Audi Sustainability Program

The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” and “Employees and Society.”

Operations and Integrity

Goal Measure Date
9 to 11 percent operating return on sales, from 2030 onwards > 11 percent[1] Implementation of the Audi Transformation Plan and the Audi Strategy Continuous development
Over 21 percent return on investment (ROI) as a strategic target[1] Implementation of the Audi Transformation Plan and the Audi Strategy Continuous development
6.0 to 7.0 percent research and development ratio as a strategic target[1] 
Implementation of the Audi Transformation Plan and the Audi Strategy Continuous development
4.0 to 5.0 percent ratio of capext[1] as a strategic target
Implementation of the Audi Transformation Plan and the Audi Strategy Continuous development
Self-finance the transformation to provider of sustainable, individual premium mobility Implementation of the Audi Transformation Plan and the Audi Strategy Continuous development
EUR 15 billion measure potential through the Audi Transformation Plan on the cost and revenue side 2018-2022 Programs already set up with Project Management Office (PMO) and work packages from the Board of Management. Flanked by ongoing monitoring and control. 2022[2]
Reinforce Group-wide compliance and integrity Implementation of the Group-wide compliance and integrity program Together4Integrity in all companies through 2025 2025
  Accompanying communication campaign Together4Integrity 2025
Global protection and responsible handling of personal data Binding measures in the Audi brand group, e.g. maintaining a procedure directory, internal reporting processes for data protection violations, ensuring the rights of parties concerned or establishing an appropriate risk management system Continuous development
Enhancement of an ESG management system Enhancement of processes, methods, structures and robust data systems 2023

[1] The strategic target corridor mentioned applies with immediate effect.

[2] The pandemic- and supply-related drop in volumes may result in slight delays.

Products and Services

Goal Measure Date
Reduce CO₂ emissions from the Audi EU new car fleet by 27 percent (base year 2012) Reduce consumption by using new technologies from the modular efficiency platform 2020 (completed)[3]
Reduce environmental impact across the entire life cycle compared with the predecessor model[4] Prepare product-based life cycle assessments for new vehicle models; validate and certify life cycle assessments; publish the data Continuous development
DCI: Reduction in the CO₂ footprint (life cycle) per vehicle model on a fleet basis by 30 percent by the year 2025 (as a contribution to the Group target) compared with the base year 2015 and by 40 percent by the year 2030 (base year 2018) – as a contribution to the Group target[5][6] Creation of DCI roadmap to describe the Audi contribution to achieving the Group’s DCI target 2025
Significantly reduce fuel consumption for every new vehicle compared with the predecessor model Switch 70 percent of new vehicles with combustion engines sold worldwide to mild hybridization or plug-in hybridization 2022
Expand the range of electric drive concepts Availability of at least one plug-in hybrid in every core segment from compact class or higher (Audi A3) 2023 (completed)[7]
  40 percent of new Audi vehicles feature an electric drive (availability of at least one battery electric vehicle for each core segment) 2025
Ensure availability of charging systems for domestic charging to coincide with the market introduction of the first fully electric series-production model from Audi Provide competitive charging lineup for electrified Audi models for domestic charging, including:

- Charging equipment

- Smart charging functions, e.g. photovoltaic-optimized charging

- Collaborations regarding home energy management systems (HEMS)

- Innovative technologies
2020 (completed)[8]
Ensure the availability of fast-charging infrastructure along the long-distance transport axes in Europe and the USA to promote long-distance capability of electric vehicles Infrastructure expansion in cooperation with partners in Europe and the USA, as an incentive for electric vehicles 2022[7]
Continuous expansion of charging infrastructure at Audi sites (worldwide)[9] Need-based continuous expansion of charging infrastructure around the AUDI AG plant with the aim of providing sufficient charging options for both internal and public use by employees and customers, for example. 2022
Global protection and responsible handling of personal data Fine-tune the organizational processes to validate privacy by design, privacy by default Continuous development
Long-term maintenance of competitiveness with reference to fuel cell drive concepts Various technology and market monitoring activities as well as safeguarding access to technology. The focus is on possible changes to framework conditions, e.g. future availability of renewable energies, etc.[10] Continuous development to safeguard access to technology
Ensuring technological compatibility of Audi products for use with synthetic fuels as a contribution to defossilizing the (existing) fleet[11] Appraisal and implementation of the necessary technical requirements for the use of synthetic fuels Continuous further development of technological compatibility (until vehicles with combustion engines are no longer sold)
  Integrate a CO₂ capturing plant (capturing CO₂ from the air) in a power-to-gas or power-to-liquid plant 2021[12]
Responsibility for the safety of customers and other road users Portfolio of predictive assistance and safety systems Continuous development
Enhance road safety Further development of technologies toward assisted/automated driving 2025
Develop an attractive mobility portfolio Development of new business models as part of the new focus on synergies within the Group[13] 2028

[3] Target reached in 2021.

