With the introduction of the IT-based sustainability Strategic dialog with stakeholders

With the introduction of the IT-based sustainability Strategic dialog with stakeholders

management system and the further integration of the KPI For Volkswagen, the ability to help shape national and (key performance indicator) systems, we have created the international corporate networks is an important component basis for comprehensive and timely CSR and sustainability of the permanent dialog with key social groups and actors. reporting in the Group. The improved control efficiency We contribute our technical and social capability here and and transparency of the KPI system allow Volkswagen to support numerous projects. The Group is represented on meet the increasing expectations of its stakeholders for an the board of the leading European business network for up-to-date, differentiated presentation of the Company’s corporate social responsibility, CSR Europe. At a national CSR and sustainability performance.

level, we are represented on the board of econsense, the Forum for Sustainable Development of German Business.

Code of Conduct and guidelines

Along with numerous other companies, Volkswagen has Our Code of Conduct, which is applicable throughout the signed the “Code of Responsible Conduct for Business” Group, provides our employees with guidance on how to initiative. manage legal and ethical challenges in their daily work.

Since 2002, we have been committed to the largest and These principles include the Group values of closeness to most important CSR initiative in the world, the Global customers, maximum performance, creating value, renew- Compact. The 7,000 participating companies from over ability, respect, responsibility and sustainability. All employees 135 countries work together to shape a more sustainable are equally responsible for adhering to these principles.

and equitable world economy. Volkswagen makes a significant

RESULTS OF THE SAM 2012 ASSESSMENT as percent

Economic dimension

Environmental dimension

Social dimension

Volkswagen AG Industry

average Total

contribution to this initiative. Ten principles governing The brand aims to use its “Think Blue. Factory.” environ- human rights, labor standards, environmental protection mental program to reduce the most important environ- and the fight against corruption describe the values of the mental indicators, such as demand for energy, waste,

Global Compact. In 2012, we again achieved the “Global water consumption, CO 2 and solvent emissions by 25% in Compact Advanced Level” and guided our business activities the period up to 2018. To do this, uniform measuring and at all locations of our Company by the Global Compact reporting methods are being implemented in all plants principles. With our expertise, we also help other companies around the world. Supporting ecological projects and in the Global Compact to embrace their global responsibility. getting involved in cooperative projects are also core An example of this is our active participation on the components of “Think Blue.”. A good example of this was advisory board for the “Sustainable Supplier Chain” project. the “Think Blue. World Championship 2012.” fuel-saving Volkswagen is also involved in the campaigns of the Rio+20 competition, in which 18 teams from 17 countries showed United Nations Conference on Sustainable Development.

that driving in a fuel-saving way is fun and that people’s Volkswagen and the German Nature and Biodiversity personal driving habits positively influence fuel consumption. Conservation Union (NABU) – the largest environmental

protection organization in Germany – have been working Volkswagen in sustainability rankings and indices

together for more than ten years. This unique cooperation As analysts and investors view CSR and sustainability works because both sides take into account the other’s performance as leading indicators of forward-looking different interests. The cooperation is composed of three corporate leadership, they also increasingly base their elements: advice, dialog and projects. As part of this, we recommendations and decisions on companies’ CSR and are raising public awareness about issues regarding the sustainability profile. Sustainability ratings are particularly environment and sustainability.

well suited to evaluating a company’s environmental, social The fleet management project with Volkswagen Leasing and economic performance. If a company achieves the GmbH is an ecological and economic success. We are highest scores in these ratings, it not only sends a clear reducing both CO 2 emissions and costs on the part of fleet signal to its stakeholders, but also raises its attractiveness operators by deploying our most efficient vehicles. The as an employer and the motivation of its existing employees. project is also a particularly effective form of climate

As in the previous years, Volkswagen was again able to protection, since part of the project involves us providing take its position among the leaders in its sector in the most funds for the protection of moors in Germany, which are important international ratings and indices in 2012. We

important CO 2 reservoirs. are one of only three automobile companies listed in the The Volkswagen brand’s “Think Blue.” motto is a good Dow Jones Sustainability World Index, which is based on example of its ecologically end-to-end concept. This means the assessment performed by Swiss company Sustainable that ecological sustainability represents a core element

Asset Management (SAM) . MAN is the only German company – over the overall lifecycle of the products. Environ- in the industrial engineering sector to be represented in mentally relevant considerations such as climate protection the Dow Jones Sustainability World and the Dow Jones and resource conservation are integrated into our Sustainability Europe indices. Norwegian insurance technical development at an early stage. “Think Blue.” also company Storebrand also selected Volkswagen as an invest- gives concrete advice on how to act, so that each of us can ment for its new Trippel Smart and SPP Global Topp 100 do our part by adopting environmentally conscious behavior.

