Audi Sustainability Program

The Audi Sustainability Program combines strategic goals in the area of sustainability with specific measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production,” and “Employees and Society.”

The Audi Sustainability Program is available for download in the Audi Report 2022 on p. 111 ff.

Operations and Integrity

Goal Measure Date
9 to 11 percent operating return on sales, >11 percent from 2030 onwards[1] Implementation of the Audi “Vorsprung 2030” strategy[2] Continuous development
Over 21 percent return on investment (ROI) as a strategic target[1] Implementation of the Audi “Vorsprung 2030” strategy[2] Continuous development
6.0 to 7.0 percent research and development ratio as a strategic target[1] 
Implementation of the Audi “Vorsprung 2030” strategy[2] Continuous development
4.0 to 5.0 percent capex ratio as a strategic target[1] Implementation of the Audi “Vorsprung 2030” strategy[2] Continuous development
Self-finance the transformation to provider of sustainable, individual premium mobility Implementation of the Audi “Vorsprung 2030” strategy[2] Continuous development
EUR 15 billion measure potential through the Audi Transformation Plan on the cost and revenue side 2018-2022[3] Programs already set up with Project Management Office (PMO) and work packages from the Board of Management. Flanked by ongoing monitoring and control 2022[2]
Reinforce Group-wide compliance and integrity Implementation of Volkswagen Group-wide compliance and integrity program, Together4Integrity, on the basis of the international ethics and compliance initiative in all companies  incl. post-monitoring measures 2025
  Strategic communication and training measures on compliance and integrity Continuous development
Enhancement of an ESG management system Enhancement of processes, methods, structures and robust data systems 2023
Global protection and responsible handling of personal data Binding measures in the Audi brand group, e.g., maintaining a procedure directory, internal reporting processes for data protection violations, ensuring the rights of parties concerned and establishing an appropriate risk management system Continuous development 
Creation of a globally uniform foundation for carrying out responsible marketing activities[4] Decision and worldwide rollout of the Responsible Marketing Guideline 2023

[1] The strategic target corridor mentioned applies with immediate effect.

[2] The Audi Transformation Plan was concluded as of December 31, 2022. 

[3] The Audi Transformation Plan (ATP) also had a positive effect on the operating result in 2022, its planned final year. In the year under review, measures totaling more than EUR 4 billion were realized. Due to the supply shortages for semiconductors, the majority of these affected the cost side. Since the beginning of the ATP in 2018, the program therefore realized around EUR 14.4 billion and thus fell just short of the target of EUR 15 billion due to the lower sales volume on account of the pandemic and supply limitations. The ATP proved to be an effective instrument for safeguarding our profitability. Many of the measures have a long-lasting impact and have already been implemented in our line organization.

[4] The worldwide rollout was successful once the guideline had been distributed to the markets via email and/or via marketing database.

Products and Services

Goal Measure Date
Decarbonization index (DCI): Reduction in the CO₂ footprint (life cycle) per vehicle model on a fleet basis by 30 percent by 2025 compared with the base year 2015 and by 40 percent by the year 2030 (base year 2018)[1][2] Creation of DCI roadmap as well as derivation and implementation of decarbonization measures across the entire life cycle  2025
Significantly reduce fuel consumption for every new vehicle compared with the predecessor model Switch 70 percent of new vehicles with combustion engines sold worldwide to mild hybridization or plug-in hybridization 2022[3]
Ensuring technological compatibility of Audi products for use with synthetic fuels as a contribution to defossilizing the existing fleet[4] Appraisal and implementation of the necessary technical requirements for the use of synthetic fuels retroactively for vehicles with a production year starting from 2015 2025
Expand the range of electric drive concepts 40 percent of new Audi vehicles feature an electric drive (availability of at least one battery electric vehicle for each core segment) 2025
Global protection and responsible handling of personal data Fine-tune the organizational processes to validate privacy by design, privacy by default Continuous development
Responsibility for the safety of customers and other road users Portfolio of predictive assistance and safety systems Continuous development 
Enhance road safety Further development of technologies toward assisted/automated driving 2025
Develop an attractive mobility portfolio[5] Development of new business models as part of the new focus on synergies within the Group 2028
Maintain long-term of competitiveness with reference to fuel cell drive concepts[6] Various technology and market monitoring activities as well as safeguarding access to technology. The focus is on possible changes to framework conditions, e.g., future availability of renewable energies, etc.  Continuous development to safeguard access to technology

