractive future prospects and ensure a high level of internationalization in top management,because codetermination is an important factor here as well.Gender diversity is also taken for granted in codetermination at Volkswagen.We active
29、ly encourage an increase in the proportion of female managers and participate in the UN Global Compacts Target Gender Equality program.Our goal is gender equality at all levels of the Group.We are in communication with our suppliers around the world in order to achieve environmental and social impro
30、vements in supply chains.We want to act as a role model in the design of circular,cli-mate-neutral and fair supply chains.In order to identify particularly high risks in the chains,we introduced the human rights focus system in 2022.It identifies and addresses particularly high risks in the area of
31、human rights and the environment.Our newly appointed human rights officer will independently monitor whether human rights due diligence requirements are being met.As part of the 10-point plan,which defines the Groups most im-portant action areas,we are going to anchor sustainability even more strong
32、ly in daily business in 2023.We are now going to go a step further and break down our ambitious ESG targets into brands and business divisions.Its about the brands and sites in the Group living up to their responsibility as a whole.In the end,there will be uniform ESG profiles for all brands.This is
33、 important because doing business sustainably is becoming increasingly important including for our investors.Sustainability is also firmly anchored in our strategy in 2023.We are going to continue to advance the key topics of decarbonization of transportation and production,the transformation of the
34、 work-force and our responsibility in supply chains.You are cordially invited to join us in this.Oliver Blume and Daniela Cavallo GRI 2-226FOREWORD Table of Contents ABOUT THIS REPORTREPORT STRUCTUREThis 2022 Group Sustainability Report is based on internationally established frameworks and requirem
35、ents,such as the standards of the Global Reporting Initiative(GRI,see also following section),the German CSR Directive Implementation Act(CSR-Richtlinie-Umsetzungsgesetz CSR-RUG),ESG sustainability ratings and stake-holder expectations.The report is supplemented by a detailed de-scription of the sus
36、tainability activities of our brands and regions and of the Volkswagen Groups corporate citizenship projects.Further information,particularly information relevant to ESG in-vestors for example,on the brands and regions sustainability activities and also ESG KPIs is available on the Groups corporate
37、website and is not part of this report.Sustainability in the Groups DNA Sustainability Management Sustainability in the Groups DNA ESG Performance Management and Materiality Analysis Sustainability Reporting&ESG Performancewww.volkswagen- COMMUNICATION Sustainability Reporting WEBSITE2022 Nonfnancia
38、l Statement2022 SUSTAINABILITY REPORTVOLKSWAGEN GROUP SUSTAINABILITY COMMUNICATIONincludingBASIS FOR REPORTFor reporting year 2022,Volkswagen AG is issuing a nonfinancial statement at Company level and a nonfinancial Group declaration,which are being published together as a combined separate non-fin
39、ancial report within the meaning of German Commercial Code(Handelsgesetzbuch HGB)sections 289b para.3 and 315b para.3.The nonfinancial report is drawn up in accordance with HGB section 315c,in conjunction with sections 289c through 289e.In line with the German CSR Directive Implementation Act(CSR-RU
40、G),this non-financial report concentrates on the focus issues necessary for an understanding of the Volkswagen Groups business development,overall performance and position as well as the Volkswagen Groups impact on nonfinancial aspects.We are again reporting on our climate protection activities in l
41、ine with the requirements of the Task Force on Climate-related Financial Disclosures(TCFD).Furthermore,the GRI Standards are used as the framework for drawing up the nonfinancial report.In this Sustainability Report,Volkswagen systematically uses the GRI Standards(with reference to)as the underlying
42、 structure for reporting on management ap-proaches and the specific standard disclosures.The GRI Content In-dex has been separated from the 2022 Sustainability Report and can be found as a separate document in the Group portal: Sustainability Reporting&ESG Performance Sustainability ReportAs a membe
43、r of the United Nations Global Compact,we also contin-uously report how we are putting the Ten Principles into corporate practice.Our current progress report can be found on the UN Global Compacts website:United Nations Global CompactThe strategy chapter and the six following chapters on focus issue
44、s in the report each consist of a text section plus a consolidated KPI table at the end of each chapter.GRI 2-27ABOUT THIS REPORT Table of Contents References to disclosures outside the nonfinancial report are sup-plementary information and do not form part of this report.The following passages are
45、also not part of the nonfinancial report:Foreword(pp.56)The German Corporate Governance Code A Blueprint for Successful Corporate Governance(p.12)Further Information and The Volkswagen Value Chain(p.13)Making the Social and Environmental Impact of Our Actions Measurable(p.19)The information in this
46、report relates to the Volkswagen Group as a whole.Where information relates to individual Group divisions only,this is clearly indicated in the text.Unless indicated otherwise,any information provided for the Group also applies to Volkswagen AG.In addition to Volkswagen AG,the Group includes all maj
47、or sub-sidiaries inside and outside Germany that are directly or indirectly controlled by Volkswagen AG.In the financial data,our joint ventures in China are reported using the equity accounting method.However,they are included in full(100%)in volume-related data(sales,production and workforce)and i
48、n production-related environmentally relevant data.The manage-ment approaches described in this report(e.g.,the environmental compliance management system ECMS and the compliance man-agement system for business and human rights CMS BHR)apply to all the Volkswagen Groups controlled companies.With our
49、 non-controlled companies i.e.,companies that are not controlled by a company of the Volkswagen Group as the majority owner we work to the extent feasible and permitted by law toward implementation of the adjusted management approaches.The Chinese joint ven-tures are included in the information on t
50、he Volkswagen Group in the KPIs and the associated targets on the topics of the UEP,the DCI,the Opinion Survey,the diversity index,training hours per employee,accident indices and accident figures.The risks of the Chinese market are recorded by Volkswagen(China)Investment Company Ltd.The KPIs presen
51、ted in this report build on the indicators presented in previous years.Any material changes to the methods used to collect and measure the data on our sustainability performance are explicitly disclosed for the respective KPIs.All figures shown in the report are rounded,so minor discrepancies may ar
52、ise from addition of these amounts.REPORT AUDITINGErnst&Young GmbH Wirtschaftsprfungsgesellschaft(EY)con-ducted a voluntary,limited assurance engagement in accordance with ISAE 3000(Revised)on the combined separate nonfinancial report prepared in accordance with HGB sections 289b para.3 and 315b par
53、a.3 to verify that its disclosures comply with the relevant statutory requirements.Further information on the engagement can be found in the independent practitioners report on a limited assurance engagement on the nonfinancial reporting.DISCLOSURES IN CONNECTION WITH THE ANNUAL FINANCIAL STATEMENTS
54、Connections have been identified in this combined nonfinancial report to amounts reported in the 2022 annual or consolidated financial statements.In fiscal year 2022,the operating result in the Passenger Cars Business Area was affected by negative special items of 0.4billion in connection with the d
55、iesel issue.These special items were mainly attributable to additional expenses for legal risks.To hedge the currently known legal risks related to the diesel issue,the provisions for litigation and legal risks as of December 31,2022 include an amount of around 1.4 billion,based on existing infor-ma
56、tion and current assessments.Insofar as these can be adequately measured at this stage,contingent liabilities relating to the diesel issue were disclosed in the notes to the consolidated financial state-ments in an aggregate amount of 4.2 billion,whereby 3.6 billion of this amount results from lawsu
57、its filed by investors in Germany.The provisions recognized,the contingent liabilities disclosed,and the other latent legal risks in the context of the diesel issue are in part subject to substantial estimation risks given the complexity of the individual relevant factors,the ongoing coordination wi
58、th the au-thorities,and the fact that the fact-finding efforts have not yet been concluded.Should these legal or estimation risks materialize,this could result in further substantial financial charges.In particular,adjustment of the provisions recognized in light of knowledge acquired or events occu
59、rring in the future cannot be ruled out.The remaining provisions relate to a wide range of identifiable indi-vidual risks,price risks and contingent liabilities,which are fac-tored in in the amount of their probable occurrence.Depending on the jurisdiction concerned,risk provisions for any non compl
60、iance with statutory emissions limits are also included.Their measure-ment takes into account,among other things,the respective sales volume and the legally defined fee or the cost of acquiring emission rights from other manufacturers.Advantage has been taken of synergies between individual brands o
61、f the VolkswagenGroup by establishing emission pools where possible.Additional information on this matter and the valuation assumptions and bases can be found in the Annual Report in the notes to the consolidated financial statements.GRI 2-2,2-4,2-58ABOUT THIS REPORT Table of Contents ADDITIONAL REP
62、ORTING WITHIN THE GROUPBy referencing this combined separate nonfinancial report,all Group companies that are required by national legislation to disclose nonfinancial and diversity-related information pursuant to Direc-tive 2014/95/EU but do not issue their own nonfinancial statement are exempted f
63、rom the obligation to submit their own nonfinancial reports.TERMINOLOGY RELATING TO CLIMATE PROTECTIONThe use of the term CO2 emissions in this report includes the con-sideration and identification of additional climate-damaging green-house gases such as methane(CH)and laughing gas(N2O)(CO2 equivale
64、nts).All figures in this report on CO2 emissions correspond to CO2 equivalents,except for fleet emission figures.Net carbon neutrality is achieved when anthropogenic CO2 emissions are balanced worldwide through avoidance,reduction and offsetting over a specific period of time.With regard to climate
65、protection,in addition to CO2 emissions Volkswagen also pays attention to all other relevant greenhouse gases.Avoidance and reduction have priority over offsetting for the Volkswagen Group.For offsetting measures,the Group follows internationally established standards.EDITORIAL NOTESWhenever this re