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CO 2 EMISSIONS OF THE VOLKSWAGEN GROUP’S EUROPEAN (EU 27) NEW PASSENGER CAR FLEET in grams per kilometer

fund, which were launched in 2012. This fund only considers of CO 2 per kilometer. For 207 model variants, we are already the 100 most sustainable companies in the world. We are below the threshold of 120 grams of CO 2 per kilometer. Of leading in the “social” segment there.

these, 33 model variants are below 100 grams of CO 2 per As of December 31, 2012, Volkswagen was represented kilometer (see chart on page 196). in the following sustainability indices: Advanced Sustain-

We also concentrated on communication technologies ability Performance Index ( ASPI) , Dow Jones Sustainability in 2012, in particular vehicle-to-vehicle and vehicle-to-infra- World Index, ECPI Ethical Index Europe, ECPI Ethical Index

structure communication. Exchanging information with EMU , ECPI Ethical Index Global, Ethibel Sustainability other road users and with infrastructures, and therefore Indices (ESI) Excellence, FTSE 4Good and STOXX Global connecting vehicles to their environment, will be a key ESG Leaders Indices.

component of the future of automobility.

Lightweight construction for large series is becoming

RESEARCH AN D DEVELOPMENT

increasingly important to achieve ambitious CO 2 reduction Research and development activities in the Group again targets in the automotive industry. The mutual cooperation concentrated on two areas in 2012: expanding our product between the Volkswagen Group’s research and develop- portfolio and improving the functionality, quality, safety ment units and the production and components depart- and environmental compatibility of Group products.

ments is accelerating research into lightweight construction and its future production technologies. The entire value

Focus of our research and development activities

chain, from the carbon fiber through the production Research and development focused in particular on the process down to the manufacturing of functional light- ecological and economic alignment of our vehicle portfolio. weight construction components – including the concep- The Group Chief Officer who manages and coordinates all tional skills for designing parts and recycling – is modeled in Group activities concerning the environment, energy and the “Open Hybrid LabFactory” research factory. Inter- new business areas expanded his work during the reporting national technology leaders and research pioneers are in period so as to achieve the greatest possible synergies.

charge of all the steps in the process and are incorporating The Volkswagen Group has set itself the target of cutting their combined expertise into developing the jointly used the average CO 2 emissions of its new European passenger research factory.

Another of Volkswagen’s areas of expertise is virtual We already reduced this figure over the past five years by technologies. In the past, these were successfully used to

car fleet to under 120 grams of CO 2 per kilometer by 2015.

25 grams of CO 2 per kilometer to 134 grams of CO 2 per speed up and improve the vehicle development, production, kilometer. From 2012 onwards, the CO 2 emissions for or service process. However, these technologies are also vehicle manufacturers’ new European passenger car fleets becoming available for automotive customers, with end are regulated by law. For 2012, 65% of the new vehicle products that are more high-performance than ever, such fleet had to have emissions below the statutory value of 130 as smartphones. The primary focus is on augmented

grams of CO 2 /km: the figure for the Volkswagen Group in reality technology, in which the real world is recognized the reporting period was 120 g CO 2 /km. We currently offer and enriched with virtual information. Smartphones are

a total of 324 model variants that emit less than 130 grams

CO 2 EMISSIONS – STATUS QUO Number of vehicles

using this technology to become innovative owner manuals: strong engine and seven-speed direct shift gearbox use an customers can film a part of the vehicle on their smart- average of only 4.5 l of fuel per 100 km and produce

phone and receive multimedia information about how to 105 g/km of CO 2 per kilometer.

use it. The Audi brand is the first to put this technology into Following the Touareg Hybrid, the Jetta Hybrid was the the “Audi A1 eKurzinfo” series smartphone application. second Volkswagen in 2012 to have a drivetrain module The Volkswagen Group’s research and development team with both a petrol engine and an electric motor under its are working on other applications for comparable uses in bonnet. The combination of a 1.4 TSI engine (110 kW/150 order to safeguard our leading position in this area.