[1] As a Group-wide KPI, the decarbonization index (DCI) measures the average emissions of CO₂ and CO₂ equivalents over the entire life cycle (from the extraction of raw materials to recycling) of the Audi passenger car portfolio and is stated in metric tons of CO₂ per vehicle. It includes both direct and indirect CO₂ emissions at individual production sites (Scopes 1 and 2), as well as all other relevant direct and indirect CO₂ emissions over the life cycle of the vehicles (Scope 3). The Audi DCI goals make a contribution to the decarbonization of the Volkswagen Group. 

[2] Fleet of new cars sold in EU, USA and China export.

[3] Due to the marked increase in market share for BEVs, this goal will no longer be pursued, as this would mean that the mild hybridization combustion engine measure would no longer make a significant contribution to a reduction of CO₂ fleet emissions. Furthermore, the limited availability of supplier parts (semiconductors, cable harnesses from Ukraine, etc.), in conjunction with the prioritized use of the available materials in BEVs, plays a role.

[4] The basis for this is exclusively renewable fuels of non-biological origin* (RFNBO), which have no negative impacts on the use of raw materials for the production of food. The biofuels used are produced exclusively from second-generation* residual materials, which are residual materials that are generated during the production of food, left behind on arable land and not used for other purposes.

* See the Renewable Energy Directive (RED II).

[5] With the strategic refocus within the Group for new mobility business models, Audi is adapting its mobility portfolio to the new strategy.

[6] Focus on developing battery-powered electric vehicles, cf. technical clarity.

Value Creation and Production

Goal Measure Date
Integrate sustainability into supplier relationships Training for all procurement employees in order to raise awareness of sustainability standards in supplier relationships Continuous development
  Training for suppliers in order to raise awareness of sustainability standards in the supply chain Continuous development
  Sustainability rating (S-Rating) as a mandatory criterion for awarding contracts Continuous development
  Involvement in industry standards and Group tools to ensure compliance with environment-related and social standards in the supply chain Continuous development
  Supply Chain Grievance Mechanism: Further development of the supply chain grievance mechanism; grievance channel is publicly accessible[1] Continuous
development
  Development of preventive measures relating to ESG risks in the supply chain Continuous
development
Integrate sustainability into the supply of raw materials Raw Material Due Diligence Management: OECD-compliant raw materials management Continuous
development
  Adaptation of existing processes through successive implementation of human rights duty of care for critical raw materials in the supply chain Continuous development
Integrate environmental measures into the supply chain Holding of CO₂ workshops with selected hotspot suppliers to identify measures with potential to reduce CO₂ emissions[2] Continuous development 
  Rollout of the Aluminum Closed Loop in other plants 2025
  Anchoring the use of green electricity in the supply chain[3] Continuous development 
  Development of a “Responsible Water Stewardship Program” for the supply chain Continuous development 
The aim of Act4Impact is to build a network of partners in our supply chain who want to bring about improvement from an economic, environmental and social perspective. With the Act4Impact program, we want to roll out the Audi Act4Impact Playbook globally for our suppliers to show them possible ways to improve sustainability 2025
Achievement of the Group target figure for the reduction of the environmental impact of production (UEP) of 35 percent. The UEP is a vehicle-specific variable. From 2010 through 2025, the development of the five key figures is analyzed, CO₂ emissions, overall energy consumption, disposable waste, fresh water consumption and VOC emissions Detailed planning and implementation of site-specific packages of measures for achieving Group-wide reduction targets 2025
Systematic reduction in overall energy consumption at the sites Reduction in overall energy consumption through targets derived from prior-year consumption and the corresponding concrete, implemented and documented individual measures in the operator and planning areas Continuous
development
All plants net carbon-neutral[4] Detailed planning and implementation of site-specific packages of measures for achieving targets 2025
  Extension of the ASI performance standard/chain of custody to include other aluminum components and AUDI AG production sites 2024
Anchoring circular economy concepts in the company Creating concepts for the recycling of high-voltage batteries 2025
  Formulation of a KPI set for the internal management of circular economy concepts 2022[5]
Integrating sustainability into the supplier chain and adding own value to high-voltage storage devices Development of sustainability principles and collaboration on the establishment of standards for high-voltage batteries in the working groups “Circular Economy” and “Innovation” of the Global Battery Alliance, hosted by the World Economic Forum Continuous development 

