Sustainability Report 2019 Audi

Audi Sustainability Report 2019
PROGRESS
YOU CAN FEEL
Audi AI:ME (2019): Studie
Audi Sustainability Report 2019 2
Progress you can feel
OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

FOREWORD BRIEF PORTRAIT STRATEGY & INTEGRITY APPENDIX
& SERVICES & PRODUCTION & SOCIETY
Audi Sustainability Report 2019 5 Audi Sustainability Report 2019 24 Audi Sustainability Report 2019 42
Progress you can feel Progress you can feel Progress you can feel
OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES
FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX
& INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY
How can we make Can sustainability Which technology

mobility carbon-neutral? also be profitable? is truly sustainable?
* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), CO₂ combined emissions in g/km: 0
Chapter 1 STRATEGY Chapter 2 OPERATIONS & INTEGRITY Chapter 3 PRODUCTS & SERVICES
from page 5 from page 24 from page 42
Audi Sustainability Report 2019 61 Audi Sustainability Report 2019 82

Progress you can feel Progress you can feel
OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES
FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX
& INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY
Contents
The topics addressed in this
Audi Sustainability Report 2019
61Is “clean” industry

are oriented to the results of the
materiality analysis (page 22).
Is good work
The content is divided into five
even possible? good for everyone?
chapters that each answer a core
question with several stories.
* Audi e-tron: Power consumption combined in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP) CO₂ emissions combined in g/km: 0
Chapter 4 VALUE CREATION & PRODUCTION Chapter 5 EMPLOYEES & SOCIETY

from page 61 from page 82
6 Interview with the Board of 25 In combination 43 Better safe than sorry 62 Closing the circle 83 Audi embraces diversity
Management Market or morality? Accident research: the Audi is pursuing the Equal opportunity – for every-
What does the new strategy Criteria that govern work of the experts in vision of a holistic cir- one! This is how Audi ensures More about the creation and
“consistently Audi” mean for the the way Audi does the Audi Accident Re- cular economy. Can it that employees optimally un- structure of the Sustainability
company? An analysis business: the report search Unit succeed? leash their potential Report can be found on: page 14

Foreword
To us, “Vorsprung durch Technik” As a premium car manufacturer and
means: innovative products to provider of innovative mobility solu-
ensure sustainable mobility and tions, we are aware of this social re-
a forward-looking, sparing use of sponsibility.
resources. This is our foundation
for future growth and long-term We address the topic of sustainability Markus Duesmann
corporate success. in all its facets. This is the only way
that we can create the freedom our
Together with the Volkswagen customers desire without adversely
Group, Audi was one of the first impacting the environment and soci-
companies to commit itself to the ety. Our vision is to provide sustain-
goals of the Paris Agreement. In able mobility that can be used by all
the long term, we are pursuing a vi- of us with a clear conscience. That is
sion of carbon-neutral mobility and why we act in a decisively sustainable
want to achieve net zero carbon way throughout all of the divisions.
emissions for the entire company Because we realize that every con-
by 2050. tribution matters when it comes to
achieving the transformation
Sustainability is much more than Arno Antlitz Dirk Große-Loheide Peter Kössler
just reducing CO₂ emissions with This Sustainability Report stands for
each kilometer traveled. This is that as well, and takes an open and
why we focus on the overall picture transparent approach to showing how
at Audi. We act responsibly, trans- the entire company is striving to make
parently and with integrity and rec- this vision a reality.
oncile social, environmental and
economic goals. The Board of Management of AUDI AG
Sabine Maaßen Hans-Joachim Hildegard Wortmann

Rothenpieler

Brussels Neckarsulm Ingolstadt Changchun

Belgium Germany Germany China
AUDI BRUSSELS AUDI AG, Audi Sport GmbH AUDI AG FAW-Volkswagen Auto-
S.A./N.V. motive Company, Ltd.
> A4 Sedan > A7 Sportback TFSI e [2] > Q2 > A4 allroad quattro
> e-tron [1] > Q3
> A5 Cabriolet > S7 Sportback > SQ2 > S4 Sedan
> e-tron Sportback [1] > A4 L Sedan
> S5 Cabriolet > RS 7 Sportback > A3 Sedan > S4 Avant
> Q5L
> A6 Sedan > A8 > A3 Sportback > RS 4 Avant
> A6 L Sedan
> A6 Sedan TFSI e [2] > A8 TFSI e [2] > A3 Sportback > A5 Coupé
> A6 L Sedan TFSI e [2]
> A6 Avant > A8 L e-tron [2] > A5 Sportback
> A6 allroad quattro > A8 L TFSI e [2] > S3 Sedan > S5 Coupé
> S6 Sedan > S8 > S3 Sportback > S5 Sportback
> S6 Avant > S8 L > RS 3 Sedan > RS 5 Coupé
> RS 6 Avant > R8 Coupé > RS 3 Sportback > RS 5 Sportback
> A7 Sportback > R8 Spyder > A4 Sedan
> A4 Avant
Martorell
Spain
SEAT, S.A. Bratislava
Slovakia Tianjin
> A1 Sportback VOLKSWAGEN China
> A1 citycarver SLOVAKIA, a.s. FAW-Volkswagen
Automotive
Győr Company, Ltd.
Hungary > Q7
Audi Hungaria Zrt. > Q7 TFSI e [2]
> SQ7 > Q3
Foshan
Manaus Sant’Agata > A3 Sedan > Q8 China
Brazil Bologna Bolognese > A3 Cabriolet > SQ8 Aurangabad FAW-Volkswagen
DAFRA da Amazônia Italy Italy > S3 Sedan > RS Q8 India Automotive
Indústria e Comércio Ducati Motor Automobili > S3 Cabriolet ŠKODA AUTO Company, Ltd.
de Motocicletas Ltda. Holding S.p.A. Lamborghini S.p.A. > TT Coupé India Private Ltd.
> TT Roadster > A3 Sedan
> Scrambler > Scrambler > Huracán Coupé > TTS Coupé > A3 Sedan > A3 Sportback
> Diavel > Diavel > Huracán Spyder > TTS Roadster > Q3 > Q2 L
> Monster >Monster > Aventador Coupé > TT RS Coupé > A4 Sedan > Q2 L e-tron [1]
> Multistrada > Hypermotard > Aventador Roadster > TT RS Roadster > Q5
> Panigale >Multistrada > Urus > Q3 > A6 Sedan Amphur
San José Chiapa > SuperSport > Streetfighter > Q3 Sportback > Q7 Pluakdaeng
Mexico > Panigale > RS Q3 Thailand
Audi México S.A. > SuperSport > RS Q3 Sportback Ducati Motor
de C.V. (Thailand) Co., Ltd.
> Q5 > Scrambler
Brief portrait
> Q5 TFSI e [2] > Diavel
> SQ5 > Monster
> Hypermotard
> Multistrada
The Audi Group, with its brands Audi, Lamborghini and 59,248) million. Operating profit: EUR 4,509 (2018: > Streetfighter
> Panigale
Ducati, is one of the most successful manufacturers 3,529) million. Approximately 90,783 people work for > SuperSport
São José dos
Pinhais
of automobiles and motorcycles in the premium seg- Audi around the world, of whom 60,083 are in Germa-
Brazil ment. In 2019, the Audi Group delivered 1,845,573 ny. Volkswagen AG is the major shareholder of AUDI
Audi do Brasil
Indústria e Comércio
(2018: 1,812,485) automobiles of the Audi brand, AG and controls around 99.55 percent of the share
de Veiculos Ltda. 8,205 (2018: 5,750) sports cars of the Lamborghini capital. The Audi Group (headquarters: Ingolstadt),
> A3 Sedan
brand and 53,183 (2018: 53,004) motorcycles of the is present in more than 100 markets worldwide and
> Q3 Ducati brand to customers. Sales: EUR 55,680 (2018: produces at 16 [3] locations in 12 countries.
Fuel/electric power consumption and CO₂ emission figures can be found on page 110

How can we make

mobility carbon-neutral?
* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), CO₂ combined emissions in g/km: 0

Sustainability
with consistency

T
hey are working toward We can tell that sustainability is
making the vision of ze- more than just another item on
ro-carbon mobility a re- both of your to-do lists.
ality – and ensuring that Hildegard Wortmann: Authentic-
this reality ultimately bears four ity is the most important aspect
rings: Hildegard Wortmann, Board when it comes to sustainability.
Member for Sales and Marketing, Customers can tell right away
and Peter Kössler, Board Member whether you are just half-heart-
for Production and Logistics. edly addressing a topic or if it sin-
cerely matters to you.
Ms. Wortmann, have you Peter Kössler: That also applies to
already done something sustain- us as a company and we regard it
able today? as our responsibility. We deliber-
Hildegard Wortmann: Every ately decided to name one of our
contribution matters – even the strategy’s cornerstones “consis-
smallest ones. There’s a wide tently sustainable”.
range of possibilities. For exam-
ple, I consistently avoid using How is this consistency
plastic bottles and I purchase expressed?
fruits and vegetables that are in Peter Kössler: Many of our employ-
season and regionally grown. Even ees spend a lot of time thinking
my drive to work is as sustainable about the topic, and that's the
as it can be: My company car is a point. There’s a new corporate cul-
plug-in hybrid. ture at Audi and the awareness of
sustainability plays a fundamental
Mr. Kössler, how sustainable has role in it. Peter Kössler, Board Member for Production and Logistics, behind the wheel of an Audi e-tron
your day been so far? As a car manufacturer, we're not
Peter Kössler: I try to read the just a small cog in the wheel,
news before the workday starts. particularly since we are part of What do you think: In what direc- “There’s a new Peter Kössler was born in Ingolstadt,
Germany, in 1959. After completing
For the most part, I use my smart- a society that regards mobility as tion is sustainability developing, corporate culture at
training to become an electrician spe-
phone or tablet computer, since a basic human need. Or to put it which also includes diversity and Audi and the aware- cializing in energy devices and a degree
I only have digital subscriptions more simply: We're all part of the social policy, for example?
ness of sustainability in precision engineering, he started his
to many newspapers and maga- "big wheel." Hildegard Wortmann: Sustain-
plays a fundamental career at AUDI AG as a trainee in Ingol-
zines. Generally, I also try to buy Hildegard Wortmann: We see our- ability isn’t a trendy topic that will stadt in 1986. From 2007 bis 2015, Pe-
as much as I can from retail stores selves as being in a position to en- just disappear from the agenda at role in it.”
ter Kössler was head of the Audi Ingol-
and avoid online shopping, be- sure that we are heading in the right some point. It’s decisive for every- stadt plant. Since September 1, 2017,
Peter Kössler, Board Member
cause that’s also a way to reduce direction, and as having the respon- one’s future. We as a brand have to for Production and Logistics he has been a Member of the Board of
CO2 emissions and it’s sustainable sibility to do that. Our customers be willing to be measured by that. Management of AUDI AG, where he is re-
in many respects. rightfully expect that from us. That’s why we’re examining sponsible for Production and Logistics.

“Sustainability isn’t a everything we do and communi- yet – future-oriented. We have

trendy topic that will cating our actions with credibility. already initiated a great deal in a
just disappear from the Peter Kössler: One example is the short of time, including more sus-
fact that Audi, just like the entire tainable mobility options and new
agenda at some point.
Volkswagen Group, has expressly digital offers. Throughout it all, the
It’s decisive for every- committed itself to the goals of “consistently Audi” strategy serves
one’s future.” the Paris Agreement, which aim to as our guiding principle, because
Hildegard Wortmann, Board Mem- limit the global rise in temperature that word is so popular at the mo-
ber for Sales and Marketing to well below two degrees Celsius ment – and I find it truly electrify-
compared with pre-industrial lev- ing for me and my daily work.
els. I think that many people aren’t
Hildegard Wortmann was
aware of that. Making a contribu- But first of all, Audi is attracting
born in Münster, Germany, in
tion to this as a brand is monu- international attention with a
1966. After pursuing a degree
in business administration, mental task and there are different provocative new television
she started at Unilever in ways to reach this goal. commercial using the motto:
1990. She switched to the “Let it go.”
BMW Group 1998, where How can you find the right direc- Hildegard Wortmann: We have
she headed Product Man- tion in the process? to let go of the past to create
agement at BMW for eight Hildegard Wortmann: Regardless something new. That's the idea
years. In addition, as part of of what we're doing, we always behind the commercial, which is
the expansion of the electric have to ask ourselves why we're introducing our new global brand
vehicle BMW i, Wortmann set doing it. In the age of networking, campaign. We can’t solve all of
a course for electric mobility. the brand image has to be under- the world’s problems alone. After
In 2016, she also assumed stood as more than just design, all, we're part of a movement; we
brand responsibility for BMW. product and technology. Providing aren’t dictating the terms. The de-
She relocated to Singapore
services throughout the entire cisive factor is the overall message:
starting in January 2018,
customer life cycle will make the Every contribution matters.
where she was responsible
for the Asia-Pacific sales re- decisive difference. At Audi, we
gion. Hildegard Wortmann are currently redefining the core Saving energy, doing without
has been the Member of the of our brand. We no longer think plastic, preventing and eliminat-
Board of Management of of “Vorsprung” simply as what is ing waste – what role does Audi
AUDI AG for Sales and Mar- technically feasible. “Vorsprung” play in this context?
keting since July 1, 2019. stands for an attitude: We want to Peter Kössler: We're starting with
offer our customers genuine per- ourselves. The goal is to consis-
sonal added value. tently reduce our environmental
footprint – for example, with our
... And what exactly does this “Mission Zero” environmental pro-
Hildegard Wortmann,
Board Member for look like? gram. This includes goals such as
Sales and Marketing Peter Kössler: Modern, or better wanting to make all Audi sites

carbon-neutral by 2025. Since model – the Audi e-tron GT. quently reusing these reprocessed consistently. As a company, we part of the Volkswagen Group
we have always been perceived as Peter Kössler: Audi is in the midst aluminum sheets in the production are no longer just focusing on the allows us to leverage synergies
a particularly sporty brand, we also of a transformation. The future is process. This enabled Audi to save vehicle, but increasingly on the and create a wide and versatile
want to be fast and lean in advanc- electric, in all segments. We are around 150,000 tons of CO₂ on ecosystem surrounding the entire electric car model portfolio for
ing the transformation. consistently pursuing our electrifi- balance in 2019 alone. And we will electric car as well. Thus, we offer each segment and each group
cation and sustainability strategies be able to save even more in the fu- our customers smart charging of customers. To move into the
But someone who wanted to re- across our entire model range. ture. Another example is Europe’s solutions from photovoltaic elec- realm of premium electric prod-
spond provocatively would find it largest photovoltaic roof system, tricity that we have generated. At ucts, by 2025 Audi will launch
easy – sustainability and SUVs are Do you believe that this position- which we dedicated a few weeks the same time, it’s clear that we at least three models based
fundamentally a contradiction... ing alone is capable of countering ago at Audi Hungaria in Győr. as a manufacturer cannot take on the modular electric drive
Hildegard Wortmann: I don’t the Fridays for Future movement? on the expansion of the charging matrix for more compact vehi-
think that’s true. Our customers’ Hildegard Wortmann: The topic of Audi promises to unleash the infrastructure alone. We need the cles. The first models featuring
wishes are our top priority. And we sustainability has gained an entire- beauty of sustainable mobility, support of politicians and society. architecture that was developed
see that the trend toward SUVs is ly new dimension through move- and to do it profitably. How is it But those who make demands in conjunction with Porsche
unbroken. So we have to strike the ments such as #FridaysforFuture. possible to bridge the gap be- must also be willing to deliver. will be introduced to the higher
balance of offering customers an Young people are addressing topics tween these two factors? And I can truly say: We're doing segments at the beginning of
SUV that they can drive without a that socially highly relevant. I have Peter Kössler: Electric mobility that. this decade. It’s clear to us: The
guilty conscience. The Audi e-tron a great deal of respect for their is a prime example of our acting Hildegard Wortmann: Being future is electric!
underscores our premise that eco- determination – it shows a highly
logical awareness and SUVs are developed sense of responsibility
not a contradiction in terms. When for our future.
selecting a segment for our first
electric vehicle, we made a con- How can listening be put into
scious decision to choose one that action?
combines sportiness, complete ev- Peter Kössler: We are consistently
eryday usability and a high degree working on change – in all of the
of potential for growth. corporate divisions. The transfor-
Peter Kössler: And don't forget: mation to a net-zero carbon emis-
There’s another reason that the sions company is well underway,
Audi e-tron is an SUV. We wanted and it's also expressed by the fact
to offer our customers a vehicle that we are using resources in the
capable of driving long distances. most responsible manner and add-
An SUV was the best way to do this, ing closed loops where we can. One
because it requires relatively large example of this is the Aluminum
batteries. We will be launching Closed Loop. The aluminum sheet Sustainability is part of
a compact SUV with the Audi Q4 offcuts that are produced in the the strategy – and it is
important to talk about
e-tron. press shop are sent directly back to it. An interview with
Hildegard Wortmann: And our first the supplier, which then processes Hildegard Wortmann
fully electric, high performance and recycles them. We are subse- and Peter Kössler

Sustainable right down

to the very last detail
To become the leading carbon-neutral premium
provider, Audi is optimizing all parts of its value chain.
An overview of key improvements and initiatives
Research &
development
Audi is embarking on a great competence center in Neckarsulm,
transformation. The company which has assumed the lead within
aims to reduce its carbon foot- the Volkswagen Group.
print by around 30 percent in Thanks to the mild-hybrid sys-
just five years. Audi wants to be tems, vehicles with combustion
carbon-neutral by 2050. Rigorous engines also emit less CO₂ than
electrification of vehicle fleets con- they did in the past. Once the driver
tributes to promoting decarboniza- takes his or her foot off the gas ped-
tion. Research and Development al, the drive management system
is currently working intensely on selects from one of two options:
introducing around 30 electrified Depending on the driving situation
models to the market by 2025; and the setting in the “Audi drive
they are intended to make up select,” the vehicle either recovers
approximately 40 percent of the energy or it glides with the engine
brand’s sales. switched off.
Furthermore, Audi is banking on The vision is to shape premium
plug-in hybrids and, in the future, mobility in a manner that is both ef-
on the h-tron fuel cell drive system fortless and sustainable – from the
(page 48). Research and develop- time the car is purchased through
ment activities pertaining to fuel its ownership and utilization phase
cells are being conducted at the and all the way to its resale.

Procurement Audi is working with its suppliers to

Not only is Audi making its own pro- develop measures aimed at reduc-
cesses more sustainable, it is also ing carbon emissions. The Audi CO2
supporting business partners (page program focuses on the production
65) in their sustainability efforts. In of materials that require a particu-
its corporate responsibility for the larly high level of energy – namely
environment and society, Audi wish- aluminum and steel as well as bat-
es to collaborate only with partners tery components.
who adopt the same approach in Respecting and protecting hu-
terms of both their philosophies and man rights is of the utmost priority
actions. This not only includes envi- for Audi at all times – especially
ronmental protection, but also em- throughout the supply chains. In
ployee rights and integrity. A manda- line with the requirements of a
tory sustainability rating records and risk-based approach, Audi concen-
governs just how well suppliers are trates its measures on the supply
able to implement the guidelines. chains that are associated with
The rigorous electrification of particularly high risks for negative
the vehicle fleet has caused an impacts according to analyses.
increased percentage of the CO2 Among the significant challenges
emissions created during the lifecy- facing electric mobility is the sus-
cle of the car to arise in the supply tainable extraction of the required
chain and during production. Thus, raw materials.
Production
For decades now, Audi has been increasing the “fit- By 2025, the aim is to achieve net zero
ness” of its production through intelligent, digitally carbon emissions for all Audi plants. Since
connected high-tech solutions. The basis of envi- 2018, the plant in Brussels has served as
ronmentally compatible production at Audi is the role model – as the world’s first certified car-
environmental and energy management systems bon-neutral large-scale production plant in
that have been gradually introduced since 1995. the premium segment.
They help when it comes to achieving “Mission:Ze- Throughout the reporting year 2019, decar-
ro” (page 69) – that is, production with the lowest bonization was promoted through many proj-
possible impact on the environment. ects. For example, numerous energy efficiency
All Audi sites are pursuing ambitious goals and measures implemented as part of energy
gradually reducing environmentally relevant values management at the sites in Ingolstadt, Neck-
for the KPIs of CO₂ emissions, energy, fresh water, arsulm, Brussels, Győr and San José Chiapa
organic solvents (VOC) and waste. A functioning cir- led to savings of more than 71,300 megawatt
cular economy (page 62) and reductions in energy hours of electricity and approximately 10,800
consumption (page 72) play a key role in this. tons of CO₂ emissions.

After sales The advantages of providing such

The advent of electric mobility virtual reality training sessions (page
will pose new challenges for both 85) are clear: Audi can offer them on
dealers and workshops. In addition a global scale, thus ensuring that its
to oil changes and spark plugs, electric vehicles are efficient, fast and
mechatronics technicians must enjoy premium market rollouts, with
now also be able to handle issues technicians who are already optimally
such as high-voltage technology. prepared for the new model as soon
Audi is committed to supporting its as it is launched on the market.
service partners as well as possible The digitalization drive in retailing
throughout this transformation includes a wide array of forward-look-
toward electric mobility, by offering ing measures. One example is an Audi
innovative training concepts, for Service Station, where customers can
example. conveniently leave a car to be ser-
Thanks to virtual reality training viced or pick it up upon completion
sessions, employees can become – independently of the shop's hours.
acquainted with technologies such And since the purchasing of used cars
as high-voltage batteries in a realis- is also rapidly changing, Audi is con-
Marketing tic and safe manner. During process tinuing to develop its online platform
In the future, Audi will invest 50 ter at Munich Airport has served as training sessions, they learn step to make buying, paying, registering
percent of its marketing budget in a way for the company to demon- by step when it is time to replace a and delivery even more convenient
topics pertaining to electric mo- strate that economy and ecology switching unit or battery module. for customers.
bility. The company plans to make are not conflicting concepts. The
new forms of propulsion even more structure showcases the most mod-
emotionally tangible for its cus- ern form of energy and building
tomers, dismantle possible reserva- technology, and has a multiplier
tions and ignite enthusiasm. effect – for example as an inter-
The company’s podcast “The fu- national training center or event
ture is electric” is one successful venue.
example. The second season is cur- By clearly focusing on sustainabil-
rently on the air and was honored ity, Audi is sending a visible signal
with the World Media Award in the that it treats the topic holistically,
“Automotive” category in 2019. far beyond the electrification of
But it is not just digital channels fleet vehicles. That was also ev-
where Audi is leading the way; the ident at the end of 2019 in the
company also has tangible sus- “Tilted World” advertisement and
tainable concepts for the future of the Super Bowl commercial “Let it
sales: Ever since the fall of 2019, go” that ushered in the new global
the new Audi Brand Experience Cen- brand campaign in February 2020.

The scientific history of economist Michael E. Por- the process, various tasks
the value chain ter in 1985. According to for rendering service are
Porter, the value chain rep- described, from develop-
The value chain depicts resents a collection of ac- ment, procurement and
production levels as an or- tivities that are performed production to sales and
ganized sequence of activ- to design, produce, mar- after-sales services.
ities, which in turn create ket, deliver and support a In practice, the value
value, use resources and product. chain serves as a means
are linked to each other Moreover, it reveals the of analyzing corporate
through processes. path a product or a service activities and represents a
The concept was first in- will follow throughout the complex methodological
troduced by the American transformation process. In instrument.
Audi generally constructs its models so that they substances, such as batteries. Containers for liq-
can be dismantled quickly and simply. When a uids, radiators or oil pans are constructed in such a
vehicle is returned to an official Audi collection way that they can be emptied in an uncomplicated
facility, it is drained and disassembled. Together and residue-free way. Furthermore, factors such as
with other manufacturers, Audi has developed the avoiding the long-term filling of oils and fats, as
Recycling database IDIS (International Dismantling Infor- well as maintenance intervals geared toward driv-
Audi not only focuses on conserving resources mation System) to optimize the overall process of ing modes and vehicle operating conditions, also
when designing and building its vehicles, the brand dismantling. reduce the amount of waste in workshops.
also promotes recycling and reusing – in keeping IDIS contains type-specific information for pro- Used components and assembly groups such as
with the concept of the circular economy (page fessional and environmentally-friendly handling, engines, transmissions, axles, starters, electronic
62). This is why Audi has teamed up with (external) starting with information about draining automo- parts and many other components are then re-
partners to create a comprehensive return net- tive fluids, the neutralization of airbags and seat furbished. This protects the environment, while
work. In addition, materials used – such as plastics belt tensioners and all the way to the dismantling offering customers the cost-saving alternative of
– are labeled and are thus easily recognizable. of components containing particularly hazardous exchanging a component for a recycled spare part.

In the spotlight
ny’s strategy. Sustainability has a lot to do with adaptability,
but also with transparency. To do justice to transparency, the
The “consistently Audi” strategy, which was presented in May all readers truly understand why these topics are being re- 2019 Sustainability Report reflects the carefully selected
2019, is changing many things. As a result, sustainability ported on. There are internal (e.g. strategies) and external reporting topics in its familiar basic structure, featuring the
has moved to the core of our entrepreneurial action, thus (e.g. guidelines) reasons for this. chapters “Strategy,” “Operations and Integrity,” “Products
altering the way Audi reports on its activities within the con- and Services,” “Value Creation and Production” as well as
text of “consistently sustainable” – one of the strategy’s four To enhance understanding, the Sustainability Strategy de- “Employees and Society.” Maintaining the same structure
subgoals. This is why the Sustainability Strategy department, partment has developed a thematic map that allows the enables an annual comparison and makes it easer to identify
which is responsible for the direction and operationalization reader to see at a glance why topics were selected and under- progress. With this new approach, the Four Rings is demon-
of the sustainability strategy and is tasked with preparing stand the underlying strategy. This also emphasizes the fact strating its adaptability and openness: It is important to Audi
this report, decided to adopt a new approach to reporting. that topics reported on were not just arbitrarily chosen: They to relay clear messages and demonstrate credibility through
The aim of the 2019 Sustainability Report is to ensure that are clearly linked to stakeholders’ demands and the compa- transparency.
Comparison of content with GRI standar

ds
Draw on
customer
experiences
Three-pillar Traveling safely
Thanks to brand diferen-
approach on the
Interactive: Click on
tiation, Audi intends to
data highway
Consistently sustainable Core areas
become number one for
Operating without ethics customer experience. Then
and a sense of proportion the plan will succeed.
does not work. An overview Data protection in harmony with
part of the matrix

of how compliance, integri- the law and legislation: Audi com-
Important pillars of the cor- The outline of the Audi Sus-

ty and culture provide guid- plies fully with applicable national
ance at Audi and ensure laws on personal data, data protec-
the company’s long-term tion and personal rights to privacy.
An overview of the various data pro-
to access the story

success.
porate strategy “consistently tainability Program combines

tection measures.
tion (oekomRating
ion/reputa
Down to the
Audi” (see also page 15) strategic goals with concrete
iderat , SIS)
cons
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last detail Hol
Better safe than sorry
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part to the work of the experts at the Audi

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parts of its value chain. An

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able manner.
Accident Research Unit (AARU). A report.
son
overview of key improve-

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individual parts of
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GRI 102-46, 102-47, 102-48, 102-49

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resources and
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Thinking consistently from start

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development Comparison with the

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Reporting Initiative (GRI)


“Consistently Audi”:
Sustainability –
The four mission fields of the new
Audi strategy
consistently practiced consistently customer: Audi wants to

become the company with the most
satisfied customers.
Sustainability has been a central corporate goal and an absolute neces- consistently electric: Audi is taking
sity for ensuring future success for quite some time. For Audi, it means the lead in the transition to e-mobili-
our future viability and it represents a fundamental basis for accep- ty. Electric mobility is the key to more
tance and relevance – thanks to sustainable products from a sustain- sustainable mobility worldwide.
able company. But how will Audi achieve this new edge? By having the
consistently connected: Audi is creat-
correct self-perception and applying the right strategy.
ing an open, digital ecosystem.
consistently sustainable: Audi oper-

ates responsibly, transparently and
Mobility is one of society’s primary necessities. Whether with integrity. Audi acts in harmony
in urban or rural settings, regional or international – peo- with ecology and the economy, with a
ple are looking for adequate solutions to get from A to B. clear long-term perspective.
Audi responds to this desire with its products. As part of
the Volkswagen Group, the brand focuses on individual Further information on the Audi Strategy
premium mobility. Audi is well aware that there are sizable is available at Audi.com
questions to address in this context: Scarce resources, envi-
ronmental damage, climate change and population growth
– these are all challenges facing society, which looks to
politics, science and industry for answers. How sustain-
able can individual mobility be? Is electric mobility the
only sensible approach to sustainable transportation? The signed by 196 contractual parties. Actively contributing to formation as we head into a new age of mobility and to
automotive industry is experiencing radical upheaval. For the SDGs (Sustainable Development Goals, see page 17) is be a pioneer of carbon-neutral mobility in the premium
Audi, this means working steadily on developing solutions also part of the rigorous focus of the Volkswagen Group. segment.
to the questions raised above. Thus, as part of the Volk-
swagen Group, Audi is committed to the two-degree goal To highlight our determination with respect to this focus, Doing things right
and is contributing to its realization. The two-degree goal Audi developed a new vision in the year under review: “Un- This new strategy makes it clear that sustainability is
describes the objective of international climate policy to leash the beauty of sustainable mobility.” To make sure that no longer just something that is nice to have; instead, it
limit the global temperature rise by 2100 to less than two this vision can be transformed into reality, the company set serves as a prerequisite for Audi’s actions. “consistently
degrees Celsius above pre-industrial levels. This goal, which out a new mission for itself, which was then presented in Audi” is driving the transformation from a car manufac-
GRI 102-44
has been discussed for more than 30 years, eventually be- the form of a new corporate strategy: “consistently Audi”. turer to a mobility service provider; the company acts
came legally binding for first time as the Paris Agreement, The goal of the strategy is to position the company for the purposefully and with all its power – in other words,
which has been in force since November 2016 and was future, to play an instrumental role in shaping the trans- consistently.

Particulate matter, CO2 Innovative concepts

noise, nitrogen oxides
BEV/FCEV BEV/FCEV Efficient use of materials across the value chain
Viable combustion engines Viable combustion engines Circular economy
Responsibility across the value chain Reduction of CO2 across the value chain Use of alternative materials
2035 2035 2035
In the future, the company’s approach will be to When it comes to health, the brand is focusing Complex value chains
focus – and then implement consistently. At the on reducing emissions such as nitrogen oxides When it comes to sustainability in the automo-
core are four action areas: consistently customer, (NOx), particulate matter and the topic of tive industry as a manufacturing business, one
consistently electric, consistently connected and noise. special feature is the complexity of the value
consistently sustainable. chain. The product is not the only thing that
In terms of climate, Audi combines all activi- must demonstrate sustainability – production
Audi developed the action areas for “consistently ties in the Sustainability Roadmap that are in- is affected as well. This goes hand in hand
sustainable” with the help of its Sustainability tended to reduce the CO2 emissions of vehicles with Audi’s commitment to implement sus-
Roadmap. This is a way for the company to make a and CO2 volumes generated during production. tainability equally in all divisions. For an over-
targeted contribution to solving global challenges. view, see pages 10-13. Precise details can be
The roadmap’s content has three focal points: Resource conservation includes activities found in the individual articles, which address
related to the circular economy to change re- most parts of the value chain at Audi through
source consumption in the vehicles themselves the examples described there. At the end of
ealth
H and during manufacturing sustainably. each chapter, the Audi Sustainability Program
Climate shows the connection between the strategic
Resources These focal points give rise to specific action goals and concrete measures for these areas.
areas, focal points for development, measures
GRI 102-44
and key figures, which constitute the core of That is how we guarantee that Audi is keeping
Audi’s sustainability activities and are present- its promise to “unleash the beauty of sustain-
ed in a selection in this report. able mobility” on several levels:

Sustainable mobility means:

Audi will offer carbon-neutral premium mobility
in the long term.
In the medium term, Audi will deliver the
strongest lineup of electric models among
premium competitors. The goal is to offer 30
electrified 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 percent of Audi’s
global annual sales. Electric mobility is the key
element of a sustainable and more
climate-friendly traffic system.
By 2025, Audi will reduce the carbon footprint of
the Audi fleet by around 30 percent across the
entire life cycle.
Agenda 2030: 17 goals for sustainable development
Audi wants to achieve net zero CO₂ emissions
across the entire company by no later than 2050. At the 2015 United Nations The Agenda 2030 stands Audi recognizes and ob-
(UN) General Assembly, for a global understand- serves the Sustainable
Beauty means: 193 states adopted the ing of prosperity that Development Goals.
Audi wants to be the most progressive premium Agenda 2030, which lays extends beyond the con- Internal workshops were
brand with the best customer experience. out 17 goals – the “Sus- stricting concept of per conducted to identify
Audi wants to be the brand with the greatest ap- tainable Development capita income. the SDGs to which Audi
peal, fascinating customer-relevant innovations Goals” (SDGs). SDGs At issue is reshaping can make the greatest
and breathtaking design. combine the social, envi- economies toward more contribution with its core
ronmental and economic sustainable development, business.
Only the consistent implementation of the strategy dimensions of sustainable for example through re- The two main stories in
and realization of the vision will ensure that the development and thus link sponsible consumption and each chapter demonstrate
brand with the Four Rings is an attractive employer the battle against poverty production patterns and the activities at Audi that
in the long term, remains competitive, inspires its with the protection of nat- clean as well as affordable are aimed at fulfilling the
customers and provides future generations with a ural resources. After all, so- energy. It is becoming clear responsibility laid out in
livable future. cial progress is not possible that climate policy, sus- the prioritized SDGs. These
GRI 102-44
in the long run if the limits tainable development and passages also provide a
For detailed information on the corporate goals, of the planet are not the eradication of poverty reference to the corre-
please refer to the Audi 1019 Financial Report respected. are inseparably connected. sponding SDGs.