PS), an electric motor (20 kW) and a seven-speed direct In August 2012, the Volkswagen Group of America opened shift gearbox makes driving both dynamic and economical.

a state-of-the-art research and development center in After the up! was first introduced in 2011, the Volks- California. Drive technologies and vehicles from several wagen Passenger Cars brand presented two more versions Group brands will be tested and optimized here. At the of the small car in the reporting period. The four-door up! heart of this complex is the climate-controlled emissions lets even very tall people get in and out of the vehicle lab, which tests exhaust emissions and performance at comfortably thanks to its wide-opening doors. An optional extreme temperatures. Porsche is expanding its research extra is a panoramic roof, something which is unusual for and development center in Weissach, near Stuttgart, with a this vehicle segment. The eco up! – powered by a CNG engine

state-of-the-art wind tunnel and a design studio, among with 50 kW (68 PS) – leads the pack with CO 2 emissions of other things. ŠKODA is adding 21 new engine and component

79 g/km.

test beds to its technology and development center in The Volkswagen Passenger Cars brand’s innovative Česana, near the corporate headquarters in Mladá Boleslav highlight in the reporting period was the all-new Golf, – one of the largest investments currently being made in which is based on the Modular Transverse Toolkit (MQB) . development in the Czech Republic.

It is up to 100 kg lighter and 23% more efficient than its predecessor.

Innovative products captivate our customers

The newly developed generations of petrol and diesel The “Automotive INNOVATIONS Awards” are presented every

motors ranging from 63 kW (85 PS) to 169 kW (230 PS) year to vehicle manufacturers by the Center of Automotive make it fun to drive. Among other things, they feature a Management, an independent organization that conducts start-stop system and battery regeneration mode to empirical research on automobiles and mobility. The recuperate brake energy as standard and are therefore Volkswagen Group underlined its lead with wins in the particularly fuel-efficient. For example, active cylinder categories “Most Innovative Automotive Company”, “Best management helps the 1.4 TSI petrol engine to use an Manufacturer: Conventional Drives” and “Best Manu- average of 4.7 l per 100 km. The new air conditioning facturer: Vehicle Concepts” in fiscal year 2012.

system design also helps to reduce fuel consumption. A In the following paragraphs we present selected inno- large number of new safety and assistance systems are also vations – new models, powertrains and systems launched available for the Golf. Some examples are the Front Assist during the past fiscal year.

with an integrated city emergency braking function, Cylinder deactivation was used in a four-cylinder turbo fatigue detection, an electronic differential lock as standard, engine for the first time in the new Polo BlueGT. This the Lane Assist lane keeping assistant, road sign technology automatically deactivates the second and third recognition and the latest generation of the Park Assist cylinders under light and medium load conditions without automatic parking assistant, which warns against obstacles the driver noticing. This significantly reduces the 1.4 TSI

with a graphical 360 degree display. The multi-collision engine’s fuel consumption. The sporty Polo BlueGT’s brake, which comes as standard and was awarded a

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“Golden Angel” in 2012 from German automobile club engines meet all the requirements of the future Euro 6 ADAC , slows the vehicle down after an accident so as to emission standard. reduce the remaining energy and thus avoid typical

In fiscal 2012, MAN celebrated the world premiere of secondary accidents. Additional technologies such as the the new TG family of trucks, which comply with the future progressive steering system, a driver profile selection with Euro 6 emission standard. These boast fuel consumption five programs and the new information and entertainment just as low as their particularly efficient predecessors. system with a display that reacts to hand movements via a

proximity sensor round off the specification package. On Studies and concept vehicles show the way into the future

the outside, the Golf features timeless design cues with In this section, we describe selected concept vehicles and horizontal front lines, a pronounced C-pillar and perfectly studies that we presented in 2012 alongside the numerous formed, minimalist styling.

series vehicles.

