Sustainability at Volkswagen:Volkswagen Green Finance Framework
Investor Update March 5th, 2020

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Disclaimer
The following presentations contain forward-looking statements and information on the business development of the Volkswagen Group. These statements may
be spoken or written and can be recognized by terms such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “will” or words withsimilar meaning. These statements are based on assumptions, which we have made on the basis of the information available to us and which we consider to berealistic at the time of going to press. These assumptions relate in particular to the development of the economies of individual countries and markets, theregulatory framework and the development of the automotive industry. Therefore the estimates given involve a degree of risk, and the actual developments may
differ from those forecast. The Volkswagen Group currently faces additional risks and uncertainty related to pending claims and investigations of Volkswagen
Group members in a number of jurisdictions in connection with findings of irregularities relating to exhaust emissions from diesel engines in certain Volkswagen
Group vehicles. The degree to which the Volkswagen Group may be negatively affected by these ongoing claims and investigations remains uncertain.
Consequently, a negative impact relating to ongoing claims or investigations, any unexpected fall in demand or economic stagnation in our key sales markets,
such as in Western Europe (and especially Germany) or in the USA, Brazil or China, and trade disputes among major trading partners will have a corresponding
impact on the development of our business. The same applies in the event of a significant shift in current exchange rates in particular relative to the US dollar,
sterling, yen, Brazilian real, Chinese renminbi and Czech koruna.
If any of these or other risks occur, or if the assumptions underlying any of these statements prove incorrect, the actual results may significantly differ from thoseexpressed or implied by such statements.
We do not update forward-looking statements retrospectively. Such statements are valid on the date of publication and can be superseded.
This information does not constitute an offer to exchange or sell or an offer to exchange or buy any securities.

2
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Speakers Ralf Pfitzner – Head of Sustainability
 Tobias Heine – Head of Together4Integrity Dr. Maren Charisius – Head of Divisional Compliance Office Volkswagen, Seat,
Skoda
 Barbara Lamprecht – Coordinator Business and Human Rights
 Michael Lange – Spokesperson Central Coordination Monitor
 Bjoern Baetge – Head of Global Markets

3
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Ralf Pfitzner – Head of Sustainability

VOLKSWAGEN’S APPROACH TOSUSTAINABILITY AND DECARBONIZATION
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Transport Sector accounts for 14% of global GHG Emissions
In the EU, transport is the only sector with emissions increase since 1990
Global GHG-Emissions by sector

Trends in EU by sector since 1990 [MT of CO2e]

Buildings

Other energy

6%

10%

Industry
2.000

25%

Energy supply

Waste

Transport

International aviation

Residential/commercial

International shipping

Agriculture

1.500Electr./heat
production

21%

1.000

14%

24%
Agriculture, Forestry; Land use

Transport

500

0

1990

1995

2000

2005

2010

Source: IPCC 2014, EEA 2018
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

2015

5

Volkswagen will be part of the solution, our focus is on climate change mitigationand decarbonisation
DIMENSIONS OF SUSTAINABILITY AT VOLKSWAGEN
Profit: Strategy &Management

FOCUS AREA: DECARBONIZATION / CLIMATE CHANGEMITIGATION
Why it matters to Volkswagen:

SUSTAINABILITY
VOLKSWAGEN
GROUP
Planet / Environment:
Products, Services &Production

Because of our significant influence andcommitment to responsible action (1% of
global CO2- emissions affected by ourpassenger car portfolio)

Because of rising stakeholder expectations

Because decarbonization delivers directbusiness value

People &Responsibility
6
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Vision and target for decarbonization are derived from Paris Agreement, i.e. tolimit global warming well below 2°Celsius
PARIS CLIMATE AGREEMENT 2015

VOLKSWAGEN GROUP DECARBONIZATION PATH UNTIL 2050

• Global warming well below
2° Celsius• Radically reduce CO2eemissions by 2050
• Defines remaining global
carbon budget

Passenger cars2)

FOCUS PROGRAM
VISION 2050

TARGET 2025
CO2e-reduction over lifecycle
according to Paris Agreement

Volkswagen and its products
are CO2e-neutral

PUBLIC COMMITMENT BY VOLKSWAGEN

Dr. Diess„There is something greaterthan meeting fleet targets:climate protection. […] It isclear to me: We have to limit
global warming to 2°
Celsius.“1)CO2e-budget
Volkswagen
2015
Baseline