66、port uses the term Sustainability Report,this ex-pression includes the nonfinancial report each time it is mentioned to the extent described on page 8.REPORTING PRACTICESThe nonfinancial report is published annually.The last nonfinancial report was published on March 15,2022.In addition to informati
67、on about the Groups sustainability activities in the 2022 fiscal year(January 1 to December 31,2022),this 2022 nonfinancial report also contains selected information from the 2023 fiscal year.ABOUT THIS REPORTThe editorial deadline was February 17,2023.The Group Sustain-ability Report is published i
68、n the first quarter of 2023 and is also available in the original German.In the event of any discrepancies,the German authoritative version of the document takes precedence over the English translation.LEGAL INFORMATIONThis sustainability report contains statements relating to the future business de
69、velopment of the Volkswagen Group.These statements are based on assumptions relating to the development of the eco-nomic,political and legal environment in individual countries,economic regions and markets,and in particular for the automotive industry,which we have made on the basis of the informati
70、on avail-able to us and which we consider to be realistic as of the time of go-ing to press.The estimates given involve a degree of risk,and the actual developments may differ from those forecast.Any changes in significant parameters relating to our key sales markets,or any significant shifts in exc
71、hange rates,energy and other commodities or the supply of parts relevant to the Volkswagen Group,or devia-tions in the actual effects of the Covid-19 pandemic from the sce-nario presented in this report will have a corresponding effect on the development of our business.In addition,there may be depa
72、r-tures from our expected business development if the assessments of the factors influencing sustainable value enhancement,and of risks and opportunities,presented in this sustainability report develop in a way other than we expect at the time of publication,or if additional risks and opportunities
73、or other factors that affect the development of our business emerge.GRI 2-39ABOUT THIS REPORT Table of Contents 10CORPORATE GOVERNANCEOUTLINE OF THE LEGAL STRUCTURE OF THE GROUPVolkswagen AG is the parent company of the Volkswagen Group.Itdevelops vehicles and components for passenger cars and light
74、 commercial vehicles for the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles brands.In its capacity as parent company,Volkswagen AG holds direct or indirect interests in AUDI AG,SEAT S.A.,KODA AUTO a.s.,Dr.Ing.h.c.F.Porsche AG(Porsche AG),TRATON SE,Volkswagen Financial Services AG,Volks
75、wagen Bank GmbH and a large number of other companies in Germany and abroad.More detailed disclosures are contained in the list of shareholdings in accordance with sections 285 and 313 of the German Commercial Code(Handelsgesetzbuch HGB),which can be accessed on the website and is part of the annual
76、 financial statements.GRI 2-1,2-6VOLKSWAGEN AG SHAREHOLDER STRUCTUREas of December 31,2022,in%of voting capitalEMPLOYEES BY MARKETas of December 31,2022,in%State of Lower Saxony 11.8Qatar Holding LLC 10.5German institutional investors 2.6Porsche Automobil Holding SE 31.9Foreign institutional investo
77、rs 22.2Private shareholders/others 21.0Asia-Pacifc 16North America 6South America 5Europe(excluding Germany)/other markets30Germany43The Volkswagen Group is one of the leading multi-brand groups in the automotive industry.The Groups business activities comprise the Automotive and Financial Services
78、divisions.Our core brands within the Automotive Division with the exception of the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles brands are independent legal entities.The Automotive Division comprises the Passenger Cars,Commercial Vehicles and Power Engineering business areas.The Pass
79、enger Cars Business Area essentially consolidates the Volkswagen Groups passenger car brands and the Volkswagen Commercial Vehicles brand.Activities focus on the development of vehicles,engines and vehicle software,the production and sale of passenger cars and light commercial vehicles,and the genui
80、ne parts business.The product portfolio extends from small cars through to luxury vehicles in the premium segment.It also includes motor-cycles and is supplemented by mobility solutions.The Commercial Vehicles Business Area primarily comprises the development,produc-tion and sale of trucks and buses
81、,the corresponding genuine parts business and related services.The commercial vehicles portfolio ranges from light vans to heavy trucks and buses.The collaboration between the commercial vehicle brands is coordinated within TRATONSE.The Power Engineering Business Area combines the large-bore diesel
82、engines,turbomachinery and propulsion components businesses.The Financial Services Divisions activities comprise dealer and customer financing,vehicle leasing,direct banking and insur-ance activities,fleet management and mobility services.With its Investor RelationsVolkswagenAG is a vertically integ
83、rated energy supply company as defined by section 3 no.38 of the German Energy Industry Act(Energiewirtschaftsgesetz EnWG)and is therefore subject to the provisions of the EnWG.In the electricity sector,VolkswagenAG generates,sells and distributes electricity together with Group subsidiaries.The Vol
84、kswagen AG Board of Management has sole responsibility for managing the Company.The Supervisory Board appoints,monitors and advises the Board of Management and is directly consulted on decisions of fundamental significance for the Company.brands,the Volkswagen Group is present in all relevant market
85、s around the world.The key sales markets currently include the Western Europe region and China,the USA,Brazil,Poland,Mexico,Trkiye and the Czech Republic.VolkswagenAG and the Volkswagen Group are managed by the VolkswagenAG Board of Management in accordance with the VolkswagenAG Articles of Associat
86、ion and the rules of procedure for VolkswagenAGs Board of Management issued by the Supervisory Board.Accordingly,responsibilities were divided among 11 board-level management functions starting from January1,2022.In addition to the Chair of the Board of Management,which also includes the Volume bran
87、d group,the other Board positions are Purchasing,Technology,Finance,Human Resources and Truck&Bus,Integrity and Legal Affairs,Premium,Sport&Luxury,IT,China,and Volkswagen Passenger Cars.A new Group Sales function was created with effect from February1,2022.As of September1,2022,the Volkswagen Group
88、refined its Group management.The Board of Management was streamlined,and responsibilities were reallocated:The Purchasing and Group Sales Board functions were dissolved.In addition,the Volkswagen Passenger Cars function was renamed Volume.Since then,responsibilities have been divided between ten boa
89、rd-level management functions.In addition to the Chair of the Board of Management,the other Board positions are Technology,Finance,Human Resources and Truck&Bus,Integrity and Legal Affairs,11SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in
90、 the Transformation|Diversity|Integrity|Supply Chain and Human RightsVolume,Premium,Sport&Luxury,IT,and China.The Chair of the Board of Management is also responsible for Sport&Luxury.Directly connected to the Board are a number of Group Management functions that act as an extension to the board-lev
91、el management functions.These comprise the Group Sales,Group Production,Procurement and Technical Architecture functions.The allocation of responsibilities of the Board of Management is based on the schedule of responsibilities decided by the Supervisory Board,which takes into account the changes in
92、 the management during the reporting period.Its structure contributes to enabling the Board of Management to focus on key tasks such as strategy,central decisions on the Companys direction,capital allocation and finan-cial requirements.The tasks of the extended Group management serve to leverage syn
93、ergies in the Group and to connect the brands and divisions.In addition,at Group level,Board of Management committees address key strategic issues relating to products,technologies,in-vestments,digital transformation,integrity and compliance,risk management,human resources and management issues.We a
94、re continually revising and optimizing the committees in order to verify that they still align with our corporate strategy and to further increase the efficiency of their decision-making.This is intended to reduce complexity and reinforce governance within the Group.The matrix of brand groups and te
95、chnology platforms created under the Group Steering Model base initiative from the Group strategy NEW AUTO was enhanced in both dimensions during the reporting period.This involved both strengthening the brand groups and creat-ing new units for key technology areas of the future within our strate-gi
96、c technology platforms.The Group steering model will be further refined in the future on this basis.The Volume brand group comprises the Volkswagen Passenger Cars,KODA,SEAT/CUPRA and Volkswagen Commercial Vehicles brands.The Premium brand group comprises the Audi,Lamborghini,Bentley and Ducati brand
97、s.The Sport&Luxury brand group consists of the Porsche brand.The company responsible for this brand,Porsche AG,has been listed on the stock market since the end of September 2022.In the Truck&Bus brand group,TRATONSE acts as the umbrella for the Scania,MAN,Volkswagen Truck&Bus and Navistar commercia
98、l vehicles brands.TRATON SE is also a listed company.As well as strengthening the brand groups,the reorganization and creation of new units enabled substantial progress with the Software,Battery&Charging and Mobility Solutions technology platforms in the reporting period.The software subsidiary CARI
99、AD was further ex-panded,getting a subsidiary of its own in China,among other things.In addition to this,Volkswagen founded PowerCoSE in the reporting period as part of the Battery&Charging technology platform.This company is responsible for the Groups global battery business.In addition to producin
100、g battery cells,it will also take on other activi-ties along the battery value chain in the future.In the Mobility Solutions technology platform,Volkswagen strengthened the Groups expertise in advanced fleet management through the equity investment in the Europcar Mobility Group in the reporting per
101、iod.The aim is to be able to achieve even better coverage of all customers mobility needs based on a new mobility platform.We are convinced that our corporate structure,which efficiently connects the brand groups and technology platforms,will enable us to make better use of existing expertise and ec
102、onomies of scale,leverage synergies more systematically and accelerate decision-making.Clear responsibilities and a high degree of business respon-sibility in the brand groups and technology platforms will enable comprehensive implementation of the Groups NEW AUTO strategy.LEGAL FACTORS INFLUENCING
103、BUSINESSLike other international companies,the business of the Volkswagen companies is affected by numerous laws in Germany and abroad.In particular,there are legal requirements relating to services,de-velopment,products,production and distribution,as well as super-visory,data protection,financial,c