[1]  The Speak-up email address for potential breaches by suppliers is publicly accessible at the Audi website: https://www.audi.com/en/company/sustainability/core-topics/value-creation-and-production/supply-chain-responsibility/commitment-is-an-act.html

[2] Will no longer apply in the future, as integrated in DCI activities. CO₂ reduction measures in the supply chain will be continued as part of Audi decarbonization activities.

[3] Will no longer apply in the future as an individual measure through integration in DCI activities. Continuation of the content, in particular tracking, if individual measures are required, e.g., in specifications. CO₂ reduction measures in the supply chain will be continued as part of Audi decarbonization activities.

[4] Győr and Brussels are already net carbon neutral; Audi regards net carbon neutrality as a state in which voluntary and globally conducted compensation projects offset, at least quantitatively, after exhausting other options aimed at reducing the CO₂ emissions caused by Audi products or activities and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles. This excludes CO₂ emissions produced throughout the utilization phase of a vehicle, meaning from the point when a vehicle is delivered to a customer.

[5] Goal achieved as planned in 2022 through finalization of a KPI set. Initially, the focus is on increasing the use of secondary materials in vehicle  projects.

Employees and Society

Goal Measure Date
Make working hours and place of work more flexible Establishment of mobile working Continuous development
  Introduction of “better normal” on the basis of the “hybrid working” works agreement  (10/2022)[1] 2024
Update methodology and content of vocational and advanced training Extension of digital learning methods 2025
  Modification of content of vocational and advanced training in relation to strategic future-oriented topics  2025
Promote employee health Setup of digital offerings as part of company health promotion 2022[2]
  Expansion of healthy (also including vegetarian and vegan) meal options as well as consistently aligning the meal plans with the ESS line principles of Audi gastronomy[3] 2023
Promote equal opportunity Increase in the proportion of women in the first management tier below the Board of Management to 12 percent and to 20 percent in the second management tier 2025
Strengthen cultural ­diversity Expansion of the proportion of international managers within AUDI AG, global employee rotation, international young talent programs, intercultural awareness and training 2025
Promote work-life balance Expansion of childcare through the continuous adjustment of enrollment slots in regional childcare facilities and the addition of more slots. Expansion of vacation childcare through expanded cooperation with regional partners[4] 2027
  Focusing on work–life balance: Establishment of themed weeks related to professional life and care in the fields of prevention, dementia and terminal care/grieving[5] Continuous development
  Promotion of employee mobility by strengthening the provision of job tickets and promoting carpooling Continuous development[6]
Further develop voluntary programs Audi Social Day as an international Volunteer Day for the first time at all Audi production sites simultaneously[7] 2023
Promote a corporate culture within the meaning of the Volkswagen Group Essentials, the Audi corporate values and the Leadership.Compass Group-wide execution of the role model program for managers and supervisors. Every manager with leadership responsibility is required to implement at least two measures per year for the promotion of an open culture of dialogue and a trusting, collaborative culture.[8] Continuous development
  Establishment of the Essentials Indicator to sustainably anchor the Volkswagen Group. Essentials and to measure the progress in terms of culture Achievement of the targets determined Group-wide is tracked over the long term and communicated comprehensively throughout the company. Continuous development
  Support of the culture shift through initiatives, formats and events. [9] Continuous development
Increase employer attractiveness Introduction of Audi bicycle leasing[10] 2023
  Initiation and promotion of future-oriented events with the focus on corporate citizenship/innovation (e.g., One Young World Summit)[11] Continuous development 
Provide access to education for the public Public “Wissenschaft im Dialog” (Academia in Dialogue) events at the Ingolstadt & Neckarsulm sites[12] Continuous development
Further development of research and teaching in future-focused fields at universities and institutes of higher education Support of universities through endowed professorships Continuous development
Promote mental health Stages II & III: Expansion of support services and establishment of a physical and mental health network and holistic care structures[13] 2023
Promote flexible cooperation within the company Creation and establishment of new cooperation formats, such as, agile process workshop, Denkwerkstatt in Berlin Continuous development
Establishment of a new, integrity-based understanding of leadership Development of the leadership culture through anchoring the Audi understanding of leadership within the company, e.g., in setting objectives and performance management. Long-term tracking of the leadership culture via Leadership.Indicator Continuous development
Encouraging employees to provide ESG ideas Integration of sustainability as its own category in the Audi Ideas Program so that submitted ideas can be correspondingly categorized. 2024