2025

2050

1) Süddeutsche Zeitung 11.10.2018, 2) Passenger cars including light duty vehicles

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

7E-mobility is the only way forward to achieve climate targets

rather later

2035

2040

rather earlier

2045~10-15%10-20%

10-25%

10-20%~60%

10-25%BEV• Our Target:
CO2 neutral fleet by 2050

~70%

FCEV

>85%

PHEV (eFuels)

conventional ICE• Increase share of future technologies – Focus E-Mobility• Implementation of further measures to become CO2 neutral

8
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

E-mobility transformation is reflected in our corporate planning
PARIS IMPLICATIONS AND TRANSFORMATION PATH

Conventional platforms

SOP
SOP

Conventional projects

EOP>10 years
Fleet renewal„Zero Emission“in the existing fleet

Broad product portfolio

Transformation

CO2 neutral cars

CO2-Emissions

New business model

− BEV

2020

2050

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

9Primary energy demand is lowest with BEVs
PRIMARY ENERGY REQUIREMENT IN WH/KM FOR LIFECYCLE

#1

1.500

1.000

500

Diesel1)

Gasoline1)

Full Hybrid(Gasoline)1)

Gasoline(eFuel)Gas(eCNG)

FossilFull Hybrid(eFuel, Gasoline)

Fuel Cell(eH2)

Plug-In Hybrid Battery (BEV)(eFuel, Gasoline)

Regenerative

THE MODEL OF THE ENERGY BALANCE LIFECYCLE
Vehicle development

Vehicle production

Fuel production

Fuel consumption

Recycling

Example: A-Segment 200.000 km, CO2 emissions & energy over lifecycle of vehicle and fuel1) not fully comparable with energetic base, not CO

2 neutral

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

10BEV today already first choice in CO2 over lifetime – example current Golf class car
0

20

40

60

80

100

120

140

160

180
g CO2eq/km

PetrolDieselCNG
PHEV(EU 28 Mix, Petrol)
BEV(EU 28 mix)
production (cradle2gate)

Fuel Supply (well2tank)use (tank2wheel)

Source: Volkswagen K-GEGU 2019, “Klimabilanz Antriebe”; Compact Car (Golf-class),
LCA, use phase acc. to WLTP, 200.000 km life

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

11

A group wide target of 30% CO2e reduction/vehicle over lifecycle for Volkswagen
Group was decided - in line with the Paris Agreement

1) Decarbonization index (DCI), up to and including 2020, European fleet legislation will be complied with on the basis of the New European Driving Cycle (NEDC). The DCI’s European fleet emissions have therefore been calculated on the basis of the NEDC. From 2021, the NEDC target
value will be changed into a WLTP target value through a process defined by lawmakers. When the target values change in 2021, the DCI’s European fleet emissions will also be calculated in accordance with the WLTP, as a result of which fleet emissions in Europe are expected to riseby around 20%., 2) Derived using science-based target methodology on the basis of the two degree target, 3) major passenger-car manufacturing brands and light commercial vehicles in the Europe (EU-28, Norway and Iceland), China and the US regions.

12
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

The decarbonisation programme covers measures in all areas of the life cycle.
Priority is to avoid and reduce CO2. Compensation covers unavoidable emissions

In-house

Fuel Supply

Driving
Emissions

END-OF-LIFE

OTHER

Recyclinge.g. mobility
solutions, travel

MAIN LEVERS
Green power;
New material
concept

CUSTOMER
BATTERY

ENERGYEFFICIENCY

OFFER OFGREEN ELECT.
& FUELE-STRATEGYRECYCLING &2ND LIFE

MOBILITY
SOLUTIONS

Green power;
Closed loop
recycling

LOW CARBONCOMMODITIESRENEWABLE
ENERGYSUPPLYEFFICIENTPOWERTRAIN

TRAVEL &COMMUTING

Compensate

Supply Chain

USE

ReducePRODUCTION

Avoid

HOW WE ACTGroup decarbonisation target

WHERE WE ACT

1Effective andsustainable
methods to avoid
CO2 e.g. via energy
efficiency

2

Switch to renewablesources of energy inall steps of thevalue chain

3

Offset unavoidable
residual emissions,e.g. via investments
in forest
conservation andreforestation

13
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

ID.3 as first showcase for decarbonization along the value chain
Objective
zero-emission-