Audi celebrated the world premiere of the third-gener- In 2012, the Volkswagen Passenger Cars brand presented ation Audi A3 in fiscal year 2012. It was the first vehicle in the advanced Cross Coupé concept car, a compact SUV the Volkswagen Group to be based on the Modular Trans- with an innovative four-wheel drive and a plug-in hybrid verse Toolkit and has benefited from the associated drive. Its progressive and dynamic presence gives a fore- reduction in complexity, costs and time required for taste of the design of future SUV models. The vehicle has development. The new A3 Sportback is up to 90 kg lighter three engines that work together efficiently as a hybrid than its predecessor and, as a vehicle in the premium system: a TDI engine with 140 kW (190 PS) and an electric compact class, can be fitted with a range of driver assistance motor with an output of 40 kW drive the front axle. To run systems such as Audi’s adaptive cruise control. This the Cross Coupé in four-wheel drive or solely on electric maintains a preset distance between the car and the power, an additional electric motor (85 kW) is activated for vehicle ahead up to a speed of 200 km/h by autonomously the rear axle. The Cross Coupé received the “eCar Award accelerating and decelerating.

2012” from readers of “AUTO BILD” and “AUTOTEST” for its Audi expanded its ranges in 2012 with the new A6 winning combination of a powerful design and environ-

hybrid and A8 hybrid models. Both models have a 2.0 TFSI mentally friendly drive.

engine and an electric motor and can be powered by both As part of the launch of the new Golf, the Volkswagen the combustion engine and electric motor, as well as in Passenger Cars brand also presented the new Golf hybrid mode. During the lag phases, the vehicles recu- BlueMotion concept car. With an average fuel consumption

perate energy while strong acceleration activates both of 3.2 l of diesel per 100 km and CO 2 emissions of only engines. With a total output of 180 kW (245 PS), the A6

85 g/km, it is scoring top marks and setting new bench- hybrid only uses 6.2 l of super grade fuel, while CO 2 marks in its vehicle class.

emissions are only 145 g/km. The technology of the Taigun, a compact SUV concept The new SEAT Leon is the first vehicle in the A segment

car, is based heavily on the New Small Family. Powered by a to use full LED headlight technology. This supports the new 1.0 l three-cylinder TSI engine with 81 kW (110 PS), vehicle’s exceptional design while increasing its functionality. the four-seater has an average fuel consumption of The Leon represents a revolution for the SEAT brand in approximately 4.5 l per 100 km. Its external appearance is terms of quality and appeal – particularly in its interior. dominated by a practical roof railing system with integrated The Leon is also based on the Modular Transverse Toolkit. LED spotlights. The interior features rotating dials in the The resulting 90 kg weight saving compared with the control panel’s air vents for the first time, which can be previous model gives it more dynamic handling and has a used to control the temperature and blower speed as well positive impact on fuel consumption. The optimized and as to read the settings. finely tuned chassis combines comfort and a sporty design,

In the design and vehicle and drive concept areas, Audi in line with the SEAT brand image. A comprehensive is showing the way to the future with its crosslane coupé assistance and information system rounds off the entire concept study. The combination of technology, construction package.

and design hint at the design language of Audi’s forth- Scania presented its newly developed, innovative 9 and coming Q models. The vehicle concept is entering entirely

13 liter diesel engines as well as two new high-perfor- new territory with its multimaterial space frame – with mance gas engines in fiscal year 2012. These efficient positive effects on weight, costs and the overall energy

balance – and is another evolutionary step for lightweight them allows vehicles for both existing and still to be construction at Audi. An innovative and efficient plug-in developed markets to be planned more efficiently. hybrid drive, based on a specially developed 1.5 three-

The Modular Longitudinal Toolkit (MLB) , which was cylinder TFSI engine and two electric motors, is setting primarily developed by the Audi brand, and its evolu- new benchmarks as it only uses 1.1 l of fuel per 100 km tionary step MLB evo are the basis for vehicles whose

engine is mounted longitudinally to the direction of travel. The Audi A6 L e-tron concept, which was designed We are pushing forward with MLB development in partic- specifically for the Chinese market, is the first hybrid ular with a view to topics such as lightweight construction technology concept for the premium class. The plug-in and electrification. At Audi, vehicles based on the MLB hybrid features a 2.0 TFSI engine with 155 kW (211 PS) have already been rolling off the production line since and a 70 kW electric motor and can cover a distance of 2007. By employing the Modular Transverse Toolkit

and only emits 26 grams of CO 2 per kilometer.

