Driving Transparency: Volkswagen's Raw Material Report
The automotive industry is undergoing a transformation towards sustainability, and at the forefront of this movement is the Volkswagen Group.
With a commitment to transparency, risk mitigation, and responsible raw material procurement, Volkswagen is setting new standards and leading by example.
The journey towards sustainability
For the fourth consecutive year, Volkswagen is publishing its Responsible Raw Materials Report. This annual report serves as a testament to the company's dedication to ethical sourcing and environmental stewardship. By summarising risks, challenges, and progress in sustainable raw material procurement, Volkswagen has established itself as a pioneer in the industry.
In the latest edition of the report, Volkswagen has expanded its focus to include two new priority raw materials: cotton and magnesium. By broadening the scope, Volkswagen aims to cover additional risks and ensure the continuity of responsible sourcing practices.
“Responsible procurement of raw materials is part of our holistic sustainability strategy." said Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of the Extended Executive Committee.
“Since 2021, we have consequently reported publicly and voluntarily on the Group-wide measures for mitigating human rights and environmental risks in particularly at-risk raw material supply chains in our own report."
"The focus of that is on our indirect suppliers in upstream supply chains – in other words, where the challenges are greatest. We identify, assess and address risks through our Responsible Raw Materials Management System, currently covering 18 priority raw materials and their respective supply chains."
"We document our results every year, highlighting both progress and challenges, with the Responsible Raw Materials Report. That is our contribution to greater transparency and sustainable supply chains.”
Setting new destinations
As part of its holistic sustainability strategy, Volkswagen has set ambitious targets for its suppliers. By 2040, the company aims for 95% of its suppliers to have a positive sustainability rating, reflecting its commitment to driving positive change throughout its supply chain.
Volkswagen's dedication to sustainability extends beyond its own operations. Initiatives like the Initiative for Responsible Mining Assurance (IRMA) and stakeholder dialogues in Chile and South Africa demonstrate Volkswagen's commitment to responsible sourcing practices and collaboration with industry partners.
With a network comprising 63,000 supplier locations in 96 countries, Volkswagen has established a robust system for collaboration and transparency. A group-wide network of sustainability experts ensures cooperation with suppliers and the sharing of information and knowledge across brands and regions.
A look in the rear-view window
In 2023, Volkswagen joined several key initiatives aimed at promoting sustainable practices across various industries. Initiatives like the Leather Working Group, Responsible Mica Initiative, and Global Platform for Sustainable Natural Rubber underscore Volkswagen's ongoing commitment to sustainability.
As Volkswagen continues its journey towards sustainability, its Responsible Raw Materials Report stands as a testament to its dedication to ethical sourcing, environmental stewardship, and driving positive change throughout the automotive industry. With ambitious targets, strategic partnerships, and a commitment to transparency, Volkswagen is leading the charge towards a more sustainable future.
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