CO2-neutral production

vehiclesincl. supply chain

VW supply
promiseB

Vision:

100 %CO2-neutral
e-mobility

CO2-neutral hand-overto customer in retailCustomeroffering

A
100 % green powerin high-power chargingnetwork EU

Elli Green power contracts
for home-charging

Customer

Offers for CO2-free
use phase
14
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainability in the supply chain: embedded along “prevent, detect, react” cycle
Embedding Sustainability as nomination
criteriaEmployee Rights

Transparent Business Relations



Fair Market Behaviour

Responsible Raw Material Procurementn-tierWorkshops & Supplier DayseLearningClassroom Trainings



React

 Evaluation of Sustainability Performance Risk-based in-depth analysis

Capacity and Awareness building No award / contract for potential
Business Partners with a negative SRating irrespective of price Implementation via policies & guidelines,
processes and IT-Tools

 Ad-hoc Process for systematic revision of serious sustainability non-compliance issues
 Define and tracking Corrective Action Plans resulting from Audits & Supply Chain Mappings
 Establishing Material- / parts-specific sustainability topics in specification documents

15
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

DetectPrevent

Embedding Sustainability in Contracts & Specs
Environmental Protection

Transformation of an Industry needs independent, critical advisory by
Stakeholders: The Volkswagen Sustainability Council

Topics••Founded in 2016 as independent advisors to the Board ofManagement
Currently 9 members: Georg Kell, Prof. Dr. Gesche Jost, Margo Oge,
Prof. Dr. Otmar Edenhofer, Connie Hedegaard, Elhadj As Sy, Yves
Leterme, Michael Sommer, Prof. Ye Qi

Focus areas•••

Sustainable Mobility and Environmental
Protection
Social Responsibility and Integrity
Future of Work and Digitalization

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

16Summary

Decarbonisation is our key sustainability priority @Volkswagen Group
Our ambitious decarbonisation program covers the entire life cycle.
Clear priorities are set: avoid & reduce CO2-emissions, compensate non
avoidable emissions
Supply chain Sustainability is essential for a resilient supply chain and our
reputation
Stakeholder Engagement is important in our industry’s transformation

17
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Tobias Heine – Head of Together4Integrity

TOGETHER4INTEGRITY
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

What does T4I
stand for?

Volkswagen as rolemodel for integrity

ECI is the foundation and T4I the enabler toembed I&C culture in our company's DNA and achieve a long term change

1

T4I bundles all compliance, integrity, risk management andculture initiatives

2

T4I ensures consistent transmission of relevant initiatives inour entities worldwide

3

T4I provides transparency on current degree of
implementation and target achievement

4T4I ensures a strong Tone from the top and strives for thecommitment of the management

5

T4I focuses on empowerment of employees and crosshierarchical and open dialogue
19

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Implementing Processes
Roll-out Plan for 689 entities following
uniform Entity Journey
Implementation of 11 Key Initiatives ofToolbox in all relevant entities worldwide
Tracking implementation in worldwide tool
to ensure anchoring of Integrity acrossVolkswagen
Regular status updates in local boards andGroup Board

Inspiring people
Inspiring of leaders and employees formindset and behavior change
Inform, convince, and motivate to do theright thing through cross-hierarchicaldialogue
Personal involvement through e.g., Ramp-up
Sessions, Conventions, I&C trainings, Rolemodel Program, KulTour, Stiba Team
discussions
Measurement of progress through(Recurring) Perception Workshops

20
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

11 Key Initiatives help to anchor Integrity and Compliance across the organization
11

10

Environmental Compliance9

Product Compliance

Adherence to environmental
rules and standards

Anchoring compliancein product development

1

Human Resources Compliance
Policies & Procedures

Anti-Corruption
Framework and measures toprotect from wrong decisions
and inappropriate conduct

8

Integrity & Complianceembedded in employee life
cycle across workforce2

3

Code of Conduct

Business Partner Due Diligence

Integrity ProgramRisk-based and transparent
process for checking integrity

Integrity on par with strategic
priorities

Promotion of compliance asfoundation of Group businessconduct

7

Merger & Acquisition (M&A)
and Compliance for Noncontrol shareholding (NCS)
Principles and responsibilities
for M&A transactions

