Sustainability @ Volkswagen coversa broadrangeof topics-Decarbonizatio - PDF document

Sustainability @ Volkswagen coversa broa
Sustainability @ Volkswagen coversa broadrangeof topics-Decarbonization, Integrity, SustainableSupply Chains, Transformingthe Workforceareamongmostmaterial onesCOϮ‐compensationSustainaďilitLJDecarďonizationCorporate CitizenshipSerǀicesIuman RightsZero Impact CactorLJS‐Rating SustainaďilitLJ Reporting/nonfinancial reportImpact Ass

essmentUb‐Sustainaďle Deǀelopment 
essmentUb‐Sustainaďle Deǀelopment Goals ;SDGͿSustainaďilitLJ CouncilStakeholder EngagementGSC‐SustainaďilitLJEmploLJee engagementESG‐InǀestorsRankings & RatingsChargingInfrastructureSustainaďilitLJ communicationGoToZeroRisk managementIntegritLJCircular EconomLJTransforming the ǁorkforceTransport Sector accounts for 14%

of global GHG EmissionsIn the EU, trans
of global GHG EmissionsIn the EU, transport is the only sector with emissions increase since 1990 Source: IPCC 2014, EEA 2018ϭϵϵϬϭϵϵϱϮϬϬϬϮϬϬϱϮϬϭϬϮϬϭϱϮ.ϬϬϬϭ.ϬϬϬϭ.ϱϬϬResidential/commercialEnergLJ supplLJWasteInternational aǀiationInternational shippingGlobal GHG-Emissions by sectorAgriculture, CorestrLJ;

 Land useBuildingsTrends in EU by sect
 Land useBuildingsTrends in EU by sector since 1990 [MT of CO2e]Volkswagen will be part of the solution, our focus is on climate change mitigation People & ResponsibilityProfit: Strategy& Planet / Environment:Products, Services & ProductionOCUSAREADECARBONIZATIONIMENSIONSOFSUSTAINABILITYATProfit: Strategy& Planet / Environment:Products, Servi

ces & ProductionWhy it matters to Volks
ces & ProductionWhy it matters to Volkswagen:Because of our significant influence and commitment to responsible action (1% of global CO-emissions affected by our passenger car portfolio)Because of rising stakeholder expectationsBecause decarbonizationdelivers direct Sard to achieve climate targetsBEVFCEVPHEV(eFuels)conventionalICEIncrease share

of future technologies Focus E-Mobility
of future technologies Focus E-MobilityImplementation of further measures to become OurTarget:neutral fleetby2050�85%203510-20%10-20%10-25%10-25%ratherlaterratherearlier6%13%13%13%13%67%67%0.95.5ROUPTARGETA group wide target of 30% COreduction/vehicle over lifecycle for Volkswagen Group was decided -in line with the Paris Agr

eement13%(Baseline)Supply ChainIn-ho
eement13%(Baseline)Supply ChainIn-house Fuel SupplyEmissions2015 Baseline VW Groupp2e/veh.]1)Passenger cars2015: Ø CO1) Decarbonizationindex (DKI), 2) target derived based on method by Science Based Target according to 2°C target, 3) Passenger cars including light duty vehicles, E-mobility transformation is reflected in our corporate plan

ningin the existing fleet2050�1
ningin the existing fleet2050�10 yearsFleet renewalEOPConventional platformsSOPConventional projectsSOPneutral carsBroad product portfolio2020New business modelPARIS IMPLICATIONS AND TRANSFORMATION PATHThe decarbonisationtarget will be achieved via three pillars:1. Reduce CO; 2. Convert fossil to renewable energy; 3. Compensate t

he restGroup decarbonisationtarget[t CO
he restGroup decarbonisationtarget[t COEffective and sustainable CO sources for power supply1Compensate remaining emissions that cannot be avoidedTo reach our decarbonisationtarget measPrimary energy demand is lowest with BEVsFossilFuel CellPlug-In HybridBattery (BEV)THE MODEL OF THE ENERGY BALANCE LIFECYCLEVehicle productionFuel product

ionFuel consumptionRecyclingVehicle d
ionFuel consumptionRecyclingVehicle developmentExample: A-Segment 200.000 km, COemissions & energy over lifecycle of vehicle and fuel1) not fully comparable with energetic base, not COPRIMARY ENERGY REQUIREMENT IN WH/KM FOR LIFECYCLEID.3 as first showcase for decarbonizationalong the value chainto customer in retailOffers for CO-neutral e-

mobility100 % greenpowerinhigh-power ch
mobility100 % greenpowerinhigh-power charging-Green power contractsforhome-chargingVW supplypromiseCustomerincl. supplychainBEV today already first choice in COover lifetime –example current Golf class carϬϮϬϰϬϲϬϴϬϭϬϬϭϮϬϭϰϬϭϲϬϭϴϬPetrol;EU Ϯϴ Midž, PetrolÍ¿g COÏ®eƋ/kmCuel SupplLJ ;ǁellÏ®tankÍ¿productionÂ