80 km running solely on electric power. (MQB) , the Volkswagen Group has made a quantum leap in The Porsche Panamera Sport Turismo e-hybrid concept the enhancement of the cross-brand platform and modular car combines the next generation of hybrid drives with strategy in 2012. The MQB allows vehicles to be designed new ideas for an evolutionary, sporty body concept. It whose architecture permits a transverse arrangement of combines the performance of a Porsche with comprehensive the engine components. This enables us to produce suitability for daily use. The plug-in hybrid drive with an vehicles with differing lengths, widths and wheelbases, output of up to 306 kW (416 PS) takes the Panamera Sport and thus to meet growing customer wishes for a variety of Turismo from 0 to 100 km/h in less than six seconds. The models, equipment features and design. At the same time, large central TFT color display allows the driver to call up the MQB reduces the complexity, unit costs and time and display a wide range of information – from the tachom- required for development. We take advantage of the eter to driving data and navigation.

savings gained to further improve our vehicles’ equipment Bentley and Lamborghini revealed the potential for features, among other things. In spring 2012, the first additional series at the two brands by showcasing the vehicle to be based on the MQB – the Audi A3 – was Bentley EXP 9 F and Lamborghini Urus SUV studies in the introduced to the market. The Volkswagen Passenger Cars reporting period. With their compelling muscular design brand’s most important model – the new Golf – followed and powerful drive, the two four-wheel drive models offer over the course of the year. In the future, the MQB will completely new interpretations for the vehicle segment.

form the technical foundation for a large number of In 2012, Volkswagen Commercial Vehicles showcased models under the Volkswagen Passenger Cars, Audi, SEAT an extreme version of the Amarok, the Amarok Canyon. and ŠKODA brands. This means that innovations in the This concept car is significantly taller and wider than the areas of infotainment and driver assistance systems, for

series model and is powered by a high-torque 2.0 TDI example, will be widely available.

biturbo engine with 132 kW/180 PS for maximum offroad Under the leadership of the Porsche brand, the Group performance. The 4MOTION four-wheel drive can be engaged is taking the next step in the enhancement of this strategy for offroad use. with the Modular Standard Toolkit (MSB) . The MSB is the MAN showcased the Metropolis heavy truck, a hybrid basis for vehicles whose engine is installed in a longi- research vehicle that can be powered solely by electricity in tudinal direction and that feature rear-wheel drive in the urban areas for quiet, emission-free transport and delivery base version. tasks.

We are also systematically transferring this modular In the reporting period, MAN presented the prototypes concept to other areas of automotive production. The of the 20V35/44G Otto gas engine, which were developed Modular Infotainment System (MIB) provides a variable for stationary use in power plants. The single-charged 10.6 hardware platform across brands and vehicle classes for a MW engine is the highest performing in its segment. It is wide variety of infotainment features and individual designs. extremely effective and complies with all emission limits The Modular Diesel System (MDB) , which forms the basis that are currently known thanks to a large number of for our new, efficient and dynamic generation of three- innovative technological components.

and four-cylinder diesel engines, debuted in 2012 in the new Audi A3.

Leveraging synergies to increase efficiency For new vehicle projects, the individual brands of the Pooling strengths with strategic alliances

Volkswagen Group have access to “modular toolkits”. These Volkswagen continued the existing cooperation arrange- ensure that the synergy effects that exist both between ment with Daimler AG in fiscal year 2012. models in one series and across all series and brands can

We are systematically pressing ahead with the further

be optimized and increased at the same time. Leveraging research and development of high-voltage battery systems for plug-in hybrid drives and electric vehicles, while

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entering into alliances with expert battery manufacturers; Numerous patents submitted by employees

we intensified these in 2012. VOLKSWAGEN VARTA Micro- The large number and technical quality of the ideas sub- battery Forschungsgesellschaft mbH & Co. KG, which we mitted in 2012 demonstrate once again that our employees established in 2010 with our partner VARTA Microbattery are an enormous source of innovation. In the reporting GmbH in Ellwangen, ramped up its activities and started period, they applied for 4,313 patents – 2,128 in Germany seeing very positive results in the reporting period. It aims and 2,185 abroad. The main focus of these innovations to research and develop battery cells suitable for cars as was on the areas of modular infotainment, driver assistance well as the associated production technology. We are systems, electric drive technology and lightweight steel expanding our expertise in the field of electric traction by design. cooperating with a large number of universities.