Firmly anchored responsibility

What structures are required for value-oriented, sustainable
management? How can impending conflicts be recognized The Board of Management
early on to ensure a prompt response and to secure future of AUDI AG constitutes
viability? Sustainability management that is firmly anchored the Sustainability Board
at the level of the Supervisory Board and Board of Management,
along with compliance and integrity, help Audi systematically
implement its “consistently sustainable” strategy. Human Finance, Chairman
Technical Marketing Procurement Production
Resources and China and Legal of the Board of
Development and Sales and IT and Logistics
Organization Affairs Management
Corporate
Strategy
Audi is part of society and as such, assumes responsibility Strategy Digitalization Sustainability Urbanization
for the environment, its own employees and for people Development Strategy Strategy Strategy
outside its factory perimeters. Sustainability is important
for Audi and is firmly integrated within the company. The
Sustainability Strategy department consolidates measures Sustainability
across the divisions and is responsible for the direction of Steering
the sustainability strategy. It reports to the Sustainability Committee
Board – the full Board of Management of AUDI AG – at least
twice a year. At the meetings of the Sustainability Board,
the Sustainability Strategy department reports on current
measures and potential target conflicts with regard to the Board of Management, where they are then discussed. The
economy, ecology and society. department is also in charge of the Sustainability Steering
Committee, which is composed of representatives of all di-
Anchoring sustainability in the company visions plus one representative from the Works Council. The
For Audi, there is a direct correlation between economic Sustainability Steering Committee aims to ensure cross-di-
success and entrepreneurial responsibility. As part of the visional management of the sustainability strategic field of
risk management process, the Sustainability Strategy de- action. The resolutions adopted by the Sustainability Steer-
partment presents material risks on a quarterly basis to the ing Committee form the basis for decision proposals for

the Audi Board of Management as well as for product-re- has signed the Universal Declaration of Human Rights, the
lated decision-making committees containing members of principles of the International Labour Organization and
Handling of the diesel crisis
the Board of Management. of the OECD, the principles of the Rio Declaration on Envi-
ronment and Development and the UN Convention against One thing is clear to the
Executive bodies of AUDI AG Corruption. The company, as a subsidiary of Volkswagen Supervisory Board: Some-
The Annual General Meeting, the Supervisory Board and AG, suspended its membership in the UN Global Compact thing like the diesel crisis
the Board of Management make up the executive bodies effective November 12, 2015, in light of the diesel crisis. must never happen again at
of AUDI AG. The Annual General Meeting of a stock corpo- Irrespective of the suspension of its membership, Audi AG Audi. Thus, Audi continues
ration is the meeting of the corporation’s shareholders or emphasizes its commitment to the principles of the UN to gather information about
owners at which they exercise their rights with regard to Global Compact. initiatives pertaining to
the stock corporation’s affairs. The Board of Management compliance, integrity, risk
manages the business of AUDI AG and of the Audi Group At Audi, the Volkswagen Group Essentials, the Audi lead- management and corporate
in accordance with the law, the Articles of Incorporation ership principles and the Audi corporate values of appreci- culture.
and Bylaws of AUDI AG and the rules of procedure issued ation, openness, responsibility and integrity all constitute
by the Supervisory Board. Corporate governance also gives the fundamental values and foundation of our corporate Moreover, the Supervisory
due consideration to the corporate goals and to shared culture. The guiding behavioral principles for the Audi Board actively calls upon all
interests within the Volkswagen Group. At the time the Group’s employees are described in the Code of Conduct. In members of the Board of
report was completed, the AUDI AG Board of Management 2019, the Code of Conduct was fully revised and supports Management to remain per-
consisted of seven members. The Supervisory Board over- employees in their daily duties in the company. It provides sonally committed to these
sees and advises the Board of Management’s running of the guidance, advice and support on correct behavior at the topics and places adhering
business. The Supervisory Board of AUDI AG comprises ten workplace, as a business partner and as a member of the to these ethical standards
shareholder representatives and ten employee representa- company. The Code of Conduct is binding for every employ- on par with economic goals
tives as provided for by law. The composition of the Super- ee, regardless of his or her position in the hierarchy. when it comes to making
visory Board and Board of Management of AUDI AG as well fundamental economic
as the dates on which members took up office are provided The Code of Conduct provides clear rules on correct conduct decisions.
on the website of AUDI AG. in a transparent and easily understood form and is con-
stantly made accessible to all employees. The emphasis is For further information on the
tasks and issues addressed by the
Guiding principles of action on dialogue and exchange. Practical examples illustrate the
Supervisory Board, please refer
In February 2012, AUDI AG joined the United Nations individual subject areas and help employees apply the rules to the Audi 2019 Financial Report
Global Compact as an independent company. The company (page 25) . on pages 104f.

There from the start

Audi actively involves its stakeholders [4] in core issues and wants to know Communication measures with stakeholders
their interests and needs so that it can consider their expectations in its
business decisions. An honest assessment and an external perspective are
Stakeholder questionnaires Stakeholder dialogue
essential for the continuous development of Audi’s sustainability strategy.
Internal committees and Series of talks and discussions

working groups
Audi uses different dialogue formats and one-to-one discus-

sions to find out what motivates stakeholders. The company
Sustainability academy Responsibility forum and
tries to find the right format for stakeholders depending on
sustainability mailbox
the topics addressed.
Targeted dialogue
Initiatives and
Material stakeholders are all internal and external groups Podium discussions
memberships
of individuals that are affected directly or indirectly by the
company’s business activities. The relevant stakeholders are
identified based on their expectations, expertise, integrity,
and their ability to influence Audi.
Multi-stakeholder events, such as the Audi Dialog, or in-

volvement in initiatives (see page 21) allow the company to
engage directly with its stakeholders on core issues as well. In addition, a subject portal on the Audi intranet offers em- logue formats? What will help move the company forward?
Other approaches include dialogue as part of its activities in ployees up-to-date information on relevant, strategic topics What is the “outside-in perspective” on issues? What sug-
associations as well as memberships in committees. and innovations, as well as training options offered by the gestions do the experts have? Audi wants to learn, examine
Sustainability Academy. The findings of stakeholder ques- perspectives, gather suggestions, and build trust.
GRI 102-40, 102-42, 102-43

Communication on sustainability topics tionnaires conducted on a regular basis are fed into Audi’s
Talks with individual interest groups are also an effective in- materiality matrix (see from page 22). Audi’s online presence Of the many different events, Audi Dialog 2020[5] warrants
strument for Audi in acting on stakeholder input. Stakehold- on the topic of sustainability provides comprehensive infor- a special mention. Focusing on the “consistently Audi”
ers can also contact the “Sustainability Strategy” department mation, while the Sustainability Report presents Audi’s sus- strategy that was newly adopted in 2019, an intensive ex-
directly at the email address sustainability@audi.de. In the tainability performance transparently and comprehensively. change took place with more than 50 stakeholders over two
internal community “Forum Responsibility,” employees can days in the Audi Conference Center at Munich Airport. The goal
contribute their own suggestions on the topics of responsi- Listening and learning: Audi in dialogue of the event was to get honest assessments from representa-
bility and sustainability at Audi. What type of feedback does Audi hope to get from the dia- tives from politics, industry, science, and civil society

on Audi’s process of transformation toward a sustainable These events included expert discussions, plant visits, Impetus for open discussions
mobility provider. These assessments also contribute to the participation in public podium discussions, or political dis- The “Responsibility Perspective” lecture series gives Audi
continuous development of the sustainability strategy. In small cussion formats such as the Zukunftsforum Automobil Bay- employees and managers an opportunity for discussion and
groups of 20 to 25 people, Audi experts discussed four topic ern, the Strategiedialog Automobilwirtschaft Baden-Würt- networking with experts from science and industry. Sustain-
areas with relevant stakeholders: the charging infrastructure, temberg (SDA BW), and the “Future of mobility” national ability-related issues that are relevant to Audi’s future via-
human rights – complaints mechanisms, digital responsibility, platform. bility are discussed at the event. Papers by outside speakers
and the circular economy. This focused dialogue delivered a and commentaries by Audi experts provide starting points
clear picture of expectations at the topic level and strength- Ramping up electric mobility for open discussions between all participants. A total of just
ened mutual trust. Participants experienced Audi as an open A further high point was the parliamentary breakfast hosted under 3,000 employees have taken part in more than 25 lec-
company that understands and implements sustainability as a as part of the 69th Berlin International Film Festival on the tures since 2013. The topics of compliance and sustainability
core element of its strategic focus. At more than 100 events in topic of the Audi electric mobility strategy. Discussions with in the working world were addressed in 2019.
2019, Audi also engaged with political stakeholders from par- some 70 participants, including members of the German
liamentary authorities, ministries of Germany's Federal Gov- Bundestag, focused critically on topics such as how socially
ernment and Federal States, associations, non-governmental compatible electric mobility can be and what is needed for
organizations (NGOs), and think tanks. the imminent ramping up of electric mobility.
Participation in external Here is a selection from our numerous involvements that also reflect the interests of the company’s stakeholders.
initiatives and federations This image was created using the five chapters of this report to illustrate the connections to the topics reported here.
Audi works in a variety

of initiatives, associa- Strategy Products & Services Value Creation & Production
tions, and work groups VDA Verband der Automobilindustrie luminium Stewardship Initiative
A Biodiversity in Good Company Initiative e. V., Berlin
to discuss ecological, e. V., Berlin (ASI), Australia
economic, and social is- co₂ncept plus – Verband der Wirtschaft für
NOVA Strategiekreis Elektromobilität,
e lobal Battery Alliance (World
G Emissionshandel und Klimaschutz e. V., Munich
sues in partnership with Berlin Economic Forum), Switzerland
stakeholders. The list G
emeinschaftseinrichtung zur Altlastensanierung
Deutsches Verkehrsforum e. V., Berlin Responsible Minerals Initiative in Bayern e.V. (GAB), Munich
(right) of memberships
and activities exem-
plifies the company’s Operations & Integrity Employees & Society
dialogue with industry,
Deutsches Institut für Compliance (DICO), Berlin Deutsche Gesellschaft für Arbeitsmedizin
politics, science, and
esellschaft für Datenschutz und
G und Umweltmedizin e. V. (DGAUM), Lübeck
society.
Datensicherung e.V. (GDD), Bonn Stiftung “Jugend forscht” e.V., Hamburg
fW-Zentrum für Wirtschaftsethik
Z Verein zur Förd. kult. Belange in der Region
gGmbH, Berlin IN, Ingolstadt

What matters to you?
In the 2019 year under review, Audi asked internal and ipants were asked to rate the importance of the topics on a 2019 materiality matrix presents “relevance for external
external stakeholders for their assessment of relevant ac- scale of 1 (“very low”) to 6 (“very high”). 3,206 opinions from stakeholders” and “relevance for internal stakeholders” (Audi
tion areas in relation to sustainability issues (stakeholder respondents from Germany (71 percent), Europe (6 percent, employees) as one dimension, with both evaluated equally.
relevance). Through this approach, the company identifies without Germany), North America (13 percent), South Amer- As a result, the matrix is presented for the first time as a bar
those topics that are particularly important – and that have ica (3 percent), Asia (3 percent), Africa (1 percent), Australia chart, which shows the findings clearly at a glance.
a major impact. and “place of origin not specified” were assessed for the
2019 materiality matrix. This was the first time we succeed- These findings provide a structure for this report. The two
ed in reaching such an international audience. main articles in each chapter are devoted to the two topics of
The materiality analysis is a strategic instrument that Audi the highest relevance for stakeholders.
uses to establish the relevance of certain sustainability topics Audi differentiates the stakeholders according to different
for the Audi Group from the perspective of different stake- groups: employees, analysts and investors, neighbors and
holders. This analysis thus makes a contribution to regular local residents, customers, politics and associations and
reviews and the further development of the sustainability employees' organizations, press and media, science and sus-
strategy. Audi has been conducting the materiality analysis tainability experts, non-governmental organizations (NGO),
routinely since 2012 and presents the results in a materiality business partners of Audi AG, and others.
matrix (see next page). Stakeholder relevance:
GRI 102-40 102-42, 102-43, 102-44, 102-47

Assessment of impact Bar height
Identification of material topics In addition to the relevance of the sustainability topics, in a 5.
0
Audi again enhanced and updated the materiality analysis in further step the members of the Sustainability Steering Com- Impact:
2019 using a multi-stage process. Drawing on internal and mittee evaluated the direct social, economic, and ecological
Color of top of bar
external sources, the company first identified 25 relevant impact Audi has in the chosen subject areas, and classified
sustainability topics within the four action areas “Operations this impact (low, medium, high) on this basis. The findings of
& Integrity,” “Products & Services,” “Employees & Society,” the survey and qualitative impact assessment were then con- Low 4.
and “Value Creation & Production.” solidated, summarized, and approved by the Sustainability 0
Steering Committee. Medium
These 25 sustainability topics were then prioritized based on
an online questionnaire. The number and internationality of Focus on sustainability strategy High
the participants was increased in comparison with the last Audi has taken a definite step forward especially in terms of
3.
survey through reinforced communication measures. Partic- how the findings are shown in the materiality matrix: The 0

Materiality matrix Stakeholder relevance: Bar height

Impact: High Medium Low
PRODUCTS & SERVICES VALUE CREATION & PRODUCTION
Vehicle safety Circular economy
Alternative drive technologies

EMPLOYEES & SOCIETY
Emissions and energy
Transparency of resource management at the plant Fair working conditions and
OPERATIONS conservation and life cycle
modern working forms
& INTEGRITY 5. assessment of various types
0 of drive systems Sustainability
standards in the Occupational health
supply chain and safety
Future-proof
combustion engines
5. Equal opportunities,
0 5.
0 integration and diversity
Sustainable
system offer Training and
development of employees
Ethical
operations Digital Promotion of education
networking and science
and services
Long-term
customer Corporate
relationships citizenship
4.
0 at Audi locations
Data protection 4.
0
and data security
Nature
conservation
Economic and biodiversity
stability
I nnovative capacity and

orporate
C management
governance and Autonomous
compliance driving
3.
0 4.0 4.0 4.0 4.0
orporate
C New
culture and mobility
participation concepts
2.
0 3.0 3.0 3.0 3.0

FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX
& INTEGRITY & SERVICES & PRODUCTION & SOCIETY
Can sustainability
also be profitable?

Three-pillar approach
Sales or the environment? Market or morality? Profit maximization or ethics? Wait!
Audi says “and” not “or.” The past has shown that operating without ethics and
a sense of proportion does not work. But what does ethical operation mean for Audi?
Nexus between compliance,
B
integrity & culture
At Audi, ethical opera- holistic view of sustainability – in
tions mean that the com- its business decisions, the compa- Compliance Integrity
pany has a responsibility ny always takes account of ecolog-
at Audi means acting in at Audi means respon-
to society. What follows ical and social aspects to ensure
harmony with laws and sible business activity
is value-oriented action geared to its long-term competitiveness and internal rules as well as based on society’s
sustainability, focusing on human- therefore uphold its responsibility protecting the company accepted values and
kind, society and the environment. as a reliable employer. Economic from harmful activities. In principles, which
The aim is a win-win situation for efficiency and job protection are everyday work, the Code of the company has
all participants. And the founda- equal-ranking goals in this regard. Conduct provides guidance. embraced. Integrity
tion for this is to acknowledge that Achieving these objectives calls It defines the fundamental sharpens the aware-
running a business is a meaningful for a balance between compliance, principles that govern our ness of employees to
day-to-day work. These critical situations.
activity in the interests of human integrity and an open corporate
apply Group-wide and are
solidarity, social development and culture. binding on everyone, re-
quality of life. Business and ethics gardless of hierarchal level.
are not insurmountable contradic- Opportunities and risks
tions in terms – instead, they are For Audi, integrity and compliance
two sides of the same coin. are the basis of all our actions and
In the long run, Audi will only be take top priority both within the
successful – and successful means company and across the entire
profitable and oriented toward the Volkswagen Group. They form the
Corporate culture
common good – if the company basis for a good reputation, for the
expresses how people at Audi work
succeeds in bringing ethics and trust of customers and business together and what values are decisive
results, conscience and profit, the partners, for the well-being of its in this respect. Corporate culture also
environment and sales into con- employees and for sustainable eco- provides for uncertainties to be freely
structive alignment. Audi takes a nomic success. voiced by each individual.

Thematic goals of Effective anti-corruption

Together4Integrity the mission field “consistently Agenda 2030
as a compass sustainable,” underscoring their The Audi Group places a high priority
“Together4Integrity” (T4I) had its importance and absolute priority on combating corruption. Within our
origins in a requirement imposed in all divisions and business company, the Audi Compliance & In-
by the Monitor in 2018. It is a ho- processes. tegrity department helps to tackle cor-
listic Volkswagen Group program ruption. In the year under review, this
that consolidates all measures, Basis: compliance and integrity Group function supported 34 national
projects and initiatives relating to It is vitally important for corpo- and international participations in the
ethics, integrity and compliance rate governance to ensure that all compliance focal area of anti-corrup-
under a common umbrella, thus decisions are in harmony with ap- tion in the course of consultancy inqui-
making a major contribution to plicable law as well as with inter- The focus is on ries, the implementation of guidelines
long-term and sus-
cultural change. By 2025, T4I will nal rules and values. Audi’s Code tainable economic and the execution of training pro-
be rolled out across all brands and of Conduct serves as the basis in growth. grams. Fundamentally all those enti-
participations of the Volkswagen this respect. It defines the essen- ties where AUDI AG holds a majority
Group, and will give its workforce tial principles that apply to daily interest or management responsibility
of some 670,000 employees work routines in the company. The or that are of particular importance are
worldwide concrete guidance and Code of Conduct applies Group- included in this process.
recommended actions for ethical wide and is binding on everyone, To ensure sustainable prevention
and compliant behavior in their regardless of hierarchal level. All of corruption, the process of dealing
everyday work. employees are required to behave with grants and avoidance of con-
Currently, more than 100 mea- in accordance with these guide- flicts of interest and corruption were
sures are being implemented lines. Audi has also committed it- lation with regard to corruption for The focus is on
uniformly enshrined in a Volkswagen
at the German sites of AUDI AG self to the UN Convention against which further investigative steps the sustainable Group Policy for the first time. AUDI
and a large number of them Corruption and largely meets the were initiated. use of all natural AG incorporated this into a new cor-
have already been completed. requirements of the German Cor- In two cases, the suspicion was resources. porate policy, which replaced the pre-
At the same time, AUDI AG is porate Governance Code. confirmed in the course of the vious guideline.
responsible for rolling out the Yet not only is compliance with investigation and appropriate To give Audi employees training on
T4I program at its subsidiaries applicable legislation, conven- personnel measures were taken. relevant corruption topics, interactive
and participations. T4I has al- tions and company regulations In one case, the suspicion was not web-based training was introduced
ready been implemented at over essential; so is integrity – namely, confirmed, and in another it was to all divisions in 2016. Practical sit-
half of these entities, meaning responsible entrepreneurial action not possible to conclude the in- uations that reflect everyday working
that it has already reached some geared to the values and princi- vestigation fully during the period life are used to sensitize employees
85,000 of around 90,000 ples acknowledged by society and under review. to corruption-related situations.
employees in total. agreed at Audi. Training is mandatory for all non-
The topics of compliance and Within the scope of the whis- Compliance organization The aim is to pro- production employees and managers
integrity, along with the “Togeth- tleblower system, in 2019 the The “Integrity, Compliance, Risk mote peaceful and of AUDI AG. This training was updat-
inclusive companies
er4Integrity” program, are firmly Audi Investigation Office received Management” organizational unit ed at the end of 2019 and extended
in the interest of
entrenched in Audi’s corporate four centrally filed notices of pos- reinforces general awareness of sustainable devel- to include additional topics such as
strategy “consistently Audi” in sible suspicion of a regulatory vio- the need for compliant and opment. donations and sponsoring.
Continued on page 28

Whistleblower system for regulatory violations: the Audi whistleblower and ombudsman systems
Whistleblower system
External reporting channel Internal reporting channel
The Ombudsman System of the Volkswagen Group Establishing an integrity-based corporate culture also calls for vigi-
serves as an external input channel. As part of this lance on the part of all employees, along with their readiness to re-
system, two experienced external attorneys-at-law Forwarding of port possible regulatory violations where they have substantiated
are designated as neutral ombudsmen. Any em- hints checked suspicions. A central component is the Audi whistleblower system.
ployee, business partner or external third party can and released by It helps identify and put a stop to erroneous behavior – and in
contact them if they discover evidence of regulatory whistleblowers particular serious regulatory violations – at an early stage. In-
violations. All reports are treated in confidence and ternal and external points of contact are provided for reporting
forwarded to the Audi whistleblower system. The breaches of the law and of internal regulations by employees in
whistleblower may choose to remain anonymous. respect of Audi. The main point of contact within the company is
The ombudsmen are subject to the attorney’s duty the Audi Investigation Office. In 2019, 694 reports of possible
of confidentiality. The following procedural princi- regulatory violations were received. The number was consider-
ples, among others, apply here: ably lower in the previous year with 215 reports.
Whistleblowers are protect- Such persons are always pre- ments are duly taken into
ed and their statements are sumed to be innocent until account. How to contact the whistleblower system:
treated confidentially. Their the opposite is proven. In
Personally Postal address
identity is not published if so addition, they have the right If, in the course of the in-
The Audi Investigation Office AUDI AG
desired and legally possible. to be heard and to represen- vestigation, no regulatory
I/GC-C5 Whistleblower system
They should feel fairly treat- tation and to be advised and violation can be identified,
AUDI AG 85045 Ingolstadt
ed. Any instances of discrim- supported during an inves- then the Investigation Of-
85045 Ingolstadt
ination, intimidation or hos- tigation by a member of the fice will support the person email
tilities toward whistleblowers employees’ representative concerned in informing his whistleblower-office@audi.de
will not be tolerated. body responsible. In this or her employment environ-
context, the right of AUDI AG ment. The primary objective
Whistleblowers who expe- to define the time schedule is to protect the reputation
rience discrimination on for the investigation remains of the employee. Reports Hints can also be submitted anonymously. In the process, the identity of the whistleblower is
account of their report can unaffected. of regulatory violations not revealed to Audi. The following channels are available for submission of anonymous hints:
contact the Audi Investiga- are checked for plausibility
tion Office, which will take up The costs of legal representa- by the Audi Investigation Online reporting channel
the case, evaluate it in accor- tion are borne on principle by Office, categorized, and in www.bkms-system.com/audi
dance with the whistleblower the person concerned. Within the event of initial grounds
process and clarify it. the scope of the investiga- for suspicion, assigned to a The 24/7 hotline of the Volkswagen Ombudspersons (external lawyers)
tion, the persons concerned suitable investigating body Group’s whistleblower system:
Persons concerned, in con- are given the opportunity to in the Company or outside it +800 444 46300 (free of charge) http://www.ombudsleute-der-volkswagen-ag.de
trast, must be protected present a statement on the to resolve and conclude the +49 5361 946300 (subject to charges,
from unlawful accusations. allegations made. The state- matter. internationally accessible) http://www.ombudsmen-of-volkswagen.com

Training to reinforce compliance and integrity

onest behavior at AUDI AG and
h to the long-term safeguarding of is monitored by the Supervisory
its subsidiaries. value-oriented behavior within the Board’s Audit Committee. The range of training avail- than tripled the number of
The compliance functions ensure company. able has more than doubled participants who attended
that systematic misconduct is The Compliance Organization Diesel issue marks watershed in the past two years from 11 compliance training sessions
prevented and company-related uses the CMS implemented at Audi Resolving the diesel crisis again measures in 2017 to 27 mea- compared to 2017.
criminal acts and loss of reputa- to steer all compliance measures accounted for a significant portion sures at the end of 2019. Group-wide training stan-
tion are avoided. They reinforce and processes to ensure adherence of the Supervisory Board’s work Particular emphasis in dards are observed in devel-
compliant behavior by the Board to compliance requirements within in 2019. Accordingly, the Super- 2019 was placed on compre- oping Group-wide training
hensive mandatory training measures. In addition, the
of Management, managers and the company. visory Board dealt in detail with
for the Board of Manage- Compliance/Integrity depart-
employees and fulfill a preventive Within the Audi Group, we have this topic, for which it was kept ment and all employees of ment introduced a concept
and independent advisory function defined compliance focal areas informed continually by the Board AUDI AG on the subject of development process for
in this regard. Key topics include which need to be observed in order of Management, both in writing the Audi Code of Conduct as quality assurance to further
anti-corruption, money laundering to protect our brands. These are and orally, over the last fiscal year. well as the international roll- standardize new training
prevention and human rights. permanently tracked and imple- For further information on the out of the measure to Audi measures. Furthermore,
To raise the level of awareness mented through the annually up- tasks and issues addressed by the subsidiaries. a risk-based training and
among managers and employ- dated compliance program. Supervisory Board, please refer to Moreover, additional train- communication concept was
ing obligations were imposed implemented that provides
ees for compliance topics and, in A Group-wide compliance risk pages 104ff. of the Audi Financial
(e.g. prevention of money for the introduction of man-
particular, for the Audi Code of analysis was carried out in the year Report 2019. laundering and the financ- datory training to identify
Conduct, the whistleblower sys- under review to systematically The diesel issue marks a water- ing of terrorism). This more high-risk groups.
tem (page 27) and anti-corruption identify risks. Standard compliance shed at Audi. At the same time, it
(page 26), communication and measures were developed and is triggering a transformation that
training measures were developed rolled out to reduce potential risks; will make the company stronger Excerpt of measures implemented in 2018/2019:
in 2019 in line with a risk-based moreover, this analysis is repeated and more viable in the future. This Face-to-face training Web-based training (WBT)
approach and were carried out and on a regular basis. Audi’s partici- transformation goes way beyond
documented accordingly pation is supported in an advisory compliance by placing the spot- nti-corruption for the
A udi Code of Conduct
A
(this page). capacity within the scope of a light on integrity, responsibility Board of Management and
revention of
P
coaching model. and added value for society. For top management
money laundering
Programs and processes The effectiveness of the Com- instance, in light of the diesel udi Code of Conduct
A and the financing of
The Compliance Management Sys- pliance Management System is crisis AUDI AG, as a subsidiary for the Board of Manage- terrorism
tem established at Audi affirms the regularly reviewed and refined if of Volkswagen AG, temporarily ment
I ntegrity, culture &
principles, measures, processes and necessary. The aim is to achieve suspended its membership in the histleblower system
W compliance
structures at the company to as- continuous improvement in all UN Global Compact effective No- for key contact points
utsourcing
O
sure lasting compliance with laws elements of the CMS. In pursuit vember 12, 2015. Irrespective of
raud
F
and internal regulations through of this, the appropriateness and the temporary suspension of its raud
F
corporate bodies, employees and effectiveness of the individual membership, the company is com- ompliance awareness
C
third parties acting on behalf of compliance measures are sys- mitted to the principles of the UN I nteraction with public of-
the company. An integral element tematically evaluated. The same Global Compact. ficials
of CMS is Integrity Management, applies to the effectiveness of the On its way out of the diesel orkshop offerings on
W
which contributes in particular Risk Management System, which issue, Audi is also receiving integrity

support from Larry D. Thomp- organization-wide network of in- Key focal areas
Business and human rights
son, the monitor appointed by tegrity ambassadors. As the inter-
the U.S. Department of Justice. face with Integrity Management,
Thompson and his team examine the ambassadors help commu-
Freedom of association and Diversity, protection of vulnerable,
and evaluate compliance with nicate moral behavior to specific
collective bargaining particularly indigenous groups
the conditions of the settlement target groups in their divisions
agreements reached with the U.S. and serve as a divisional point of
Department of Justice at the start contact for employees on integrity
of 2017. In addition, he recom- questions. In 2019, over 50 am-
mends new measures to reinforce bassadors in Ingolstadt and Neck-
compliance and control systems arsulm were selected and suitably No discrimination,
and verifies their implementation. empowered for their tasks. No particularly in the
Certification by the monitor is a The aim is not only to provide forced labor workplace
precondition of the settlement ar- employees with information, but T
s
ht
ol
rangements with the U.S. Depart- also to qualify them in line with the
Employee rig
era
ment of Justice. topics at hand: This is why AUDI AG
Human
nce
Something like the diesel issue increasingly relied on training ses-
rights
must never happen again at Audi. sions in the year under review. Tolerance toward
compliance
For this reason, the entire Board of No different opinions
Management personally pledges Increased focus: human rights child labor and respectful ex-
to continue our efforts of recent It is important to Audi to identify pression of them
years with regard to ethics and and mitigate possible risks of vio-
compliance once the monitorship lations of human rights in its busi- ty
S af e
has come to an end. The members ness processes at an early stage.
of the Board of Management re- In doing so, it relies for guidance
port to the Supervisory Board on on international parameters and
progress. standards to which the company Good
commits itself. This applies both to working Ensure the
conditions safety of people
Sensitizing employees processes within the company and
Motivation and activation of Audi’s to collaboration with our business
workforce are of particular impor- partners and suppliers – i.e. at var-
tance to ensuring corporate culture ious levels of the value chain and No involvement in any Key focal areas at
unlawful activities Group level
based on integrity. Integrity man- the supply chain.
agement ensures high visibility of Relevant international standards
this topic by means of continual for the subject area of “business
communication in employee media and human rights” include, in
as well as dialogue events. particular, the United Nations’
The base and core of sustainability management
Moreover, in the year under re- Universal Declaration of Human at Audi are voluntary commitments and principles.
view the company established an Rights, which is codified in the Detailed documents are available here.

International Covenant on Civil in the Code of Conduct for business a corresponding statement on the business partners apply the same
and Political Rights and in the In- partners. Moreover, Audi has a gen- corporate website on measures ad- standard of integrity in business
ternational Covenant on Economic, eral agreement in place regarding opted in the field of human rights. practices that applies to the Volk-
Social and Cultural Rights. Further- respect for and compliance with In Germany, Audi supports the fed- swagen and Audi Group. For this
more, the Core Labor Standards human rights. eral government’s National Action reason, Audi carries out integrity
of the International Labor Organi- In recent years, a trend toward Plan (NAP) “Business and Human checks of business partners and
zation (ILO), the Core Labor Stan- regulating business and human Rights,” for instance by working suppliers known as Business Part-
dards of the International Labor rights in national laws has been with other stakeholders (civil soci- ner Due Diligence (BPDD). These
Organization (ILO) and the OECD emerging in leading economies. ety, companies, associations, etc.) checks are part of a risk-based,
Guidelines for Multinational Enter- As a global business, Audi also in the automotive sector’s industry transparent and proper documen-
prises are relevant in this regard. observes national requirements dialogue to find solutions. tation process. The Group uses a
The basis for cooperative work re- that put international standards Together with the Volkswagen special BPDD tool for risk-based business partner does not meet
lations characterized by social har- in concrete form. One example of Group, Audi is working on integrat- checks on whether existing and our compliance requirements,
mony includes, for instance, Volk- national reporting obligations is ing this subject into its existing potential new direct business part- risk-mitigating measures are tak-
swagen Group agreements made the UK Modern Slavery Act 2015: Compliance Management System ners act with integrity and comply en. In specific cases, these may
with the Group European Works Audi meets its transparency obli- in a structured fashion. The Group- with all relevant laws, rules and also lead to the termination of a
Council and Global Group Works gations every year and publishes wide work group has defined key regulations in their business. If a business relationship.
Council (Social Charter). They offer points in the sense of the UN guid- In addition, there was a revision
employees certainty as regards ing principles known as “Salient of the Code of Conduct for Busi-
their employee and human rights. Business & Human Rights Issues” ness Partners, in which the Com-
In essence, this includes their right (page 29) in the field of business pliance, Procurement and Sales
to freedom of association, their and human rights. divisions together draw up funda-
right to collective negotiations and mental expectations of the busi-
equal pay, and the banning of dis- Strict compliance requirements ness conduct and ethical behavior
crimination relating to employment The Audi Group works with a large of their business partners for the
and profession. The company’s val- number of partners in the course first time, e.g., on the topics of
ues are also entrenched in the Code of its business operations. The human rights or the prevention of
of Conduct for all its employees and company wants to ensure that its corruption.

Traveling safely on
the data highway
Audi owners expect digitally networked vehicles Thematic goals of
Agenda 2030
and services. In the process, customers rely on their
personal data being secure at all times – whether
inside the vehicle, in the cloud or on Audi servers.
basis for generating this genuine the vehicle. This makes it clear that
added value is the ability to know huge volumes of data are gathered
the user, his or her needs and influ- and processed in real time. The ge-
ential marginal factors as well as neric term for this is digitalization.
Digitalization offers immense op- is the personal intelligent assis- possible. Audi therefore regards conscien- The goal is to es-
tablish a resilient
portunities. Not only does it enable tant – better known as “PIA.” Using tious use of data as an integral part
infrastructure, to
new services and useful functions; artificial intelligence methods, High data protection standards of its corporate responsibility and promote inclusive
it also makes mobility smarter and “PIA” connects all kinds of data – The Audi Intelligence Experience embeds this principle in the Corpo- and sustainable
more personal. Data and informa- sensor data derived from the car project was presented at the Con- rate Policy on Data Protection. It industrialization and
to support innova-
tion are necessary to develop these and knowledge of the driver, traffic sumer Electronics Show 2020 complies fully with applicable na-
tions.
solutions and help us understand reports and forecasts and addition- and combines functions adopted tional laws on personal data, data
customers’ wishes even better. The al information sourced from the from various research projects. It protection and personal rights to
focus here is on the principles of Internet. “PIA” responds to voice describes a future scenario of the privacy. The emphasis is on trans-
transparency and data minimiza- input, for instance, “learns” con- “empathic vehicle.” The car ana- parency and self-determination
tion. In addition, we understand tinually and communicates inde- lyzes which functions and settings of how data is used. Audi informs
premium to mean that we protect pendently and adaptively with the its user prefers – such as the seat customers in a suitable way about
our customers’ data and devote user thanks to individually tailored position and massage options, how their personal data is handled.
full attention to data security from algorithms. A similar approach media use, navigation, interior In particular, this includes what
the outset. is being followed by the concept illumination and temperature or data is collected and processed,
In future, the primary objective car AI:ME. It provides an insight fragrances for the car’s interior. for what purposes data is used and In the process, the
digitalization of mo-
will not be to collect as much data into how the car of the future will If desired, it can also orient itself whether certain data is transmit-
bility and vehicles
as possible but to offer the max- become a very personal mobility toward the user’s present state ted to third parties. Transparency helps achieve the
imum added value with our cus- partner, with systems that think of mind and feelings. To do so, also means providing customers transition toward
tomers’ data. Throughout recent ahead and in sync with the user the system interprets the style of with information on exactly what an economic and
social lifestyle that
years, Audi has demonstrated this and are capable of continual learn- driving or vital functions such as personal data on them exists at
is better for the
in a variety of research projects and ing. This enables them to respond the driver’s skin temperature and Audi. Data secrecy applies to such planet and for each
concept cars. One example of this proactively and with empathy. The pulse as recorded by sensors inside information. individual.

Data privacy? Yes, please!
Encrypted communication “Our growing range of digital services

Protecting the vehicle and back- is also increasing our responsibility.
end infrastructures is essential We need to communicate with our cus-
at Audi, as is secure data trans- tomers on data use and data privacy in
mission. Audi uses encryption a manner that is easily understood,”
routines of the kind used, for explains Konstantin Willmann. The
example, for online banking, function developer in the Audi connect
both when connecting from the area is responsible for implementing
car and from a smartphone to these principles in the vehicles. “That’s
the Audi Backend. Data storage why – and also due to the EU General
on Audi servers is likewise en- Data Protection Regulation (EU GDPR)
crypted. It goes without saying – we have developed a menu with data
that administrative intervention privacy settings for our Audi models,”
is documented in a plausible adds the developer. What this means for Audi MMI: Customers decide with just a few clicks
manner. customers is that while in the car, it only
takes a few clicks for them to reach their
High data security “privacy settings” in the MMI user menu. release any data at all (activate privacy). this end, the main user can deactivate
Data protection enjoys high There they can activate or deactivate Any user can customize the settings in nearly each individual service via the
priority at Audi as early as the their personal online services based on the vehicle. Online functions of relevance myAudi web portal. These services are
development stage of products their data use, and make targeted deci- to safety or required contractually or by then no longer available to any user of
and services. Audi protects sions on data collection options. law – such as “Audi connect emergency the vehicle and cannot be reactivated
sensitive data using recognized Since model year 2018, customers can call” or the “Audi connect stolen vehicle from inside the car.
and proven embedded security use settings in their vehicles to decide tracking system” – cannot be deactivated On the myAudi portal as well as in the
mechanisms and standards. whether or not they principally agree to in the privacy settings. These services data privacy information in the vehicle,
When developing new functions, data processing. Since model year 2020, exclusively exchange the data governed customers can also find details for every
the company enhances security customers can use these settings in a by contract or the statutory extent if ac- single service about the data processed
mechanisms to meet or exceed detailed manner in almost all new Audi tively used/commissioned by customers. by it.
the respective state of the art in models. In the privacy settings of the Settings which a user has activated
data protection. The latest tech- MMI, customers can deactivate online inside the car cannot be changed outside
nical and organizational mea- services if they do not wish for their data the vehicle; here top priority is given to
sures ensure optimum security to be collected and used. Thus, they can the user’s privacy in the vehicle. The per-
in the car. repeatedly decide if they would like to son referred to as the “main user” of an * Users can find information on which gene-
share a GPS position (using the precise Audi can additionally restrict the services ration of MIB is installed in the vehicle or how
certain service settings can be modified and
vehicle location), if this should even be portfolio of his or her vehicle in all mod-
Further information on data selected in their vehicle’s instruction manual,
protection and data security is displayed to other users (sharing the els as of model year 2019 that feature from their Audi partner or Audi’s central custo-
available at Audi.de vehicle location) or if they do not wish to an MMI system with a touch screen. To mer service team.