104、ompany,commercial,capital market,antitrust and tax regulations and regulations relating to labor,banking,state aid,energy,environmental and insurance law.THE GERMAN CORPORATE GOVERNANCE CODE A BLUEPRINT FOR SUCCESSFUL CORPORATE GOVERNANCECorporate governance provides the regulatory framework for cor
105、po-rate management and supervision.This includes a companys orga-nization and values and the principles and guidelines for its business policy.The German Corporate Governance Code(the Code)contains principles,recommendations and suggestions for corporate man-agement and supervision.Its principles,re
106、commendations and sug-gestions were prepared by a dedicated government commission on the basis of the material provisions and nationally and internation-ally accepted standards of sound,responsible corporate governance.In the interests of best practice,the government commission regu-larly reviews th
107、e Codes relevance in light of current developments and updates it as necessary.The Board of Management and the Supervisory Board of Volkswagen AG base their work on the Codes principles,recommendations and suggestions.We consider good corporate governance to be a key prerequisite for achieving a las
108、ting increase in the Companys value.It helps strengthen the trust of ourshareholders,customers,employees,business partners and in-vestors in our work and enables us to meet the steadily increasing demand for information from national and international stake-holders.You can find our published Declara
109、tion of Conformity with the German Corporate Governance Code here: Investor Relations Corporate Governance Declarations12SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsF
110、URTHER INFORMATION Explanations of the composition,working methods and diversity concept of the Board of Management and the Supervisory Board and information on voting rights are available in the Corporate Governance chapter in the 2022 Annual Report.2022 Annual Report Corporate GovernanceExtensive
111、explanations of the remuneration system and the indi-vidual remuneration of the members of the Board of Management and Supervisory Board can be found in the Remuneration Report for fiscal year 2022,which forms part of the 2022 Annual Report,in the notes to Volkswagens 2022 consolidated financial sta
112、tements and in the notes to the 2022 annual financial statements of Volkswagen AG Investor Relations Corporate Governance RemunerationTHE VOLKSWAGEN VALUE CHAINRESEARCH&DEVELOPMENTThe Automotive Divisions research and development costs in the reporting year totaled 18.9 billion and were thus 21.3%hi
113、gher than in the previous year.In addition to new models,our activities focused above all on the electrification of our vehicle portfolio,digitalization,new technologies and enhancements of our modular and all-electric toolkits and platforms.PROCUREMENTEvery year,the Volkswagen Group purchases a wid
114、e range of raw materials,components and other goods.A sustainable supply chain and environmentally compatible transportation are important for fully assuming responsibility for human rights,environmental protection and the battle against corruption.PRODUCTIONThe Volkswagen Group manufactured an aver
115、age of around 24,000vehicles globally every working day in 2022.Efficient production ranks alongside environmental protection and employee health and safety as one of our core goals.MARKETING&SALESBusiness relationships with fleet customers are often long-term and stable partnerships.The Volkswagen
116、Groups share of commercial fleet customers is 43.5%in Germany and 25.7%in the rest of Europe.AFTER-SALES&FINANCIAL SERVICESOur service includes supporting dealerships to ensure they can provide quality advice and maintenance,managing our original parts business,and providing vehicle-related financia
117、l services.RECYCLINGIn addition to recycling vehicles at the end of their useful life,we pay close attention during the new-vehicle development stage to the recyclability of the required materials,the use of high-quality recycled materials,and the avoidance of pollutants.The Volkswagen AG Group Boar
118、d of Management has adopted an update of the tax strategy principles,which has been published on Volkswagen AGs website.Each year,Volkswagen AG sends the German Federal Central Tax Office a country-by-country report,which includes information on tax payments and tax expenses/income by country.The Vo
119、lkswagen Group has the ambition of implementing its marketing and communication activities transparently and respon-sibly.This includes attentiveness towards our environment and re-quires us to treat all individuals with respect and honesty and as equals.This applies internally and externally,online
120、 and off.To this end,the Group has developed principles that serve as a com-pass for implementing the Volkswagen Groups values with regard to marketing and communication Sustainability Strategy,Policy&Engagement Policy GRI 2-613SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decar
121、bonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsNEW AUTO GROUP STRATEGYIn the context of the fast-changing environment and the challenges resulting from it,the Group Board of Management adopted the Group strategy“NEW AUTO”Mobility for Generat
122、ions to Come in May 2021 with the approval of the Supervisory Board.The strategys focus is the world of mobility in 2030.As technology advances,the automotive industry is rapidly forging ahead with its transformation toward e-mobility and digitalization.We therefore expect the market for electric ve
123、hicles to grow strongly in the next few years,meaning that cost-efficient and sustainable production of battery systems and the expansion of charging infrastructure will be crucial to suc-cess.The shift to connected,intelligent and eventually self-driving vehicles,however,will bring more wide-reachi
124、ng changes for the automotive industry.Autonomous driving will change the customers mobility experience forever and lay the ground for new business models.Sources of revenue will gradually shift and will expand be-yond the core product of the automobile.This shift will be depen-dent on increasing so
125、ftware development capabilities so as to excite customers with constantly improving digital functionality.As with technological trends,global economic as well as geopolitical con-straints are increasingly confronting the automobile industry with greater challenges for example,the economic influence
126、wielded by the biggest mobility markets,China,the USA and Europe,and the way they are diverging.Sustainability will continue to be a recurring theme in the business world and will gain further pertinence,driven by the increasingly noticeable consequences of climate change,a greater consciousness of
127、sustainable lifestyles on the part of the customer and,not least,un-derlying factors such as the Paris Climate Agreement.As we transi-tion from automotive manufacturer to mobility group,we are reset-ting our priorities with NEW AUTO and positioning ourselves for the future.We are keeping our aim of
128、being a world-leading provider of sustainable mobility firmly in our sights and making the Group more focused,efficient,innovative,customer-oriented and sustain-able,as well as systematically gearing it toward profitable growth.THE 12 INITIATIVES OF THE NEW AUTO STRATEGYMECHATRONICS06|ESG,Decarboniz
129、ation and Integrity12|Financing the Transformation07|Business Model 2.008|NAR Region09|China Region10|Group Steering Model11|People&TransformationSOFTWAREBATTERY&CHARGINGMOBILITY SOLUTIONS01|Backbone and Scalable Systems Platform(SSP)02|CARIAD:One E3 Platform and Autonomous Driving Stack03|Cell and
130、Battery Strategy 04|Charging and Energy Services05|Mobility SolutionsTECH INITIATIVESTECH INITIATIVESVOLUMEPREMIUMSPORT&LUXURYBASE INITIATIVESBASE INITIATIVESTECH PLATFORMSTECH PLATFORMS14SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in th
131、e Transformation|Diversity|Integrity|Supply Chain and Human RightsTo this end,we have established 12 Group initiatives across the brand groups.We will use these to develop the competences needed to implement the strategy.The focus is on the main multidisciplinary topics of mechatronics,software,batt
132、ery&charging,and mobility solutions,on which the five tech initiatives described below are based.A further seven base initiatives form the basis for the Volkswagen Groups strategic realignment.These are ESG,Decarbonization&Integrity,Business Model 2.0,North America(NAR)and China Re-gions,Group Steer
133、ing Model,People&Transformation and Financ-ing the Transformation.To make the progress in the relevant Group initiatives of our strategy as transparent as possible for management and employees,the Group Board of Management decided to structure and regularly measure the strategic goals and milestones
134、 using the OKR(objectives and key results)method.Achievable strategic objectives and envis-aged key results are defined for each Group initiative.These are to be realized largely through time-limited projects and work packages,each of which is measured by specific key performance indicators.The degr
135、ee of achievement is discussed three times a year with the Board of Management.The relevance of the initiatives,and their objec-tives,milestones,projects and work packages,are regularly reviewed at Group level.Their focus is continuously monitored and adjusted as necessary or integrated into standar
136、d operations.Mechatronics Backbone and Scalable Systems PlatformA future-oriented mechatronics platform will form the backbone for innovations,technology and lasting competitiveness at Volkswagen.With the Scalable Systems Platform(SSP),we are creating the next generation of an all-electric,fully dig
137、ital and highly scalable mecha-tronics platform on the basis of a standardized software architec-ture.With this standardized platform,which can be scaled from the smallest vehicles all the way up to the premium segment,the Volkswagen Group aims to rapidly and efficiently provide its cus-tomers with
138、innovative functions and technologies in their vehicles,across all brands.By reducing complexity and the number of versions,the SSP will offer us maximum synergy effects and make fast,regular technology updates possible,while lowering invest-ment costs and ensuring the necessary differentiation betw
139、een the products of the individual brands in the Groups portfolio.Software CARIAD:ONE E Platform and Autonomous Driving(AD)Stack The purpose of the Groups own software and technology company CARIAD is to create the technical basis for data-based business models,new mobility services and automated dr
140、iving(Level 4)and to leverage cross-brand synergies.Our aim is to increase the proportion of software in the vehicle that is developed in house.CARIAD is already working with the Porsche and Audi brands to introduce the new E 1.2 platform,which optimizes the harmonization of the hardware with the ve
141、hicle software from CARIAD.This facilitates the deployment of over-the-air updates and is a key lever for intro-ducing new services even after vehicle production has begun.In the long term,the standardized E 2.0 software architecture that is al-ready being developed,together with the VW.OS software