6

5

4

Whistleblower System &Incident Response

Internal Compliance Risk
Assessment

Risk Management andControls

Reporting and investigation ofsuspected misconduct

Identification, evaluation andmitigation of compliance risk

Transparent and appropriate
dealing with risks

21
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainable implementation in all 689 Volkswagen entities until 2023

Roll-out 2019

End of 2021:~689 entities

217

Continuous implementation support(incl. 151 high risk entities)

Dedicated support of
exponentially growing
number of entities# entities

Dec 2019

Jan 2018

End of 2019:217 entities

Jan 2020

Jan 2022

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Jan 2024
22

More than 55,000 employees were personally involved in dialog formats until today
1,300 team speakers,>160 board speeches

foremen and managers
reached in 109 Integrity
Garage sessions>8,000 employees werepart of T4I Ramp-up
Sessions in entities
across 34 countries

about Integrity andCompliance

Board ofManagement
All Employees

Management

7,600 managers at

Convention
Trainings about
Integrity, Culture
and Compliance>7,700 managers andemployees participated in
T4I Perception Workshops
across 36 countries

28,000 leaders atworldwide Volkswagen
Conventions
23

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Dr. Maren Charisius – Head of Divisional Compliance Office Volkswagen,Seat, Skoda

COMPLIANCE
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Overview on Compliance Elements
Compliance objectives

Definition of an overarching Compliance strategy and identification of fundamental risk
areasCompliance risksGroup-wide assessment of significant Compliance risks by ICRA and definition ofstandardized Compliance Measures Set for every risk profile

BP Management

Group-wide holistic Compliance Management for Business Partners including diligent
selection (BPDD), Contractual Obligations, BP Code of Conduct, BP Training, ComplianceDialogues and BP Audits

Organization

Staffing of an adequate, business dedicated and independent group-wide Compliance
Network with central oversight, veto rights in Hiring, Compensation and Sanctioning ofCompliance Officers

Communication & training

Training & information for employees and relevant external 3rd parties on core Compliance
topics, roles & responsibilities

Monitoring & improvement

Introduction of regular reporting and status tracking to quickly identify improvement needs

Culture & values

Strengthening of the company's culture & values by rollout of a global Code of Conduct andclear Tone from the Top from leadership

M&A Compliance

Compliance in M&A processes and post-merger integration
Compliance Concept for non-controlled shareholdings
Real Estate and industrialization projects

Whistleblower System

Fair, transparent and group-wide Whistleblower System protects the company, the persons
implicated and the whistleblowers.

Best Practice Exchange

Benchmark discussions with leading companies across industries

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

25

The 7 Core Elements of the Compliance Management System of Volkswagen
Compliance Culture & Values

Compliance Monitoring & Improvement►

Adequate monitoring and review►

Management responsibility for improvement

7
Compliance
Monitoring &Improvement

Compliance Communication & Training►►

Employees/relevant third parties are informed 6
on roles, responsibilities and compliance core
topics1Compliance
Culture &ValuesCompliance
Communication& Training

ComplianceObjectives►

Fundamentals laid out in the Group-wide Code of Conduct►

Leadership behavior of (top)management („tone from the top“)►

Accountability for and sanctioning of misconduct

Compliance Objectives

2

Whistleblower Hotline, consultation process

Compliance Organization►

Definition of roles and responsibilities(functions), structures and procedures►

Adequate resource allocation►

ReportingCompliance
Organization

5

Compliance
Risks
Compliance
Program &Processes

Compliance Program & Processes

4

3

►

Definition of objectives to be achieved (risk areas;
TOGETHER 2025) by compliance management►

Defining relevant areas and the requirements to beachieved for compliance risk and management
areas

Compliance Risks►

Assessment of significant risks and mitigation need►

Participation in ICRA and local risk assessments (ifapplicable)►

General compliance program generated from Group Compliance core topics to prevent, detect and respond to proper
risks and events►

Defined by Group Compliance Focus Areas and risk-based compliance measures (Group/local)

Compliance key topics: Corruption, Money laundering, Embezzlement, Fraud, Investigation of Compliance violations of employees, Human Rights

26

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Barbara Lamprecht – Coordinator Business and Human Rights

BUSINESS AND HUMAN RIGHTS
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Using the existing compliance management system for implementing
business & human rights according to UN principles
7 Compliance Monitoring & Improvement• KPIs• Ongoing human rights reporting and ranking• Continuous improvement

