Audi Sustainability Report 2019 PROGRESS YOU CAN FEEL Audi AI:ME (2019): Studie Audi Sustainability Report 2019 2 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Audi Sustainability Report 2019 5 Audi Sustainability Report 2019 24 Audi Sustainability Report 2019 42 Progress you can feel Progress you can feel Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

How can we make Can sustainability Which technology mobility carbon-neutral? also be profitable? is truly sustainable?

* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), CO₂ combined emissions in g/km: 0

Chapter 1 STRATEGY Chapter 2 OPERATIONS & INTEGRITY Chapter 3 PRODUCTS & SERVICES from page 5 from page 24 from page 42

Audi Sustainability Report 2019 61 Audi Sustainability Report 2019 82 Progress you can feel Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Contents

The topics addressed in this Audi Sustainability Report 2019 are oriented to the results of the materiality analysis (page 22). 61Is “clean” industry Is good work The content is divided into five even possible? good for everyone? chapters that each answer a core question with several stories. * Audi e-tron: Power consumption combined in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP) CO₂ emissions combined in g/km: 0 Chapter 4 VALUE CREATION & PRODUCTION Chapter 5 EMPLOYEES & SOCIETY from page 61 from page 82

6 Interview with the Board of 25 In combination 43 Better safe than sorry 62 Closing the circle 83 Audi embraces diversity Management Market or morality? Accident research: the Audi is pursuing the Equal opportunity – for every- What does the new strategy Criteria that govern work of the experts in vision of a holistic cir- one! This is how Audi ensures More about the creation and “consistently Audi” mean for the the way Audi does the Audi Accident Re- cular economy. Can it that employees optimally un- structure of the Sustainability company? An analysis business: the report search Unit succeed? leash their potential Report can be found on: page 14 Audi Sustainability Report 2019 3 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Foreword

To us, “Vorsprung durch Technik” As a premium car manufacturer and means: innovative products to provider of innovative mobility solu- ensure sustainable mobility and tions, we are aware of this social re- a forward-looking, sparing use of sponsibility. resources. This is our foundation for future growth and long-term We address the topic of sustainability Markus Duesmann corporate success. in all its facets. This is the only way that we can create the freedom our Together with the Volkswagen customers desire without adversely Group, Audi was one of the first impacting the environment and soci- companies to commit itself to the ety. Our vision is to provide sustain- goals of the Paris Agreement. In able mobility that can be used by all the long term, we are pursuing a vi- of us with a clear conscience. That is sion of carbon-neutral mobility and why we act in a decisively sustainable want to achieve net zero carbon way throughout all of the divisions. emissions for the entire company Because we realize that every con- by 2050. tribution matters when it comes to achieving the transformation Sustainability is much more than Arno Antlitz Dirk Große-Loheide Peter Kössler just reducing CO₂ emissions with This Sustainability Report stands for each kilometer traveled. This is that as well, and takes an open and why we focus on the overall picture transparent approach to showing how at Audi. We act responsibly, trans- the entire company is striving to make parently and with integrity and rec- this vision a reality. oncile social, environmental and economic goals. The Board of Management of AUDI AG

Sabine Maaßen Hans-Joachim Hildegard Wortmann Rothenpieler Audi Sustainability Report 2019 4 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Brussels Neckarsulm Ingolstadt Changchun Belgium Germany Germany China AUDI BRUSSELS AUDI AG, Audi Sport GmbH AUDI AG FAW-Volkswagen Auto- S.A./N.V. motive Company, Ltd. > A4 Sedan > A7 Sportback TFSI e [2] > Q2 > A4 allroad quattro > e-tron [1] > Q3 > A5 Cabriolet > S7 Sportback > SQ2 > S4 Sedan > e-tron Sportback [1] > A4 L Sedan > S5 Cabriolet > RS 7 Sportback > A3 Sedan > S4 Avant > Q5L > A6 Sedan > A8 > A3 Sportback > RS 4 Avant > A6 L Sedan > A6 Sedan TFSI e [2] > A8 TFSI e [2] > A3 Sportback > A5 Coupé > A6 L Sedan TFSI e [2] > A6 Avant > A8 L e-tron [2] > A5 Sportback > A6 allroad quattro > A8 L TFSI e [2] > S3 Sedan > S5 Coupé > S6 Sedan > S8 > S3 Sportback > S5 Sportback > S6 Avant > S8 L > RS 3 Sedan > RS 5 Coupé > RS 6 Avant > R8 Coupé > RS 3 Sportback > RS 5 Sportback > A7 Sportback > R8 Spyder > A4 Sedan > A4 Avant Martorell Spain SEAT, S.A. Bratislava Slovakia Tianjin > A1 Sportback VOLKSWAGEN China > A1 citycarver SLOVAKIA, a.s. FAW-Volkswagen Automotive Győr Company, Ltd. Hungary > Q7 > Q7 TFSI e [2] Audi Hungaria Zrt. > Q3 > SQ7 Foshan Manaus Sant’Agata > A3 Sedan > Q8 China Brazil Bologna Bolognese > A3 Cabriolet > SQ8 Aurangabad FAW-Volkswagen DAFRA da Amazônia Italy Italy > S3 Sedan > RS Q8 India Automotive Indústria e Comércio Ducati Motor Automobili > S3 Cabriolet ŠKODA AUTO Company, Ltd. de Motocicletas Ltda. Holding S.p.A. Lamborghini S.p.A. > TT Coupé India Private Ltd. > TT Roadster > A3 Sedan > Scrambler > Scrambler > Huracán Coupé > TTS Coupé > A3 Sedan > A3 Sportback > Diavel > Diavel > Huracán Spyder > TTS Roadster > Q3 > Q2 L [1] > Monster >Monster > Aventador Coupé > TT RS Coupé > A4 Sedan > Q2 L e-tron > Multistrada > Hypermotard > Aventador Roadster > TT RS Roadster > Q5 > Panigale >Multistrada > Urus > Q3 > A6 Sedan Amphur San José Chiapa > SuperSport > Streetfighter > Q3 Sportback > Q7 Pluakdaeng Mexico > Panigale > RS Q3 Thailand Audi México S.A. > SuperSport > RS Q3 Sportback Ducati Motor de C.V. (Thailand) Co., Ltd. > Q5 [2] > Scrambler > Q5 TFSI e > Diavel > SQ5 Brief portrait > Monster > Hypermotard > Multistrada The Audi Group, with its brands Audi, Lamborghini and 59,248) million. Operating profit: EUR 4,509 (2018: > Streetfighter > Panigale Ducati, is one of the most successful manufacturers 3,529) million. Approximately 90,783 people work for > SuperSport São José dos of automobiles and motorcycles in the premium seg- Pinhais Audi around the world, of whom 60,083 are in Germa- Brazil ment. In 2019, the Audi Group delivered 1,845,573 ny. Volkswagen AG is the major shareholder of AUDI Audi do Brasil (2018: 1,812,485) automobiles of the Audi brand, Indústria e Comércio AG and controls around 99.55 percent of the share de Veiculos Ltda. 8,205 (2018: 5,750) sports cars of the Lamborghini capital. The Audi Group (headquarters: Ingolstadt), brand and 53,183 (2018: 53,004) motorcycles of the > A3 Sedan is present in more than 100 markets worldwide and > Q3 Ducati brand to customers. Sales: EUR 55,680 (2018: produces at 16 [3] locations in 12 countries.

Fuel/electric power consumption and CO₂ emission figures can be found on page 110 Audi Sustainability Report 2019 5 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

How can we make mobility carbon-neutral?

* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), CO₂ combined emissions in g/km: 0 Audi Sustainability Report 2019 6 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY Sustainability with consistency Audi Sustainability Report 2019 7 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

hey are working toward We can tell that sustainability is making the vision of ze- more than just another item on ro-carbon mobility a re- both of your to-do lists. Tality – and ensuring that Hildegard Wortmann: Authentic- this reality ultimately bears four ity is the most important aspect rings: Hildegard Wortmann, Board when it comes to sustainability. Member for Sales and Marketing, Customers can tell right away and Peter Kössler, Board Member whether you are just half-heart- for Production and Logistics. edly addressing a topic or if it sin- cerely matters to you. Ms. Wortmann, have you Peter Kössler: That also applies to already done something sustain- us as a company and we regard it able today? as our responsibility. We deliber- Hildegard Wortmann: Every ately decided to name one of our contribution matters – even the strategy’s cornerstones “consis- smallest ones. There’s a wide tently sustainable”. range of possibilities. For exam- ple, I consistently avoid using How is this consistency plastic bottles and I purchase expressed? fruits and vegetables that are in Peter Kössler: Many of our employ- season and regionally grown. Even ees spend a lot of time thinking my drive to work is as sustainable about the topic, and that's the as it can be: My company car is a point. There’s a new corporate cul- plug-in hybrid. ture at Audi and the awareness of sustainability plays a fundamental Mr. Kössler, how sustainable has role in it. Peter Kössler, Board Member for Production and Logistics, behind the wheel of an Audi e-tron your day been so far? As a car manufacturer, we're not Peter Kössler: I try to read the just a small cog in the wheel, news before the workday starts. particularly since we are part of What do you think: In what direc- “There’s a new Peter Kössler was born in Ingolstadt, For the most part, I use my smart- a society that regards mobility as tion is sustainability developing, corporate culture at Germany, in 1959. After completing training to become an electrician spe- phone or tablet computer, since a basic human need. Or to put it which also includes diversity and Audi and the aware- cializing in energy devices and a degree I only have digital subscriptions more simply: We're all part of the social policy, for example? ness of sustainability in precision engineering, he started his to many newspapers and maga- "big wheel." Hildegard Wortmann: Sustain- plays a fundamental career at AUDI AG as a trainee in Ingol- zines. Generally, I also try to buy Hildegard Wortmann: We see our- ability isn’t a trendy topic that will role in it.” stadt in 1986. From 2007 bis 2015, Pe- as much as I can from retail stores selves as being in a position to en- just disappear from the agenda at ter Kössler was head of the Audi Ingol- and avoid online shopping, be- sure that we are heading in the right some point. It’s decisive for every- Peter Kössler, Board Member stadt plant. Since September 1, 2017, cause that’s also a way to reduce direction, and as having the respon- one’s future. We as a brand have to for Production and Logistics he has been a Member of the Board of

CO2 emissions and it’s sustainable sibility to do that. Our customers be willing to be measured by that. Management of AUDI AG, where he is re- in many respects. rightfully expect that from us. That’s why we’re examining sponsible for Production and Logistics. Audi Sustainability Report 2019 8 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

“Sustainability isn’t a everything we do and communi- yet – future-oriented. We have trendy topic that will cating our actions with credibility. already initiated a great deal in a just disappear from the Peter Kössler: One example is the short of time, including more sus- fact that Audi, just like the entire tainable mobility options and new agenda at some point. Volkswagen Group, has expressly digital offers. Throughout it all, the It’s decisive for every- committed itself to the goals of “consistently Audi” strategy serves one’s future.” the Paris Agreement, which aim to as our guiding principle, because

