Volkswagen (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.

Workforce transformation and people strategy

• The automotive sector is experiencing a shift from traditional manufacturing to tech-enabled knowledge work, driven by electrification and digitalization.

• Employment peaked in 2018; since then, job reductions in traditional roles are offset by growth in IT and R&D positions.

• Programs like Zukunftspakt and Future Volkswagen aim to reduce headcount by 35,000 in Germany by 2030, mainly through attrition and reskilling.

• Innovative reskilling and upskilling initiatives, including the Group People Academy and partnerships with institutions like École 42, support workforce adaptation.

• The company emphasizes social responsibility, avoiding forced redundancies and supporting voluntary transitions and entrepreneurship.

Information security and data protection

• The group faces global cybersecurity threats, managing over 3 million identities and conducting 1,000+ security ratings annually.

• Security operations include specialized centers, annual conferences, and compliance with ISO 27001, TISAX, and UNECE standards.

• A steering committee oversees group-wide security, with over 50 projects in areas like authentication, governance, and product cybersecurity.

• Bug bounty programs and collaboration with ethical hackers are in place to identify vulnerabilities.

• AI presents both risks and opportunities in cybersecurity, with ongoing adaptation to emerging threats.