AUDI AG 85045 Ingolstadt Germany
- #44 World’s Most Valuable Brands 2020
CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
Audi is a German company that manufacturers and designs luxury automobiles across the world. Audi was founded in 1909 by August Horch, who was an engineer during the Auto Union era. The four rings of the logo represent the four car companies that came together to create the present day Audi.
Audi’s slogan is “Being Ahead through Technology” which the brand is hoping to hold true in the upcoming years with the rising popularity of electric vehicles. Audi automobiles range from sport cars to compact to SUV. The company takes pride in innovation, as Audi was the first company to implement LED DRLs (daytime running lights) in their distinctive shape.
Company Sustainability Activity
“Sustainability has been a central corporate goal and an absolute necessity for ensuring future success for quite some time. For Audi, it means [their] future viability and it represents a fundamental basis for acceptance and relevance – thanks to sustainable products from a sustainable company. But how will Audi achieve this new edge? By having the correct self-perception and applying the right strategy.”
- Since 2018, the plant in Brussels has served as a role model – as the world’s first certified carbon-neutral large-scale production plant in the premium segment
- By the end of 2019, 130 stations were operating along Europe’s main transport arteries and highways
- Reduction in disposable waste, freshwater consumption, CO2 and VOC emissions, as well as overall energy consumption at the production sites by 25% per reference unit (base year 2010)
- Achieve net zero CO2 emissions across the entire company by no later than 2050
- Reduce carbon foot- print by 30% by 2025
- Introducing 30 electric models to the market by 2025; they are intended to make up approximately 40% of the brand’s sales
- Offer carbon-neutral premium mobility in the long term
- In the medium term, deliver the strongest lineup of electric models among premium competitors. The goal is to have over 30 electric vehicles by 2025, of which 20 will be fully electric cars, which emit no CO2 emissions when operated locally in electric mode
- By the middle of the coming decade, electrified vehicles will account for 40% of Audi’s global annual sales
- By 2025, reduce the carbon footprint by around 30% across the entire life cycle
- The target for 2020 is to have 400 charging stations throughout Europe
Climate Reform & Consumption
- Reduce environmental impact across the entire life cycle compared with the predecessor models
- Prepare product-based life cycle assessments for new vehicle models; validate and certify life cycle assessments; publish the data
- Significantly reduce fuel consumption for every new vehicle compared with the predecessor model. Switch 70% of new vehicles sold with combustion engines to mild hybridization or plug-in hybridization
- Extension of the product portfolio to a total of five electric cars
- 40% of new Audi vehicles feature an electric drive (availability of at least one battery electric vehicle for each core segment)
- Since 2015, that of the average net weight of an end-of-life vehicle (ELV), at least 95% be subject to reuse or recovery relative to the total number of ELVs in a given year.
- Provide competitive charging lineup for electric Audi models 2020 for domestic charging, including:
→ Charging equipment
→ Smart charging functions, e.g., photovoltaic-optimized charging
→ Joint projects on home energy management systems (HEMS) – Innovative technologies
- Set up and operate cross-site charging infrastructure at Audi sites for the start of production (SOP) of the Audi etron; additional needs-based expansion for processes in the plant as well as providing 10% electrified parking lots for company cars and employee leasing vehicles by the middle of 2022
- Promote the development of synthetic liquid fuels together with suitable partners with an additional focus on the technology readiness of products within AUDI AG
- Integrate a CO2 capturing plant (capturing CO2 from the air) in a power-to-gas or power-to-liquid plant
Biodiversity & Water
- A large biodiversity project can be witnessed on the Audi plant premises in Münchsmünster near Ingolstadt, where Audi has turned 17 hectares of the total 31-hectare site over to nature. More than 110 plant species have flourished there and more than 90 species of wild bees have found a new habitat
- Commissioned a new process water supply center in 2019. Together with the former treatment plant, a large proportion of the wastewater generated at the site can be fed into a cycle and treated for reuse, thus saving up to 300,000 cubic meters of fresh water each year
- ISO 14001
- ISO 50001
UN Sustainable Development Goals
UN SDGs Compliance
- Development of driver-related causes of accidents involving personal injury in road traffic data. This information helps the design of the automobiles to make them safer and more reliable.
- The Audi Academy’s qualification programs prepare employees for future challenges. The courses offered are geared to Audi’s human resources and development needs, and to the future topics of the industry. Audi will invest more than half a billion euros in professional development between now and 2025.
- Audi uses efficient processes and a water cycle at its production sites for the sustainable production of its cars. The San José Chiapasite in Mexico is an example of an agship project where Audi produces cars almost completely free of wastewater. A water treatment plant collects 100% of the wastewater generated here, cleans it, and feeds large quantities back into the water cycle at the plant.
- To ensure sustainable prevention of corruption, the process of dealing with grants and avoidance of conflicts of interest and corruption were uniformly enshrined in a Volkswagen Group Policy for the first time. AUDI AG incorporated this into a new corporate policy, which replaced the previous guideline. To give Audi employees training on relevant corruption topics, interactive web-based training was introduced to all divisions in 2016.
- Audi is working with cities around the globe on vehicle-to-infrastructure (V2I) service to increases efficiency, convenience, and safety in traffic
- When it comes to innovation, Audi has been setting records for years. The company registered more than 1,200 patents in the 2019 year under review.
- Audi has developed a menu with data privacy settings for their Audi models. Audi consumers can activate or deactivate their personal online services based on their data use, and make targeted decisions on data collection options.
- Audi successfully pursued a strategic research partnership for battery recycling. The result: over 90% of the cobalt and nickel from the high-voltage batteries of the Audi e-tron can be recovered.
- Audi is an active member of the Global Battery Alliance, which aims to establish a sustainable value chain for batteries, from resource mining through to sustainable recycling.
- Audi plants in Brussels and Gyor are leading in environmental reform: in Brussels all production processes as well as all other emissions generated at the plant are covered by the site either through renewable energies (around 95%) or through global environmental projects to offset the emissions. The Gyor plant will become the second Audi site to operate with net-zero carbon emissions in 2020.
Secondary SDGs: 5, 10,15
Audi has an extensive sustainability report that provides the company’s targets and progress. The report does include SDGs, but the report is somewhat sporadic and hard to follow.
Over time, the transition from tradition gasoline powered car to fully electric powered cars will transform the company sustainability rating. Audi does not have many certifications, listings or awards which is why they are given a “C” rating.
Analysis Outlook: Neutral
Audi is given a neutral outlook because although they have clear targets and progress, they do not have many certifications or awards to back their progress
- Clear targets, somewhat clear SDGs
- Minimal to no certifications or awards
- Clean up supply chain to reduce GHG emissions and become a more sustainable company