Hildegard Wortmann, Board Mem- limit the global rise in temperature that word is so popular at the mo- ber for Sales and Marketing to well below two degrees Celsius ment – and I find it truly electrify- compared with pre-industrial lev- ing for me and my daily work. els. I think that many people aren’t Hildegard Wortmann was aware of that. Making a contribu- But first of all, Audi is attracting born in Münster, Germany, in tion to this as a brand is monu- international attention with a 1966. After pursuing a degree in business administration, mental task and there are different provocative new television she started at Unilever in ways to reach this goal. commercial using the motto: 1990. She switched to the “Let it go.” BMW Group 1998, where How can you find the right direc- Hildegard Wortmann: We have she headed Product Man- tion in the process? to let go of the past to create agement at BMW for eight Hildegard Wortmann: Regardless something new. That's the idea years. In addition, as part of of what we're doing, we always behind the commercial, which is the expansion of the electric have to ask ourselves why we're introducing our new global brand vehicle BMW i, Wortmann set doing it. In the age of networking, campaign. We can’t solve all of a course for electric mobility. the brand image has to be under- the world’s problems alone. After In 2016, she also assumed stood as more than just design, all, we're part of a movement; we brand responsibility for BMW. product and technology. Providing aren’t dictating the terms. The de- She relocated to Singapore services throughout the entire cisive factor is the overall message: starting in January 2018, customer life cycle will make the Every contribution matters. where she was responsible for the Asia-Pacific sales re- decisive difference. At Audi, we gion. Hildegard Wortmann are currently redefining the core Saving energy, doing without has been the Member of the of our brand. We no longer think plastic, preventing and eliminat- Board of Management of of “Vorsprung” simply as what is ing waste – what role does Audi AUDI AG for Sales and Mar- technically feasible. “Vorsprung” play in this context? keting since July 1, 2019. stands for an attitude: We want to Peter Kössler: We're starting with offer our customers genuine per- ourselves. The goal is to consis- sonal added value. tently reduce our environmental footprint – for example, with our ... And what exactly does this “Mission Zero” environmental pro- Hildegard Wortmann, Board Member for look like? gram. This includes goals such as Sales and Marketing Peter Kössler: Modern, or better wanting to make all Audi sites Audi Sustainability Report 2019 9 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

carbon-neutral by 2025. Since model – the Audi e-tron GT. quently reusing these reprocessed consistently. As a company, we part of the Volkswagen Group we have always been perceived as Peter Kössler: Audi is in the midst aluminum sheets in the production are no longer just focusing on the allows us to leverage synergies a particularly sporty brand, we also of a transformation. The future is process. This enabled Audi to save vehicle, but increasingly on the and create a wide and versatile want to be fast and lean in advanc- electric, in all segments. We are around 150,000 tons of CO₂ on ecosystem surrounding the entire electric car model portfolio for ing the transformation. consistently pursuing our electrifi- balance in 2019 alone. And we will electric car as well. Thus, we offer each segment and each group cation and sustainability strategies be able to save even more in the fu- our customers smart charging of customers. To move into the But someone who wanted to re- across our entire model range. ture. Another example is Europe’s solutions from photovoltaic elec- realm of premium electric prod- spond provocatively would find it largest photovoltaic roof system, tricity that we have generated. At ucts, by 2025 Audi will launch easy – sustainability and SUVs are Do you believe that this position- which we dedicated a few weeks the same time, it’s clear that we at least three models based fundamentally a contradiction... ing alone is capable of countering ago at Audi Hungaria in Győr. as a manufacturer cannot take on the modular electric drive Hildegard Wortmann: I don’t the Fridays for Future movement? on the expansion of the charging matrix for more compact vehi- think that’s true. Our customers’ Hildegard Wortmann: The topic of Audi promises to unleash the infrastructure alone. We need the cles. The first models featuring wishes are our top priority. And we sustainability has gained an entire- beauty of sustainable mobility, support of politicians and society. architecture that was developed see that the trend toward SUVs is ly new dimension through move- and to do it profitably. How is it But those who make demands in conjunction with Porsche unbroken. So we have to strike the ments such as #FridaysforFuture. possible to bridge the gap be- must also be willing to deliver. will be introduced to the higher balance of offering customers an Young people are addressing topics tween these two factors? And I can truly say: We're doing segments at the beginning of SUV that they can drive without a that socially highly relevant. I have Peter Kössler: Electric mobility that. this decade. It’s clear to us: The guilty conscience. The Audi e-tron a great deal of respect for their is a prime example of our acting Hildegard Wortmann: Being future is electric! underscores our premise that eco- determination – it shows a highly logical awareness and SUVs are developed sense of responsibility not a contradiction in terms. When for our future. selecting a segment for our first electric vehicle, we made a con- How can listening be put into scious decision to choose one that action? combines sportiness, complete ev- Peter Kössler: We are consistently eryday usability and a high degree working on change – in all of the of potential for growth. corporate divisions. The transfor- Peter Kössler: And don't forget: mation to a net-zero carbon emis- There’s another reason that the sions company is well underway, Audi e-tron is an SUV. We wanted and it's also expressed by the fact to offer our customers a vehicle that we are using resources in the capable of driving long distances. most responsible manner and add- An SUV was the best way to do this, ing closed loops where we can. One because it requires relatively large example of this is the Aluminum batteries. We will be launching Closed Loop. The aluminum sheet Sustainability is part of a compact SUV with the Audi Q4 offcuts that are produced in the the strategy – and it is important to talk about e-tron. press shop are sent directly back to it. An interview with Hildegard Wortmann: And our first the supplier, which then processes Hildegard Wortmann fully electric, high performance and recycles them. We are subse- and Peter Kössler Audi Sustainability Report 2019 10 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Sustainable right down to the very last detail To become the leading carbon-neutral premium provider, Audi is optimizing all parts of its value chain. An overview of key improvements and initiatives

Research & development

Audi is embarking on a great competence center in Neckarsulm, transformation. The company which has assumed the lead within aims to reduce its carbon foot- the Volkswagen Group. print by around 30 percent in Thanks to the mild-hybrid sys- just five years. Audi wants to be tems, vehicles with combustion carbon-neutral by 2050. Rigorous engines also emit less CO₂ than electrification of vehicle fleets con- they did in the past. Once the driver tributes to promoting decarboniza- takes his or her foot off the gas ped- tion. Research and Development al, the drive management system is currently working intensely on selects from one of two options: introducing around 30 electrified Depending on the driving situation models to the market by 2025; and the setting in the “Audi drive they are intended to make up select,” the vehicle either recovers approximately 40 percent of the energy or it glides with the engine brand’s sales. switched off. Furthermore, Audi is banking on The vision is to shape premium plug-in hybrids and, in the future, mobility in a manner that is both ef- on the h-tron fuel cell drive system fortless and sustainable – from the (page 48). Research and develop- time the car is purchased through ment activities pertaining to fuel its ownership and utilization phase cells are being conducted at the and all the way to its resale. Audi Sustainability Report 2019 11 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Procurement Audi is working with its suppliers to Not only is Audi making its own pro- develop measures aimed at reduc- cesses more sustainable, it is also ing carbon emissions. The Audi CO2 supporting business partners (page program focuses on the production 65) in their sustainability efforts. In of materials that require a particu- its corporate responsibility for the larly high level of energy – namely environment and society, Audi wish- aluminum and steel as well as bat- es to collaborate only with partners tery components. who adopt the same approach in Respecting and protecting hu- terms of both their philosophies and man rights is of the utmost priority actions. This not only includes envi- for Audi at all times – especially ronmental protection, but also em- throughout the supply chains. In ployee rights and integrity. A manda- line with the requirements of a tory sustainability rating records and risk-based approach, Audi concen- governs just how well suppliers are trates its measures on the supply able to implement the guidelines. chains that are associated with The rigorous electrification of particularly high risks for negative the vehicle fleet has caused an impacts according to analyses. increased percentage of the CO2 Among the significant challenges emissions created during the lifecy- facing electric mobility is the sus- cle of the car to arise in the supply tainable extraction of the required chain and during production. Thus, raw materials. Production For decades now, Audi has been increasing the “fit- By 2025, the aim is to achieve net zero ness” of its production through intelligent, digitally carbon emissions for all Audi plants. Since connected high-tech solutions. The basis of envi- 2018, the plant in Brussels has served as ronmentally compatible production at Audi is the role model – as the world’s first certified car- environmental and energy management systems bon-neutral large-scale production plant in that have been gradually introduced since 1995. the premium segment. They help when it comes to achieving “Mission:Ze- Throughout the reporting year 2019, decar- ro” (page 69) – that is, production with the lowest bonization was promoted through many proj- possible impact on the environment. ects. For example, numerous energy efficiency All Audi sites are pursuing ambitious goals and measures implemented as part of energy gradually reducing environmentally relevant values management at the sites in Ingolstadt, Neck- for the KPIs of CO₂ emissions, energy, fresh water, arsulm, Brussels, Győr and San José Chiapa organic solvents (VOC) and waste. A functioning cir- led to savings of more than 71,300 megawatt cular economy (page 62) and reductions in energy hours of electricity and approximately 10,800 consumption (page 72) play a key role in this. tons of CO₂ emissions. Audi Sustainability Report 2019 12 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

After sales The advantages of providing such The advent of electric mobility virtual reality training sessions (page will pose new challenges for both 85) are clear: Audi can offer them on dealers and workshops. In addition a global scale, thus ensuring that its to oil changes and spark plugs, electric vehicles are efficient, fast and mechatronics technicians must enjoy premium market rollouts, with now also be able to handle issues technicians who are already optimally such as high-voltage technology. prepared for the new model as soon Audi is committed to supporting its as it is launched on the market. service partners as well as possible The digitalization drive in retailing throughout this transformation includes a wide array of forward-look- toward electric mobility, by offering ing measures. One example is an Audi innovative training concepts, for Service Station, where customers can example. conveniently leave a car to be ser- Thanks to virtual reality training viced or pick it up upon completion sessions, employees can become – independently of the shop's hours. acquainted with technologies such And since the purchasing of used cars Marketing as high-voltage batteries in a realis- is also rapidly changing, Audi is con- tic and safe manner. During process tinuing to develop its online platform In the future, Audi will invest 50 ter at Munich Airport has served as training sessions, they learn step to make buying, paying, registering percent of its marketing budget in a way for the company to demon- by step when it is time to replace a and delivery even more convenient topics pertaining to electric mo- strate that economy and ecology switching unit or battery module. for customers. bility. The company plans to make are not conflicting concepts. The new forms of propulsion even more structure showcases the most mod- emotionally tangible for its cus- ern form of energy and building tomers, dismantle possible reserva- technology, and has a multiplier tions and ignite enthusiasm. effect – for example as an inter- The company’s podcast “The fu- national training center or event ture is electric” is one successful venue. example. The second season is cur- By clearly focusing on sustainabil- rently on the air and was honored ity, Audi is sending a visible signal with the World Media Award in the that it treats the topic holistically, “Automotive” category in 2019. far beyond the electrification of But it is not just digital channels fleet vehicles. That was also ev- where Audi is leading the way; the ident at the end of 2019 in the company also has tangible sus- “Tilted World” advertisement and tainable concepts for the future of the Super Bowl commercial “Let it sales: Ever since the fall of 2019, go” that ushered in the new global the new Audi Brand Experience Cen- brand campaign in February 2020. Audi Sustainability Report 2019 13 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

The scientific history of economist Michael E. Por- the process, various tasks the value chain ter in 1985. According to for rendering service are Porter, the value chain rep- described, from develop- The value chain depicts resents a collection of ac- ment, procurement and production levels as an or- tivities that are performed production to sales and ganized sequence of activ- to design, produce, mar- after-sales services. ities, which in turn create ket, deliver and support a In practice, the value value, use resources and product. chain serves as a means are linked to each other Moreover, it reveals the of analyzing corporate through processes. path a product or a service activities and represents a The concept was first in- will follow throughout the complex methodological troduced by the American transformation process. In instrument.

Audi generally constructs its models so that they substances, such as batteries. Containers for liq- can be dismantled quickly and simply. When a uids, radiators or oil pans are constructed in such a vehicle is returned to an official Audi collection way that they can be emptied in an uncomplicated facility, it is drained and disassembled. Together and residue-free way. Furthermore, factors such as Recycling with other manufacturers, Audi has developed the avoiding the long-term filling of oils and fats, as database IDIS (International Dismantling Infor- well as maintenance intervals geared toward driv- Audi not only focuses on conserving resources mation System) to optimize the overall process of ing modes and vehicle operating conditions, also when designing and building its vehicles, the brand dismantling. reduce the amount of waste in workshops. also promotes recycling and reusing – in keeping IDIS contains type-specific information for pro- Used components and assembly groups such as with the concept of the circular economy (page fessional and environmentally-friendly handling, engines, transmissions, axles, starters, electronic 62). This is why Audi has teamed up with (external) starting with information about draining automo- parts and many other components are then re- partners to create a comprehensive return net- tive fluids, the neutralization of airbags and seat furbished. This protects the environment, while work. In addition, materials used – such as plastics belt tensioners and all the way to the dismantling offering customers the cost-saving alternative of – are labeled and are thus easily recognizable. of components containing particularly hazardous exchanging a component for a recycled spare part. Audi Sustainability Report 2019 14 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

In the spotlight ny’s strategy. Sustainability has a lot to do with adaptability, but also with transparency. To do justice to transparency, the The “consistently Audi” strategy, which was presented in May all readers truly understand why these topics are being re- 2019 Sustainability Report reflects the carefully selected 2019, is changing many things. As a result, sustainability ported on. There are internal (e.g. strategies) and external reporting topics in its familiar basic structure, featuring the has moved to the core of our entrepreneurial action, thus (e.g. guidelines) reasons for this. chapters “Strategy,” “Operations and Integrity,” “Products altering the way Audi reports on its activities within the con- and Services,” “Value Creation and Production” as well as text of “consistently sustainable” – one of the strategy’s four To enhance understanding, the Sustainability Strategy de- “Employees and Society.” Maintaining the same structure subgoals. This is why the Sustainability Strategy department, partment has developed a thematic map that allows the enables an annual comparison and makes it easer to identify which is responsible for the direction and operationalization reader to see at a glance why topics were selected and under- progress. With this new approach, the Four Rings is demon- of the sustainability strategy and is tasked with preparing stand the underlying strategy. This also emphasizes the fact strating its adaptability and openness: It is important to Audi this report, decided to adopt a new approach to reporting. that topics reported on were not just arbitrarily chosen: They to relay clear messages and demonstrate credibility through The aim of the 2019 Sustainability Report is to ensure that are clearly linked to stakeholders’ demands and the compa- transparency.

