Volkswagen Group (VOW) 7th virtual ESG Conference for Investors and Analysts summary

Key themes and agenda

• The conference focused on sustainability, workforce transformation, information security, and green financing, featuring presentations from HR, information security, and sustainability leaders.

• Sessions included updates on workforce transition, cybersecurity, and the company's sustainability strategy, with Q&A after each.

• Presentations included forward-looking statements, with a disclaimer for participants.

Sustainability strategy and ESG commitments

• The regenerate+ strategy aims for nature- and society-positive mobility, guided by five core commitments and 12 KPIs across four dimensions.

• Achieved a 50.4% reduction in CO2 emissions at production sites since 2018, with a 2040 target for all factories to be net carbon neutral and 40% circular materials in new vehicles.

• Surpassed 2025 environmental targets early, including a 79.4% reduction in waste and 62.8% reduction in CO2 emissions per vehicle.

• 19.9% of management are women, with targets to increase diversity and training hours, and reduce accident frequency to below 1 by 2040.

• Biodiversity and societal impact funds support projects globally, with a new Sustainability Council providing expertise.

Green finance and circular economy

• Green bonds accounted for 57% of issuances in 2024, with a target of 30% of outstanding bond volume being green by 2030 and plans to reach at least 50% by 2040.

• Circular economy strategy covers design, production, use, and end-of-life, with initiatives in vehicle and battery recycling.

• Group-wide implementation of sustainability targets is transforming ESG from a cost to a value driver, positively impacting ratings and strategic decisions.

• The company exited its Xinjiang joint venture after an independent audit found no evidence of forced labor, enhancing transparency and stakeholder trust.

• Multiple reports and online resources provide stakeholders with updates on sustainability, ESG metrics, and controversy management.