Together with our business partners, we assume responsibility for fair and decent working conditions, and for the environment. Audi obtains a commitment from all its suppliers to comply with the “Volkswagen Group requirements regarding sustainability in its relationships with business partners.” Vital components comprise environmental protection, employee rights, fair market practices and respect for human rights – especially the ban on child and forced labor.

With its procurement strategy, Audi is devoting more attention to sustainability in its supplier relationships. Here too, the sustainable procurement of commodities and a duty of care in the supply chain occupy a central role.

In order to maximize the benefit of synergy potential, we select suppliers in close consultation with Volkswagen Group Procurement.

Before bidding for a contract, suppliers must acknowledge the sustainability requirements that apply to all purchased goods and services, and update this acknowledgment after a period of twelve months when they next submit a bid.

Suppliers are expected to take responsibility themselves. For example, main suppliers are required to implement a certified environmental management system in accordance with ISO 14001 and/or EMAS.

Suppliers of the Volkswagen Group are required to exercise due diligence along their entire supply chain. This includes measures to ensure that the minerals used by the suppliers, particularly tantalum, tin, tungsten, gold and cobalt, do not contribute to the direct or indirect promotion or support of armed conflicts or involve human rights violations.

Audi aims to record the sustainability performance of suppliers by means of a sustainability rating. In 2017, Audi started to introduce the rating for relevant first-tier suppliers, to which end it initially focused on the suppliers for the electrically powered Audi. We anticipate rolling out the rating across further suppliers.

The rating is already conducted before the contract is awarded to the supplier to obtain an insight into social, ecological and human-rights-related risks. It is based on an on-site check at the supplier’s place of production along with self-disclosures based on a standard questionnaire of the Drive Sustainability initiative. Through the evaluation, Audi aims to give the supplier an opportunity to identify potential for optimization and make improvements. In addition, looking to the future the aim is to outsource work only to companies that have a positive rating.