Audi redefines the pledge

“Vorsprung durch Technik”:
It is no longer solely about what
is technically possible. Instead, it
is about focusing consistently on
the wishes of customers.
To this end, a comprehensive customer experience manage-

ment system is in place at Audi. It serves as a control instru-
ment and enables customers to experience a consistent and
seamless customer journey that ranges from the classic sale
to virtual advisory services.
Dialogue with customers

A prerequisite for this is to engage in much more intensive
dialogue with customers from the outset to identify their
product and service development needs and to establish and
measure the key interaction points within the customer jour-
ney. This enables optimization processes to be triggered in
good time, including interactions such as the handover and
Benefiting from collection of the vehicle. The fundamental question to ask is

what exactly do customers want and need – right now and in
customer experiences the future.
To spark people’s overall enthusiasm for Audi and make

them loyal fans of the brand, the Company needs to offer
them user-friendly products and digital services that enable
When developing sustainable products and services, Audi The ideal customer experience is becoming an increasingly them to easily get in touch with Audi by means of analogue
relies on long-term relationships with its customers. Thanks significant enthusiasm driver and distinguishing feature and digital channels. These can be digital services such as
to a brand-differentiating customer experience (CE), the of a brand, thus making it a key criterion for a purchasing the myAudi app, which enables all digital solutions at Audi
company intends to become number one for customer expe- decision. This is why it is important to develop new prod- to be booked, managed and used via a single intuitive user
rience. Comprehensive CE management is a key instrument ucts and services sustainably, while focusing on customers interface. Or they can also be central service stations or
to control and measure customer satisfaction worldwide. and their specific needs. dealers via which customers interact with Audi.

What does an ideal customer journey look like? It gener- the CEM Sales survey for purchases of new cars and under the
ally begins with initial contact being made without any com- CEM Used Cars survey, customer satisfaction with the sales
mitment. Potential customers perceive Audi as a possible process is determined using a brief online questionnaire –
provider of mobility solutions and are interested in finding depending on country-specific implementation, this survey
out how the company can satisfy their mobility needs. On- is taken 48 hours to two weeks after vehicle collection. The
line, Audi offers them advisory services on its website, via CEM Service survey follows 48 hours after a service appoint-
the mobility needs analysis and the configurator. Offline, ment to assess the customer’s most recent workshop experi-
on-site advisors at automobile showrooms use their exper- ence. Customers can answer four questions pertaining to the
tise and digital tools to assist customers in making their respective event.
decisions. Interested customers can then log in using the
myAudi app and book a test drive online or directly with the As many as 82 markets are currently taking part in the Audi
Audi dealers on site. CEM study. Therefore, Audi’s survey generates about one
million interviews each year, with around 15,000 users at the
Audi also advises and accompanies its customers individu- businesses accessing the CEM portal with the latest custom-
ally after they have purchased their vehicles, establishing er feedback, amounting to 2,300 logins each day. The partic-
even more touchpoints for customer contact in the course ipation quota averages around 30 percent, which shows that
of Audi’s customer experience management measures along customers certainly are quite willing to pass their feedback
with intensified personal relations. While waiting for deliv- on to the businesses. In the future, Audi also plans to publish
ery, customers can thus obtain information on their orders the CEM evaluations on dealer and sales websites, thus pro-
placed and, if necessary, advice on alternative mobility solu- viding even more added value for customers.
tions. Of course, Audi also maintains contact with its custom-
ers after delivery and offers intelligent recommendations, Starting in 2020, a new question on satisfaction with the
tutorials, invitations to exclusive events, original accessories product was integrated as the final aspect of the CEM survey.
and individually tailored offerings in addition to its classic In around 80% of all CEM interviews, respondents provide
Audi listens! Strategic customer
vehicle and customer service. additional voluntary feedback about the product. These Prod-
relationship management
uct Reviews are a valuable source of information for those
Sustainable customer relationship management with product responsibility at Audi. Customer satisfaction Audi’s goal is to become the leading
In the interests of sustainability and long-term customer re- measurement beyond the CEM is supplemented by evalua- provider of sustainable premium mobil-
lationships, within the scope of its customer experience man- tions derived from the app portals on digital offerings. ity. In doing so, the company focuses its
agement (CEM) program the company relies on online sur- attention on customers’ needs. To inspire
veys and evaluation tools as control instruments for gauging All satisfaction measurements are based on the 5-star customers and be successful, not only does
customer satisfaction. Customers should be able to interact ratings frequently used in online surveys. This uniform ap- a company need to understand its clien-
with Audi quite individually and talk with the company about proach serves as the basis to continue delivering premium tele; it must also shape the future even
their specific experiences. The CEM Sales, CEM Service and, in services and thus consistently aligning activities to the fu- more intensively together with them. This
some markets, CEM Used Cars surveys measure the degree of ture of mobility, a strategy that is beneficial to customers, is why sustainable and digital products and
customer satisfaction with conventional retailers. As part of dealers and Audi alike. services are one of Audi’s top priorities.

In the interests Operating return on sales 2019 [100]
Reflects the ratio of operating profit to sales and stands
of all stakeholders
for profitability. The operating return on sales of 8.1
percent means that Audi generated an operating return
on sales of around 8 cents on each euro turned over.
The Audi Group not only wants to secure its own compet-
itiveness over the long term; it also aims to act in a val- 8,3 8,1
ues-led and viable way, in the interests of all stakeholders.
7,8
In this context, Group-wide risk and compliance manage- 6
ment systems provide guidance for the company’s econom- 5,1
ic stability – especially in times of transformation processes (in percent)
such as digitalization and decarbonization.
In the wake of responsible and values-oriented corporate

governance, the primary focus is on profitable, sustainable 2015 2016 2017 2018 2019
growth. Growth that is not measured by volume, but by the
key figures of operating return on sales and return on invest-
ment after CO₂. Audi takes a holistic view of sustainability
– in its economic decisions the company always also takes ac-
count of ecological and social aspects in order to ensure long- Sustainable operations thanks to ESG change. Established business models are being replaced.
term competitiveness and therefore uphold its responsibility Aspects that have become increasingly established on the New, sustainable products ensure growth. Companies man-
as part of society. capital market, such as Environment, Social and Governance aged according to ESG criteria operate more successfully,
(ESG), also contribute to the company’s economic stability. securing precious market share.
The Audi Group invests in future technologies. Areas of focus Investors have realized that economic success and sustain-
include investment in the field of digitalization and alter- able commitment are complementary and not contradictory. Just how massive the impact of ESG performance can be on
native drive technologies. For the period 2020 to 2024, we corporate value is something that Audi can assess thanks to
thus envisage research and development activities as well as ESG is therefore a specific expression of the paradigm change its own experience: The diesel crisis adversely impacted the
capex amounting to some EUR 37 billion. Current plans re- currently unfolding in business and society. This means a company in many respects. And all employees are aware that
flect a considerable improvement in investment and cost dis- symbiosis that no longer focuses on short-term success, but something like the diesel crisis must never be allowed to
cipline along with a strong bias toward investing in electric on long-term, healthy interaction which benefits both sides happen again at the company.
mobility – of the total of around EUR 37 billion, EUR 12 bil- – companies and society overall. The consideration of ESG
lion is earmarked for electric mobility. Audi also continues to aspects is not only active risk management; it also serves as A challenging fiscal year
develop the worldwide production network, taking account of the basis for long-term economic success – especially in this Return on investment (ROI) reflects how effective our busi-
sustainability aspects. day and age, when society’s values are undergoing lasting ness activities are, by considering the return achieved on

EUR 55,680 million 2015

2015 1.627 EUR 4,509 million
Operating profit 2019
Revenue in 2019 [100] 2016
2016 2.094
This is the result achieved by Audi after deducting
This comprises all revenue generated by the the cost of goods sold, distribution and general ad-
Audi Group in the past fiscal year. In particular, 2017
2017[102]
4.312 ministrative expenses, taking into account the other
these are proceeds from the sale of vehicles, operating result. Operating profit is the basis for
engines and original spare parts. 2018
2018 2.141 calculating Audi’s profit share.
2019
2019 3.160
12.7
(in EUR million)
(in Mio.EUR)
the capital employed over a given period. Return
on investment already takes account of CO2 compliance Net cash flow [100] percent
measures and can therefore also be understood as Return on investment [100]
Cash flow is the sum total of all incoming and
return on investment after CO2. outgoing payments recorded as part of Audi’s The profitability of an investment is reflected in the
business activities. This key figure is evidence return on investment (ROI). This key figure descri-
While Audi successfully mastered a challenging fiscal year of financial strength – and thus illustrates the bes the percentage-based ratio of operating profit
2019 with substantial operationally adverse factors, the company’s economic health. after tax to the company’s invested capital.
company is pressing ahead with its transformation, aiming to
generate a significant increase in corporate value in the long
term. The Four Rings will strictly focus on customer-oriented
innovations, further developing its business model profitably help support the new business model in financial terms. agreement will produce a cumulative effect on earnings of
and realizing synergies both within the Volkswagen Group This is why Audi has currently chosen to rely on both com- around six billion euros by 2029. Both programs have paved
and in external partnerships. bustion-engine technology and e-mobility. There must be a the way for Audi to once again achieve an operating return on
healthy balance between the fields of economy, ecology and sales in the strategic target corridor of 9 to 11 percent in the
Electric mobility as a business model society, as an imbalance would lead to the imminent risk of medium term.
Achieving a healthy mix in terms of return and carbon foot- economic instability.
print requires the necessary matching product portfolio. In Identifying opportunities, assessing risks
2025, electric cars like the e-tron will account for around Future financial success will be underpinned by two pro- As an automotive group with a global reach, Audi constantly
40 percent of all Audi models worldwide. This why it makes grams. First: the Audi Transformation Plan (ATP). It is aimed operates in a dynamic environment and is continually con-
sense that the portfolio of the 2025 brand comprises some at fast-acting aspects of change. The ATP was successfully fronted with a wide variety of opportunities and risks. For
30 electrified models, including 20 fully electric ones. While launched in fiscal year 2018 and is expected to generate the company, sound corporate governance revolves around a
the electric mobility business model entails risks, it also some EUR 15 billion for future projects in five years (2018- constructive dialogue and transparent handling of opportu-
offers numerous opportunities. Electrification of the vehi- 2022). Specific measures have already been identified for 80 nities and risks. Apart from meeting statutory requirements,
cle fleet is a necessity to lower fleet CO₂ emissions. In the percent of them. the particular purpose of an effective Risk Management
course of this long-term transition to electric mobility, what System and Internal Control System (RMS/ICS) is to validate
was referred to as the classic business model – namely the Second: Audi.Zukunft. The program is aimed at making the entrepreneurial goals as well as long-term viability and
sale of premium automobiles with combustion engines – can the company structurally fit and competitive by 2029. This competitiveness. The Risk Management System is based

7.9%
Three Lines of Defense Supervisory Board Research and development
expense ratio 2019
This figure indicates the
Board of Management percentage of sales invested
in research and development.
Ratio of capex 2019 [100] [101]

Investments in property, plant and equipment, investment
property and other intangible assets according to the cash
First line of defense Second line of defense Third line of defense
flow statement in relation to revenue.
(in Prozent)
(in percent) [118]
6,5
6 5,7 5,9
Divisions Central CRC organization Internal audit 4,9
Coordination of control
Operational Audit of ICS/
processes, governance and
risk management RMS
methodology
2015 2016 2017 2018 2019
on the internationally recognized standard defined by the inadequate anchoring of sustainability aspects in products In order to learn from risks that have occurred and avoid
Committee of Sponsoring Organizations of the Treadway and processes or possible risks arising from extreme weath- them from happening again, a concept was launched to
Commission (COSO). Audi uses a system comprising corpo- er events are also taken into account. implement a systematic cause analysis and lessons-learned
rate and operative risk management. By way of a systemat- process in 2019.
ically designed risk management architecture, Audi adopts The annual GRC process has been supplemented by a fur-
the “Three Lines of Defense” model (see diagram), with its ther regular process, namely the Risk Quarterly Process. Further corporate risk management tasks at Audi include ex-
clear separation of tasks and functions. The goal here is to record, evaluate and continuously mon- ecution and ongoing development of risk management tools,
itor short-term, operative risks across all divisions and pro- training courses and interactive training programs as well as
The Risk Management System helps to identify and min- duction companies. advising the operating units.
imize potential risks and, where possible, to avoid them
altogether. To ensure this, latent and recurring risks for the Moreover, AUDI AG consistently further develops the Risk
Audi Group arising from its business activities are record- Management and Internal Control System. The Internal
Further key financial figures are available in the Appendix.
ed each year within the scope of the Governance, Risk & Control System within the Volkswagen Group and the Busi-
For detailed information on the impact and the current situation as re-
Compliance (GRC) process, including the countermeasures ness Continuity Management System are currently gards resolving the diesel crisis as well as on action taken, please refer
and control activities adopted. Risks such as the potentially being extended. to the Audi 1019 Financial Report, on page 104f.

Who we are and

how we want to be
How a company’s employees behave and which rules they

follow in the process are firmly anchored in the corporate
culture. Values and standards reveal a lot about identity.
Appreciation, openness, responsibility and integrity are the
corporate values of Audi.
These values illustrate that the Audi Group relies on team-

work, embraces new challenges and embodies diversity. In
addition, Audi has set itself the goal of being a company that
bears responsibility – for the environment and society. Mis-
takes should not be concealed, but rather addressed. This is
a matter that concerns us all, particularly in the wake of the
diesel crisis. It is also the only way to improve and constantly
progress. Our corporate culture needs to be enhanced and
put into practice.
Why change is important

To raise awareness for other and new governance princi-
ples and promote understanding for the need for a cultural
change in the working world, as part of the “KulturZeit”
project, Audi organized a panel discussion in October 2018.
It centered on “The Silent Revolution,” a movie documenting
the process of rethinking in the business world. The change
is demonstrated using the Upstalsboom hotel chain as an
example. As a second part of the series of talks entitled “BE
INSPIRED,” visitors to the Audi Forum Neckarsulm not only
had the chance to see the movie, afterward they were also
able to talk to guest speakers such as Kristian Gründling, the
Appreciation, openness,
responsibility and integrity: director of the documentary. The goal was to encourage new
Illustration of the Audi values ideas and provide impetus for people’s day-to-day lives.

Specific measures for successful collaboration

Nobody is perfect. Ensuring that this adage becomes part of
the culture requires pioneers who frankly and honestly dis-
cuss matters that did not go well. This is precisely why Audi
organized a series of events: “try.fail.learn” is intended to
encourage employees to embrace new challenges, take risks,
fail once in a while and stand up again, only to reflect and
learn from it. Participants share their own stories of failure,
how they handled the situation and what opportunities arose
as a result thereof.
Such an exchange between employees requires

flat hierarchies. Distances need to be dismantled first before
A scene from the film people can learn from one another. The “Role Model Program
“The Silent Revolution” 2.0” shaped the year 2019. It comprises an entire package
The movie documents
of measures to enable Audi managers with leadership func-
cultural change in the
working world. tions to improve the corporate culture together with their
employees. For instance, in “A Week in the Life of....,” they
became better acquainted with the tasks of a manager: What
exactly does a member of the Board of Management actual-
ly do? And what does their typical workweek look like? The
special “Blind Date” format gives random lunch partners the
opportunity to exchange their views. The “Culture Catalog,”
a crowdstorming initiative by employees for employees, also
How culture works in everyday situations Audi has considered its own leadership behavior in encourages the exchange of views. The catalog gathers and
The Code of Code of Cooperation and Volkswagen Group Es- depth since 2013, and drew up the Audi leadership shares ideas on new forms of collaboration.
sentials serve as guiding principles to ensure that corporate principles with the involvement of managers, employ-
culture is consistently put into practice during everyday ees and the Works Council. These were gradually imple-
work at Audi. These principles describe how the brands in mented in the HR tools. Participants have studied the
the Volkswagen Group intend to work together, and they ten principles in depth in a series of workshops. After
serve as the foundation that connects all 600,000 employ- anchoring the new leadership principles in all divisions
ees. At the same time, this also constitutes a pledge to cus- and at the international sites in 2016, Audi has estab-
tomers, shareholders and business partners. The focus is on lished an organizational unit for Leadership and Collab-
the attributes “genuine,” “straightforward,” “open-mind- orative Culture since 2017. Employees should rely on
ed,” “as equals,” “united” and “trust.” these principles for guidance.

Clear values, clear course

The principle of employee agreements reached in favor the overall quality of time
participation is the basis of of the employees. At the spent at the company (mod-
Audi’s corporate culture. At quarterly works meetings, ifications to office design,
all Audi sites and at the sub- the employees are informed ergonomic measures in pro-
sidiaries worldwide, the em- of the activities of the Works duction) and, in particular,
ployees are organized into Council and the current situ- the negotiations on the gen-
independent trade unions ation of the Company. eral agreement “Audi.Zukun-
and employee representative There are also elected ft.” In addition to adjusting
bodies. On the Supervisory youth and apprentice repre- production capacities for
Board of AUDI AG, the em- sentative bodies as well as Ingolstadt and Neckarsulm,
ployees’ elected representa- disabled employee represen- agreements were concluded
tives perform duties such as tatives at AUDI AG who spe- on socially responsible job
monitoring executive man- cifically take up the concerns cuts along the demographic
Stimmungsbarometer
agement, approving import- of the employee groups that factor, for development and
ant corporate processes and they represent. production of innovative and How is the general mood in the work-
appointing the members of The main topics in the pe- environmentally friendly pre- force? The regular employee survey is
the Board of Management. riod under review were – in mium vehicles, on extending another way in which Audi promotes
The Audi Works Council addition to the projects de- co-determination rights employee participation. This survey
plays an active role in shap- scribed in the chapter “Em- pertaining to the vertical gives employees a means of voicing
ing the future at Audi. For ployees & Society” regarding range of manufacturing, their opinion anonymously on various
example, all works agree- the handling of the digital service and development matters and highlighting potential
ments are reached jointly transformation as well as in the company and for the improvements.
with the employee represen- co-determination and cor- common creation of master 40,886 (2018: 42,173) employees
tatives at AUDI AG. The latter porate culture at Audi – the plans for sustainable and took part in the AUDI AG “Stimmungs-
also oversee compliance with reduction of stress factors strategic development of barometer” in 2019. The results are
GRI 102-41
the laws, directives, accident and risks at work that im- domestic factories by the presented in the individual organiza-
prevention regulations, pact physical and especially management and employee tional units and discussed with the
wage agreements and works mental health, increasing representatives. employees.

Operations and Integrity

The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four
core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” as well as “Employees and Society.”
Goal Measure Date Comparison of

SDGs
9 to 11 percent operating return on sales Implementation of the Audi Transformation Plan and the Audi Strategy Continuous
by no later than 2025 development
21 percent return on investment (ROI) Implementation of the Audi Transformation Plan and the Audi Strategy Continuous
by no later than 2025 development
5.0 to 6.0 percent research and development Implementation of the Audi Transformation Plan and the Audi Strategy Continuous
ratio by no later than 2025 [6] development
5.0 to 6.0 percent ratio of capex Implementation of the Audi Transformation Plan and the Audi Strategy Continuous
by no later than 2025 [7] development
Self-finance the transformation to provider Implementation of the Audi Transformation Plan and the Audi Strategy Continuous
of sustainable, individual premium mobility development
EUR 15 billion measure potential through the Programs already set up with Project Management Office (PMO) and work packages 2022
Audi Transformation Plan 2018-2022 from the Board of Management. Flanked by ongoing monitoring and control.
Reinforce Group-wide compliance and integrity Implementation of the Group-wide compliance and integrity program 2025
Together4Integrity in all companies through 2025
Accompanying communication campaign Together4Integrity 2025
Global protection and responsible Definition of data processing principles applicable worldwide 2020
handling of personal data
Establishment of a data protection organization within the Audi brand group 2020
Binding measures in the Audi brand group, e.g. maintaining a procedure directory, Continuous
internal reporting processes for data protection violations, ensuring the rights of development
parties concerned or establishing an appropriate risk management system

Which technology
is truly sustainable?

T
he Audi A5 approaches the
intersection. The stop sign
tells the driver to stop – but
the A5 does not slow down.
It enters the intersection without
braking. The driver of the Audi A1, who
has the right of way, doesn’t stand a
chance – she cannot stop in time. She
swerves to avoid the other vehicle, but
the collision is inevitable.
This accident* happened a few weeks
ago, but in the virtual world it takes
place again and again from many differ-
ent angles – from an aerial perspective
and from the view of the two drivers
involved in the accident. The 3D anima-
tion of the accident reconstruction is
repeated several times so that all the
spectators in the room can get an ac-
curate idea of what happened. On this
Friday in November 2019, around 20
experts from various fields are sitting
in a meeting room at Technical Devel-
From all opment in Ingolstadt. The AARU, Audi
perspectives: Accident Research Unit, has invited
Maximilian the experts to an interdisciplinary case
Purfürst, Kristin
Blum, Thomas review. In addition to Audi employees
Schenk and from Product Analysis, Data Analysis
Mathias Baumann and Driver Assistance Systems and from
(from left to the specialist department Vehicle Safe-
right) analyze an
accident. ty, the participants include employees
from the cooperation partner, Univer-
sity Hospital Regensburg. They are all
Better safe than sorry working to make mobility in general and

cars in particular safer by investigating
the circumstances of accidents.
Psychologist Karen Tschech and her
The AARU (Audi Accident Research Unit) carries out important work in the field of accident prevention. team interviewed the two people in-
Its findings help improve traffic safety. A day with the team. volved in the accident several weeks
*The scenario of this accident was changed to protect the personal rights of the people involved.

Thematic goals of Developments in road traffic Source: German Federal Statistical

prior to the meeting. Their goal support the accident investigators. Agenda 2030 Fatalities (in thousands) Office (Destatis), 2020
was to investigate the psychological During office hours, this hotline is
aspects of the accident: Was distrac- answered by the AARU team assis-
24
tion an issue? From the viewpoint of tants and, at night, by the duty of- 50 100 On rural roads
everyone involved, how did the acci- ficer from the medical team, thus 22
dent happen? Of course, to get an- the police can call 24 hours a day, Within cities/ 0.8 20
towns maximum blood alcohol limit
swers to these questions, those in- seven days a week. 18
volved must agree to the survey. This When accidents are being an-
Helmets are mandatory 16
cannot always be taken for granted, alyzed, the physicians’ input is 130
but when the people involved in the also important. Dr. Katharina An- 14
On highways Seat belts are mandatory
accident hear that their case may gerpointner works in the trauma 12
help prevent similar accidents, they surgery department at University The goal is to
10
tend to consent to these interviews. Hospital Regensburg, where she ensure that all 0.5
people of all ages maximum blood 8
treats people who are injured in alcohol limit
can live a healthy
24 hours a day, seven days a week accidents. When it comes to ac- life and to 6
When an accident occurs, things cident research, she becomes an promote their Fatalities 4
often have to happen fast. This is analyst – and she is well prepared: well-being. The
results of accident Statutory change 2
why the team receives accident re- With her team, she analyzes the
investigations at
ports via the AARU hotline from all injuries of the people involved in Audi will also help
0
police departments in Bavaria that the accidents and explains to the achieve this vision. 1960 1970 1980 1990 2000 2010
Number of people killed in road traffic accidents by Audi technicians which body parts need preliminary work from the
selected type of road use and location, 2018 of the passengers had contact with psychologists and physicians; the
the interior and what injuries were AARU also prepares the accident
1012 caused by this. This is valuable and occurrence meticulously in the run-
495
190 96 important feedback for the devel- up to the meeting. Often, a drone
Rural road opers. Have all the passive safety is used to take a lot of photos at
systems functioned as required? the site of the accident, which cre-
A resilient What could be improved? All the ates a data cloud of the location.
232 43 0 19 infrastructure findings are sent to the develop- Based on this data, the precise
Highway also includes
ment department, and ultimately analysis of the accident vehicles
transportation
180 159 250 343 that enables they make the next generation of and the police reports, it is then
environmentally Audi models even safer. possible to recreate the accident
Within friendly mobility. Physicians, psychologists and down to the smallest detail during
cities/ Source: Naturally, all
towns technicians, all gathered around the meeting.
German Federal means of trans-
Statistical Office port should enable one table. Before they can “dis- This is where Kristin Blum comes
Passenger Motorcycles Bicycles Pedestrians (Destatis), 2019 safe travel. sect” the accidents, they not only in. She works on developing
cars

Driver-related causes of accidents involving personal AARU service Crash tests with the
injury in road traffic, 2018 in percent vehicle power of water
In Norway, Audi and Volk-
Mistakes in turning left/right, swagen recently moved
making U-turns, reversing,
entering the road or starting
16.0 into a carbon-neutral data
center near Oslo, which
Failure to yield right of way 14.3 operates 100 percent
with hydroelectricity. At
Insufficient distance from others 13.9 the end of 2019, the data
center had approximately
Inappropriate speed 11.4 2,800 servers, which will
be increased to a maxi-
mum of about 5,600 in
Improper road use 6.9
For Blum, the EDR (Event Data Re- chain differs. This case shows that the long term.
Improper behavior towards corder) is a great help in simulating the work of the AARU does not end Vehicle developers use
pedestrians 4.3 accidents. This system records the with a pure analysis of the colli- its computing power of
five seconds prior to the airbag sion. “The focus is also on the res- up to 2,750 kilowatts for
Mistakes when passing 3.8 being triggered. With the accident cue measures after the actual acci- computation-intensive
analyzed here, the initial speeds dent. This is especially important projects, such as virtual
Influence of alcohol 3.6 were about 50 km/h. with high-voltage vehicles, as the wind tunnel trials and sim-
Using all the available data, Blum rescue workers should know how ulated crash tests.
Other causes 25.7 calculates that from the aspect of to handle electric vehicles so as not Annual savings? The
both cars, an emergency braking to put themselves at risk.” Audi can plant in Rjukan saves more
Source: German Federal Statistical Office (Destatis), 2019 system with cross-traffic function help here, too. than 5,800 metric tons
would very likely have prevented For more than 20 years, the of CO₂ annually compared
this accident. AARU has investigated and as- with a conventionally op-
sessed almost 1,500 accidents. erated data center.
predictive safety functions. As the accident or at least minimized Analysis of the rescue chain Thomas Schenk has been in this
an automotive engineering tech- its consequences for the pas- Another accident is being dis- business for a long time. He is a
nician, she analyzes accidents sengers? Neither vehicle had an cussed. There is a reason why this true professional when it comes
based on the technical criteria of emergency braking system with case is especially interesting for to the on-site investigation work.
existing safety systems in Audi cross-traffic function on board. the Audi technicians: An Audi A3 And one thing is very clear to him:
models as well as systems that Could such a system have prevent- Sportback e-tron* was severely The feedback from the AARU helps
are still in the development phase ed the collision? And how would damaged on impact. In regard improve general traffic safety – for
at Audi. With regard to the crash the intelligence of the function to high-voltage vehicles that are the passengers in an Audi and for
between the Audi A5 and Audi A1, have to be programmed to classi- involved in an accident, it is of par- everyone else involved. The AARU
she is looking for an answer to fy the approaching vehicle as an ticular interest whether they be- thus makes an important contribu-
the following question: Could an accident risk, warn the driver and have differently from conventional tion towards ensuring that all road
assistance system have prevented apply the brakes? vehicles and whether the rescue users get from A to B safely.
* Audi A3 Sportback e-tron: Combined fuel consumption: 2.0–1.9 l/100 km;

combined electric power consumption: 12.7–12.2 kWh/100 km; combined CO₂ emissions: 46–43 g/km.

Final check of the new Audi

e-tron* and Audi e-tron Sport-
back* in the Brussels plant.
Full of power
Audi is pursuing the full spectrum of
electric mobility. For example, the brand
offers pure electric cars and is committed
to developing the charging infrastructure.
Plug-in hybrids also contribute towards
electrifying internal combustion engines;
with mild hybrids, Audi is helping increase
efficiency. Here are the most important
key parameters and projects from the
2019 drive strategy.
Latest e-tron developments Latest hybrid developments

The Audi e-tron* and e-tron Sport- In electric mode, plug-in will be even more on elec-
back* demonstrate that Audi is hybrids are already ideal tric mode; in most cases,
winning people over with its first for local emissions-free the internal combustion
“Unleash the beauty of sustainable mobility:” To purely electric cars. In 2019, the driving over short dis- engine will be used only
achieve this goal, Audi adopts a broad-based approach. e-tron was awarded the Gold- tances, such as in the rarely to cover longer dis-
After all, one thing is certain: In the near future, there en Steering Wheel in the large city, but with efficient tances. Developments in
will be more than just one drive system. In addition to SUV (C-SUV) category. As a BEV internal combustion en- the modular strategy in
electric mobility, Audi is working on other options for (battery electric vehicle), it beat gines they also offer full the Volkswagen Group al-
potential carbon-neutral driving and is also continuing the competition with internal long-distance capability. low Audi to offer suitable
to optimize conventional drive systems to make mobili- combustion engines. This makes At Audi, the focus is on drive solutions for differ-
ty more environmentally friendly. the fully electric e-tron the new hybridizing its models ent requirements, even
benchmark in the C-SUV catego- with gasoline engine for hybrid drive systems.
By 2025, Audi plans to introduce around 30 electric ry. More e-tron models will be drive systems. In the This also applies to plug-
models, which would correspond to approximately 30 introduced during 2020 and the future, especially with in hybrids in different
to 40 percent of worldwide deliveries. following years. plug-in hybrids, the focus performance classes.
* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/km: 0
Audi e-tron Sportback: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), combined CO₂ emissions in g/km: 0

Electric Audi A4: 12-volt lithium ion battery

Mild hybrid 12-volt drivetrain
Thematic goals of
Agenda 2030
2.0 TFSI engine*
12-volt belt alternator starter
Immediate action is
required to combat
climate change. Lo-
cal commitment is
also needed.
The goal is to es-
tablish a resilient
infrastructure, to
promote inclusive
12-volt battery
and sustainable
industrialization
and to support inno-
vations.
Advances in conventional engines

By 2025, Audi plans to electrify the form of product improvements of conventional engine development powers many models from various
all core model lines. To achieve and at model changeovers. A good show that Audi is on the right track. product lines. In 2019, the Q5 was
this goal, measures and technical current example is the mild hybrid For instance, in 2019, Audi received added as a plug-in hybrid. It is also
modules that reduce the fuel con- system, which recovers energy the “International Engine of the used in mid-range g-tron models.
sumption of internal combustion during deceleration. Depending Year” award for the 2.0 TFSI in the Diesel engines will continue to
engines and lower CO₂ emissions on the vehicle type, it is possible category of engines with 150 to 250 The transformation be an important element in Audi
will be pooled in a modular e-drive to save fuel and reduce CO₂ emis- metric horsepower. According to the toward a form of drive concepts in the future. The
concept. The persons responsible sions. This is done with the inte- jury, the four-cylinder engine is “one economic system company is working on reducing
and lifestyle
for the respective product lines grated lithium ion battery, which of the most flexible and versatile emissions even further. In this
that respects the
will evaluate these technical mod- can store a significant proportion engines ever developed – in short, natural limits of context, Audi is focusing on ef-
ules and implement them where of the braking energy. The energy it’s an all-rounder.” It is used not our planet can ficiency and performance as key
appropriate. recovered is used to support the only as a pure gasoline engine, but succeed only if properties of diesel engines and
people change their
In this way, efficiency-enhancing combustion engine when operating also as a plug-in hybrid drive and for their use in the midsize to full-size
consumer habits
technologies will be integrated under unfavorable loads. operation in Audi g-tron models. and production class segment.
gradually into the model series in The successes achieved in the area At Audi, the 2.0 TFSI currently technologies.
* Audi A4 2.0 TFSI: Combined fuel consumption in l/100 km: 6.0–5.7 (NEDC); 7.4–6.5 (WLTP);
combined CO₂ emissions in g/km: 136–128 (NEDC); 168–148 g/km (WLTP)

Latest h-tron developments Electricity from the VW brand “Elli” Fuels from renewable sources
In 2019, there was less focus on other. The first testbed vehicles Electric mobility will become practical and Various manufacturers have intro-
fuel cell technology (h-tron) than from the latest h-tron generation consistently sustainable only when the elec- duced new processes to produce
on electric drive systems. Audi will enter the trial phase. tricity is also generated sustainably. In 2020, fuel from renewable sources
sees fuel cell vehicles as a special One option for the future is a an entry-level wall box should be available (bio-based or power-to-X). Audi is
form of electric drive – and from plug-in hybrid with a fuel cell, with which customers can charge their cars monitoring these developments
a technical aspect, both drive which combines low-emission 100 percent emissions-free. It will be of- very closely and investigating the
systems (e-tron and h-tron) have mobility and the ability to cover fered in cooperation with the Group’s elec- compatibility of these fuels with
parallels and complement each long distances. tricity provider Elli (Electric Life). current and future engines.
Charging infrastructure & IONITY Fleet emissions

Electric mobility will succeed only if the network According to official testing by the European
of charging terminals for electric cars is dense Commission, average CO₂ emissions from
enough. To reduce range anxiety among custom- new Audi vehicles registered in the Euro-
ers, Audi and the IONITY joint venture are build- pean Union in 2018 were 129 g/km. Based
ing an efficient fast-charging network. on provisional calculations, the average CO₂
At the end of 2019, 130 stations were oper- emissions of newly registered Audi vehicles
ating along Europe’s main transport arteries in the European Union are expected to be
and highways. The target for 2020 is to have around 131 g/km in 2019. Fleet fuel econo-
400 charging stations throughout Europe. The my in China (FBU) in 2019 was 5.9 l/100 km
system uses the open European standard Com- (2018: 7.5l/100 km).
bined Charging System (CCS). e-tron models can The successful introduction of the fully
charge at these stations with 150 kW, which gets electric Audi e-tron was not able to complete-
them ready for the next stage of a long-distance ly make up for supply and demand-related
trip in just 30 minutes. IONITY is pursuing the shifts in the model portfolio. A lower diesel
goal of using as much renewable energy as pos- mix in combination with a higher SUV share
sible and is working in a targeted fashion with resulted in increased CO2 emissions in the
local energy suppliers. The Audi e-tron Charging 2019 fiscal year.
Service enables drivers to charge their vehicles In 2020, AUDI AG is predicting significant
in different countries with just one card. The net- reductions in fleet emissions, primarily
work already encompasses 24 European coun- through the much higher availability of ful-
tries with more than 145,000 charging points. ly electric models and PHEVs, but the new
A3 is intended to contribute to C02 reduc-
tions as well.
Fast-charging station
from IONITY: Audi e-tron
Charging Service
* Audi e-tron: Combined power consumption in kWh/100

km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂
emissions in g/km: 0

Integrated and well thought out

Thinking consistently from start to finish: The life cycle assess- ronmentally friendly throughout all areas of the value chain raw materials to logistics to production, from the first to the
ment of a vehicle shows where its environmental footprint aris- and across the entire life cycle of a vehicle. last kilometer on the road, from de-registration to recycling.
es. This analysis helps Audi develop measures to move forward
quickly towards carbon-neutral mobility. Ecological tire print Cradle to grave
Audi has set itself the goal of reducing environmental impact In order to prepare a complete life cycle assessment, the life
While the general public tends to assess the sustainability across the entire life cycle. In order to evaluate this objec- of a car is divided into three phases: production, utilization
of cars on the basis of their fuel consumption, Audi consid- tively, the company prepares a life cycle assessment (LCA) at phase and recycling (see infographic). Production has three
ers much more than just the CO₂ emissions created during the production start of a new vehicle model. This assessment sub-categories for which data is recorded: raw material sourc-
driving. In order to be a role model with regard to the envi- is a standardized, systematic analysis of the environmental ing, component production and vehicle production. The uti-
ronment, the company aims to offer everyone mobility that impact of a product across its entire life cycle in accordance lization phase is divided into the provision of fuel/electricity
has as low an impact on nature as possible. This is why Audi with the international ISO 14040 ff. series of standards. The and vehicle emissions. At the end of its life, the vehicle is re-
is working towards making its products and services envi- life cycle includes all conceivable impacts, from the required cycled. For many of the raw materials used, this is the start
The life of a car

Cradle to grave: When carrying out a life cycle assessment (LCA) of a car,
the experts distinguish between three phases
Production Utilization phase Recycling
Cradle-to-gate Well-to-wheel
Fuel/ Vehicle
Raw materials Component Vehicle production electricity provision emissions
sourcing production
Gate-to-gate Well-to-tank Tank-to-wheel

Comparison Production Utilization Recycling

of carbon 50
footprints: 45
Greenhouse gas potential [t CO₂ eq.]

