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More than 55,000 people with different backgrounds, different views, and abilities, people of different genders and ages as well as dif- ferent sexual orientations work at Audi in Germany alone. They are all united by a common understanding of the company’s culture and values. These values and principles are enshrined in various guidelines – includ- ing in the Volkswagen Group Essentials, the Audi Code of Conduct, the Statement of Principle on Diversity & Inclusion and in other corporate policies. The Audi corporate values The Audi corporate values – trust, responsibility, courage and enthusiasm – form the backbone of the corporate culture at Audi. They guide both Corporate culture and equal opportunities Shared values and the Audi Team Spirit are the foundation of the corporate culture at AUDI AG. The company is committed to diversity and integration, equal opportunities and protection from discrimination as well as to responsible leadership principles. GRI 405, 406-1 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
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120 Audi Report 2024 FinanceStrategy & Company ESG Appendix employees and managers in their daily work and describe what living a modern and successful corporate culture looks like at Audi: > Trust is the foundation for fruitful col- laboration – whether internally within a team or in dealings with customers and business partners. Trust means commu- nicating openly and transparently and honoring the agreements we make. It creates an environment in which each of us can show initiative, take respon- sibility, rise above ourselves and be courageous. > Taking responsibility and being reliable: AUDI AG strives to apply its innovative strength to actively contribute to the well-being of people and nature. The topic of sustainability is therefore given special consideration in many deci- sions. But AUDI AG also feels a sense of responsibility to the company itself as well as its employees. An entrepre- neurial mindset focused on performance is therefore essential and ensures the company’s future viability. For this, the company needs to show persistence and be open to addressing even uncomfort- able topics, as well as to take initiative when new opportunities, challenges or risks arise. > Courage has led Audi to many ground- breaking innovations and iconic models.
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> Courage has led Audi to many ground- breaking innovations and iconic models. And that same courage is now helping to shape the company’s future. Part of this is the courage to try out new things, Photo: AUDI AG to address issues openly and to fight for one’s ideas, along with the courage to make quick decisions, to collaborate across the Group and to foster an open culture in which mistakes can be admit- ted without shame. After all, only those who are not afraid of failure can break new ground. > Enthusiasm for products, services and the brand has long been a driving force at Audi when it comes to progress, innovation, design and quality. This en- thusiasm ignites a pioneering spirit and motivates employees to find innovative solutions – and to always give their best. Leadership culture Managers play a crucial role in anchoring the corporate values in the day-to-day work at AUDI AG. By embracing and upholding these values, they set a positive example for all employees. Managers at Audi see themselves primarily as enablers: They create scope for employ- ees to make their own decisions within their area of responsibility.
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Managers at Audi see themselves primarily as enablers: They create scope for employ- ees to make their own decisions within their area of responsibility. In addition, managers cultivate a working environment in which everyone acts on an equal footing, different opinions are welcome and calculated risks can be taken. Mistakes are viewed as opportunities to learn, grow and develop. In this way, superiors encourage employees to realize their individual potential. AUDI AG is strengthening its leadership culture with a number of initiatives, such as the Role Model Program. This program offers managers a wide range of activities, including various workshops and review meetings, to further strengthen the cul- ture of dialogue and collaboration in their teams. In addition, managers are given the opportunity to reflect on and develop their own leadership style, for example through formats such as leadership feedback, where managers receive input from their employees, colleagues and superiors. Feedback culture and personal initiative AUDI AG seeks to create an environment in which all employees can bring their respective strengths to the fore. Promoting an open speak-up and feedback culture is a central pillar for this.
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Promoting an open speak-up and feedback culture is a central pillar for this. For example, Audi regularly conducts surveys to find out what its employees think about relevant compa- ny issues or specific events or processes. What’s more, employees of AUDI AG have access to several (anonymous) grievance channels, including the anonymous whis- tleblower system. Employees are urged to report potential misconduct since the com- pany does not tolerate misconduct of any kind, whether it be workplace harassment or other improper behavior. All reported concerns are investigated and appropriate solutions sought, regardless of the report- ing channel used. Finally, Audi consistently encourages em- ployees to show initiative. The Audi Ideas Program (AIP) is a way for employees
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121 Audi Report 2024 FinanceStrategy & Company ESG Appendix Photo: AUDI AG to contribute their ideas – including, since 2023, in the new category of sustainability. In the 2024 reporting year, the AIP cele- brated its 30th anniversary in its current form with an impressive record: More than one million ideas have been submitted, of which more than half a million have been implemented, generating measurable benefits for the company of around EUR 1.7 billion. A single idea for reducing transport costs resulted in savings of more than EUR 1.1 million in the first year alone. Launched in the 1960s as the Company Suggestion Scheme, the program continues to contribute to the company’s progress. Equal opportunities AUDI AG is committed to ensuring that all employees – regardless of gender, origin or other personal characteristics – have the same opportunities to develop their talents and abilities. This commitment to equal opportunities is not just a matter of fairness, but also a key factor of innova- tion, creativity and ultimately corporate success.¹ With this in mind, Audi is pursuing a holistic approach to diversity and inclusion (D&I).
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AUDI AG has already established many measures on its way to becoming an inclusive company: The Human Resources division, for example, has had its own D&I team since March 2017, which deals with a wide range of topics. Among other things, it organizes training and awareness-raising formats, reviews HR processes, cooperates with international diversity initiatives and develops New Work projects. Three mea- sures were particularly notable in the 2024 reporting year: > We.Together – International Diversity & Inclusion Days 2024: Employees from across the Group took part in this international campaign week to jointly promote diversity and openness. The event offered 60 digital sessions in eight languages, including lectures, work- shops, networking events and panels. Around 7,500 international participants explored the question of what role diver- sity and inclusion can play in overcoming the current challenges in the automotive industry. For example, the participants discussed issues such as protection against bullying and psychological safety as a driver for team performance. ¹ McKinsey study: Diversity matters even more: The case for holistic impact (2023). > Audi inclusion survey: Another inclu- sion survey was conducted in the 2024 reporting year.
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¹ McKinsey study: Diversity matters even more: The case for holistic impact (2023). > Audi inclusion survey: Another inclu- sion survey was conducted in the 2024 reporting year. The aim of the Group- wide survey was to measure progress compared with the previous year’s sur- vey and to identify further potential for improving inclusion within the company. Some 11,500 employees took part in the survey – an increase of more than 2,500 over the previous year. > Anti-Discrimination Office: In response to the results of the 2023 inclusion survey, a new point of contact was set up for anti-discrimination issues. This office supplements the existing points of con- tact within the company and is intended to help create a discrimination-free environment. By means of preventive and educational measures, the Anti- Discrimination Office helps ensure that the principles of non-discrimination are upheld throughout the company. Another important goal of the human resources work at AUDI AG lies in the in- clusion of people with severe disabilities.
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Another important goal of the human resources work at AUDI AG lies in the in- clusion of people with severe disabilities. In this context, the company has put in place a systematic and transparent approach that uses various measures (for example, workplace adjustments, training) to enable severely disabled people to realize their full potential. The measures are developed individually for each employee, tracked and reviewed annually by an interdisciplinary committee of experts. Proportion of women An important aspect of equal opportunities is the appointment of women to leadership positions. Essential levers here include setting targets and linking management remuneration to the extent to which these targets are met. Regular discussions are held within the Board of Management as well as at the management levels
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122 Audi Report 2024 FinanceStrategy & Company ESG Appendix regarding the degree of target achieve- ment and any further measures that may be required. The Supervisory Board’s target for 2025 is for women to make up 30 percent of its members. This target is to be met individually on the shareholder and employee sides. As of December 31, 2024, the proportion of women on the Supervisory Board was 35 percent. The Supervisory Board has set a target of two women on the Board of Management by 2026. There was one woman on the Board Sending a message for more diversity in the supply chain Audi also promotes diversity in terms of sexual orientation and gender identity in the supply chain. In 2023, the company became the first German company to join the European LGBTIQ+ Chamber of Commerce (EGLCC). AUDI AG has also joined the WEConnect International network, which campaigns for better opportunities for women in business. By joining this network, Audi wants to make it easier for suppliers with diverse leadership to gain access to the company. Read more about the topic of responsibility in the supply chain here. of Management of AUDI AG at the end of 2024.
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Read more about the topic of responsibility in the supply chain here. of Management of AUDI AG at the end of 2024. Audi also aims to increase the proportion of women at the lower levels of management: At the first level below the Board of Management, the proportion of women is to increase to 12 percent by the end of 2025. The target for the second management level is 20 percent. AUDI AG is taking a variety of measures to increase the proportion of women, includ- ing job sharing in leadership positions, better opportunities for reconciling work and family life and programs such as “Sie und Audi,” an orientation program for young female talent. In addition, the company offers training for managers and employees on avoiding unconscious bias. As the name suggests, this refers to prej- udices people have about the abilities and skills of individuals or groups that arise from unconscious thought patterns associ- ating people with certain stereotypes. Audi also offers training on many other topics in the area of diversity and inclusion, either in person or via an interactive, digital online platform.
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Audi also offers training on many other topics in the area of diversity and inclusion, either in person or via an interactive, digital online platform. To be able to objectively measure the prog- ress made in implementing its diversity, equity and inclusion, Audi regularly sub- mits to external evaluations – for example, by means of the Germany-wide Women’s Career Index (FKi). This index examines to what extent companies promote equal op- portunities in the workplace. Among other things, it takes into account the framework conditions for reconciling work and family life as well as opportunities for personal development. In the 2024 reporting year, AUDI AG was ranked among the 10 best companies that took part in the FKi. Photo: AUDI AG
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123 Audi Report 2024 FinanceStrategy & Company ESG Appendix Workforce, Audi Group², ³ Unit 2024 2023 2022 Workforce Number 88,604 – – Production employees Percent 47.0 – – Non-production employees Percent 50.1 – – Number of apprentices Number 2,585 – – Average age Years 42.0 – – Employees under 30 years old Percent 15.03 – – Employees between 30 and 50 years old Percent 57.84 – – Employees over 50 years old Percent 27.12 – – Management, Audi Group³ Number of top management employees Number 82 – – Female employees Number 10 – – Percentage of female employees Percent 12.2 – – Male employees Number 72 – – Percentage of male employees Percent 87.8 – – Other employees Number 0 – – Percentage of other employees Percent 0 – – Key figures Corporate culture and equal opportunities ² Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ³ As of December 31 of the year under review.