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely Thanks to brand diferen- approach tiation, Audi intends to on the become number one for Operating without ethics customer experience. Then data highway Interactive: Click on and a sense of proportion the plan will succeed. Consistently sustainable Core areas does not work. An overview Data protection in harmony with of how compliance, integri- the law and legislation: Audi com- ty and culture provide guid- plies fully with applicable national part of the matrix ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. Important pillars of the cor- The outline of the Audi Sus- success. An overview of the various data pro- to access the story tection measures. porate strategy “consistently tainability Program combines utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi last detail Ho s d Better safe than sorry Audi” (see also page 15) strategic goals with concrete r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i s measures in an understand- parts of its value chain. An G o Accident Research Unit (AARU). A report. n Large scale: The h t overview of key improve- i o f w ments and initiatives. c t o n n e t t able manner. e n n o t c individual parts of w f o i t n h ESG criteria

o G s ) i x R

Long-term r customer e relationships I a d

p s n operations

i Data protection t Ethical the matrix can be m a and security n n o o Top topics from d C i Governance t a a the materiality r Chapter reference for the cap- z i d n analysis C s o o n b Consistency in r s Full of power found on pages a e c r Materiality analysis e v Operations E Vehicle safety a sustainability d n ital-market-relevant criteria When it comes to drive systems, v t , i a i o 2 r Audi is pursuing a holistic approach: s o n O a & n The interview Hildegard Wortmann, C ) m o ( e s from e-tron to the expansion of the c n e f Board Member for Sales and Market- e n 111-115. o Integrity n r charging infrastructure, from solu- t a i t t e a n ing, and Peter Kössler, Board Mem- a ( s of Environment, Social and What concerns stakeholders, r r e o tions for the last mile to refueling with m e e l ber for Production and Logistics, i v e u l p green electricity, from hybrids to hy- o Products c r C o c talk about how they are responsible g t e e r drogen cars. The most important key e i s l fi t Services for sustainability. Top topics from b Alternative a c parameters. a r a n drive technologies the materiality t Governance (ESG) what do they expect from o i & i p a o analysis r t n o s

c u o (

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e r e c o Strategy n n f

CONSISTENTLY s Audi? A selection of the most a

s i

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a e ) Integrated and v b SUSTAINABLE Transparency for o resources and G well thought out important results from the S life cycle assessment o

O c i Employees Thinking consistently from start n a l e ( to finish: The life cycle assess- f S SDG o o ment of a vehicle shows where its c c materiality analysis. u i a s environmental footprint arises. l i c Society& ) s s r t The most important facts about o it Circular economy n e n r a the complex analyses. t i l Equal opportunity, r a & p a / i b Sustainable Development Goals integration and n e n i c o n o Value Creation ti diversity g c Emissions and m u a e d n o energy management d a Production r d va p in the factory e lu al ve e tr (SDGs): Allocation of the 17 d lo ri eu pm ve ₂-n e r fo CO Viable nt r A t ( ) Audi embraces diversity .) udi en l . nm a nviro i E r value creation Sustainability Roadmap e Sustainability t The most varied career paths, standards in the supply chain a global goals for sustainable Not just a single closed circle, but nationalities and biographies: employees re- m y Occupational health r several along the entire automotive port on their work at Audi a and safety d – from a very personal perspective. n value chain: Experts at Audi analyze o c and identify the opportunities and e development Comparison with the s H f risks of a circular economy. e o a e l s th u ( (n y it m r o goals of the sustainability o Fair working condi- n g tions and modern o Less is e working forms c n e ox ar id ul more es irc , p /c ar es Audi carefully analyzes the program ti rc cu ou environmental aspects of its lat es e f r United for ma o worldwide manufacturing net- tte ion r, at work – with the vision of build- Topics n v your health ois ser e) Con ing its cars in carbon-neutral plants by 2025. The most im- C How Audi is minimizing work-relat- o portant key figures in 2019. m ed accidents and improving health p a resources for its workforce. ri Story that highlights s o n o f c Stronger together s o d n Flow of knowledge r GRI a te d n As a large industrial corporation, n Audi’s commitment – t ta w This is how employees of the Four Rings be- Audi is mindful of its responsibility s i I th come fit for the future of electric mobility – R G toward society and the environ- G R h I visiting training measures on site. ment – and uses its impact to meet it s w ta this responsibility along the entire t Comparison with the GRI n nd e a value chain. nt rd o s f c o on ris pa Standards of the Global m Co

Reporting Initiative (GRI) GRI 102-46, 102-47, 102-48, 102-49 Audi Sustainability Report 2019 15 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

“Consistently Audi”: The four mission fields of the new Sustainability – Audi strategy consistently customer: Audi wants to consistently practiced become the company with the most satisfied customers.

Sustainability has been a central corporate goal and an absolute neces- consistently electric: Audi is taking sity for ensuring future success for quite some time. For Audi, it means the lead in the transition to e-mobili- our future viability and it represents a fundamental basis for accep- ty. Electric mobility is the key to more tance and relevance – thanks to sustainable products from a sustain- sustainable mobility worldwide. able company. But how will Audi achieve this new edge? By having the consistently connected: Audi is creat- correct self-perception and applying the right strategy. ing an open, digital ecosystem.

consistently sustainable: Audi oper- ates responsibly, transparently and Mobility is one of society’s primary necessities. Whether with integrity. Audi acts in harmony in urban or rural settings, regional or international – peo- with ecology and the economy, with a ple are looking for adequate solutions to get from A to B. clear long-term perspective. Audi responds to this desire with its products. As part of the Volkswagen Group, the brand focuses on individual Further information on the Audi Strategy premium mobility. Audi is well aware that there are sizable is available at Audi.com questions to address in this context: Scarce resources, envi- ronmental damage, climate change and population growth – these are all challenges facing society, which looks to politics, science and industry for answers. How sustain- able can individual mobility be? Is electric mobility the only sensible approach to sustainable transportation? The signed by 196 contractual parties. Actively contributing to formation as we head into a new age of mobility and to automotive industry is experiencing radical upheaval. For the SDGs (Sustainable Development Goals, see page 17) is be a pioneer of carbon-neutral mobility in the premium Audi, this means working steadily on developing solutions also part of the rigorous focus of the Volkswagen Group. segment. to the questions raised above. Thus, as part of the Volk- swagen Group, Audi is committed to the two-degree goal To highlight our determination with respect to this focus, Doing things right and is contributing to its realization. The two-degree goal Audi developed a new vision in the year under review: “Un- This new strategy makes it clear that sustainability is describes the objective of international climate policy to leash the beauty of sustainable mobility.” To make sure that no longer just something that is nice to have; instead, it limit the global temperature rise by 2100 to less than two this vision can be transformed into reality, the company set serves as a prerequisite for Audi’s actions. “consistently degrees Celsius above pre-industrial levels. This goal, which out a new mission for itself, which was then presented in Audi” is driving the transformation from a car manufac- has been discussed for more than 30 years, eventually be- the form of a new corporate strategy: “consistently Audi”. turer to a mobility service provider; the company acts came legally binding for first time as the Paris Agreement, The goal of the strategy is to position the company for the purposefully and with all its power – in other words,

which has been in force since November 2016 and was future, to play an instrumental role in shaping the trans- consistently. GRI 102-44 Audi Sustainability Report 2019 16 Progress you can feel

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Particulate matter, CO2 Innovative concepts noise, nitrogen oxides BEV/FCEV BEV/FCEV Efficient use of materials across the value chain Viable combustion engines Viable combustion engines Circular economy

Responsibility across the value chain Reduction of CO2 across the value chain Use of alternative materials

2035 2035 2035

In the future, the company’s approach will be to When it comes to health, the brand is focusing Complex value chains focus – and then implement consistently. At the on reducing emissions such as nitrogen oxides When it comes to sustainability in the automo- core are four action areas: consistently customer, (NOx), particulate matter and the topic of tive industry as a manufacturing business, one consistently electric, consistently connected and noise. special feature is the complexity of the value consistently sustainable. chain. The product is not the only thing that In terms of climate, Audi combines all activi- must demonstrate sustainability – production Audi developed the action areas for “consistently ties in the Sustainability Roadmap that are in- is affected as well. This goes hand in hand

sustainable” with the help of its Sustainability tended to reduce the CO2 emissions of vehicles with Audi’s commitment to implement sus-

Roadmap. This is a way for the company to make a and CO2 volumes generated during production. tainability equally in all divisions. For an over- targeted contribution to solving global challenges. view, see pages 10-13. Precise details can be The roadmap’s content has three focal points: Resource conservation includes activities found in the individual articles, which address related to the circular economy to change re- most parts of the value chain at Audi through source consumption in the vehicles themselves the examples described there. At the end of Health and during manufacturing sustainably. each chapter, the Audi Sustainability Program Climate shows the connection between the strategic Resources These focal points give rise to specific action goals and concrete measures for these areas. areas, focal points for development, measures and key figures, which constitute the core of That is how we guarantee that Audi is keeping Audi’s sustainability activities and are present- its promise to “unleash the beauty of sustain-

ed in a selection in this report. able mobility” on several levels: GRI 102-44 Audi Sustainability Report 2019 17 Progress you can feel

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Sustainable mobility means: Audi will offer carbon-neutral premium mobility in the long term. In the medium term, Audi will deliver the ­strongest lineup of electric models among ­premium competitors. The goal is to offer 30 electrified vehicles by 2025, of which 20 will be

fully electric cars, which emit no CO2 emissions when operated locally in electric mode. By the middle of the coming decade, electrified vehicles will account for 40 percent of Audi’s global annual sales. Electric mobility is the key ­element of a sustainable and more ­climate-friendly traffic system. By 2025, Audi will reduce the carbon footprint of the Audi fleet by around 30 percent across the ­entire life cycle. Agenda 2030: 17 goals for sustainable development Audi wants to achieve net zero CO₂ emissions across the entire company by no later than 2050. At the 2015 United Nations The Agenda 2030 stands Audi recognizes and ob- (UN) General Assembly, for a global understand- serves the Sustainable Beauty means: 193 states adopted the ing of prosperity that Development Goals. Audi wants to be the most progressive premium Agenda 2030, which lays extends beyond the con- Internal workshops were brand with the best customer experience. out 17 goals – the “Sus- stricting concept of per conducted to identify Audi wants to be the brand with the greatest ap- tainable Development capita income. the SDGs to which Audi peal, fascinating customer-relevant innovations Goals” (SDGs). SDGs At issue is reshaping can make the greatest and breathtaking design. combine the social, envi- economies toward more contribution with its core ronmental and economic sustainable development, business. Only the consistent implementation of the strategy dimensions of sustainable for example through re- The two main stories in and realization of the vision will ensure that the development and thus link sponsible consumption and each chapter demonstrate brand with the Four Rings is an attractive employer the battle against poverty production patterns and the activities at Audi that in the long term, remains competitive, inspires its with the protection of nat- clean as well as affordable are aimed at fulfilling the customers and provides future generations with a ural resources. After all, so- energy. It is becoming clear responsibility laid out in livable future. cial progress is not possible that climate policy, sus- the prioritized SDGs. These in the long run if the limits tainable development and passages also provide a For detailed information on the corporate goals, of the planet are not the eradication of poverty reference to the corre-

please refer to the Audi 1019 Financial Report respected. are inseparably connected. sponding SDGs. GRI 102-44 Audi Sustainability Report 2019 18 Progress you can feel