Although CO₂ emis- 40
sions produced during
the manufacture of an 35
Audi e-tron are twice as
high as during produc- 30
of a new product life – whether in a new vehicle or in other tion of a comparable
products (page 62). vehicle with an internal 25
combustion engine,
they are amortized af- 20
Complex and time-consuming analysis ter about half the total
But how is a life cycle assessment prepared? Modern vehicles mileage. 15
comprise 3,000 to 5,000 components – and LCA experts ana-
10
lyze each of these based on the bill of material and the mate-
rial data. This means that all the work steps required in pro- 5
duction are recorded, as are the environmental impacts. This
information is used to create a huge database that can be
accessed to prepare the life cycle assessment. A look at this 0 km 100,000 Km 200,000 Km
database shows just how complex the analysis can be, even
of simple components: For example, with tires, the electricity Legend
consumption used in their manufacture is also recorded – Audi e-tron 55 quattro* Audi e-tron 55 quattro* Audi Q5 2.0 TFSI* Audi Q7 3.0 TDI*
thus the electricity mix at the tire production location makes efficiency 265 kW (MY2019) efficiency 265kW quattro S tronic quattro tiptronic 200
a big difference. Electricity from renewable (MY2019) 185kW (MJ 2017)** kW (MY2016)
sources EU electricity mix (NEDC)
The result of all the calculations, with approximately
40,000 process steps, is the LCA model, which allows vehi-
cles to be compared with each other and also answers the
question: Does the new model have a lower environmental
impact than its predecessor?
Fast identification of optimization requirements battery production. Audi is also very much involved in the Market leadership in sustainable mobility
An LCA quickly indicates optimization potential not just for complex area of recycling instead of leaving it to external The effectiveness of all the actions taken to reduce CO₂ is
vehicles with conventional drive systems but also for electric companies. In the spirit of the life cycle principle, the life of reflected in the life cycle assessment of a vehicle, but not
cars. Once Audi knows where the hot spots are – these are the vehicle components continues after the vehicle’s utilization just there: It is also included in the DCI – which stands
components or processes that experts know have a particu- phase. Every Audi contains valuable raw materials, which, for decarbonization index. This index is very important
larly high impact on the environment – it is easier to set pri- with smart processing concepts, can be reused. The goal is to throughout the Group, since it is a key performance indi-
orities. For instance, one result of the life cycle assessments create a circular economy. For this to succeed, the recycling cator for the “Together 2025” strategy – the vision of the
is the knowledge that the production-related environmental phase must be taken into account as early as the develop- Volkswagen Group to become the world’s leading provider
impact is reduced if green electricity is used consistently in ment of a new vehicle. of sustainable mobility (page 15).
* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/ ** In an earlier version of this article, the model name Audi Q5 2.0 TFSI* quattro tiptronic 169 kW
km: 0. Audi Q5 2.0 TFSI (model year 2017 // NEDC) and Audi Q7 3.0 TDI (model year 2016 // NEDC): Vehicles are no longer offered (MJ 2016) was listed. In fact, it is the Audi Q5 2.0 TFSI quattro S tronic 185kW model (MY 2017).
for sale. Fuel/electric power consumption and CO₂ emission figures for current models can be found on page 110 This was corrected in June 2020.

Volkswagen Group: DCI targets
On the road to carbon-

neutral mobility, the
decarbonization index (DCI)
t CO₂ equivalents
serves as a helpful resource

per vehicle
for all of the Volkswagen

Group brands. It measures the
effectiveness of all measures
carried out by the Volkswagen
Group to reduce CO2 emis-
sions. Measured against 2015,
the DCI is expected to fall by
30 percent Group-wide by
2015 2025 2050 2025.* The Volkswagen Group
Net zero aims to achieve net zero car-
carbon emissions bon emissions by 2050.
The great challenge of decarbonization

Those wishing to travel in a more environmentally equivalents). The long-term goal is to create a carbon- This is the Group’s key performance indicator and is used
friendly manner need more than just a car with low neutral world, which Audi also intends to help bring about. to summarize and evaluate all measures aimed at reducing
fuel consumption, since sustainable mobility is highly After all, the Group is committed to the goals of the Paris CO2 throughout the entire life cycle. The DCI factors in the
complex and encompasses far more than just that par- Climate Agreement and is making a contribution to limiting entire value chain – from the extraction of raw materials
ticular aspect. This is why the key word in the sustain- global warming to less than two degrees Celsius. Audi is (manufacturing, supply chain) and production (manufac-
ability strategy is “decarbonization.” pursuing the long-term vision of being a provider of carbon- turing, Volkswagen Group) to the provision of fuel and elec-
neutral premium mobility and aims to achieve net zero tricity and vehicle emissions (utilization phase) to recycling.
The term literally means the reduction of carbon, or more carbon emissions throughout the company by 2050.
precisely, refers to the practice of shifting to an economic
system that sustainably reduces climate-impacting emis- The Group has developed a tool to measure its progress * Compared with the reference year 2015
sions (measured in carbon dioxide equivalents, or CO₂ throughout this process – the decarbonization index (DCI). and over the entire product lifecycle

Audi on the web – up close and personal
All for one and one for all No time to visit an

Audi location? Not a
take them on a virtual
journey through select-
problem! Customers ed production locations
who want to see what’s and experience the
It is the future software powerhouse within the Volk- The organization develops cross-brand software in five do- happening at the Four plants live. From parts
swagen Group: The Car.Software organization. From mains: Connected Car & Device Platform, Intelligent Body Rings production plants production to quality
2020, the new independent business unit brings to- & Cockpit, Automated Driving, Vehicle Motion & Energy and and interactively expe- tests, AudiStream gives
gether all the participations and subsidiaries in the Digital Business & Mobility Services. The goal is to establish rience the location and visitors exclusive in-
Group that develop software for use in the vehicle and a standardized software architecture across the Group and highlights live and on- sights into the produc-
for the digital ecosystems. bring together hitherto parallel development pathways of line from the comfort tion process.
the brands. There are clear advantages for Audi: This will of their home have the But there’s more:
This is aimed at benefiting customers in particular – because create synergies and generate economies of scale, and opportunity to do just With AudiStream, de-
Audi will have more resources to focus on customer-facing therefore cut the software costs per vehicle for all brands. that – thanks to the partments such as Audi
functions. In the first phase, around 3,000 digital experts Furthermore, the pooled competencies also make the en- AudiStream service Design provide fasci-
from the participations and subsidiaries will work together. tire Group more forward-looking and competitive. In other that was launched in nating glimpses of their
words: Well equipped for digitalization and the technolo- 2019. work and explain to
The Car.Software organization will be rooted in Audi Electron- gies of the future. visitors: “What makes
ics Venture GmbH; additional German sites include Berlin, Livestream an Audi an Audi?“
Bochum, the Ingolstadt and Stuttgart regions, and Wolfs- With the online service,
burg. The software organization’s international locations of visitors can have guides www.audi.stream
include Seattle (United States) and Beijing (China).
Competencies to be pooled
Over the past years, there has been an enormous increase in
the proportion of software in cars. This area now constitutes
a large part of the added value and has significant effects on
vehicle performance. In addition, expenditure for software Audi connect – new functions in 2019
development is rising constantly. Two-thirds of the costs are
used for developing “basic functions” that are required by The many new and extended Audi connect function Markets
all the brands. On the other hand, brand-defining “functions connect functions introduced for
that customers experience directly” account for just one- connected vehicles illustrate the Audi connect remote & control / Other countries within ECE**
Emergency call & service* Internationalization: USA, CAN,
third of the costs. This is why the platform and module con- innovative strength of AUDI AG MEX, JP, KOR, SGP, MYS, TWN,
cept is to be fine-tuned – in the future, there will be one stan- in the year under review of 2019. HKG, AUS, NZL
dard software platform that will be used for all brands and in Internationalization is quickly be-
Digital assistant* (Amazon Alexa) ECE**
all markets. The Volkswagen Group aims to increase its share coming evident here.
of in-house software development for the use in vehicles Traffic light information online in selected cities ECE**, USA, CAN
from less than 10 percent today to more than 60 percent by * Rollout for existing vehicles. Online navigation map update CHN
2025. The Car.Software organization will play a key role here. ** ECE: in selected regions within Europe

Are you ready Willingness (as a percentage)

to pay more for self-driving cars
to let go?
28 64 32 30 28 27 24 18 17 14
y
an
ce
ng ed
m
a
re h
rd s-
n
in
rm
in
do
an
Ko out
pa
Ki nit
A
bo ros
er
al
a
Ch
US
Ge
Sp
Fr
It
Ja
U
S
C
Interest in autonomous driving
98 (as a percentage) by country
94
88
84
82
77 75 75 74 72 Audi is a driving force in the field to insiders. The study, called “The that intends to be proactive and
of driver assistance systems – but Pulse of Autonomous Driving,” informed in contributing to a bet-
what do most people think about also defined five profiles of differ- ter world,” says Floridi.
technological leaps in automated ent users (see next page) of auton- After all, autonomous driving is
driving? A study from Audi pro- omous driving. the subject of many highly charged
vides clarity. “The study is more than just a debates. Getting into a car that
welcome addition to our knowl- takes passengers to their destina-
Are you worried when the pilot edge of the autonomous driving tion on its own? Some people are
switches on the autopilot in a phenomenon,” says Dr. Luciano frightened of this idea, while to
plane? In the distant future, a Floridi, Professor of Philosophy others it sounds like the ultimate
feature that is well established in and Ethics of Information and vision of free mobility. But one
aviation and rail traffic will also be Director of the Digital Ethics Lab thing is certain: Audi has been
common in cars: conditional au- at the University of Oxford. Flo- working on autonomous vehicle
tomation. But are people ready to ridi is a member of the scientific technology for many years.
let go of the steering wheel? network of the “&Audi” initiative, The Audi AI:ME and Audi AI:CON
In a large-scale online study, which provided the framework for illustrate impressively how this
Audi investigated the readiness carrying out the study. “The study could work and what it could look
of 21,000 people from nine coun- is a necessary step for any poli- like in the future. They belong to the
tries on three continents. Many of cy and law-making decision and family of concept cars that began
Länder-Cross-
border
China
Korea
Italy
Spain
Germany
United
Kingdom
France
übergreifend
Südkorea
Italien
Spanien
Deutschland
Frankreich
Japan
USA
Vereinigtes
Königreich
the results were surprising, even every R&D and business strategy in 2017. Each of the visionary
South

Survey “The Pulse of Autonomous Driving”: What are the user types for self-driving cars?
Suspicious drivers prefer to Safety-oriented Open-minded co-pilots have

take the wheel themselves reluctants tend to be re- a positive attitude to autono-
vehicles is designed specifically cent of those surveyed do not trust and would like to keep the served about autonomous mous driving, but still always
for its clearly defined area of use: the technology and around a third status quo. They would driving. In general, they at- want the option of interven-
The Audi AI:CON combines exclu- are afraid (38 percent). However, not consider autonomous tach little importance to cars. ing. They see the advantages
sive comfort with sophisticated the respondents appear to have lit- driving until it is fully es- Safety is the key point for of the technology and want
technical features for its occupants tle knowledge about autonomous tablished. As fans of safety, them, and they are less likely initiatives from business,
during a long journey. The Audi driving: Only 8 percent feel able to they are fundamentally to look for adventure. They science, and politics to make
AI:ME is an autonomous, fully net- explain the subject. critical of the unknown – believe that self-driving cars sure that cars are launched on
worked “well-being” lounge for the Another interesting fact is the including new technologies. should be tested for years be- the road safely. They also ex-
mega cities of the future. differences between the countries fore being approved. pect the technology to result
that were investigated, which the in greater safety.
A great deal of curiosity – little survey renders comparable with
knowledge the Human Readiness Index (HRI). HRI -8.4 14 percent of all HRI -2.8 24 percent of all HRI +1.3 30 percent of all
respondents respondents respondents
The survey “The Pulse of Auton- The HRI combines knowledge,
omous Driving” discovered that, interest, emotions and a willing-
while there is great anticipation ness to use autonomous driving to
with regard to self-driving cars, produce a numerical indicator on a
many people also have concerns. scale from –10 to +10, and shows
On the one hand, in various coun- us how attitudes to autonomous Status-oriented Tech-savvy passengers
tries there is a lot of interest (82 driving are linked to sociodemo- trendsetters can demon- would ideally like to get in
percent) and a high degree of graphics. The results show that the strate their progressive life a self-driving car today, are
curiosity (62 percent) regarding younger respondents are and the styles with a self-driving not afraid and trust tech-
autonomous driving. Those who higher their levels of education and car – and they find this ex- nology. They hope for easier
were surveyed see potential for income, the more they are positive- citing. In search of excite- access to mobility, greater
individuals and society in the new ly disposed toward autonomous ment and adventure, they comfort and, above all,
technology – from easier access to driving. With an HRI of +5.1 the love new technologies. more safety on the road.
mobility (76 percent) to greater Chinese lead the ranking, while They are convinced: Auton-
comfort (72 percent) to increased drivers in Germany and France are omous driving technology HRI +8.4 16 percent of all
respondents
safety (59 percent). More than more reserved, with an HRI of -0.7. will prevail if reputable
half of the respondents would like manufacturers develop it.
to try autonomous driving. But on
the other hand, many people are HRI +3.3 16 percent of all
respondents
clearly concerned, mainly about
More information about the survey
loss of control (70 percent) and
“The Pulse of Autonomous Driving”
technically unavoidable residual can be found at www.audi.com/
risks (66 percent). Forty-one per- pulse-of-autonomous-driving

Imagine all Driving through the city on a green wave? Audi is

working with cities around the globe to make this
vision a reality – for example, with the Audi traffic
few months, 94 of the 160 traffic lights in the Ingolstadt
city area habe already been integrated into the V2I service.
The remaining intersections will be included by 2022 so
the lights are light information service. This vehicle-to-infrastruc-

ture (V2I) service increases efficiency, convenience,
and safety in traffic.
that, thanks to the service, drivers should be able to cruise
through Ingolstadt on a green wave and, ideally, reach their
destinations without having to stop at all.
green! Review, July 2019: In the German city of Ingolstadt, Audi is

working with the office for traffic management and geo-
Audi traffic light information includes two main functions:
Green Light Optimized Speed Advisory (GLOSA) and Time-
information to optimize traffic flows with the aid of digital to-Green. GLOSA calculates the optimum speed for a green
tools. How? By having traffic lights and vehicles commu- wave. Should a stop at a red light be unavoidable, the second
nicate directly with each other. To do this, Audi networks function, Time-to-Green, displays a countdown with the
many of its vehicles with the infrastructure. After just a seconds remaining until the next green phase begins.

In the cockpit,
drivers see not nience for drivers, increase traffic safety, and encourage a
only the current foresighted, economical style of driving,” says Andre Hainzl-
speed limit but maier, who heads development for Apps, Connected Services
also how fast
they must drive and Smart City.
to reach the
green light. But that’s not all: In return, Audi provides the traffic man-
agement system with anonymized data. Traffic planners see,
for example, whether vehicles have to stop frequently at
certain intersections or average waiting times are compar-
atively long. As a result, traffic lights can be switched more
efficiently and traffic flows better. “Ingolstadt is the first city
in Europe in which we are connecting our series-production
models with traffic lights. This shows how rigorously the city
is investing in a digital traffic infrastructure and how import-
ant a close partnership is. The service will help improve traf-
fic flows so that everyone in Ingolstadt benefits,” says Achim
Heinfling, a plant manager at Audi in Ingolstadt.
In the long term, traffic in all cities worldwide will benefit

from this. For instance, in the future, traffic light infor-
mation could be linked with smart navigation, and “green
waves” could be incorporated into optimum route guid-
ance. It is also conceivable that Audi e-tron models will
increasingly use braking energy to charge the battery as
they slow down when approaching a red traffic light. And,
Audi plans to integrate more European cities into the real-time data from traffic management systems, a combina- of course, it would be practical if connected traffic lights
smart services in 2020. This is already happening in the US, tion of motion sensor cameras, induction loops in the road, could respond situationally to current traffic density. In
where V2I was launched in Las Vegas in 2016. The service bus and streetcar messages and pedestrian crossings; and the not too distant future, young drivers could be asking,
is now available at more than 10,000 intersections in North historical data. The forecasting algorithm continuously im- “What was stop-and-go again?”
America, with around 2,000 of those in Manhattan in New proves and learns, for example, how vehicle density changes
York City and more than 1,600 around the US capital, in the morning during commuter traffic and in the afternoon
Washington, D.C. Audi is also the first car manufacturer when kindergartens and schools close.
worldwide to connect its series-production models with Requirements for Audi traffic light information‘
traffic lights in cities. Drivers see the information in the Audi virtual cockpit or on Models: Audi e-tron, A4, A5, A6, A7, A8, Q3, Q7, and Q8
the heads-up display and know when the next traffic light manufactured from the middle of 2019 (“2020 model”).
This is how it works: Audi and its project partner Traffic Tech- will change to green. This allows them to slow down in good
nology Services (TTS) have developed a complex analysis time – which has a positive effect on fuel consumption, CO₂ Equipment package: “Audi connect Navigation & Info-
algorithm that uses three sources to calculate accurate fore- emissions and, last but not least, drivers’ stress levels. “With tainment” and “camera-based traffic sign recognition”
casts: The respective control program of the traffic lights; Audi traffic light information, we want to improve conve-

Products and Services (Table 1 of 4)

The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four
core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” and “Employees and Society.”
Goal Measure Date Comparison of SDGs
Reduce CO₂ emissions from the Audi EU new car fleet by 27 Reduce consumption by using new technologies 2020
percent (base year 2012) from the modular efficiency platform
Reduce environmental impact across the entire life cycle Prepare product-based life cycle assessments for new Continuous
compared with the predecessor model vehicle models; validate and certify life cycle assessments; development
publish the data
Significantly reduce fuel consumption for every new vehicle Switch 70 percent of new vehicles sold with combustion 2022
compared with the predecessor model engines to mild hybridization or plug-in hybridization [8]
Expand the range of electric drive concepts Expand the range of plug-in hybrids 2020
to seven Audi models
Availability of at least one plug-in hybrid in every core 2023

segment from compact class or higher (Audi A3) [9]
Forty percent of new Audi vehicles feature an electric drive 2025

(availability of at least one battery electric vehicle for each
core segment)
Extension of the product portfolio to a total of five electric cars 2020


Ensure availability of charging systems for private charging Provide competitive charging lineup for electrified Audi models 2020 [10]
to coincide with the market introduction of the first fully for domestic charging, including:
electric series-production model from Audi – Charging equipment
– Smart charging functions, e.g., photovoltaic-optimized charging
– Joint projects on home energy management systems (HEMS)
– Innovative technologies
Further development of the charging lineup for electrified Audi 2020

models in relation to the smart integration of electric vehicles
into power grids to promote the compatibility between electric
vehicles and the grid, including piloting of services to network the
vehicle with the power grids
Ensure the availability of fast-charging infrastructure along Infrastructure expansion in cooperation with partners, e.g. 2022
the long-distance transport axes in Europe and the USA to IONITY joint venture in Europe and Electrify America in the US,
promote long-distance capability of electric vehicles as an incentive for electric vehicles
Extend the charging infrastructure at the Audi sites Set up and operate cross-site charging infrastructure at Audi sites 2022 [12]
for the start of production (SOP) of the Audi e-tron; additional
needs-based expansion for processes in the plant as well as
providing 10% electrified parking lots for company cars and em-
ployee leasing vehicles by the middle of 2022 [11]
Conserve resources through new recycling concepts for Development of a recycling process for traction-battery cells 2019
closing material cycles (completed)

Global protection and responsible handling of personal data Fine-tune the organizational processes to validate privacy Continuous
by design, privacy by default development
Expand the range to include fuel cell drive concepts under Continue to develop fuel cell technology, introduce 2022
the Audi h-tron umbrella brand a small series with fuel cells to the market [13]
Roll out fuel cell technology across the Group brands 2026 [14]
Provide carbon-neutral energy sources from renewable Promote the development of synthetic liquid fuels together Continuous
energy to reduce greenhouse gas emissions with suitable partners. Additional focus on the technology development
readiness of products within AUDI AG [17]
Market introduction of Audi e-fuels and Audi e-power 2019 [15]

in addition to Audi e-gas
Extend strategic partnerships and cooperation agreements Continuous

regarding research and development of renewable energies development
Integrate a CO₂ capturing plant (capturing CO₂ from the 2021 [16]
air) in a power-to-gas or power-to-liquid plant

Responsibility for the safety of customers and Portfolio of predictive assistance and safety systems Continuous
other road users development
Enhance road safety Further development of technologies toward 2025

assisted/automated driving
Develop an attractive mobility portfolio Develop new business models 2022


Is “clean” industry
even possible?

Audi
closes
circles
Reduce, reuse, recycle, rethink: Not just a single closed
Audi is pursuing the vision of a circle, but several along
the entire automotive
holistic circular economy. Can value chain: Experts at
Audi identify and ana-
that succeed? In 2019, Audi re- lyze the potential and
searched a number of promising challenges of the circular
economy
approaches – and came to the
conclusion that it is heading in
the right direction.
Image based on: German Council for Sustainable Development

(RNE) in collaboration with Accenture Strategy, 2017, page 16.

Thematic goals of
Agenda 2030
W
hen Dennis Christian the world’s population consuming terial procurement to production
Meinen talks about renewable resources faster than and marketing of products, use
his work, those lis- they can be regenerated and repro- and reuse,” says Meinen. “We pri-
tening quickly get duced by the earth and its ecosys- marily devoted ourselves in 2019
the feeling that he is trying to tems each year. to analyzing the topic of CE in its
“square the circle.” “One of the key entirety and preparing the next The transition to-
challenges of this century involves Closing the cycles steps.” Can the effort pay off? This ward an economic
and social lifestyle
decoupling economic growth from The problem is that an economic too is a frequently debated topic that respects the
excessive consumption of resourc- system based on growth and con- among economic experts. Numer- natural limits of our
es – while increasing average quali- tinuous and even rising extraction ous discussions highlight the planet can only suc-
ty of life and reducing emissions at of primary raw materials cannot be enormous economic potential of ceed if we change
our consumer habits
the same time.” And before anyone sustained on a planet with finite circularity. According to the Ellen and production
can ask, the circular economy (CE) resources. From Audi’s perspective, MacArthur Foundation, net savings technologies.
Linear economy
expert adds with a smile: “Yes, the circles need to be closed if a solu- of more than 600 billion US dol-
question of how to achieve a circu- tion is to be found that does not lars are predicted in the European The present business model
lar economy is occupying economic substantially reduce our standard Economic Area (EEA) through mea- of car manufacturers – and
experts all over the world. And it of living and enables continued sures such as ecological product likewise of companies in
has cost me a few sleepless nights economic growth and improved design, waste avoidance or reuse – other sectors – is based
too. But it’s worth it – because at social conditions in developing while reducing greenhouse gas fundamentally in terms of
Audi we want to find sustainable countries. In this respect, the par- emissions at the same time. This added value and scope of
business models that can be imple- adigm shift away from the linear will only be possible, however, if action on the principle of
mented to the ultimate benefit of economic system offers potential all the measures are also actually a linear economic model.
Measures to combat
all stakeholders.” from both an economic and an eco- implemented. Vehicles are developed and
climate change
Help in the form of good, new logical and social perspective. must be taken im- produced, delivered to the
ideas is vital, since the facts have “Audi’s sustainability strategy Focus on recycling rates mediately. This also customer, and disposed of
long since shown that something evaluates and follows diverse ap- There are clear laws on the socially requires contractual at the end of life. Separate
compliance, interna-
is out of balance. The consumption proaches for implementing a circu- important topic of recycling. The industries have generally
tional cooperation,
and behavior patterns that have lar system in the automotive value German End-of-Life Vehicle Or- and local commit- built up in the past around
prevailed since 1971 have led to chain: from development and ma- dinance, for example, requires ment. recycling and disposal.

New power from old cells Volume of raw materials processed by Audi in since 2015 that, of the average Holistic business models
Battery recycling is a fundamen- vehicles in 2019: 2,855,162 t net weight of an end-of-life vehi- In the year under review, Audi an-
tal part of sustainable electric cle (ELV), at least 95 percent be alyzed all conceivable CE business
mobility for Audi. In the year subject to reuse or recovery rela- models throughout the entire life
0.9% <0.1%
under review, Audi successfully tive to the total number of ELVs cycle of the vehicle from social,
Electronics Special metals
pursued a strategic research 1.3% in a given year. ecological, and economic perspec-
partnership for battery recycling. Process polymers In essence then, no part of an tives in order to gain an under-
The result: Over 90 percent of ELV is useless. As environmental standing of the full potential of CE.
the cobalt and nickel from the awareness increases among many Based on the findings, scenarios
2.6%
high-voltage batteries of the Non-ferrous metals
consumers – partly due to the rise are currently being discussed, for
Audi e-tron can be recovered. in public debate on the subject of example, for how the classic busi-
The company is therefore now 3.2% sustainability – the issues of recy- ness model within the meaning of
starting another phase and is Other cling and reuse have also increased the CE can soon be extended – to
testing a closed loop for cobalt in importance. Audi already has the benefit of all stakeholders.
and nickel: Together with a part- 4.7% a number of successful projects According to Meinen, “Direct,
ner, Audi is working toward using Operating fluids and under its belt in these areas, for end-to-end product responsibility
the raw materials recovered from ancillary materials example the Aluminum Closed throughout the entire product
battery recycling in new battery Loop in production (page 65) or life cycle is a basic condition for
cells. Audi and Volkswagen are 15.3% the industrial reconditioning of exploiting all the potential in the
developing a variety of other Light alloys used components to genuine-part spirit of sustainability.” In addition,
concepts for handling used quality. ensuring the environmental com-
high-voltage batteries. When Moreover, Audi is an active mem- patibility of the products can also
a battery has lost some of its ber of the Global Battery Alliance, enhance the positive image of the
charging capacity after years of which aims to establish a sustain- company. “What’s also great about
use in a vehicle, it can continue able value chain for batteries, from the CE in my view is that it drives
to be used outside of a vehicle, resource mining through to sus- innovation and has the potential to
for example. Among the many tainable recycling. encourage further initiatives.”
potential applications examined
by Audi in this regard, in the
year under review the company 18.6% 53.3%
investigated using such batter- Polymers and elastomers Steel and ferrous materials
ies in forklift trucks and tractor
units at the main plant in In-
golstadt as well as in stationary
energy storage devices at the Percentage of raw materials processed by Audi in
EUREF campus in Berlin. vehicles; presentation based on own analyses

Stronger together
As a large industrial corporation, Audi is mindful of its responsibility toward so-
ciety and the environment – and uses its impact to meet this responsibility along
the entire value chain. Safeguarding sustainability standards in the supply chain
is just one example of this.
What does consistently sustainable decision-making autonomy and in- cle’s life cycle, Procurement relies
mean in terms of sustainability terests. Furthermore, Audi only has on the Audi CO₂ program among
standards in the supply chain? “We business relationships with direct others. A recent challenge: The
take responsibility for the footprint suppliers, meaning that its direct rigorous electrification of the ve-
we leave in and with our supply influence is generally restricted hicle fleet has caused an increased
chain. Our goal is for the company to this first tier. However, a large percentage of the CO₂ emissions
to avoid a negative impact and to proportion of emissions are not created during the life cycle of the
create a positive one wherever pos- primarily produced by the direct car to arise in the supply chain and
sible,” explains Marco Philippi, Head suppliers, but rather deeper in the during production. “We estimate
of Strategy | Procurement at the supply chain depending on the ma- that, due to electrification, this will
Four Rings. “Audi is therefore work- terial and energy intensity of the account for almost one quarter of
ing toward improving the carbon processing stage. all CO₂ emissions by 2025,” says
footprint of its vehicles even before Philippi.
they travel the first few kilometers Pulling together
on the road.” “Procurement is active in 152 Great savings potential
countries around the globe. We are Lightweight construction with
Reducing CO₂ emissions the central interface between AUDI aluminum has been one of Audi’s
Reducing CO₂ emissions in the sup- AG and more than 16,000 suppli- greatest strengths for decades.
ply chain is one of the action areas ers,” says Marco Philippi. “Both The company has special expertise
set out in the corporate strategy individually and in cooperation in handling this material, which
and represents a challenging task: with our partners, Procurement can be seen in both the vehicle
The supply chain is globally distrib- therefore has enormous influence, itself and in the production of
uted, subject to constant change which we want to use in a positive components. Due consideration is
and highly complex due to the wide way.” Of global CO₂ emissions given to the topic of sustainability
array of process steps and mate- caused by humans, the Volkswagen throughout the different process
rials. In addition, it is often not Group is accountable for 1 percent steps. In the 2019 year under re-
possible to exert influence quickly, through its passenger cars portfo- view, the Audi CO₂ program in the
since suppliers ultimately are inde- lio. To effectively reduce emissions supply chain focused on the use
Audi is playing its part in conserving resources with the Aluminum Closed Loop process pendent companies with their own in the production phase of a vehi- of steel and aluminum, since

Involvement of suppliers
these materials are especially Closed Loop contributes signifi-
energy-intensive to manufacture. cantly toward using resources The Group extends the respon-
During more than 30 workshops sparingly – and it proves just how sibility for the environmental
conducted with suppliers, over 50 well the circular economy can work. effects of its vehicles to its
Thematic goals of
measures were developed, which In the 2019 year under review, this Agenda 2030 suppliers throughout the value
together identify a savings poten- way alone enabled Audi to save chain. The Volkswagen Group
tial of 1.2 metric tons of CO₂ per 150,000 metric tons of CO₂ on bal- has therefore been actively
vehicle. Total savings of 300,000 ance. The Ingolstadt plant joined involved in the Carbon Dis-
metric tons of CO₂ on balance were the Aluminum Closed Loop process closure Project (CDP) Supply
achieved in the 2019 year under in January 2020, and Győr is set to Chain Program (SCP) since
review, thanks to the actions taken follow in 2021. 2015 and also received a score
by Audi in the supply chain. of A- again for the reporting
Cooperation in initiatives year there. This corresponds to
At its Neckarsulm site, Audi The work in the deeper tiers of leadership status. In 2019, the
demonstrates just how effective the supply chain and beyond con- The goal is to ensure Against the back- Measures must be Group significantly expand-
that all people of drop of growing taken immediately
close collaboration can be when it tractual relations requires further all ages can live a social and economic to combat climate ed the number of suppliers
comes to enhancing sustainability involvement from Audi. The com- healthy life and to inequality, the pro- change and its surveyed as part of the SCP
in the supply chain. “To use even pany also achieves this through its promote their motion of equal op- impact. Effective cli- regarding responsibility for
less primary aluminum in manufac- cooperation in different initiatives. well-being. portunities helps to mate protection can climate and water to more
achieve sustainable only succeed if there
turing in future, Audi launched the In terms of aluminum, for exam- economic growth is an appropriately than 280 suppliers. That is
Aluminum Closed Loop three years ple, Audi has become a member of and strengthens high level of com- equivalent to more than 79
ago. This ensures that high-grade the Aluminum Stewardship Initia- social cohesion. mitment. percent of production-related
aluminum scrap is not sold for prof- tive (ASI). The ASI has developed a procurement spending (exclud-
it on the scrap metal market, but global standard for the handling of ing services, VW Brazil, Scania
is fed back into the material loop. aluminum, which lays down envi- and joint ventures in China).
The recycling rate is almost 100 ronment-related and social criteria According to suppliers’ self-
percent,” explains Johanna Klewitz, along the value chain. In 2018, assessments, they reduced
Team Leader Sustainability in the Audi became the first car manufac- their overall emissions by a to-
Supply Chain at Audi. “Compared turer to receive the Performance tal of 8.05 million tons of CO₂
with primary aluminum, up to 95 Standard certificate from the ASI compared with the previous
percent less energy is consumed for its responsible use of aluminum year. The suppliers put the pro-
during production.” So, how does for the battery housing on the Sustainable eco- The transformation The core principle portion of renewable electrical
nomic development toward a form of of Agenda 2030 is
this work? Excess aluminum offcuts Audi e-tron.* energy at 23 percent. Since
reconciles social, economic activity and that “nobody must
from the press shop in Neckarsulm environmental and lifestyle that respects be left behind.” 2016, the CDP has included
are returned directly to the sup- economic goals and the natural limits of Governments, civil science-based targets (SBTs) in
plier. The supplier can recycle the For more information about creates dignified our planet can only society and com- the questionnaire: 34 percent
sustainability in the supply chain and work for everyone. succeed if we change panies must work
scrap and use it to produce new of suppliers that responded
supplier management throughout our consumer habits together to imple-
material that Audi then uses again the Group as a whole, refer to the and production tech- ment the sustain- have set themselves SBTs or
in the press shop. The Aluminum Volkswagen Sustainability Report nologies. ability agenda. intend to do so.
* Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4

