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147 Audi Report 2024 FinanceStrategy & Company ESG Appendix Illustration: C3 Visual Lab C ompliance in a legal sense means observance of legal provisions, requirements of regulatory au- thorities, internal company policies and voluntary commitments by the company, its bodies and employees. The risks that can potentially arise as a result of legal and regulatory violations are varied and can damage a company from an economic, eco- logical and social perspective. For example, failure to comply with laws may result in human rights violations, or violations of en- vironmental regulations may increase the concentration of CO₂ in the atmosphere – both scenarios could result in reputation loss for companies, as well as legal and financial consequences, such as fines. If no specific rules are in place, companies are often faced with a dilemma. To stand firm in these situations, regardless of eco- nomic or social pressure, requires integrity – in other words, responsible and entrepre- neurial action geared toward values and principles that are recognized in society and agreed on within the company.
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Compliance and integrity together are therefore an important foundation for companies and have a positive impact on the reputation of a brand, the confidence of customers and business partners, the well-being of employees and not least on sustained economic success. Compliance and integrity in the Audi Group mean combining entrepreneurial action with applicable rules and legislation as well as with social and company-specific values. To this end, Audi specifies binding compliance regulations and also places clear demands on its suppliers and busi- ness partners. Compliance and integrity are anchored in the business processes and are revised continually. Compliance and integrity At Audi, compliance and integrity are an integral part of all business processes and decisions. The focus here is on anti-corruption, human rights and fair competition. GRI 2-16, 205, 206 Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Principles of cooperation The Audi Group commits its employees and business partners to comply with the binding Audi Code of Conduct (CoC) or the Volkswagen Code of Conduct for Business Partners (CoCBP).
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Principles of cooperation The Audi Group commits its employees and business partners to comply with the binding Audi Code of Conduct (CoC) or the Volkswagen Code of Conduct for Business Partners (CoCBP). These documents set out the duties of care of companies and business partners, among other things. They also include the commitment to equal opportunities and equality, to respecting human rights and to compliance with environmental protection and occupational health and safety. On January 1, 2024, an updated version of the CoC was published, with additions covering topics such as artificial intelligence and a commitment to values-based leadership. In addition, the Volkswagen Social Charter applies in the Audi Group. This declaration on social rights, industrial relations and economic Learn from mistakes Act Decide Identify solutions Recognize signs social values Corporate and Personal values Understand the situation 6 1 2 34 5 Make decisions with integrity Make decisions with integrity Six steps to integrity in decision-making
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148 Audi Report 2024 FinanceStrategy & Company ESG Appendix CMS 3 4 5 2 17 6 and human rights represents a further commitment to corporate responsibility. A shared sense of integrity In 2018, the Volkswagen Group launched the global integrity and compliance program Together4Integrity (T4I). The aim was to raise employee awareness of integrity and compliance across all Group companies. By 2024, the program had achieved its goals and was transitioned into the integrity and compliance activities of the departments and companies of the Volkswagen Group. Regular, dialogue-oriented communication measures and comprehensive training and participation formats help instill value- focused ways of thinking and acting in employees and managers. One example is the Integrity Summits, a series of events for managers that features external speakers to promote a change of perspective and dis- cussion of ethical issues. Monthly internal dialogue events on topics such as artificial intelligence, ESG, human rights, governance or business ethics pursue the same goal. Regular training sessions and workshops, for example on dealing with dilemma situ- ations or on ethical leadership, also impart important knowledge and competences for a modern success culture.
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Regular training sessions and workshops, for example on dealing with dilemma situ- ations or on ethical leadership, also impart important knowledge and competences for a modern success culture. A network of around 100 integrity ambassadors works across hierarchies to promote integrity in the divisions, for example by offering opportunities for dialogue, mediating be- tween employees and managers or provid- ing advice on questions and uncertainties related to integrity. Regular online training sessions on integ- rity issues, some of them mandatory and some voluntary, create a common under- standing and the basis for ethically and legally sound behavior. During the report- ing period, 99.50 percent of the workforce completed the web-based training on the Audi Code of Conduct and 99.78 percent completed the training on anti-corruption and dealing with public officials. Control and management systems At Audi, corporate governance is under- pinned by extensive management systems and processes. In accordance with the provisions of company law, the Board of Management of AUDI AG has set up specific management systems: a Risk Management System (RMS) including a risk early warning system, a Quality Man- agement System (QMS) and a Compliance Management System (CMS).
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All of these systems ensure that the company is able to identify and assess risks, comply with quality requirements and adhere strictly to laws and regulations. They are operation- alized through corporate and brand group policies, processes and work instructions. Among the management systems, the CMS plays a particularly important role in Compliance Management System effectively and sustainably implementing compliance and integrity within the Audi Group and thus meeting legal and ethical requirements. Since September 2024, Audi has been exploring options for combining the existing compliance management sys- tems. For this purpose, the company has established the Policies, Compliance and Integrity (PCI) committee. The PCI works across divisions to advance the develop- ment of the compliance and integrity man- agement systems and to ensure that these systems are appropriate and effective when used together. Another goal is to place an even greater focus on user benefits. Analysis of compliance risks Compliance risks are analyzed with the help of the Internal Compliance Risk Assessment (ICRA). This is a standard process of the Volkswagen Group for identifying, evaluat- ing and documenting compliance risks in the categories of corruption, money laun- dering and terrorism financing, as well as fraud and embezzlement.
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Each Audi Group company participating in the ICRA was required to implement its own package of compliance measures by January 31, 2025. Every package of measures is structured to reflect the seven process steps of the CMS (see graphic). The individual packages com- prised up to 35 individual measures. The assessment is repeated every three years.
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Every package of measures is structured to reflect the seven process steps of the CMS (see graphic). The individual packages com- prised up to 35 individual measures. The assessment is repeated every three years. In 2024, the Integrity, Compliance, Risk Management department at AUDI AG Illustration: C3 Visual Lab Compliance organization • Roles and responsibilities of the compliance and integrity functions • Structure of the compliance organi- zation within AUDI AG as well as at relevant subsidiaries 5 Compliance and integrity culture • Integrity management • Preparation/communication of the Code of Conduct • Promotion of a tone from the top and a tone from the middle 1 Compliance goals • Preventive advisory function as the Second Line 2 Compliance risks • Recording and evaluation of compliance risks in the company • Development and review of countermeasures 3 Compliance programs and processes • Risk prevention in compliance focal areas through target group-specific and needs-oriented consulting, communication and training measures 4 Compliance communication • Defined reporting lines to the Audi Board of Management, the Group Board of Management and the Group Chief Integrity & Compliance Officer • Risk-based compliance, communi- cation and training measures 6 Compliance monitoring/ improvement • Monitoring of compliance measures within the divisions and at subsidiaries • Continuous and lasting improvement of the CMS 7
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149 Audi Report 2024 FinanceStrategy & Company ESG Appendix successfully passed an external audit. Within the framework of an independent, risk-based review, 15 measures from the ICRA Compliance Measure Set were used to assess whether the goals, requirements and standards of the Volkswagen Group are effectively met. The auditors confirmed that AUDI AG maintains a CMS that is ef - fectively anchored within the company and that it has a well-developed compliance culture. Audits of this kind are part of the Volkswagen Group’s regular monitoring and improvement process and a corporate governance tool. In addition, the Automated Compliance Risk Analysis (ACRA) serves to identify division-specific compliance risks within the Audi Group. It received a comprehen- sive update in the year under review to en- sure that it is fit for practical use in 2025. This analysis targets top management and, in addition to traditional compliance topics such as anti-corruption, outsourcing, human rights and business partner due diligence, has also covered new topics such as working hours (HR compliance) since 2024.
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Far-reaching changes made during the reporting year, such as a modular structure that makes it easy to add new topics, are aimed at further increasing the efficiency and effectiveness of the ACRA and improving the identification, assess- ment and management of compliance risks. By standardizing the risk assessment, adequate risk mitigation measures can be planned in the departments using a risk- based approach. The process is accompa- nied by dialogue formats with the division coordinators for the topics of compliance and integrity. In addition to system queries, the data basis also includes inventory data and systemic anomalies from the compliance organization, such as feedback from train- ing courses or analyses of serious regula- tory violations. The ACRA is carried out every one to three years, depending on the risk and hazard potential. The compliance and integrity activities also include regular targeted communi- cation. Regular and ad-hoc reporting by the Chief Compliance Officer to the Board of Management and Audit Committee of the Supervisory Board of AUDI AG, to the Group Chief Integrity & Compliance Officer of the Volkswagen Group and, where need- ed, other management positions at Audi and Volkswagen ensures a continual flow and exchange of information.
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This commu- nication includes the “Governance, Risk & Compliance” annual report and reporting on the Whistleblower System. Reports of potential violations The Whistleblower System is an indepen- dent and unbiased tool for reporting and receiving specific leads on potential mis- conduct by employees of the Audi Group. Potential violations of the CoCBP, including serious risks as well as human rights and environmental violations by direct and indirect suppliers, can be reported to the Audi Investigation Office – confidentially and, if required, anonymously. Reports can be submitted by email, via the online reporting channel and, since November 1, 2024, also by telephone voice message or via the “SpeakUp – Listen for a change” app – 24 hours a day, seven days a week and in over 65 languages. In addition, an ombudsperson is available as an external reporting point. The procedural principles of the Audi Group’s grievance mechanism specify, among other things, that reports of violations must be treated confidentially and that whistleblowers must be protected from discrimination and reprisals. Using artificial intelligence (AI) and data of any kind in a business environment presents great opportunities, but also risks.
