Trust seems to be a central theme in your approach. How do you ensure that consumers trust Volkswagen’s commitment to sustainability, especially considering the diverse range of sub-brands under the Volkswagen Group?
Trust is indeed crucial in our sustainability efforts. We understand that consumers need to trust not only Volkswagen as a group but also each of our sub-brands. To achieve this, we have integrated sustainability into the core strategy of each brand, ensuring that every brand under the Volkswagen umbrella adheres to the same high standards of environmental and social responsibility. This alignment is reflected in our management processes and targets, which are consistent across the group.
Moreover, we communicate transparently with our consumers about our progress and challenges. This includes regular updates on our KPIs and the steps we are taking to meet our sustainability goals. By being open about our journey and the concrete actions we are implementing, we build trust and demonstrate our genuine commitment to a sustainable future. Additionally, we are investing significantly in training our workforce to transition from combustion engine expertise to electromobility, ensuring that our employees are also ambassadors of our sustainability mission.
You mentioned that zero emissions are not enough and that industries need to go beyond that. Could you elaborate on the practical steps Volkswagen is taking to achieve this ambitious goal?
Achieving beyond zero emissions requires a multifaceted approach. At Volkswagen, we are focusing on several key areas to drive this transformation. First, we are heavily investing in electric vehicles (EVs). By 2035, we plan to sell our last combustion engine in Europe. This transition is supported by the launch of numerous electric models across our brands, including Audi, Porsche, and Volkswagen itself. For example, we have announced over 60 new electric models globally by 2030, with significant launches in China and Europe.
In addition to EVs, we are expanding our charging infrastructure. In Europe alone, we have more than 700,000 charging points and are working towards 40,000 fast charging stations worldwide by 2025. We are also collaborating with partners to install home photovoltaic systems and wall boxes, enhancing the convenience and accessibility of EVs for our customers. This holistic approach not only promotes the adoption of electric vehicles but also supports the broader ecosystem necessary for sustainable mobility.
With electric vehicles, battery production is a major concern for sustainability. How does Volkswagen ensure responsible sourcing and reduce emissions throughout the supply chain?
Ensuring sustainability in our supply chain, particularly for battery production, is a critical focus. We adhere strictly to legal, social, and ecological standards and have dedicated efforts within our procurement and legal departments to oversee these responsibilities. Our suppliers, spread across 100 countries, are managed with stringent standards. For instance, we follow the IRMA standard for mining, aiming for 75% global compliance, which is a benchmark for responsible sourcing.
Transparency and accountability are key. We publish a critical materials report and maintain a rating system for our suppliers, targeting 95% of our suppliers to achieve an A rating by 2040. This is part of our broader strategy, which includes continuous monitoring and improvement of our supply chain practices.
Could you explain how the Regenerate Plus initiative aligns with Volkswagen’s overall sustainability strategy and its four dimensions?
Regenerate Plus is our vision of becoming a nature and society positive mobility provider. This initiative is structured around four dimensions: nature, people, society, and business. Each dimension has specific KPIs and targets that guide our actions and measure our progress. For instance, in the nature dimension, we focus on reducing emissions and promoting biodiversity. In the people dimension, we invest in training and development to equip our workforce for the transition to electromobility.
Our business dimension emphasizes sustainable growth, including investments in circular economy practices and green technologies. Society, as a dimension, involves our role as a responsible corporate citizen, ensuring that our operations positively impact communities and adhere to high ethical standards. Through Regenerate Plus, we aim to integrate these dimensions into every aspect of our operations, fostering a holistic approach to sustainability that goes beyond mere compliance and aims for a positive net impact on the environment and society.
Do you see hydrogen playing a significant role in the future of mobility alongside electric vehicles?
While the future of mobility will predominantly be electric, hydrogen has potential in certain areas. For passenger cars, electric vehicles are currently the best solution for reducing emissions. However, for other sectors like shipping and heavy-duty transport, hydrogen and alternative fuels like ammonia and methanol might be more suitable. It's important to remain open to various technologies as they evolve.
At present, our focus is on electrification because it offers the most immediate benefits in terms of emission reductions for passenger vehicles. This doesn't mean we disregard hydrogen; rather, we view it as complementary to our electric strategy, particularly for applications where electric solutions are less feasible. Our goal is to be flexible and adaptive, ensuring that we are prepared to integrate the most effective technologies as they develop.
What are the main challenges Volkswagen faces in achieving its sustainability goals, and how are you addressing them?
Balancing investment and time is one of the main challenges in our sustainability journey. We need substantial funds to accelerate our transition while ensuring economic stability. For example, we have advanced our net carbon neutrality target for production to 2040 and are pushing for all our production units worldwide to use green energy for external power supply by 2030. This requires significant investment but is essential for our long-term sustainability goals.
Another challenge is bringing our around 670.000 employees on board with our vision. This involves extensive training and communication to ensure everyone understands and is committed to our sustainability objectives. We conduct regular team meetings, informational sessions, and initiatives to keep our workforce engaged and informed. Despite these challenges, the strong support from our board of directors and significant investments in sustainability initiatives give us the momentum to drive meaningful change.
How do you maintain a consistent sustainability message across all Volkswagen’s sub-brands, considering their individual agendas and market positions?
Maintaining a consistent sustainability message across all sub-brands is achieved through integrated management processes and aligned targets. Each brand under the Volkswagen Group adheres to our overarching sustainability strategy, which is embedded in their individual operations and goals. This ensures that while each brand may have its unique market position, they all contribute to our collective sustainability objectives.
We also emphasize transparent communication and shared values across the group. By aligning our vision and KPIs, we ensure that every brand operates with the same commitment to sustainability. Regular updates and collaborative efforts help maintain this consistency, ensuring that all sub-brands move in the same direction towards our common goals.