(WLTP) combined CO₂ emissions in g/km: 0

Audi suppliers are committed to sustainability Ad hoc process

Sustainability plays a major role throughout all Volkswagen Group with information in this way. the option of undergoing a repeat evaluation fol- A further aspect of sustainable supply
of the divisions at Audi. To ensure that everyone When necessary, the Group also conducts an lowing completion of improvement measures. chain management is the managed han-
takes this responsibility seriously, Audi partners additional compliance check. If the SAQ is not The S-Rating helps Audi to meet its responsi- dling of ad hoc disclosures. These are
are now also being brought on board. This is satisfactory, an independent sustainability asses- bility toward the environment and society more suspected breaches of the sustainability
where the sustainability rating (S-Rating) and its sor visits the company to carry out an inspection effectively. For some time now, the brand with requirements that occur suddenly. The
specific actions come into play. relating to areas such as economical use of re- the Four Rings has been preparing its business process of ad hoc case management was
sources in production and industrial safety. Such partners and workforce for the rating with infor- revised further and systematized in the
Greater sustainability and responsibility an assessor was deployed on behalf of the VW mation and in events and workshops. A total of year under review.
“Our goal is to pursue a path toward greater sus- Group 1,331 times in 2019. Follow-up checks are 99.9 percent of all Audi procurers completed the The breaches that lead to opening an ad-
tainability and responsibility together with our subsequently performed to ascertain whether web-based training on the topic of “S-Rating” in hoc case can, for example, be uncovered
suppliers in a spirit of partnership,” says Johanna the deficiencies identified by the sustainability the year under review. through information from third parties
Klewitz, Team Leader Sustainability in the Supply assessor are actually being rectified. At the end The sustainability self-assessment calls for or employees in the supplier businesses.
Chain at Audi. “That is why Audi introduced its of an S-Rating process, a supplier is assigned a guidelines and management systems, for example, In such a case, the relevant ad hoc expert
sustainability rating in 2017. This sustainability status of either “can be awarded a contract” or which govern the corporate practices of our busi- team of the relevant brand or region coor-
rating, also known as the S-Rating, has been “cannot be awarded a contract.” There are no ness partners. To ensure that this does not cause dinates the implementation of a catalog of
mandatory throughout the Volkswagen Group gray areas. In other words, price is not the only any bureaucratic obstacles, Audi began in the year measures with the support of the Group
since July 1, 2019. The sustainability rating is decisive factor in awarding contracts. under review to offer “Sustainability Talks” for ad hoc expert team, once a plausibility
a mandatory criterion for awarding contracts Audi sets high standards for issues such as cor- companies employing between 50 and a maximum check has been performed by the Group.
to suppliers of production materials as well as porate ethics, sustainability and environmental of up to 500 people. These involved workshops in If Audi determines that suppliers or
for relevant suppliers in general procurement. protection. Audi also expects this from its suppli- which external specialists demonstrated best prac- sub-suppliers are failing to meet sustain-
Within the contract awarding process, the sus- ers. If they are to work together as partners, the tice approaches, which help participants to draw ability requirements in such a case, the
tainability rating is on a par with other import- two sides need to share the same values and am- up neat and effective sustainability guidelines. Fif- company asks suppliers to provide a written
ant criteria such as cost, quality, technological bitions. Integrity and social aspects, such as cor- ty-five percent of the suppliers who received train- statement based on a standardized report.
expertise and logistics. Johanna Klewitz: “We ruption prevention and a safe and healthy working were able to improve their S-Rating following In the Volkswagen Group during the re-
are convinced that our suppliers play a key role ing environment, are just a couple of examples. participation in the “Sustainability Talks.” porting period, Group Internal Audit agreed
in the success of the company in the matter of The topic of preventing and disposing of waste on measures with suppliers in addition to
sustainability. For this reason, we only want to properly is also addressed. Companies need to Impact through coverage and relevance 27 ad hoc cases that were processed by
collaborate with partners that share our values. draw up official guidelines in this respect, anchor Audi is currently collaborating with OEMs (origi- Procurement. This concerned suppliers
Together with our direct business partners, we them in their corporate conduct and communi- nal equipment manufacturers) and suppliers on a where behavior contravening the rules or
require that these values are embodied in the cate them to their employees so that they are common standard for on-site checks, which aims contracts was identified as a result of infor-
deeper tiers of the supply chain, too.” put into practice every day. to avoid duplication and achieve broader coverage mation provided or audits carried out. The
of the supply chain. This work is being under- collaboration was ended or suppliers were
The sustainability rating and its impact Working together and not against each other taken as part of a working group of the German blocked for new awards of contracts in the
A self-assessment questionnaire (SAQ) standard- The main objective of the S-Rating is not to ex- Association of the Automotive Industry or VDA case of a total of 17 suppliers due to the ac-
ized for the automotive industry gives Audi infor- clude suppliers, but more so to enable suppliers (Verband der Automobilindustrie e. V.). The plan tivities of Procurement and Internal Audit.
mation about sustainable operations with regard to improve their performance if it is not satis- is that, from 2020 onward, suppliers will only
to social and environmental aspects and corpo- factory. This is the only way in which positive have to be audited once; the results can then be
For further information on dealing with
rate ethics at the respective suppliers. In 2019, impacts on people and the environment can be shared with all participating business partners via ad hoc cases and other key figures on the topic,
a total of 12,646 suppliers already provided the achieved. With this in mind, every supplier has a central platform. refer to the Volkswagen Sustainability Report

We see it as our duty

Using new technologies to
Audi not only lives up to its responsibility chain together with other partners. In Responsible sourcing of raw materials
improve the sustainability
in its relationship with its direct busi- line with the requirements of a risk-based The most relevant hot spot at present of supply chains
ness partners. The company also aims to approach, Audi concentrates its measures concerns battery materials, particularly
establish this sense of responsibility to- on the supply chains that are associated cobalt. In close collaboration with the
gether with its partners along the entire with particularly high risks for negative battery cell suppliers, the Volkswagen AUDI AG intends to use
supply chain. impacts according to its analyses. Among Group is pursuing the objective of creating new technologies also to
the significant challenges facing electric complete supply chain transparency from further increase trans-
Clear rules for business with partners mobility is the sustainable extraction of mining the raw materials to manufactur- parency and traceability
Sustainability requirements in the supply the required raw materials. ing the finished product. in the supply chains. For
chain are firmly embedded the “Volk- Yet what does this mean in practice and The way the company organizes the re- this reason, the Group
swagen Group requirements regarding how does it work? “The topic is multifac- sponsible sourcing of raw materials is driv- is currently piloting the
sustainability in its relationships with eted,” explains Marco Philippi. “Our goal en by the requirements of the OECD Due use of blockchain tech-
business partners” (Code of Conduct is to only use raw materials that have Diligence Guidance for Responsible Supply nology, among others, in
for business partners). They are based, been mined under humane and sustain- Chains of Minerals from Conflict-Affected global and complex sup-
among other things, on the OECD Guide- able conditions. When we consider that and High-Risk Areas. This contains guide- ply chains. For example,
lines for Multinational Enterprises, the an Audi is made up of around 1,600 kg of lines for management approaches, for risk this will allow greater
UN Guiding Principles on Business and different raw materials on average, then identification and prevention, for checking insight into the prove-
Human Rights and the relevant conven- it is clear that we are facing an enormous smelters and for communication and re- nance of cobalt used in
tions of the International Labor Orga- challenge in terms of sustainability.” The porting instruments. lithium-ion batteries for
nization (ILO). The Code of Conduct is, supply chains at Audi can be long and The work in the deeper tiers of the supply electric vehicles. Other
however, not just based on international widely distributed. chain and beyond contractual relations minerals used in vehi-
standards, but also on objectives, rules Some raw materials undergo nine requires further effort from Audi, for cle production can also
and policies of the Volkswagen Group. The stages before they come into direct con- example through involvement in industry- be tracked in this way.
Code of Conduct describes the goals and tact with the Group. Marco Philippi: “We wide initiatives. Audi has been an active Responsible sourcing of
principles of cooperation with partners as generally only have a contractual relation- member of the Global Battery Alliance raw materials is a funda-
well as the scope of application and va- ship with the direct supplier. This makes it since 2017. This addresses the protection mental requirement for
lidity of the regulations. In addition, the extremely difficult to ensure compliance of human rights and upholding of social enabling sustainable mo-
different reporting options and contact with all environmental and social stan- standards in the extraction of the raw bility. The pilot projects
points for misconduct are also included. dards at every stage. Added to this, materials for batteries as well as develop- are the start of a com-
supply chains change frequently: coming solutions for the reuse of lithium-ion prehensive development
Duty of due diligence for human rights panies leave, other providers take their batteries. It is also planned to audit the to create more transpar-
Respecting and protecting human rights place. This makes it extremely difficult sustainability performance of the mines in ency and security in the
is of the utmost priority for Audi. The to maintain a current picture of the the supply chain in the medium term. At supply chain.
company is guided by international re- entire supply chain at all times.” Audi the start of 2019, Volkswagen therefore
quirements in this respect, is involved has therefore chosen what is referred joined the CERA (Certification of Raw
For more information on the
in various initiatives, and thereby cam- to as a hot-spot approach to comply Materials) project, which has committed topics of raw materials and com-
paigns for the preservation of human with its due diligence requirements in itself to developing such a standard and mitment, refer to the Volkswagen
and environmental rights in the supply the raw material supply chain. will test this on selected raw materials. Sustainability Report

Environmental
MISSION:
management at Audi
Audi analyzes environ-

mental aspects of its
worldwide factory net-
Scarcity of resources, environmental pollution, and climate change work in great depth –
are among the major challenges of our time. Audi is making a sus- after all, reliable fig-
tainable contribution to the corporate strategy “consistently Audi” ures are essential for
The four action with its Mission: Zero environmental program. documenting progress
areas and their toward sustainable
objectives production.
In addition to emis-
CO₂ sions, Audi looks at
1 Decarbonization
Audi sites will become On the road to consistently sustainable production other site-based envi-
carbon-neutral on The company is in no doubt: Economic success and environ- ronmental aspects of
balance by 2025. mental protection are inextricably linked. The Mission:Zero operational value cre-
program therefore focuses on the four action areas of decar- ation. Turn to page 72
bonization, water usage, resource efficiency, and biodiversity. to read about the back-
The Sustainable Development Goals (SDGs) of the United ground to the scope of
Nations act as a guiding principle for the program along with the key figures and the
2 Water usage the environmental mission statement of the Volkswagen Group-wide accounting
Closed water cycles
and wastewater-free Group. method.
production sites.
In terms of the ecological transformation of Audi’s world-
wide sites, production and logistics, this means that Audi is
transforming itself from a car manufacturer to a provider of
carbon-neutral premium mobility. All Audi sites will become
carbon-neutral on balance by 2025. In addition, Audi is fo-
3 Resource efficiency
Circular economy and cusing on the efficiency of its processes and water cycles at
effective and efficient its production sites in the face of growing water scarcity and
use of raw materials.
declining drinking water quality in industrialized regions.
Helping preserve biological diversity

Audi not only strives for effective and efficient use and recy-
cling of raw materials in production, the company also plays
4 Biodiversity its part in countering the increasing consumption of land
Projects for protect- around the world. Moreover, Audi is conducting biodiversity
ing and preserving
biological diversity at projects at all of its sites to play its part in helping preserve
all Audi sites. biological diversity.

Taking responsibility
Environmental protection at its production sites plays a decisive role in Audi’s
Sustainability Roadmap. The most important flagship projects in the four main
action areas of Mission:Zero are outlined here:
Győr
Water usage
Brussels Audi uses efficient processes and a water cy-
cle at its production sites for the sustainable
production of its cars. The San José Chiapa
Decarbonization
site in Mexico is an example of a flagship
project where Audi produces cars almost
completely free of wastewater, the first pre-
Audi intends to operate all sites with a hall roofs. The second pillar is the use of mium manufacturer to do so worldwide. A
carbon-neutral footprint by 2025 to meet renewable energies to supply heat to the water treatment plant collects 100 percent
its goal of offering fully carbon-neutral site, also to heat the offices. The plant Ingolstadt of the wastewater generated here, cleans it,
premium mobility. Since 2018, the Audi covers this heating demand by means and feeds large quantities back into the wa-
plant in Brussels has served as a role of biogas certificates. Other emissions ter cycle at the plant.
model – as the world’s first certified car- that are generated, for example from the Audi achieved another milestone on the
bon-neutral volume production plant in operation of company vehicles, are offset road toward consistently sustainable pro-
the premium segment. by Audi Brussels through carbon credit duction of cars at its plant in Ingolstadt,
All production processes as well as all projects. where the company commissioned a new
other emissions generated at the plant Győr in Hungary will become the second process water supply center in 2019. To-
are covered by the site either through Audi site to operate with net-zero carbon San José gether with the former treatment plant,
renewable energies (around 95 percent) emissions in 2020. This is made possible, Chiapa a large proportion of the wastewater gen-
or through global environmental projects for example, by a geothermal system for erated at the site can be fed into a cycle
to offset the emissions. The Belgian site heat supply and Europe’s largest photo- and treated for reuse, thus saving up to
focuses on three main pillars. The first voltaic roof system, which is installed at 300,000 cubic meters of fresh water each
pillar is the switch to green electricity. the two logistics centers at the Hungari- year. The centerpiece of the process water
The largest photovoltaic system in the re- an site. It has a surface area of 160,000 supply center is the membrane bioreactor
gion is installed over a total surface area square meters and peak output of 12 as a core element of a three-stage water
of 89,000 square meters on the plant’s megawatts. treatment process.

Ingolstadt
Brussels
Neuburg
Neckarsulm
Resource
efficiency
Győr
Ingolstadt
Natural resources are important production

San José
factors and a basis for industrial added Chiapa
value. Audi wants to use resources even
more effectively and efficiently and is con-
tinuously developing its recycling exper-
tise – and is also adopting an innovative
approach when it comes to “land” as a Biodiversity on the
resource.
No new soil sealing: A good example plant premises
of this is the construction of the new
IN-Campus technology site in Ingolstadt. Loss of biodiversity is one of the greatest wood, among others, have been integrat-
Specialized teams are working on reme- challenges alongside climate change. Audi is ed into the terrain at the Neuburg site.
diating a 75-hectare brownfield site on committed to preserving biodiversity and thus Creating good habitats: Seed mixtures
behalf of IN-Campus GmbH, a joint ven- joined the “Biodiversity in Good Company” with more than 35 flower species were
ture of AUDI AG and the city of Ingolstadt. initiative in 2015. planted on a number of former lawns at
The project is due for completion by the A very large biodiversity project can be the Audi site in Neckarsulm to create hab-
end of 2022. The pollutants in the soil, witnessed on the Audi plant premises in itats and food sources for insects.
groundwater and soil vapor arising from Münchsmünster near Ingolstadt, where Low-yield pastures with native plant spe-
its former use as a refinery site have to Audi has turned 17 hectares of the total cies were sown at Audi in Brussels.
be removed. The good news for the envi- 31-hectare site over to nature. To date more The company created a green belt around
ronment is that no new surfaces will be than 110 plant species have flourished there the plant at San José Chiapa in Mexico and
sealed with the IN-Campus development. and more than 90 species of wild bees have planted more than 100,000 trees over a
IN-Campus GmbH will use 60 hectares found a new habitat. Low-yield pasture as surface area of 100 hectares in the neigh-
subsequently as a commercial and indus- well as herbaceous perennial and woody boring community of San José Ozumba.
trial park, while 15 hectares of the total plants are just some examples of what can A Pannonian steppe area typical of the re-
surface area will be restored and designed be found in the biotope-like expanse. Sand gion can be found at the Audi premises
in accordance with biodiversity criteria. heaps, insect hotels, and areas with dead in Győr (Hungary).

Background: Environmental management in the Audi Group
Less is more
Audi carefully analyzes the envi- environmental protection bodies AUDI AG is currently working with
ronmental aspects in its worldwide of the Volkswagen Group. It de- Volkswagen Group Logistics to
manufacturing network – with the velops overarching and strategic develop a uniform accounting
vision of building its cars in carbon- regulations and implements method to determine the CO₂
neutral plants by 2025. Along with these in practice. emissions of logistics operations.
emissions, Audi looks at all other Environmental protection at the The Group-wide accounting meth-
Audi works continuously on reducing its energy con- site-based environmental aspects sites comes under the responsibil- od has been developed in accor-
sumption and emissions .[106] In terms of both prod- of operational value creation. ity of the individual environmental dance with DIN EN 16258 and
ucts and site-based environmental activities, the focus The basis of environmentally protection officers. the Greenhouse Gas Protocol. The
is on reducing energy consumption and the associated compatible production at Audi CO₂ emissions are evaluated using
emissions in production. is the environmental and energy Scope of the key figures impact factors such as distance,
management systems that the Unless otherwise indicated, the payload, equipment, and capacity
In addition to the ongoing optimization of processes, company has gradually introduced environmental key figures are utilization.
Audi also places particular focus on energy-saving mea- since 1995. The environmental determined on the basis of The scope of the environmental
sures when planning production and supply facilities as management system of the Eu- Volkswagen standard 98000. This key figures relates to the pro-
well as buildings. The company’s activities also concen- ropean Union, EMAS (Eco-Man- standard defines how operational duction sites of the Audi Group.
trate on generating energy from renewable sources and agement and Audit Scheme), is environmental data is to be de- Unless otherwise indicated,
improving energy efficiency. installed at almost all European termined within the Volkswagen these are the following plants:
car plants of the Audi Group. Six Group and its subsidiaries. The aim Ingolstadt, Münchsmünster,
Audi sites in Germany and seven is to collect and document all en- Neckarsulm, Brussels, Győr, San
internationally have management vironmentally relevant data from José Chiapa, Sant’Agata Bolognese
systems accredited according to all the plants in a comparable (Lamborghini), Bologna (Ducati)
DIN EN ISO 14001[117] or DIN EN manner. The environmental data is and Amphur Pluakdaeng (Ducati).
ISO 50001.[117] primarily based on measurements Only car-producing sites including
Energy intensity of Audi Group [in MWh/veh.] The Board of Management and calculations. Qualified esti- component manufacturing are
defines the environmental poli- mates or projections are used only considered for the specific key
2017 2018 2019 cy, which is binding for AUDI AG in exceptional cases. The environ- figures. In addition to the envi-
sites. Its requirements are re- mental key figures for the respec- ronmental data of the Audi Group
Energy intensity [116] 2.65 2.69 2.67 viewed periodically and amended tive current year are provisional (including Ducati motorcycle pro-
as necessary. data, which are replaced by the duction at Bologna and Amphur
It applies to all products, final result in the following year. Pluakdaeng), the environmental
services and activities, and is The values for 2019 are provi- data of the car production loca-
The energy intensity of the Group relating to automotive implemented at all levels of the sional in this report. The values tions (Ingolstadt, Münchsmün-
production including component manufacturing was 2.67 company. The Environmental Pro- for 2018 are year-end figures: ster, Neckarsulm, Brussels, Győr,
MWh/veh. for the year under review. tection organizational unit coor- This explains any deviations from and Sant’Agata Bolognese sites;
As part of energy management, various measures are dinates the Audi Group’s activities the figures for 2018 listed in the including San José Chiapa) is also
implemented at the individual sites to secure continuous in the area of ecology and is the Sustainability Report 2018, which shown separately for better com-
improvement in energy efficiency. central contact for the respective were provisional at the time. prehensibility.

Energy consumption within the Group Direct (SCOPE 1) and indirect (SCOPE 2) CO₂-equivalent savings in
in total/by type (in MWh) [107] Greenhouse gas emissions by the Audi Group (in metric tons) logistics (in t) [111]
from renewable energy sources (in percent) 2017 2018 2019 13,712
13,571 13,525
Total CO₂ 727,294 619,140 572,804
emissions
34.2 41.1 49 Direct CO₂ emissions 246,276 202,031 198,418

(Scope 1) [108]
2017 2018 2019
Indirect CO₂ emissions 481,018 417,110 374,386 2017 2018 2019
(Scope 2)
A total of 572,804 metric tons of CO₂ were emitted through-

2,920,739 2,775,442 2,677,678
out the Audi Group in 2019. This represents a reduction of
7.48 percent on the previous year.
Total fuel use (in MWh)
2017 1,202,130
In the 2019 year under review, Audi recorded no major
2018 1,092,974 change in general in the total reduction in emissions in
Intensity of greenhouse gas emissions (in kg/veh.) the area of logistics from the “green train” with DB Car-
2019 1,066,205 go. However, there were deviations in both directions. An
2017 2018 2019
increase in emissions savings is primarily attributable to
Intensity quotients for 660 601 573 the relocation of production of the A3 Sedan from Győr
greenhouse gas emissions to Ingolstadt, among other reasons because this resulted
In the year under review, absolute energy consumption (Scope 1 and Scope 2) in additional transportation of bodies from Hungary to
within the organization amounted to 2,677,678 MWh. Germany. Counteracting this was a reduction in emissions
Compared with the previous year (2018: 2,775,442 savings at the Brussels, Ingolstadt, and Neckarsulm
MWh), this represents a reduction of around 3.52 percent. The intensity of greenhouse gas emissions relating to auto- plants. The main reason is the sharp-reduction in capacity
motive production including component manufacturing was utilization of the production locations, leading to reduced
572.99 kg/veh. for the year under review. material and FBU (Fully Built Up) transport. In order to
work systematically on cutting greenhouse gas emissions,
The reduction in intensity is due, among other reasons, to the Audi has been part of the CDP Supply Chain Program via
purchase of green electricity in Neckarsulm and Győr. Since the Volkswagen Group since 2015. Through this program,
January 1, 2020, 100 percent of the electricity taken from the greenhouse gas emissions are recorded along the entire
grid by all Audi sites is green electricity. value chain.

Other air emissions (in t) Total volume of water discharge by destination (in m³) Total weight of waste by
disposal method (in t)
2017 2018 2019
2017 2018 2019
NOx emissions [110]
235 202 191 Disposable waste Total volume of waste
Volume of 2,258,579 2,382,498 1,866,952 (excluding scrap):
Recyclable waste
wastewater
Sulfur dioxide (SO₂) 1.93 2.14 2.06 Metallic waste (scrap)
VOC emissions [109] 1,425 1,081 916 Audi meets all statutory requirements on monitoring and
permit conditions with regard to wastewater discharges. If
363,643
Total dust (PM) 37 58 41 necessary, wastewater is pretreated or discharged directly into
345,827
public sewerage systems.
As well as the CO₂ emissions at the production locations, Audi
320,841
measures other emissions that are generated by painting work, Recycling waste
by the operation of test rigs, or by existing power generating Audi closes material loops where possible in order to reduce
facilities, for example. The reduction in emissions can be ex- waste. Group-wide, a total of 107,389 metric tons of waste
plained by a lower production figure since less vehicle surface (excluding scrap) were generated in the year under review. Year
was painted (VOC and PM). on year, the total volume of waste only increased marginally by
0.29 percent.
Audi was able to further increase the proportion of recyclable

waste Group-wide in the year under review, while reducing the
proportion of disposable waste substantially. One of the main
Freshwater consumption in the Group (in m3) reasons for this is the paint shop, where a large proportion of
10,773
7,405
3,784
the rinsing agents are recycled.
2017 2018 2019
Total freshwater 4,207,671 4,159,236 3,428,952 Audi is aware of the various conditions and local statutory
consumption requirements concerning the recycling of hazardous waste
(2019: 40,683 t) and complies with them.
A major issue within Audi’s environmental policy is the No major discharges of chemicals, oils, or wastes to the envi-
109,965
107,079
103,606
107,389
efficient use of natural resources such as water. In 2019, ronment occurred during the reporting period.
99,192
99,674
the Audi Group reduced water consumption significantly in
comparison with previous years. One of the main reasons for More detailed figures for all topics are
this was the commissioning of a membrane bioreactor at the provided in the data appendix.
Ingolstadt plant.
2017 2018 2019


Emissions sources
at Audi
CO2 CH4 N2O HFCs PFCs SFs
SITES
Business trips Handling of sold

Lessee Lessor
Waste goods at their
Scope 2
produced Company end of life
/ Indirect
facilities
Purchased electricity, steam Transport

heating, and cooling for and distribution Use of
Processing of
own use sold goods
sold goods
Fleet
Purchased goods Fuel and Employee
and services Capital energy-related commuting Transport and
goods emissions distribution
Investments Franchises
Scope 3 / Indirect / upstream activities Scope 1 / Direct / reporting company Scope 3 / Indirect / downstream activities
Activities along a company’s entire value chain
The Kyoto protocol – United Nations Framework Scopes are emissions categories de- Scope 2 emissions are produced, for A distinction is made in Scope 3 be- to-gate). Business trips and waste
Convention on Climate Change – lists six greenhouse fined by the Greenhouse Gas Protocol. example, from energy sources pur- tween upstream and downstream produced are also included in this scope
gases: Carbon dioxide (CO₂), methane (CH₄), and Scope 1 covers direct emissions from chased externally and consumed by the activities. Upstream activities relate, category. Downstream activities include,
nitrous oxide (N₂O), as well as the fluorinated green- combustion processes of stationary company: These are indirect emissions for example, to emissions generated on for example, emissions from transport-
house gases (F-gases): hydrogen-containing fluoro- and mobile systems, emissions from from purchased electricity and district the supplier side (from manufacturing ing products sold and those generated
carbons (HFC), perfluorinated hydrocarbons (PFC), processes, and emissions from vola- heating/cooling systems, and from pur- the product from raw materials up to by the end customer in the use phase of
and sulfur hexafluoride (SF₆) tile gases. chased steam. the point of delivery to Audi (cradle- sold goods.
Source: GHG Protocol / klimareporting.de / Audi


A total of 92 inline measuring stations with 412 sensors are

operated in Ingolstadt by the body shop in collaboration with
the Analysis Center’s measurement technology unit. Some
1,000 measuring points are recorded for each vehicle model.
A measuring point is a defined position on the vehicle at which
the body or component is measured in order to determine
compliance with default set values and to identify any changes.
“We generate vast amounts of data every day with our mea-
surements – about three million records per day,” explains Hof-
meister. “We would scarcely be able to monitor this enormous
quantity of data completely manually. This is where K-PoWa
comes into play. At Audi we use this tool to demonstrate what
Industry 4.0 means and how big data can help all of us.”
Use of big data

Humans and machinery generate immense volumes of data
in Audi production – with a steeply rising tendency. This
data contains a wide array of valuable information and cor-
relations. For production, big data ultimately means a shift
toward data-led and therefore highly flexible, but also highly
efficient production. This is because the targeted merging,
Experts in quality and big data (from left to right): Dirk Zitterell processing and evaluation of data delivers substantial val-
(Data Scientist), Hans-Jürgen Schweiniger (IT Quality Management) ue added for sustainable production. Designing effective
and Rudolf Reinhard (Data Scientist)
processes and avoiding errors ensures that resources and
materials are used sparingly and efficiently, while optimized
The perfectly uniform gap dimensions on every Audi can also production processes also ease the burden on employees.
be attributed to the work of analysis measurement engineer
Precision Ralf Hofmeister and his colleagues Dirk Zitterell and Rudolf Re-
inhard from the Audi Production Lab. “Our tool ‘Karosseriebau –
Using data correctly
The body shop’s ability to generate three million records is
counts Prozessorientierte Wirkkettenanalyse’ or ‘K-PoWa’ is for pro-

cess-driven event chain analysis in body construction,” says Ralf
Hofmeister. “It answers the questions: Are there anomalies in
naturally only the beginning. The important thing is to de-
cide: “How can we use the data to respond to questions that
arise in the specialist area’s business process?” says data sci-
the production process in relation to the vehicle geometry, and entist Dirk Zitterell. He and Rudolf Reinhard work in the Audi
When a new Audi leaves production and travels the first what impact do they have on the overall result or how do they Production Lab (P-Lab), which supports the creation of many
few meters on its own four wheels, it is clear on first glance affect each other? By using state-of-the-art techniques from new technologies for production. “In the context of technol-
to anyone watching that everything about this vehicle is data science such as anomaly detection, we can perform fully ogy development, we collaborate with colleagues from the
harmonious. And on second glance? Yes. And third? Yes automated statistical process monitoring of the measurement Production division to develop tools for data analysis in pro-
again. And fourth ...? Even if a magnifying glass were used. series.” For this purpose, 100 percent of vehicle bodies and duction or planning that are at the cutting edge of research
Every vehicle body is flawless. their subgroups are measured by Audi at the Ingolstadt plant. and technology,” says Rudolf Reinhard. “The lab acts as an

1,200 interface between innovation and series production, and

provides targeted support for employees and planners in
production.”
What is a hackathon?
Audi uses hackathons to drive inno-
vation in a targeted way. The term
patents were registered by Audi is coined from the words “hack” and
in the 2019 year under review. Working with agile methods, the K-PoWa team had the chal- “marathon" and describes a collabo-
lenge of developing a technical analysis tool that records and rative software or hardware develop-
The number of patents is a good visually presents relationships in the data records fully and ment event.
indicator of ability to innovate and quantitatively. Initial solution approaches were demonstrat- The goal of this collaborative gath-
innovation management. When it ed during the Audi Smart Factory Hackathon. Meanwhile, ering is always to produce useful and
comes to innovation, Audi has been the project is now being developed progressively by a project creative software products within a
setting records for years. team consisting of employees from P-Lab, the body shop, short period of time – sometimes
The company registered more the Analysis Center and IT. “As a premium carmaker, we set even during the course of an event – in
than 1,200 patents in the 2019 year ourselves very high standards. This project is also a good ex- order to find solutions for given chal-
under review. In the area of auton- ample of this,” explains data scientist Rudolf Reinhard, and lenges and specific use cases.
omous driving, for example, Audi adds: “Our preventive measurement technology also con-
came out on top in recent years in tributes to greater sustainability in production: It is efficient ABI: Business innovations at Audi
studies of car manufacturers con- with respect to reworking costs, effort, and time. In terms of Audi Business Innovation GmbH (ABI),
ducted by the German Patent Office our life cycle assessment, energy consumption is falling and a 100 percent subsidiary of Audi, is
and the European Patent Office. there is less waste.” also a driver of innovation. ABI’s goal
is to find answers to current and fu-
ture customer problems efficiently
Click here to find the studies by Audi also benefits from the ingenuity of its
the German Patent Office and the employees. The most important figures from and sustainably and in this way shape
European Patent Office. the Audi Ideas Program are on page 90 tomorrow’s digital business models.
As one of four business areas, the Busi-
ness Innovations division bundles the
competencies Service Design, Business
Peter Stechel
(Head of the Analy- Design, and Project Management.
sis Center, left), One of the key focal points is busi-
Ralf Hofmeister ness model development in relation
(Head of the tech-
nical center for to energy and sustainability. ABI
body measurement develops product ideas together with
technology), and customers in different Group projects
Thomas Reeb
(Head of measure- and validates them in terms of will-
ment technology, ingness to pay and market require-
right) examine ments as well as potential take rates.
sensors on an
inline measuring For this purpose, the company also
station at the regularly conducts interviews with
Ingolstadt plant. fleet managers or tests digital prod-
ucts and services with customers.

Value Creation and Production (Table 1 of 4)

The Audi sustainability program combines strategic goals in the area of sustainability with specific measures. It is divided into the four
core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production,” and “Employees and Society.”
Integrate sustainability into supplier relationships Training for all procurement employees to raise awareness Continuous
of sustainability standards in supplier relationships development
Training for all suppliers to raise awareness of Continuous

sustainability standards in the supply chain development
Introduction of a sustainability rating (S-Rating) 2019

from mid-2019 with relevant first-tier suppliers (completed)
Sustainability rating (S-Rating) as a mandatory Continuous

criterion for awarding contracts development
Involvement in industry standards and Group tools to Continuous

ensure compliance with environment-related and social development
standards in the supply chain

Integrate sustainability into the supply of raw materials Development of circular economy concepts for the supply chain 2020
(focus: aluminum and HV battery)
Adaptation of existing processes through successive Continuous

implementation of human rights duty of care for critical development
raw materials in the supply chain
Successive decarbonization of the supply chain Performance of CO₂ workshops with selected hotspot Continuous
together with suppliers [113] suppliers to identify measures with potential to reduce development
CO₂ emissions [114]
Rollout of the Aluminum Closed Loop in other plants 2025
Anchoring the use of green electricity in the supply chain Continuous

development

Involvement of Sales in implementing Completion of a sustainable conference building (Audi Brand 2019
Audi’s sustainability strategy Center) at Munich Airport with an integrated photovoltaic system (completed)
to generate electricity, ultra-efficient building technology,
geothermal building cooling and heating, along with the use
of sustainable building components
Commissioning of an electric charging station at Munich Airport 2019
with six charging points (two rapid-charging stations, four stan- (completed)
dard-charging stations), supported by second-life-battery buffer
storage devices. Reuse of the e-tron meteorite as a building for the
electric charging station supplemented by sustainable materials
Reduction in disposable waste, freshwater consumption, Detailed planning and implementation of site-specific packages 2019
CO₂ and VOC emissions, as well as overall energy of measures for achieving Group-wide reduction targets (completed)
consumption at the production sites by 25 percent
per reference unit (base year 2010)
For the German sites Ingolstadt and Neckarsulm, we have Detailed planning and implementation of site-specific packages 2020
set ourselves a reduction target of 40 percent for CO₂ per of measures for achieving Group-wide reduction targets
reference unit through 2020 as part of energy supply
(base year 2010)
Achievement of the target figure for the environmental Detailed planning and implementation of site-specific packages 2025
impact reduction production per unit (UEP) of 35 percent. of measures for achieving Group-wide reduction targets
The environmental impact reduction production is a vehi-
cle-specific variable. From 2010 through 2025, the devel-
opment of the five key figures is analyzed: CO₂ emissions,
overall energy consumption, disposable waste, fresh water
consumption and VOC emissions.

Expansion and development of measures for reducing Realization of water recycling at the Ingolstadt site using a mem- 2019
freshwater consumption at national and international sites brane bioreactor; reduction target for freshwater requirements: (completed)
30 percent [115]
Systematic reduction in energy consumption Reduction in overall energy consumption through targets Continuous
derived from prior-year consumption and the corresponding development
concrete, implemented and documented individual measures
in the operator and planning areas
All plants CO₂-neutral Detailed planning and implementation of site-specific packages 2025
of measures for achieving targets
Implementation of the performance standard/chain of Verification of the ASI performance criteria and implementation 2021
custody of the Aluminum Stewardship Initiative (ASI) of the necessary audit to renew the ASI certification of the alumi-
num components in the Audi e-tron high-voltage storage device
Extension of the ASI performance standard/chain of custody Continuous

to include other aluminum components and production sites development
of AUDI AG
Integration of sustainability in the supplier chain and own Development of sustainability principles and support of the Continuous
added value of high-voltage storage devices at Audi establishment of standards for high-voltage batteries in the development
working groups “Circular Economy” and “Innovation” of the
Global Battery Alliance, hosted by the World Economic Forum

Is good work
good for everyone?
* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), combined CO2 emissions in g/km: 0

Audi embraces
diversity
Equal opportunity for everyone: Diverse backgrounds, competencies
and skills are what make success possible in the first place. Audi
aims to ensure that its employees can optimally unleash their
potential – at every level, regardless of cultural background or other
characteristics. How well are the Four Rings doing in this regard?
Five employees share their experiences:
Gertraud Grünwald
62, Head of Works Council Service
“Different generations can learn so much from

each other in our day-to-day work. And I don’t
just mean younger employees benefiting from
Roland Degmair the experience of older ones. It also works
the other way around: Young people are often
52, Media Design specialist
more willing to question established practices
“The most important thing in a diverse workplace – and I find that very inspiring. Personally, I’ve
is good communication. We should be able to con- been with the Company since 1974, and for
verse in depth and ask questions without fear. And the past 14 years my staff on the Works Coun-
we should serve as interpreters, mediating between cil Service and I have been meeting the needs
those who speak different languages. That’s my job of Audi employees who have problems due to
at Audi as a media specialist. In 2017, for example, I illness. That’s how I know that a personal con-
acted as a mediator and co-founded the queer@audi versation can be more effective than twenty
network. Today, this network includes more than 100 e-mails. Of course, I am already thinking about
employees who feel it is important that people of all the third phase of my life – my own retirement.
gender identities and sexual orientations feel com- But until then, I’ll continue to enjoy the diver-
fortable here. I’m proud that Audi has taken a clear sity of my work at Audi, which presents me
stand on this issue, both internally and externally.” with new challenges every day.”