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Using artificial intelligence (AI) and data of any kind in a business environment presents great opportunities, but also risks. In its Statement of Principle on Artificial Intelligence, AUDI AG pledges to use AI, one of the key technologies of our time, responsibly. The company has set itself three guiding principles for trustworthy AI, which are based on the European Union’s “Ethics guidelines for trustworthy AI:” respect, security and transparency. With these principles in mind, Audi is working on a cross-divisional project aimed at developing a holistic data and AI strategy that will enable it to exploit the opportunities offered by the digital transformation while taking ethical and cultural aspects into account in the design of its IT systems and processes. One particular concern is to meet the new regulatory requirements. These include, for example, two pieces of legislation from the European Union: the EU AI Act¹ and the EU Data Act.² In the spotlight: uniform rules for AI and data access/use Qualified and experienced employees of the Audi Investigation Office review the information provided to determine whether potential regulatory violations have occurred. If so, appropriate action is taken. In 2024, AUDI AG received 907 reports of possible regulatory violations.
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If so, appropriate action is taken. In 2024, AUDI AG received 907 reports of possible regulatory violations. This represents an increase compared with the previous year when there were 556 re- ported violations. In addition to reports of suspicious activity, the number of reports received also includes further concerns from customers and dealers covering a wide range of topics. Strict measures against corruption Internationally active companies like AUDI AG are continually exposed to corruption risks in their everyday business. Not only can the occurrence of such risks lead to significant financial losses, but also to reputation damage. Acting with integ- rity and engaging in fair competition are therefore a fundamental pillar of the long- term success of the Audi Group – beyond all country borders. Corruption and bribery therefore have no place at Audi. The company has firmly embedded these principles in the Audi Code of Conduct, which is binding for all employees, and in its guidelines on the avoidance of conflicts of interest and corruption. ¹ The EU AI Act is designed to create awareness among companies for the conscious, ethical use and implementation of AI applications. It calls for employees to receive appropriate training and for AI systems to be classified on the basis of four defined risk classes and handled according to their classification.
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It calls for employees to receive appropriate training and for AI systems to be classified on the basis of four defined risk classes and handled according to their classification. For example, all data used to train an AI must be documented transparently, while AI-generated responses by chatbots must be marked accordingly. Source: Regulation - EU - 2024/1689 - EN - EUR-Lex (europa.eu) (Dec. 18, 2024). ² The EU Data Act focuses on the rights of customers and third parties. It gives customers the right to request a copy of all data generated by connected services in and around the vehicle, for example when charging at a wallbox. This also includes the customer’s right to forward this data to third parties, such as an insurance company. Source: Regulation - EU - 2023/2854 - EN - EUR-Lex (Dec. 18, 2024).
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150 Audi Report 2024 FinanceStrategy & Company ESG Appendix The Compliance unit provides the specialist departments with extensive advice on all corruption-related topics – with digital support from the Audi guide, an IT tool that employees can use to evaluate gifts and benefits themselves. In addition, training measures also constitute part of the preventive avoidance of corruption. 99.78 percent of non-production employ- ees as well as the Board of Management of AUDI AG successfully completed the spe- cially designed web-based training (WBT) on anti-corruption and dealing with public officials in the period under review. A broad and continually evolving portfolio of target group-specific communication and training measures strengthens awareness in the Group of the significance of compliance and integrity as a success factor for re- sponsible corporate governance. Suspected cases of corruption are handled by the Audi Investigation Office in coordi- nation with the Internal Audit department; measures are systematically derived and implemented. In the year under review, one report of potential corruption was submitted. In the year under review, two investigations due to suspected corruption took place as one report had been submit- ted at the end of 2023.
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In the year under review, two investigations due to suspected corruption took place as one report had been submit- ted at the end of 2023. The proper imple- mentation of measures is verified as part of on-site inspections and through external audits. There were no on-site inspections or audits due to suspected corruption in 2024. Furthermore, a total of 68 national and international majority participations were supported in the area of anti-corruption in the course of consultancy inquiries, the im- plementation of policies and the execution of training programs. Fundamentally, all those entities where the Audi Group holds Photo: AUDI AG Audi has made a clear commitment to responsible corporate governance. The company’s understanding of compliance and integrity is publicized on the Audi website, among other places. The multilingual content is regularly updated and accessible to all Audi employees and external stakeholders at all times. Compliance and Integrity at audi.com You can find more information at: audi.com. a majority interest or has management responsibility are included in the process. Another key topic in the area of compliance is antitrust law. Compliance with anti- trust regulations is vital to the company’s success.
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a majority interest or has management responsibility are included in the process. Another key topic in the area of compliance is antitrust law. Compliance with anti- trust regulations is vital to the company’s success. The company therefore expressly requires its employees to observe antitrust law, as stated in the CoC and in internal company regulations. Training courses as well as specialized legal consultants of AUDI AG help employees to recognize situations relevant to antitrust law and to act in accordance with the rules.
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151 Audi R eport 2024 FinanceStrategy & Company ESG Appendix Sustainable business development Resilient, robust and fit for the future: These are the qualities that help Audi ensure its success in the long-term. Sustainable Development Goals The following SDGs are at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. Photo: AUDI AG T o stay successful in the market over the long term, companies need to keep transforming themselves. The foundation of sustainable business development for the Audi Group is a healthy economic performance: Stable profits and positive cash flows allow the company to finance the necessary investments and ensure its future viability. Among the guiding principles for sustainable business development are the 17 Sustainable Development Goals of the United Nations (UN). In an effort to combat climate change and achieve the two-degree goal, national govern- ments, industrial enterprises, research insti- tutions and non-governmental organizations (NGOs) are also working to transform the global economy.
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For automotive companies, the trans- formation of mobility is of particular importance: Continuing urbanization, digitalization and, last but not least, the already tangible and anticipat- ed impacts of climate change are causing a shift in user needs and expectations. On top of this come existing and increasingly stringent laws on issues such as CO₂ emissions. The development and implementation of future-proof and sustain- able business models are firmly anchored in the strategic initiatives of the Audi Group (including in the Audi Agenda, the Common Corporate Policy, the AUDI AG Environmental and Energy Policy and internal policies on sustainability management), the management of the entire brand group and the corporate strategy of the Volkswagen Group. On the offensive with a strengthened product portfolio The key elements of the Audi business model are innovative vehicles and services that offer customers worldwide more sustainable mobility and deliver on the brand promise of “Vorsprung durch Technik.” During the year under review, a number of new Audi models gave customers the opportunity to experience what it feels like when a brand promise turns into a tangible reality.
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Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.
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152 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Audi on the offensive These models made their debut in 2024. Numerous new electric models In the upper midsize class, the new Audi A6 Sportback e-tron⁵ and the Audi A6 Avant e-tron⁶ demonstrate the versatility of the PPE: They are the first models with low-floor concept on this platform. Powerful, compact and efficient electric motors, coupled with a lithium-ion battery developed specially for the PPE as well as outstanding aerodynamics, give the cars a range of up to 756 kilometers.⁷ The Audi Q6 e-tron was launched as the first vehicle on the new platform for all-electric vehicles (Premium Platform Electric, PPE). It was followed later in the year by the Audi Q6 Sportback e-tron.¹ Following in 2025 is the Audi Q6 L e-tron² model, which was developed specifically for the Chinese market.
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It was followed later in the year by the Audi Q6 Sportback e-tron.¹ Following in 2025 is the Audi Q6 L e-tron² model, which was developed specifically for the Chinese market. With the Audi Q6 e-tron models, the company wants to set new standards in the premi- um midsize SUV segment with respect to performance, range, charging, dynamic handling and design. Another innovation is the E³ 1.2 electronics architecture, which takes digitalization to a new level in Audi vehicles, for example through the new Audi Assistant³ with an integrated interface to ChatGPT.⁴ ¹ Audi Q6 Sportback e-tron: electric power consumption (combined): 18.9–15.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ² This vehicle is manufactured locally by associated companies and available and sold exclusively in China. ³ Availability is dependent on vehicle model and model year. Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only).
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Language availability is country-specific. For information on country and language availability, please contact an Audi Partner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). ⁴ Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. For information on country and language availability, please contact an Audi Part- ner or visit the Audi configurator at www.audi.de (in German only). Further information on the Audi assistant at www.audi.de/technologie (in German only). ChatGPT is provided via Microsoft Azure® OpenAI Service. Microsoft, Azure and their logos are registered trademarks of Microsoft Corporation in the United States of America and/or other countries. The name “OpenAI” and the brand ChatGPT are the property of OpenAI. For technological reasons, the provision of incorrect information by AI systems cannot be completely ruled out. On matters relating to the vehicle, always consult the Owner’s Manual in case of doubt. ⁵ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.
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⁵ Audi A6 Sportback e-tron: electric power consumption (combined): 16.7–13.6 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁶ Audi A6 Avant e-tron: electric power consumption (combined): 17.5–14.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. ⁷ Range refers to the Audi A6 Sportback e-tron performance: electric power consumption (combined): 15.9–14.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.
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153 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Electric model offensive 8 Audi Q4 35 e-tron: electric power consumption (combined): 19.2–17.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 9 Audi Q4 Sportback 35 e-tron: electric power consumption (combined): 18.7–16.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 10 Audi S e-tron GT: electric power consumption (combined): 19.7–18.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 11 Audi RS e-tron GT: electric power consumption (combined): 22.1–18.4 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 12 Audi RS e-tron GT performance: electric power consumption (combined): 20.8–18.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 13 The model illustrated is a prototype that is not available as a series-production vehicle.
