ESG: From trend to value driver

ESG is well established on the capital market: Investors place increasingly great value on the mutual relationship between economic success and sustainable commitment. Thus, Audi also operates in keeping with the environmental, social and governance (ESG) factors.

10/10/2019 Text: Caroline Müller – Photos: Getty Images, AUDI AG
Reading Time: 4 min

Key Facts

  • Audi integrates ESG criteria into the long-term management process.
  • Environment: The company plans to be completely carbon-neutral by 2050.
  • Social: In order to accomplish the transformation, the training budget was increased to €500 million up to 2025.
  • Governance: The compliance and integrity program has already reached more than 90 percent of all Audi employees worldwide.

Clown fish and sea anemones

ESG and performance – a mutual relationship

Clown fish and sea anemones live in a perfect symbiosis. The anemones’ stinging cells offer protection against predators. In turn, the clown fish ensure that the anemones have clean tentacles and ventilate them with oxygen when the corresponding levels in the water are low. The relationship between corporate success and sustainability in the automotive industry is currently evolving into a similar symbiosis. A mutual relationship that relies not on short-term success, but on a long-term, healthy cooperation that is ultimately profitable for both sides.

“Investors first” is now “purpose driven”

Management according to ESG is not just active risk management, but also the basis for long-term economic success – especially in today’s world, in which society’s values are changing sustainably. Established business models are being replaced and new, sustainable products are ensuring growth. Companies that are managed according to ESG are economically more successful and secure valuable market shares. Efficient processes and a circular economy reduce environmental impact, save resources and cut costs.

Sustainability has become a key element of company management – and thus a value driver instead of just a trend. Audi has formulated a clear commitment to this through its vision to “unleash the beauty of sustainable mobility.” To further advance the integration of ESG criteria, various sustainability core topics are assessed according to the significance they have for overall business success. To this end, we use materiality analyses to survey our internal and external stakeholders regularly for their assessment of relevant action areas. The insights we gain from these surveys are continuously compared with our corporate strategy.

Ambitious CO₂-Roadmap

“E” is for environment: When it comes to alternative drive technologies, Audi pursues a broader base and is promoting e-mobility with the goal of offering 30 electrified models by 2025, of which 20 will be all-electric. The share of electrified vehicles will then amount to 40 percent of our total sales. Yet the brand is also continuing to develop conventional engines, relying increasingly on mild hybrid powertrains and a 48-volt electrical supply. Plug-in hybrids are also an important part of our electrification efforts.

And Audi is going one step further: In 2019, the new key indicator “Return on investment after CO₂ effect” was introduced. This measures the financial impact of the influence of vehicle projects on average CO₂ emissions. This should ensure that the carbon footprint of all Audi models is reduced, step by step, by about 30 percent by the year 2025 (compared with the reference year 2015) – across their entire life cycles. That applies not just to the vehicles themselves, but also to Audi production facilities:

By 2025, all plants will be carbon-neutral, following in the footsteps of the pioneering plants in Brussels and Győr. By 2050, Audi wants to achieve a carbon-neutral balance throughout the entire company. As Bram Schot emphasizes, the brand’s acceptance and relevance depends on this. “And with it, the value of the Audi brand as well.”

Audi Brussels, Montage: Audi e-tron

Operations & Integrity 01/29/2020

CO₂ – the currency of the future

How Audi is shrinking its corporate carbon footprint and why this is key to making itself future-proof – a look at the new “consistently Audi” strategy.

Read more

Expenditure for training increased by one-third

“S” is for social: Social criteria are also becoming a value driver for Audi. One focal point is training and development. For instance, in 2018 more than 36,000 AUDI AG employees took part in training measures. They mainly attended training in the fields of electric mobility and digitalization. Their training time amounted to around 1.8 million hours worldwide. Audi invests 80 million euros annually in the training and development of its staff. This represents a considerable increase on previous years. Overall, Audi has increased its training budget to €500 million up to 2025.

Rule-compliant and values-oriented corporate management

“G” is for governance: Governance is the foundation of sustainable business. In concrete terms, this is about risk and reputation management, about anchoring sustainability management at Board of Management and Supervisory Board level as well as about compliance and integrity.

At Audi, the  Volkswagen Group Essentials, the Audi Fleadership principles and the Audi corporate values – appreciation, openness, responsibility and integrity – are the foundation of our values and our corporate culture. They are intended to offer employees orientation for their daily work. The focus is on dialogue and exchange. For example, the integrity and compliance program Together4Integrity (T4I) has already reached 82,000 of 90,000 employees at Audi.

Planned share of total sales in 2025

40 %

electrified vehicles

Increase in training budget to

500

EUR million

up to 2025

Integrity and compliance program:

82,000

employees already reached by “Together4Integrity”

ESG is the concrete expression of the paradigm change currently taking place in business and society. Audi has recognized this, and is laying important groundwork for the integration of the ESG topics into corporate management. Now it is a matter of implementing the measures in order to achieve the goals we have set. In other words: The symbiosis must be lived in practice.

Close

Audi worldwide

Models, products and services – switch to your country / sales region website and discover the regional diversity of Audi.

    Close

    Close

    You are using an unsupported browser to access this website. To get the best User-Experience while visiting the website, please use the latest versions of Chrome, Firefox, Safari or Edge.

    Thank you very much for your visit.
    Your Audi Team

    The international Audi website

    Discover Audi as a brand, company and employer on our international website. Experience our vision of mobility and let yourself be inspired.

    Audi of America: models, products and services

    Explore the full lineup of SUVs, sedans, e-tron models & more. Build your own, search inventory and explore current special offers.

    Switch to audiusa.com

    Error report

    The feedback form is currently unavailable.
    Please try again later.

    You may deactivate your ad blocker to view the feedback form.