Thomas Hauser
Tiziana Ruiu 52, IT project manager
36, fuel cell development engineer
“People who fight for diversity and the future
Thematic goals
“I’m used to adjusting to changes. I grew of Agenda 2030 should never give up too soon. Sometimes you have
up in Sardinia, but traveled 800 kilome- to keep going even when all you want is to throw in
ters to Turin for my master’s degree. Then the towel. For instance, when I was young I really
I earned a doctorate in chemistry, but I wanted to take up a skilled trade. Then, at the age
soon realized I wouldn’t be able to find a of 15, I lost my left forearm in an accident and it
suitable job in Italy. So in 2012, I moved seemed like my dream was impossible. But now I
to Stuttgart, where I worked for the Ger- can say that this difficult situation has made me
man Aerospace Center – until I joined Audi even stronger. First I completed a classic appren-
in 2017 to work on basic fuel cell devel- ticeship and then I studied computer science. Since
opment. My early days in Germany were Promoting gender 1996, I have worked in the IT department at Audi,
equality and em-
hard; I had to learn the language and find where I have managed many exciting projects over
powering women is
my way around. But the changes and chal- an integral part of the years. And when problems arise, I still follow
lenges also motivated me. I feel very re- Agenda 2030, which the motto: If I have to, I’ll run into a wall 10 times
spected here at Audi. Every now and then seeks to create a or more – until it eventually gives way.”
diverse and inclusive
I visit my family in Sardinia. There are
community where
many places I call home.” gender makes no
Tobias Narr difference.
28, maintenance group leader
“Fortunately, I don’t have to keep my favor-

ite hobby quiet in the workplace: My passion
is soccer, especially the Bayern Munich club.
Admittedly, Bayern fans are in the majority
at Audi, but when we discuss the weekend’s
professional league games during our Mon-
day breaks, we welcome fans of all clubs. As a Goals include long- Promotion of
group leader, I need many of the qualities that term, inclusive equal opportunity
are also important in soccer: I have to be able and sustainable helps ensure con-
economic growth, tinued economic
to motivate others, and I always have to think
full and productive success and rein-
about the team first while still remaining true employment and forces social cohe-
to myself. So my hobby is very educational for dignified work for sion. This devel-
me, both as a player and as a group leader. I’m everyone. Social, opment goal was
environmental and born of concern
also a member of the Audi fan club for the local
economic develop- over growing so-
soccer club, FC Ingolstadt. But I think Bayern ment goals should cial and economic
Munich will forgive me for that.” be harmonized. inequality.

Flow of knowledge
Audi plans to bring dozens of electrified models
onto the market by 2025. That requires expertise –
which Audi employees acquire through specially
tailored training and development programs. A report
The Audi e-tron is up on the hy- methods and new content both
draulic lift with the hood open. But in training the next generation of
the car is not defective; it is just employees and in offering expe-
there for illustrative purposes. And rienced employees professional
for once, no apprentices or training development opportunities,” ex-
participants are crowding around plains trainer Rupert Kaindl.
the car at one of the training Audi trains young people world-
workshops at the Audi Academy in wide and provides advancement
Ingolstadt. Today, trainers Rupert for employees in all life phases by
Kaindl and Siegmund Singer are offering appropriate development
teaching their co-workers from and qualification options. But
Digitalization of Logistics Process- e-mobility is not the only field in
es how to de-energize an electric which Audi employees have been
vehicle – and they have decided to trained for many years.
transform the training content into The Audi Group’s comprehensive
a VR training session. range of competence development
and qualification programs is bun-
Individual and virtual learning dled at the Audi Academy, where
Apprentices and participants in all apprentices, employees and
professional development courses managers can take advantage of
will later be able to practice the them. “With the focus on electric
necessary steps on an electric car in mobility, a new age has dawned for
virtual reality. “The digital world us at the Audi Academy, too,” says
allows us to save real resources. Erich Schott, who is responsible for
Not only can we share more apprenticeships in the area of au-
knowledge with our employees, tomotive engineering. “We want to
we can do so in a very individual bring Audi employees up to speed
Trainer Rupert Kaindl explains to Audi employees Felix Fornoff and Leon Meka way. Digital learning opens up new with the numerous new activities
(from right) how the Audi e-tron* is disconnected from the battery.
* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC);
26.6–22.4 (WLTP), combined CO₂ emissions in g/km: 0

Thematic goals of Developing and nurturing

Agenda 2030
competences
A transformation calls for
new key competences,
since competence and
qualification require-
ments change fundamen-
tally. The Audi Academy’s as quickly as possible. There is a batteries. The first apprentices will of high-voltage batteries. It qual-
qualification programs huge demand for qualifications in be piloting this additional quali- ifies the participant as an electri-
No exhaust emis- prepare employees for the field of e-mobility. Our work- fication in September 2020. Ulti- cian for battery technology with an
sions in the air:
future challenges. The force needs to feel at home in this mately, battery technology will be IHK certificate examination.
Electric mobility is
meant to benefit courses offered are field quickly,” adds Michael Lob- integrated into the apprenticeship Rupert Kaindl, 46, has been a
everyone’s health geared to Audi’s human meier, who heads the professional as a fixed module. trainer for 20 years. He helps de-
and well-being. resources and com- development program for automo- velop the content of training and
petence development tive engineering. Thousands of Audi employees are development measures: “Every
needs as well as to the Since 2014, more than 450 ready for e-mobility person learns differently. We al-
future topics of the in- young men and women have been Professional development mea- ways think about the most efficient
dustry. Audi will invest trained at the Ingolstadt and Neck- sures are designed to take into way to learn. Our main aim is to
more than half a billion arsulm locations as automotive account the previous knowledge provide support and advice. With
euros in professional de- mechatronics technicians special- of the employees starting the the help of the digital training
velopment between now izing in system and high-voltage training. The learning content world, every apprentice and course
and 2025. technology. Apprentices who and qualifications are adapted participant can learn individually.”
Education is a
During the year under successfully complete a program accordingly. Different qualification Audi spends a great deal of mon-
fundamental human
right and key to the review, the Audi Group with this specialization are then paths show which qualification ey on the training and, above all,
sustainable develop- held 20,694 training qualified as electricians for auto- is appropriate for the respective the development of its employees.
ment of society. events worldwide with motive engineering. After their ap- employee. The qualifications are By 2025, the company will make
1.7 million participant prenticeship, they work in various bundled and structured so that EUR 500 million available for pro-
hours. In Germany, production areas or in one of the they build on each other, enabling fessional development alone. In
where there were 10,866 workshops at Technical Develop- employees to start their electric 2019, the Audi Academy qualified
training events, over ment or the Pre-Series Center. mobility qualifications in line with around 8,000 participants world-
33,000 employees at- While the occupational profile their individual needs. The more wide for electric mobility.
tended one or more qual- of automotive mechatronics tech- advanced their qualifications, Audi is also looking to cooperate
ification courses in 2019. nician specializing in system and the more freedom they have to with external training partners.
high-voltage technology has been work on an electric car. In total, Together with Ingolstadt Univer-
established since 2014, an addi- employees have access to over 38 sity of Applied Science (THI), Audi
Sustainable eco- tional qualification is now being qualifications on the subject of has designed a professional devel-
nomic development For more information and fig-
introduced in battery technology, e-mobility. For instance, one newly opment program for drive devel-
reconciles social, ures on professional develop-
environmental and ment measures at Audi, please which focuses on the production and developed program focuses on the opers. Technical and educational
economic goals. see page 107. quality assurance of high-voltage production and quality assurance experts from the Four Rings

joined forces with THI professors Ingolstadt University of Applied ments that enable employees to “There is a huge demand for qualifi-
to tailor the in-service qualification Science and the Technical Univer- gain specialized and interdisciplin- cations in the field of e-mobility.”
to the company’s requirements. sity of Munich, and also through ary qualifications throughout their
Erich Schott, Head of Vocational Training in
Thus Audi engineers are now able the partnership program with the entire working lives. Automotive Engineering
to broaden their knowledge in Baden-Württemberg Cooperative
THI’s lecture halls. The aim is to State University. Those graduating German standards worldwide
build up further strategic and tech- from these courses are guaranteed Whether electric mobility is ad- “With the help of the digital training
nical expertise in the field of elec- permanent employment at Audi. dressed in vocational training or world, every apprentice and course
tric mobility. Performance appraisals conducted professional development courses
participant can learn individually.”
Commercial partners are also regularly for all employees at AUDI – Audi’s international locations
receiving electric mobility training. AG play an important role here. are always on board. If necessary, Rupert Kaindl, trainer at the Audi Academy
Service technicians in more than Employees can use these appraisals the special training and develop-
40 markets are taking advantage to discuss their development oppor- ment programs can be adapted
of a specially developed VR training tunities. Together with the General to the particular requirements of
course to familiarize themselves Works Council, the management each country.
Successes of the Sustainability Academy
with the details of the high-voltage of AUDI AG has agreed on arrange-
battery in the Audi e-tron. To improve its sustainability performance even
more, Audi founded the Sustainability Academy
Audi promotes lifelong learning in 2016. All employees and apprentices can
Training and development play take part in classroom training or digital for-
an important role not only in the mats such as web-based training (WBT) on the
transition to electric mobility, but subject of sustainability. The focus here is on an
also in Audi’s overall transforma- internal transfer of knowledge – from co-workers
tion. The Audi Academy promotes for co-workers. Around 900 employees at-
lifelong learning and prepares tended training courses at the Sustainability
employees for future challenges in Academy in 2019.
a targeted manner – from voca-
tional education and dual studies
Education counts
to professional development
courses. Audi offers vocational In addition, other area-specific qualifications
training that enables talented exist throughout the company. For example,
young people to qualify in one there are training courses on topics such as
of 20 vocations. A dual course of procurement and logistics, or environmental
study gives students the opportu- protection and energy efficiency in production.
nity to combine theoretical studies A number of sustainability-related Web-based
with in-house practical phases. training courses were also introduced in 2019.
Under the “Audi dual” program, These formats are intended to create a com-
various study courses are available mon understanding of sustainability and raise
to prospective students at the Two experts for electric vehicles: trainers Rupert Kaindl (left) and Siegmund Singer. awareness among employees.

Who we are?
Number of employees
We are Audi
Audi Group workforce[201]
90,783
A company is only ever as good as its employees. And good Lifelong learning
work requires good working conditions. That is why the To ensure the future viability of the company, Audi prioritizes
Human Resources and Organization division consistently the training and development of its employees. Lifelong
focuses on the employees and assumes responsibility – in learning is meant to contribute to the success of the Four
Proportion of line with the 2025 corporate strategy. Rings. Moreover, the brand has established a strategic re-
women[203]
source and competence management system that enables
15% Making working hours and the place of work more flexible the Human Resources and Organization division to plan per-
and implementing agile structures and processes are sonnel requirements for future tasks and develop employees’
important aspects of the Audi Working World. This means competences in a targeted manner. In this way, Audi is opti-
considering the different phases of the employees’ lives mally prepared for the challenges of the future.
and promoting trustful cooperation.
The workforce in figures
At the close of 2019, the Audi Group employed a total of
Apprentices[201] 90,640 people (2018: 91,674), with an average of 90,783
2,585 employees (2018: 91,477) over the year. This represents a
year-on-year decrease of 1,034 employees (year-end figure)
or around 0.76 percent (annual average). Of the total of
New hires, Audi Group 4,214 (2018: 5,004) employees newly recruited within the
4,214 Audi Group, 1,310 (2018: 1,628) were taken on by AUDI AG.
Audi fundamentally supports the employment and qualifi-

[203]
cation of local employees. The Group is convinced that these
Average age [213]
employees are knowledgeable about the region and the local
41.5 55.1% market, and have good networks that are helpful for the fur-
ther development of their locations. The proportion of foreign
nationals[204] at AUDI AG was 8.3 (2018: 8.4) percent in 2019.
30.6%
< 30 years
GRI 102-41
14.3%
Detailed information on employee numbers
30 to 50 years
48.5 (2018: 48.4) percent of Audi Group employees were in
> 50 years
[203][204]
the production area and 48.5 (2018: 48.6) percent in the

non-production area at the end of 2019; the number of Men and women on parental leave [204]
relating to agency and temporary staff as well as the “Char-
apprentices was 2,585 (2018: 2,582). Within the employees ter on Temporary Work of the Volkswagen Group,” an agree-
in the non-production area, the proportion of academics[204] ment has been reached with employees’ representatives on
[207]
at AUDI AG was 51.4 (2018: 50.9) percent. The number the deployment of temporary workers. As well as extensive
of temporary employees in the Audi Group showed a year-on- 2,305 qualification options, it offers the prospect of being taken
2,210
year decline to 1,957 (2018: 2,527). The turnover rate[203] [204] on permanently subject to relevant internal factors.
at AUDI AG in 2019 was 0.7 percent (2018: 0.9).
1,448 Self-determined work
Fair conditions for everyone 1,229 Audi creates leeway for various different life phases to take
Through collective bargaining agreements involving the account of employees’ needs. The company offers many dif-
unions and management at all manufacturing sites, Audi ferent working hours models to give people maximum flex-
undertakes to ensure that part-time and full-time employees ibility for their personal path through life. In 2016, Audi’s
receive equitable and fair pay. At Audi, the activity alone de- management and General Works Council approved a works
termines remuneration. agreement that gives employees an entitlement to mobile
2018 2019 2018 2019
working if this is compatible with their work task. There
As an employer, Audi is also aware of its special responsi- is also a drive to make working hours in production more
bility toward temporary employees. Based on the collective
agreement for the metalworking and electrical industries
9 months flexible. In 2017, a pilot project was launched at Ingolstadt
to create greater flexibility in shifts and broaden the scope
Average length of parental leave in 2019 for part-time work in shift systems, so that employees can
Men on parental leave
achieve a better work-life balance. As of the end of 2019,
there were 4,448 (2018: 3,924) employees at Audi with
Women on parental leave
part-time contracts.
Family and career? No problem!

Company benefits in Germany
Audi supports its employees’ efforts to achieve a balance be-
Audi offers its employees a pany agreements with em- fit plans. For the former, the those that are financed tween family life and work. Employees can for instance work
high level of job security and ployee representatives, they company pays contributions externally. In addition to a part-time or take caregiver leave to support family members.
attractive financial remuner- are above the agreed level to public or private-sector company pension scheme Many employees take up the option of parental leave. The
ation components. In Ger- for the industry. In addition, pension plans on the basis and the possibility of top- company then facilitates their reintegration and gives em-
many, employment contracts there are collective/works of statutory or contractual ping up retirement benefits ployees on parental leave additional job training that will
are drafted on the basis of agreements on employee requirements, or on a volun- individually through de- make it easier for them to resume their careers. In 2019, a
the collective agreement participation in the compa- tary basis. ferred compensation, Audi total of 3,753 (2018: 3,439) employees took parental leave,
between the Südwestmetall ny’s success and collectively Retirement benefit sys- endeavors to make the tran- of whom 1,448 (2018: 1,229) were female and 2,305 (2018:
Employers’ Federation, vbm agreed gratuities. tems are based predomi- sition from working life to 2,210) male. On average, employees took 9 months of pa-
(Bavarian Employers’ Associ- Employees in Germany nantly on defined benefit retirement more flexible. A rental leave.
ations for the Metalworking benefit from the company plans, with a distinction works agreement has been
GRI 102-41
and Electrical Industries) and pension scheme, which being made between those reached on the further de- Audi restated its commitment to a family-friendly corporate
the IG Metall trade union. comprises both defined con- benefit systems financed velopment of partial retire- culture in joining the Family Pact for Bavaria in 2017. To ac-
Thanks to additional com- tribution and defined bene- through provisions and ment, for instance. tively promote the compatibility of family life and work, the

Optimal conditions 101.3 million

for good ideas
54.4% 23,073 ideas business models – presents major challenges for co-determi-
Implementation from Audi employees were
nation and thus for corporate culture. Both sides of the social
€
quota implemented in 2019
partnership have to work on a wide range of structural issues
as well as questions of corporate and collective bargaining
policy. A new, empowered co-determination culture 4.0 – i.e.,
Savings (in EUR million) one that is open, transparent, participation-oriented and
agile – adds direct employee participation to the established
form of institutional co-determination. Works Council and
company has a regular and steadily growing block of places AUDI AG “Stimmungsbarometer” in 2019. The results are trade union members, as well as the management at Audi,
at day care centers in Ingolstadt and Neckarsulm. Audi also presented in the individual organizational units and dis- are called upon to take action in this area.
has partnerships with day care centers and schools at the inter- cussed with the employees.
national Audi sites in Győr (Hungary), Changchun (China) and In the course of the EdA project, various events took place
San José Chiapa (Mexico). In addition, the company enables Opportunities and risks of future forms of work under the title “Werkstatt Audi.” The sub-project “Developing
employees and their families to handle everyday errands The Audi Works Council plays an active role in shaping the new concepts for a participation-oriented corporate culture
(grocery shopping, postal and dry cleaning services) by digital transformation and thus the future at Audi. As part of in the digital working world” attempted to adapt traditional
using the Audi service lockers directly on the plant perime- the project “Vision Ingolstadt 2030: Digitalized work and the large-group methods to the respective organizational needs
ters. This saves them time and also helps to ease traffic future of co-determination” initiated by the employee rep- and action areas. Whether fishbowl discussions, BarCamps
loads around the plant. resentatives and the IG Metall Ingolstadt trade union, em- or world cafés – they all shared a common theme: participa-
ployees, shop stewards and Works Council members conduct tion orientation as a means of achieving more personal and
Optimal conditions for good ideas a dialogue with start-up ventures, politicians and scientists responsible empowerment at Audi. During the EdA project
Audi profits from the imaginativeness of its employees and be- about the digitalization and humanization of the working phase from 2017 to 2019, the Audi Works Council gathered
lieves it is very important to encourage employee involvement. world. This project has given the Audi Works Council the a wide range of experience and ideas on the topic of employ-
The Audi Ideas Program[204] collects suggestions for improving opportunity to take part in the EdA project – a joint initiative ee participation and empowerment in terms of both methods
existing processes. In 2019, around 54.4 (2018: 55.5) per- funded by the Federal Ministry of Education and Research en- and content. Much of this has since been incorporated into
cent of ideas put forward were realized, producing savings of titled “Empowerment in a digital working world – developing both the Audi corporate culture and the participation culture
around EUR 101.3 (2018: 109.1) million. sustainable concepts for digitalization.” Specifically, the Audi of the Works Council.
Works Council was in charge of the sub-project “Developing
The regular employee survey is another way in which Audi new concepts for a participation-oriented corporate culture
promotes employee participation. This survey gives Audi in the digital working world.”
employees a means of voicing their opinion anonymously
on various matters and highlighting potential improve- The sustained transformation of the automotive industry More detailed figures are provided
ments. 40,886 (2018: 42,173) employees took part in the – digitalization, globalization, electrification, disruptive in the data appendix.

United for
your health YEARS
Accidents are extremely
rare at Audi: On average,
employees suffer an accident
at work every 105 years.
Audi employs an integrated occupational safety system and

comprehensive health management system to minimize
work-related accidents and improve the health resources
for its workforce. In particular, the company has intensified
its advisory services on mental health.
Employees who remain uninjured and untroubled by fears or

worries on the job tend to perform their duties quite eagerly
and successfully, which is a win-win situation for employees
and employers alike. But what exactly can companies do to
ensure an optimal working environment – that is, one that
protects all employees from accidents and motivates them to
do their jobs as well as possible?
Audi’s Board of Management and employee representative

bodies have jointly developed measures for all day-to-day op-
erations to prevent accidents and health hazards as well as to
design safe processes, equipment and products. The Board of
Management bears overall responsibility for compliance with
the statutory regulations on occupational health and safety.
Audi has a works agreement in place for occupational health dards and safety-conscious behavior. Employees are thereby Comprehensive risk assessments and regular training cours-
management, which was extended by an additional world- encouraged to take an active part in optimizing safety in es are already part of Audi’s day-to-day work repertoire, in
wide standard for its international sites in 2017. the workplace. In 2019, Audi set an ambitious target for its an effort to prevent accidents and health impairments. All
industrial safety policy: to establish a safety culture that is work-related accidents are analyzed jointly by managers and
Safety first characterized not only by compliance with rules and regu- industrial safety specialists. This has proved successful: In
In terms of occupational health and safety, Audi is continu- lations, but also by employees looking out for those around 2019, there were just 6.2 (2018: 5.6) work-related accidents
ously driving progress both in terms of technological stan- them on their own initiative. per million hours worked at AUDI AG that resulted in at

“Everyone has a
1.
NKEN
G E DA T E R
-
psyche”: Posters
from the internal
EIN ER
MUS
health campaign
AN
Occupational health
and safety
AU DI T
Comprehensive health K E N NI N E N
KE
management and an inte-
E RZ.
grated occupational safety
system are two of the
SCHM
ways in which Audi seeks Weißt du, wer keinen Schmerz kennt?
to minimize work-related Der Nacktmull. Sei nicht wie der Nacktmull!

Rede über Schmerzen. Thousands of Audi employees attend checkup
accidents and improve Jeder hat Psyche. Warum nicht darüber reden?
In addition to industrial safety, Audi devotes considerable
the health resources of its Informationen über Beratung, Hilfe und Vorsorge finden Sie im
Mynet unter dem Stichwort: „Jeder hat Psyche.“ attention to the physical and mental health of its employees.
employees while also pro- The Audi Checkup plays a central role here: The individual
Wir-sind-Audi
Audi Mynet
moting their physical and Audi

Gesundheitsmanagement
prevention program can be used by all employees during
mental performance. Verantwortlich: I/SW | aufzuhängen am 05.12.2019 | abzuhängen am 19.12.2019
working hours and helps to identify and reduce health risks
Group-wide standards are early on. Around 10,000 employees took advantage of the
helpful in this regard. For all Audi Checkup in 2019 (2018: 9934). Audi also offers various
day-to-day operations, the fact-finding events and training courses as well as health care
company and Works Council least one day’s work lost. In other words, Audi employees and health promotion programs. In the year under review,
representatives have devel- suffer an accident at work about every 105 years on average. the company enhanced the “Work and Psychological Health”
oped measures to prevent The number of accidents involving medical referees or first program and introduced further digital products such as the
accidents and damage to aid was again reduced compared with the previous year. HR application “e-health,” for example.
health as well as to design There were no fatal accidents at Audi in 2019 (2018: one).
safe processes, equipment Open discourse
and vehicle components. Safety at work Audi placed particular emphasis on the mental health of its
The Board of Management The way the workplace itself is designed plays a decisive role workforce in 2019. As part of the internal campaign “Every-
is responsible for compli- in improving safety at work. Audi applies the most modern one has a psyche,” the company’s health management team
ance with the respective standards in ergonomics, safety technology and occupational urged all employees not to neglect their own mental health.
statutory regulations. Fur- medicine at all of its sites. As part of the Audi ergonomics Moreover, superiors, Human Resources advisors and Works
thermore, each manager is strategy, the company promotes intelligent work organi- Council members were trained to recognize mental health is-
responsible for occupational zation along with measures to apply the standards on an sues among employees at an early stage and to address them
safety in his or her super- international scale, for example. Through targeted consulta- in a sensitive manner.
visory and functional area. tions, Audi raises its employees’ awareness of the issue and
This is also laid down in a encourages them to put forward their own suggestions, thus
company agreement on allowing them to design their own workplace. The ergonom-
industrial safety that covers ics coordinators at all Audi sites discuss measures and devel- More detailed figures are provided
all employees of AUDI AG. opments several times a year. in the data appendix.

For Audi, cooperating with the scientific

community and promoting education are
Innovation through important drivers for a successful future.

In this context, it is important to Audi that
cooperation
the transfer of knowledge is mutual. Differ-
ent forms of cooperation are possible: For
example, a number of national and interna-
tional universities work with the company.
When business and science cooperate with each In addition to being involved in research
other, both sides benefit. That’s why Audi supports projects and giving scientific lectures, Audi
researchers and lateral thinkers – and gives them a at employees teach at universities. Audi con-
stage conferences where they can share their knowl- tributes towards extending research and
edge. Eight impulses for the world of the future: teaching into new fields through endowed
professorships. With all these activities,
Audi contributes to society and puts cor-
porate responsibility into practice. Audi
sees universities as special partners and is
actively involved through various initiatives
for a transparent, fair and honest cooper-
ation between industry and academia. For
example, a doctoral program enables young
scientists to conduct research in technical
and non-technical projects for Audi.
Other pillars of Audi’s activities are the

public lecture series “Wissenschaft im Di-
alog” (Academia in Dialogue) at the sites
Inspired the audience at the “MQ! The Mobility in Ingolstadt and Neckarsulm as well as an
Quotient” summit hosted by Audi: Peggy Liu, chair- international, interactive conference on the
person of JUCCCE and expert on sustainability and mobility of the future called “MQ! Innovation
large-scale development.
Summit.” The conference, which took place
“Sustainable mobility means not just low in China for the first time in 2019, brings to-
CO₂ emissions. It means zero carbon emis- gether international pioneers, thought lead-
sions. More than 30 cities in China will have ers and experts from business and science
fully electrified their public transport sys- to discuss new approaches to innovation
tems by 2020. We can learn from China how topics and the future of mobility. The main
sustainable solutions can be implemented topics of discussion in 2019 were social and
on a large scale.” sustainable mobility as well as more flexible
mobility concepts.

Professor Wolfgang Prinz, PhD Professor Stefanie Bremer Daizong Liu

Vice Chair of Fraunhofer FIT, University of Kassel, Inte- Director
RWTH Aachen University, grated Traffic Planning and of China
teaching and research field: Mobility Development Sustainable
cooperation systems Cities Pro-
gram, World
Resources
“In the future, more and more peo- Institute
ple will live in densely populated
areas. Negative impacts between
mobility and settlement areas can
only be reduced with integrated
concepts. Traffic planners, vehicle
manufacturers, urban planners, “Technology allows people to occupy
“With regard to the digitalization of ser- technicians and sociologists must more space. Only six percent of all cars
vices and processes, blockchain technolo- work together. Digitalization creates are actually driving at any given time,
gy is of great relevance for many areas of opportunities to customize apart- which means that most of them are
application outside the financial sector, ments, mobility offers or transporta- standing around. We could use 80 per-
above all independent of cryptocurrencies. tion to the needs of different target cent of the available parking space for
In production, but also in administration, groups and to implement them in a other purposes. Car sharing, autono-
there are applications that can benefit cost-effective manner.” mous driving and electrification are all
from using blockchains for the secure and very important.”
Excerpt from the presentation “Drive+:
reliable management of transactions, as- The diversity of the mobile future” (February Daizong Liu, Director of China Sustainable
sets or documents in a network.” 2019, Audi Forum Neckarsulm) Cities Program, World Resources Institute
Excerpt from the presentation “Blockchain

technology: principles, application examples
and recommendations for use” (February 2019,
Audi Conference Center Ingolstadt) Networked world: Audi and One Young World Summit
In 2019, AUDI AG again each summit, Audi from the Audi Environ-
sent ten young employ- supports its employees mental Foundation,
ees from its worldwide in implementing their which is awarded jointly
“If it is unclear who contributed how much to a locations to the One ideas. Social commit- with One Young World.
team task, the share contributed by the men is Young World Summit ment of this kind is Through this sponsor-
often overestimated and that of the women un- as delegates. At the important to Audi. ship, the foundation
derestimated. This is especially true where there is Summit, this time in That is why the Audi aims to create a network
no clear information on what each individual has London, they had the Environmental Foun- between business, sci-
Professor contributed. How do we overcome this attribution opportunity to network dation also sponsors ence and young thinkers
Gudrun Sander bias? By creating and demanding transparency.” with like-minded peo- 15 other young people and thereby promote
Director of the Compe-
ple, experts and men- from all over the world. an active transfer of
tence Centre for Diversity Excerpt from the presentation “The treasure trove diversity:
& Inclusion, University new challenges and opportunities for managers” (December tors to find solutions to Students were able to knowledge and ideas for
of St. Gallen 2019, Audi Conference Center Ingolstadt) social problems. After apply for a scholarship a sustainable future.

Professor Sabine Audi Environmental Foundation: 10 years of commitment

Pfeiffer
Friedrich-Alex- Audi Stiftung für Umwelt – the Audi animals and plants to promoting raise awareness, part of the col-
ander University Environmental Foundation – is an the use of new technologies for the lected waste is recycled and used
Erlangen-Nurem-
active supporter of research in new environment. The latter is based to produce eye-catching benches
berg, Chair of
Sociology, with technologies and scientific methods on the guiding principle of “green- by means of innovative 3D printing
a focus on tech- for a livable future. Its aim is to con- ovation.” The idea behind this technology.
nology, work and tribute to and raise awareness of en- concept is to combine traditional Naturally, the Audi Environmen-
society
vironmental protection and to inspire environmental protection with new tal Foundation also pursued many
sustainable conduct. technologies in key projects and to other projects in 2019, such as
The Audi Environmental Foun- use the knowledge gained to make promoting young scientists by es-
dation therefore focuses on the a valuable contribution to society tablishing the SRM Award together
“No one can say at the moment what tomorrow promotion and development of (open source). with the Technical University of Mu-
will be like. The more important question is: What innovative, environmentally com- The 2019 reporting year saw nu- nich. It also inspired Audi employ-
do we need to design today and how do we want patible technologies as well as merous successful projects here: ees to take part in environmental
the digital working world to look? This question measures for environmental educa- In terms of technology, the Clear campaigns themselves – for exam-
is not decided in Silicon Valley, but in companies tion and the protection of the nat- Rivers project stands out in particu- ple, with its “Mach Mit!” program
and at the workplace.” ural resources of humans, animals lar. Working with Audi Brussels and or its plogging events. Plogging is
and plants. AUDI AG established the Port of Brussels, in March 2019 a fitness and environmental trend
Excerpt from the presentation “The digital transformation: the foundation as a wholly owned the Audi Environmental Foundation from Sweden that combines jog-
Who is actually implementing it?” (October 2019, Audi subsidiary in 2009 with a view to and its project partner developed ging with picking up garbage (ploc-
Conference Center Ingolstadt)
strengthening its social and envi- and installed a special plastic col- ka upp in Swedish).
ronmental commitment. lecting basin. Referred to as a litter
The Audi Environmental Foun- trap, it ensures that plastic does
dation’s commitment is multifac- not find its way into the open sea
eted and of a long-term nature. through the canal. The project part-
More information about the foundation’s
It ranges from efforts to preserve ners then use the collected waste projects and initiatives can be found on the
the natural resources of humans, for an innovative, new purpose. To Internet: www.audi-umweltstiftung.de
“Renewable energy generated
by wind, sun or water is virtu-
ally emissions-free during its
Clear Rivers project
use and also has a low level of in cooperation with
emissions over its life cycle. the Audi Environ-
It’s therefore the best tool for mental Foundation:
Professor Detlef Stolten The floating plastic
making both the energy and RWTH Aachen University, islands in Brussels
transport sectors clean.” Institute of Energy and Climate are an environ-
Research – Techno-economic mental protection
Excerpt from the presentation “How do Systems Analysis (IEK-3) measure.
clean drives and renewable power gen- The collected
eration fit together?” (September 2019, waste is used to
Audi Forum Neckarsulm) produce benches.

Local commitment
San José Chiapa
Győr Mexico
Responsibility means showing commitment. And Audi’s Hungary AUDI MÉXICO
Audi Hungaria Zrt. S.A. de C.V.
employees do so even outside their working hours. With a
large number of corporate citizenship projects, they help
shape the company’s locations worldwide. Here is a small
selection from 2019:
Audi Hungaria Audi México
TED x Győr TED talks are inspiring, in- Audi Habita Is learning to act sustainably easy? Yes, it is –
structive and entertaining. TED stands especially when you do it in a playful way. The Audi Habita
for Technology, Entertainment & Design. project in Mexico proves this. At its production location
How does Audi decide which direction its commitment takes? Originally, the term referred to creative in San José Chiapa, Audi actively promotes a sustainable
Every Group site has its own identity and its own require- conferences in California, where thought future. Specifically, children from the surrounding area
ments. Local corporate citizenship can therefore have various leaders, entrepreneurs, activists and artists learn in simple ways how important it is to treat nature in
different focal points. Audi has defined global principles for presented their projects and ideas in just a a sustainable manner. On two project days, 30 students
corporate citizenship as an orientation guide. Intended as few minutes. At the TED x Győr event spon- find out what it takes to make the production of cars
long-term parameters, they help with the selection and de- sored by Audi, the audience was particularly sustainable. For example, they use magnifying glasses to
velopment of targeted location development measures and interested in one expert: Dr. Hanula Barna, examine the water from the production site’s water puri-
clarify the common understanding that runs like a common who heads the Audi Hungaria Faculty of Au- fication system. There the kids discover microorganisms
thread through the various measures at the locations. tomotive Engineering at Széchenyi István that enable Audi to save 100,000 cubic meters of waste-
University and who spoke about energy and water each year.
Local activities at the sites are designed to promote the resources.
development of the respective region and enhance its attrac-
tiveness for businesses, employees and society. Audi stands
up for the disadvantaged and supports mobility projects as Corporate citizenship spending [210] [211] at Audi
well as activities that contribute to the education and train- (in EUR million)
ing of children, adolescents and adults. In the area of tech-
nology, Audi backs projects that allow the company to put its
know-how to good use. 20.6
Equally, Audi employees frequently demonstrate solidarity in

various campaigns and calls to raise funds: In the year under 17.5
review, the Christmas appeal and the “Last Cents” campaign 16.5
at the sites in Ingolstadt and Neckarsulm raised an amount of
around EUR 1.297 million (2018: EUR 1.284 million)[209] [211]. 2017 2018 2019

Audi of
America Neckarsulm
Germany
Ingolstadt
Germany
America SCORES Do soccer and AUDI AG
AUDI AG
poetry go together? Yes, quite
well, actually! And the organization
America SCORES proved this in
2019 thanks to support from Audi.
This non-profit organization works
Audi in
with public schools in low-income
communities and offers extracur-
Ingolstadt
ricular activities for elementary and Team Activities & Volunteer Day Audi Team Activities,
junior high school students. The which are part of Audi Volunteers, saw employees in In-
students not only play soccer, they golstadt and Neckarsulm supporting charitable institu-
also play with words, writing their tions throughout 2019. The employees were also encour-
own poems that they then perform aged by Audi in their endeavors. The aim is to promote the
at poetry slams. America SCORES is welfare of children, senior citizens, people with disabili-
helping more than 13,000 students ties and all those who need support, whether in small or
from 311 schools in 12 cities. About large ways. A positive side effect: Team Activities simulta-
85% of the participants live at or neously offer an excellent opportunity for team-building
below the poverty line. and strengthen the team spirit. Audi Volunteer Day in May
2019 was also a success: More than 300 Audi employees
volunteered to help out at 42 social institutions.
Herndon, Virginia
Audi in Neckarsulm
USA Doing good on the go What is plogging? An envi-
ronmental fitness trend from Sweden that combines
jogging and collecting garbage. The term plogging is
made up of the Swedish verb for picking something
up (plocka) and jogging.
In 2019, the Audi Environmental Foundation
brought the trend activity to Neckarsulm and invit-
ed employees and residents of the city to take part
Committed Audi employees helped out at a home for the elderly in plogging. The aim of the initiative was to raise
during the 2019 Volunteer Day awareness for environmental protection.

Audi China Sant’Agata Bolognese

Italy
Spring Bud project In 2019, FAW-VW Audi Automobili Lamborghini
entered into a strategic cooperation with Bologna
the China Children and Teenager Fund Italy
Moncalieri Ducati Motor Holding
(CCTF) to support several social projects. Italy
The best-known is a project called Spring Italdesign
Giugiaro
Bud, which was launched as early as 1989
by the All China Women’s Federation
(ACWF) with the aim of promoting women
and helping female school drop-outs return
to the educational system more easily.
However, this is not the only welfare project
of the CCTF: The organization also strives
to improve teaching conditions in poverty-
stricken areas as well as the health condi-
tions of children and adolescents in general.
One of the organization’s highlights is the
Spring Bud Dream Camp, which gives young
people the opportunity to delve into re-
Audi in Italy
search and new technologies. KiSS program Ducati continued its KiSS program in
The figures are impressive: In the 30 2019. KiSS stands for “Keep it Shiny and Sustainable.” Girlstech At Italdesign, the daughters of employ-
years of its existence, the organization has The aim of the program is to raise public awareness of ees were given the opportunity to explore the
supported more than 3.6 million girls and the importance of sustainable conduct at major sporting working world of the automotive industry. The
young women as well as over 1,800 schools. events such as the MotoGP championship as well as in goal was to increase the number of women inter-
our day-to-day lives. ested in the subjects of mathematics, IT, science
and technology.
Changchun Car pooling Employees at Lamborghini not

China
FAW-Volkswagen only work together well, they also often travel
to work together. Thanks to a corporate car
pool service, the company is able to save car-
bon dioxide even on the way to work. Another
Foshan
China
advantage is that employees are less stressed
FAW-Volkswagen by the journey to work.