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13 The model illustrated is a prototype that is not available as a series-production vehicle. The Audi Q4 35 e-tron⁸ and Audi Q4 Sportback 35 e-tron,⁹ available since mid-2024, give customers easy access to premium electric mobility. These two well-equipped entry-level models increase the attractiveness of the product line even further. The Audi Q4 e-tron has already become the best-selling electric vehicle from Audi. The new Audi e-tron GT models are setting new performance standards. From now on, the model family will consist of three variants: the Audi S e-tron GT,¹⁰ the Audi RS e-tron GT¹¹ and the Audi RS e tron GT performance.¹² The Audi RS e-tron GT performance,¹² which was introduced in 2024, is the most powerful series-production vehicle available from Audi: Customers can enjoy an output of up to 680 kW (925 PS). China saw not only the debut of a spectacular show car in the form of the AUDI E concept,13 but also the first appearance of the new sister brand AUDI.
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China saw not only the debut of a spectacular show car in the form of the AUDI E concept,13 but also the first appearance of the new sister brand AUDI. Developed in China to meet the needs of local customers, the brand and the car offer the best of both worlds – the unmistakable Audi DNA combined with innovations from China.
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154 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photos: AUDI AG Among the company’s plug-in hybrids, the Audi A3 Sportback TFSI e,16 with its all-electric range of up to 143 kilometers (WLTP), enables sections of the route to be covered with zero local emissions. A smart drive management system and a powerful high-voltage battery ensure efficient driving. Expansion of the plug-in hybrid range A powerful liquid-cooled lithium battery gives the plug-in hybrids Audi Q7 TFSI e quattro14 and Audi Q8 TFSI e quattro15 an electric range of up to 90 kilometers (WLTP). 14 Audi Q7 SUV 55 TFSI e quattro: fuel consumption (weighted combined): 1.4–1.2 l/100 km; electric power consumption (weighted combined): 29.1–27.8 kWh/100 km; CO₂ emissions (weighted combined): 33–28 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.5–9.8 l/100 km; CO₂ class with empty battery: G.
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15 Audi Q8 SUV 55 TFSI e quattro: fuel consumption (weighted combined): 1.6–1.2 l/100 km; electric power consumption (weighted combined): 30.4–27.7 kWh/100 km; CO₂ emissions (weighted combined): 37–27 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 10.9–8.9 l/100 km; CO₂ class with empty battery: G. 16 Audi A3 Sportback TFSI e: fuel consumption (weighted combined): 0.4–0.3 l/100 km; electric power consumption (weighted combined): 16.6–14.6 kWh/100 km; CO₂ emissions (weighted combined): 9–6 g/km; CO₂ class (weighted combined): B; fuel consumption with empty battery (combined): 5.4–4.9 l/100 km; CO₂ class with empty battery: D–C.
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155 Audi Report 2024 FinanceStrategy & Company ESG Appendix New efficient combustion-engine models Another model to be launched on the new platform for combustion-engine vehicles (Premium Platform Combustion, PPC) in the year under review was the new Audi A5.18 Its improved mild hybrid technology enables drivers to cover some distances electrical- ly, for even greater efficiency. Another special feature is the optional quattro ultra all- wheel-drive system. With this quattro technology, the drive torque can be distributed flexibly to maximize efficiency while also providing all the advantages of all-wheel drive for enhanced driving safety and dynamic handling. The Audi A6 stands for the long and successful history of Audi in the full-size class. The new Audi A6 Avant19 celebrated its world premiere in March 2025. The Audi Q5 has ranked among the most popular B-segment SUVs in Germany and Europe for more than 15 years. In the year under review, Audi launched the third generation of this successful model with the new Audi Q5 SUV.17 It is the first SUV model on the PPC. 17 Audi Q5 SUV: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 200–148 g/km; CO₂ class: G–E.
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17 Audi Q5 SUV: fuel consumption (combined): 8.8–5.9 l/100 km; CO₂ emissions (combined): 200–148 g/km; CO₂ class: G–E. 18 Audi A5: fuel consumption (combined): 7.8–4.8 l/100 km; CO₂ emissions (combined): 178–125 g/km; CO₂ class: G–D. 19 Audi A6 Avant: fuel consumption (combined): 8.0–5.0 l/100 km; CO₂ emissions (combined): 181–130 g/km; CO₂ class: G–D. Photos: AUDI AG
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156 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi battery expertise Launching forward-looking technologies and mastering key elements of automotive engineering – these are two factors that contribute to sustainable business development in the Audi Group. That is why the company is consistently expanding its core competences in the field of high-voltage batteries: For example, Audi operates the center of excellence for high-voltage batteries in Neckarsulm, where prototypes of new high-voltage battery modules are tested for various electric vehicles, and the battery testing center in Gaimersheim for designing and devel- oping battery cells. Audi also assembles batteries itself, with the Ingolstadt site currently putting together up to 1,000 high-voltage batteries a day, initially for the Audi Q6 e-tron series. The company is thus gaining important experience that it intends to use in the future to produce its own battery modules. Photo: AUDI AG Consistent implementation of the Audi BEV strategy The models presented during the year under review are milestones in the company’s electrification strategy: > Dynamic handling, aerodynamics, efficiency, digital customer experience, design and quality – these are the hallmarks that define every Audi model, regard- less of its drive system.
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The company thus offers its customers attractive vehicles for each segment that all carry the Audi DNA. > Audi clearly committed to electric mobility at an early stage. In the year under review, the company already had 10 all-electric models in its portfolio, six of which were presented in 2024 alone. > Audi will expand its electric portfolio successively in the coming years. In the medium term, the company wants to offer an all-electric vehicle in all core segments. > A total of around 20 new models with different powertrain types are celebrating their market intro- duction in 2024 and 2025. Audi is thus positioning itself robustly and flexibly for the transition period from combustion engine to electric drive. > Audi subjects every model to a comprehensive life cycle assessment (LCA), which reveals the envi- ronmental impact of the models throughout their entire life cycle. The results are recorded in the decarbonization index20 (DCI), among other places. The DCI is a strategic indicator on the path to net carbon neutrality.21 It quantifies the average emis- sions of CO₂ and CO₂ equivalents22 over the entire life cycle of the Audi passenger car portfolio and is stat- ed in metric tons of CO₂ per vehicle.
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The Audi Group intends to reduce the DCI to zero across the entire value chain by 205023 at the latest. Structural realignment to accelerate vehicle development The company revised its structures in the year under review in order increase the pace of innovation: > By establishing the “Innovation and Software- Defined Vehicle” (SDV) division in the year under review, under the leadership of Geoffrey Bouquot, AUDI AG is accelerating its transformation into a software-centric organization. Audi intends to continue the brand’s signature “Vorsprung durch 20 The internal decarbonization index (DCI) is a key performance indicator (KPI) with which the Volkswagen Group records and manages CO₂ emissions along the entire automotive value chain. It describes the average emissions (measured in CO₂ equivalents) over the entire life cycle of the Audi passenger car portfolio in the regions of Europe (EU 27, United Kingdom, Norway and Iceland), China (FBU, fully built up) and USA and is stated in metric tons of CO₂ equivalents per vehicle. The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3).
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The DCI includes the direct and indirect emissions that are produced at the individual production sites (Scope 1 and 2) as well as further direct and indirect emissions that occur over the life cycle of Audi vehicles (Scope 3). The utilization phase, as part of the life cycles of Audi vehicles, is calculated over 200,000 kilometers and with reference to legal requirements for fleet values in the sales regions. The CO₂ intensity of the charging current for electrified and partly electrified vehicles is also calculated on the basis of region-specific electricity mixes. The basis for calculating supply chain and recycling emissions is provided by verified vehicle life cycle assessments (according to standards ISO 14040 and ISO 14044, see life cycle assessments: Documents & Policies | audi.com). 21 Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO₂ emissions caused by the products or activities of Audi and/or currently unavoidable CO₂ emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account.
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Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO₂ emissions produced are not taken into account. 22 CO₂ equivalents (CO₂e) are a unit of measurement used to standardize the climate impact of various greenhouse gases. Greenhouse gas emissions are converted into CO₂ equiva- lents and summarized. 23 To achieve net carbon neutrality, Audi has defined a transformation pathway with clearly defined interim targets that depend heavily on market developments and the pace at which electric mobility is expanded. Volatile markets and the uncertain economic and political climate stand in the way of making reliable statements about interim targets up to the year 2050.
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157 Audi Report 2024 FinanceStrategy & Company ESG Appendix New mobility concepts In the coming years, the Volkswagen Group wants to com- bine all of its brands’ mobility services on one platform. The aim is that automated driving together with new mobility concepts will enable the Group’s transition to a leading provider of new mobility in the future. A vehicle fleet that can realize the different services from car rental to car subscription through to ride pooling should ensure high availability, capacity utilization and profitability. Audi has the different needs of customers firmly in its sights and is currently focusing on developing new mobility concepts in two areas: vehicle on demand (VOD) and mobility on demand (MOD). MOD focuses on getting the commuter where they want to go without driving there themselves, for example, in a taxi. In the long term, fully automated driving is to enable this new mobility concept. In contrast, VOD involves actually driving the vehicle. In this scenario, customers are given access to a vehicle for a limited period of time. Audi is already offering such ser- vices in certain regions with its “Audi on demand rent” and “Audi on demand subscribe” solutions and showing how Mobility as a Service works in practice.
