ESG rating: Audi leads the way among car manufacturers

AUDI AG is the industry leader when it comes to environmental, social and corporate governance matters according to rating agency ISS ESG: The company is in pole position in the industry, having achieved a rating of B– for its ESG performance and has improved its result year on year.

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Audi Q6 e-tron quattro: electric power consumption (combined): 19.6–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A

Environmental, Social and Governance (ESG) topics are a core element of Audi’s corporate strategy. To create transparency and comparability across the automotive industry with regard to ESG performance, Audi was assessed for the second time by an internationally respected ESG rating process. The result: No other automotive company assessed by ISS ESG has achieved a better result to date for the 2023 financial year.

Experts assess more than 100 criteria

“Our goal is to be among the best in our industry,” says Jürgen Rittersberger, Member of the Board of Management of AUDI AG with responsibility for Finance, Legal Affairs and IT. “We are convinced that a good sustainability performance will improve our corporate value in the long term and help to future-proof Audi. The B– result goes one better than the rating achieved the previous year,” says Rittersberger. Based on the rating from June 14, 2024, AUDI AG ranks number one among 49 companies in the industry rating for the 2023 financial year.

ISS ESG rating “Automotive Industry”

ESG performance in detail

Jürgen Rittersberger: “We already achieved a solid result in the 2023 rating and received important insight that showed us the areas where we have potential. We started from here and continued to improve.”

What did the analysts from the ISS ESG rating agency find particularly noteworthy with regard to sustainability and corporate governance?

AUDI AG wants to achieve net carbon neutrality company-wide by 2050 ^*. The ISS ESG analysts found that the company is using appropriate measures to achieve this objective. The company’s efforts in the area of alternative drive systems and mobility concepts are significantly above the industry average according to ISS ESG.
Among others, the company offers all-electric and hybrid vehicles.
In terms of vehicle life cycle analysis, the company is performing significantly above average compared with its competitors.
According to ISS ESG, AUDI AG has extensively addressed the risks in the supply chain and the due diligence obligations in relation to responsible sourcing of raw materials from controversial sources and from high-risk countries. The rating agency therefore views the Four Rings as performing significantly above the industry average. This can also be seen from Audi’s performance in relation to sustainability standards in the supply chain.
In the area of product safety (e.g. crash tests) and automotive cybersecurity, the ISS ESG analysts found that Audi vehicles guarantee a high level of occupant safety.
Sustainability targets are built into the variable remuneration of members of Executive Management at Audi. In addition, Audi is also addressing the topic of corporate governance with a comprehensive code of conduct and compliance measures.

A good rating result is not just important for financial analysts and capital investors. Other stakeholders are now also placing increasing importance on good sustainability performance: for example, customers who want to buy vehicles with a clear conscience. Partner companies, applicants, employees and local residents also expect a company like Audi to fulfill its responsibilities with respect to sustainability.

The new rating result for 2024 reflects the company’s endeavors to make a valuable contribution to society and the environment in addition to its business performance. The goal is to minimize the impact on the environment and to influence society as positively as possible. For example, the company is working continuously to use resources as carefully as possible, to increase equal opportunities in the company and to improve working conditions in the supply chain.

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