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124 Audi Report 2024 FinanceStrategy & Company ESG Appendix Key figures Corporate culture and equal opportunities ² Recording of the key figures was changed in 2024 due to new reporting criteria (ESRS). ³ As of December 31 of the year under review. ⁴ There was one case concerning discrimination and harassment in the reporting period that was categorized as a potentially serious regulatory violation. There were no confirmed cases of serious regulatory violations in the reporting period. In addition, 20 cases relating to discrimination/bullying/stalking and harassment were recorded in the disciplinary statistics and sanctioned in the reporting period. ⁵ Statistical recognition of the total benefit was changed in 2023. With the change, ideas with a total benefit of > EUR 30,000 are not statistically recognized until after the first year of use, when the total benefit of the idea has actually been realized, rather than as before in the month following completion of the idea. Proportion of women, Audi Group², ³ Unit 2024 2023 2022 Audi Group Percent 16.9 – – AUDI AG Percent 17.1 – – Audi Brussels S.A./N.V. Percent 7.9 – – Audi Hungaria Zrt. Percent 13.0 – – Audi México S.A.
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Percent 7.9 – – Audi Hungaria Zrt. Percent 13.0 – – Audi México S.A. de C.V. Percent 16.6 – – Automobili Lamborghini S.p.A. Percent 20.6 – – Bentley Motors Ltd. Percent 19.8 – – Ducati Motor Holding S.p.A.
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Percent 16.6 – – Automobili Lamborghini S.p.A. Percent 20.6 – – Bentley Motors Ltd. Percent 19.8 – – Ducati Motor Holding S.p.A. Percent 18.1 – – Incidents of discrimination and remedial measures taken, Audi Group Number of incidents of discrimination and remedial measures taken Number 20⁴ – – AUDI AG Ideas Program Total benefit EUR million 59.7 68.8⁵ 80.1 Implementation quota Percent 56.6 58.0 59.2 Persons in the organization’s governance bodies from each of the following diversity categories:³ Gender Age groups Supervisory Board Board of Management Supervisory Board Board of Management 65.0% men 35.0% women 85.7% men 14.3% women > 50 years: 70.0% 30–50 years: 30.0% < 30 years: 0% < 30 years: 0% 30–50 years: 28.6% > 50 years: 71.4% Illustration: C3 Visual Lab
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125 Audi Report 2024 FinanceStrategy & Company ESG Appendix Responsibility does not end at the factory fence. The Audi Group systematically promotes more sustainable supply chains and has set itself the goal of going beyond mere compliance with statutory requirements. The aim is to uphold human rights and meet both environmental and social standards. ¹ Global production sites of Audi vehicles. ² AUDI AG and selected subsidiaries, defined by internal policies. Responsibility in the supply chain GRI 204, 308, 414 C ompanies not only bear responsibil- ity for their own employees, society and the environment; together with their suppliers and business partners, they are committed to ensuring fair work- ing conditions for all and to protecting the environment – throughout the entire supply chain. Audi¹ currently works with more than 12,400 suppliers in 62 countries. Vehicle production is based on global and widely branched supply chains. Various situations may arise that violate the principles of the Audi Group² with regard to social, labor and environmental issues and could thus potentially harm the company’s reputa- tion. In recent years, regulations have been introduced at several political levels to enshrine this responsibility in law.
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In recent years, regulations have been introduced at several political levels to enshrine this responsibility in law. The German Supply Chain Due Diligence Act, which entered into force in 2023, focuses on protecting human rights and the envi- ronment. On May 24, 2024, the Council of the European Union adopted the Corporate Sustainability Due Diligence Directive (CSDDD). Besides environmental and hu- man rights aspects, it also sets out require- ments for climate change mitigation. Photo: AUDI AG 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.
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126 Audi R eport 2024 FinanceStrategy & Company ESG Appendix The provisions of the German Supply Chain Due Diligence Act will therefore have to be extended, resulting in further obligations for companies. The Audi Group² seeks to achieve a more sustainable economy in which business success is based on corporate values, compliance and integrity. Strong part- ners along the supply chain are crucial to successfully reaching the defined environ- mental, human rights and due diligence targets. Three fields of action in the Audi Group² To fulfill its responsibility in the supply chain, the Audi Group² has established appropriate structures and is working on measures in three fields of action: environment, innovation and people. All aspects of the first field of action can be found in the Environment chapter of this report. Measures in the “Innovation” field of action are aimed at improving transparency – for example of violations of the Code of Conduct for Business Partners (CoCBP) in the complex global supply chains – through increased integration of new technologies and proactively promot- ing cooperation with suppliers. Specifically, AUDI AG – for instance as part of the Act4Impact sustainability initiative – has built a network together with suppliers to work on joint solutions for a more sustainable supply chain.
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Specifically, AUDI AG – for instance as part of the Act4Impact sustainability initiative – has built a network together with suppliers to work on joint solutions for a more sustainable supply chain. The Act4Impact Playbook provides information and specific starting points for sustainable improve- ments: It is divided into several modules that familiarize suppliers with basic theory on the topics of people, the environment and innovation, and give them the tools they need to make their own processes more sustainable. In the 2024 report- ing year, for example, in-depth supplier training was offered in the areas of circular economy, decarbonization and water. Audi also offers suppliers further learning for- mats such as workshops, training courses, seminars and train-the-trainer sessions. Principles of cooperation Certain basic requirements must be fulfilled for collaboration with the Volkswagen Group – and thus with AUDI AG and selected subsidiaries. Risk assessment First, a risk analysis is carried out. This is based on a multi-stage process that initially considers industry-specific risks in relation to protected human rights and natural resources. In this way, higher-risk industries are identified.
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This is based on a multi-stage process that initially considers industry-specific risks in relation to protected human rights and natural resources. In this way, higher-risk industries are identified. By combining the industry risk with a country risk, suppliers can be assigned to a low, medium or high sustainability risk category. This risk assessment, which is updated an- nually or whenever there is cause to do so, serves as the basis for a series of standard and more in-depth measures: Code of Conduct for Business Partners The sustainability requirements of the Volkswagen Group – and thus also the expectations of the Audi Group² – with respect to partner companies are summa- rized in the CoCBP. It governs the obliga- tions of suppliers with regard to envi- ronmental protection, human and labor rights, business ethics and sustainability requirements to ensure responsible supply chains.
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It governs the obliga- tions of suppliers with regard to envi- ronmental protection, human and labor rights, business ethics and sustainability requirements to ensure responsible supply chains. The obligations are based in particular on the following national and international standards and conventions: > T en Principles of the United Nations (UN Global Compact) > UN Guiding Principles on Business and Human Rights > OECD Guidelines for Mul tinational Enterprises > OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas > C onventions of the International Labour Organization (ILO), in particular the fundamental labor rights > Guiding Principles of the Drive Sustainability Initiative By working with the Audi Gr oup,² busi- ness partners agree to comply with the CoCBP and thus, for example, to treat all employees equally and recognize labor-related rights such as freedom of association, occupational health and safety, and legally prescribed working hours. In addition, the CoCBP condemns all forms of modern slavery and child labor and prohibits all forms of discrimination, whether based on age, origin, gender or other aspects.
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In addition, the CoCBP condemns all forms of modern slavery and child labor and prohibits all forms of discrimination, whether based on age, origin, gender or other aspects. Reporting channels for potential violations All stakeholders – including employees of supplier companies or members of civil society – can report potential violations of the CoCBP through various reporting chan- nels. With the help of the Supply Chain Grievance Mechanism (SCGM), reports can be submitted to the Audi Group at any time – also anonymously if desired – through various channels: by email, via an online reporting channel and, since November 2024, also by telephone voice message and via the “SpeakUp – Listen for a change” app. The reporting channels can be accessed via the Audi web page on the Whistleblower System. Additionally, 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 viola- tions must be treated confidentially and that whistleblowers must be protected from discrimination and reprisals. During the reporting period, the SCGM was used to process 213 reports of violations within the Volkswagen Group.
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During the reporting period, the SCGM was used to process 213 reports of violations within the Volkswagen Group. Sustainability Rating One of the main risk-based tools for check- ing whether suppliers are complying with the Audi Group’s² sustainability require- ments is the Sustainability Rating, also known as the S-Rating. The S-Rating is a standardized tool of the Volkswagen Group that is used to assess the sustainability performance of relevant suppliers in the areas of the environment, social issues and integrity and, in further stages, to mitigate the associated risks. It is directly relevant to the awarding of contracts. The result of the S-Rating is divided into three catego- ries: suppliers with an A or B rating fulfill the requirements of the Volkswagen Group to a sufficient extent and are therefore eligible for being awarded contracts. If a supplier company does not meet the ² AUDI AG and selected subsidiaries, defined by internal policies. You can find more information in the Volkswagen Group Sustainability Report 2024.