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Audi is already offering such ser- vices in certain regions with its “Audi on demand rent” and “Audi on demand subscribe” solutions and showing how Mobility as a Service works in practice. The special thing about this is that “Audi on demand rent” allows custom- ers to find the perfect Audi for every occasion. They can choose the vehicle model, the interior equipment and the color to suit their needs. “Audi on demand rent” and “Audi on demand subscribe” complement the classic leasing of vehicles by offering a more flexible alternative. In addition to the “Audi on demand” services that have already been successfully launched in Germany, a further mobility service was piloted in 2024. The mobility platform Giravolta allows customers of a car dealership to view the dealership’s available fleet and book vehicles at short notice. Some other use cases trialled in this pilot project include employees booking vehicles from their employer’s fleet as well as special use cases in local tourism. Further pilot projects along these lines are planned for 2025. Technik” – a slogan largely inspired by technologies such as quattro drive and Aluminum Space Frame – and carry it forward into the digital age.
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Further pilot projects along these lines are planned for 2025. Technik” – a slogan largely inspired by technologies such as quattro drive and Aluminum Space Frame – and carry it forward into the digital age. Bouquot also took over as head of Technical Development on January 1, 2025, as the division was merged with his previous area of responsibility. > In the year under review, Audi consistently aligned its Technical Development division with the princi- ples of a matrix organization. As a result, product line management now bears more entrepreneurial responsibility, while the lines of responsibility within Technical Development are more clearly structured. The intention behind this is to speed up the process of bringing models to market maturity, while also supporting the paradigm shift toward software- centric vehicle development. Strengthening innovation management worldwide The Audi Group has teams at its international hubs that continuously monitor mobility trends and analyze new technologies. Synergies are created by Group-wide collaboration across all Volkswagen Group brands.
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Strengthening innovation management worldwide The Audi Group has teams at its international hubs that continuously monitor mobility trends and analyze new technologies. Synergies are created by Group-wide collaboration across all Volkswagen Group brands. Within Germany, innovation is spearheaded by the innovation departments of Audi Development in Neckarsulm and Ingolstadt, with support from Audi Business Innovation GmbH (Munich) as well as from A4nXT Venture Clienting and P-Lab for product innovations (both in Ingolstadt). In China, this topic is being driven forward by the R&D Innovation Hub and the Audi Innovation Research Office (AIR), in the USA by the ADAS Hub (Advanced Driving Assistance System), among others, and in Israel by the Konnect Innovation Hub (Volkswagen Group). Audi launched a number of new projects and initiatives in the year under review aimed at identifying future technologies, developing them to market maturity and reliably integrating them into its vehicles. > New formats such as the “New Innovation” initia- tive and the “Minds & Makers Innovation Partner Day” give internal innovators the opportunity to engage directly with established global companies and start-ups that have been selected for their expertise in cutting-edge technologies.
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The aim here is for Audi to familiarize itself with its partners’ innovations and to enable quick decisions on future collaborations. > Audi works together with Volkswagen Group Innova- tion, the Group-wide incubator for innovative vehicle and mobility solutions. Among other activities, the unit operates innovation hubs all over the world and is responsible for the cross-brand open innovation platform, which is designed to bring together the ideas and partnerships of all Group brands for the purpose of leveraging synergies between the brands in the early development phase. > Audi plays an active role in AI Lab, including on its Supervisory Board. Established within the Volkswagen Group, this new company identifies new product ideas related to artificial intelligence (AI) across the globe. AI Lab then develops promis- ing concepts into early prototypes, if necessary Photo: AUDI AG
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158 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG together with external partners. These prototypes are submitted to the Group brands so they can review them and reach a decision. Strong partnerships for worldwide success Audi and the Volkswagen Group rely on strong partner- ships around the world to quickly and cost-effectively develop smart, connected vehicles that are precisely tailored to market-specific customer requirements: > Jointly creating the electronics architecture and soft- ware for next-generation software-defined vehicles (SDVs): that is the goal of the joint venture Rivian and Volkswagen Group Technologies. This joint venture combines Rivian’s market-leading software and electri- cal hardware technology with the Volkswagen Group’s global reach and technological leadership in vehicle platforms. Innovations emerging from the joint ven- ture are also to be used in Audi models in future. > Mobileye is a global provider of autonomous driving technologies based in Jerusalem. The Volkswagen Group and Mobileye have been collaborating on advanced driver assist systems for some time. In the year under review, an agreement was reached that Mobileye will also provide technologies for advanced level 2 driving functions (partly automated driving) for the Volkswagen Group in the future.
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In the year under review, an agreement was reached that Mobileye will also provide technologies for advanced level 2 driving functions (partly automated driving) for the Volkswagen Group in the future. In addition, Volkswagen is working with Mobileye on level 3 functions (highly automated driving). Within the Audi Group, the Audi, Bentley and Lamborghini brands are planning to incorporate new premium-oriented driving functions based on this technology into their model portfolio. > Carizon, a joint venture between Cariad – that is, the software unit of the Volkswagen Group – and Horizon Robotics, was established to rapidly develop automated driving solutions tailored to the Chinese market. Horizon Robotics is one of the leading providers of software solutions for advanced driver assist systems and autonomous driving in China. The joint venture between Cariad and Thundersoft – Carthunder – is also strengthening the Volkswagen Group’s regional development expertise under the motto “in China for China.” Carthunder was set up to quickly and efficiently produce customized software products and solutions for the Chinese market, of- fering customers a smarter and more intuitive digital mobility experience. Both joint ventures will also benefit Audi models destined for the Chinese market.
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Both joint ventures will also benefit Audi models destined for the Chinese market. > In the year under review, the company introduced the new sister brand AUDI – without the Four Rings logo, but written in capital letters. This new brand, under which Audi will work with its local partner SAIC, is intended to cement the company’s pio- neering role in the Chinese market. AUDI aims to appeal explicitly to young, tech-savvy customers in China. The first show car, the AUDI E concept,24 was unveiled in November 2024, with production sched- uled to start in 2025. 24 The model mentioned is a prototype that is not available as a series-production vehicle. AI in vehicle production Artificial intelligence (AI) is a key technology for Audi – in particular with a view to the future of production. By using AI, the company aims to boost the speed, sustainability and quality of its manufacturing operations. The first AI application was used in series production at Audi as early as 2018, and in the year under review the company identified more than 100 AI use cases at various maturity levels.
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The first AI application was used in series production at Audi as early as 2018, and in the year under review the company identified more than 100 AI use cases at various maturity levels. At pres- ent, the company is focusing on the use of AI in areas such as production process monitoring, system control and quality control, as well as on generative AI.
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Photo: AUDI AG Appendix 160 // Sustainable Development Goals (SDGs) of the United Nations 161 // Consumption and emission figures 163 // Auditor’s report 165 // GRI index
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160 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi is working on a robust infrastructure, promoting sustainable industrialization and supporting innovations. Audi meets the challenges of urbanization with intelligent, sustainable and urban mobility concepts. With production as environmen- tally friendly as possible, Audi also fosters sustainable consumption. Re- source and energy efficiency are two key elements in this context. Audi produces and develops products with the goal of enabling climate-friendly individual mobility. Audi is committed to long-term, wide-scale economic growth, full and produc- tive employment and humane work for everyone. Audi links its sustainability activities to the Sustainable Development Goals of the United Nations. In doing so, it places the spotlight on the five goals where the biggest difference can be made. A At the 2015 United Nations (UN) General Assembly, 193 states adopted Agenda 2030, which lays out 17 goals – the “Sustainable Development Goals” (SDGs). SDGs combine the social, environmental and economic dimensions of sustainable development.
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SDGs combine the social, environmental and economic dimensions of sustainable development. The underlying rationale is that social progress is not possible in the long run if the limits of the planet are not respected. In this context, Agenda 2030 explicitly states that the focus should be on the weakest and most vulnerable so as to leave no one behind. Agenda 2030 stands for a global understanding of prosperity that extends beyond the constricting concept of per capita income. At issue is reshaping economies toward more sustainable development, for example through responsible consumption and produc- tion patterns and clean as well as affordable energy. For instance, it is becoming clear that climate policy, sustainable development and the eradication of poverty are inseparably connected. The SDGs provide an essen- tial compass for the entire international community. Audi aligns its activities with the Sustainable Devel- opment Goals. Internal workshops were organized to determine which five sustainability goals the company can influence the most (see below). For this purpose, the topics and results of the Audi materiality analysis were compared with the SDGs. Of course, Audi endeav- ors to make a comprehensive contribution.
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For this purpose, the topics and results of the Audi materiality analysis were compared with the SDGs. Of course, Audi endeav- ors to make a comprehensive contribution. The compa- ny therefore also works toward SDGs other than the five central ones listed below, and the Audi Report contains examples of this for each material topic. Audi is a participant of the United Nations Global Compact (UN GC), the world’s largest initiative for sustainable corporate governance. This membership in one of the most active platforms for dialogue among industry, civil society and politics is an important pillar of stakeholder management. Audi reports on its progress with regard to the implementation of the 10 principles of the Global Compact and its activities to promote sustainable development as part of its annual Communication on Progress, which is available on the website of the UN Global Compact. AUDI AG | UN Global Compact Audi supports the UN Global Compact SDGs at a glance All Agenda 2030 goals can only be achieved if nobody is left behind: 17 Sustainable Development Goals (SDGs) of the United Nations
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
551
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audi.pdf
|
FinanceStrategy & Company ESG Appendix 161 Audi Report 2024 Fuel consumption, combined (l/100 km) CO₂ emissions, combined (g/km) CO₂ class Models WLTP specification WLTP specification Audi A1 allstreet 6.2–5.7 141–130 E–D Audi A1 Sportback 6.5–5.2 149–118 E–D Audi Q2 8.3–4.8 189–125 G–D Audi A3 Sedan 9.4–4.4 213–115 G–D Audi A3 Sportback 9.5–4.4 217–117 G–D Audi A3 allstreet 6.2–5.0 141–123 E–D Audi Q3 9.1–5.4 207–140 G–E Audi Q3 Sportback 9.0–5.4 205–142 G–E Audi A5 Sedan 7.8–4.8 178–125 G–D Audi A5 Avant 8.0–4.9 182–128 G–D Audi Q5 SUV 8.8–5.