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Firmly anchored responsibility

What structures are required for value-oriented, sustainable management? How can impending conflicts be recognized The Board of Management early on to ensure a prompt response and to secure future of AUDI AG constitutes viability? Sustainability management that is firmly anchored the Sustainability Board at the level of the Supervisory Board and Board of Management, along with compliance and integrity, help Audi systematically implement its “consistently sustainable” strategy. Human Finance, Chairman Technical Marketing Procurement Production Resources and China and Legal of the Board of Development and Sales and IT and Logistics Organization Affairs Management

Corporate Strategy

Audi is part of society and as such, assumes responsibility Strategy Digitalization Sustainability Urbanization for the environment, its own employees and for people Development Strategy Strategy Strategy outside its factory perimeters. Sustainability is important for Audi and is firmly integrated within the company. The Sustainability Strategy department consolidates measures Sustainability across the divisions and is responsible for the direction of Steering the sustainability strategy. It reports to the Sustainability Committee Board – the full Board of Management of AUDI AG – at least twice a year. At the meetings of the Sustainability Board, the Sustainability Strategy department reports on current measures and potential target conflicts with regard to the Board of Management, where they are then discussed. The economy, ecology and society. department is also in charge of the Sustainability Steering Committee, which is composed of representatives of all di- Anchoring sustainability in the company visions plus one representative from the Works Council. The For Audi, there is a direct correlation between economic Sustainability Steering Committee aims to ensure cross-di- success and entrepreneurial responsibility. As part of the visional management of the sustainability strategic field of risk management process, the Sustainability Strategy de- action. The resolutions adopted by the Sustainability Steer- partment presents material risks on a quarterly basis to the ing Committee form the basis for decision proposals for Audi Sustainability Report 2019 19 Progress you can feel

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the Audi Board of Management as well as for product-re- has signed the Universal Declaration of Human Rights, the lated decision-making committees containing members of principles of the International Labour Organization and Handling of the diesel crisis the Board of Management. of the OECD, the principles of the Rio Declaration on Envi- ronment and Development and the UN Convention against One thing is clear to the Executive bodies of AUDI AG Corruption. The company, as a subsidiary of Volkswagen Supervisory Board: Some- The Annual General Meeting, the Supervisory Board and AG, suspended its membership in the UN Global Compact thing like the diesel crisis the Board of Management make up the executive bodies effective November 12, 2015, in light of the diesel crisis. must never happen again at of AUDI AG. The Annual General Meeting of a stock corpo- Irrespective of the suspension of its membership, Audi AG Audi. Thus, Audi continues ration is the meeting of the corporation’s shareholders or emphasizes its commitment to the principles of the UN to gather information about owners at which they exercise their rights with regard to Global Compact. initiatives pertaining to the stock corporation’s affairs. The Board of Management compliance, integrity, risk manages the business of AUDI AG and of the Audi Group At Audi, the Volkswagen Group Essentials, the Audi lead- management and corporate in accordance with the law, the Articles of Incorporation ership principles and the Audi corporate values of appreci- culture. and Bylaws of AUDI AG and the rules of procedure issued ation, openness, responsibility and integrity all constitute by the Supervisory Board. Corporate governance also gives the fundamental values and foundation of our corporate Moreover, the Supervisory due consideration to the corporate goals and to shared culture. The guiding behavioral principles for the Audi Board actively calls upon all interests within the Volkswagen Group. At the time the Group’s employees are described in the Code of Conduct. In members of the Board of report was completed, the AUDI AG Board of Management 2019, the Code of Conduct was fully revised and supports Management to remain per- consisted of seven members. The Supervisory Board over- employees in their daily duties in the company. It provides sonally committed to these sees and advises the Board of Management’s running of the guidance, advice and support on correct behavior at the topics and places adhering business. The Supervisory Board of AUDI AG comprises ten workplace, as a business partner and as a member of the to these ethical standards shareholder representatives and ten employee representa- company. The Code of Conduct is binding for every employ- on par with economic goals tives as provided for by law. The composition of the Super- ee, regardless of his or her position in the hierarchy. when it comes to making visory Board and Board of Management of AUDI AG as well fundamental economic as the dates on which members took up office ear provided The Code of Conduct provides clear rules on correct conduct decisions. on the website of AUDI AG. in a transparent and easily understood form and is con- stantly made accessible to all employees. The emphasis is For further information on the Guiding principles of action on dialogue and exchange. Practical examples illustrate the tasks and issues addressed by the Supervisory Board, please refer In February 2012, AUDI AG joined the United Nations individual subject areas and help employees apply the rules to the Audi 2019 Financial Report Global Compact as an independent company. The company (page 25) . on pages 104f. Audi Sustainability Report 2019 20 Progress you can feel

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There from the start

Audi actively involves its stakeholders [4] in core issues and wants to know Communication measures with stakeholders their interests and needs so that it can consider their expectations in its business decisions. An honest assessment and an external perspective are Stakeholder questionnaires Stakeholder dialogue essential for the continuous development of Audi’s sustainability strategy.

Internal committees and Series of talks and discussions working groups

Audi uses different dialogue formats and one-to-one discus- sions to find out what motivates stakeholders. The company Responsibility forum and tries to find the right format for stakeholders depending on Sustainability academy sustainability mailbox the topics addressed.

Targeted dialogue Initiatives and Material stakeholders are all internal and external groups Podium discussions memberships of individuals that are affected directly or indirectly by the company’s business activities. The relevant stakeholders are identified based on their expectations, expertise, integrity, and their ability to influence Audi.

Multi-stakeholder events, such as the Audi Dialog, or in- volvement in initiatives (see page 21) allow the company to engage directly with its stakeholders on core issues as well. In addition, a subject portal on the Audi intranet offers em- logue formats? What will help move the company forward? Other approaches include dialogue as part of its activities in ployees up-to-date information on relevant, strategic topics What is the “outside-in perspective” on issues? What sug- associations as well as memberships in committees. and innovations, as well as training options offered by the gestions do the experts have? Audi wants to learn, examine Sustainability Academy. The findings of stakeholder ques- perspectives, gather suggestions, and build trust. Communication on sustainability topics tionnaires conducted on a regular basis are fed into Audi’s Talks with individual interest groups are also an effective in- materiality matrix (see from page 22). Audi’s online presence Of the many different events, Audi Dialog 2020[5] warrants strument for Audi in acting on stakeholder input. Stakehold- on the topic of sustainability provides comprehensive infor- a special mention. Focusing on the “consistently Audi” ers can also contact the “Sustainability Strategy” department mation, while the Sustainability Report presents Audi’s sus- strategy that was newly adopted in 2019, an intensive ex- directly at the email address [email protected]. In the tainability performance transparently and comprehensively. change took place with more than 50 stakeholders over two internal community “Forum Responsibility,” employees can days in the Audi Conference Center at Munich Airport. The goal contribute their own suggestions on the topics of responsi- Listening and learning: Audi in dialogue of the event was to get honest assessments from representa-

bility and sustainability at Audi. What type of feedback does Audi hope to get from the dia- tives from politics, industry, science, and civil society GRI 102-40, 102-42, 102-43 Audi Sustainability Report 2019 21 Progress you can feel

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on Audi’s process of transformation toward a sustainable These events included expert discussions, plant visits, Impetus for open discussions mobility provider. These assessments also contribute to the participation in public podium discussions, or political dis- The “Responsibility Perspective” lecture series gives Audi continuous development of the sustainability strategy. In small cussion formats such as the Zukunftsforum Automobil Bay- employees and managers an opportunity for discussion and groups of 20 to 25 people, Audi experts discussed four topic ern, the Strategiedialog Automobilwirtschaft Baden-Würt- networking with experts from science and industry. Sustain- areas with relevant stakeholders: the charging infrastructure, temberg (SDA BW), and the “Future of mobility” national ability-related issues that are relevant to Audi’s future via- human rights – complaints mechanisms, digital responsibility, platform. bility are discussed at the event. Papers by outside speakers and the circular economy. This focused dialogue delivered a and commentaries by Audi experts provide starting points clear picture of expectations at the topic level and strength- Ramping up electric mobility for open discussions between all participants. A total of just ened mutual trust. Participants experienced Audi as an open A further high point was the parliamentary breakfast hosted under 3,000 employees have taken part in more than 25 lec- company that understands and implements sustainability as a as part of the 69th Berlin International Film Festival on the tures since 2013. The topics of compliance and sustainability core element of its strategic focus. At more than 100 events in topic of the Audi electric mobility strategy. Discussions with in the working world were addressed in 2019. 2019, Audi also engaged with political stakeholders from par- some 70 participants, including members of the German liamentary authorities, ministries of ­Germany's Federal Gov- Bundestag, focused critically on topics such as how socially ernment and Federal States, associations, non-governmental compatible electric mobility can be and what is needed for organizations (NGOs), and think tanks. the imminent ramping up of electric mobility.

Participation in external Here is a selection from our numerous involvements that also reflect the interests of the company’s stakeholders. initiatives and federations This image was created using the five chapters of this report to illustrate the connections to the topics reported here.

Audi works in a variety of initiatives, associa- Strategy Products & Services Value Creation & Production tions, and work groups VDA Verband der Automobilindustrie Aluminium Stewardship Initiative Biodiversity in Good Company Initiative e. V., Berlin to discuss ecological, e. V., Berlin (ASI), Australia economic, and social is- co₂ncept plus – Verband der Wirtschaft für eNOVA Strategiekreis Elektromobilität, Global Battery Alliance (World Emissionshandel und Klimaschutz e. V., Munich sues in partnership with Berlin Economic Forum), Switzerland stakeholders. The list Gemeinschaftseinrichtung zur Altlastensanierung Deutsches Verkehrsforum e. V., Berlin (right) of memberships Responsible Minerals Initiative in Bayern e.V. (GAB), Munich and activities exem- plifies the company’s Operations & Integrity Employees & Society dialogue with industry, Deutsches Institut für Compliance (DICO), Berlin Deutsche Gesellschaft für Arbeitsmedizin politics, science, and und Umweltmedizin e. V. (DGAUM), Lübeck society. Gesellschaft für Datenschutz und Datensicherung e.V. (GDD), Bonn Stiftung “Jugend forscht” e.V., Hamburg ZfW-Zentrum für Wirtschaftsethik Verein zur Förd. kult. Belange in der Region gGmbH, Berlin IN, Ingolstadt Audi Sustainability Report 2019 22 Progress you can feel

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What matters to you?