142、platform and the Volkswagen Automotive Cloud,will form the basis of a complete digital ecosystem,offering customers a wide range of soft-ware-based services throughout the product life cycle.The aim is for every function that is needed or requested and every service to be customized for the users in
143、 the various markets and to be avail-able for download at any time.This will also open up new sources of revenue for us.Automated driving applications at various levels(up to level 4)are to be gradually introduced to the new vehicle models in the Group brands.Battery&Charging Cell and Battery Strate
144、gyThe battery is a key component in an electric vehicle and an im-portant cost factor.The appeal and market success of e-mobility is determined not only by the price,but also by the range and the charging speed.We must become a profit-generating expert across the entire battery life cycle to achieve
145、 our objective of transforming into a world-leading provider of sustainable mobility.To this end,theCell and Battery Strategy tech initiative pools expertise across the Group and is driving the transformation process in cooperation with our strategic partners.The aspects covered include battery mana
146、gement,cell production and recycling.Our aim is to develop battery cell technology into a core competence in the Group,and we are also working with partners to achieve this.At the heart of this strategy is the new unified cell,which can contain different chem-istries and will be used in up to 80%of
147、Group models by 2030.The excellent economies of scale this generates will reduce costs by up to 50%and put us in a leading cost position.To cover the high de-mand for battery cells,Volkswagen plans to build six gigafactories in Europe alone,with a production capacity totaling 240GWh.Battery&Charging
148、 Charging and Energy ServicesCharging,energy and a sustainable energy supply infrastructure for all-electric vehicles are key prerequisites for accelerating the transition to battery-electric mobility of the future.It is therefore our intention to also become a comprehensive charging and energy serv
149、ices provider in the future,and we are investing heavily in building an open fast-charging network worldwide.By 2025,we and our partners plan to create around 45,000 high-power charging points in Europe,China and the USA.The product portfolio also in-cludes the full range of charging solutions for p
150、rivate customers and companies.In addition to the Groups own wall box and the flexible fast-charging station,contract-based charging services and smart green electricity tariffs in particular are becoming the focus.Charging processes will then systematically use renewable energy and reduce pressure
151、on power grids.In a next step,Volkswagen intends to develop the electric vehicle as a mobile power bank,thus helping electric vehicles to become an active part of the energy system in the future as storage devices.In this way,Volkswagen wants to enable its customers to participate in one of the lead
152、ing smart-charging and energy ecosystems for decarbonized mobility.15SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsMobility SolutionsWith the motto,“Mobility for Genera
153、tions to Come,”the Volkswagen Group is developing mobility solutions of the future,taking into account global trends and changing customer needs.The Group plans to bring together all of its brands mobility services on one mobility platform over the coming years.Autonomous driving com-bined with new
154、mobility solutions is expected to mark Volkswagens transformation into a leading provider of sustainable mobility.A vehicle fleet covering all of the many services,from vehicle rental to car subscription and ride pooling,will ensure high availability,usage and profitability.With these solutions,we p
155、lan to gain market shares and generate long-term competitive and attractive margins.ESG,Decarbonization and IntegrityESG(Environmental,Social,Governance)refers to the basic principles of doing business sustainably.The Groups stakeholders(e.g.,inves-tors,employees,customers and non-profit organizatio
156、ns)have high expectations of the Companys ESG performance,including in areas such as decarbonization and integrity,and also of its conduct as an employer and as part of society.The Groups ESG performance there-fore directly affects its market capitalization,cost of capital and investing activities.W
157、e aim for a top position relative to our com-petitors in sustainability ratings.We are committed to the Paris Climate Agreement and align our own activities with the 1.5 C goal.We aim to achieve net carbon neutrality by 2050.By 2030,we have also set ourselves the target of reducing CO2 emissions fro
158、m passenger cars and light commercial vehicles over the total life cycle by 30%compared with 2018.As part of this effort,we are look-ing for ways to increase the proportion of recyclable materials in our SSP-based vehicles.We also wish to become the benchmark for ethical corporate conduct.Volkswagen
159、 sees itself as an equal op-portunities employer.The intention is therefore for at least a fifth of Company management positions to be held by women by 2025,and for at least a quarter to be held by international managers.Business Model 2.0The Business Model 2.0 base initiative is developing a Group-
160、wide portfolio of services,the purpose of which is to create a seamless and innovative product experience to connect brands,customers,dealerships,our partners and whole markets.The aim is for the key technologies needed for this to be integrated into a majority of theplatform-based vehicles by 2030.
161、Using connected vehicles,the Groups brands are to be able in the future to remain in contact with their customers throughout the entire vehicle life cycle and thus to offer them services and functions for their individual needs.This will allow us to build a competitive,data-driven service portfolio
162、that also maintains our leading position in the automotive market in future.North America(NAR)regionFor the Volkswagen Group,North America,and particularly the United States,is the region with the greatest growth potential,espe-cially where e-mobility is concerned.We intend North America to become o
163、ur third core region alongside Europe and China by 2030.Our aim there is to achieve a total market share for the Volkswagen Group of 10%.We aspire to expand our presence in the region with strong brands and prepare ourselves for the future with market-specific products.We also wish to participate to
164、 a disproportionately high extent in the growth of the increasingly electrified markets in the USA and Canada.We will therefore substantially expand our range of all-electric models across the Group and develop models specifically for these markets.The proportion of battery-electric vehicles in our
165、sales in the USA and Canada is to increase to 55%by 2030.In addi-tion,we wish to maximize the potential for synergies in the region and build significantly more expertise,industrial capacity and vertical value chains in the North America region.China RegionChina is of major strategic significance to
166、 the Volkswagen Group as its largest single market,and we expect it to continue growing in the future.This strategic base initiative therefore brings together all of the key measures needed to continue the success story of Volkswagen in China.These include a comprehensive program of measures with a
167、focus on cost,long-term technological competitiveness,localized development activities that are tailored to the market,and the further consolidation of our existing partnerships.Our aim is to achieve high market shares in the electric vehicle segment and establish ourselves as a leading provider.For
168、 vehicles with combustion engines,our aim is to maintain our share of the market,as these will also make a contribution to profit in the future if unit sales remain high.We are therefore continuing to accelerate our Group-wide localiza-tion strategy in China so as to offer our Chinese customers tail
169、or-made products,and we are using not only global platform technol-ogies(hardware and software),but are increasingly employing platform technologies that have been developed locally.In this way,we wish to stand our ground in the face of constantly growing competition in the new intelligent connected
170、 vehicle(ICV)segment.Group Steering ModelTo achieve the objectives of the Group strategy and thereby safe-guard the Volkswagen Groups long-term success,we are under-taking far-reaching optimization of our Group steering model.It is essential that we establish a consistently high level of mechanisms
171、that facilitate swift decision-making,the development and use of 16SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human Rightsplatform technologies and the exploitation of synergies
172、,and that we constantly enhance these.The updated Group Steering Model places the brand groups and technology platforms center stage in order to scale the latter across the entire Group product portfolio,taking account of synergies.A new strategy and product planning process that has been optimized
173、for efficiency is being developed on the basis of this approach.The package of measures for this initiative hones the definition of roles and responsibilities in the Group and improves transparency in this respect both inside and outside the Company.It also promotes the entrepreneurship of the indep
174、endent units and brands and at the same time strengthens collaboration across the Group.People&TransformationAs it becomes a global tech company,the Volkswagen Group will see the biggest transformation of its workforce in its corporate history.To ensure the Group remains competitive in the future,we
175、 need to attract top talent and support existing employees by providing ex-tensive training where required.Our aim is to retain staff for the long term.It is therefore fundamental that we address the changing needs of our employees and offer them an outstanding employee experience.To achieve our Gro
176、ups ambitious objectives,we must also create and promote an environment for productive teams,re-sulting in a strong,sustainable and socially responsible corporate culture that fosters a sense of belonging and loyalty to the Company.A further focus is on aligning the Company with society and the envi
177、ronment.Financing the TransformationThe transformation being driven by digitalization and electrifica-tion will require extensive investment.To meet this need for fi-nancing,the Financing the Transformation base initiative aims to leverage even more Group-wide synergies across all functional areas a
178、long the value chain,focusing on costs and efficiency.The Group has therefore set itself the objective of lasting improvements to its fixed-cost structure,plant productivity,procurement,distri-bution expenses and working capital management.2015 2025 targetOperating return on sales6.0%8 to 9%Research
179、 and development ratio(R&D ratio)in the Automotive Division7.4%6%Ratio of capex to sales revenue in the Automotive Division6.9%5%Net cash flow in the Auto-motive Division8,887million 10billion Payout rationegative 30%Net liquidity in the Automo-tive Division24,522million 11.5%10%of Group sales reven
180、ueReturn on investment(ROI)in the Automotive Division0.2%15%1 The content of the strategic financial KPI is currently being revised.2 2015 before special items.STRATEGIC KEY FINANCIAL PERFORMANCE INDICATORS:17SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular
181、 Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsESG PERFORMANCE MANAGEMENT AND MATERIALITY ANALYSISMATERIALITY ANALYSIS LINKED WITH GROUP STRATEGY AND ESG PERFORMANCEThe materiality analysis is used to identify and evaluate the most important sustainability iss
182、ues for the Group.Based on the business model and its impact on society,the focus is on key ESG requirements,stakeholder expectations,and compliance with legal requirements and internationally established reporting standards.The Group conducted another materiality analysis in the reporting period.In
183、 reviewing a large number of potentially material issues,we considered both external and internal company perspectives.For the external side,80 topic clusters were derived from 700 topics and weighted along 330 criteria.This was based on:Results of dialog processes with the Sustainability Council an
184、d the Stakeholder Panel Reputation surveys Requirements of relevant international and national frameworks such as the EU Taxonomy,the German Commercial Code (Handelsgesetzbuch HGB),the UN Global Compact,the Sustain-ability Accounting Standards Board(SASB),the Global Reporting Initiative(GRI)or the S
185、ustainable Development Goals(SDGs)Key ESG ratings KI-supported trend analyses and management studiesFor the internal dimension,we primarily took account of all Group policies on sustainability management,materiality analyses of the Group brands and country-specific risk analyses of Volkswagen Group
186、production sites.The focus issues prioritized for the NEW AUTO Group strategy were confirmed with this years materiality analysis and classified as material by the Group Sustainability Steering Committee.The five nonfinancial matters arising from the German CSR Directive Implementation Act(CSR-Richt
187、linie-Umsetzungsgesetz CSR-RUG)are covered by the six focus issues.In addition,these six focus areas,in turn,cover a significant part of the assessment criteria of ESG ratings:Decarbonization Circular economy People in the transformation Diversity Integrity Supply chain and human rightsEach focus is
188、sue is to the extent currently possible linked with clear targets and milestones and with KPIs and packages of measures.ESG-related KPIs such as the decarbonization index(DCI)and the diversity index are already reflected in the remuneration of members of the Board of Management.Corporate GovernanceT
189、he topics classified as material also provide the foundation for the structure of this sustainability report and serve as the basis for managing the Volkswagen Groups sustainability program.ACTION PROGRAM FOR OPTIMIZED ESG PERFORMANCEThe NEW AUTO Group strategy focuses not only on technological and
190、product-related initiatives but also on improving the Groups ESG performance.This is because this directly and indirectly im-pacts Volkswagens market capitalization,costs of capital and at-tractiveness to investors.This is partly due to increasing density of regulations on sustainability as a result
191、 of frameworks such as the EU Taxonomy or regulations on the responsible shaping of supply chains.Moreover,capital market players such as institutional in-vestors not only expect transparency on the Groups sustainability performance but also an effectively implemented strategy that leads to continuo
192、us improvement in sustainability performance.A significant share of globally managed assets is already oriented toward ESG criteria.In the past reporting year,we significantly expanded our action program that targets improvement of our results in ESG ratings by 2025.It consists of four pillars:1.ESG
193、 performance management:We are closing existing gaps inESG performance and creating additional transparency by dis-closing our measures and key performance indicators.2.ESG engagement:We are intensifying our communication on ESG and sustainability in the capital market by communicating our messages
194、and results in roadshows,investor conferences and other formats.In this way,we explain our current performance and at the same time benefit from the learning effects and knowledge transfer that this dialog makes Investor Relations Financial Calendar GRI 3-1,3-218SUSTAINABILIT Y IN THE GROUPS DNA Tab
195、le of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human Rights3.Management of controversies:We aim to reduce the negative impact of legal or media controversies regarding the Volkswagen Group on our rating results.We have
196、 developed a controversy management process for this,where a controversy forum was established that identifies existing and possible controversies and derives measures to be taken.Our own web-based information on existing ESG controversies around Volkswagen makes an additional contribution to clarif
197、ication and Investor Relations Corporate Governance ESG Controversies4.Internal ESG data infrastructure:We are working on establishing comprehensive ESG data reporting tools for better data-supported infrastructure and will create comprehensive and custom ESG information offerings for relevant stake
198、holders in the future.Compared with prior years,the Groups score in the ESG rating from Sustainalytics substantially improved from 29.6 to 26.1.In fiscal year 2022,Volkswagen continued to have a score of A in the CDP climate rating and had an A rating in the Water Disclosure Project(WDP).MAKING THE
199、SOCIAL AND ENVIRONMENTAL IMPACT OF OUR ACTIONS MEASURABLEThe Volkswagen Group wants to measure the impact of its actions even more comprehensively in quantitative terms in the future and,if possible and reasonable,to monetize this.This involves assessing positive and negative effects on,among other
200、things,the environ-mental and social systems for the purpose of the inside-out per-spective.This impact relates to the Groups entire business,includ-ing its supply chain and its products and services.This means we are not only taking on board impetus from regulatory developments as it emanates from
201、the EU CSR Directive or the EU Green Bond Standard,but also impetus from international initiatives and organi-zations such as the Organisation for Economic Co-operation and Development(OECD)and the World Business Council for Sustainable Development(WBCSD).At the same time,like other global companies
202、,we are endeavoring to make even greater use of an impact assess-ment in our decision-making and management processes,risk management,reporting and communication with our stakeholders.Impact assessments already represent tried and tested tools at Volkswagen,particularly for the assessment of mobilit
203、y concepts.Here,new options are continuously investigated for their sustain-ability impact and readjusted as necessary.Sustainability Impact of New Mobility OptionsWe are currently developing a Group-wide concept for measuring impact with the name of“Impact ValuationVolkswagen Group.”The concept is
204、based on the successful implementation of two pilot projects at site and brand level.In order to advance the topic of impact measurement and develop comparable concepts,the Volkswagen Group is a member of the Value Balancing Alliance(VBA)together with the Porsche brand.This initiative champions the
205、development of uniform assessment standards for impact measurement and the financial balancing of sustainability impacts on an international level across sectors.In ad-dition to the Volkswagen Group,the VBAs members include numer-ous global companies,such as Bosch,BASF,BMW,Michelin and SAP.2020 2021
206、 2022CCC B B41.7(severe risk)29.6(medium risk)26.1(medium risk)C C C ESG rating scales MSCI:CCCAAA;Sustainalytics:1000;ISS:D A+19SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human
207、 RightsSUSTAINABILITY MANAGEMENTSTRUCTURE AND TASKS OF THE SUSTAINABILITY ORGANIZATIONSustainability means maintaining intact environmental,social and economic systems with long-term viability at global,regional and local level.The Volkswagen Group can influence these systems in various ways and act
208、ively takes responsibility to make a contri-bution to preserving their sustainability.An extensive sustainability management system was set up for this purpose.The related structures,processes and responsibilities are codified in a specific Group policy.We view sustainability management as a continu
209、-ous improvement process.The Chairman of the Board of Management of Volkswagen AG has cross-functional overall responsibility for sustainability.Additional responsibility is taken by members of the Board of Management with their responsibility for specific management systems relating to sustainabili
210、ty and by the Group Steering Committee for Sustain-ability.The members of this steering committee include managers from central Board of Management business areas and Group func-tions,representatives of the brands and the Group Works Council.The steering committee defines concrete strategic targets
211、and pro-grams,sets out measures for uniform cross-business-area,cross-brand and cross-regional development of sustainability manage-ment and makes decisions on sustainability-related basic issues and positions in the Volkswagen Group.In addition,topic-specific questions on sustainability are address
212、ed in Group initiative 6 of the NEW AUTO Group strategy.Board of Manage-ment levelManagement of cross-functional topicsManagement of function-specific topicsGroup function sustainability managersDiscussion of core sustainability processesDiscussion of function-specific topicsGroup levelBrand levelRe
213、gion levelSustainability Councilcommunica-tion/adviceOrganizational structureStructure of bodiesBoard of Manage-mentK-VSChairman of the Board of Manage-ment(CEO)Members of the Board of ManagementGroupfunctionsGroup SustainabilityGroup strategy and Office of the Corporate SecretaryGroup pro-ductionGr
214、oup HRBrand functionsPro-ductionHRBrand Sustainability Manager(Audi,Porsche.)GSC for SustainabilityBrand BMBrand bodyTop body of GroupRegion/siteK-VS=Group Board of Management meetingGSC=Group Steering CommitteeBrand BM=Brand board of management meetingSUSTAINABILITY EMBEDDED IN THE VOLKSWAGEN GROUP
215、GRI 2-9,2-12,2-1420SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsThe Groups sustainability function(Group Sustainability)coordi-nates all sustainability-related activit
216、ies and the Group-wide and cross-functional network for sustainability.Communication with Group functions,brands and companies is structured via defined core processes.They serve to create transparency on external re-quirements and translate these into corporate action.The core pro-cesses include th
217、e sustainability strategy and materiality analysis,stakeholder management,ESG ratings and rankings,sustainability policies and sustainability reporting.Group Sustainability is allo-cated to Group strategy and the Office of the Corporate Secretary in order to ensure that sustainability is closely lin
218、ked with the strategic corporate goals and the core business.It is also responsible for the office of the Group Steering Committee for Sustainability.In addition to the Group Steering Committee for Sustainability,regular discussions within the Group-wide sustainability network take place through var
219、ious formats.One example of this is the Group Sustainability Summit.In 2022,this was held in Berlin,and its focus areas were ESG,mobility of the future,community en-gagement and business models.The participants included manag-ers from the Group and from the brands and regions.The Sustain-ability Man