1 Compliance Culture & Values• Legal stocktaking• Basic business & human rights
document and policies

6 Compliance
Communication& Training• Training concept• Communications concept

2 Compliance Objectives

5 Compliance Organization• Defined responsibilities• Organizational structure• Network management
4 Compliance Program & Processes• Operatingmodel• Grievance• Consultation • BPDD
mechanisms
function• List of salient business & humanrights issues• List of opportunities (optional)

3 Compliance Risks
Integration of business &human rights risk
into CMS

Volkswagen Group Compliance Management System
UN Elements of Business & Human Rights due diligence

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

28Starting point is a Business and Human Rights Risk Assessment, correlating bothcountry and business model risks
Business Model Risk

Business model risk exposure

Scoring model
High

•
•
•

2

Production
Logistics
Mobility

Ex.: Sales
in China

1Country risk exposure= medium
= low

•

•
•

Ex.: Realestatein France= highMed.

1 Ex.: Sales in China
2 Ex.: Real estate in France

Low

Engineeringandtechnology
Services
Real estate

•
•
•
•
•

Sales
Consulting
Financialservices
Investment
OthersCompliance Scope 2019: 647 Entities• Status: Compliance scope• Legal status: Registered or in formation,
but not in liquidation• Country information: Especially business& human rights country risks• Business models: Classified regarding
higher human rights risk exposure,category overview:• Additionally: New entities in high risk
countries increase scoring

Country Risk on the basis of Maple Croft’s meta Index
Maplecroft business & human rights
upfront country risk categories:

RussiaCanada

EU

USA

China

TurkeyMexicoIndia

South Korea
TaiwanThailand
Malaysia

Low (>7.5-10)

Australia

Extreme (0-2.5)

BrazilArgentina

South Africa

Medium (>5-7.5)
High (>2.5-5)

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

29

Risk specific measures for each entity mitigates risks
BHR Integration
Low

Medium (additional measures)

Integration into existing policies
where applicable

High (additional measures)
Plus explicit BHR policy commitment

BHR compliance risks
Low

Medium (additional measures)High (additional measures)

BHR incident management process
in place

BHR risks and mitigation measuresgenerally identified, for example
using the Group assessment(recommendation)

BHR risks and mitigation measuresgenerally identified, for example
using the Group assessment(mandatory)

Medium (additional measures)High (additional measures)

BHR monitoring & improvement
Low
Entity prepared to support selectedGroup activities for BHR monitoring& improvement30
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Bjoern Baetge – Head of Global Markets

VOLKSWAGEN GREEN FINANCE
FRAMEWORKThe information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Summary of the framework and second party opinion
Use of Proceeds – Clean Transportation• Projects related to the manufacture of electric vehicles• Dedicated e-charging infrastructure

Project Evaluation and Selection• cross-departmental Green Finance Committee responsible for overseeing theprocess of selecting, evaluating and monitoring Eligible Green Projects• look-back period of up to three preceding full fiscal years from the date ofissuance

Management of Proceeds• Allocation for the Eligible Green Project Portfolio which matches or exceeds
the balance of net proceeds from its outstanding Green Debt Instruments• Unallocated proceeds can be invested in cash or other liquid marketable
instrumentes

Reporting• Yearly updated reporting with limited assurance on use of proceeds• Impact metrics such as Life Cycle Assessment

32
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Key Messages

Decarbonization is our key sustainability priority at Volkswagen Group

Volkswagen is fully committed to its corporate responsibility

Incorporate Green Debt Instruments to the funding strategy to align it with our
mission of becoming CO2-neutral by 2050

33
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Appendix
Sustainability at Volkswagen:Volkswagen Green Finance Framework
Investor Update March 5th, 2020

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

VOLKSWAGEN’S APPROACH TOSUSTAINABILITY AND DECARBONIZATION
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Customers and markets must still be prepared for e-mobility
Vision of
CO2 neutral mobility

Portfolio transformation
at all brands

Customers & Markets
Customers
Customer readiness
Public awareness

2017

2025

2030

Positive image&
Commitment to the goals ofMarkets

the Paris Climate Agreement
CO2 neutral existing
fleet in 2050

Supportive regulations
13x

4x

1x

Financial incentives
Sufficient Charging
Infrastructure
42

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

CO2 fleet targets have changed product profitability
Profitability

BEV
ID.

