Porsche

RATING

SECTOR

Automobile

WEBSITE

CONTACT

Dr. Ing. h.c. F. Porsche AG
Porscheplatz 1 D – 70435 Stuttgart

T: (0711) 911 – 0
F: +49 (0) 711/ 911 – 25777

STOCK EXCHANGE

LISTING

  • US News and World Report Best Luxury Brand  2020
  • Kelley Blue Book Best Resale Value: Luxury Brand

EMPLOYEES

35,429

CHIEF SUSTAINABILITY OFFICER

Dr. Sebastian Rudolph

AWARDS

  • US News and World Report Best Luxury Brand  2020
  • Kelley Blue Book Best Resale Value: Luxury Brand

CONTENT SOURCE

FURTHER READING

Report created by Cec Ehrhard 

Porsche

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  Overview

Company Activity

Porsche Automobil Holding SE is a Germany-based holding company that produces high quality performance cars in the automobile manufacturing industry.

The company is engaged in the holding and managing of its investments in Volkswagen AG, through which the company manages twelve motor brands from seven European countries: Volkswagen Passenger Cars, Audi, SEAT, Skoda, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN.

Porsche operates one wholly owned subsidiary, Porsche Beteiligung GmbH, and one majority owned subsidiary, Volkswagen AG.

Company Sustainability Activity

Sustainability is a key cross-cutting issue in Porsche’s 2025 Strategy. Responsibility for this lies directly with the Chairman of the Management Board. The aim is very clear: Porsche wants to be the most sustainable sports car manufacturer in the premium segment. Consequently, the issue of sustainability is firmly embedded throughout the company and broken down into four core action area:

  • Business & Customers
  • Product Responsibility
  • Environment & Energy
  • Employees & Society

In autumn 2015, the General Assembly of the United Nations adopted its seventeen Sustainable Development Goals (SDGs). The SDGs are at the heart of the 2030 Agenda for Sustainable Development, the aim of which is to reconcile economic progress, social justice and environmental compatibility. 

Highlights

Four Core Action Areas:

  • Business & Customers – The “Business & Customers” action area covers the following topics identified in the 2017 ­materiality analysis: “long-term economic ­stability”, “long-term customer relations”, “compliance”, “responsibility in the supply chain” and “digital transformation”. 
  • Product Responsibility – The Product responsibility action area covers the topics identified in 2017’s materiality ­ana­lysis, namely “Vehicle safety”, “Fuel consumption and vehicle emissions”, “Materials and sustainable raw materials” and “New ­mobility concepts”
  • Environment & Energy – The “Environment and Energy” action area constantly reviews the themes identified in the 2017 materiality analysis: “energy and emissions during production”, “environmentally compatible logistics” and “resource consumption during production”.– Energy, Emissions and Resource Consumption During Production – In ­Porsche’s 2017 materiality analysis, the ­Porsche stakeholders who are impacted ­directly or indirectly by the company’s activities assign a great deal of importance to ­“energy and emissions during production” and ­“resource consumption during production”.
  • Employees & Society – Under the “Employees & Society” action area, Porsche covers, among other issues, the important topics identified in the 2017 materia­lity analysis, namely “attractive employer,” “staff development,” “corporate co-determination,” and “occupational health and safety.”

Targets

  • One of every two Porsche vehicles will be electric by 2025

Progress

  • Since 2017, Porsche has exclusively used electricity from renewable energy sources
  • 34% Innovative mobility: innovative strength, financial performance, value for customer
  • 13% reliable partner: supply chain transparency, attractive employer, social commitment
  • -9% Go to zero: CO2 emissions – supply chain, company, products

Certificates

  • ISO 14001 (Environment Management) 
  • ISO 50001 (Energy Management)
  • EMAS (Eco-Management and Audit Scheme)

UN Sustainable Development Goals

UN SDGs Compliance

SDG 4

  •  ­Offering trainees and staff an exceptionally ­diverse programme of vocational and professional training, giving every single employee the ­opportunity to engage in systematic ­training ­tailored to their needs
  • Heavily committed to education and science, as Porsche has created Training and Recruitment Centers in Manila and South Africa, and its Mobile Education Training and Resource Units (METRU), a joint project with UNICEF

SDG 8

  • Creating jobs and respecting human rights along the entire supply chain are prerequisites for value-creating, sustainable growth
  • Porsche not only assumes responsibility for its employees and invests in their future, it also imposes strict, internationally recognized standards on its suppliers in the area of social and human rights 
  • Porsche ­supports humane working conditions while categorically rejecting any form of forced or child labour

SDG 9

  • By expanding a high-performance charging infrastructure for electric vehicles, permanently working to find innovative solutions, and trialling digital ­technologies and future trends, the company is playing an instrumental role in this field
  • Porsche and its partners organised the “Mobility for a better world” competition in the reporting year to identify ideas and technologies for sustainable future mobility

SDG 11

  • Sports car production at the main plant in Zuffenhausen is located in a mixed-use zone, surrounded by residential areas. Consequently, the company is directly confronted with the challenges posed by increasing urbanisation. This is another reason why Porsche feels a sense of duty to actively contribute to the sustainable development of cities by providing smart solutions. Resource-efficient production processes and products, as well as techno­logical and social innovation, are the key factors for the company in this regard

SDG 12

  • Consistently working to create en­vironmentally sound products that use fewer ­resources
  • Developing efficient, environmentally compatible ­production processes
  • Ethical considerations and standards take precedence along the entire Porsche supply chain as the overriding sus­tainability requirements

SDG 13

  • Porsche is embracing the challenge of pushing technological boundaries, reducing fuel ­consumption and developing innovative drive systems
  • The company now uses 100% green energy to supply the power needed for production
  • In 2019, ­Porsche’s first fully electric sports car, the ­Taycan, left the production line in Zuffenhausen. The production process for this model is carbon neutral
  • ­Porsche is making an important con­tribution to global ­climate protection and to air quality in cities.

SDG 17

  • The company is actively involved in a range of networks and is committed to sustainability initiatives. Through these collaborations, ­Porsche is supporting the transfer of knowledge for ­innovative and future-oriented ­approaches shaped around sustainability.

Evaluation

Porsche A.G. has been a C rating because the certifications do not cover the entire company. They have a lot of awards, but do not have clear objectives and progress, and have not provided data regarding their sustainability performance.

Furthermore, the company’s sustainability targets are limited with only one target being clearly defined. The company’s sustainability report does clearly list which SDGs the company aligns with.

Porsche’s lack of transparency has resulted in the company’s C rating.

Analyst Outlook: Negative

The progress the company claims to have made requires more substance and specificity, with more facts or statistics to back up their claims.

Key Points

  • On the Porsche website, the company “uses the Porsche Sustainability Index to set itself ambitious targets for the action areas, which must be reached by 2025” but these targets are nowhere to be found – Porsche needs to be more transparent with their information for consumers
  • Porsche does have certifications and awards, but there is minimal data to back their progress in terms of actual statistics and/or percentages regarding performance 
  • Porsche is still producing cars that require gasoline as its power source which inevitably harms the environment. Once the company produces solely electric cars, the company’s rating will increase
  • Volkswagen Group, the parent company to Porsche, has been in an emissions scandal back in 2015 which hinders the company’s overall sustainability reputation.

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