Employees and Society (Table 1 of 3)

The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four core topics
“Operations and Integrity,” “Products and Services,” “Value Creation and Production” as well as “Employees and Society.”

Make working hours and place of work more flexible Establishment of mobile working Continuous
development
Updating of methodology and content Extension of digital learning methods 2025

of vocational and advanced training
Modification of content of vocational and advanced training in 2025

relation to strategic future-oriented topics
Maintaining vocational training figures and advanced training 2020

days at a high level (three-year forecast)
Promote employee health Further development of occupational health & safety 2020
at international sites
Setup of digital offerings as part of company health promotion 2022
Promote equal opportunity Increase in the proportion of women in the first management 2021
tier below the Board of Management to 8 percent and to 16
percent in the second management tier
Strengthen cultural diversity Expansion of the proportion of international managers within 2025
AUDI AG, global employee rotation, international young talent
programs, intercultural awareness and training


Promote work-life balance Expansion of childcare Continuous
development
Focus on the issue of care as part of employee information events Continuous

development
Expansion and development of urban services: offerings Continuous

and services for daily requirements at the interface between development
home and work at the Ingolstadt and Neckarsulm sites
Promotion of employee mobility by strengthening Continuous

the provision of job tickets and promoting carpooling development
Further develop voluntary programs Needs survey through annual events/formats at the Audi sites Continuous
development
Promote a corporate culture along the lines of the Group-wide introduction of a role-model program for managers 2019
Volkswagen Group Essentials, the Audi corporate values and supervisors (completed)
and the Code of Cooperation
Rollout and establishment of the Volkswagen Group Essentials 2019

(completed)
Establishment of the team dialogues and the principle indicator 2019

to publicize the Volkswagen Group Essentials and to measure the (completed)
culture progress


Increase employer attractiveness Initiation and promotion of future-oriented events with the Continuous
focus on corporate citizenship/innovation (e.g. MQ! Innovation development
Summit or One Young World Summit)
Provide access to education for the public Public “Wissenschaft im Dialog” (Academia in Dialogue) events Continuous
at the Ingolstadt & Neckarsulm sites development
Further develop research and teaching Support of universities through endowed professorships Continuous
in future-oriented fields at universities development
Promote mental health Stage I: Increase in transparency and communication 2019

through a destigmatization campaign (completed)
Stages II & III: Expansion of support services and 2023

establishment of a physical and mental health network
and holistic care structures
Promote flexible cooperation within the Creation and establishment of new cooperation formats, Continuous
company such as: agile process workshop, think tank in Berlin development
Digitalize HR processes Launch and establishment of an HR app to make it even 2020

easier for employees to access personal data (e.g., working
hours, calendar, wages, etc.)
Extend attractive working conditions Implementation of the extended wage agreement (T-ZUG) 2020
with a choice between having the additional wages paid out
or converted to paid leave

Appendix
About the report
AUDI AG has published the Sustainability Report since 2012. The Audi Sustainability Report
is published every two years at the time of the Annual General Meeting of AUDI AG. In the
intervening years, an update on the key figures and the sustainability program is published.
This report is a complete sustainability report covering the fiscal year 2019 (January 1,
2019 through December 31, 2019). The information in the report refers to the Audi Group.
If the report refers to individual companies, sites or brands only, this is noted accordingly.
Unless indicated otherwise, employment figures are as of the end of the respective year.
Since the Annual General Meeting is being postponed in 2020, this report is being pub-
lished in advance as an exception so that information on the 2019 reporting year can be
made public in a timely manner.
The report appears in German and English, and was released by the full Board of Man-
agement. It was prepared in accordance with the “core” option of the GRI standard of the
Global Reporting Initiative and confirmed by the organization with the GRI Materiality Dis-
closures Service. Audi conducted a comprehensive materiality analysis in 2019 to identify
material topics.
The editorial deadline was April 30, 2020.
GRI 102-48, 102-49


Audi Sustainability Key Figures

Audi uses key figures to make its sustainability activities measurable and present
them in a transparent way. The key figures are valid for the relevant calendar year PRODUCTS AND SERVICES
and refer to the Audi Group. If key figures refer to individual Audi Group companies
only, this is specified accordingly. Key figures are rounded up or down, which may PRODUCTION Unit 2017 2018 2019
result in slight deviations from the totals stated. Key figures which have been
Automotive segment Cars [103] 1,879,840 1,871,386 1,802,073
audited by an independent auditing firm are identified by the “ ” symbol.
Engines and 1,966,434 1,955,532 1,969,731
electrical drives
The Independent Practitioner’s Report can be found on pages 116 and 117.
Motorcycles segment Motorcycles 56,743 53,320 51,723
= Key figure for 2019 adopted from the audited 2019 Combined Management (Ducati brand)
Report of the Audi Group and AUDI AG
Key figures 2019 and management approaches verified as part of the assurance
engagement on selected disclosures in the Audi Sustainability Report 2019 DELIVERIES TO CUSTOMERS Unit 2017 2018 2019
Automotive segment [104] [105] Cars 2,105,084 2,081,418 1,853,833

OPERATIONS AND INTEGRITY Audi brand [104] Cars 1,878,105 1,812,485 1,845,573
Unit 2017 2018 2019 Germany Cars 294,544 260,456 271,613
Revenue [100] EUR million 59,789 59,248 55,680 Outside Germany Cars 1,583,561 1,552,029 1,573,964
Operating profit EUR million 4,671 3,529 4,509 Lamborghini brand Cars 3,815 5,750 8,205
Profit before tax EUR million 4,717 4,361 5,223 Other Volkswagen Group Cars 223,164 263,183 55
brands [105]
Profit after tax EUR million 3,432 3,463 3,943 Motorcycles segment Motorcycles 55,871 53,004 53,183
Total capital investments EUR million 5,235 5,552 4,223 (Ducati brand)
Research and development activities EUR million 3,809 4,178 4,426
Operating return on sales [100] Percent 7.8 6.0 8.1 PRODUCT-RELATED

CO₂ EMISSIONS Unit 2017 2018 2019
Return on investment [100]
Percent 14.4 10.0 12.7
CO₂ emissions of the European fleet g CO₂/km 127 129 131
Ratio of capex [100] [101] Percent 6.5 [118] 5.9 4.9 (EU 30) [105]
Net cash flow [100] EUR million 4,312 [102] 2,141 3,160 Fleet consumption, China (FBU) l/100 km 7.6 7.5 5.9

VALUE CREATION AND PRODUCTION [106]
ENERGY Unit 2017 2018 2019 FUELS Unit 2017 2018 2019
Total energy consumption [107] MWh 2,920,739 2,775,442 2,677,678 Total fuel use MWh 1,202,130 1,092,974 1,066,205
Automotive segment MWh 2,897,174 2,751,234 2,654,047 Automotive segment MWh 1,169,738 1,059,128 1,033,019
(incl. components) (incl. components) MWh/Veh. 1.07 1.03 1.04
MWh/Veh. 2.65 2.69 2.67
From renewable energy sources MWh 999,572 1,142,833 1,312,213 Natural gas MWh 1,051,055 961,486 946,095
Automotive segment MWh 998,756 1,140,530 1,310,019 Automotive segment MWh 1,020,819 929,858 914,967
(incl. components) (incl. components)
MWh/Veh. 0.91 1.11 1.32 MWh/Veh. 0.93 0.91 0.92
Electricity MWh 1,686,041 1,666,649 1,577,679 Heating oil MWh 11,438 8,782 6,813
MWh 1,670,431 1,650,932 1,562,156 MWh 11,438 8,782 6,813

Automotive segment Automotive segment
(incl. components) MWh/Veh. 1.53 1.61 1.57 (incl. components) MWh/Veh. 0.010 0.009 0.007
Heating (incl. district heating) MWh 874,115 779,967 784,791 Diesel (test rigs) MWh 39,540 30,753 24,472
Automotive segment MWh 866,160 771,475 776,683 Automotive segment MWh 39,540 30,753 24,472
(incl. components) MWh/Veh. 0.79 0.75 0.78 (incl. components) MWh/Veh. 0.04 0.03 0.02
of which district heating MWh 364,612 340,474 351,292 Gasoline (test rigs) MWh 100,097 91,953 88,825
Automotive segment MWh 364,409 340,158 350,820 Automotive segment MWh 97,941 89,736 86,769
(incl. components) (incl. components) MWh/Veh. 0.09 0.09 0.09
MWh/Veh. 0.33 0.33 0.35
Combustion gases for production MWh 360,252 328,345 314,894

processes
Automotive segment MWh 360,252 328,345 314,894

(incl. components) MWh/Veh. 0.33 0.32 0.32
Refrigeration (externally sourced) MWh 331 482 314
Automotive segment MWh 331 482 314

(incl. components) MWh/Veh. 0.0003 0.0005 0.0003

EMISSIONS Unit 2017 2018 2019 WATER Unit 2017 2018 2019
Total CO₂ emitted t 727,294 619,140 572,804 Total freshwater consumption m³ 4,207,671 4,159,236 3,428,952
t 722,459 615,009 568,792
Automotive segment Automotive segment m³ 4,133,952 4,091,377 3,360,283
(incl. components) kg/Veh. 660.08 600.57 572.99 (incl. components) m³/Veh. 3.78 4.00 3.39
Direct CO₂ emissions [108] t 246,276 202,031 198,418
Freshwater consumption m³ 2,557,949 2,609,368 2,057,909
t 242,997 198,564 195,097 internal catchment
Automotive segment
(incl. components) kg/Veh. 222.02 193.90 196.54 m³ 2,510,020 2,566,473 2,014,522
Automotive segment
Indirect CO₂ emissions t 481,018 417,110 374,386 (incl. components)
m³/Veh. 2.29 2.51 2.03
t 479,463 416,444 373,695 Rainwater used
Automotive segment m³ 337,343 394,041 165,207
(incl. components) kg/Veh. 438.07 406.66 376.45
Surface water from lakes, m³ 663,879 722,499 611,311
VOC emissions [109] t 1,425 [119] 1,081 916 rivers, oceans
t 1,425 [119] 1,081 913 Groundwater m³ 1,508,798 1,449,933 1,238,004
Automotive segment
(incl. components) kg/Veh. 1.30 [119] 1.06 0.92 Freshwater consumption, externally m³ 1,649,722 1,549,868 1,371,043
sourced
Direct NOx emissions [110] t 235 202 191
Automotive segment m³ 1,623,932 1,524,904 1,345,761
t 232 195 186 (incl. components)
Automotive segment m³/Veh. 1.48 1.49 1.36
Sulfur dioxide t 1.93 2.14 2.06
t 1.90 2.14 2.06
Automotive segment
Total dust t 37 58 41
t 37 58 41
Automotive segment
t CO₂ e 13,571 13,712 13,525
CO₂ reductions in logistics [111]

WASTEWATER Unit 2017 2018 2019 WASTE Unit 2017 2018 2019
Total volume of waste (excluding scrap) t 109,965 [119]
107,079 107,389
Volume of wastewater m³ 2,258,579 2,382,498 1,866,952
Automotive segment t 108,585 105,785 106,142
Automotive segment m³ 2,235,597 2,357,551 1,842,494 (incl. components) kg/Veh. 99.21 103.30 106.93
(incl. components) m³/Veh. 2.04 2.30 1.86 t 99,192 [119]
99,674 103,606
Recyclable waste
Direct discharge [112] m³ 4,193 11,228 18,529
Indirect discharge [112]
m³ 2,231,404 2,346,324 1,823,965 Other recyclable waste t 57,022 56,538 57,160
Hazardous recyclable waste t 35,758 [119]
37,553 40,683
WASTEWATER LOAD [112] Unit 2017 2018 2019 (incl. components) kg/Veh. 32.65 36.62 40.93
Chemical oxygen demand kg 634,543 617,759 241,286 Non-production-specific t 6,413 5,583 5,763
recyclable waste
Total phosphorous content kg 5,631 3,493 1,533 t
Automotive segment 6,364 5,544 5,722
as phosphorous (P)
Total nitrogen as nitrogen (N) kg 35,104 36,026 16,175 t
Disposable waste 10,773 [119] 7,405 3,784
Zinc kg 853 284 107 Automotive segment t 10,715 7,306 3,691
Other disposable waste t 257 289 413
Automotive segment t 233 244 381
Hazardous disposable waste t 10,001 [119] 6,116 3,182
Non-production-specific t 516 1,000 189
disposable waste
Automotive segment t 505 999 189
Metallic waste t 363,643 345,827 320,841
(scrap; completely recyclable)

EMPLOYEES AND SOCIETY AGE STRUCTURE [203] [204] Unit 2017 2018 2019
WORKFORCE Unit 2017 2018 2019 < 30 years Percent 17.3 15.7 14.3
Audi Group workforce [201]

Total 90,402 91,477 90,783 30 to 50 years Percent 54.9 54.9 55.1
Domestic companies [201] Total 59,448 59,754 60,083 30 to 50 years Percent 27.8 29.4 30.6
of which AUDI AG Total 58,493 58,813 58,940
Ingolstadt plant Total 42,498 42,784 42,904 PROPORTION OF WOMEN Unit 2017 2018 2019
Neckarsulm plant Total 15,995 16,029 16,036 Audi Group [203] Percent 14.6 14.9 15
Foreign companies [201] Total 27,904 28,702 27,669 AUDI AG Percent 15.2 15.4 15.6
Total 2,656 2,768 2,922 of which apprentices Percent 29.1 27.2 25.5
Audi Brussels S.A./N.V.
Total 11,888 12,825 13,079 of which industrial apprentices Percent 26.3 24.2 22.3
Audi Hungaria Zrt. [202]
Total 6,211 5,682 5,268 of which clerical apprentices Percent 80.6 81.1 80.6
Audi México S.A. de C.V.
Management [212] Percent 10.1 10.9 11.9
Automobili Lamborghini S.p.A. Total 1,465 1,643 1,788
Audi Brussels S.A./N.V. Percent 6.5 6.7 6.9
Ducati Motor Holding S.p.A. Total 1,240 1,278 1,290
Audi Hungaria Zrt. Percent 12.3 12.8 13
Apprentices [201] Total 2,618 2,582 2,585
Audi México S.A. de C.V. Percent 13.3 13.8 14.2
Automobili Lamborghini S.p.A. Percent 20.3 20.2 20.5
Ducati Motor Holding S.p.A. Percent 18.3 18.4 19
Temporary workforce, Audi Group Total 3,395 2,527 1,957
Average Years 17.0 17.5 17.9
length of service [203] [204]
Turnover rate [203] [204] Percent 0.8 0.9 0.7
AVERAGE TRAINING TIME PER EMPLOYEE [214]
New hires, Audi Group Total 6,125 5,004 4,214 Unit 2017 2018 2019
New hires, AUDI AG Total 1,445 1,628 1,310 Training time, total Hours 16.2 13.7 13
Average age [203] [213] Years 40.8 41.2 41.5 Production employees Hours 11.1 8.6 8.3
Share of production employees Percent 48.9 48.4 48.5 Non-production employees Hours 21.2 18.2 16.7
Share of production employees Percent 48.0 48.6 48.5 Employees in management positions Hours 19.3 21.1 23.8

OTHER STRUCTURAL DATA 2017 2018 2019

Fully electric vehicle
[1]
Attendance rate [203] [204] [205]

Percent 95.5 95.2 95.3 Plug-in hybrid drive
[2]
Production locations 2019: as at Jan. 30, 2020

[3]
Frequency of accidents [204] [206] - 5.0 5.6 6.2 [4]

The basis for determining and selecting stakeholders is the Stakeholder Engage-
Proportion of academics [204] [207] Percent 49.9 50.9 51.4 ment Standard AccountAbility 1000 (AA1000SES) and its associated principles of
inclusivity, materiality and responsiveness.
Proportion of foreign nationals [204] Percent 8.4 8.4 8.3 [5]
Planned for fall 2019, implemented at the start of 2020
Adjustment of the target range of 6.5 to 7.0 percent to 5.0 to 6.0 percent due
[6]
Proportion of people with Percent 6.1 6.5 6.7 to the relocation of R&D volumes to the Car.SW Org. and further use of Group
severe disabilities [203] [204]
synergies.
Contracts to workshops for people EUR million 7.0 7.9 7.3 Adjustment of the target range from 5.5 to 6.0 percent to 5.0 to 6.0 percent due
[7]
with mental disabilities [204] to optimization of the ratio of capex.

Adjustment of the measure due to an additional shift in demand towards PHEV.
[8]
European market
[9]
[10]
Deadline corrected from 2019 to 2020 due to a development delay.
Unit 2017 2018 2019 [11]
Specification of the deadline for the implementation of the 10%. However, ex-
pansion remains an ongoing and needs-based measure.
Audi profit share EUR 4,770 3,630 3,880 [12]
The planned expansion for 2019 was implemented. Adjustment of the target
per employee [208] deadline to completion of the entire measure.
Employee donations [209] [211] EUR 1,270,189 1,283,502 1,296,507 [13]
Introduction of a homologated small-series vehicle stopped due to changed
planning assumptions; however, further development of fuel cell technology
Expenditure on corporate EUR million 20.6 16.5 17.5
(module/tank development/production technology).
citizenship [210] [211] [14]
Deadline corrected from 2025 to 2026 due to changed planning assumptions in
Part-time employees [204] Total 3,703 3,924 4,448 the Group
Total 3,117 3,439 3,753
[15]
The market introduction of synthetic liquid fuels by AUDI AG is currently suspend-
Employees on parental leave [204]
ed owing to a change in strategic direction.
Number of female employees Total 1,107 1,229 1,448 [16]
Deadline corrected from 2019 to 2021 due to reprioritization of technological
on parental leave [204] supplementary measures at the PtG plant in Werlte
Number of male employees Total 2,010 2,210 2,305 [17]
Deadline corrected: The measure “Development and advancement of synthet-
on parental leave [204] ic liquid fuels under the Audi e-fuels umbrella brand (e-diesel, e-gasoline and
Average duration of Duration 9 9 9 e-ethanol)” from the 2018 sustainability report was amended due to a change in
parental leave [204] strategic direction.
2019 values influenced by the deconsolidation of multibrand sales companies

[100]
as at January 1, 2019. Further information on this is included in the Financial

AUDI IDEAS PROGRAM [204]
Unit 2017 2018 2019
Report, e.g. on page 36 f.
Savings EUR million 108.6 109.1 101.3 The ratio of capex includes investments in property, plant and equipment, invest-
[101]
ment property and other intangible assets according to the Cash Flow Statement
Implementation quota Percent 54.9 55.5 54.4
in relation to revenue.

[102]
Net cash flow taking into account the transfer of the minority interest in The measure “Analyze CO₂ emissions in the supply chain and derive potential
[114]
Volkswagen Group Services S.A., Brussels (Belgium), to Volkswagen AG, measures for their reduction” from the 2018 sustainability report was defined in
Wolfsburg, in 2017 more detail for the 2019 program and thus cannot be found under this name. The
[103]
This includes Audi models built locally by the associated company planned measures for 2019 were implemented.
FAW-Volkswagen Automotive Company, Ltd., Changchun (China). Percentage decline from 40 to 30 percent due to change in the reference value (in-
[115]
[104]
This includes delivered vehicles built locally by the associated company crease in freshwater requirements at the Ingolstadt site)
FAW-Volkswagen Automotive Company, Ltd., Changchun (China). The energy intensity indicated refers to automotive production (incl. component
[116]
[105]
The deconsolidation of the multibrand sales companies took place as at manufacturing). This is calculated by dividing the overall energy consumption of the
January 1, 2019. Further information on this is provided in the Financial car and component plants by the number of cars built at the sites.
Report on page 8. ISO 14001: Neckarsulm, Győr, Brussels, San José Chiapa, Sant’Agata Bolognese,
[117]
[106]
Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Bologna and São José dos Pinhais sites; ISO 50001: Ingolstadt, Neckarsulm, Győr,
Győr, San José Chiapa (since 2016), Sant’Agata Bolognese (Lamborghini), Brussels, San José Chiapa, and Sant’Agata Bolognese sites.
Bologna (Ducati), Amphur Pluakdaeng (Ducati) (since 2017) sites. Only The prior-year figures of certain key financial figures have been adjusted to reflect
[118]
car-producing sites including component manufacturing are considered for the first-time adoption of IFRS 9 and IFRS 15 (see also the disclosures on IFRS 9
the specific key figures. The environmental key figures for the respective and IFRS 15 in the Notes to Consolidated Financial Statements)
current year are provisional data, which are replaced by the final result in Changes to figures for 2017 result from retroactive adjustments in 2019, which
[119]
the following year. In this report, the provisional figures for 2018 were were due to modified year-end figures
updated with the relevant figures as of year-end 2018.
[107]
Total energy consumption: This figure is made up of electricity and heat
consumption as well as the use of fuel gases for production processes and
externally supplied refrigeration at the plant.
[108]
Direct CO₂ emissions: This figure is made up of CO₂ emissions generated by [201]
nnual average figure.
A
the use of fuel at the plant and CO₂ emissions produced by the operation of [202]
With effect from January 1, 2017, the fully consolidated Audi Hungaria Motor Kft.,
test rigs. Győr (Hungary), was merged with the fully consolidated Audi Hungaria Services Zrt.,
[109]
VOC emissions (volatile organic compounds): This figure is made up of Győr, and renamed Audi Hungaria Zrt., Győr.
emissions from the paint shops, test rigs and other facilities. Excluding apprentices
[203]
[110]
Direct NOx emissions: This figure is made up of NOx emissions caused by AUDI AG
[204]
the boiler houses at the plant, by paint shops and by the operation of test The attendance rate is calculated using the formula 100 − (sick days/payment-rele-
[205]
rigs. vant days) x 100.

Transportation of vehicles from Ingolstadt to Emden, the port of loading on
[111]
The accident frequency figure indicates how many industrial accidents involving one or
[206]
the North Sea coast; since October 2012, also from Neckarsulm; since 2015, more days’ work lost occur per million hours worked.
the figure is given in t CO₂e. Since July 2017, rail transport in Germany has With respect to non-production employees
[207]
been handled by DB Schenker entirely CO₂-neutrally: All shipments from [208]

Payment in the following year; until 2016, figure for a specific reference skilled work-
and to the German production locations Ingolstadt and Neckarsulm oper- er; as of 2017, average figure for a skilled worker at AUDI AG
ated by DB Schenker are CO₂-free. [209]
AUDI AG Christmas donation and “Last Cents” campaign
[112]
Direct dischargers: Münchsmünster, San José Chiapa sites; indirect Includes expenditure in the fiscal year in the areas of education, science, foundations;
[210]
dischargers: Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, including donations; not including sponsorship and research
Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Amphur Pluak- [211]
Included respectively in the year 2019: Company top-up to the Christmas donation
daeng (Ducati) sites (since 2017) EUR 257,984.00
[113]
The measure “Successive decarbonization of the supply chain together with [212]
Excluding leave on partial retirement phase
suppliers” from the 2018 sustainability report was defined as a target for Excluding fixed-term employees
[213]
the 2019 program and supplemented by additional measures. With respect to non-production employees
[214]

Fuel consumption and emission figures Model Combined fuel consumption Combined CO2 emissions
[l/100 km] [g/km]
As at: January 2020 (All data apply to features of the German market.)
Audi e-tron Current consumption 0–0
24.3–21.0 kWh/100km
Model Combined fuel consumption Combined CO2 emissions Audi e-tron Sportback Current consumption 0–0
[l/100 km] [g/km] 23.9–20.6 kWh/100km
Audi A1 Sportback 6.0–4.7 137–107 Audi Q7 9.1–6.6 208–64
Audi A1 citycarver 5.5–5.1 124–117 Audi Q8 9.1–6.5 208–172
Audi Q2 6.7–4.4 153–115 Audi A8 8.3–5.7 190–57
Audi Q3 7.6–4.7 174–124 Audi A8 L 8.3–5.8 190–57
Audi Q3 Sportback 7.7–4.7 174–123 Audi R8 Coupé 13.1–12.9 298–293
Audi A3 Sportback 6.6–3.5 149–43 Audi R8 Spyder 13.3–13.0 302– 297
Audi A3 Sedan 6.5–4.2 148–109
Audi A3 Cabriolet 6.8–5.2 155–119
Audi TT Coupé 7.0–6.0 161–137 The specified fuel consumption and emissions data have been determined according to the mea-
surement procedures prescribed by law. Since September 1, 2017, certain new vehicles are already
Audi TT Roadster 7.3–6.3 166–143 being type-approved according to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP),
a more realistic test procedure for measuring fuel consumption and CO2 emissions. Starting on
Audi A4 Sedan 6.7–3.7 157–98
September 1, 2018, the New European Driving Cycle (NEDC) will be replaced by the WLTP in stages.
Audi A4 Avant 6.8–3.8 160–100 Owing to the more realistic test conditions, the fuel consumption and CO₂ emissions measured ac-
cording to the WLTP will, in many cases, be higher than those measured according to the NEDC. For
Audi A4 allroad quattro 6.8–5.0 164–132 further information on the differences between the WLTP and NEDC, please visit www. audi.de/wltp.
We are currently still required by law to state the NEDC figures. In the case of new vehicles which
A5 Sportback 6.8–3.7 158–98 have been type-approved according to the WLTP, the NEDC figures are derived from the WLTP data.
It is possible to specify the WLTP figures voluntarily in addition until such time as this is required by
Audi A5 Coupé 6.7–3.7 158–98 law. In cases where the NEDC figures are specified as value ranges, these do not refer to a particu-
lar individual vehicle and do not constitute part of the sales offering. They are intended exclusively
Audi A5 Cabriolet 7.0–4.0 163–106 as a means of comparison between different vehicle types. Additional equipment and accessories
(e.g. add-on parts, different tire formats, etc.) may change the relevant vehicle parameters, such as
Audi Q5 7.5–4.4 172–46 weight, rolling resistance and aerodynamics, and, in conjunction with weather and traffic conditions
and individual driving style, may affect fuel consumption, electric power consumption, CO₂ emis-
Audi A6 Sedan 7.4–4.0 170–39 sions and the performance figures for the vehicle.
Audi A6 Avant 7.6–4.1 174–108 Further information on official fuel consumption figures and the official specific CO₂ emissions
of new passenger cars can be found in the “Guide on the fuel economy, CO₂ emissions and power
Audi A6 allroad quattro 7.6–5.8 174–152
consumption of all new passenger cars models,” which is available free of charge at all sales deal-
Audi A7 Sportback 7.5–4.4 172–40 erships, from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Str. 1, 73760 Ostfildern,
Germany and at www.dat.de.


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tive drogen cars. The most important key
Pro &
gy
for sustainability. Top topics Alterna logies
rific
techno parameters.
nab
from
Ser
ra
the materiality drive
ate
a
(corpo
ducts
analysis
tion o
vices
Str
basis for s
CONSISTENTLY
Governance
fensive)
for
Integrated and
resources and
life cycle assessment
well thought out
Em
Soc ne fo
O
pl tion
ial
oy
(So us is
So & ee ea environmental footprint arises.
c
cia on
e Cr& on
ty,
rtuni
ciet s The most important facts about
lc
s)
l oppon and Circu
t
lu
rit rain
ti the complex analyses.
an
lar
Equa ratio
y
er
econ
Va
pl
uc
When every little contribution makes
t
ia ing
integ sity omy
n/
od
be
io
diver m Em
co
ct
an e
d av Pr ro
du
in
ene iss
ion
de al lp rgy
ve ue d tra the
ma s and
lo eu
pm river Viable
h
₂-n fac nag
alt
Audi embraces diversity ent for A
nt (
CO tor
he
.) udi. em
me y
value creation
l)
Environ
ety onal
ent
ria
ate
saf ati
Sustainrds in the
standa chain
an cup
supply
ym
a difference, then Audi’s responsibil-
ng condi-
Oc
d
ar
ng forms rn
nd
bon-neutral premium provid-
worki and mode
ability
co
se
worki
of
He
se
al
(u
(n
t
y
tions
itr
Less is
Fair
m
og no
en co
ox re more
id la
cu
ity in matters of sustainability is im-

e s,
pa ci r
r tic r ce
er, Audi is optimizing all parts

u u environmental aspects of its
lat so
United for e ma
tte on
of
ati
your health r, n
o ise)
Con
s er v
work – with the vision of build-
Co
m
mense. Hildegard Wortmann, Board
pa
ris
Topics
Stronger together
on
of its value chain. An overview
Flow of knowledge
of
s
rd
co
da
nt
tw ta
en
ith
This is how employees of the Four Rings be- Audi is mindful of its responsibility Is
ta t w
n this responsibility along the entire en
da nt
rd value chain.
Member for Sales and Marketing,

s co
of
is on
of key improvements and

ar
mp
Co
Story that documents the com- and Peter Kössler, Board Member for initiatives
mitment of Audi. For example, the Production and Logistics talk about
section "Operations & Integrity" their responsibility. The interview
te (CO2, decarbonization inde

Clima x)
Comparison with the targets of
the sustainability program SDG
Top topics
from the (SDGs): Allocation of the 17 global
materiality analysis goals for sustainable development
e (corporate govern Materiality analysis

nanc ainable operatio ance
ver t ns) as
Go s for sus a What concerns stakeholders, what do they
as i
Strategy
b
expect from Audi? Selection of the most im-
Strategy portant results of the materiality analysis
In the "Strategy" section, the articles shed light on the

ESG criteria
corporate strategy newly adopted in 2019, "consistently Chapter reference for the capital-market-
Audi," and on the background to and the development relevant criteria of Environment, Social
history of the sustainability report for 2019. and Governance (ESG)
The following four chapters each have the same structure:

Core model lines
they start with a "lead story" that addresses the most rel-
GRI 102-46, 102-47, 102-48

The outline of the Audi Sustainability Program
evant topic area of this section as defined by the material- combines strategic goals with concrete mea-
ity analysis (page 22). Next, there is a second larger story, sures in an understandable manner
which delves into one aspect of the value chain (page 10)
– always with a view to the electrification strategy of Audi. Consistently sustainable
This is followed by further topics classed as relevant for Important pillars of the corporate
reporting (page 14). strategy "consistently Audi"


ds

Draw on
ison
customer
Compar
experiences
data highway
GRI criteria
tection measures.
tation (oekomRating
tion/repu
Down to the
Benefiting
, SIS)
sidera
isti c con
last detail Hol
s
rd
da
Co
ta n
mp
Is
ari
GR
son
h
wit
of
nt
c on
relationships
nte
ten
rity ion
Long-term
from customers’
f co
customer
t
tect
s
w it
no
Ethic ation
and a pro
hG
is o
secu
al
)
ex
oper
par
RI s
Dat
i nd
Co m
tan
n
tio
from
da
the materiality
iza
rds
analysis ety
bon
Co
saf
n se
car
icle
, de
rva
tion
vi
ns a
2
e (CO
experience
ro
io as
Integrity
nm
)
rat ce
of
en
t
le o erna
resou
Clima
t
(el
pe
ustai te gov
ect
rces
Pro &
gy
rific
techno parameters.
nab
from
Ser
ra
ate
a
(corpo
ducts
analysis
tion o
vices
Str
basis for s
CONSISTENTLY
Traveling safely
Governance
fensive)
SUSTAINABLE Integrated and
Three-pillar
Transparency
for
resources and
well thought out
Em
Soc ne fo
O
pl tion
ial
oy
(So us is
c
cia on
e Cr& on
ty,
rtuni
lc
s)
Circu
When developing sustainable

l oppon and
t
lu
rit rain
an
lar
Equa ratio
y
er
econ
Va
pl
uc
on the data highway
t
ia ing
integ sity omy
n/
od
be
io
diver m Em
co
ct
an e
Pr du
approach
ene iss
d av ro in ion
de al lp rgy
ve ue d tra the
ma s and
lo eu
pm river Viable
h
₂-n fac nag
alt
nt (
CO tor
he
.) udi. em
me y
value creation
l)
Environ
ety onal
ent
ria
products and services, Audi
ate
saf ati
Sustainrds in the
standa chain
an cup
supply
ym
ng condi-
Oc
d
ar
ng forms rn
nd
worki and mode
ability
co
se
worki
of
He
se
al
(u
(n
t
y
tions
itr
Less is
Fair
m
og no
en co
relies on long-term relation-

ox re more
id la
e cu
s,
pa ci r
r tic r ce
Owners of an Audi expect digitally

lat so
United for e ma
tte on
of
ati
your health
The past has shown

r, n work – with the vision of build-
o ise) s er v
Con ing its cars in carbon-neutral
Co
ships with its customers.
m
pa
ris
Topics
Stronger together
on
connected vehicles and services. As
Flow of knowledge
of
s
rd
co
da
nt
that operating without

tw ta
en
ith
ta t w
Thanks to a brand-differen-
n this responsibility along the entire en
da nt
rd value chain.
s co
of
is on
part of that, customers depend on

ar
mp
Co
Story that documents the com- ethics and a sense of tiating customer experience their personal data being safe – re-
proportion does not
mitment of Audi. For example, the work. But what does
(CE), the company intends gardless of whether it is in the vehi-
to become number one for
section "Operations & Integrity" ethical operation mean customer experience.
cle, in the cloud or on Audi servers.
for Audi?
eratio n/reputation (oekomR

onsid ating
tic c , SI
S)
Sustainability Roadmap H olis

Long-term
customer
(SDGs): Allocation of the 17 global
Ethical relationships Data protection
goals for sustainable development
operations and security
Governance Materiality analysis

What concerns stakeholders, what do they
Operations Operations
&
portant results of the materiality analysis
Integrity
& Integrity
ESG criteria
Chapter reference for the capital-market-
The materiality analysis (page 22) provides informa- relevant criteria of Environment, Social
tion on the relevance of defined action areas for Au- and Governance (ESG)
di’s stakeholders. For the section "Operations &
Integrity," the topics "ethical operations," "long-term
Core model lines
customer relationships" and "data protection and
GRI 102-46, 102-47, 102-48

data security" were ranked as most important. The combines strategic goals with concrete mea-
corresponding article starts on page 24. sures in an understandable manner
Equally high relevance is also afforded to the topic of Consistently sustainable

"economic stability," which this sustainability report Important pillars of the corporate
addresses in detail (page 35). strategy "consistently Audi"


ds

Draw on
ison
customer
Compar
experiences
data highway
GRI criteria
tection measures.
Full of power
tation (oekomRating
tion/repu
Down to the c con
sidera
, SIS)
isti
last detail Hol
s
rd
da
Co
ta n
mp
Is
ari
GR
son
h
wit
of
nt
c on
relationships
nte
ten
rity ion
Long-term
f co
customer
t
tect
s
w it
no
Ethic ation
and a pro
hG
is o
secu
al
)
ex
oper
par
RI s
Dat
i nd
When it comes to drive sys-
Co m
tan
n
tio
from
da
the materiality
iza
rds
analysis ety
bon
Co
saf
n se
car
icle
, de
rva
tion
vi
ns a
2
e (CO
ro
io as
Integrity
nm
)
rat ce
of
tems, Audi is pursuing a ho-
en
t
le o erna
resou
Clima
t
(el
pe
ustai te gov
ect
rces
Pro &
gy
rific
techno parameters.
nab
from
Ser
ra
ate
a
(corpo
ducts
analysis
tion o
vices
Str
Better safe Integrated and
basis for s
CONSISTENTLY
Governance
fensive)
listic approach: from e-tron to
for
Integrated and
resources and
well thought out
Em
Soc ne fo
O
pl tion
ial
oy
(So us is
c
cia on
e Cr& on
ty,
rtuni
lc
s)
the expansion of the charging
l oppon and Circu
t
lu
rit rain
an
lar
y
than sorry well thought out