|
161
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
552
|
audi.pdf
|
8–4.8 178–125 G–D Audi A5 Avant 8.0–4.9 182–128 G–D Audi Q5 SUV 8.8–5.9 200–148 G–E Audi Q5 Sportback 8.8–5.9 199–148 G–E Audi A6 Avant 12.7–5.3 289–138 G–E Audi A6 Sedan 9.1–5.1 206–133 G–D Audi A7 Sportback 12.6–5.3 285–138 G–E Audi Q7 SUV 12.7–7.8 289–204 G Audi A8 12.3–7.0 278–183 G Audi Q8 SUV 13.6–8.0 310–210 G Bentley Bentayga 13 296 G Lamborghini Urus 14.1 320 G Lamborghini Huracán 14.9–13.9 338–328 G All data apply to features of the German market. As of: February 12, 2025 Consumption and emission figures
|
161
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
553
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 162 Audi Report 2024 Consumption and emission figures Models Fuel consumption weighted, combined (l/100 km) Electric power consumption weighted, combined (kWh/100 km) CO₂ emissions weighted, combined (g/km) CO₂ class weighted, combined Fuel consumption with empty battery, combined (l/100 km) CO₂ class with empty battery Plug-in hybrid vehicles WLTP specification WLTP specification WLTP specification WLTP specification Audi A3 allstreet TFSI e 0.4–0.3 16.0–15.0 8–7 B 5.3–5.0 D–C Audi A3 Sportback TFSI e 0.4–0.3 16.6–14.6 9–6 B 5.4–4.9 D–C Audi A6 Avant TFSI e 1.7–1.4 21.5–20.0 37–31 B 8.3–7.7 G Audi A6 Sedan TFSI e 1.6–1.1 21.
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162
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
554
|
audi.pdf
|
7–1.4 21.5–20.0 37–31 B 8.3–7.7 G Audi A6 Sedan TFSI e 1.6–1.1 21.1–18.7 36–24 B 8.2–7.1 G–F Audi A7 Sportback TFSI e 1.6–1.1 21.3–18.9 37–25 B 8.2–7.2 G–F Audi Q7 SUV TFSI e 1.4–1.2 29.1–27.8 33–28 B 10.5–9.8 G Audi A8 TFSI e 2.2–1.7 23.8–21.9 49–39 B 9.5–8.7 G Audi Q8 SUV TFSI e 1.6–1.2 30.4–27.7 37–27 B 10.9–9.8 G Bentley Flying Spur 1.4 29.3 33 B 10.7 G Bentley Continental GT 1.3 27.7 29 B 10.
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162
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
555
|
audi.pdf
|
8 G Bentley Flying Spur 1.4 29.3 33 B 10.7 G Bentley Continental GT 1.3 27.7 29 B 10.3 G Bentley Continental GT Convertible 1.4 27.9 31 B 10.6 G Lamborghini Revuelto 11.9 10.1 276 G 17.8 G Lamborghini Urus SE 2.1 39.5 51.3 B 12.9 G Models Electric power consumption, combined (kWh/100 km) CO₂ emissions, combined (g/km) CO₂ class Fully electric vehicles WLTP specification WLTP specification Audi Q4 e-tron 19.2–16.1 0 A Audi Q4 Sportback e-tron 18.7–15.5 0 A Audi S e-tron GT 19.7–18.0 0 A Audi RS e-tron GT 21.1–18.4 0 A Audi A6 Avant e-tron 17.5–14.4 0 A Audi A6 Sportback e-tron 16.7–13.
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162
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
556
|
audi.pdf
|
1–18.4 0 A Audi A6 Avant e-tron 17.5–14.4 0 A Audi A6 Sportback e-tron 16.7–13.6 0 A Audi Q6 SUV e-tron 19.8–16.0 0 A Audi Q6 Sportback e-tron 18.9–15.6 0 A
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162
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
557
|
audi.pdf
|
163 Audi Report 2023 FinanceStrategy & Company ESG Appendix Auditor’s report The assurance engagement performed by EY relates exclusively to the German version of the combined annual and sustainability report of AUDI AG. The following text is a translation of the original German independent assurance report. To AUDI Aktiengesellschaft, Ingolstadt We have performed a limited assurance engagement on selected sustainability key figures for the year 2024 in the “Audi Report | Combined annual and sustainability report” of the AUDI Aktien- gesellschaft, Ingolstadt, (hereinafter the “Company”), which have been marked with the symbol “ ” in the report for the period from 1st of January to 31st of December 2024 (hereinafter the “report”). Our engagement exclusively refers to the disclosures marked with the “ ” symbol in the German PDF version of the report. Not subject to our assurance engagement are other references to disclosures made outside the report as well as further prior-year disclosures. Responsibilities of the executive directors The executive directors of the Company are responsible for the preparation of the report, which includes the selected key figures, with reference to the “GRI Sustainability Reporting Standards” (hereinafter “applicable criteria”).
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163
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: Yes
[Confidence]: 0.8
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
558
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audi.pdf
|
These responsibilities of the Company’s executive directors include the selection and application of appropriate methods for the preparation of the report and making assumptions and estimates about individual non-financial disclosures that are reasonable in the circumstances. Furthermore, the executive directors are responsible for such internal control as the execu- tive directors consider necessary to enable the preparation of a report that is free from material misstatement, whether due to fraud (manipulation of the report) or error. Independence and quality assurance of the auditor’s firm We have complied with the German professional requirements on independence as well as other professional conduct requirements. Our audit firm applies the national legal requirements and professional pronouncements – in particular the BS WP/vBP [“Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer”: Professional Charter for German Public Accountants/German Sworn Auditors] in the exercise of their Profession and the IDW Standard on Quality Management issued by the Institute of Public Auditors in Germany (IDW): Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)) and accordingly main- tains a comprehensive quality management system that includes documented policies and procedures with regard to compliance with professional ethical requirements, professional standards as well as relevant statutory and other legal requirements.
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163
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
559
|
audi.pdf
|
Responsibilities of the auditor Our responsibility is to express a conclusion with limited assurance on the key figures and disclosures that are marked with the symbol “ ” in the report based on our assurance engagement. We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits or Reviews of Historical Financial Information” issued by the IAASB. This standard requires that we plan and perform the assurance engagement to obtain limited assurance about whether any matters have come to our attention that cause us to believe that the selected key figures and disclosures that are marked with the symbol “ ” in the report of the Company are not prepared, in all material respects, in accordance with the GRI criteria. In a limited assurance engagement, the procedures performed are less extensive than in a reasonable assurance engagement, and accordingly, a substantially lower level of assurance is obtained. The selection of the assurance procedures is subject to the professional judgment of the auditor. GRI 2–5
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163
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
560
|
audi.pdf
|
164 Audi Report 2023 FinanceStrategy & Company ESG Appendix In the course of our assurance engagement we have, among other things, performed the following assurance procedures and other activities: > Gain an understanding of the structure of the sustainability organization and stakeholder engagement, > Inquiries of the executive directors and relevant employees involved in the preparation of the report about the preparation process, about the internal controls related to this process as well as disclosures in the report, > Identification and assessment of risks of material misstatement in the report, > Analytical procedures on selected key figures and disclosures marked with “ ” in the report, > Critical review of the draft report for plausibility and consistency > Assessment of the presentation of the selected key figures marked with the symbol “ ” in the report.
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164
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
561
|
audi.pdf
|
Assurance conclusion Based on the assurance procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the selected key figures and disclosures that are marked with the symbol “ ” in the report from 1st of January to 31st of December 2024 are not prepared, in all material respects, in accordance with the applicable criteria. Restriction of use We draw attention to the fact that the assurance engagement was conducted for the Company’s purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. As a result, it may not be suitable for another purpose than the aforementioned. Accordingly, the report is not intended to be used by third parties for making (financial) decisions based on it. Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.
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164
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
562
|
audi.pdf
|
Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect. General Engagement Terms and Liability The enclosed “General Engagement Terms for Wirtschafts prüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungsgesell schaften [German Public Auditors and Public Audit Firms]” as issued by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] on 01 January 2024 are applicable to this engagement and also govern our relations with third parties in the context of this engagement (eyidwaaben2024.pdf). In addition, please refer to the liability provisions contained there in no. 9 and to the exclusion of liability towards third parties. We accept no responsibility, liability or other obligations towards third parties unless we have concluded a written agreement to the contrary with the respective third party or liability cannot effectively be precluded.
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164
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
563
|
audi.pdf
|
We accept no responsibility, liability or other obligations towards third parties unless we have concluded a written agreement to the contrary with the respective third party or liability cannot effectively be precluded. We make express reference to the fact that we will not update the report to reflect events or circumstances arising after it was issued, unless required to do so by law. It is the sole responsibility of anyone taking note of the summarized result of our work contained in this report to decide whether and in what way this information is useful or suitable for their purposes and to supplement, verify or update it by means of their own review procedures. Stuttgart, 17 March 2025 EY GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Hinderer Rodriguez Wirtschaftsprüfer Wirtschaftsprüferin [German Public Auditor] [German Public Auditor]
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164
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
564
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audi.pdf
|
FinanceStrategy & Company ESG Appendix 165 Audi Report 2024 GRI index The Audi Group reported on the period from January 1, 2024, to December 31, 2024, in accordance with the GRI Standards. The information in this report was chosen on the basis of the materiality analysis performed in 2024. For the Content Index – Essentials Service, GRI Services reviewed that the GRI index has been presented in a way consistent with the requirements for reporting in accordance with the GRI Standards, and that the information in the index is clearly presented and accessible to the stakeholders. The German version of the Audi Report was used for this service.