220、ager Core Team is another central communication platform,where representatives from the Group and the brands regularly address current sustainability issues.In addition,there are specific steering models for individual topics,such as ESG performance management.At brand level,the brand sustainability
221、 managers carry out the cross-functional coordination of sustainability topics,develop the sustainability strategy,are responsible for content and reporting on sustainability topics within the brand,represent the brand on sustainability topics externally and coordinate with Group Sustainability.THE
222、SUSTAINABILITY COMMITTEE AS AN INDEPENDENT DRIVING FORCE AND PARTNERAt Group level,the Sustainability Council has a prominent position.The advisory committee created in 2016 supports the Volkswagen Group with important strategic sustainability topics and is made up of internationally renowned expert
223、s from the academic world,politics and society.The Council establishes its own working meth-ods and areas of focus independently,has extensive rights for the purposes of exchanging information,consultation and initiating action,and consults regularly with the Board of Management,top management and t
224、he employee representatives.In 2022,the dialog between the Group and the Sustainability Council focused on comprehensively enshrining sustainability topics in the NEW AUTO Group strategy,the future alignment of mobility solu-tions in this strategy and the impact of the war in Ukraine on the Volkswag
225、en Group.In addition,in connection with various projects the Council dealt with the following topics,among others:Dealing with the German Supply Chain Due Diligence Act(Lieferketten-sorgfaltspflichtengesetz LkSG),digital technologies as enablers for sustainability,the Zero Impact Factory concept,wor
226、kforce trans-formation,training staff and decarbonization of the Group.Further information on the letters of recommendation to the Group Board of Management and the results of the Council projects are provided on the Sustainability Council web Sustainability Strategy,Policy&Engagement Engagement Sus
227、tainability CouncilUN GLOBAL COMPACTSince 2021,after a five-year hiatus,the Volkswagen Group has offi-cially been reinstated as a participant of the UN Global Compact,the worlds largest corporate sustainability initiative,and participates in national and international initiatives.AUDI AG has also be
228、en reinstated as a participant in the UN Global Compact.Porsche AG and Traton SE have been new participants of the UN Global Compact since 2022.In addition,the brands MAN Truck&Bus and Scania are also signatories of the UN Global Compact.For investors and asset managers in the capital market,members
229、hip of the UN Global Compact is an important criterion for investability in Volkswagen AG shares and bonds.Sustainability-oriented funds have grown significantly in the last few years and have become in-dispensable as stakeholders.The Volkswagen Group and its brands report on their progress in imple
230、menting the Ten Principles of the UN Global Compact and their activities for promoting sustainable development in the annual Communication on Progress,which can be viewed on the UN Global Compact website.United Nations Global CompactGREEN FINANCE FRAMEWORK FOR INVESTMENTS IN SUSTAINABILITYMassive in
231、vestment is needed to transform the Volkswagen Group.At the same time,investors are looking for sustainable investment options.Volkswagen AG has had a Green Finance Framework for various forms of financing such as green bonds since 2020.This document defines the framework for financial instruments g
232、eared to sustainability.In the reporting year,we refinanced fiscal year 2021 capital expenditure aligned with the EU Taxonomy on the basis of the Green Finance Framework newly published in 2022 by issuing 2.5 billion in green bonds.The Volkswagen Group has thus issued a total of 6.0 billion in green
233、 bonds to refinance capital expendi-ture for BEVs since 2020.In 2022,the Volkswagen Group published a new Green Finance Framework that was further developed in particu-lar through the integration of the EU Taxonomy.As was the case in the previous Green Finance Framework,the Volkswagen Group continue
234、s to focus on the exclusive inclusion of all-electric vehicle models(BEVs)in sustainable financing.Under the new Green Finance Frame-work,the only investments that will be considered are investments for BEVs produced by the Volkswagen Group that are aligned with the EU Taxonomy.This systematically l
235、inks our corporate objective of net carbon neutrality by 2050 with our financing strategy.The funds raised under the Green Finance Framework are specifically used on environmentally friendly projects such as e-mobility.This both fulfills the clean transportation category of the Green Bond Princi-ple
236、s of the International Capital Market Association(ICMA)and is in line with the goals of the United Nations and the European Union for sustainable development.Sustainalytics has confirmed again for the new Green Finance Framework that the framework complies with the ICMAs Green Bond Principles and th
237、e Green Loan Principles of the Loan Market Association(LMA).Volkswagen published the second Green Finance Report,which con-tains the Allocation Report and the Impact Report,during the report-ing year.More information is available on our corporate Investor Relations Fixed Income&Ratings Green Finance
238、21SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsSUSTAINABILITY IMPACT OF NEW MOBILITY OPTIONSMAKING MOBILITY SOLUTIONS MEASURABLY MORE SUSTAINABLE Our global society to
239、day faces the major challenge of finding the right balance when shaping mobility.The pressures of noise,traffic jams,accidents,traffic areas or air quality need to be reduced in many areas.At the same time,many people do not have suffi-cient,affordable and accessible transportation,limiting their pa
240、r-ticipation in society.This is not only the case in economically weaker regions but also in rural areas and suburbs.The Volkswagen Group offers both innovative vehicle technologies and forward-looking mobility services.Through these,the Group wants not only to meet its customers requirements but al
241、so to help to solve local environmental and traffic problems in urban and rural areas and to protect the climate worldwide.Global cooperation with partners outside the Group plays an important role.We are guided here by the“Mobility for Generations to Come”vision that our NEW AUTO Group strategy des
242、cribes.NEW AUTO Group StrategyCompletion of the acquisition of Europcar Mobility Group(EMG)in July 2022 by the consortium company Green Mobility Holding S.A.(GMH)with the partners Attestor Limited and Pon Holdings B.V.represents another important milestone for Volkswagen in its NEW AUTO strategy.EMG
243、 will become the cornerstone of a new platform that will cover customers mobility needs,from using a vehicle for a few hours to subscription for multiple months.Our expectation is that most people will still prefer individual mobility by 2030,but it will be more about using and less about owning veh
244、icles.SIMULATION PLATFORM FOR MOBILITY CREATES TRANSPARENCY AND ENABLES IMPROVEMENTSIt has been shown many times that new mobility concepts in par-ticular increase the range of options in urban areas but are not au-tomatically sustainable.Creating a basis of assessment is therefore important so that
245、 mobility solutions can be assessed for their sus-tainability impact and also influenced.This is because determining the right framework conditions and regulations is of decisive im-portance to make substantial contributions to sustainable cities and tap into business models for the Group.Political
246、players and cities are also increasingly requiring early proof that mobility solutions actually have sustainability effects,and operating licenses may be conditional on this proof.Against this background,the mobility simulation framework is being continuously developed as part of the Volkswagen Grou
247、ps sustainability management.Its focus is on impact assessments that digitally replicate mobility on the basis of real data.Technolo-gies such as data analytics and machine learning help us to virtually pilot certain services in advance on a large scale in what is known as a digital twin.This means
248、that possible improvements and also any undesirable side effects can be discovered early and taken into account when developing mobility solutions.We endeavor to regularly communicate with stakeholders on these and other issues and continuously analyze trends so that we can update targets and criter
249、ia as needed.The methods and models for mobility simulation are also being continuously developed in collaboration with universities.In addition to having a practical ap-plication,our results feed back into the academic world through publications and dialogs.Moreover,we use real data and empirical f
250、igures from mobility providers to continue to improve this.For example,MOIA,a young mobility company in the Volkswagen Group,has developed on-demand ride pooling services and created and published an extensive and scientifically independent long-term study on the impact of(autonomous)ride pooling on
251、 the Hamburg traffic system as part of accompanying research in Hamburg.We use various key figures that are scientifically recognized and also reflect the requirements of various players to evaluate mobility services.For example,short and reliable journey times are impor-tant for customers,while acc
252、ess for citizens and the reduction of CO2 emissions is important for society;towns and cities for their part want traffic to occupy as little space as possible and to improve air quality,while good utilization of its services is essential to the mobility provider.IMPORTANCE OF OVERARCHING IMPACT ANA
253、LYSES Measures for increasing efficiency and better capacity utilization continue to be important steps on the path to sustainable mobility.In the case of ride pooling services such as MOIA,the transportation needs of various customers must be linked as optimally as possible in order to balance deto
254、urs and waiting times with capacity.Model-ing and impact assessments provide valuable services here in order to represent the high level of complexity.It should be noted that these analyses always take an overarching view of traffic.This is be-cause users take other options into account when making
255、decisions.Central to the sustainability assessment is what users of new services for example,ride pooling,e-scooters or car sharing would otherwise use or have previously used.22SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transfor
256、mation|Diversity|Integrity|Supply Chain and Human RightsFor example,there is a much debated question about whether ride pooling might ever overtake public transportation.Initial fears are,however,proving wrong.MOIAs accompanying research instead proved the opposite:The research showed that the mobil
257、ity net-work and especially public transportation would benefit from the expansion of ride pooling.MOIA has maintained a close partner-ship in Hamburg with the transportation company Hamburger Hochbahn since its service started in 2019.One example of this was the use of MOIA vehicles as a building b