Equa ratio
er
econ
Va
pl
uc
t
ia ing
integ sity omy
n/
od
be
io
diver m Em
co
ct
an e
d av Pr ro
du
in
ene iss
ion
de al lp rgy
ve ue d tra the
ma s and
lo eu
pm river Viable
h
₂-n fac nag
alt
nt (
CO tor
he
.) udi. em
me y
value creation
l)
Environ
ety onal
ent
ria
infrastructure, from solutions
ate
saf ati
Sustainrds in the
standa chain
an cup
supply
ym
ng condi-
Oc
d
ar
ng forms rn
nd
worki and mode
ability
co
se
worki
of
He
se
al
(u
(n
t
y
tions
itr
Less is
Fair
m
og no
co
for the last mile to refueling

en
ox re more
id la
e cu
s,
pa ci r
Important findings re- Thinking consistently

r tic
u u r ce
lat so environmental aspects of its
United for e ma
tte on
of
ati
your health r, n
o ise)
Con
s er v
with green electricity, from
Co
m
pa
ris
Topics
Stronger together
garding safety: How the from start to finish: In the
on
Flow of knowledge
of
s
rd
co
da
nt
tw ta
en
ith
w
hybrids to hydrogen cars. Here

ta this responsibility along the entire t
n da en
rd value chain. nt
s co
of
on
Audi Accident Research life cycle assessment of a

is
ar
mp
Co
Story that documents the com- Unit (AARU) does im- are the most important key vehicle, we can see where
mitment of Audi. For example, the portant work in the area parameters and projects from the burdens for the envi-
the 2019 drive strategy.
section "Operations & Integrity" of accident avoidance – ronment arise. The most
and not just in terms of important facts about the
vehicle technology. complex analyses:
tion of resourc
Conserva es
Alternative Sustainable Development Goals
drive tech- (SDGs): Allocation of the 17 global
nologies Transparency
Vehicle safety for resources
goals for sustainable development
and life cycle
assessment
ent (e
lectrification of
f en
Materiality analysis
nm siv
v iro e) What concerns stakeholders, what do they
En
Products Products
&
Services
& Services
ESG criteria
In the area of "Products & Services," according to relevant criteria of Environment, Social
the materiality analysis (page 22), the greatest and Governance (ESG)
relevance is afforded to the topic of "vehicle safety,"
followed by "alternative drive technologies" and
Core model lines
"transparency with respect to resource conservation
GRI 102-46, 102-47, 102-48

and life cycle assessment.“ combines strategic goals with concrete mea-
sures in an understandable manner
The topics "combustion engines with future viability"
and "sustainable system offering," were also ranked Consistently sustainable
highly, which is why these topics play a prominent Important pillars of the corporate
role in the article on "alternative drive technologies" strategy "consistently Audi"
(page 46).


ds

Draw on
ison
customer
Compar
experiences
data highway
GRI criteria
tection measures.
tation (oekomRating
tion/repu
Down to the sidera
, SIS)
Less is more
isti c con
last detail Hol
s
rd
da
Co
ta n
mp
Is
ari
GR
son
h
wit
of
nt
c on
relationships
nte
ten
rity ion
Long-term
f co
customer
t
tect
s
w it
no
Ethic ation
and a pro
hG
is o
secu
al
)
ex
oper
par
RI s
Dat
i nd
Co m
tan
n
tio
from
da
the materiality
iza
rds
analysis ety
bon
Audi works continuously on
Co
saf
n se
car
icle
, de
rva
Stronger
tion
vi
ns a
2
e (CO
ro
io as
Integrity
nm
)
rat ce
of
en
t
le o erna
resou
Clima
t
(el
pe
ustai te gov
ect
rces
Pro &
gy
rific
reducing its energy consump-
techno parameters.
nab
from
Ser
ra
ate
a
(corpo
ducts
analysis
tion o
vices
Str
basis for s
CONSISTENTLY
Governance
fensive)
together
for
Integrated and
resources and
well thought out
Audi closes circles tion and emissions. In terms of

Em
Soc ne fo
O
pl tion
ial
oy
(So us is
c
cia on
e Cr& on
ty,
rtuni
lc
s)
l oppon and Circu
t
lu
rit rain
an
lar
Equa ratio
y
er
econ
Va
pl
uc
t
ia ing
integ sity omy
n/
od
be
io
diver m Em
co
ct
Pr du
both products and site-based

an e ene iss
d av ro in ion
de al lp rgy
ve ue d tra the
ma s and
lo eu
pm river Viable
h
₂-n fac nag
alt
nt (
CO tor
he
.) udi. em
me y
value creation
l)
Environ
ety onal
ent
ria
ate
saf ati
As a large industrial cor-
Sustainrds in the
standa chain
an cup
supply
ym
ng condi-
Oc
d
ar
ng forms rn
nd
environmental activities, one
worki and mode
ability
co
se
Reduce, reuse, recycle,
worki
of
He
se
al
(u
(n
t
y
tions
itr
Less is
Fair
m
og no
en co
re more
poration, Audi is mind-

ox
id la
e cu
s,
pa ci r
r tic r ce
focus is on reducing energy

lat so
United for e ma of
rethink: Audi is pursuing

tte on
ati
your health r, n
o ise)
Con
s er v
Co
ful of its responsibility
m
pa
ris
Topics
Stronger together
on
consumption and the associat-
Flow of knowledge
of
s
rd
co
the vision of a comprehen-
da
nt
tw ta
en
ith
ta t w
this responsibility along the entire
toward society and the

n da en
rd value chain. nt
s co
of
is on
ar
ed emissions in production.
mp
sive circular economy. Can it

Co
Story that documents the com- environment – and uses

succeed? In 2019, Audi re-
mitment of Audi. For example, the searched a number of promis-
its impact to meet this
section "Operations & Integrity" responsibility along the
ing approaches – and came to
entire value chain.
the conclusion that it is head-
ing in the right direction.
ircular economy (use of
u rces/c s ec
of reso ond
ar
Sustainability Roadmap tion ym
rva ate
nse ria
Comparison with the targets of Co l)
Emissions and (SDGs): Allocation of the 17 global
energy man- goals for sustainable development
Circular agement in Sustainability
economy the factory standards in the
supply chain
O₂-neutral producti Materiality analysis
nt (C on/
me pla What concerns stakeholders, what do they
iron nt
Value Creation
v s)
En Value creation expect from Audi? Selection of the most im-
& portant results of the materiality analysis
Production
& Production
ESG criteria
In the section "Value Creation & Production," relevant criteria of Environment, Social
the following three topics are the most import- and Governance (ESG)
ant for Audi stakeholders according to the ma-
teriality analysis performed (page 22): "circular
Core model lines
economy," "emissions and energy management
GRI 102-46, 102-47, 102-48

(in the factory)" and "sustainability standards combines strategic goals with concrete mea-
in the supply chain.“ sures in an understandable manner
The stories on these topics are featured in the Consistently sustainable

sustainability report starting on page 61. Important pillars of the corporate
strategy "consistently Audi"


ds

Draw on
ison
customer
Compar
experiences
data highway
GRI criteria
tection measures.
tation (oekomRating
tion/repu
Down to the c con
sidera
, SIS)
isti
last detail Hol
s
rd
da
Co
ta n
mp
Is
ari
GR
son
h
wit
of
nt
c on
relationships
nte
ten
rity ion
Long-term
f co
customer
t
tect
s
United for
w it
no
Ethic ation
and a pro
hG
is o
secu
al
)
ex
oper
par
RI s
Dat
i nd
Co m
tan
n
tio
from
da
the materiality
iza
rds
analysis ety
bon
Co
saf
n se
car
icle
, de
rva
tion
vi
ns a
2
e (CO
ro
io as
Integrity
nm
)
rat ce
of
your health
en
t
le o erna
resou
Clima
t
(el
pe
ustai te gov
ect
rces
Pro &
gy
rific
techno parameters.
nab
from
Ser
ra
ate
a
(corpo
ducts
analysis
tion o
vices
Str
basis for s
CONSISTENTLY
Governance
fensive)
for
Integrated and
resources and
well thought out
Em
Soc ne fo
Audi embraces
O
pl tion
ial
oy
(So us is
c
cia on
e Cr& on
ty,
rtuni
lc
s)
l oppon and Circu
t
lu
rit rain
an
lar
Equa ratio
y
er
Audi employs an integrated
econ
Va
pl
uc
t
ia ing
Flow of knowledge
integ sity omy
n/
od
be
io
diver m Em
co
ct
an e
d av Pr ro
du
in
ene iss
ion
de al lp rgy
ve ue d tra the
ma s and
lo eu
pm river Viable
h
₂-n fac nag
alt
nt (
CO tor
he
.) udi. em
me y
value creation
l)
Environ
ety onal
ent
diversity
ria
ate
saf ati
Sustainrds in the
occupational safety system
standa chain
an cup
supply
ym
ng condi-
Oc
d
ar
ng forms rn
nd
worki and mode
ability
co
se
worki
of
He
se
al
(u
(n
t
y
tions
itr
Less is
Fair
m
og no
en co
ox re more
la
and comprehensive health

id
e cu
s,
pa ci r
r tic r ce
By 2025, Audi intends to

lat so
United for e ma
tte on
of
ati
your health r, n
o ise)
Con
s er v
Co
The most varied of career
m
management system to min-
pa
ris
Topics
Stronger together
on
launch dozens of electrified
Flow of knowledge
of
s
rd
co
da
nt
tw ta
en
ith
ta t w
this responsibility along the entire en
paths, nationalities and

n da nt
imize work-related accidents

rd value chain.
s co
of
is on
models on the market. That

ar
mp
Co
Story that documents the com- and improve the health biographies: employees
requires expertise – which
mitment of Audi. For example, the Audi employees acquire resources for its workforce. report on their work at
section "Operations & Integrity" through specially tailored Audi – from a very person-
training and development al perspective
programs. A report
ircular economy (use of
u rces/c s ec
of reso ond
ar
Sustainability Roadmap tion ym
rva ate
nse ria
Comparison with the targets of Co l)
Occupational
(SDGs): Allocation of the 17 global
health
Fair working
and safety
Equal goals for sustainable development
conditions opportunity,
and modern integration
working forms and diversity
come a value drive Materiality analysis
ia be ng and develo r for A
iter ini pmen u
l cr s on tra t.) di.
oc
ia
si What concerns stakeholders, what do they
(S e focu
Employees On Employees
&
Society
& Society
ESG criteria
According to the materiality analysis (page 22), relevant criteria of Environment, Social
Audi stakeholders afford the utmost priority in the and Governance (ESG)
section "Employees & Society" to the topic of "fair
working conditions and modern working forms."
Core model lines
GRI 102-46, 102-47, 102-48

"Occupational health and safety" and "equal oppor- combines strategic goals with concrete mea-
tunities, integration and diversity" were also ranked sures in an understandable manner
highly. All three topics are discussed in detail in this
report starting on page 82. Consistently sustainable
Important pillars of the corporate
strategy "consistently Audi"

Independent Practitioner’s Report on a Limited Assurance

Engagement on Sustainability Information1
To AUDI AG, Ingolstadt Responsibilities of the Executive Directors Independence and Quality Control of the Practitioner’s Responsibility
We have performed a limited assurance en- The executive directors of the Company are Audit Firm Our responsibility is to express a limited as-
gagement on the disclosures denoted with responsible for the preparation of the Report We have complied with the German profes- surance conclusion on the disclosures deno-
“√” in the table “Audi Sustainability Key Figu- in accordance with the principles stated in sional provisions regarding independence as ted with “√” in the table “Audi Sustainability
res” as well as on the management approa- the Sustainability Reporting Standards of the well as other ethical requirements. Key Figures” as well as on the management
ches on product-related CO2 emissions and Global Reporting Initiative (hereinafter the Our audit firm applies the national legal re- approaches on product-related CO2 emissi-
employer attractiveness in the Sustainability “GRI-Criteria”) and for the selection of the quirements and professional standards – in ons and employer attractiveness in the Re-
Report 2019 of AUDI AG, Ingolstadt (herei- disclosures to be evaluated. particular the Professional Code for German port based on the assurance engagement we
nafter the “Company”), for the period from Public Auditors and German Chartered Audi- have performed.
1 January to 31 December 2019 (hereinafter This responsibility of Company’s executive tors (“Berufssatzung für Wirtschaftsprüfer
the “Report”). directors includes the selection and applica- und vereidigte Buchprüfer”: “BS WP/vBP”) Within the scope of our engagement we did
tion of appropriate methods of sustainability as well as the Standard on Quality Control 1 not perform an audit on external sources of
reporting as well as making assumptions and published by the Institut der Wirtschaftsprü- information or expert opinions, referred to in
estimates related to individual sustainabi- fer (Institute of Public Auditors in Germany; the Report.
* PricewaterhouseCoopers GmbH has performed a
limited assurance engagement on the German versi- lity disclosures, which are reasonable in the IDW): Requirements to quality control for
on of the Sustainability Report 2019 of AUDI AG and circumstances. Furthermore, the executive audit firms (IDW Qualitätssicherungsstan- We conducted our assurance engagement in
issued an independent assurance report in German directors are responsible for such internal dard 1: Anforderungen an die Qualitätssiche- accordance with the International Standard
language, which is authoritative. The following text
control as they have considered necessary rung in der Wirtschaftsprüferpraxis - IDW on Assurance Engagements (ISAE) 3000 (Re-
is a translation of the independent assurance report.
** The Sustainability Report 2019 of AUDI AG pre- to enable the preparation of a Report that is QS 1) – and accordingly maintains a compre- vised): “Assurance Engagements other than
sented for the issuance of the Independent Practitio- free from material misstatement whether hensive system of quality control including Audits or Reviews of Historical Financial In-
ner’s Report is available on the webpage of AUDI AG: due to fraud or error. documented policies and procedures regar- formation”, issued by the IAASB. This Stan-
www.audi.com/sustainability_report. The Company is
ding compliance with ethical requirements, dard requires that we plan and perform the
responsible for its website. Accordingly, we assume
no responsibility for any changes in the presentati- professional standards and applicable legal assurance engagement to allow us to conclu-
on of content subject to the assurance procedures and regulatory requirements. de with limited assurance that nothing has
described in this Independent Practitioner’s Report
that occurred after the date of this Independent
Practitioner’s Report.

come to our attention that causes us to Obtaining an understanding of the struc- Assurance Conclusion
believe that the disclosures denoted with “√” ture of the sustainability organization and Based on the assurance procedures perfor-
in the table “Audi Sustainability Key Figures” of the stakeholder engagement med and assurance evidence obtained, no-
as well as the management approaches on Assessment of the management approach thing has come to our attention that causes
product-related CO2 emissions and employer on product-related CO2 emissions and the us to believe that the disclosures denoted
attractiveness in the Company’s Report for management approach on employer at- with “√” in the table “Audi Sustainability Key
the period from 1 January to 31 December tractiveness against the requirements of Figures” as well as the management appro-
2019 have not been prepared, in all materi- the GRI Standards pursuant to Disclosures aches on product-related CO2 emissions and
al aspects, in accordance with the relevant 103-1, 103-2 and 103-3 employer attractiveness in the Company’s
GRI-Criteria. Inspection of relevant documents and in- Report for the period from 1 January to 31
quiries of personnel regarding the data December 2019 have not been prepared, in
In a limited assurance engagement, the as- collection and consolidation processes of all material aspects, in accordance with the
surance procedures are less in extent than the selected disclosures in the Report as relevant GRI-Criteria.
for a reasonable assurance engagement well as the internal control system relating
and therefore a substantially lower level of to these processes Intended Use of the Assurance Report
assurance is obtained. The assurance proce- Analytical evaluation of selected disclosu- We issue this report on the basis of the en-
dures selected depend on the practitioner’s res in the Report gagement agreed with the Company. The
judgment. Evaluation of the implementation of cent- assurance engagement has been performed
ral management requirements, processes for purposes of the Company and the report
Within the scope of our assurance engage- and specifications regarding data collecti- is solely intended to inform the Company as
ment, we performed amongst others the on through on-site visits at selected sites to the results of the assurance engagement.
following assurance procedures and further of the Company: The report is not intended to provide third
activities: parties with support in making (financial)
AUDI AG, Ingolstadt, Germany decisions. Our responsibility lies solely to-
AUDI AG, Neckarsulm, Germany ward the Company. We do not assume any
AUDI HUNGARIA Zrt., Győr, Hungary responsibility towards third parties.
ssessment of the aggregation of selected

A Frankfurt am Main, 13 May 2020
disclosures in the Report on group level PricewaterhouseCoopers GmbH
Comparison of selected disclosures with Wirtschaftsprüfungsgesellschaft
corresponding data in the consolidated fi-
nancial statements and in the group ma-
nagement report 2019 of the Company Nicolette Behncke ppa. Mirjam Kolmar
Evaluation of the presentation of the infor- Wirtschaftsprüfer
mation (German Public Auditor)

GRI content index

The Audi Group is reporting on its sustainability performance for
the year 2019 pursuant to the international standard of the Global
Reporting Initiative (GRI). This report was prepared in accordance
with the “core” option of the GRI Standards.
The information in this report was chosen on the basis of a materi-

ality analysis performed in 2019. The report was submitted to GRI
for the performance of the GRI Materiality Disclosures Service. GRI
confirmed the proper positioning of the materiality-related disclo-
sures (102-40 to 102-49). The German version of the Sustainabili-
ty Report was used for this service.
GRI Standards Page Statement/comment GRI Standards Page Statement/comment
General Disclosures GRI 102-6: Markets served 4
GRI 101: Foundation 2016 GRI 102-7: Scale of the organization 4, 88, 107
GRI 102: General Disclosures 2016 GRI 102-8: Information on employees and other 88, 107
workers
Organizational profile
GRI 102-9: Supply chain 11, 65ff
GRI 102-1: Name of the organization 4
GRI 102-10: Significant changes to the 35ff
GRI 102-2: Activities, brands, products 4 organization and its supply chain
and services GRI 102-11: Precautionary principle or approach 35ff
GRI 102-3: Location of headquarters 4
GRI 102-12: External initiatives 21
GRI 102-4: Location of operations 4
GRI 102-13: Membership in associations 21
GRI 102-5: Ownership and legal form 4 and other interest groups

Strategy GRI 102-26: Role of highest governance body in 15ff, 18f

setting targets, values, and strategies
GRI 102-14: Statement from senior 3, 6ff
GRI 102-27: Collective knowledge of highest FR (p. 58)
decision-maker
governance body
GRI 102-15: Key impacts, 6ff, 25ff,
35ff, 62ff GRI 102-28: Evaluating the highest governance 18-19
risks and opportunities
body's performance
Ethics and integrity
GRI 102-29: Identifying and managing economic, 20f, 22f
GRI 102-16: Values, principles, standards, 18f, 25ff, environmental, and social impacts
and norms of behavior 38ff GRI 102-30: Effectiveness of risk management FR (p. 89ff)
GRI 102-17: Mechanisms for advice and 18f, 25ff processes
concerns about ethics GRI 102-31: Review of economic, environmental, 22f
Governance and social topics
GRI 102-32: Highest governance body’s role in 22f, 102
GRI 102-18: Governance structure 18f
sustainability reporting
GRI 102-19: Delegating authority 18f GRI 102-33: Communicating critical concerns 25ff,
FR (p. 89ff)
GRI 102-20: Executive-level responsibility for 18f
GRI 102-34: Nature and total number of critical FR (p. 102ff)
economic, environmental, and social topics
concerns
GRI 102-21: Consulting stakeholders on 20f
GRI 102-35: Remuneration policies FR (p. 69ff)
economic, environmental, and social topics
GRI 102-22: Composition of the highest governance FR (p. 66) GRI 102-36: Process for determining remuneration FR (p. 69ff)
body and its committees
GRI 102-37: Stakeholders' involvement in remunera- FR (p. 69ff)
GRI 102-23: Chair of the highest governance body FR (p. 4ff, tion
66)
GRI 102-24: Nominating and selecting the FR (p. 57f)
highest governance body
GRI 102-25: Conflicts of interest FR (p. 55ff)
FR = Audi Financial Report 2019. Download from:

https://www.audi.com/de/company/investor-relations/reports-and-key-figures/annual-reports.htmlports.html

Stakeholder engagement Topic-specific disclosures
GRI 102-40: List of stakeholder groups 20f, 22f GRI 201: Economic Performance 2016
GRI 102-41: Collective bargaining agreements 40, 89 GRI 103-1: Explanation of the material 14, 22f. 25,
topic and its boundary 35ff, 41, 112
GRI 102-42: Identifying and selecting 20
GRI 103-2: The management approach and 25, 35, 41
stakeholders
its components
GRI 102-43: Approach to stakeholder engagement 20
GRI 103-3: Evaluation of the management approach 20f, 37
GRI 102-44: Key topics and concerns raised 15ff, 22f GRI 201-1: Directly generated and 35ff, 103
Reporting practice distributed economic value
GRI 201-2: Financial implications and other 6ff, 10ff,
GRI 102-45: Entities included in the consolidated FR (p. 201) risks and opportunities due to climate change 35ff, FR
financial statements
GRI 201-3: Defined benefit plan obligations and FR (page
GRI 102-46: Defining report content and topic 14, other retirement plans 166)
boundaries 22f, 111ff
GRI 202 Market Presence 2016
GRI 102-47: List of material topics 14,
22f, 111ff GRI 103-1: Explanation of the material 4, 14, 22f,
GRI 102-48: Restatements of information 14, 102, topic and its boundary 88ff
111ff GRI 103-2: The management approach and 4, 88ff
GRI 102-49: Changes in reporting 14, 22-23, its components
102
GRI 102-50: Reporting period 102
GRI 202-1: Ratios of standard entry level wage by The bargaining part-
GRI 102-51: Date of most recent report 102 gender compared with local minimum wage ners consider the ratio
of the entry level wages
GRI 102-52: Reporting cycle 102 to the statutory local
minimum wage when
GRI 102-53: Contact point for questions 20, 126 structuring compen-
regarding the report sation as part of the
collective bargaining
GRI 102-54: Declaration on reporting in 118 process.
accordance with the GRI Standards
GRI 202-2: Proportion of senior management hired 88
GRI 102-55: GRI content index 118ff from the local community
GRI 102-56: External assurance 116f

https://www.audi.com/de/company/investor-relations/reports-and-key-figures/annual-reports.htmlports.html

GRI 203: Indirect Economic Impacts 2016 GRI 205: Anti-corruption 2016
GRI 103-1: Explanation of the material 14, 22f, 35, GRI 103-1: Explanation of the material 14, 22f, 25ff
topic and its boundary 93 topic and its boundary
GRI 103-2: The management approach and 35, 93 GRI 103-2: The management approach and 25ff
its components its components
GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-3: Evaluation of the management approach 20f, 37
GRI 203-1: Infrastructure investments and 35ff, 70ff GRI 205-1: Operations assessed for risks related to 25ff
services supported corruption
GRI 203-2: Significant indirect 35ff, 62ff, GRI 205-2: Communication and training about 27ff
economic impacts 85ff anti-corruption policies and procedures
GRI 204: Procurement Practices 2016 GRI 205-3: Confirmed incidents of corruption 26
and actions taken
GRI 103-1: Explanation of the material 14, 22f, 62ff,
topic and its boundary 65ff, 114 GRI 206: Anti-competitive Behavior 2016
GRI 103-2: The management approach and 62ff, 65ff GRI 103-1: Explanation of the material 14, 22f, 25ff,
its components topic and its boundary 41
GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-2: The management approach and 25ff, 41
its components
GRI 204-1: Proportion of spending on 35ff
local suppliers GRI 103-3: Evaluation of the management approach 20f, 37
GRI 206-1: Legal actions for 25ff

anti-competitive behavior, anti-trust,
and monopoly practices

GRI 301: Materials 2016 GRI 303: Water and Effluents 2018
GRI 103-1: Explanation of the material 14, 22f, 62ff, GRI 103-1 (GRI 103: Management approach 2016): 14, 22f, 6ff,
topic and its boundary 78f, 114 Explanation of the material topic and its boundary 69, 72, 80,
114
GRI 103-2: The management approach and 62ff, 78f
its components GRI 103-2(GRI 103: Management approach 2016): 6ff, 69, 72,
The management approach and its components 80f
GRI 103-3(GRI 103: Management approach 2016): 20f, 37
GRI 301-1: Materials used by weight or volume 64 Evaluation of the management approach
GRI 301-2: Recycled input materials used 62ff, 65ff GRI 303-1: Interactions with water as a shared re- 74, 106f
source
GRI 301-3: Reclaimed products and 62ff, 74 GRI 303-2: Management of water discharge-related 70, 74
their packaging materials impacts
GRI 302 Energy 2016 GRI 303-3: Water withdrawal 70, 74
105-106
topic and its boundary 69, 72, 81, GRI 303-4: Water recirculation 70, 74
114 105-106
GRI 103-2: The management approach and 6ff, 69, 72, GRI 303-5: Water consumption 70, 74
its components 81 105-106
GRI 103-3: Evaluation of the management approach 20f, 37 GRI 304: Biodiversity 2016
GRI 302-1: Energy consumption within 72ff, 104f GRI 103-1: Explanation of the material 14, 22f, 69ff,
the organization topic and its boundary 114
GRI 302-2: Energy consumption outside of 72ff, 104f GRI 103-2: The management approach and 69ff
the organization its components
GRI 302-3: Energy intensity 72ff, 104f GRI 103-3: Evaluation of the management approach 20f, 37
GRI 302-4: Reduction of energy consumption 69, 72, 104f GRI 304-1: Operational sites owned, leased, managed 69ff
in,
GRI 302-5: Reductions in energy requirements 72ff
or adjacent to protected areas and areas of high biodi-
of products and services
versity value outside protected areas
GRI 304-2: Significant impacts of activities, 69ff
products, and services on biodiversity
GRI 304-3: Habitats protected or restored 71

GRI 305: Emissions 2016 GRI 307: Environmental Compliance 2016
GRI 103-1: Explanation of the material 14, 22f, 69ff, GRI 103-1: Explanation of the material 14, 22f, 25ff,
topic and its boundary 72ff, 80f, topic and its boundary 51, 69, 72ff,
114 112, 114
GRI 103-2: The management approach and 69ff, 72ff, GRI 103-2: The management approach and 25ff, 51, 69,
its components 80f its components 72ff
GRI 305-1: Direct (Scope 1) GHG emissions 73, 75 GRI 307-1: Non-compliance with environmental laws 19, 25ff
105 and regulations
GRI 305-2: Energy indirect (Scope 2) GHG emissions 73, 75, 105 GRI 308: Supplier Environmental Assessment 2016
GRI 305-3: Other indirect (Scope 3) GHG emissions 75, 105 GRI 103-1: Explanation of the material 14, 22f, 65ff,
topic and its boundary 78, 114
GRI 305-4: GHG emissions intensity 72ff, 105
GRI 103-2: The management approach and 65ff, 78
GRI 305-5: Reduction of GHG emissions 72ff, 105 its components
GRI 305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), 74, 105 GRI 103-3: Evaluation of the management approach 20f, 37
and other significant air emissions
GRI 308-1: New suppliers that were screened 65ff
GRI 306: Effluents and Waste 2016
using environmental criteria
GRI 103-1: Explanation of the material 14, 22f, 69, GRI 308-2: Negative environmental impacts in the 65ff
topic and its boundary 80, 114 supply chain and actions taken
GRI 103-2: The management approach and 69, 80
its components
GRI 306-1: Water discharge by quality 74, 106

and destination
GRI 306-2: Waste by type and disposal method 74, 106
GRI 306-3: Significant spills 74
GRI 306-4: Transport of hazardous waste 74, 106
GRI 306-5: Water bodies affected by water 74,

discharges and/or runoff 105-106

GRI 401: Employment 2016 GRI 403: Occupational Health and Safety 2018
GRI 103-1: Explanation of the material 14, 22f, 88, GRI 103-1 (GRI 103: Management approach 2016): 14, 22f, 91f,
topic and its boundary 99ff, 115 Explanation of the material 99ff, 115
GRI 103-2: The management approach and 88, 99ff topic and its boundary
its components GRI 103-2 (GRI 103: Management approach 2016): 91f, 99ff
GRI 103-3: Evaluation of the management approach 20f, 37 The management approach and
its components
GRI 401-1: New employee hires and 88ff, 107 Information by age GRI 103-3 (GRI 103: Management approach 2016): 20f, 37
employee turnover group and gender is Evaluation of the management approach
not currently avail-
able. GRI 403-1: Occupational health and 91f, 108
safety management system
GRI 401-2: Benefits provided to full-time employ- 88ff
ees that are not provided to temporary or part-time GRI 403-2: Hazard identification, Information by age
employees risk assessment, and incident investigation group and region is not
currently available.
GRI 401-3: Parental leave 88ff, 108 Information on return
to work rate by gen- GRI 403-3: Occupational health services 92
der is not currently
available. GRI 403-4: Worker participation, consultation, and 91f
communication on occupational health and safety
GRI 402: Labor/Management Relations 2016
GRI 403-5: Worker training on 91-92
GRI 103-1: Explanation of the material 14, 22f, 38ff, occupational health and safety
topic and its boundary 89, 115 GRI 403-6: Promotion of worker health 91f
GRI 103-2: The management approach and 38ff, 89
its components GRI 403-7: Prevention and mitigation of 91f
occupational health and safety impacts directly
GRI 103-3: Evaluation of the management approach 20f, 37 linked by business relationships
GRI 403-8: Workers covered by an 91f
GRI 402-1: Minimum notice periods regarding In the event of oper- occupational health and safety management
operational changes ational changes, the system
company undertakes
to inform the em- GRI 403-9: Work-related injuries 91f, 108
ployees of these in a
timely manner. GRI 403-10: Work-related ill health 91f, 108

GRI 404: Training and Education 2016 GRI 412: Human Rights Assessment 2016
GRI 103-1: Explanation of the material 14, 22f, 85ff, GRI 103-1: Explanation of the material 14, 22f, 25ff,
topic and its boundary 99ff, 115 topic and its boundary 65ff
GRI 103-2: The management approach and 85ff, 99ff GRI 103-2: The management approach and 25ff, 65ff
its components its components
GRI 404-1: Average hours of training per year per 107 Information by gen- GRI 412-1: Operations that have been subject to 65ff
employee der is not currently human rights reviews or impact assessments
available.
GRI 412-2: Employee training on human rights 10ff, 25ff
GRI 404-2: Programs for upgrading 28, 85ff policies or procedures
employee skills and transition GRI 412-3: Significant investment agreements and 65ff
assistance programs contracts that include human rights clauses or that
GRI 404-3: Percentage of employees receiving regular 87 underwent human rights screening
performance and career development reviews GRI 413: Local Communities 2016
GRI 405: Diversity and Equal Opportunity 2016 GRI 103-1: Explanation of the material 14, 22f, 96ff
topic and its boundary
GRI 103-1: Explanation of the material 14, 22f, 29f,
topic and its boundary 83ff, 88ff, GRI 103-2: The management approach and 96ff
99ff, 115 its components
GRI 103-2: The management approach and 83ff, 88ff, GRI 103-3: Evaluation of the management approach 20f, 37
its components 99ff
GRI 413-1: Operations with local community 21, 96ff
engagement, impact assessments, and development
programs
GRI 405-1: Diversity of governance bodies 83ff, 88,

and employees 107, FR (P.
54, P. 57f)
GRI 405-2: Ratio of basic salary and remuneration 88ff

of women to men

www.audi.com/en/company/investor-relations/reports-and-key-figures/annual-reports.html

GRI 414: Supplier Social Assessment 2016 GRI 417-1: Requirements for product and service 110
information and labeling
65ff, 78, 114 GRI 417-2: Incidents of non-compliance AUDI AG never provides
topic and its boundary
concerning product and service information general information
GRI 103-2: The management approach and 10ff, 65ff, 78 and labeling on the scope of field
its components measures.
GRI 103-3: Evaluation of the management approach 20f, 37 GRI 417-3: Incidents of non-compliance 26
concerning marketing communications
GRI 414-1: New suppliers that were screened using 65ff
social criteria GRI 418: Customer Privacy 2016
GRI 414-2: Negative social impacts in the 65ff GRI 103-1: Explanation of the material 14, 22f, 31f,
supply chain and actions taken topic and its boundary 41, 58f, 113
GRI 416: Customer Health and Safety 2016 GRI 103-2: The management approach and 31f, 41, 58f
its components
topic and its boundary 57f, 112, GRI 103-3: Evaluation of the management approach 20f, 37
113
GRI 418-1: Substantiated complaints concerning 32
GRI 103-2: The management approach and 43ff, 57f
breaches of customer privacy and
its components
losses of customer data
GRI 419: Socioeconomic Compliance 2016
GRI 416-1: Assessment of the health and safety 43ff
impacts of product and service categories
topic and its boundary 35ff, 41, 111
GRI 416-2: Incidents of non-compliance concerning 19, 28f, FR
GRI 103-2: The management approach and 25ff, 35ff, 41
the health and safety impacts of products and services (p. 102ff)
its components
GRI 417: Marketing and Labeling 2016
GRI 103-1: Explanation of the material topic 6ff, 14, 22f
GRI 419-1: Non-compliance with laws and regulations 25ff
and its boundary
in the social and economic area
GRI 103-2: The management approach and 6ff
its components

www.audi.com/en/company/investor-relations/reports-and-key-figures/annual-reports.html
Publication Details
Published by Contact Image sources SDG
AUDI AG Prof. Dr.-Ing. Peter F. Tropschuh www.un.org
85045 Ingolstadt Head of Sustainability Strategy
Germany I/GU-3 Publication
Phone +49 841 890 email sustainability@audi.de May 14, 2020
Fax +49 841 8932524
email zentrale@audi.de
www.audi.com

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Audi Sustainability Report 2019

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

How can we make Can sustainability Which technology

Audi Sustainability Report 2019 61 Audi Sustainability Report 2019 82

61Is “clean” industry

Chapter 4 VALUE CREATION & PRODUCTION Chapter 5 EMPLOYEES & SOCIETY

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

Sabine Maaßen Hans-Joachim Hildegard Wortmann

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

Brussels Neckarsulm Ingolstadt Changchun

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

How can we make

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

“Sustainability isn’t a everything we do and communi- yet – future-oriented. We have

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

Sustainable right down

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

Procurement Audi is working with its suppliers to

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

After sales The advantages of providing such

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES

Comparison of content with GRI standar

part of the matrix

Important pillars of the cor- The outline of the Audi Sus-

to access the story

porate strategy “consistently tainability Program combines

There is a reason why people feel safe while

Large scale: The

bon-neutral premium pro-

vider, Audi is optimizing all driving an Audi: It is safe! We owe that in

part to the work of the experts at the Audi

parts of its value chain. An

overview of key improve-

ments and initiatives.

the matrix can be

Chapter reference for the cap-

Top topic Governance

When it comes to drive systems,

The interview Hildegard Wortmann,

from e-tron to the expansion of the

Board Member for Sales and Market-

charging infrastructure, from solu-

ing, and Peter Kössler, Board Mem-

tions for the last mile to refueling with

Governance (ESG) what do they expect from

green electricity, from hybrids to hy-

talk about how they are responsible

GRI 102-46, 102-47, 102-48, 102-49

for sustainability. Altern hnologie

Audi? A selection of the most

Thinking consistently from start

to finish: The life cycle assess-

ty ular the complex analyses.

(SDGs): Allocation of the 17

global goals for sustainable

I nnovative capacity and