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165
|
[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
565
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 166 Audi R eport 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 1. The organization and its reporting practices Disclosure 2-1 Organizational details 6 Disclosure 2-2 Entities included in the organization’s sustainability reporting 3 Disclosure 2-3 Reporting period, frequency and contact point 3, 180 Disclosure 2-4 Restatements of information 3 Disclosure 2-5 External assurance 3, 163 2. Activities and workers Disclosure 2-6 Activities, value chain and other business relationships 6 Disclosure 2-7 Employees 113 Information unavailable/incomplete: 2-7 b) Information by region is not available. These figures are not relevant for control purposes and are therefore not collected. Disclosure 2-8 Workers who are not employees Information unavailable/incomplete: Workers who are not employees only play a subordinate role at Audi. Key figures relating to workers who are not employees are therefore not relevant for control purposes and are not available. Universal Standards GRI 1: Foundation 2021
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166
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
566
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audi.pdf
|
FinanceStrategy & Company ESG Appendix 167 Audi R eport 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 3. Governance Disclosure 2-9 Governance structure and composition Company Management | audi.com Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-10 Nomination and selection of the highest governance body Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-11 Chair of the highest governance body The Chairman of the Supervisory Board of AUDI AG is a Member of the Board of Management of Volkswagen AG. He does not hold a management position at AUDI AG. Disclosure 2-12 Role of the highest governance body in overseeing the management of impacts 144 Disclosure 2-13 Delegation of responsibility for managing impacts 144 Disclosure 2-14 Role of the highest gover- nance body in sustainability reporting The Audi Board of Management approves and bears overall responsibility for the Audi Report.
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167
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
567
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audi.pdf
|
Disclosure 2-15 Conflicts of interest Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-16 Communication of critical concerns 147 Disclosure 2-17 Collective knowledge of the highest governance body Methods and Practices of the Board of Management and Supervisory Board | audi.com Disclosure 2-18 Evaluation of the performance of the highest governance body Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-19 Remuneration policies Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-20 Process to determine remuneration Remuneration of the Board of Management and Supervisory Board | audi.com Disclosure 2-21 Annual total compensation ratio Information unavailable/incomplete: A separate remuneration report is not published at Audi Group level by reason of an exemption by Volkswagen AG.
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167
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
568
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 168 Audi Report 2024 GRI 2: General Disclosures 2021 Disclosure Page Comments/omissions 4. Strategy, policies and practices Disclosure 2-22 Statement on sustainable development strategy 2, 5, 10, 23 144 Sustainability | audi.com Disclosure 2-23 Policy commitments 147 Compliance and integrity | audi.com Disclosure 2-24 Embedding policy commitments 147 Compliance and integrity | audi.com Disclosure 2-25 Processes to remediate negative impacts 147, 125 Compliance and integrity | audi.com Disclosure 2-26 Mechanisms for seeking advice and raising concerns 147 Compliance and integrity | audi.com For all important corporate decisions, statements from Com- pliance & Integrity as well as from other experts – for example from the Sustainability, Corporate Strategy and Legal Service departments – are a fixed component of the submissions to the Board of Management. Disclosure 2-27 Compliance with laws and regulations Confidentiality constraints: Any known cases of actual and suspected compliance viola- tions are isolated cases without a systemic cause. The total number of cases is not reported for confidentiality reasons (to protect business secrets).
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168
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
569
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audi.pdf
|
The total number of cases is not reported for confidentiality reasons (to protect business secrets). Disclosure 2-28 Membership associations Audi participates in a variety of volunteering initiatives, associations and community work groups to discuss ecological, economic and social issues with stakeholders. The main memberships in Germany can be found in the Lobbying Register for the Representation of Special Interests vis-à vis the German Bundestag and the Federal Government. Additionally, the company is active in major international multistakeholder initiatives with the focus on sustainability, such as the Aluminium Stewardship Initiative or the Global Battery Alliance. 5. Stakeholder engagement Disclosure 2-29 Approach to stakeholder engagement 61 Stakeholder Management | audi.com Disclosure 2-30 Collective bargaining agreements The proportion of AUDI AG employees to whom collective bargaining agreements apply is 93.8 percent. (Calculation of the key figure was changed in 2024.) The working and employment conditions of employees of AUDI AG who are not subject to collective bargaining agreements are determined based on the collective bargaining agreements that apply to other employees.
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168
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
570
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 169 Audi Report 2024 GRI 3: Material Topics 2021 Disclosure Page Comments/omissions Disclosure 3-1 Process to determine material topics 61 Stakeholder Management | audi.com Disclosure 3-2 List of material topics 64 Climate change and energy efficiency, reduction in environmental pollution (air pollution, substances of very high concern, microplastics), water stewardship, biodiversity, resource management and circular economy, fair working conditions and modern working forms, occupational health and safety (occupational health and safety – own workforce), corporate culture and equal opportunities (equal treatment and opportunities for all – own workforce), responsibility in the supply chain (social standards and human rights in the supply chain), responsible digitalization, vehicle safety, corporate citizenship (social commitment), sustainable corporate governance, compliance and integrity, sustainable business development.
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169
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
571
|
audi.pdf
|
Topic-specific disclosures Disclosure Page Comments/omissions Environmental Climate change and energy efficiency GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 68 GRI 302: Energy 2016 Disclosure 302-1 Energy consumption within the organization 68 Information unavailable/incomplete: 302-1 f) The process of collecting key figures including definition of scope is anchored in the Volkswagen standard 98000 (see Environmental Management at Audi | audi.com) and does not provide for extrapolation at overall site level. 302-1 g) The process of selecting relevant emissions and the emission factors used are anchored in Volkswagen standard 98000, as is the entire key figure collection process (see Environmental Management at Audi | audi.com). Generally, Audi uses the real emission factors of the energy suppliers. If this is not possible, calculations are made on the basis of the VDA’s standard factors. Disclosure 302-2 Energy consumption outside of the organization Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods.
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169
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: Yes
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9 you
|
[Guess]: No
[Confidence]: 0.9
|
572
|
audi.pdf
|
Disclosure 302-2 Energy consumption outside of the organization Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 302-3 Energy intensity 68 Disclosure 302-4 Reduction of energy consumption 68 Disclosure 302-5 Reductions in energy requirements of products and services 68 Information unavailable/incomplete: The information for the key figures from 302-5 b) and c) is not currently available and we are working toward making it available in the coming reporting periods.
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169
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
573
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 170 Audi Report 2024 GRI 305: Emissions 2016 Disclosure 305-1 Direct (Scope 1) GHG emissions 68 Disclosure 305-2 Energy indirect (Scope 2) GHG emissions 68 Disclosure 305-3 Other indirect (Scope 3) GHG emissions Decarbonization | audi.com Information unavailable/incomplete: Some of the information (305-3 c bis g) is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 305-4 GHG emissions intensity 68 Disclosure 305-5 Reduction of GHG emissions 68 Information unavailable/incomplete: Some of the information (305-5 c und 305-5 e) is not currently available and we are working toward making it available in the coming reporting periods. Disclosure 305-6 Emissions of ozone- depleting substances (ODS) Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods.
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170
|
[Guess]: Yes
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
574
|
audi.pdf
|
Disclosure 305-6 Emissions of ozone- depleting substances (ODS) Information unavailable/incomplete: The information is not currently available and we are working toward making it available in the coming reporting periods. Reduction in environmental pollution GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 81 GRI 305: Emissions 2016 Disclosure 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and other significant air emissions 81 Information unavailable/incomplete: Some of the information (305-7 c) is not currently available and we are working toward making it available in the coming reporting periods. Topic-specific disclosures Disclosure Page Comments/omissions Environmental Climate change and energy efficiency
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170
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
575
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 171 Audi Report 2024 Water stewardship GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 85 GRI 303: Water and Effluents 2018 Disclosure 303-1 Interactions with water as a shared resource 85 Disclosure 303-2 Management of water discharge-related impacts 85 Disclosure 303-3 Water withdrawal 85 Information unavailable/incomplete: A breakdown of total water withdrawal from each of the sources indicated in Disclosures 303-3 a) and 303-3 b) and types indicated in Disclosure 303-3 c) is not possible at present. Disclosure 303-4 Water discharge 85 303-4 a) Information is not available for ii. & iv. 303-4 c) All production sites are weighted according to the water stress present in the region. Necessary water manage- ment measures are derived from the assessment. 303-4 d) As with the entire process for collecting key figures, the process for identifying the relevant wastewater load and wastewater limits is anchored in the Volkswagen standard 98000 (see Environmental Management at Audi | audi.com). Owing to the size of the Group, Audi sites are subject to differ- ent legislation.
