Sustainability and Responsibility in the Supply Chain

As a major industrial enterprise, we are very conscious of our responsibility for the environment and society. For Audi, the concept of being consistently sustainable means focusing holistically on environmentally friendly processes and social working conditions. Our globally interlinked supply chain plays a key role here.

To us sustainability is about responsibility

The supply chain at Audi is subject to constant change and is also highly complex because of the large number of processing steps and materials involved. We interact with more than 16,000 suppliers from 152 countries. That adds up to a large responsibility, but at the same time it offers enormous potential to operate sustainably at critical positions. We take this duty seriously and work exclusively with partners who share our values. It is our conviction that our suppliers play a key role in our success when it comes to sustainability.

We take responsibility for the footprint that we leave in and through our supply chain. It is our goal to ensure that the company avoids a negative impact and generates a positive one wherever possible.

Marco Philippi, Head of Procurement Strategy

The most important pillars of our sustainability efforts in the supply chain

Environment

Environment

We develop standards that ensure environmental measures in the supply chain are adhered to across the board.

 

People

People

We constantly work to improve working conditions for people, such as when we are dealing with critical raw materials in the supply chain.

Innovation

Innovation

Through increased integration of new technologies such as artificial intelligence or blockchain, we want to continuously improve traceability in our global, complex supply chains.

 

We strive to make a difference

The possibilities and starting points for acting sustainably in the supply chain are as multi-layered as the supplier structure. Thanks to the consistent electrification of our vehicles, it is here that the majority of CO₂ emissions arise. That is why it is essential for us as part of the Audi CO₂ program to improve the CO₂ balance sheet in the supply chain even before our vehicles embark on their first kilometers on the road. To do this, we are focusing at various points on green energy, recycling concepts, and the use of secondary materials. For example, using secondary aluminum enables energy savings of up to 95 percent compared with primary aluminum. Thanks to our Aluminum Closed Loop in Neckarsulm, we were able to save 150,000 metric tons of CO₂ in 2019. Newly developed guidelines, which for example stipulate that only green energy is used by Audi partners, support our contract award processes and promote the use of renewable energy. In this way, we reduce negative impacts at the places where we cannot completely avoid them and generate positive effects everywhere that we can.

2

sites

with an Aluminum Closed Loop (Neckarsulm and Ingolstadt)

7

product lines

with an aluminum recycling concept in Production

More than

300.000

metric tons

of CO₂ saved in 2019

1,2

metric tons

CO₂ of savings potential per vehicle

Listen and understand

A rating for more comparability and transparency: The sustainability performance of the Volkswagen Group’s suppliers has been recorded on a mandatory basis since July 1, 2019, using what we call the S-Rating (Sustainability Rating). By filling in a self-assessment questionnaire (SAQ), suppliers provide us with information about how they act sustainably in terms of social and environmental aspects and corporate ethics. If the SAQ does not meet our standards, the location is evaluated together with an independent sustainability assessor in an on-site check, and the decision is subsequently made whether a location can be nominated for contracts or not. There are no gray areas. Suppliers have the opportunity to identify potential for optimization and to implement improvements. Audi provides support here in the form of targeted training programs and workshops.

In 2019,

12,646

suppliers provided VW with information

1,331

on-site checks were carried out throughout the Group

Our goal is to lay the foundation for enhanced sustainability and responsibility in a spirit of partnership together with our suppliers.

Johanna Klewitz, Team Leader for Sustainability in the Supply Chain

Stronger together

Stronger together

We believe in a sustainable future. Long-term relationships with our suppliers are essential for this. That is why we support our business partners not only through training on the S-Rating, but also with a variety of workshops on the topic of sustainability.

Read more
Commitment is an act

Commitment is an act

Taking a holistic view of sustainability means keeping an eye on both, the smallest of details and the big picture. This is underpinned by working together on initiatives as well as clearly worded requirements for our partners and overarching standards.

Read more

Our vision for a sustainable future

The decisions we make today have a significant effect on our future. We work together with our partners to conserve natural resources, prevent environmental pollution, and take social responsibility. To meet these aspirations, we have defined numerous clear goals and measures that provide the framework for developing our company and our network of partners in a sustainable way and contribute to attaining the Sustainable Development Goals (SDGs) of the United Nations (17 global goals for sustainable development) at the same time.

One of our key topics here is the integration of sustainability requirements into the supply of raw materials. We are primarily achieving this by implementing due diligence for critical raw materials in the supply chain with regard to upholding human rights (SDG 3, 8, 10, 12). Further, we are working on decarbonizing the supply chain together with our suppliers, for instance by rolling out the Aluminum Closed Loop or anchoring the use of green electricity in supplier agreements. Training for all employees in procurement and suppliers in order to raise awareness of sustainability standards in the supply chain also contributes to achieving this goal (SDG 8, 12, 13, 17), as does the use of innovative technologies for greater transparency (SDG 9, 12, 17).

Our purchasing volume as well as the large number of direct partnerships in our global network are essential levers for delivering a holistic sustainability strategy at our company.

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