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127 Audi Report 2024 FinanceStrategy & Company ESG Appendix requirements (C rating), it is generally not eligible to be awarded a contract. There is therefore a direct incentive for suppliers to improve their sustainability performance. The rating is based on a self-assessment questionnaire (SAQ) – a standardized questionnaire that was developed together with several automotive partner companies as part of the Drive Sustainability initiative. The aim is to identify shortcomings and encourage suppliers to make improve- ments by giving them specific pointers. It is the suppliers’ responsibility to actively eliminate any deviations from the required standards. In the SAQ, suppliers must provide specific information on manage- ment systems and company guidelines and policies. For example: Any supplier with manufacturing operations employing more than 100 employees at a single site must provide evidence of a certified environmen- tal management system. If the evaluation of the SAQ – possibly in combination with a country risk score – indicates an increased risk, the supplier may be subjected to an on-site audit. Such an audit takes about eight hours and covers various key audit areas, including child labor, supply chain management, working hours and handling of hazardous materials.
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Such an audit takes about eight hours and covers various key audit areas, including child labor, supply chain management, working hours and handling of hazardous materials. In matters of wages, an auditor checks – for example by examining documents and interviewing employees – whether workers in the supply chain receive a record of their wage payments, whether there are any unlawful deductions from their wages or whether overtime pay regulations are being disregarded. Once the audit has been completed, a final report – the Corrective Action Plan (CAP) – is drawn up and signed by the audited suppli- er and the auditor. The corrective actions set out in the CAP must be implemented within a specified period of time. Implementation must be documented and, in the case of more serious violations, verified by means of re-audits. If the corrective actions prove unsuccessful, the business relationship with the supplier in question may be terminated as a last resort. Further information can be found in the S-Rating Info Hub. To supplement these on-site audits, AUDI AG and a number of other automo- tive companies have joined forces under the umbrella of the Responsible Supply Chain Initiative (RSCI) and developed an addi- tional industry-wide audit standard.
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These third-party on-site audits are gradually being implemented at AUDI AG and within the Volkswagen Group and are intended to replace the existing on-site audits in the long term. Between the introduction of the S-Rating and the end of the reporting period, more than 19,000 direct suppliers of the Volkswagen Group had completed an SAQ. According to their feedback, 8,093 suppliers have been able to improve their sustainability performance through target- ed corrective actions. Media screening and supplier training Alongside the measures mentioned, the Audi Group² uses media screening as a standard measure to monitor suppliers with a medium or high risk profile and identify any risks that may arise. The cata- log of measures is rounded off by training for direct suppliers on sustainability stan- dards in the supply chain, covering topics such as human rights and environmental issues.
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The cata- log of measures is rounded off by training for direct suppliers on sustainability stan- dards in the supply chain, covering topics such as human rights and environmental issues. Systematic approach to due diligence in the upstream supply chain In addition to the standard measures de- signed to ensure a responsible supply chain – such as the CoCBP, the S-Rating, media screening and the Supply Chain Grievance Mechanism – there are more deep dive measures for both direct Illustration: C3 Visual Lab Risk analysis Measures Industry-based sustainability risk assessment Standard measures, preventive and reactive Deep dive measures Supplier-based allocation to sustainability risk high medium low Country risk filter Relates to the production site Sustain- ability Rating Code of Conduct for Business Partners Supply Chain Grievance Mechanism Media screening Supplier training Human Rights Focus System (HRFS) Raw Materials Due Diligence Management System (RMDDMS) Analysis Deep dive Measures Assessment Mitigation Impact evaluation + n-tier + n-tier ² AUDI AG and selected subsidiaries, defined by internal policies.
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128 Audi Report 2024 FinanceStrategy & Company ESG Appendix suppliers and upstream (n-tier) suppliers in the globally distributed supply chains. These deep dive measures include, in particular, the Human Rights Focus System (HRFS) and the Raw Materials Due Dili- gence Management System (RMDDMS). Human Rights Focus System (HRFS) The HRFS is a specific management approach to identify systematic issues in the supply chain – by using internal data from the S-Rating, SCGM or on-site audits, as well as by evaluating external informa- tion from studies and NGOs. It serves to pinpoint and address human rights and environmental risks that require more in- depth analysis. In 2023, this approach led to the identification of three focus topics for the Volkswagen Group, which were followed up more closely during the year under review: forced labor, living wages and supplier management. The basic approach to dealing with these focus topics always starts with a structured investiga- tion of the causes, in order to develop and then implement corrective actions based on the results. AUDI AG and Volkswagen are working together on the focus topic of living wages. The CoCBP calls on suppliers to pay their employees an adequate wage.
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AUDI AG and Volkswagen are working together on the focus topic of living wages. The CoCBP calls on suppliers to pay their employees an adequate wage. This wage should at least cover the basic needs of the employees so that they and their fami- lies can make a decent living – including adequate food, clothing and accommoda- tion, as well as a steady improvement in their living conditions. In 2024, the Group developed a method for calculating living wages in the supply chain. It also analyzed which industry- or country-specific risks stand in the way of a living wage. Step by step, the findings of this analysis are to be integrated into the standard procurement processes by means of suitable measures. One example of this would be to take living wages as the lower limit in wage calcula- tions. Raw Materials Due Diligence Management System (RMDDMS) The RMDDMS is used to address human rights and environmental risks in raw ma- terial supply chains. Certain raw materials are extracted and processed under condi- tions that pose a particularly high risk of violating the Audi sustainability standards, whether through discrimination or inade- quate occupational safety precautions.
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Certain raw materials are extracted and processed under condi- tions that pose a particularly high risk of violating the Audi sustainability standards, whether through discrimination or inade- quate occupational safety precautions. The Volkswagen Group has identified 18 raw The Audi Group has considered respect for and compliance with human rights to be part of its corporate responsibility for many years. This is enshrined in the binding Audi Code of Conduct as well as in the Compliance Management System and the sustainability requirements for its global supply chains. At Audi, the topic of business and human rights is overseen by the Compliance department – with many interfaces to experts and specialist areas throughout the company. Since 2023, the Audi Group Human Rights Officer has been responsible for monitoring respect for human rights within the Group and along the supply chain. He and his team review, analyze and monitor all activities of the Audi Group that are relevant to human rights. The company comprehensively updated its Statement of Principle: Respect for and Observance of Human Rights to reflect the requirements of the German Supply Chain Due Diligence Act as early as 2023. Since then, the content has been reviewed annually.
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Since then, the content has been reviewed annually. Moreover, AUDI AG published its first Report on the Fulfillment of Due Diligence Obligations (in German only) in accordance with the German Supply Chain Due Diligence Act in June 2024. In addition, Audi publishes a statement annually on the company’s website in relation to the measures taken and management approaches for avoiding forms of modern slavery (Slavery and Human Trafficking Statement). Other human rights-related activities include a “Human Rights Expert Group” comprising one representative each from the fields of science, business and supranational institutions, which was set up by the Human Rights Officer. The group meets at least four times a year, advising the company on selected aspects of the Audi human rights strategy and its implementation, as well as on specific issues and challenges. During on-site visits, the Human Rights Officer verifies that the obligations arising from the German Supply Chain Due Diligence Act are being met at the respective sites. In the year under review, the Human Rights Officer visited Audi México and Audi Hungaria, for example. Employees of the Audi Group learn about respect for human rights through a self-study program and a mandatory online training course.
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In the year under review, the Human Rights Officer visited Audi México and Audi Hungaria, for example. Employees of the Audi Group learn about respect for human rights through a self-study program and a mandatory online training course. An exchange with stakeholders takes place in various forms, including the annual Human Rights Stakeholder Dialogue. You can find more information at audi.com. Focus on human rights materials as being particularly risk-prone, including cobalt, copper and aluminum, and these are dealt with specifically in the RMDDMS. The due diligence process is based on the five steps of the OECD Due Diligence Guidance for Responsible Business Conduct and the requirements of the OECD Due Diligence Guidance for Re- sponsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. In addition, risk-based audits are also carried out at n-tier suppliers. Within the Volkswagen Group, AUDI AG bears responsibility for the raw materi- als aluminum and copper – and thus for analyzing the risks associated with these raw materials throughout the Group and for devising measures to minimize those risks.
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In view of its responsibility for the raw material aluminum, AUDI AG has joined the Aluminium Stewardship Initiative (ASI), which was formed from an alliance of vari- ous stakeholders in the aluminum industry. Its goal is to promote responsible ² AUDI AG and selected subsidiaries, defined by internal policies.
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129 Audi Report 2024 FinanceStrategy & Company ESG Appendix extraction, processing and use of alumi- num. Audi is the first car manufacturer worldwide to have been certified according to both the ASI Performance Standard (2018) and the ASI Chain of Custody Stan- dard (2021). The current status, progress and targets of the RMDDMS are reported annually in the Responsible Raw Materials Report. This report also details the company’s involve- ment in various industry initiatives, such as the ASI and The Copper Mark. These standard and more in-depth mea- sures, when used in combination, can help identify and appropriately address human rights and environmental risks. Procurement with Purpose for diverse supply chains Through Procurement with Purpose, the Audi Group² seeks to support diverse supply chains. Potential new partners are identified on the basis of two criteria. First: They can create added value at the social level by offering solutions for social or ecological challenges (social businesses). And sec- ond: They are run by members of groups that are underrepresented in the business world (minority-owned businesses), such as women, people with disabilities or members of the LGBT_IQ³ community.
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And sec- ond: They are run by members of groups that are underrepresented in the business world (minority-owned businesses), such as women, people with disabilities or members of the LGBT_IQ³ community. The company’s needs are screened against what the suppliers offer by means of a matching process in order to identify potential for collabo- ration. In 2024, the Audi Group² awarded contracts to social businesses internationally, for example at Audi Hungaria, Italdesign or Lamborghini. Further impetus for Procurement with Purpose in the year under review came from the company’s membership in the European LGBTIQ+ Chamber of Commerce, which promotes sexual and gender diversity in a procure- ment context, and the WEConnect International network, which is commit- ted to creating more equal opportunities for women in business. ² AUDI AG and selected subsidiaries, defined by internal policies. ³ Lesbian, gay, bisexual, transgender, intersex, queer. The underscore in LGBT_IQ symbolizes the range of transgender people. ⁴ Within the Volkswagen Group. ⁵ Training for Procurement employees at AUDI AG has been offered since 2019. This key figure was included for the first time in the Audi Report 2023.