In the 2019 year under review, Audi asked internal and ipants were asked to rate the importance of the topics on a 2019 materiality matrix presents “relevance for external external stakeholders for their assessment of relevant ac- scale of 1 (“very low”) to 6 (“very high”). 3,206 opinions from stakeholders” and “relevance for internal stakeholders” (Audi tion areas in relation to sustainability issues (stakeholder respondents from Germany (71 percent), Europe (6 percent, employees) as one dimension, with both evaluated equally. relevance). Through this approach, the company identifies without Germany), North America (13 percent), South Amer- As a result, the matrix is presented for the first time as a bar those topics that are particularly important – and that have ica (3 percent), Asia (3 percent), Africa (1 percent), Australia chart, which shows the findings clearly at a glance. a major impact. and “place of origin not specified” were assessed for the 2019 materiality matrix. This was the first time we succeed- These findings provide a structure for this report. The two ed in reaching such an international audience. main articles in each chapter are devoted to the two topics of The materiality analysis is a strategic instrument that Audi the highest relevance for stakeholders. uses to establish the relevance of certain sustainability topics Audi differentiates the stakeholders according to different for the Audi Group from the perspective of different stake- groups: employees, analysts and investors, neighbors and holders. This analysis thus makes a contribution to regular local residents, customers, politics and associations and reviews and the further development of the sustainability employees' organizations, press and media, science and sus- strategy. Audi has been conducting the materiality analysis tainability experts, non-governmental organizations (NGO), routinely since 2012 and presents the results in a materiality business partners of Audi AG, and others. matrix (see next page). Stakeholder relevance: Assessment of impact Bar height Identification of material topics In addition to the relevance of the sustainability topics, in a 5.0 Audi again enhanced and updated the materiality analysis in further step the members of the Sustainability Steering Com- Impact: 2019 using a multi-stage process. Drawing on internal and mittee evaluated the direct social, economic, and ecological Color of top of bar external sources, the company first identified 25 relevant impact Audi has in the chosen subject areas, and classified sustainability topics within the four action areas “Operations this impact (low, medium, high) on this basis. The findings of & Integrity,” “Products & Services,” “Employees & Society,” the survey and qualitative impact assessment were then con- Low 4.0 and “Value Creation & Production.” solidated, summarized, and approved by the Sustainability Steering Committee. Medium These 25 sustainability topics were then prioritized based on an online questionnaire. The number and internationality of Focus on sustainability strategy High the participants was increased in comparison with the last Audi has taken a definite step forward especially in terms of 3.0 survey through reinforced communication measures. Partic- how the findings are shown in the materiality matrix: The GRI 102-40 102-42, 102-43, 102-44, 102-47 Audi Sustainability Report 2019 23 Progress you can feel

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Materiality matrix Stakeholder relevance: Bar height Impact: High Medium Low

PRODUCTS & SERVICES VALUE CREATION & PRODUCTION

Vehicle safety Circular economy

Alternative drive technologies EMPLOYEES & SOCIETY Emissions and energy Transparency of resource management at the plant Fair working conditions and conservation and life cycle OPERATIONS modern working forms & INTEGRITY 5.0 assessment of various types of drive systems Sustainability standards in the Occupational health supply chain and safety Future-proof combustion engines 5.0 Equal opportunities, 5.0 integration and diversity Sustainable system offer Training and development of employees Ethical operations Digital Promotion of education networking and science and services Long-term customer Corporate citizenship 4.0 relationships at Audi locations

Data protection 4.0 and data security Nature conservation Economic and biodiversity stability

Innovative capacity and Corporate management governance and Autonomous compliance driving 3.0 4.0 4.0 4.0 4.0 Corporate New culture and mobility participation concepts

2.0 3.0 3.0 3.0 3.0 Audi Sustainability Report 2019 24 Progress you can feel

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Can sustainability also be profitable? Audi Sustainability Report 2019 25 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY Three-pillar approach Sales or the environment? Market or morality? Profit maximization or ethics? Wait! Audi says “and” not “or.” The past has shown that operating without ethics and a sense of proportion does not work. But what does ethical operation mean for Audi?

Nexus between compliance, integrity & culture At Audi, ethical opera- holistic view of sustainability – in tions mean that the com- its business decisions, the compa- Compliance Integrity pany has a responsibility ny always takes account of ecolog- at Audi means acting in at Audi means respon- to society. What follows ical and social aspects to ensure B harmony with laws and sible business activity is value-oriented action geared to its long-term competitiveness and internal rules as well as based on society’s sustainability, focusing on human- therefore uphold its responsibility protecting the company accepted values and kind, society and the environment. as a reliable employer. Economic from harmful activities. In principles, which The aim is a win-win situation for efficiency and job protection are everyday work, the Code of the company has all participants. And the founda- equal-ranking goals in this regard. Conduct provides guidance. embraced. Integrity tion for this is to acknowledge that Achieving these objectives calls It defines the fundamental sharpens the aware- running a business is a meaningful for a balance between compliance, principles that govern our ness of employees to day-to-day work. These critical situations. activity in the interests of human integrity and an open corporate apply Group-wide and are solidarity, social development and culture. binding on everyone, re- quality of life. Business and ethics gardless of hierarchal level. are not insurmountable contradic- Opportunities and risks tions in terms – instead, they are For Audi, integrity and compliance two sides of the same coin. are the basis of all our actions and In the long run, Audi will only be take top priority both within the successful – and successful means company and across the entire profitable and oriented toward the Volkswagen Group. They form the Corporate culture common good – if the company basis for a good reputation, for the expresses how people at Audi work succeeds in bringing ethics and trust of customers and business together and what values are decisive results, conscience and profit, the partners, for the well-being of its in this respect. Corporate culture also environment and sales into con- employees and for sustainable eco- provides for uncertainties to be freely structive alignment. Audi takes a nomic success. voiced by each individual. Audi Sustainability Report 2019 26 Progress you can feel

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Thematic goals of Effective anti-corruption Together4Integrity the mission field “consistently Agenda 2030 as a compass sustainable,” underscoring their The Audi Group places a high priority “Together4Integrity” (T4I) had its importance and absolute priority on combating corruption. Within our origins in a requirement imposed in all divisions and business company, the Audi Compliance & In- by the Monitor in 2018. It is a ho- processes. tegrity department helps to tackle cor- listic Volkswagen Group program ruption. In the year under review, this that consolidates all measures, Basis: compliance and integrity Group function supported 34 national projects and initiatives relating to It is vitally important for corpo- and international participations in the ethics, integrity and compliance rate governance to ensure that all compliance focal area of anti-corrup- under a common umbrella, thus decisions are in harmony with ap- tion in the course of consultancy inqui- making a major contribution to plicable law as well as with inter- The focus is on ries, the implementation of guidelines long-term and sus- cultural change. By 2025, T4I will nal rules and values. Audi’s Code tainable economic and the execution of training pro- be rolled out across all brands and of Conduct serves as the basis in growth. grams. Fundamentally all those enti- participations of the Volkswagen this respect. It defines the essen- ties where AUDI AG holds a majority Group, and will give its workforce tial principles that apply to daily interest or management responsibility of some 670,000 employees work routines in the company. The or that are of particular importance are worldwide concrete guidance and Code of Conduct applies Group- included in this process. recommended actions for ethical wide and is binding on everyone, To ensure sustainable prevention and compliant behavior in their regardless of hierarchal level. All of corruption, the process of dealing everyday work. employees are required to behave with grants and avoidance of con- Currently, more than 100 mea- in accordance with these guide- flicts of interest and corruption were sures are being implemented lines. Audi has also committed it- lation with regard to corruption for uniformly enshrined in a Volkswagen The focus is on at the German sites of AUDI AG self to the UN Convention against which further investigative steps the sustainable Group Policy for the first time. AUDI and a large number of them Corruption and largely meets the were initiated. use of all natural AG incorporated this into a new cor- have already been completed. requirements of the German Cor- In two cases, the suspicion was resources. porate policy, which replaced the pre- At the same time, AUDI AG is porate Governance Code. confirmed in the course of the vious guideline. responsible for rolling out the Yet not only is compliance with investigation and appropriate To give Audi employees training on T4I program at its subsidiaries applicable legislation, conven- personnel measures were taken. relevant corruption topics, interactive and participations. T4I has al- tions and company regulations In one case, the suspicion was not web-based training was introduced ready been implemented at over essential; so is integrity – namely, confirmed, and in another it was to all divisions in 2016. Practical sit- half of these entities, meaning responsible entrepreneurial action not possible to conclude the in- uations that reflect everyday working that it has already reached some geared to the values and princi- vestigation fully during the period life are used to sensitize employees 85,000 of around 90,000 ples acknowledged by society and under review. to corruption-related situations. employees in total. agreed at Audi. Training is mandatory for all non- The topics of compliance and Within the scope of the whis- Compliance organization The aim is to pro- production employees and managers integrity, along with the “Togeth- tleblower system, in 2019 the The “Integrity, Compliance, Risk mote peaceful and of AUDI AG. This training was updat- er4Integrity” program, are firmly Audi Investigation Officeeceived r Management” organizational unit inclusive companies ed at the end of 2019 and extended in the interest of entrenched in Audi’s corporate four centrally filed notices of pos- reinforces general awareness of sustainable devel- to include additional topics such as strategy “consistently Audi” in sible suspicion of a regulatory vio- the need for compliant and opment. donations and sponsoring.

Continued on page 28 Audi Sustainability Report 2019 27 Progress you can feel

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Whistleblower system for regulatory violations: the Audi whistleblower and ombudsman systems

Whistleblower system External reporting channel Internal reporting channel The Ombudsman System of the Volkswagen Group Establishing an integrity-based corporate culture also calls for vigi- serves as an external input channel. As part of this lance on the part of all employees, along with their readiness to re- system, two experienced external attorneys-at-law Forwarding of port possible regulatory violations where they have substantiated are designated as neutral ombudsmen. Any em- hints checked suspicions. A central component is the Audi whistleblower system. ployee, business partner or external third party can and released by It helps identify and put a stop to erroneous behavior – and in contact them if they discover evidence of regulatory whistleblowers particular serious regulatory violations – at an early stage. In- violations. All reports are treated in confidence and ternal and external points of contact are provided for reporting forwarded to the Audi whistleblower system. The breaches of the law and of internal regulations by employees in whistleblower may choose to remain anonymous. respect of Audi. The main point of contact within the company is The ombudsmen are subject to the attorney’s duty the Audi Investigation Office. In 2019, 694 reports of possible of confidentiality. The following procedural princi- regulatory violations were received. The number was consider- ples, among others, apply here: ably lower in the previous year with 215 reports.

Whistleblowers are protect- Such persons are always pre- ments are duly taken into ed and their statements are sumed to be innocent until account. How to contact the whistleblower system: treated confidentially. Their the opposite is proven. In Personally Postal address identity is not published if so addition, they have the right If, in the course of the in- The Audi Investigation Office AUDI AG desired and legally possible. to be heard and to represen- vestigation, no regulatory I/GC-C5 Whistleblower system They should feel fairly treat- tation and to be advised and violation can be identified, AUDI AG 85045 Ingolstadt ed. Any instances of discrim- supported during an inves- then the Investigation Of- 85045 Ingolstadt ination, intimidation or hos- tigation by a member of the fice will support the person email tilities toward whistleblowers employees’ representative concerned in informing his [email protected] will not be tolerated. body responsible. In this or her employment environ- context, the right of AUDI AG ment. The primary objective Whistleblowers who expe- to define the time schedule is to protect the reputation rience discrimination on for the investigation remains of the employee. Reports Hints can also be submitted anonymously. In the process, the identity of the whistleblower is account of their report can unaffected. of regulatory violations not revealed to Audi. The following channels are available for submission of anonymous hints: contact the Audi Investiga- are checked for plausibility tion Office, which will take up The costs of legal representa- by the Audi Investigation Online reporting channel the case, evaluate it in accor- tion are borne on principle by Office, categorized, and in www.bkms-system.com/audi dance with the whistleblower the person concerned. Within the event of initial grounds the scope of the investiga- for suspicion, assigned to a process and clarify it. The 24/7 hotline of the Volkswagen Ombudspersons (external lawyers) tion, the persons concerned suitable investigating body Group’s whistleblower system: Persons concerned, in con- are given the opportunity to in the Company or outside it +800 444 46300 (free of charge) http://www.ombudsleute-der-volkswagen-ag.de trast, must be protected present a statement on the to resolve and conclude the +49 5361 946300 (subject to charges, from unlawful accusations. allegations made. The state- matter. internationally accessible) http://www.ombudsmen-of-volkswagen.com Audi Sustainability Report 2019 28 Progress you can feel

