How is sustainability in the supply chain

Sustainability in the supply chain

Volkswagen has understood the elementary urgency of climate change and is therefore committed to achieving the goals of the Paris climate summit. In order to achieve the goals we have set, we have to avoid or reduce greenhouse gas emissions over the entire life cycle of our products. Basically, a distinction can be made between the three phases of the supply chain, production and use phase along the life cycle of a vehicle. In procurement, we focus on reducing emissions in the supply chain. The supply chain is becoming increasingly important here, as the emissions caused by the switch to electromobility are shifting away from the usage phase to production and the supply chain.

In order to initiate targeted measures to reduce greenhouse gases at suppliers, we identify the largest emission sources along the supply chain based on the life cycle assessment data of our vehicles. Building on a hotspot analysis, joint roadmaps are developed in numerous workshops with suppliers from relevant industries in order to coordinate and pursue goals and measures for CO₂ reduction.

For electromobility, the biggest driver of emissions in the supply chain is the HV battery cell. That is why we have stipulated the use of renewable energies for the production of our HV battery cells as a contractual requirement. Together with our strategic battery cell manufacturers, we will delve deeper into the production of the subcomponents in order to find further possibilities of CO in their very energy-intensive production2-Avoid to use.

In general, due to the energy-intensive production, all major aluminum volumes are in our focus. Through multi-layered measures, such as the use of green energy in aluminum production and the proportionate use of recycled secondary material, the CO2- Output in the production of the primary material required can be minimized. The closed-loop process is already being used in several European locations, which collects sheet metal scraps in the factories and returns them to the aluminum manufacturers.

Other materials such as steel, plastics and rubber are also part of our group-wide decarbonization roadmap, which summarizes all measures taken and planned and controls the fastest possible implementation with the involvement of the brands and departments of the group. The effectiveness of all CO2-Reduction is included in the so-called decarbonisation index (DKI). This is of central importance throughout the Group as a key performance indicator of the “Together 2025” strategy - and the goal of becoming a leading global provider of sustainable mobility.