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⁴ Within the Volkswagen Group. ⁵ Training for Procurement employees at AUDI AG has been offered since 2019. This key figure was included for the first time in the Audi Report 2023. Unit 2024 2023 2022 Self-assessment questionnaire (SAQ): direct suppliers with completed SAQ⁴ Number > 19,000 > 14,900 > 16,000 Self-assessment questionnaire (SAQ): percentage of new suppliers that were screened using social and environmental criteria⁴ Percent 20 26 12 S-Rating: revenue share of direct suppliers with a positive S-Rating (A and B rating) of the total procurement volume⁴ Percent 83 79 75 Audits (on-site): number of audits carried out in the course of the S-Rating⁴ Number 85 89 252 Training and certification: direct suppliers that received training on the subject of sustainability⁴ Number > 9,800 > 7,700 > 2,900 Training and certification: Procurement employees of AUDI AG who participated in training on the subject of sustainability Number 305 6215 – Key figures Responsibility in the supply chain
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FinanceStrategy & Company ESG Appendix 130 Audi Report 2024 Responsible digitalization Audi is driving digitalization forward in a systematic and responsible manner – in the vehicle and the customer experience as well as in production and in company processes. Sustainable Development Goals The following SDG is at the focus of this company commitment: Further information on Audi and the UN sustainability goals can be found on page 160. GRI 418 D igitalization and networking influence the daily lives of billions of people and affect all links in the value chain. They drive technological advances and help to create efficient work processes. The increasing digitalization of services and functions in the vehicle not only en- ables new offerings and useful equipment elements, it also makes mobility smarter and more personal. Customers are increas- ingly keen for digital services and functions to be tailored to their personal needs – this is an important factor in their purchasing decision. In addition, digitalization can help reduce the risk of accidents, for example through assisted, semi-auto- mated and, in the future, fully automated driving, as well as through the increasingly close networking of vehicles with their environment. Digitalization also makes it easier to design efficient work processes, such as in production and logistics.
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Digitalization also makes it easier to design efficient work processes, such as in production and logistics. Photo: AUDI AG Across the entire value chain, increasing digitalization means an increasing exchange of data. Handling data responsi- bly is therefore a top priority for Audi. Digitalization of services and functions in the vehicle The connected models of the Audi brand offer customers a wide range of digital ser- vices that can provide greater convenience and safety. Four examples from the year under review: > Audi has significantly expanded voice control and made it even more conve- nient with the Audi assistant,¹ a ¹ 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). Further information on the Audi assistant at www.audi.de/technologie (in German only).
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FinanceStrategy & Company ESG Appendix 131 Audi Report 2024 AR HUD⁶ in the Audi Q6 e-tron: The displays can be understood quickly without distracting the driver. Status area Augmentable area up to 200 meters in front of the vehicle ¹ 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). Further information on the Audi assistant at www.audi.de/technologie (in German only). ² Further information can be obtained from an Audi Partner or via the Audi configurator at www.audi.de (in German only). ³ Part of Audi connect navigation & infotainment (IT3). Language availability is country-specific. Please contact an Audi partner or visit the Audi configurator at www.audi.de (in German only) for information on country and language availability. Further information on the Audi assistant is available 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.
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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 com- pletely ruled out. On matters relating to the vehicle, always consult the Owner’s Manual in case of doubt. ⁴ ChatGPT is integrated automatically in all Audi models from model year 2021 onward that are equipped with the third-generation modular infotainment matrix (MIB 3) and have a valid license for Audi connect navigation & infotainment (plus) (IT3). No action is required by Audi customers. Further information can be obtained from an Audi Partner or via the Audi configurator at www.audi.de (in German only). ⁵ Polarized sunglasses restrict the use of the head-up display. ⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only).
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⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only). Photo: AUDI AG self-learning voice assistant that is avail- able in both current and future models.² Vehicle occupants can interact with the car in natural language, control the info- tainment, navigation and climate control systems, or ask general knowledge questions.¹ To do this, they activate the assistant as usual by saying “Hey Audi” or by pressing the push-to-talk button on the steering wheel, and then ask any question they like. The Audi assistant¹ automatically recognizes whether the occupant wants to activate a vehicle function, search for a destination or ac- cess a weather forecast, for example. As an option, it can be proactive and learn from the user’s behavior: Certain recur- ring operating sequences can be recog- nized and automated, such as the use of seat ventilation above a certain outside temperature.
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As an option, it can be proactive and learn from the user’s behavior: Certain recur- ring operating sequences can be recog- nized and automated, such as the use of seat ventilation above a certain outside temperature. The Audi Q6 e-tron, Audi A6 e-tron and new Audi A5, as well as all future models based on the E³ 1.2 electronics architecture, also feature a direct link to ChatGPT³ – an artificial intelligence (AI)-based chatbot solution – as an extension of the Audi assistant.¹ If the Audi system is unable to answer general knowledge questions, for exam- ple, they are forwarded to ChatGPT.³ And because all the functions are integrated into the Audi assistant,¹ this happens seamlessly and imperceptibly for the driver and passengers. ChatGPT³ is also available for Audi models equipped with the third-generation modular infotain- ment matrix (MIB 3) and produced from model year 2021 onward.⁴ > Thanks to the new E³ 1.2 electron- ics architecture, Audi customers can experience digitalization in the vehicle more directly than ever before.
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A new introduction in the year under review was the second-generation augmented reality head-up display AR-HUD),⁵ as featured in the Audi Q6 e-tron.⁶ The technology gives drivers the impression that the elements displayed in the AR- HUD are hovering up to 200 meters away and interacting directly with elements in the environment. This enables them to quickly take in information such as navi- gation instructions, driver assist systems or song titles. From a technical perspec- tive, this effect is achieved by means of a tilted image plane and a large virtual image distance. > Smart technology is becoming more and more prevalent, not only in assist and infotainment systems but also in bat- tery management. The smart thermal management system for high-voltage (HV) batteries that Audi has developed for vehicles on the Premium Platform Electric, such as the Audi Q6 e-tron, plays a major role in optimizing charging performance and extending the service life of the HV battery. The system works predictively – in other words, it reacts in advance. It uses data from the departure timer, the navigation input, the route being driven and the Audi customer’s usage behavior to prepare the HV bat- tery for the charging process.
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It uses data from the departure timer, the navigation input, the route being driven and the Audi customer’s usage behavior to prepare the HV bat- tery for the charging process. When the vehicle reaches the charging terminal, the HV battery is at the ideal tempera- ture, enabling short charging times. In addition, the thermal management system monitors the temperature of the HV battery throughout its lifetime and maintains the battery in the optimal temperature range, even when the
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FinanceStrategy & Company ESG Appendix 132 Audi Report 2024 Responsible use of AI In the 2024 reporting year, Audi established a new organizational unit called Data Driven Enterprise. This unit is in charge of fine-tuning the company’s digital and transformation strategy and has central control over the data and AI strategy program at Audi. Its responsibilities include laying down strategic guidelines and managing compliance with statutory requirements for the use of data and AI in the company’s various divisions. In addition, the organization- al unit is the central point of contact and driving force for the compliant use of data and AI within the company. To support employees in their day-to-day work with AI, Audi has also issued a Statement of Principle on the responsible use of AI. The three guiding prin- ciples it contains – “Respect,” “Security” and “Transparency” – are aligned with the European Union’s Ethics Guidelines for Trustworthy AI. These guidelines have been incorporated into business practice through internal regulations and effective management systems. Further information can be found in the chap- ter Compliance & Integrity. vehicle is stationary, to ensure a longer service life – for example, when it is very hot or very cold outside.
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Further information can be found in the chap- ter Compliance & Integrity. vehicle is stationary, to ensure a longer service life – for example, when it is very hot or very cold outside. > The dynamic interaction light (IAL⁶), which is available in the Audi Q6 e-tron, among other models, supports in- teraction between the vehicle and its occupants. The light strip, made up of 84 LEDs, extends around the interior and cockpit and offers three functions: It enhances safety by additionally visual- izing the turn signal inside the vehicle. Furthermore, it indicates how much bat- tery power is left and how far an ongoing charging process has progressed. And finally, it accentuates the interior with a welcome function and lights up when the vehicle is locked and unlocked. Transformation to a software-centric organization Electric, autonomous and highly connected driving all play an increasingly import- ant role in the automotive industry. In addition, there is growing demand among customers for digital services and func- tions that are tailored to their personal needs.
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In addition, there is growing demand among customers for digital services and func- tions that are tailored to their personal needs. Consequently, more and more software-based elements are finding their way into vehicles, making it necessary to reconsider the vehicle development pro- cess: The focus is shifting from hardware components such as the body, powertrain and suspension to customer functions. That is why the development of a software- defined vehicle (SDV) starts with the soft- ware and digital functionalities and then works its way up to the hardware. To speed up the development process and sharpen the focus on software, Audi has reorganized its structure. The trans- formation of Technical Development at AUDI AG is a clear sign that the company is forging ahead with its reorientation as a software-centric organization. As another step in this direction, the new “Innovation and Software-Defined Vehicle” division es- tablished during the year under review was incorporated into Technical Development under the leadership of Geoffrey Bouquot on January 1. Beyond that, AUDI AG will benefit from the Volkswagen Group’s joint venture with US car manufacturer Rivian.