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Training to reinforce compliance and integrity ­honest behavior at AUDI AG and to the long-term safeguarding of is monitored by the Supervisory its subsidiaries. value-oriented behavior within the Board’s Audit Committee. The range of training avail- than tripled the number of The compliance functions ensure company. able has more than doubled participants who attended that systematic misconduct is The Compliance Organization Diesel issue marks watershed in the past two years from 11 compliance training sessions prevented and company-related uses the CMS implemented at Audi Resolving the diesel crisis again measures in 2017 to 27 mea- compared to 2017. criminal acts and loss of reputa- to steer all compliance measures accounted for a significant portion sures at the end of 2019. Group-wide training stan- tion are avoided. They reinforce and processes to ensure adherence of the Supervisory Board’s work Particular emphasis in dards are observed in devel- compliant behavior by the Board to compliance requirements within in 2019. Accordingly, the Super- 2019 was placed on compre- oping Group-wide training hensive mandatory training measures. In addition, the of Management, managers and the company. visory Board dealt in detail with for the Board of Manage- Compliance/Integrity depart- employees and fulfill a preventive Within the Audi Group, we have this topic, for which it was kept ment and all employees of ment introduced a concept and independent advisory function defined compliance focal areas informed continually by the Board AUDI AG on the subject of development process for in this regard. Key topics include which need to be observed in order of Management, both in writing the Audi Code of Conduct as quality assurance to further anti-corruption, money laundering to protect our brands. These are and orally, over the last fiscal year. well as the international roll- standardize new training prevention and human rights. permanently tracked and imple- For further information on the out of the measure to Audi measures. Furthermore, To raise the level of awareness mented through the annually up- tasks and issues addressed by the subsidiaries. a risk-based training and among managers and employ- dated compliance program. Supervisory Board, please refer to Moreover, additional train- communication concept was ing obligations were imposed implemented that provides ees for compliance topics and, in A Group-wide compliance risk pages 104ff. of the Audi Financial (e.g. prevention of money for the introduction of man- particular, for the Audi Code of analysis was carried out in the year Report 2019. laundering and the financ- datory training to identify Conduct, the whistleblower sys- under review to systematically The diesel issue marks a water- ing of terrorism). This more high-risk groups. tem (page 27) and anti-corruption identify risks. Standard compliance shed at Audi. At the same time, it (page 26), communication and measures were developed and is triggering a transformation that training measures were developed rolled out to reduce potential risks; will make the company stronger Excerpt of measures implemented in 2018/2019: in 2019 in line with a risk-based moreover, this analysis is repeated and more viable in the future. This Face-to-face training Web-based training (WBT) approach and were carried out and on a regular basis. Audi’s partici- transformation goes way beyond documented accordingly pation is supported in an advisory compliance by placing the spot- Anti-corruption for the Audi Code of Conduct Board of Management and (this page). capacity within the scope of a light on integrity, responsibility Prevention of top management coaching model. and added value for society. For money laundering Programs and processes The effectiveness of the Com- instance, in light of the diesel Audi Code of Conduct and the financing of The Compliance Management Sys- pliance Management System is crisis AUDI AG, as a subsidiary for the Board of Manage- terrorism ment tem established at Audi affirms the regularly reviewed and refined if of Volkswagen AG, temporarily Integrity, culture & principles, measures, processes and necessary. The aim is to achieve suspended its membership in the Whistleblower system compliance structures at the company to as- continuous improvement in all UN Global Compact effective No- for key contact points Outsourcing sure lasting compliance with laws elements of the CMS. In pursuit vember 12, 2015. Irrespective of Fraud and internal regulations through of this, the appropriateness and the temporary suspension of its Fraud corporate bodies, employees and effectiveness of the individual membership, the company is com- Compliance awareness third parties acting on behalf of compliance measures are sys- mitted to the principles of the UN Interaction with public of- the company. An integral element tematically evaluated. The same Global Compact. ficials of CMS is Integrity Management, applies to the effectiveness of the On its way out of the diesel Workshop offerings on which contributes in particular Risk Management System, which issue, Audi is also receiving integrity Audi Sustainability Report 2019 29 Progress you can feel

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support from Larry D. Thomp- organization-wide network of in- Key focal areas Business and human rights son, the monitor appointed by tegrity ambassadors. As the inter- the U.S. Department of Justice. face with Integrity Management, Thompson and his team examine the ambassadors help commu- and evaluate compliance with nicate moral behavior to specific Freedom of association and Diversity, protection of vulnerable, collective bargaining particularly indigenous groups the conditions of the settlement target groups in their divisions agreements reached with the U.S. and serve as a divisional point of Department of Justice at the start contact for employees on integrity of 2017. In addition, he recom- questions. In 2019, over 50 am- mends new measures to reinforce bassadors in Ingolstadt and Neck- compliance and control systems arsulm were selected and suitably No discrimination, and verifies their implementation. empowered for their tasks. No particularly in the Certification by the monitor is a The aim is not only to provide forced labor workplace

s T precondition of the settlement ar- employees with information, but t o h le rangements with the U.S. Depart- also to qualify them in line with the g r i a r n ment of Justice. topics at hand: This is why AUDI AG e c e Human e Something like the diesel issue increasingly relied on training ses- y o rights

l

must never happen again at Audi. sions in the year under review. p

compliance Tolerance toward

m For this reason, the entire Board of No E different opinions Management personally pledges Increased focus: human rights child labor and respectful ex- to continue our efforts of recent It is important to Audi to identify pression of them years with regard to ethics and and mitigate possible risks of vio- ty compliance once the monitorship lations of human rights in its busi- Safe has come to an end. The members ness processes at an early stage. of the Board of Management re- In doing so, it relies for guidance port to the Supervisory Board on on international parameters and progress. standards to which the company Good commits itself. This applies both to working Ensure the conditions safety of people Sensitizing employees processes within the company and Motivation and activation of Audi’s to collaboration with our business workforce are of particular impor- partners and suppliers – i.e. at var- tance to ensuring corporate culture ious levels of the value chain and No involvement in any Key focal areas at based on integrity. Integrity man- the supply chain. unlawful activities Group level agement ensures high visibility of Relevant international standards this topic by means of continual for the subject area of “business communication in employee media and human rights” include, in as well as dialogue events. particular, the United Nations’ The base and core of sustainability management Moreover, in the year under re- Universal Declaration of Human at Audi are voluntary commitments and principles. view the company established an Rights, which is codified in the Detailed documents are available here. Audi Sustainability Report 2019 30 Progress you can feel

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International Covenant on Civil in the Code of Conduct for business a corresponding statement on the business partners apply the same and Political Rights and in the In- partners. Moreover, Audi has a gen- corporate website on measures ad- standard of integrity in business ternational Covenant on Economic, eral agreement in place regarding opted in the field of human rights. practices that applies to the Volk- Social and Cultural Rights. Further- respect for and compliance with In Germany, Audi supports the fed- swagen and Audi Group. For this more, the Core Labor Standards human rights. eral government’s National Action reason, Audi carries out integrity of the International Labor Organi- In recent years, a trend toward Plan (NAP) “Business and Human checks of business partners and zation (ILO), the Core Labor Stan- regulating business and human Rights,” for instance by working suppliers known as Business Part- dards of the International Labor rights in national laws has been with other stakeholders (civil soci- ner Due Diligence (BPDD). These Organization (ILO) and the OECD emerging in leading economies. ety, companies, associations, etc.) checks are part of a risk-based, Guidelines for Multinational Enter- As a global business, Audi also in the automotive sector’s industry transparent and proper documen- prises are relevant in this regard. observes national requirements dialogue to find solutions. tation process. The Group uses a The basis for cooperative work re- that put international standards Together with the Volkswagen special BPDD tool for risk-based business partner does not meet lations characterized by social har- in concrete form. One example of Group, Audi is working on integrat- checks on whether existing and our compliance requirements, mony includes, for instance, Volk- national reporting obligations is ing this subject into its existing potential new direct business part- risk-mitigating measures are tak- swagen Group agreements made the UK Modern Slavery Act 2015: Compliance Management System ners act with integrity and comply en. In specific cases, these may with the Group European Works Audi meets its transparency obli- in a structured fashion. The Group- with all relevant laws, rules and also lead to the termination of a Council and Global Group Works gations every year and publishes wide work group has defined key regulations in their business. If a business relationship. Council (Social Charter). They offer points in the sense of the UN guid- In addition, there was a revision employees certainty as regards ing principles known as “Salient of the Code of Conduct for Busi- their employee and human rights. Business & Human Rights Issues” ness Partners, in which the Com- In essence, this includes their right (page 29) in the field of business pliance, Procurement and Sales to freedom of association, their and human rights. divisions together draw up funda- right to collective negotiations and mental expectations of the busi- equal pay, and the banning of dis- Strict compliance requirements ness conduct and ethical behavior crimination relating to employment The Audi Group works with a large of their business partners for the and profession. The company’s val- number of partners in the course first time, e.g., on the topics of ues are also entrenched in the Code of its business operations. The human rights or the prevention of of Conduct for all its employees and company wants to ensure that its corruption. Audi Sustainability Report 2019 31 Progress you can feel

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Traveling safely on the data highway

Audi owners expect digitally networked vehicles Thematic goals of and services. In the process, customers rely on their Agenda 2030 personal data being secure at all times – whether inside the vehicle, in the cloud or on Audi servers.

basis for generating this genuine the vehicle. This makes it clear that added value is the ability to know huge volumes of data are gathered the user, his or her needs and influ- and processed in real time. The ge- ential marginal factors as well as neric term for this is digitalization. Digitalization offers immense op- is the personal intelligent assis- possible. Audi therefore regards conscien- The goal is to es- tablish a resilient portunities. Not only does it enable tant – better known as “PIA.” Using tious use of data as an integral part infrastructure, to new services and useful functions; artificial intelligence methods, High data protection standards of its corporate responsibility and promote inclusive it also makes mobility smarter and “PIA” connects all kinds of data – The Audi Intelligence Experience embeds this principle in the Corpo- and sustainable more personal. Data and informa- sensor data derived from the car project was presented at the Con- rate Policy on Data Protection. It industrialization and to support innova- tion are necessary to develop these and knowledge of the driver, traffic sumer Electronics Show 2020 complies fully with applicable na- tions. solutions and help us understand reports and forecasts and addition- and combines functions adopted tional laws on personal data, data customers’ wishes even better. The al information sourced from the from various research projects. It protection and personal rights to focus here is on the principles of Internet. “PIA” responds to voice describes a future scenario of the privacy. The emphasis is on trans- transparency and data minimiza- input, for instance, “learns” con- “empathic vehicle.” The car ana- parency and self-determination tion. In addition, we understand tinually and communicates inde- lyzes which functions and settings of how data is used. Audi informs premium to mean that we protect pendently and adaptively with the its user prefers – such as the seat customers in a suitable way about our customers’ data and devote user thanks to individually tailored position and massage options, how their personal data is handled. full attention to data security from algorithms. A similar approach media use, navigation, interior In particular, this includes what the outset. is being followed by the concept illumination and temperature or data is collected and processed, In future, the primary objective car AI:ME. It provides an insight fragrances for the car’s interior. for what purposes data is used and In the process, the digitalization of mo- will not be to collect as much data into how the car of the future will If desired, it can also orient itself whether certain data is transmit- bility and vehicles as possible but to offer the max- become a very personal mobility toward the user’s present state ted to third parties. Transparency helps achieve the imum added value with our cus- partner, with systems that think of mind and feelings. To do so, also means providing customers transition toward tomers’ data. Throughout recent ahead and in sync with the user the system interprets the style of with information on exactly what an economic and social lifestyle that years, Audi has demonstrated this and are capable of continual learn- driving or vital functions such as personal data on them exists at is better for the in a variety of research projects and ing. This enables them to respond the driver’s skin temperature and Audi. Data secrecy applies to such planet and for each concept cars. One example of this proactively and with empathy. The pulse as recorded by sensors inside information. individual. Audi Sustainability Report 2019 32 Progress you can feel

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Data privacy? Yes, please!