ID. Crozz

ICE
Golf

T-Cross

PassatTiguanIMPACT ON PRODUCTDECISIONS: TRANSITION PERIOD: ICES STILL
MORE PROFITABLE
 RISING COSTS OF CO 2
COMPLIANCE NEGATIVELYIMPACT ICE PROFITABILITY BEVS NECESSARY FOR CO 2
COMPLIANCE INCREASING VOLUME OF BEVS
DRIVES PROFITABILITY

without CO2-impact
including. CO2-impact

CO2

43
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

To handle the complexity of transformation a focused drive strategy is necessary
Energy Source

Oil / Natural gas

Energy carrier

Fuel/
DieselNatural Gas(CNG)

Internal Combustion Engine

Drive

(ICE)

Biomass
BioFuel

BioMethane(BioCNG)

Internal Combustion Engine(ICE)

Eletricity
eFuel

eCNG

Internal Combustion Engine(ICE)

eFuel+
Electricity
ICE +
Drive

eH2+
Electricity

Electricity
E-Drive

FuelCellas PHEV(BEV)(PHEV)

eH2
FuelCell(FCEV)(FC-PHEV)

Not CO2 neutral#1
Limited amountWell-toWheel

Energydemandvehicle use and fuelproduction<10% Demand transport sector

1251/1109
Wh/km

1030

Wh/km

High energy demand
Not locally emission free

470/434
Wh/km

184

Wh/km

333

Wh/km

494

Wh/km

Focus technologies Volkswagen AG
44

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

The target of Roadmap E Enabler is to prepare the markets fore-mobility with focus on three main categories
Indirect Enablers
1|
2|
3|

ApproacheMobility
Awareness
Financial
AttractivenessCharging
InfrastructureBlue Print

Market involvement

2018

2019

Stakeholder map

Retail charging

Company car tax

Awareness

Source: Roadmap E Enabler Project TeamThe information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

45

Influence of energy mix on CO2 Profile of electric vehicles
Situation as of 201746
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Carbon Footprint of E-Golf vs. Golf Diesel
Production

Recycling

Use (200,000 km)

30

t CO2-eq

25
20
15
10
5
0

0

50.000100.000
Golf Diesel

150.000

200.000

e-Golf (EU Electricity Mix)
47

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainability at Volkswagen – Our Approach at Strategy Group Procurement
Embedding Sustainability Expectations inContracts & Specifications

n-tier

PREVENT

Environmental Protection
Employee Rights
Transparent Business Relations
Fair Market Behaviour

Responsible Raw Material
Procurement

Capacity and Awareness building







Workshops & Supplier Days
eLearning
Classroom Trainings
48

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainability at Volkswagen – Our Approach at Strategy Group Procurement
Embedded Sustainability as anomination criteria Groupwide Process

n-tier

DETECT Evaluation of Sustainability Performance Risk-based in-depth analysis
 No award / contract for potential Business
Partners with a negative S-Rating,irrespective of price Implementation via internal
policies & guidelines, processes
and IT-Tools
49

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Embedding Sustainability in Sourcing Award Decision Process

New Request

S-Rating from Database
Assessment

Rating for
Nomination

A

Nomination Possible

B

Nomination Possible
with Additional Measures

C

Nomination not Possible

Self-AssessmentOn-site evaluation / AuditsConsideration of Further Risk Factors(country, industry, negative press, etc.)

Topics include general company
management, Working Conditions andHuman Rights, business ethics,
Environment, supplier management,
Responsible Sourcing of raw material
50

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainability at Volkswagen – Our Approach at Strategy Group Procurement

Ad-hoc Process for systematic revision ofserious sustainability non-complianceissuesn-tier





REACT

Define and tracking Corrective Action Plans
resulting from Audits & Supply Chain
Mappings
Establishing Material- / parts-specificsustainability topics in specification
documents

51
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Sustainability at Volkswagen Procurement – The Challenge of TransparencyoHighly complex productsoSupply chains are global, diverse &volatile(40,000+ suppliers, up to 9 tiers)o100% SC Transparency andtraceability simply not possible
currently

52
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Responsible raw material sourcing – Our approach

1.

2.

3.

Mapping,
Risk
Assessment

Responsible
Sourcing
Roadmapsfor each raw
material

Impact &Communication(Website, DD
Report, …)

Implementation of
the OECD Guidance

53
The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

Responsible raw material sourcing – Our Focus

16

Critical raw
materials

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America, Canada, Japan or Australia.

54