Mobility for Future Generations:VW’s Sustainability Strategy

March 18, 2024

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VW is working towards net carbon neutrality by 2050

The VW Group’s 2023 Sustainability report outlines achievements in focus areas including decarbonisation, circularity, people, integrity & supply chain

The VW Group comprises ten brands from five European countries: Volkswagen, Volkswagen Commercial Vehicles, ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, Porsche and Ducati.

Having now settled into the updated strategy New Auto – Mobility for generations to come that the company adopted in 2021, VW has released its 2023 Sustainability Report.

The company’s focus looks to 2030, with alterations each year seeing 2023 prioritising financial robustness and planning, products, the China and North America regions, software, technologies, battery and charging, mobility solutions, sustainability, and capital markets.

“Sustainability is one of our top priorities,” says Daniela Cavallo, Chairwoman of the General and Group Works Council of Volkswagen AG.

“As a strategic field, we set ourselves clear goals and plans for sustainability – which are binding with clear responsibilities."

The Group acknowledges that the transport and mobility sector is one of the biggest contributors to climate change, accounting for around 23% of global energy-related greenhouse gas emissions. As one of the world’s largest automakers, VW is aware of the responsibility that this poses. Alongside being fiercely committed to the Paris Agreement to keep the increase in global temperature below two degrees Celsius by 2050, the Group is also working towards net carbon neutrality by 2050.

In the shorter term, the Group’s aim is to reduce the carbon footprint of its passenger cars and light commercial vehicles by 30% per vehicle in comparison to 2018 by 2030 – without offset measures. Electric vehicles are a large part of this, with VW delivering 771,100 all-electric vehicles in 2023, equivalent to a 34.7% year-on-year rise.

By 2025, VW and its partners plan to create around 45,000 high-power charging points in Europe, China and the USA.

The sustainable future of transport

The overall ESG focus topics for the VW Group are decarbonisation, circular economy, people in the transformation, diversity, integrity and compliance, supply chain and human rights.

The VW Group’s highlights of sustainability achievements in 2023 are:

Decarbonisation: Increasing access to 600,000 charging points in Europe, on track to its 2030 goal of reducing the whole dealer network’s carbon footprint by at least 30%
Circular Economy: Since 2017, more than 850,000 metric tons of CO2 have been saved in net terms through the Aluminium Closed Loop, alongside processing 77,090 tools for re-use
People in the transformation: VW logged 14.3 million training hours in 2023, as well as reaching 72 locations certified in accordance with ISO 45001.
Diversity: VW has increased its proportions of women in management, and 94% of managers have taken part in its diversity programmes.
Integrity and compliance: VW audited more than 4,100 business partners, and processed 1,551 inquiries at the compliance information point.
Supply chain and human rights: VW trained 7,791 direct suppliers on sustainability, and increased suppliers with a positive S rating to account for 79% of revenue in the total procurement volume.

“As one of the world’s largest industrial groups, we carry a special responsibility,” says Oliver Blume, VW Group CEO.

“We can make a difference. We want to and will seize this opportunity.”