Encrypted communication “Our growing range of digital services Protecting the vehicle and back- is also increasing our responsibility. end infrastructures is essential We need to communicate with our cus- at Audi, as is secure data trans- tomers on data use and data privacy in mission. Audi uses encryption a manner that is easily understood,” routines of the kind used, for explains Konstantin Willmann. The example, for online banking, function developer in the Audi connect both when connecting from the area is responsible for implementing car and from a smartphone to these principles in the vehicles. “That’s the Audi Backend. Data storage why – and also due to the EU General on Audi servers is likewise en- Data Protection Regulation (EU GDPR) crypted. It goes without saying – we have developed a menu with data that administrative intervention privacy settings for our Audi models,” is documented in a plausible adds the developer. What this means for Audi MMI: Customers decide with just a few clicks manner. customers is that while in the car, it only takes a few clicks for them to reach their High data security “privacy settings” in the MMI user menu. release any data at all (activate privacy). this end, the main user can ­deactivate Data protection enjoys high There they can activate or deactivate Any user can customize the settings in nearly each individual service via the priority at Audi as early as the their personal online services based on the vehicle. Online functions of relevance myAudi web portal. These services are development stage of products their data use, and make targeted deci- to safety or required contractually or by then no longer available to any user of and services. Audi protects sions on data collection options. law – such as “Audi connect emergency the vehicle and cannot be reactivated sensitive data using recognized Since model year 2018, customers can call” or the “Audi connect stolen vehicle from inside the car. and proven embedded security use settings in their vehicles to decide tracking system” – cannot be deactivated On the myAudi portal as well as in the mechanisms and standards. whether or not they principally agree to in the privacy settings. These services data privacy information in the vehicle,­ When developing new functions, data processing. Since model year 2020, ­exclusively exchange the data governed customers can also find details for every the company enhances security customers can use these settings in a by contract or the statutory extent if ac- single service about the data processed mechanisms to meet or exceed detailed manner in almost all new Audi tively used/commissioned by customers. by it. the respective state of the art in models. In the privacy settings of the Settings which a user has activated data protection. The latest tech- MMI, customers can deactivate online inside the car cannot be changed outside nical and organizational mea- services if they do not wish for their data the vehicle; here top priority is given to sures ensure optimum security to be collected and used. Thus, they can the user’s privacy in the vehicle. The per- in the car. repeatedly decide if they would like to son referred to as the “main user” of an * Users can find information on which gene- share a GPS position (using the precise Audi can additionally restrict the services ration of MIB is installed in the vehicle or how vehicle location), if this should even be portfolio of his or her vehicle in all mod- certain service settings can be modified and Further information on data selected in their vehicle’s instruction manual, protection and data security is displayed to other users (sharing the els as of model year 2019 that feature from their Audi partner or Audi’s central custo- available at Audi.de vehicle location) or if they do not wish to an MMI system with a touch screen. To mer service team. Audi Sustainability Report 2019 33 Progress you can feel

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Audi redefines the pledge “Vorsprung durch Technik”: It is no longer solely about what is technically possible. Instead, it is about focusing consistently on the wishes of customers.

To this end, a comprehensive customer experience manage- ment system is in place at Audi. It serves as a control instru- ment and enables customers to experience a consistent and seamless customer journey that ranges from the classic sale to virtual advisory services.

Dialogue with customers A prerequisite for this is to engage in much more intensive dialogue with customers from the outset to identify their product and service development needs and to establish and measure the key interaction points within the customer jour- ney. This enables optimization processes to be triggered in good time, including interactions such as the handover and collection of the vehicle. The fundamental question to ask is Benefiting from what exactly do customers want and need – right now and in customer experiences the future. To spark people’s overall enthusiasm for Audi and make them loyal fans of the brand, the Company needs to offer them user-friendly products and digital services that enable When developing sustainable products and services, Audi The ideal customer experience is becoming an increasingly them to easily get in touch with Audi by means of analogue relies on long-term relationships with its customers. Thanks significant enthusiasm driver and distinguishing feature and digital channels. These can be digital services such as to a brand-differentiating customer experience (CE), the of a brand, thus making it a key criterion for a purchasing the myAudi app, which enables all digital solutions at Audi company intends to become number one for customer expe- decision. This is why it is important to develop new prod- to be booked, managed and used via a single intuitive user rience. Comprehensive CE management is a key instrument ucts and services sustainably, while focusing on customers interface. Or they can also be central service stations or to control and measure customer satisfaction worldwide. and their specific needs. dealers via which customers interact with Audi. Audi Sustainability Report 2019 34 Progress you can feel

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What does an ideal customer journey look like? It gener- the CEM Sales survey for purchases of new cars and under the ally begins with initial contact being made without any com- CEM Used Cars survey, customer satisfaction with the sales mitment. Potential customers perceive Audi as a possible process is determined using a brief online questionnaire – provider of mobility solutions and are interested in finding depending on country-specific implementation, this survey out how the company can satisfy their mobility needs. On- is taken 48 hours to two weeks after vehicle collection. The line, Audi offers them advisory services on its website, via CEM Service survey follows 48 hours after a service appoint- the mobility needs analysis and the configurator. Offline, ment to assess the customer’s most recent workshop experi- on-site advisors at automobile showrooms use their exper- ence. Customers can answer four questions pertaining to the tise and digital tools to assist customers in making their respective event. decisions. Interested customers can then log in using the myAudi app and book a test drive online or directly with the As many as 82 markets are currently taking part in the Audi Audi dealers on site. CEM study. Therefore, Audi’s survey generates about one million interviews each year, with around 15,000 users at the Audi also advises and accompanies its customers individu- businesses accessing the CEM portal with the latest custom- ally after they have purchased their vehicles, establishing er feedback, amounting to 2,300 logins each day. The partic- even more touchpoints for customer contact in the course ipation quota averages around 30 percent, which shows that of ­Audi’s customer experience management measures along customers certainly are quite willing to pass their feedback with intensified personal relations. While waiting for deliv- on to the businesses. In the future, Audi also plans to publish ery, customers can thus obtain information on their orders the CEM evaluations on dealer and sales websites, thus pro- placed and, if necessary, advice on alternative mobility solu- viding even more added value for customers. tions. Of course, Audi also maintains contact with its custom- ers after delivery and offers intelligent recommendations, Starting in 2020, a new question on satisfaction with the tutorials, invitations to exclusive events, original accessories product was integrated as the final aspect of the CEM survey. and individually tailored offerings in addition to its classic In around 80% of all CEM interviews, respondents provide Audi listens! Strategic customer vehicle and customer service. additional voluntary feedback about the product. These Prod- relationship management uct Reviews are a valuable source of information for those Sustainable customer relationship management with product responsibility at Audi. Customer satisfaction Audi’s goal is to become the leading In the interests of sustainability and long-term customer re- measurement beyond the CEM is supplemented by evalua- provider of sustainable premium mobil- lationships, within the scope of its customer experience man- tions derived from the app portals on digital offerings. ity. In doing so, the company focuses its agement (CEM) program the company relies on online sur- attention on customers’ needs. To inspire veys and evaluation tools as control instruments for gauging All satisfaction measurements are based on the 5-star customers and be successful, not only does customer satisfaction. Customers should be able to interact ratings frequently used in online surveys. This uniform ap- a company need to understand its clien- with Audi quite individually and talk with the company about proach serves as the basis to continue delivering premium tele; it must also shape the future even their specific experiences. The CEM Sales, CEM Service and, in services and thus consistently aligning activities to the fu- more intensively together with them. This some markets, CEM Used Cars surveys measure the degree of ture of mobility, a strategy that is beneficial to customers, is why sustainable and digital products and customer satisfaction with conventional retailers. As part of dealers and Audi alike. services are one of Audi’s top priorities. Audi Sustainability Report 2019 35 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Operating return on sales 2019 [100] In the interests Reflects the ratio of operating profit to sales and stands for profitability. The operating return on sales of 8.1 percent means that Audi generated an operating return of all stakeholders on sales of around 8 cents on each euro turned over.

The Audi Group not only wants to secure its own compet- itiveness over the long term; it also aims to act in a val- 8,3 8,1 ues-led and viable way, in the interests of all stakeholders. 7,8 In this context, Group-wide risk and compliance manage- 6 ment systems provide guidance for the company’s econom- 5,1 ic stability – especially in times of transformation processes (in percent) such as digitalization and decarbonization.

In the wake of responsible and values-oriented corporate governance, the primary focus is on profitable, sustainable 2015 2016 2017 2018 2019 growth. Growth that is not measured by volume, but by the key figures of operating return on sales and return on invest- ment after CO₂. Audi takes a holistic view of sustainability – in its economic decisions the company always also takes ac- count of ecological and social aspects in order to ensure long- Sustainable operations thanks to ESG change. Established business models are being replaced. term competitiveness and therefore uphold its responsibility Aspects that have become increasingly established on the New, sustainable products ensure growth. Companies man- as part of society. capital market, such as Environment, Social and Governance aged according to ESG criteria operate more successfully, (ESG), also contribute to the company’s economic stability. securing precious market share. The Audi Group invests in future technologies. Areas of focus Investors have realized that economic success and sustain- include investment in the field of digitalization and alter- able commitment are complementary and not contradictory. Just how massive the impact of ESG performance can be on native drive technologies. For the period 2020 to 2024, we corporate value is something that Audi can assess thanks to thus envisage research and development activities as well as ESG is therefore a specific expression of the paradigm change its own experience: The diesel crisis adversely impacted the capex amounting to some EUR 37 billion. Current plans re- currently unfolding in business and society. This means a company in many respects. And all employees are aware that flect a considerable improvement in investment and cost dis- symbiosis that no longer focuses on short-term success, but something like the diesel crisis must never be allowed to cipline along with a strong bias toward investing in electric on long-term, healthy interaction which benefits both sides happen again at the company. mobility – of the total of around EUR 37 billion, EUR 12 bil- – companies and society overall. The consideration of ESG lion is earmarked for electric mobility. Audi also continues to aspects is not only active risk management; it also serves as A challenging fiscal year develop the worldwide production network, taking account of the basis for long-term economic success – especially in this Return on investment (ROI) reflects how effective our busi- sustainability aspects. day and age, when society’s values are undergoing lasting ness activities are, by considering the return achieved on Audi Sustainability Report 2019 36 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

20152015 1.627 EUR 55,680 million EUR 4,509 million Operating profit 2019 20162016 Revenue in 2019 [100] 2.094 This is the result achieved by Audi after deducting This comprises all revenue generated by the the cost of goods sold, distribution and general ad- 20172017 [102] Audi Group in the past fiscal year. In particular, 4.312 ministrative expenses, taking into account the other these are proceeds from the sale of vehicles, operating result. Operating profit is the basis for engines and original spare parts. 20182018 2.141 calculating Audi’s profit share.

20192019 3.160 (in EUR million) (in Mio.EUR) the capital employed over a given period. Return Net cash flow[100] 12.7 percent on investment already takes account of CO2 compliance measures and can therefore also be understood as Return on investment [100] Cash flow is the sum total of all incoming and return on investment after CO . 2 outgoing payments recorded as part of Audi’s The profitability of an investment is reflected in the business activities. This key figure is evidence return on investment (ROI). This key figure descri- While Audi successfully mastered a challenging fiscal year of financial strength – and thus illustrates the bes the percentage-based ratio of operating profit 2019 with substantial operationally adverse factors, the company’s economic health. after tax to the company’s invested capital. company is pressing ahead with its transformation, aiming to generate a significant increase in corporate value in the long term. The Four Rings will strictly focus on customer-oriented innovations, further developing its business model profitably help support the new business model in financial terms. agreement will produce a cumulative effect on earnings of and realizing synergies both within the Volkswagen Group This is why Audi has currently chosen to rely on both com- around six billion euros by 2029. Both programs have paved and in external partnerships. bustion-engine technology and e-mobility. There must be a the way for Audi to once again achieve an operating return on healthy balance between the fields of economy, ecology and sales in the strategic target corridor of 9 to 11 percent in the Electric mobility as a business model society, as an imbalance would lead to the imminent risk of medium term. Achieving a healthy mix in terms of return and carbon foot- economic instability. print requires the necessary matching product portfolio. In Identifying opportunities, assessing risks 2025, electric cars like the e-tron will account for around Future financial success will be underpinned by two pro- As an automotive group with a global reach, Audi constantly 40 percent of all Audi models worldwide. This why it makes grams. First: the Audi Transformation Plan (ATP). It is aimed operates in a dynamic environment and is continually con- sense that the portfolio of the 2025 brand comprises some at fast-acting aspects of change. The ATP was successfully fronted with a wide variety of opportunities and risks. For 30 electrified models, including 20 fully electric ones. While launched in fiscal year 2018 and is expected to generate the company, sound corporate governance revolves around a the electric mobility business model entails risks, it also some EUR 15 billion for future projects in five years (2018- constructive dialogue and transparent handling of opportu- offers numerous opportunities. Electrification of the vehi- 2022). Specific measures have already been identified for 80 nities and risks. Apart from meeting statutory requirements, cle fleet is a necessity to lower fleet CO₂ emissions. In the percent of them. the particular purpose of an effective Risk Management course of this long-term transition to electric mobility, what System and Internal Control System (RMS/ICS) is to validate was referred to as the classic business model – namely the Second: Audi.Zukunft. The program is aimed at making the entrepreneurial goals as well as long-term viability and sale of premium automobiles with combustion engines – can the company structurally fit and competitive by 2029. This ­competitiveness. The Risk Management System is based Audi Sustainability Report 2019 37 Progress you can feel

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Three Lines of Defense Supervisory Board Research and development 7.9% expense ratio 2019 This figure indicates the Board of Management percentage of sales invested in research and development.