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171
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
576
|
audi.pdf
|
Owing to the size of the Group, Audi sites are subject to differ- ent legislation. Some incidents are dealt with at a local level. There is no Group data available on incidents at present for this reason. Disclosure 303-5 Water consumption 85 Information unavailable/incomplete: 303-5 b) & c) The information is not currently available and we are working toward making it available in the coming reporting periods. Topic-specific disclosures Disclosure Page Comments/omissions Environmental
|
171
|
[Guess]: No
[Confidence]: 0.95 0
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
577
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 172 Audi Report 2024 Biodiversity GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 92 GRI 304: Biodiversity 2016 Disclosure 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 92 Disclosure 304-2 Significant impacts of activities, products and services on biodiversity Audi endeavors to minimize the impacts of its business opera- tions and plants on biodiversity by implementing numerous biodiversity measures that go beyond the legal requirements and by preferring brownfield over greenfield projects whenever possible. Brownfield projects involve repurposing or redesign- ing previously developed land, while a greenfield project in- volves the construction of a new building on land not previous- ly developed. Impacts in terms of the introduction of invasive species, pests and pathogens, loss of biodiversity or changes to ecological processes that go beyond natural variations are not known and are estimated to be low. Disclosure 304-3 Habitats protected or restored 92 Topic-specific disclosures Disclosure Page Comments/omissions Environmental
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172
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: Yes
[Confidence]: 0.8
|
578
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 173 Audi Report 2024 GRI 306: Waste 2020 Disclosure 306-1 Waste generation and significant waste-related impacts 97 The Mission:Zero environmental program comprises a number of additional measures to reduce and avoid waste. Any waste that remains unavoidable is disposed of properly and in strict compliance with the legal requirements applicable at the site in question. The disposal method of the waste is documented. Waste data is recorded in the ABIS system at German sites and in similar systems at international sites, and is reported to the relevant authorities. All waste is disposed of by specialist waste management companies in order to reduce the impact of the waste generated at Audi. These specialist companies are audited and assessed by employees of the Audi environmental protection departments. Audi is not aware of any significant negative waste-related impacts during the reporting period.
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173
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
579
|
audi.pdf
|
These specialist companies are audited and assessed by employees of the Audi environmental protection departments. Audi is not aware of any significant negative waste-related impacts during the reporting period. Disclosure 306-2 Management of significant waste-related impacts 97 Disclosure 306-3 Waste generated 97 Disclosure 306-4 Waste diverted from disposal 97 Disclosure 306-5 Waste directed to disposal 97 Topic-specific disclosures Disclosure Page Comments/omissions Environmental Resource management and circular economy GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 97 GRI 301: Materials 2016 Disclosure 301-1 Materials used by weight or volume 97 The materials used are calculated based on the production figures of AUDI AG in 2024 and current disassembly studies for selected models in the various product lines. No further information for 2024 is available. It is currently not possible to break down the total weight into renewable and non- renewable materials. Use of renewable materials is to be continuously expanded in the future. Disclosure 301-2 Recycled input materials used Information unavailable/incomplete: The percentage of recycled input materials is currently not calculated for all models in the product portfolio.
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173
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
580
|
audi.pdf
|
Disclosure 301-2 Recycled input materials used Information unavailable/incomplete: The percentage of recycled input materials is currently not calculated for all models in the product portfolio. Audi plans to continuously increase the proportion of recycled input materi- als. Selected pilot projects, for example MaterialLoop, analyze the feasibility for potential use in series production. Disclosure 301-3 Reclaimed products and their packaging materials Information unavailable/incomplete: Information is currently not available in the required level of detail.
|
173
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
581
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 174 Audi Report 2024 Fair working conditions and modern working forms GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 110 GRI 401: Employment 2016 Disclosure 401-1 New employee hires and employee turnover 110 Information unavailable/incomplete: The key figures are currently not calculated by age group, gender and region. These are not relevant for control purposes. Disclosure 401-2 Benefits provided to full- time employees that are not provided to temporary or part-time employees 110 Disclosure 401-3 Parental leave 110 Information unavailable/incomplete: In general, all employees of AUDI AG are entitled to parental leave in accordance with the legal regulations. These key figures are not relevant for control purposes and are therefore not collected.
|
174
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
582
|
audi.pdf
|
These key figures are not relevant for control purposes and are therefore not collected. GRI 402: Labor/Management Relations 2016 Disclosure 402-1 Minimum notice periods regarding operational changes 110 GRI 404: Training and Education 2016 Disclosure 404-1 Average hours of training per year per employee 110 Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs 110 Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews 110 Topic-specific disclosures Disclosure Page Comments/omissions Social
|
174
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
583
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 175 Audi Report 2024 Occupational health and safety GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 116 GRI 403: Occupational Health and Safety 2018 Disclosure 403-1 Occupational health and safety management system 116 Disclosure 403-2 Hazard identification, risk assessment and incident investigation 116 Disclosure 403-3 Occupational health services 116 Disclosure 403-4 Worker participation, consultation and communication on occupational health and safety 116 Disclosure 403-5 Worker training on occupational health and safety 116 Disclosure 403-6 Promotion of worker health 116 Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 116 Disclosure 403-8 Workers covered by an occupational health and safety management system 116 Disclosure 403-9 Work-related injuries 116 Information unavailable/incomplete: Information is currently not available in the required level of detail. Disclosure 403-10 Work-related ill health Legal prohibitions: For reasons of data privacy, we cannot publish any key figures related to work-related ill health. Topic-specific disclosures Disclosure Page Comments/omissions Social
|
175
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
584
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 176 Audi Report 2024 Corporate culture and equal opportunities GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 119 GRI 405: Diversity and Equal Opportunity 2016 Disclosure 405-1 Diversity of governance bodies and employees 119 Disclosure 405-2 Ratio of basic salary and remuneration of women to men 119 Through collective bargaining agreements involving the unions and management, AUDI AG undertakes to ensure that part- time and full-time employees receive equitable and fair pay; the activity alone determines remuneration. GRI 406: Non-discrimination 2016 Disclosure 406-1 Incidents of discrimination and corrective actions taken 119 Confidentiality constraints: 406-1 iii, 406-1 iv: Details are not published for confidentiality reasons. Responsibility in the supply chain GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 125 GRI 204: Procurement Practices 2016 Disclosure 204-1 Proportion of spending on local suppliers 125 Audi is an internationally operating company and maintained production facilities in 13 different countries around the world during the reporting period.
|
176
|
[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
585
|
audi.pdf
|
Services and products are pro- cured on the basis of a global supplier base, with a focus on resource-optimized procurement. The term “major operations” is used to refer to sites in Europe and North America; associated companies in China are not included in this analysis. The term “local” refers to the entire region in which the respective operation is located. Under these assumptions, the volume of products and services pro- cured locally by major operations accounted for 61.1 percent of the total Audi procurement volume in the year under review. Of that figure, Europe accounted for 52.2 percent (Germany: 35.3 percent) and North America for 8.9 percent. GRI 308: Supplier Environmental Assessment 2016 Disclosure 308-1 New suppliers that were screened using environmental criteria 125 Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken 125 Topic-specific disclosures Disclosure Page Comments/omissions Social
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176
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
586
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 177 Audi Report 2024 GRI 414: Supplier Social Assessment 2016 Disclosure 414-1 New suppliers that were screened using social criteria 125 Disclosure 414-2 Negative social impacts in the supply chain and actions taken 125 Responsible digitalization GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 130 GRI 418: Customer Privacy 2016 Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data 130 Vehicle safety GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 134 GRI 416: Customer Health and Safety 2016 Disclosure 416-1 Assessment of the health and safety impacts of product and service categories 134 Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services 134 Confidentiality constraints: 416-2 iii: The total number of cases is not reported for confidentiality reasons.
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177
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
587
|
audi.pdf
|
Corporate citizenship GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 138 Topic-specific disclosures Disclosure Page Comments/omissions Social
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177
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
588
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 178 Audi Report 2024 Governance Sustainable corporate governance GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 144 GRI 207: Tax 2019 Disclosure 207-1 Approach to tax As a Group with international operations, Audi is aware of its social responsibility to comply with tax regulations (tax compliance) and regards it as its duty to be a responsible and reliable taxpayer (tax governance). It is of the utmost importance for the company to duly fulfill its tax obligations worldwide and minimize tax risks while safeguarding its shareholders’ interests. AUDI AG therefore regards tax governance and tax compliance as important tasks and integrates them comprehensively into its risk management processes and systems. In order to deal with tax risks in a responsible manner, an internal Tax Compliance Management System has been introduced throughout the Group. Transactions between Group companies are carried out in accordance with the arm’s length principle so as to comply with the applicable OECD guidelines for multinational companies. Inappropriate legal arrangements are to be avoided; this applies in particular to aggressive tax planning.