[4] Will no longer apply in future, as included in DCI activities. This product-related environmental target will be revised as part of the further development of the DCI.

[5] The decarbonization index (DCI) quantifies the average emissions of CO2 and CO₂ equivalents over the entire life cycle of the Audi passenger car portfolio and is stated in metric tons of CO₂ per vehicle. It includes both direct and indirect CO₂ emissions at individual production sites (Scopes 1 and 2), as well as all other direct and indirect CO₂ emissions over the life cycle of the vehicles (Scope 3).

[6] Fleet of new cars sold in EU, USA and China Export.

[7] Measure fulfilled in 2021.

[8] The extension of the range of functions was launched on the market in 2021; completed.

[9] Strategic realignment due to changed requirements.

[10] Focus on developing battery-powered electric vehicles, cf. technical clarity.

[11] The production and marketing of synthetic fuels is no longer one of the company's strategic goals. In this regard, the measure concerning the “extension of strategic partnerships and cooperation agreements regarding renewable energies R&D” was also terminated. However, Audi continues to work with industry specialists and energy suppliers and to contribute its own technical expertise.

[12] Audi is no longer pursuing this goal or measure, because the Audi power-to-gas plant (Audi e-gas plant in Werlte) was sold to an external company in March 2021 and is now operated by that company. The development of carbon capture technology nevertheless continues to be advanced at Audi and within the Volkswagen Group as part of other projects together with partners.

[13] Given the strategic realignment within the Group on new mobility and business models, Audi is adapting its mobility portfolio with the new strategy.

Value Creation and Production

Goal Measure Date
Integrate sustainability into supplier relationships Training for all procurement employees in order to raise awareness of sustainability standards in supplier relationships Continuous development
  Training for suppliers in order to raise awareness of sustainability standards in the supply chain Continuous development
  Sustainability rating (S-Rating) as a mandatory criterion for awarding contracts Continuous development
  Involvement in industry standards and Group tools to ensure compliance with environment-related and social standards in the supply chain Continuous development
  Further development of the supply chain grievance mechanism; grievance channel is publicly accessible[14] Continuous
development
  Development of preventive measures relating to ESG risks in the supply chain Continuous
development
Integrate sustainability into the supply of raw materials Development of circular economy concepts for the supply chain Continuous
development[15]
  Raw Material Due Diligence Management: OECD-compliant raw materials management[16] Continuous development
  Adaptation of existing processes through successive implementation of human rights duty of care for critical raw materials in the supply chain Continuous development
Anchoring circular economy concepts in the company Creating concepts for the recycling of high-voltage batteries 2025
  Formulation of a KPI set for the internal management of circular economy concepts 2022
Integrate environmental measures into the supply chain Performance of CO₂ workshops with selected hotspot suppliers to identify measures with potential to reduce CO₂ emissions Continuous
development
  Rollout of the Aluminum Closed Loop in other plants 2025
  Anchoring the use of green electricity in the supply chain[17] Continuous
development
  Development of a “Responsible Water Stewardship Program” for the supply chain Continuous
development
Act4Impact Development and establishment of an “Audi Act4Impact Program” to make a positive impact together with the Audi partners Continuous
development
Achievement of the Group target figure for environmental impact reduction production per unit (UEP) of 35 percent. The environmental impact reduction production is a vehicle-specific variable. From 2010 through 2025, the development of the five key figures is analyzed, CO₂ emissions, overall energy consumption, disposable waste, fresh water consumption and VOC emissions Detailed planning and implementation of site-specific packages of measures for achieving Group-wide reduction targets 2025
Systematic reduction in overall energy consumption at the sites Reduction in overall energy consumption through targets derived from prior-year consumption and the corresponding concrete, implemented and documented individual measures in the operator and planning areas Continuous development
All plants net carbon-neutral[18]
Detailed planning and implementation of site-specific measures for achieving net carbon neutrality 2025
Implementation of the performance standard/chain of custody of the Aluminum Stewardship Initiative (ASI) Verification of the ASI performance criteria and implementation of the necessary audit to renew ASI certification of the aluminum components in the Audi e-tron[19] high-voltage battery 2021
  Extension of the ASI performance standard/chain of custody to include other aluminum components besides the high-voltage battery and other AUDI AG production sites 2024
Integrating sustainability in the supplier chain and adding own value to high-voltage storage devices Development of sustainability principles and collaboration on the establishment of standards for high-voltage batteries in the working groups “Circular Economy” and “Innovation” of the Global Battery Alliance, hosted by the World Economic Forum Continuous development