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Beyond that, AUDI AG will benefit from the Volkswagen Group’s joint venture with US car manufacturer Rivian. Together, the partners will accelerate software develop- ment and engineer the next generation of software-defined vehicle architectures that can be used by different brands of the Volkswagen Group. The aim is to maximize customer benefit through innovation, scalable architectures and cost-saving potential for both sides, as well as to increase cost efficiency in research and development. In addition, Rivian’s software and electronics hardware technology ideal- ly complement the global reach and vehicle platform expertise of the Volkswagen Group. Cariad will remain an important partner for Audi within the Volkswagen Group but will focus much more strongly on the develop- ment of cross-brand software solutions in the areas of autonomous driving, infotain- ment, cloud-based services, connectivity and data. Use of AI in business processes Artificial intelligence is a key technology that can help optimize processes and reduce complexity in various areas of the company. More than 100 use cases for AI have been identified in Production and Logistics alone, with their maturity levels ranging from the idea stage to testing all the way to series operation. But AI is also used in administrative areas.
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But AI is also used in administrative areas. > IRIS (Intelligent Recognition and Inspection System) uses an image- processing AI during vehicle assembly to ensure that labels have been correctly applied to the relevant vehicle parts, for example to inform customers where to mount a child seat. While a camera takes pictures of the stickers, the AI in the background evaluates whether the label is stuck on the correct part and whether the content and language are appropriate for the vehicle’s destination country. Previously, the labels had to be checked manually by workers on the production line, which was more Photo: AUDI AG IRIS: The camera system with image-processing AI saves valuable production time. ⁶ This function may be optionally configured for the Audi Q6 e-tron model line and is available for an extra charge. Further information is available via the Audi configurator at www.audi.de (in German only).
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FinanceStrategy & Company ESG Appendix 133 Audi Report 2024 time-consuming. IRIS is expected to save about one minute of production time per vehicle. At present, IRIS is being integrated and tested in pro- duction operations in Ingolstadt and Neckarsulm, with plans to deploy it in series production soon. > For administrative departments at AUDI AG, a modular system for chatbots has been developed, known as LLM⁷ Blueprints. An LLM Blueprint consists of programming modules that can be used in a variety of individual chat- bots. Thanks to this approach, certain functions, such as connectors to data sources, do not have to be created from scratch every time a new chatbot is developed. Instead, developers can build on what already exists. The LLM Blueprints thus provide a universal solution for customized, efficient and easily scalable chatbots in the special- ist areas. A number of subject-specific chatbots based on these LLM Blueprints are already in use: For example, the Audi Service Desk Chatbot assists employees in matters of IT, while the Corporate Regulations Chatbot offers support by drawing on a variety of documents relat- ed to Audi Corporate Regulations.
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Obligations and guidelines for data protection and data security Whether customer, vehicle or company data: It is part of the corporate respon- sibility of AUDI AG to handle data with care, and this is anchored in its corporate policies and the Audi Code of Conduct. The focus here is on information security and data privacy. With respect to information security, Audi meets high quality standards, continuously enhances its security systems and relies on a high level of security awareness among its workforce. Audi builds high-frequency center New cars nowadays are fully con- nected and communicate with other vehicles and their surroundings. A wide range of technologies, including Wi-Fi, Bluetooth and 5G, means that some vehicles may have more than 30 antenna systems and a large num- ber of state-of-the-art control units. Functions such as autonomous driving or over-the-air (OTA) updates also rely heavily on radio systems. The task of employees at the new high-frequency center, which Audi has been building on the Technical Development site in Ingolstadt since October 2024, will be to test and optimize these systems, to ensure that they are optimally aligned with one another and to guarantee their immunity to interference in an electromagnetic environment.
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By these means, the company seeks to prevent attacks on its IT landscape as far as possible, to recognize such attacks at an early stage and to minimize their conse- quences. This is enshrined in an IT security strategy and underpinned by targets. In doing so, Audi complies fully with legal requirements. Audi is bound by international informa- tion security standards – for example, the ISO/IEC 27000 series, on the basis of which Audi has implemented an effective Information Security Management System (ISMS). The ISMS is designed to ensure information security within the organiza- tion through suitable technical and orga- nizational measures. AUDI AG operates an ISMS for all of its divisions and sites. Additionally, an ISMS has been established at all sites of the Brand Group Progressive. ⁷ LLMs are large language models that are trained using vast amounts of data. They provide the technological basis for many modern chatbots, such as ChatGPT or Microsoft Copilot. LLMs are powerful AI models designed to understand and generate human language and images. ⁸ Transparency means that Audi informs its customers in a suitable manner regarding the use of their personal data.
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LLMs are powerful AI models designed to understand and generate human language and images. ⁸ Transparency means that Audi informs its customers in a suitable manner regarding the use of their personal data. This includes, in particular, which personal data is collected and processed, what purposes underly processing of the data and whether the data is transferred to third parties. Transparency also includes informing customers what personal data about them is held by Audi. Naturally, personal data is subject to data secrecy. Audi collects, stores, transfers and uses personal data solely as permitted by legal provisions. As a matter of principle, personal data is only processed for the specific purposes for which it was originally collected and for the purpose defined by the customer. Self-determination means that Audi customers can always determine by themselves which data may be used for which purpose. Further, Audi follows the principle of data minimization: The company only processes the personal data that is necessary for a specific legitimate purpose. In addition, AUDI AG employs mechanisms for anonymizing or pseudonymizing personal data. And AUDI AG has also defined and con- tractually anchored requirements for the supply chain with regard to the imple- mentation of information security and an appropriate ISMS.
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And AUDI AG has also defined and con- tractually anchored requirements for the supply chain with regard to the imple- mentation of information security and an appropriate ISMS. As a result, the company can rely on effective and verifiable control and monitoring mechanisms in the area of information security at all times. An equally essential aspect for Audi is to protect its vehicles against cybersecurity threats. AUDI AG has implemented an Automotive Security Management System (ASMS) and thus complies with all appli- cable regulations. The aim of the ASMS is to minimize cybersecurity risks to vehicles throughout their life cycle and to enable secure and comprehensibly documented software updates. The ASMS is divided into the Cybersecurity Management System (CSMS) and the Software Update Manage- ment System (SUMS). To ensure that personal data is protected, Audi has introduced a Data Protection Man- agement System (DPMS). Any processing of personal data is permanently recorded by the Data Protection Management Sys- tem and evaluated to ensure compliance with data protection law. If necessary, technical and organizational measures are implemented to protect personal data. Audi is continuously developing the DPMS.
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If necessary, technical and organizational measures are implemented to protect personal data. Audi is continuously developing the DPMS. Elements of the DPMS include, for exam- ple, maintaining a directory of procedures, implementing internal reporting processes in the event of data protection violations, ensuring the rights of data subjects and establishing appropriate risk management processes. Legal certainty is a crucial factor: The com- pany fulfills the statutory requirements in terms of transparency, self-determination and data minimization, in particular when dealing with personal data.⁸ As in the pre- vious year, AUDI AG did not receive any val- id complaints in 2024 regarding infringe- ments of customer data protection.
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134 Audi Report 2024 FinanceStrategy & Company ESG Appendix Audi is committed to improving overall road safety. That is why the company is investing in the development of new and improved vehicle safety features and working to high standards with the aim of protecting vehicle occupants and other road users. ¹ Source: WHO: Road-traffic-injuries. ² Experts define “active safety” as all the elements of a vehicle that can help avoid an accident. In addition to the suspension, tires, braking system and lighting technology, such elements include assistance functions that provide early warning of potential hazards, issue a warning in the event of acute danger and, if the driver does not react in time, auto- matically initiate emergency braking or an emergency steering maneuver. “Passive safety” involves elements that can reduce the risk of injury or eliminate it entirely, for example: seat belts, airbags, stable passenger compartments and energy-dissipating vehicle structures. ³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times.
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³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. M obility of people and goods is an essential element of a func- tioning economic system and shapes the prosperity and quality of life of all of us. At the same time, it harbors risks. When it comes to individual pas- senger transport, this includes risks that arise from or are influenced by the general traffic conditions, as well as those that are caused by the particular means of trans- port itself. According to the World Health Organi- zation (WHO), approximately 1.2 mil- lion people worldwide die in road traffic accidents and between 20 and 50 million people suffer non-fatal injuries each year.1 Vehicle safety can help protect the lives and physical integrity of road users and thus increase overall road safety. Car buy- ers also appreciate this. For many, safety standards are an important criterion when purchasing a vehicle. AUDI AG invests in the development of new and improved vehicle safety features and works to high standards with the aim of protecting vehicle occupants and other road users.
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AUDI AG invests in the development of new and improved vehicle safety features and works to high standards with the aim of protecting vehicle occupants and other road users. The company’s active and passive safety technologies² can make a significant contribution to reducing the risk of accidents and injuries. In the field of active vehicle safety, this is to be achieved by the wide range and continuous new and further development of predictive assistance and safety systems3 at one 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. Vehicle safety Photo: AUDI AG Audi Q6 SUV e-tron: electric power consumption (combined): 19.8–16.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. GRI 416
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135 Audi Report 2024 FinanceStrategy & Company ESG Appendix end of the scale through to automated and autonomous driving4 at the other end. In the field of passive safety, around 220 specialists perform more than 800 elabo- rate crash tests and around 20,000 virtual accident simulations every year, while also working continuously on new and en- hanced safety functions. Increasing road safety for all road users Vehicle safety is a high priority at Audi: With the Audi model families present- ed in the year under review, including the Audi Q6 e-tron and the Audi A5, the company has introduced several new developments and advancements in the field of automotive safety systems.5 The second generation of digital OLED rear lights6 extends the range of functions offered by Audi and enables targeted com- munication with the immediate surround- ings: The proximity indication7 function already familiar from other Audi models is being extended in the Audi Q6 e-tron, among others, to include the communi- cation light. It warns other road users of accidents and breakdowns.