258、lock in the rail replacement service when fire damaged a suburban railroad bridge in August 2022.This strengthened the traffic systems resilience to disruptions.ANALYSIS RESULTS SHOW POTENTIAL OF OPTIMIZED VEHICLE USEThe impact assessments provide important pointers to which levers can be used to im
259、prove the sustainability impact of new mobility solutions.This particularly applies with regard to reducing CO2 emissions and better use of scarce space in towns and cities.In addi-tion to ride pooling,the focus is also on more efficient use of vehi-cles.In particular,privately used cars are mostly
260、underutilized.On average,they are only used for around an hour per day and occupy parking spaces in private or public areas for the rest of the time,which in turn takes up valuable urban space.The life cycle of the vehicle is long,which leads to less environmentally friendly,outdat-ed technologies b
261、eing used for too long on the roads.By contrast,electric robotaxis could operate around the clock in the future.Car sharing can increase the use of cars to several hours per day by means of multiple users using a vehicle over the course of a day.Both solutions lead to more efficient mobility with fe
262、wer cars and less need for parking space in towns and cities.UNDERSTANDING URBAN MOBILITY AND DEVELOPING IT SUSTAINABLY TOGETHERIn general,shaping urban mobility plays a key role for the Volkswagen Group because many mobility options are primarily available in cities.According to the UNs estimates,a
263、lmost 70%ofthe global population will live in cities by 2050.The traffic-induced problems are the most urgent in urban centers and their commuter belts,and the potential for change is also the greatest here.As a member of the World Business Council for Sustain-able Development(WBCSD)for many years,w
264、e seek dialog with other companies contributing to the transformation and with stake-holders in order to identify our own scope for action.For example,the Volkswagen Group continued its collaboration on the WBSCDs Transforming Urban Mobility(TUM)project in 2022.Focal topics included commuter traffic
265、 and digitalization.The research topics included the ways in which data and new technologies can positively impact sustainable development.ASTYPALEA:TRANSFORMATION TO A SMART AND GREEN ISLANDAstypalea is a living lab for smart and sustainable mobility solu-tions in Europe.The Greek island is located
266、 in the Aegean Sea,has 1,300 citizens and is similar in size to the German island of Sylt.In addition,36,000 tourists on average visit the island every year.Originally,about 1,500 internal combustion engine vehicles and one bus line with two diesel buses were providing mobility on the island.Astypal
267、ea shall now be transformed into a smart and green island.To this end,the Volkswagen Group has joined forces with the Hellenic Republic.Traffic on Astypalea will be gradually con-verted to e-mobility.This includes the public transport system,local authority vehicles(e.g.,police)as well as companies
268、and the private vehicles of the inhabitants.At the same time,an extensive network of private and public charging stations will be set up.Fully electric vehicle sharing and ridesharing services have been furthermore newly launched on the island.Unlike the previous bus system,the new smart mobility se
269、rvices will operate the whole year and they will cover all the hotspots on the island.E-cars,e-scooters and e-bikes make up the vehicle sharing service.These services shall become an alternative to privately owned vehicles and perspectively con-tribute to a reduction of the vehicle fleet size by aro
270、und a third to approximately 1,000.Around 25,000 trips and 167,000 km in total have been carried out with the ridesharing service ASTYBUS alone in the first seven months since its implementation on the island in June 2022.The energy system of Astypalea will also be gradually converted to solar and w
271、ind energy under the leadership of the Hellenic Republic.23SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsSTAKEHOLDER MANAGEMENTSTRATEGIC STAKEHOLDER MANAGEMENTOur stake
272、holders are individuals,groups or organizations who have a material influence on or are materially influenced by the way in which the Group reaches its corporate decisions and the implica-GRI 2-29For us,stakeholder management means interacting with the Com-panys key stakeholder groups systematically
273、 and continuously as part of the Group initiative with the focus topics of ESG performance,decarbonization and integrity,which is part of the NEW AUTO Group strategy.Our aim is open,constructive and also critical communica-tion with the stakeholder groups listed in the diagram about their requiremen
274、ts and expectations of us,as well as central issues of our Group strategy and its implementation.Volkswagen GroupCUSTOMERSWORKS COUNCILSUSTAIN-ABILITY COUNCILSUPERVISORY BOARDEMPLOYEESInvestors and analystsAcademics and expertsBusiness partners and suppliersNGOs/non-proft organizationsResidents and
275、local authoritiesMediaCompetitors123Policymakers and associationsVOLKSWAGEN GROUP STAKEHOLDERSOur brands and regions have their own stakeholder management strategies.The Groups task is to bring together and orchestrate these activities in an integrated framework.This framework includes:Stakeholder e
276、ngagement on a Group level with specific commit-tees,formats and a focus on stakeholders relevant across the Group Advising and coordinating the brands and regions on the imple-mentation of their stakeholder engagement activities Carrying out regular stakeholder analyses and stakeholder surveys24SUS
277、TAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human Rightstions of those decisions.Our employees and customers are at the center of our stakeholder network.In addition,we have identif
278、ied eight further groups.Continuous communication between internal and external stakeholder groups is important to us.For this reason,the Groups supervisory and advisory bodies i.e.,the Supervisory Board,the Works Council and the Sustainability Council act as a special interface between internal and
279、 external stakeholders.Stakeholder management is one of the core processes of sustain-ability management in the Group.Tasks,responsibilities and orga-nization are set out in the Group policy on sustainability management.As an international business,our business activities impact the lives of a large
280、 number of different people.Appropriately aligned stakeholder management is essential so as to determine the sustainability strategys material areas for action and become aware of stakeholders expectations of us at an early stage.It also involves continuously in-forming and regularly communicating w
281、ith all business areas.This communication not only helps us to identify our stakeholders re-quirements,it also plays a key role in achieving corporate goals and complying with reporting standards and legal requirements.The transformation of the Volkswagen Group from a vehicle man-ufacturer to a worl
282、d-leading,software-driven mobility provider will also change and expand the range of relevant stakeholder groups as a result of new areas of expertise such as autonomous driving,battery technology,charging infrastructure and energy services.Here,too,we aspire to involve all our stakeholders in this
283、transfor-mation process and actively use their feedback for the sustainable development of our Group and society.Our aim is to position our Group robustly for the future amid ever faster and more strongly changing economic,environmental and social framework condi-tions and sustainably improve its ac
284、ceptance and reputation.The Volkswagen Group is a player in numerous networks of experts and decision-makers who have a significant influence on our business and the agenda in the sociopolitical environment.An overview of the Groups most important memberships is available Sustainability Strategy,Pol
285、icy&Engagement Engagement MembershipsREPUTATION KPI MEASURES STAKEHOLDER TRUSTThe reputation key performance indicator(KPI)makes a decisive contribution to anchoring stakeholder management in the sustain-ability strategy.The indicator reflects the degree to which external stakeholders trust the Volk
286、swagen Group.Since 2017,we have asked annually for an assessment of the Volkswagen Groups reputation.Eliciting this KPI enables a holistic view of attitudes and opinions on the Group and allows us to identify whether and how evaluations change over the course of time.The Audi,Porsche and Volkswagen
287、Passenger Cars brands are consistently represented in the survey.The survey data are based on personal telephone interviews conducted with representatives of importance to the Volkswagen Group from the fields of politics and associations,media,academia,NGOs,investors and analysts and also business p
288、artners in the three markets(Germany,China and the USA).Fundamentally,representatives of the highest possible decision-making level are surveyed in all the stakeholder groups.In Germany,the 2022 reputation KPI for the Volkswagen Group is 78%.The Group obtained the following results in 2022:78%of sta
289、ke-holders in Germany stated that they trust the Volkswagen Group(2021:80%).In China the proportion was 98%(2021:97%)and in the USA it was 70%(2021:67%).In Germany,the reputation KPI thus decreased slightly compared with 2021,which,however,is in line with the trend in results in the overall competit
290、ive environ-ment in Germany.In China and the USA,the reputation KPI contin-ued to steadily improve.STAKEHOLDER PANEL AS A CRITICAL COMPANIONIn addition to the Sustainability Council,Volkswagen Group has established a Stakeholder Panel,which has overseen the Group sus-tainability activities for over
291、20 years.The whole panel(Germany/Austria/Switzerland,EU)currently comprises more than 200 institu-tions and organizations.The pandemic meant that we had to inter-rupt communication with our stakeholders in 2020 and 2021.In the reporting year,we were able to resume it on a smaller scale.The focus was
292、 on the topics of decarbonization and sustainability in the sup-ply chain.Accompanied by members of the Sustainability Council,an open and controversial discussion was held in April with NGOs and was also held in September as part of a larger stakeholder dialog.The key drivers of the discussion were
293、 the speed of electrification and the challenges of controlling supply chains.The plan for 2023 is to intensify communication with our stakeholders,and to extend and deepen its content.GRI 2-28,2-2925SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups DNA|Decarbonization|Circular Economy|
294、People in the Transformation|Diversity|Integrity|Supply Chain and Human RightsENVIRONMENTAL COMPLIANCE MANAGEMENTCOMMITMENT TO AN UNDAMAGED ENVIRONMENTAs one of the largest automotive manufacturers in the world,we have to observe extensive legal requirements for all sites and mar-kets and aim to liv
295、e up to our internal and external stakeholders high expectations of the effectiveness of environmental compliance management including,and especially following,the diesel issue.We also want to live up to our voluntary commitments on envi-ronmental matters and compliant behavior.The environmental com
296、pliance management system is therefore in particular a risk provision against breaches of regulations that may be associated with damage to the environment,our Group and society.Our envi-ronmental compliance management system helps us to continu-ously improve our environmental performance and reduce