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178
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.95
|
589
|
audi.pdf
|
Inappropriate legal arrangements are to be avoided; this applies in particular to aggressive tax planning. Further information on the company’s approach to tax (based on GRI 207: Tax 2019) is available at audi.com Disclosure 207-2 Tax governance, control and risk management audi.com Disclosure 207-3 Stakeholder engagement and management of concerns related to tax audi.com Disclosure 207-4 Country-by-country reporting audi.com Compliance and integrity GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 147 GRI 205: Anti-corruption 2016 Disclosure 205-1 Operations assessed for risks related to corruption 147 Disclosure 205-2 Communication and training about anti- corruption policies and procedures 147 The key figures are not broken down by region for the information on the governance body, as it is located in Germany. Topic-specific disclosures Disclosure Page Comments/omissions
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178
|
[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
590
|
audi.pdf
|
FinanceStrategy & Company ESG Appendix 179 Audi R eport 2024 Disclosure 205-3 Confirmed incidents of corruption and actions taken 147 GRI 206: Anti-competitive Behavior 2016 Disclosure 206-1 Legal actions for anti- competitive behavior, antitrust and monopoly practices Confidentiality constraints: Any cases of actual and suspected violations of antitrust law are isolated cases. The total number of cases is not reported for confidentiality reasons. GRI 415: Public Policy 2016 Disclosure 415-1 Political contributions Donations to political parties are not permitted in line with the funding criteria set out in the AUDI AG “Support Guidelines for Corporate Citizenship.” Further information can be found at: Support Guidelines for Corporate Citizenship | audi.com Sustainable business development GRI 3: Material Topics 2021 Disclosure 3-3 Management of material topics 151 GRI 201: Economic Performance 2016 Disclosure 201-1 Direct economic value generated and distributed 32 Disclosure 201-2 Financial implications for the organization and other risks and opportunities due to climate change 56 Disclosure 201-4 Financial assistance received from government Audi Fact Pack Topic-specific disclosures Disclosure Page Comments/omissions Governance
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179
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
591
|
audi.pdf
|
Publication details AUDI AG Financial Communication/ Analytics, Investor Relations I/FU-5 Auto-Union-Straße 1 85045 Ingolstadt Germany Email: ir@audi.de audi.com/investor-relations LinkedIn: linkedin.com/company/audi-ag Concept & layout: C3 Creative Code & Content GmbH Berlin Read how AUDI AG lives sustainability in practice, background information on the Audi Agenda and further details about products and services at audi.com. Photo: AUDI AG
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180
|
[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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0
|
nestle.pdf
|
Refresh the World. Make a Difference. 2022 BUSINESS & SUSTAINABILITY REPORT
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1
|
[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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1
|
nestle.pdf
|
2THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CONTENTS CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY SUSTAINABLE AGRICULTURE 47 We build loved brands that bring joy to our consumers’ lives with beverage choices for all occasions, tastes and lifestyles. Our growth strategy is grounded in our core values and commitment to social and environmental responsibility. CHAIRMAN & CEO MESSAGE 3 BOARD OF DIRECTORS 5 EXECUTIVE SUMMARY 6 OUR COMPANY 12 At a Glance 13 How We Operate 14 Innovation 15 Financial Highlights 17 Governance & Management 18 Priority Topics 21 Stakeholder Engagement & Partnerships 22 PORTFOLIO: BEVERAGES FOR ALL 31 WATER LEADERSHIP 24 PACKAGING: WORLD WITHOUT WASTE 36 PEOPLE & COMMUNITIES 51 CLIMATE 43 ABOUT THIS REPORT 69 DATA APPENDIX 70 Financial and Portfolio Data 71 Packaging 76 Water 77 Greenhouse Gas Emissions & Waste 78 Workplace,
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2
|
[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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2
|
nestle.pdf
|
Safety & Giving Back 80 Human Rights & Agriculture 83 Definitions of Priority Topics 84 Assurance Statements 86 REPORTING FRAMEWORKS & SDGs 87 Human Rights 52 Safety & Health 55 Diversity, Equity & Inclusion 56 Giving Back to Our Communities 60 Economic Empowerment 62 OPERATIONS HIGHLIGHTS 63 Asia Pacific 64 Europe, Middle East & Africa 65 Latin America 66 North America 67 Global Ventures/Bottling Investments Group 68 SCOPE OF THIS REPORT This 2022 Business & Sustainability Report is The Coca-Cola Company’s fifth report to integrate overall business and sustainability performance, data and context, reflecting our continued journey toward driving sustainable business practices into our core strategy. Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our bottling partners), as applicable.
|
2
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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3
|
nestle.pdf
|
Except as otherwise noted, this report covers the 2022 performance of The Coca-Cola Company and the Coca-Cola system (our company and our bottling partners), as applicable. As used in this report, the terms “material,” “materiality,” “immaterial,” “substantive,” “significant” and other similar terminology are not used, or intended to be construed, as they have been defined by or construed in accordance with the securities laws or any other laws of the United States or any other jurisdiction or as they are used in the context of financial statements and financial reporting. For detailed information on the scope of this report, please see About This Report on page 69.
|
2
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[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
4
|
nestle.pdf
|
3THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY CHAIRMAN & CEO MESSAGE The Coca-Cola Company’s purpose is to refresh the world and make a difference. We have remained true to that purpose for 137 years, and I am as encouraged today about the future of our business as I have ever been. Our strategy is clear. It’s centered around people— our consumers and employees—and driving sustainable solutions that build resilience into our business to respond to current and future challenges, while creating positive change for the planet. GREAT BRANDS, BOLD EXPERIMENTATION As a total beverage company, we are committed to offering people more of the drinks they want across a range of categories and in a variety of sizes. In 2022, we launched 246 low- or no-sugar beverages and continued to see double- digit growth for Coca-Cola Zero Sugar, which is now available in more than 170 markets. This helped to drive our volume of low- and no-calorie beverage sales to 29% of total volume.
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3
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[Guess]: No
[Confidence]: 0.9 the paragraph does
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
|
5
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nestle.pdf
|
This helped to drive our volume of low- and no-calorie beverage sales to 29% of total volume. We’re driving the most significant marketing transformation in our history, focused on digital-first engagement with consumers. We’re combining partnerships, technology and our consumers’ passions to create unforgettable experiences in music, gaming and sports, including: • Coca-ColaCreations: This global innovation platform lends the iconic Coca-Cola brand to new expressions, driven by collaboration, creativity and cultural connection. Launched in 2022, we introduced five limited-edition drinks that drew inspiration from music, gaming and culture. These were complemented with experimental packaging designs and various digital experiences. • SpriteLimelight: A music and cultural extension of the brand’s global platform “Heat Happens,” Sprite Limelight aims to unite fans from different cultures and lifestyles by bringing together different artists from around the world. We’re also experimenting with new drinks. We’ve launched Jack Daniel’s & Coca-Cola as a ready-to-drink cocktail through a relationship with Brown-Forman. This is one example of our ongoing journey to bring Coke to consumers in new and dynamic ways. We take the new responsibilities that come with our entry in this space very seriously.
|
3
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.9
|
6
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nestle.pdf
|
This is one example of our ongoing journey to bring Coke to consumers in new and dynamic ways. We take the new responsibilities that come with our entry in this space very seriously. As a result, we’ve embedded our Global Policy on Alcohol Responsibility into our business processes to ensure we grow our alcohol brands in a responsible and sustainable way. SUSTAINABILITY IS CORE TO OUR BUSINESS STRATEGY Water: Water is a priority for our company because it is the first ingredient in all our beverages and is essential to the communities we serve. As a local business operating in more than 200 countries and territories, we have a responsibility to help protect critical resources. Our 2030 Water Security Strategy focuses on increasing water security. We work with partners to provide access to a steady supply of clean water for people and ecosystems in the areas where we operate and source ingredients. We recently announced a more focused effort to prioritize the most water- stressed regions. As we’ve done since 2015, we’ll continue to replenish the water we use in our finished beverages to nature and communities. In 2022, we replenished 159%. JamesQ uincey Chairman and CEO
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3
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
7
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nestle.pdf
|
4THE COCA-COLA COMPANY 2022 BUSINESS & SUSTAINABILITY REPORT CEO MESSAGE EXECUTIVE SUMMARYCONTENTS AGRICULTUREPORTFOLIO DATA APPENDIXPACKAGING FRAMEWORKSWATER OPERATIONSCLIMATE PEOPLEOUR COMPANY Packaging: We seek to drive a circular economy for our packaging because this helps to reduce waste and carbon emissions. We’re working to use more recycled content in our packaging, to expand our use of refillable bottles, and to collect packaging for recycling through our World Without Waste initiative. We also partner to design new solutions for packaging. For example, we licensed our technology for a 100% plant-based plastic bottle to a company building a commercial- scale facility in Germany. This bio-based plastic packaging has a lower carbon footprint than other plastics. While we’re making progress, we know there is more work to be done. In 2022, we collected 61% of the equivalent bottles and cans that we introduced into the market and used 15% rPET in our bottles. To galvanize collective action, we invest in solutions and partnerships across industry, governments and society. In 2022, we became a Strategic Partner of the Ellen MacArthur Foundation.
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4
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.95
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[Guess]: No
[Confidence]: 0.9
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[Guess]: No
[Confidence]: 0.9
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8
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nestle.pdf
|
To galvanize collective action, we invest in solutions and partnerships across industry, governments and society. In 2022, we became a Strategic Partner of the Ellen MacArthur Foundation. This group includes companies within key industry sectors that can help drive the transition to a circular economy. Climate: Our water, packaging and climate goals are interconnected. For example, by creating a circular economy for packaging, we can lower our carbon footprint. By approaching water stewardship from a basin perspective, we participate in initiatives that increase communities’ resilience to extreme weather events, alongside our partners. Our approach to climate is rooted in science, and we’ve set a science-based target to reduce absolute greenhouse gas emissions by 25% by 2030, against a 2015 baseline. As of 2022, we have reduced our emissions by 7% against this baseline. A COMPANY FOR FUTURE GENERATIONS We’re committed to creating a culture of inclusion and belonging and to driving meaningful change in our communities. By 2030, we aspire to be 50% led by women globally. Today, 39% of our senior leaders are women.
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4
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[Guess]: No
[Confidence]: 0.95
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
[Guess]: Yes
[Confidence]: 0.9
|
[Guess]: No
[Confidence]: 0.9
|
9
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nestle.pdf
|
By 2030, we aspire to be 50% led by women globally. Today, 39% of our senior leaders are women. The Coca-Cola Foundation, the philanthropic arm of The Coca-Cola Company, contributed $94.8 million to 301 organizations around the world in 2022 to help create a better shared future for the communities our business serves. Our continued success would not be possible without our people. I am grateful for the company and system employees who live our purpose every day. Their collective passion and focus to build loved brands and make a difference in the world is how our business will continue to thrive for generations to come. JamesQ uincey Chairman and Chief Executive Officer April 26, 2023 Our strategy is clear. It’s centered around people—our consumers and employees—and driving sustainable solutions that build resilience into our business to respond to current and future challenges, while creating positive change for the planet.”
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4
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 1.0
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[Guess]: No
[Confidence]: 0.95
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