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It warns other road users of accidents and breakdowns. In addition to the regular taillight design, the communi- cation light in the digital OLED rear light displays a specific static taillight signature with integrated warning symbol in advance in critical driving or traffic situations. In other words, this assist system3 does not help the Audi driver directly, but warns road users traveling behind. In the interior, the dynamic interaction light (IAL)6 offers a range of communica- tion functions and thus supports interac- tion between the vehicle and its occu- pants. In addition, the second-generation augmented reality head-up display,6 which can be found in the Audi Q6 e-tron, among other models, allows the driver to see information such as navigation instructions or entertainment information more quick- ly. Both functions can reduce distractions and enable drivers to concentrate even better on the road. ³ Assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁴ At the moment, piloted/automated driving is not legally approved for use on public roads in most countries.
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The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁴ At the moment, piloted/automated driving is not legally approved for use on public roads in most countries. It should be noted in general that assist systems can only assist the driver in the task of driving within the respective system limits. The driver is always responsible for driving the vehicle and is required to be attentive at all times. ⁵ Some system and functions can be configured optionally and are available for an extra charge. ⁶ This function can be configured optionally and is available for an extra charge. ⁷ If a road user approaches a stationary Audi from behind to within less than two meters, all OLED segments activate to warn the driver. When the Audi starts up again, the original light signature automatically appears. The systems work only within system limits and assist with driving. The driver remains responsible for driving the vehicle and is required to be attentive at all times. With regard to driver assist systems,3 Audi offers a wide range of functions that can increase road safety for all road users by helping to prevent accidents or reduce acci- dent severity. Current Audi models such as the Audi Q6 e-tron and the Audi A5 can be optionally configured with adaptive cruise assist plus.
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Current Audi models such as the Audi Q6 e-tron and the Audi A5 can be optionally configured with adaptive cruise assist plus. Alongside various sensors, including radars and a front camera to continuously monitor the vehicle surround- ings, the assist system3 also uses high-res- olution map data and cloud- calculated swarm data from other vehicles. This data is generated anonymously by several hundred thousand vehicles from the Volkswagen Group. The vehicle fleet collects mapping material with specif- ic road environment features – such as boundary lines and traffic signs – and automatically transmits them to a cloud. From there, the data is customized and sent to the participating Audi vehicles that are currently driving on the corresponding sections. The large number of vehicles Active safety functions: driver assist systems of the future You can find more information at audi.com. Automatic emergency braking or emergency steering, early notification of potential hazards and warnings in the event of acute danger: digitalization, networking and new technologies are major drivers of active vehicle safety. Four experts from Technical Development talk about challenges, advancements and the reasons why and how all road users benefit. Photo: AUDI AG
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136 Audi Report 2024 FinanceStrategy & Company ESG Appendix Systematic improvement of passive safety The investment in the new Vehicle Safety Center (AFZ) in Ingolstadt is paying off: Since November 2023, several models have already been or are being homologated here, including the Audi A5, the Audi Q6 e-tron and the Audi A6 e-tron. The AFZ is one of the most important Audi development facilities in the field of passive safety. Established teams of experts carry out one to two crash tests per day, five days a week. results in an ever-growing database, which the system uses to assist with acceleration, maintaining speeds and distances, and lane guidance, among other things. Awards from consumer protection organizations In the field of vehicle safety, Audi endeav- ors at all times to achieve the best possible endorsement from external consumer protection organizations in the various core markets (e.g., IIHS (USA), China NCAP, Euro NCAP).
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The awards received are testament to the success achieved through decades of experience, research and development: In the Euro NCAP (European New Car Assessment Programme), almost all Audi models tested since 2009 – including all electric models – have received a five-star rating and thus the top score.8 This success story continued in the 2024 reporting year with the Audi Q6 e-tron and the Audi A5: Euro NCAP awarded both models its highest five-star rating. The vehicles were rated in the categories of adult occupant protection, child safety, vulnerable road user protection and standard safety assist systems.9 With a rating of 92 percent in the child safety category, the Audi Q6 e-tron scored the highest among all vehicles from the years 2023 and 2024 that were tested in this category.10 This result is also due to functions that go beyond legal and consumer protection requirements: The front passenger seat in the Audi Q6 e-tron automatically deactivates the front passenger airbag when a rear-facing child seat is used. Essentially, the car thinks along with the driver, helping to ensure the best possible protection for children of all sizes.
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Essentially, the car thinks along with the driver, helping to ensure the best possible protection for children of all sizes. Audi also performed well on the American continent: In the 2024 reporting year, the Audi Q4 SUV e-tron11 and Audi Q4 Sportback e-tron12 were recognized in the “Midsize Luxury SUV” category, while the Audi Q7 SUV, Audi Q8 SUV e-tron13 and Audi Q8 Sportback e-tron14 received the IIHS TOP SAFETY PICK Award from the US Insurance Institute for Highway Safety (IIHS) in the “Large SUV” category. Aspects tested included crash performance, but also other categories such as pedestrian protection and lighting technology.15 Audi Accident Research Unit Audi supports the “Vision Zero” strategy of road safety organizations in many countries around the world to continually enhance the safety of Audi customers and other road users globally. It is a vision that is also pursued by the United Nations, the WHO, the EU and the German Road Safety Council (DVR).
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It is a vision that is also pursued by the United Nations, the WHO, the EU and the German Road Safety Council (DVR). The primary goal is to eliminate all traffic fatalities and severe injuries.16 In addition to the new and fur- ther development of its active and passive vehicle safety systems, AUDI AG also contributes actively to accident research as part of an interdisciplinary research project in collaboration with the University Medical Center in Regensburg. The Audi Accident Research Unit (AARU) is committed to better understanding causes, circum- stances and consequences of accidents in order to develop proposals and measures to enhance road safety. Audi shares these findings with authorities and public orga- nizations and uses them to progressively develop new models. Internal regulations and management systems Audi places very strict quality demands on vehicle safety. It focuses primarily on customer requirements, on statutory and official stipulations and on the company’s own binding regulations and code of conduct. Every Audi model fulfills strict internal standards, including the Audi Code of Conduct, the Quality Manage- ment Statement of Principle and internal corporate policies on, among other things, Product Safety and Product Conformity and on Automotive Security.
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Photo: AUDI AG ⁸ Source: Euro NCAP: Euro NCAP | Latest Safety Ratings. ⁹ Source: Euro NCAP: Euro NCAP test results for the Audi Q6 e-tron and Audi A5. 10 Source: Euro NCAP: Euro NCAP | Latest Safety Ratings. 11 Audi Q4 e-tron: electric power consumption (combined): 19.2–16.1 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 12 Audi Q4 Sportback e-tron: electric power consumption (combined): 18.7–15.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 13 Audi Q8 SUV e-tron: electric power consumption (combined): 28.0–20.1 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 14 Audi Q8 Sportback e-tron: electric power consumption (combined): 27.3–19.5 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 15 Source: IIHS: 2024 TOP SAFETY PICKs. 16 Source: DVR: Vision Zero | German Road Safety Council.
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15 Source: IIHS: 2024 TOP SAFETY PICKs. 16 Source: DVR: Vision Zero | German Road Safety Council. You can find more information in the Audi MediaCenter.
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137 Audi Report 2024 FinanceStrategy & Company ESG Appendix In general, it can be said that all divisions formulate their quality requirements in goals, manage these based on key figures, are subject to independent controls and therefore contribute to the achievement of corporate goals. In relation to vehi- cle safety, this means that all product categories are reviewed in the context of quality controls regarding their impact on health and safety before they are delivered to customers. And Audi continues to keep an eye on its products even after they have been delivered – in line with the product monitoring obligations incumbent on a car manufacturer. In addition to interfaces to the Environ- mental Compliance Management System (ECMS), the Product Compliance Manage- ment System (PCMS) and the Committee for Product Safety (APS), the interface to the Compliance Management System (CMS) should also be highlighted, in par- ticular, in terms of continually optimizing the response to the effects of products and services on health and safety. The goals of interdisciplinary collaboration include exchanging information on process weaknesses, initiating improvement measures when necessary and therefore minimizing compliance risks related to product safety and product conformity.
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The goals of interdisciplinary collaboration include exchanging information on process weaknesses, initiating improvement measures when necessary and therefore minimizing compliance risks related to product safety and product conformity. Audi has firmly established the PCMS in the company as a regulatory framework for guaranteeing product compliance and con- tinues to develop this permanently. Every employee plays their part in ensuring that product compliance risks are minimized, by observing regulations in specific corporate policies. Audi also monitors its products after they have been placed on the market. If this results in indications of potential deviations in the required product safety or conformity, the Committee for Product Safety (APS) sees to the requisite clari- fication of facts and initiates necessary measures, among other things, in coordi- nation with the relevant authorities where applicable. This includes any necessary product corrections.
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This includes any necessary product corrections. Intuitively recognizable warning symbol on the communication light of the Audi Q6 e-tron.17 Photo: AUDI AG Key figures Vehicle safety Vehicle safety at AUDI AG18 Unit 2024 2023 2022 Percentage of relevant product and service categories where the impact on health and safety was checked with respect to opportunities for improvement Percent 3.7 – – Total number of regulatory violations and/or breaches of voluntary codes of conduct in connection with the impact of products and services on health and safety in the 2024 reporting period: Regulatory violations that resulted in a fine or a sanction Number 0 – – Regulatory violations that resulted in a warning Number 0 – – 17 Audi Q6 SUV e-tron: electric power consumption (combined): 19.8–16.0 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 18 Recording of data as of December 5, 2024.
