Volkswagen Group (VOW) Sustainability presentation summary

Workforce transformation and strategic objectives

• Workforce is undergoing quantitative and qualitative transformation, with a shift from traditional production roles to new digital and electric vehicle (EV) and software-focused positions.

• Employment peaked in 2019, with electrification and automation driving a decline in traditional jobs and the emergence of new roles in software, IT, and battery technology.

• Major restructuring programs and upskilling initiatives are in place, including €200 million invested in transformation-related qualifications and over 28,000 employees upskilled between 2021-2023.

• Vocational training is being reoriented towards future professions, with significant increases in apprenticeships and dual study programs in electronics, software, and IT.

• Digital learning ecosystems and innovative educational concepts are being implemented to support lifelong learning and workforce adaptability.

Sustainability and environmental targets

• Ambition to become a net carbon-neutral company by 2050, with interim targets of -50% CO2 emissions (Scope 1+2) and -30% (Scope 3) by 2030.

• Circular economy principles are being integrated, targeting 40% circular materials by 2040 and 90% of suppliers committed to the Paris Agreement by 2030.

• Biodiversity initiatives include a biodiversity fund of up to €25 million annually and land-use criticality as a steering indicator.

• All factories aim to operate net carbon neutral by 2040, with 56.3% of electricity already from renewable sources.

• Expansion of green charging infrastructure and promotion of BEV adoption to reduce use-phase emissions.

People, diversity, and social responsibility

• Diversity and inclusion are central, with a target of 20.2% women in management by 2025 and a holistic, non-discriminatory culture.

• Health and safety targets include zero work-related deaths and an accident frequency rate below 1 by 2040.

• Social impact is measured through supplier sustainability ratings, global reputation KPIs, and increased donations and employee volunteer programs.

• Responsible supply chains are emphasized, with a goal of over 95% positive supplier S-Ratings by 2040.

• Stakeholder engagement and transparency are prioritized to enhance trust and reputation.