[14]  The Speak-up e-mailbox for potential breaches by suppliers is publicly accessible at the Audi website: https://www.audi.com/en/company/sustainability/coretopics/value-creation-and-production/supply-chain-responsibility/commitment-is-an-act.html

[15] Measure implemented as planned in 2021. See chemical recycling pilot project, for example. Circular economy concepts will continue to be accelerated in the supply chain.

[16]  See page 105ff.

[17]  Hotspot-based procedure, like the use of green electricity in high-voltage battery production.

[18] Győr and Brussels already net carbon-neutral; Audi regards net carbon neutrality as a state in which at least quantitative compensation is provided through voluntary and globally conducted compensation projects, once other possibilities aimed at reducing the CO₂ emissions caused by Audi products or activities and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles have been exhausted. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account.

[19] Audi e-tron: combined electric power consumption in kWh/100 km: 26.3–21.4 (NEDC), 28.4–21.7 (WLTP); combined CO₂ emissions in g/km: 0. Information on electric power consumption and CO₂ emissions in ranges depends on the vehicle’s selected equipment.

Employees and Society

Goal Measure Date
Make working hours and place of work more flexible Establishment of mobile working Continuous development
Update methodology and content of vocational and advanced training Extension of digital learning methods 2025
  Modification of content of vocational and advanced training in relation to strategic future-oriented topics 2025
Promote employee health Setup of digital offerings as part of company health promotion 2022
Promote equal opportunity Increase in the proportion of women in the first management tier below the Board of Management to 12 percent and to 20 percent in the second management tier 2025[20]
Strengthen cultural diversity Expansion of the proportion of international managers within AUDI AG, global employee rotation, international young talent programs, intercultural awareness and training 2025
Promote work-life balance Expansion of childcare Continuous development
  Focus on the issue of care as part of employee information events Continuous development
  Expansion and development of urban services: offerings and services for daily requirements at the interface between home and work at the Ingolstadt and Neckarsulm[21] sites Continuous development
  Promotion of employee mobility by strengthening the provision of job tickets and promoting carpooling Continuous development
Further develop voluntary programs Annual events/event formats at the Audi sites Continuous development
Promote a corporate culture within the meaning of the Volkswagen Group Essentials, the Audi corporate values and the Audi leadership principles Group-wide execution of the role model program for managers and supervisors Continuous development
  Establishment of the Essentials Indicator to sustainably anchor the Volkswagen Group Essentials and to measure the progress in terms of culture Continuous development
  Support of the change of culture through initiatives, formats and events under the “KulturZeit” umbrella Continuous development
Increase employer attractiveness Initiation and promotion of future-oriented events with the focus on corporate citizenship/innovation (e.g. MQ! Innovation Summit) Continuous development
Provide access to education for the public Public “Wissenschaft im Dialog” (Academia in Dialogue) events at the Ingolstadt & Neckarsulm sites Continuous development
Further development of research and teaching in future-focused fields at universities and institutes of higher education Support of universities through endowed professorships Continuous development
Promote mental health Stages II & III: Expansion of support services and establishment of a physical and mental health network and holistic care structures 2023
Promote flexible cooperation within the company Creation and establishment of new cooperation formats, such as, agile process workshop, think tank in Berlin Continuous development
Establishment of a new, integrity-based understanding of leadership Initiation of a leadership program and development of the Leadership. Compass, including a chain of effect for the purposes of embedding it permanently within the company Continuous development
Encouraging employees to provide ESG ideas Integration of sustainability aspects in the Audi Ideas Program 2024

[20]  The targets for the target corridor at the end of 2021 of 8.6 percent in the first management tier below the Board of Management and of 16.8 percent in the second management tier were both reached.

[21] Low employee presence at the Ingolstadt factory in 2020 and 2021 caused by the pandemic has resulted in a strategic realignment; the measure will initially not be implemented further.

 

Audi Report 2021

Company

Audi Report 2021

Welcome to the Audi Report 2021, the combined annual and sustainability report from AUDI AG. This report combines financial perspectives as well as Environment, Social and Governance (ESG) issues in a unique and transparent manner.

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