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FinanceStrategy & Company ESG Appendix 138 Audi Report 2024 C ustomers and investors are at- taching more and more impor- tance to corporate citizenship, i.e., whether a company donates money, materials or human resources to support projects with social or environmental goals. And employees, suppliers and society, too, have an interest in compa- nies helping to solve social challenges. As such, actively doing something for the common good is a key factor in building long-term relationships. It shows that the company is living up to its respon- sibilities and working to bring about positive change in society. Participating in voluntary social activities, for exam- ple, also makes employees feel that they are part of a community. If a company demonstrates little or no social commit - ment, on the other hand, this can have a negative impact on its reputation and expose it to additional financial risks. Corporate citizenship AUDI AG considers itself to be a responsible member of society. For this reason, the company supports social causes in a variety of ways, such as through education and training projects, social interaction or charitable and humanitarian aid.
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For this reason, the company supports social causes in a variety of ways, such as through education and training projects, social interaction or charitable and humanitarian aid. Photo: AUDI AG 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.
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FinanceStrategy & Company ESG Appendix 139 Audi Report 2024 Corporate citizenship has therefore been a major concern of AUDI AG for many years. The company’s activities in this area are based on the Audi Code of Conduct, the Support Guidelines for Corporate Citizenship and the Audi donation policy. Guiding principles of the Audi commitment To ensure that the company’s activities make a measurable contribution to society, all corporate citizenship initiatives at AUDI AG and its production sites¹ adhere to three guiding principles: Engage, Educate and Empower. Engage encompasses sponsorship, events and cooperation with non-profit organi- zations. Some notable examples from the year under review are the Audi Summer Concerts, a cultural event that attracted more than 20,000 visitors, and the com- pany’s support for regional amateur and professional sports. The latter included sponsoring the Heilbronn Trollinger Mar- athon and the Győri Audi ETO KC handball club in Hungary. In addition, AUDI AG organized various donation campaigns under the motto “Engage” during 2024.
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In addition, AUDI AG organized various donation campaigns under the motto “Engage” during 2024. Apart from the traditional Christmas appeal, which saw the company top up the workforce donation of EUR 490,716 to a total of EUR 1 million, one project worthy of spe- cial mention during the year under review was the “Team spirit – cultural diversity” campaign. A total of EUR 100,000 went to 58 clubs and associations in the Ingolstadt and Neckarsulm regions that promote social integration and international under- standing and stand up against racism. The donations were presented to the recipients in July 2024 at the Festival of Cultures in Ingolstadt and at the Audi Forum Neckarsulm. After floods hit southern Germany in mid-2024, the company and its work- force donated over EUR 1 million to 56 non-profit organizations that had provided assistance during the summer floods or had suffered damage themselves in the area around the German production sites.² Employees donated a total of around EUR 285,000, which the company topped up to EUR 750,000. Educate unites all training and education programs that are offered or supported by Audi.
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Educate unites all training and education programs that are offered or supported by Audi. A good example: Audi Hungaria staff can take part in a volunteer program and choose from five main focus areas, includ- ing #care4environment or #helptoimprove. The latter sees Audi employees helping out at events like children’s summer camps or tutoring students during the school year. Thanks to the commitment of these employees, the participating children benefit from long-term and sustainable improvements in their education. Apart from local projects like these, AUDI AG also works with a number of national and international universities to help shape progress in research and teaching – for example, by funding endowed professor- ships. Among other things, the company is currently funding a professorship at the Technical University of Ingolstadt on the topic of artificial intelligence in production. Empower refers to all measures where AUDI AG acts as an amplifier. Through various projects, the company supports multipliers such as employees, customers or other stakeholders. These groups are actively encouraged by Audi to advocate sustainable practices and lifestyles – for example through volunteering or social ac- tivities.
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These groups are actively encouraged by Audi to advocate sustainable practices and lifestyles – for example through volunteering or social ac- tivities. AUDI AG is particularly keen to get young talent involved at an early stage: For example, to mark World Refugee Day 2024, Audi apprentices in Ingolstadt built two ref- ugee housing units designed by the UN that offer refugees in crisis areas emergency shelter. Anyone who was interested had the opportunity to take a look at the accommo- dation at Audi in Ingolstadt and learn more about how it works and about the living conditions of refugees in crisis areas.
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Anyone who was interested had the opportunity to take a look at the accommo- dation at Audi in Ingolstadt and learn more about how it works and about the living conditions of refugees in crisis areas. In addition, apprentices working for the company were involved in the “Schanzen- Geber-Camp” during the year under Illustration: C3 Visual Lab Engage Educate Empower Guiding principles Fields of activity Corporate citizenship (site-based) Donations of goods and money to regional associations and aid organizations, as well as community sponsorships Financial donations to international aid organizations in crisis situations Support of the research of new technologies and environmental protection activities Educational projects Promotion of research and education, for example through the endowment of professorships Projects focused on environmental education, for example events like “Let’s talk Greenovation” Volunteer employee campaigns Promotion of global sustainability initiatives and social start-ups Promotion of green start-ups and granting stipends for participation in international conferences such as the One Young World Summit Global impact (cross-site) Audi Environmental Foundation (nonprofit) ¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico).
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² Production sites of AUDI AG in Ingolstadt and Neckarsulm (Germany).
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FinanceStrategy & Company ESG Appendix 140 Audi Report 2024 review, a soccer vacation camp for children with and without special needs. This camp is regularly organized by FC Ingolstadt, a soccer club sponsored by Audi, along with the Audi Schanzer Football School, the St. Vinzenz Caritas Center, the City of Ingolstadt and Audi. The company also makes a point of continuously promoting the volunteer work of its employees. In 2024, nearly 1,000 employees at the Ger- man production sites² alone got involved in around 100 team projects benefiting social institutions in Ingolstadt and Neckarsulm. Audi not only provides the platform for employees to organize and participate in these activities, but also makes a donation for each initiative, which can then be used, for example, to purchase the necessary materials. The number of team activities in 2024 was double that of the previous year.
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The number of team activities in 2024 was double that of the previous year. Fields of activity of the Audi commitment All projects relevant to corporate citizen- ship that are pursued by AUDI AG and its production sites¹ can be assigned to at least one of the three guiding principles of +100% of employees volunteered at social institutions in Ingolstadt and Neckarsulm compared with the previous year “Engage,” “Educate“ and “Empower.” Three fields of activity are relevant for implementing the projects. Corporate citizenship: Corporate citizen- ship bundles all activities at the AUDI AG production sites.¹ And because each site has its own specific needs, it also has its own corporate citizenship officers. These officers ensure that the help and support provided goes exactly where it is most urgently needed at the site in question. Global impact: This field of activity relates to activities outside of the Audi production sites.¹ One highlight worth mentioning here is the collaboration with the Social Team spirit campaign: Audi supports employees who engage in volunteer work. ¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico).
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¹ Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ² Production sites of AUDI AG in Ingolstadt and Neckarsulm (Germany). Photo: AUDI AG Impact Start-up Academy (SISTAC e. V.), which organizes learning partnerships between companies and social start-ups. In the context of such a partnership, Audi employees provided consulting services to eWAKA Mobility Limited, an African start- up that offers electric last-mile transport of goods and people in Kenya and Rwanda. The Audi team analyzed the start-up’s business model over an extended period of time and, based on their findings, developed a concept for a B2B platform that enables drivers and customers to connect with each other as quickly and easily as possible. The project came to a successful conclusion in 2024. Audi Environmental Foundation: The Audi Environmental Foundation was established as a charitable organization in 2009 to expand the company’s social and, in particular, environmental commitment. It sponsors research into new technolo- gies and scientific methods for a future worth living.
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It sponsors research into new technolo- gies and scientific methods for a future worth living. In doing so, it opens up new avenues for acting sustainably and shows how technology, environmental protection and social commitment can complement
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FinanceStrategy & Company ESG Appendix 141 Audi Report 2024 each other. One example of this is the partnership between the Brazilian NGO Litro de Luz, Audi do Brasil and the Audi Environmental Foundation. Litro de Luz supports people living in remote areas without electricity by providing them with access to solar lighting. The collaboration kicked off in 2022 with an initiative for Key figures Corporate citizenship Unit 2024 2023 2022 Employee donations³ EUR 1,237,156 953,815 968,386 Expenditure on corporate citizenship EUR million 40.0 46.8 50.5 ³ Includes AUDI AG Christmas donation, flood donation, “Last Cents” campaign and special donations. Photo: AUDI AG three settlements in the Amazon region. The installation of 30 solar poles and more than 150 solar lamps benefited over 600 people in the communities of Nova Canaã, Nova Jerusalém and Lindo Amanhecer. In 2023 and 2024, the initiative provided further villages with energy-efficient, sus- tainable lighting solutions – most recently Audi Environmental Foundation, Audi do Brasil and Litro de Luz bring solar lighting to remote villages in Brazil.
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in the Lower Xingu indigenous reserve in the Brazilian state of Mato Grosso. Here, 20 indigenous communities, 140 families and over 600 residents were provided with solar lighting in 2024 alone. Working with locals and volunteers from Audi do Brasil, Litro de Luz was able to install 170 com- pact lighting and energy solutions.
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FinanceStrategy & Company ESG Appendix 142 Audi Report 2024 2 3 Governance Photo: AUDI AG Audi S6 Sportback e-tron: electric power consumption (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A.
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FinanceStrategy & Company ESG Appendix 143 Audi Report 2024 Photo: AUDI AG Content G Audi S6 Sportback e-tron: electric power consumption (combined): 16.7–15.7 kWh/100 km; CO₂ emissions (combined): 0 g/km; CO₂ class: A. 144 Sustainable corporate governance 147 Compliance and integrity 151 Sustainable business development
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FinanceStrategy & Company ESG Appendix 144 Audi Report 2024 Sustainable corporate governance Ecological, social and economic sustainability has a significant influence on the strategic alignment of Audi. The ESG (environmental, social and governance) criteria are a key foundation for decision-making. GRI 2-12, 2-13 Photo: AUDI AG A udi views sustainability as the creation of long-term value on the basis of responsible innova- tion, thereby minimizing negative impacts on the environment, society and the economy. To achieve this, the company applies ESG criteria to assess and manage its activities and performance in respect of environmental impact, social responsibility and corporate governance. Sustainable corporate governance is an integrated and holistic approach that translates this concept into suitable guid- ing principles. This is particularly import- ant, on the one hand, because statutory requirements are growing and becoming increasingly stringent, a process that is expected to continue in the future. On the other hand, stakeholders more frequently measure companies by their commit- ment to sustainability and the way they implement this.