[1] Specific steps for 2023 and 2024: 
- Conclusion of the “Better Normal” office environment test fields (incl. desk sharing) in the first half of 2023
- Rollout (first wave) of the “Better Normal” office environment (incl. desk sharing) in the second half of 2023
- Rollout (second wave) of the “Better Normal” office environment in 2024
- Measures to improve the working world in the production areas in 2023 (e.g., quality of stay, digitalization)

[2] Organize and carry out (online) presentations and campaigns in the actions areas of exercise, nutrition and mental health. Continuation of the online modules and additional modules planned for 2023. Piloting of the multiplier function of the health guides to anchor and raise awareness for health and health-related topics.

[3] Specific measures in 2023: Introduction of a vegan campaign month (always January) with the goal of every other dish in the main menu lines (Classic and Green Line) being vegetarian or vegan. 

[4] Intensification of planning with regard to the expansion of childcare offers at the Ingolstadt and Neckarsulm sites.

[5] Execution of three themed weeks strengthens the focus on the topic of professional life and care, which is highly relevant in society.

[6] Goal will no longer be communicated in the future, as the job ticket and other support offers have already been established.

[7] International expansion of the offers with regard to employee volunteering.

[8] The Audi leadership principles were updated in 2022 and renamed to Leadership.Compass as a result.

[9] The MQ! Innovation Summit took place four years in a row: in Ingolstadt in 2017 and 2018, in Beijing in 2019 and as a worldwide online event in November 2020. The event did not take place the last two years due to the pandemic and it will now no longer be continued.

[10] With regard to the environmental challenges of climate change, the employees of AUDI AG should be granted the opportunity in the future to benefit from models of bicycle leasing at favorable conditions.

[11]  The MQ! Innovation Summit took place four years in a row: in Ingolstadt in 2017 and 2018, in Beijing in 2019 and as a worldwide online event in November 2020. The event did not take place the last two years due to the pandemic and it will now no longer be continued.

[12] “Wissenschaft im Dialog” (Academia in Dialogue) was supposed to begin with new lectures over the course of 2021. This could not proceed as planned due to the coronavirus pandemic. This measure will not be continued.

[13] Successful piloting of the Mental Health Checkup (consultation on the early detection and early intervention for the typical indications of burnout). Scientific evaluation of the results of the Mental Health Checkup and publication in an academic journal.Goal for 2023: Establishment of the Mental Health Care @ Audi specialist function with a focus on early detection, early intervention and relational prevention.

Audi Report 2022

Company

Audi Report 2022

Welcome to the Audi Report 2022, the combined annual and sustainability report from AUDI AG. This report combines financial perspectives as well as Environmental, Social and Governance (ESG) issues.

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