 Í¾cradleÏ®gateÍ¿use ;tankϮǁheelÍ¿So
 Í¾cradleÏ®gateÍ¿use ;tankϮǁheelÍ¿Source: Volkswagen K-GEGU 2019, “KlimabilanzAntriebe”; Compact Car (Golf-class), LCA, use phase acc. to WLTP, 200.000 km lifeCustomers and markets must still be prepared for e-mobilityat all ďrandsϭϯdžϰdžϭdžCommitment to the goals of Paris Climate Agreement neutral edžistingin ϮϬϱϬVis

ion ofSufficient Charging Decarboni
ion ofSufficient Charging Decarbonization: We address an entire ecosystem and go beyond the vehicle itselfConversion of Wolfsburg power plant, saving 1,5 mntons of COby 2022, corresponding to emissions of 870,000 cars per Volkswagen with 37% renewable energy in manufacturing (as of 2017)Lower emission productsFurther emission reductionsAlt

ernative fuels (e.g. Audi e-Extended por
ernative fuels (e.g. Audi e-Extended portfolio of electric vehicles Joint venture fornetworkin placeELLI, offering home charging with green Charging infrastructureMobility ServicesMOIA electric shuttles in first All-electric car-sharing Volkswagen We share Q2/2019 in BerlinSupply Chain Sustainability –managing risks along three defined priorit

y areasRaw materialTraderCommitmentto
y areasRaw materialTraderCommitmentto 2°C goalLong-term Long-term Long-term Measures for all high-risk raw materialsID.3Green electricity in HV-battery cell productionClosed loopIdentification of smelters HackathonSupplier events worldwide Supplier auditsSupplier assessmentsRaw Materials ObservatoryImprove basic principles and succe

ss factors for supply chain managementsu
ss factors for supply chain managementsub-supplychainspilotprojectswithIBM & MinespidersustainabilityperformanceofsuppliersIntroductionofS-Ratingof standardsandtoolsPilot on auditstandardsfor directsuppliersandminingcompanies, uniform CO2 dataCross-industryinitiativesandcooperationsEngagement in initiatives like DRIVE Sustainability, ResponsibleMi

nerals Initiative orGlobal BatteryAllian
nerals Initiative orGlobal BatteryAllianceSustainability in the Supply Chain: We want to be a Driving Forceensure the social and exchange and on-the ground work. tungsten, tin & gold.upstream actors in the supply chain.assessment tools Develop and conduct standard for Apply to all stages of the aluminum value chain from raw initiatives in order

to trigger broad do joint risk We are
to trigger broad do joint risk We are strengthening external stakeholder relations. Group Strategy’s stakeholder dialogue series provides a holistic format for discussions with key opinion leadersSustainability Council ascriticaladvisortotheGroup Board ofManagementSustainable Mobility and Social Responsibility and Integrity Future of Work and D

igitalizationStrategic Counseling of the
igitalizationStrategic Counseling of the BoMBridge to StakeholdersExpertise and InitiativesTransformation Towards Sustainable Transport Systems –Next Generation Open Source Lab for Sustainable MobilityForecast-based Financing –Combat Climate Change Impacts in Asia-PacificWe have a strong sustainability network –Sustainability as part of Group Str

ategy Communication on Sustainability:
ategy Communication on Sustainability: Sustainability Report and Suseparate non-financial report and fulfils the How can Volkswagen –after the Diesel Crisis -FOCUS: ESG, facts, figures, regulation, GRI / UN SDGshttps://www.volkswagenag.com/en/sustainability/reporting.htmlFOCUS: conflicting goals, change /crisis, outlookhttps://www.volkswagena

g.com/en/sustainability/shift.html1) GRI
g.com/en/sustainability/shift.html1) GRI = Global Reporting Initiative | SDG = Sustainable Development GoalsSummaryDecarbonisation is our key sustainability priority @Volkswagen Group Our ambitious decarbonisation program covers the entire life cycle. Clear priorities are set: avoid & reduce CO-emissions, compensate non Supply chain Sustai

nability is essential for a resilient su
nability is essential for a resilient supply chain and our reputation Stakeholder Engagement is important in our industry’s transformation Sustainability reporting and communication: Ensuring transparency to stakeholders1ESG Convention of Volkswagen GroupDRIVE Volkswagen Group, Berlin, September 20, 2019Ralf PfitznerGlobal Head of Sustainabili