297、 our environmental impact.One of the focuses of the NEW AUTO Group strategy is the Groups ESG performance.In environmental protection,decarbonization and circular economy are the focus issues.These are also core ele-ments of the“goTOzero”Group environmental mission statement.At the same time,the env
298、ironmental compatibility of our products,services and processes is one of our Group Essentials.With elec-tric drives,digital connectivity and autonomous driving,we want to make the car cleaner,more intelligent,quieter and safer.We use our innovative power in order to reduce our environmental foot-pr
299、int over the entire life cycle of our products and mobility solu-tions.Our innovations are at the same time intended to help our customers to be more environmentally friendly.THE“GOTOZERO”MISSION STATEMENT:MINIMIZATION OF NEGATIVE EFFECTS ON THE ENVIRONMENTThe“goTOzero”environmental mission statemen
300、t serves as the framework for all the Volkswagen Groups environmental activities.This mission statement commits us to the vision of a carbon-neutral way of doing business with minimal environmental impact that we want to achieve by 2050 at the latest.We want to be a world-leading provider of sustain
301、able mobility and a role model for environmen-tal protection.To this end,we are systematically and verifiably reducing the environmental impact along the life cycle of our prod-ucts and services.Compliance with environmental regulations,standards and voluntary commitments is a basic prerequisite of
302、our actions.The Group mission statement combines all strategic and compliance-related aspects of the Groups environmental activities and forms the basis for linking targets,key performance indicators,programs and measures.The mission statement is continuously re-viewed and its objectives adjusted to
303、 new requirements and changes in conditions.The mission statement,which has been revised in the current reporting year,puts the Groups focus on the four fields for action presented in the diagram below and their underlying objectives.26SUSTAINABILIT Y IN THE GROUPS DNA Table of Contents The Groups D
304、NA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human Rights“GOTOZERO”ENVIRONMENTAL MISSION STATEMENT:ACTION AREASProtecting THE CLIMATEWe are committed to the Paris Climate Agreement and aim for an ambition level of 1.5 degrees celsius.We system
305、atically focus on the electrification of our products,decarbonization of our entire value chain and expansion of renewable energy generation to supply our sites and customers.We want to be a net-carbon-neutral company by 2050 at the latest.ConservingRESOURCESWe reduce the volumes of prima-ry raw mat
306、erials needed by using recycled material and renewable raw materials.We maximize our energy and resource efficiency and establish closed loops for materials and water.Together with our business part-ners we cut down on the amount of natural resources utilized throughout our supply chain.ConservingEC
307、OSYSTEMSWe reduce harmful emissions in air,soil and water.We mitigate the impact of our business operations on biodiver-sity and ecosystem performance and support projects to conserve these.EnsuringENVIRONMENTAL COMPLIANCEWhere integrity and compliance are concerned,we aim to be a role model for a m
308、odern,trans-parent,successful enterprise.We use effective environmental compliance management systems to identify and manage environ-mental risks and opportunities throughout the lifetime of our mobility solutions.We conduct open dialog with our stakeholders and incorporate their expectations into o
309、ur decisions.MANAGEMENT AND COMPLIANCE IN MATTERS OF THE ENVIRONMENTThe Volkswagen Group has created an environmental policy that calls on managers and the workforce to implement environmental goals with joint responsibility.In its environmental policy,the Group commits to reducing the environmental
310、 impacts across the entire life cycle of the processes,products and services,to meet binding obligations and continuously improve its environmental compliance management system and environmental performance.We have also implemented a Group policy for the environmental compliance management system de
311、scribing requirements,tasks and responsibilities with regard to the environment and compliance.This policy provides the framework for implementing environmental compliance management systems across all phases of the business and the entire life cycle of vehicles in our brands and companies.The polic
312、y defines the minimum requirements for operating orga-nizations regarding implementing an environmental compliance management system and gives them the flexibility to implement this in a manner in line with their business activities.In general,all production and development sites in the Group are re
313、quired to have their environmental management systems certified to ISO 14001 or validated to the Eco-Management and Audit Scheme(EMAS).Good progress has been made as regards external certification.In 2022,105 of our 119 sites,including central devel-opment units,have ISO 14001 certification or EMAS
314、validation.In terms of employee numbers,this equates to more than 98%.In addition,61 of the production sites have certified their energy management systems in accordance with ISO50001,meaning 80%of the total energy consumption of the Groups production sites is currently covered by a certified energy
315、 management system.SEAT development is also certified in accordance with ISO 14006.These standards do not,however,answer the question of how to avoid misconduct and how to respond appropriately to it.The Volkswagen Group has therefore expanded the established environ-mental management systems to inc
316、lude important compliance aspects.The intention of our environmental compliance manage-ment systems is to ensure that environmental aspects and obliga-tions are recognized and appropriately taken into account in our business operations.We consider disregard of environmental obli-gations,fraud or mis
317、conduct to be serious compliance breaches and prosecute these.To what extent our actions conform to the re-quirements of our environmental policy and other environment-related Group specifications is evaluated annually and reported to the Group Board of Management,to the respective boards of manage-
318、ment of the brands and to the managing directors of the companies.The Group Board of Management is the highest internal decision-making level for environmental matters.Both the Volkswagen AG Board of Management and the boards of management of the brands take account not just of economic,but also soc
319、ial and environ-mental aspects when making relevant business decisions.The Group-wide management of environmental protection,including implementing the resource-efficiency programs and monitoring target achievement,is the responsibility of the Group Steering Com-mittee for the Environment and Energy
320、.It is the highest environ-mental committee in the Volkswagen Group and is responsible for reporting to the Group Board of Management or the environmen-tal officer in the Group Board of Management.The Group Steering Committee for Fleet Compliance manages important individual aspects for our products
321、 such as CO2 and exhaust emissions.The Volkswagen Group coordinates the activities of the brands,which in turn manage measures in the individual regions.The brands and companies are organizationally responsible for them-selves when it comes to environmental matters.They base their own environmental
322、protection activities on the targets,guidelines and principles that apply throughout the Group.In order to prove that we have achieved our targets,we disclose environmental key performance indicators annually and report transparently on the progress on the environmental performance by the Group and
323、the brands.Checking and Complying with LimitsIn internal combustion engines,we adhere to national and interna-tional legal norms and limits.For example,the Euro 6d-ISC-FCM emissions standard has been obligatory for new registrations in the European Union since January 1,2021.In addition to the use o
324、f the Worldwide Harmonized Light Vehicles Test Procedure(WLTP),it also requires measurement in accordance with the RDE(=Real Driving Emissions)standard.Unlike with WLTP,emissions are not measured on a test bench they are measured in actual road traffic.27SUSTAINABILIT Y IN THE GROUPS DNA Table of Co
325、ntents The Groups DNA|Decarbonization|Circular Economy|People in the Transformation|Diversity|Integrity|Supply Chain and Human Rights1 The figures for December of the reporting year include an estimate.The estimated figures for the prior year were replaced in the current data collection.2 Scope:Pass
326、enger Cars and Light Commercial Vehicles division.Scope:Waste for disposal includes only production-specific volumes.REDUCTION OF THE ENVIRONMENTAL IMPACT OF PRODUCTION(UEP)In connection with the production strategy,we have defined the KPI of the reduction in environmental impact in production(UEP)a
327、nd underpinned it with targets for the Group and its brands.By 2025,the production-related environmental impact at all sites where we produce passenger cars and light commercial vehicles is to be re-duced by 45%per vehicle compared to 2010.The figures below show the development from 2010 to 2022(dat
328、a:11+1 months):1UEP:37.4%(2021:29.1%)In the reporting year,the five indicators of the UEP KPI were as follows:Energy requirements per vehicle:14.1%(2021:3.4%)CO2 emissions per vehicle:43.1%(2021:33.5%)Water consumption per vehicle:17.4%(2021:11.6%)Waste for disposal per vehicle:68.5%(2021:61.7%)VOC
329、emissions per vehicle:65.9%(2021:62.0%)In 2022,the production situation remained strained due to supply chain disruptions on global markets and a structural shortage of semiconductors.Compared with the previous year,production volume nevertheless increased.Successfully implemented measures to furthe
330、r reduce the adverse environmental impact of our factories as well as the more stable utilization of production sites capacity had a positive impact on the specific environmental KPIs per vehicle.The UEP improved significantly overall from 29.1%to 37.4%.LIFE CYCLE APPROACH DETERMINES ANALYSIS AND AC
331、TIONSWe consider the environmental impact we cause throughout the entire life cycle and at all stages of the value chain of our products.This includes the manufacturing process with the associated ex-traction of raw materials,the production of materials,the processes at our suppliers and our own pro
332、duction operations at our sites,the use phase with the resulting vehicle emissions and the necessary supply of charging current and fuel,and ultimately the recycling of the vehicle at the end of its life cycle.For detailed,ISO-standardized life cycle assessments(LCA),we use Spheras GaBi software wit
333、h the LCA database LEAD(Life Cycle Environmental Assessment Data-base),which is based on Spheras Professional Database.This en-ables the exchange of harmonized data throughout the Group and a standardized basis for calculating our environmental perfor-mance.In the next step,we identify hot spots in the life cycle and deduce suitable solutions to reduce the environmental impact.In line with our lif