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On the other hand, stakeholders more frequently measure companies by their commit- ment to sustainability and the way they implement this. For example, consumers increasingly value sustainably produced goods when making their purchase deci- sions and implicitly expect companies to not only promise but also actively promote action on climate and environmental pro- tection. On the capital market as well, sus- tainability plays an important role along- side economic factors in decision-making by investors and analysts. Sustainable corporate governance therefore not only contributes to the future viability of society but also has positive effects for companies themselves. Com- panies that are managed sustainably are more likely to be successful and innovative 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. in the long term and are better able to manage their risks and operate efficiently. For Audi, a focus on sustainability criteria is crucial to the company’s future viability and offers the opportunity to position itself more strongly with respect to its custom- ers and the competition, thereby tapping into additional market potential.
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FinanceStrategy & Company ESG Appendix 145 Audi R eport 2024 Advertising and communication principles Sustainable corporate governance at Audi also includes the area of market- ing. The Booklet of Policies, which consolidates all the company’s statements of principle in respect of sustainable and ethical corporate governance, also includes the advertising and communication principles. These reinforce the implementation of respectful communication by outlining the expectations AUDI AG has of its employees and business partners when providing advertis- ing and communication services for the company. The requirements set out in this guideline are consistent with the ethical standards and corporate values of AUDI AG. Further information can be found here. ¹ Audi r egards 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 deliv- ered 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 deliv- ered to a customer, CO₂ emissions produced are not taken into account. ² Audi pr oduction sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), San José Chiapa (Mexico). ³ T o achieve net carbon neutrality,¹ 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. relevant interest groups in the respective catchment area. To measure commitment to biodiversity at its production sites,² Audi has developed a biodiversity index together with the Volkswagen Group. This index covers around 50 parameters. This allows the effectiveness of measures to be assessed and progress to be recorded more easily. Further information can be found in the article entitled Biodiversity. Human rights: Compliance with human rights is an integral part of responsible corporate governance, not only within the company itself but also across the supply chain and in relation to business partners.
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Human rights: Compliance with human rights is an integral part of responsible corporate governance, not only within the company itself but also across the supply chain and in relation to business partners. The company requires its suppliers and business partners to respect human rights and performs risk-based audits in this regard. The sustainability requirements of the Volkswagen Group are summarized in the Code of Conduct for Business Partners (CoCBP). Important aspects of this include prohibiting child labor and all forms of discrimination and ensuring occupational safety and fair remuneration. Further infor- mation can be found in the article entitled Responsibility in the supply chain. Diversity & inclusion: AUDI AG is commit- ted to ensuring that all employees – regardless of gender, origin or other personal characteristics – have the same opportunities to develop their talents and abilities. Appointing women to leadership positions is one of the main levers in rein- forcing equal opportunities. Anchoring sustainability within the company Sustainable corporate governance at Audi is based on statutory provisions and requirements as well as on clear, self- imposed guidelines and obligations – for example, internal policies on sustainability management.
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For Audi, complying with ethical princi- ples as well as statutory requirements is a matter of course and the minimum it can do. The company has set itself the goal of integrating sustainability effectively and efficiently into its management structures and decision-making processes. Implementing sustainability The three ESG fields – environmental, social and governance – are considered extensively in corporate governance at the Audi Group. To ensure that the organiza- tion has the best possible impact on the environment, people and the economy, the Board of Management has created suitable structures and participates in the pursuit of the goals that are set. This is aimed at incorporating effective measures into the corporate strategy and integrating them into the company’s business operations. In this way, Audi not only complies with regulatory requirements but also focuses specifically on the following aspects: Efficiency: At Audi, vehicle efficiency has long been a key topic that customers can experience directly in the product. As an ex- ample, the new fully electric Audi Q6 e-tron and Audi A6 e-tron models on the Premium Platform Electric (PPE) set standards for efficiency, range and charging speed.
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As an ex- ample, the new fully electric Audi Q6 e-tron and Audi A6 e-tron models on the Premium Platform Electric (PPE) set standards for efficiency, range and charging speed. The main contributors to this efficiency are the 800-volt architecture, an innovative powertrain and modern battery and charge management. At the same time, Audi launched a new generation of efficient internal combustion engines in the year under review. Its advanced MHEV plus mild hybrid technology improves response char- acteristics and, because it allows drivers to cover longer distances electrically, can help reduce CO 2 emissions from vehicle opera- tion. Further information can be found in the article Audi on the offensive. Circular economy/resource efficiency: Audi is working on many projects that foster the transition to the circular econ- omy, both within the company and by cus- tomers – for example, with guidelines for recycling-friendly product development, in- ternal targets for the proportion of second- ary material in future vehicle generations and Audi Genuine Exchange Parts, which represent a resource-friendly alternative to new parts.
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In light of the forecast shortage of raw materials for primary and secondary materials, the company is committed not only to early, forward-looking planning but also to the efficient use of materials. Further information can be found in the article entitled Resource management and circular economy. Decarbonization: The company aims to reduce the CO 2 emissions throughout the life cycle of its models and along the entire value chain. This is to be achieved above all through the net carbon neutrality¹ of all production sites² as well as the electrifica- tion of the model portfolio. Audi aims to be net carbon-neutral¹ by 2050 at the latest.³ Biodiversity: Audi supports various initiatives to preserve biodiversity. One of these is the Alliance for Water Stewardship (AWS), which works toward the sustain- able use of local water resources. The AWS standard is an internationally applicable set of rules for companies and organiza- tions aiming to use water as efficiently as possible and with due consideration of all
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FinanceStrategy & Company ESG Appendix 146 Audi Report 2024 Management remuneration is tied to the associated targets and their achievement. Regular discussions are held within the Board of Management as well as at the management levels regarding the degree of target achievement and corresponding measures. Further information can be found in the article entitled Corporate culture and equal opportunities. Managing sustainability Audi uses the Sustainability Steering Model (SSM) to manage sustainability topics on the basis of targets. The model fosters regular dialogue between the Sustainability department and specialist areas, serving as the basis for integrating sustainability matters in processes. The central instance of the SSM is the Sustainability Council, which is chaired by the Sustainability Strategy depart - ment. The Council organizes the flow of information, ensures interaction between different sustainability projects, assigns additional budget resources and prepares decisions for higher-level instances. Its other tasks include the systematic anal- ysis and anticipation of future regulatory developments – known as regulatory foresight. The SSM is being constantly refined, the effectiveness of the measures reviewed and processes adapted as required. In this way, Audi ensures that the measures taken not only have a positive impact in the short term, but also contribute to long-term sustainable development.
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In this way, Audi ensures that the measures taken not only have a positive impact in the short term, but also contribute to long-term sustainable development. Collaboration with stakeholders It takes the collaboration of all stakehold- ers – within and outside the company – to make progress in the aforementioned focus topics. That is why Audi fosters good rela- tionships with its stakeholders, encouraging their active participation. To ensure effective stakeholder management, relevant internal and external stakeholders are identified and suitable sustainability dialogue formats arranged. Audi communicates the progress achieved, continuously and transparently. In this way, the company is able to consider the different interests of stakeholders in its decision-making and strategy processes. In 2024, Audi organized more than 35 stakeholder dialogue events attended by more than 21,000 people and participated in existing events such as the German gov- ernment initiative concerning the respect of human rights in the supply and value chains of the German automotive industry and the Greentech Festival in Berlin. The top issues addressed were: climate- neutral mobility and the transition to elec- tric mobility, sustainability in the supply chain and human rights and the circular economy and resource-friendly materials.
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The top issues addressed were: climate- neutral mobility and the transition to elec- tric mobility, sustainability in the supply chain and human rights and the circular economy and resource-friendly materials. The company also contributes to initiatives aimed at achieving progress in environ- mental, economic and social issues. Unit 2024 2023 2021 Trust value of external stakeholders⁴ Percent 74 74 – Key figures Sustainable corporate governance ⁴ The value is calculated from the Trust & Like Score. Various stakeholders are asked to what extent they value and trust the company. In the reporting year, Audi reached a score of 71 percent for the German market among 10,502 people surveyed (international: 74 percent among 31,595 people surveyed). Special focus on human rights In the year under review, stakeholder dialogue focused on human rights. As a global company in the automotive industry, Audi closely examines the human rights risks and challenges at various stages of the supply chain with the goal of understanding and improving the human rights situation. In a moderated panel discussion, the company and various stakeholders discussed which mechanisms to involve stakeholder groups are already successful and where there are still bar- riers that prevent the sustained participation of potential persons of interest.
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146
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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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501 |
audi.pdf
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In a moderated panel discussion, the company and various stakeholders discussed which mechanisms to involve stakeholder groups are already successful and where there are still bar- riers that prevent the sustained participation of potential persons of interest. The event in Berlin in November 2024 brought the Human Rights Officer of AUDI AG together with representatives of the Federal Ministry for Economic Cooperation and Development, the UN Global Compact and non-governmental organiza- tion Germanwatch e.V. This dialogue demonstrates that Audi – as a responsible enterprise – is actively shaping sustainability topics. Progress is communicated transparently to stakeholders and the resulting feedback enables Audi to success- fully implement solutions in the context of specific projects, regions and persons of interest.
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146
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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]: 0.95
|
[Guess]: No
[Confidence]: 0.9
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