Volkswagen Group (VOW) ESG update summary

ESG Strategy and Regenerate+ Update

• Regenerate+ strategy focuses on nature, people, society, and business, each with three KPIs to track progress and implementation success.

• Achieved a 60% reduction in CO2 emissions at own facilities since 2018, surpassing the 50% target, and remain on track for 2040 net carbon neutrality.

• Scope 3 emissions reduction is progressing, aiming for 30% by 2030, with 18% achieved by 2025 and a 50% reduction in Scope 1+2 emissions targeted.

• Biodiversity initiatives include a new indicator in development and a fund to support global ecosystem projects.

• Diversity and inclusion targets are on track, with 23.3% women in management and 28.1% international representation in top management, alongside employee empowerment and accident frequency reduction goals.

Circular Economy and Sustainable Business Models

• Circular economy is central to decarbonization, resilience, and new profit pools, focusing on recycled materials, used parts, and vehicle/battery recycling.

• The Circular Economy Hub in Zwickau aims to dismantle and refurbish up to 15,000 vehicles annually by 2030, scaling through a partner network and targeting significant material recovery.

• Regulatory changes require 15% post-consumer recycled polymers in new cars by 2032, scaling to 25% by 2036, driving regional recycling networks.

• Partnerships with recyclers and startups are expanding, with digitalization enabling material tracking and circularity.

• KPIs for circular economy are being developed, including circular revenues and material shares, with interim targets and collaboration across the value chain to close material loops.

Green Finance, Supply Chain Management, and Business Impact

• Over €20 billion in bonds issued in 2025, with more than half in green format, exceeding the 2030 target ahead of schedule and aiming to maintain over 40% in 2026.

• In 2025, sustainable business fields accounted for 19.9% of revenues, with a 10.9% global share of BEV sales.

• Responsible Raw Materials Policy is based on global standards, with a robust risk analysis, supplier audits, and due diligence system covering over 63,000 direct suppliers.

• 85% of high-risk suppliers are certified via S-Rating, and external certifications are leveraged to ensure compliance.

• PowerCo is vertically integrating battery supply chains to secure volumes, reduce price volatility, and ensure ESG compliance.