Ratio of capex 2019 [100] [101] Investments in property, plant and equipment, investment property and other intangible assets according to the cash First line of defense Second line of defense Third line of defense flow statement in relation to revenue. (in Prozent) (in percent) 6,5 [118] 6 5,7 5,9 Divisions Central CRC organization Internal audit 4,9

Coordination of control Operational Audit of ICS/ processes, governance and risk management RMS methodology 2015 2016 2017 2018 2019

on the internationally recognized standard defined by the inadequate anchoring of sustainability aspects in products In order to learn from risks that have occurred and avoid Committee of Sponsoring Organizations of the Treadway and processes or possible risks arising from extreme weath- them from happening again, a concept was launched to Commission (COSO). Audi uses a system comprising corpo- er events are also taken into account. implement a systematic cause analysis and lessons-learned rate and operative risk management. By way of a systemat- process in 2019. ically designed risk management architecture, Audi adopts The annual GRC process has been supplemented by a fur- the “Three Lines of Defense” model (see diagram), with its ther regular process, namely the Risk Quarterly Process. Further corporate risk management tasks at Audi include ex- clear separation of tasks and functions. The goal here is to record, evaluate and continuously mon- ecution and ongoing development of risk management tools, itor short-term, operative risks across all divisions and pro- training courses and interactive training programs as well as The Risk Management System helps to identify and min- duction companies. advising the operating units. imize potential risks and, where possible, to avoid them altogether. To ensure this, latent and recurring risks for the Moreover, AUDI AG consistently further develops the Risk Audi Group arising from its business activities are record- Management and Internal Control System. The Internal ed each year within the scope of the Governance, Risk & Control System within the Volkswagen Group and the Busi- Further key financial figures are available in the Appendix. For detailed information on the impact and the current situation as re- Compliance (GRC) process, including the countermeasures ness Continuity Management System are currently gards resolving the diesel crisis as well as on action taken, please refer and control activities adopted. Risks such as the potentially being extended. to the Audi 1019 Financial Report, on page 104f. Audi Sustainability Report 2019 38 Progress you can feel

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Who we are and how we want to be

How a company’s employees behave and which rules they follow in the process are firmly anchored in the corporate culture. Values and standards reveal a lot about identity. Appreciation, openness, responsibility and integrity are the corporate values of Audi.

These values illustrate that the Audi Group relies on team- work, embraces new challenges and embodies diversity. In addition, Audi has set itself the goal of being a company that bears responsibility – for the environment and society. Mis- takes should not be concealed, but rather addressed. This is a matter that concerns us all, particularly in the wake of the diesel crisis. It is also the only way to improve and constantly progress. Our corporate culture needs to be enhanced and put into practice.

Why change is important To raise awareness for other and new governance princi- ples and promote understanding for the need for a cultural change in the working world, as part of the “KulturZeit” project, Audi organized a panel discussion in October 2018. It centered on “The Silent Revolution,” a movie documenting the process of rethinking in the business world. The change is demonstrated using the Upstalsboom hotel chain as an example. As a second part of the series of talks entitled “BE INSPIRED,” visitors to the Audi Forum Neckarsulm not only had the chance to see the movie, afterward they were also able to talk to guest speakers such as Kristian Gründling, the Appreciation, openness, responsibility and integrity: director of the documentary. The goal was to encourage new Illustration of the Audi values ideas and provide impetus for people’s day-to-day lives. Audi Sustainability Report 2019 39 Progress you can feel

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Specific measures for successful collaboration Nobody is perfect. Ensuring that this adage becomes part of the culture requires pioneers who frankly and honestly dis- cuss matters that did not go well. This is precisely why Audi organized a series of events: “try.fail.learn” is intended to encourage employees to embrace new challenges, take risks, fail once in a while and stand up again, only to reflect and learn from it. Participants share their own stories of failure, how they handled the situation and what opportunities arose as a result thereof.

Such an exchange between employees requires flat hierarchies. Distances need to be dismantled first before A scene from the film people can learn from one another. The “Role Model Program “The Silent Revolution” 2.0” shaped the year 2019. It comprises an entire package The movie documents of measures to enable Audi managers with leadership func- cultural change in the working world. tions to improve the corporate culture together with their employees. For instance, in “A Week in the Life of....,” they became better acquainted with the tasks of a manager: What exactly does a member of the Board of Management actual- ly do? And what does their typical workweek look like? The special “Blind Date” format gives random lunch partners the opportunity to exchange their views. The “Culture Catalog,” a crowdstorming initiative by employees for employees, also How culture works in everyday situations Audi has considered its own leadership behavior in encourages the exchange of views. The catalog gathers and The Code of Code of Cooperation and Volkswagen Group Es- depth since 2013, and drew up the Audi leadership shares ideas on new forms of collaboration. sentials serve as guiding principles to ensure that corporate principles with the involvement of managers, employ- culture is consistently put into practice during everyday ees and the Works Council. These were gradually imple- work at Audi. These principles describe how the brands in mented in the HR tools. Participants have studied the the Volkswagen Group intend to work together, and they ten principles in depth in a series of workshops. After serve as the foundation that connects all 600,000 employ- anchoring the new leadership principles in all divisions ees. At the same time, this also constitutes a pledge to cus- and at the international sites in 2016, Audi has estab- tomers, shareholders and business partners. The focus is on lished an organizational unit for Leadership and Collab- the attributes “genuine,” “straightforward,” “open-mind- orative Culture since 2017. Employees should rely on ed,” “as equals,” “united” and “trust.” these principles for guidance. Audi Sustainability Report 2019 40 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Clear values, clear course The principle of employee agreements reached in favor the overall quality of time participation is the basis of of the employees. At the spent at the company (mod- Audi’s corporate culture. At quarterly works meetings, ifications to office design, all Audi sites and at the sub- the employees are informed ergonomic measures in pro- sidiaries worldwide, the em- of the activities of the Works duction) and, in particular, ployees are organized into Council and the current situ- the negotiations on the gen- independent trade unions ation of the Company. eral agreement “Audi.Zukun- and employee representative There are also elected ft.” In addition to adjusting bodies. On the Supervisory youth and apprentice repre- production capacities for Board of AUDI AG, the em- sentative bodies as well as Ingolstadt and Neckarsulm, ployees’ elected representa- disabled employee represen- agreements were concluded tives perform duties such as tatives at AUDI AG who spe- on socially responsible job monitoring executive man- cifically take up the concerns cuts along the demographic Stimmungsbarometer agement, approving import- of the employee groups that factor, for development and ant corporate processes and they represent. production of innovative and How is the general mood in the work- appointing the members of The main topics in the pe- environmentally friendly pre- force? The regular employee survey is the Board of Management. riod under review were – in mium vehicles, on extending another way in which Audi promotes The Audi Works Council addition to the projects de- co-determination rights employee participation. This survey plays an active role in shap- scribed in the chapter “Em- pertaining to the vertical gives employees a means of voicing ing the future at Audi. For ployees & Society” regarding range of manufacturing, their opinion anonymously on various example, all works agree- the handling of the digital service and development matters and highlighting potential ments are reached jointly transformation as well as in the company and for the improvements. with the employee represen- co-determination and cor- common creation of master 40,886 (2018: 42,173) employees tatives at AUDI AG. The latter porate culture at Audi – the plans for sustainable and took part in the AUDI AG “Stimmungs- also oversee compliance with reduction of stress factors strategic development of barometer” in 2019. The results are the laws, directives, accident and risks at work that im- domestic factories by the presented in the individual organiza- prevention regulations, pact physical and especially management and employee tional units and discussed with the

wage agreements and works mental health, increasing representatives. employees. GRI 102-41 Audi Sustainability Report 2019 41 Progress you can feel

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Operations and Integrity The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” as well as “Employees and Society.”

Goal Measure Date Comparison of SDGs 9 to 11 percent operating return on sales Implementation of the Audi Transformation Plan and the Audi Strategy Continuous by no later than 2025 development

21 percent return on investment (ROI) Implementation of the Audi Transformation Plan and the Audi Strategy Continuous by no later than 2025 development

5.0 to 6.0 percent research and development Implementation of the Audi Transformation Plan and the Audi Strategy Continuous ratio by no later than 2025 [6] development

5.0 to 6.0 percent ratio of capex Implementation of the Audi Transformation Plan and the Audi Strategy Continuous by no later than 2025 [7] development

Self-finance the transformation to provider Implementation of the Audi Transformation Plan and the Audi Strategy Continuous of sustainable, individual premium mobility development

EUR 15 billion measure potential through the Programs already set up with Project Management Office (PMO) and work packages 2022 Audi Transformation Plan 2018-2022 from the Board of Management. Flanked by ongoing monitoring and control.

Reinforce Group-wide compliance and integrity Implementation of the Group-wide compliance and integrity program 2025 Together4Integrity in all companies through 2025

Accompanying communication campaign Together4Integrity 2025

Global protection and responsible Definition of data processing principles applicable worldwide 2020 handling of personal data

Establishment of a data protection organization within the Audi brand group 2020

Binding measures in the Audi brand group, e.g. maintaining a procedure directory, Continuous internal reporting processes for data protection violations, ensuring the rights of development parties concerned or establishing an appropriate risk management system Audi Sustainability Report 2019 42 Progress you can feel

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Which technology is truly sustainable? Audi Sustainability Report 2019 43 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

he Audi A5 approaches the intersection. The stop sign tells the driver to stop – but Tthe A5 does not slow down. It enters the intersection without braking. The driver of the Audi A1, who has the right of way, doesn’t stand a chance – she cannot stop in time. She swerves to avoid the other vehicle, but the collision is inevitable. This accident* happened a few weeks ago, but in the virtual world it takes place again and again from many differ- ent angles – from an aerial perspective and from the view of the two drivers involved in the accident. The 3D anima- tion of the accident reconstruction is repeated several times so that all the spectators in the room can get an ac- curate idea of what happened. On this Friday in November 2019, around 20 experts from various fields are sitting in a meeting room at Technical Devel- From all opment in Ingolstadt. The AARU, Audi perspectives: Accident Research Unit, has invited Maximilian the experts to an interdisciplinary case Purfürst, Kristin Blum, Thomas review. In addition to Audi employees Schenk and from Product Analysis, Data Analysis Mathias Baumann and Driver Assistance Systems and from (from left to the specialist department Vehicle Safe- right) analyze an accident. ty, the participants include employees from the cooperation partner, Univer- sity Hospital Regensburg. They are all working to make mobility in general and cars in particular safer by investigating Better safe than sorry the circumstances of accidents. Psychologist Karen Tschech and her The AARU (Audi Accident Research Unit) carries out important work in the field of accident prevention. team interviewed the two people in- Its findings help improve traffic safety. A day with the team. volved in the accident several weeks

*The scenario of this accident was changed to protect the personal rights of the people involved. Audi Sustainability Report 2019 44 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Thematic goals of Developments in road traffic prior to the meeting. Their goal support the accident investigators. Source: German Federal Statistical Agenda 2030 Fatalities (in thousands) Office (Destatis), 2020 was to investigate the psychological During office hours, this hotline is aspects of the accident: Was distrac- answered by the AARU team assis- 24 tion an issue? From the viewpoint of tants and, at night, by the duty of- 50 100 On rural roads everyone involved, how did the acci- ficer from the medical team, thus 22 dent happen? Of course, to get an- the police can call 24 hours a day, Within cities/ 0.8 20 towns maximum blood alcohol limit swers to these questions, those in- seven days a week. 18 volved must agree to the survey. This When accidents are being an- Helmets are mandatory cannot always be taken for granted, alyzed, the physicians’ input is 130 16 but when the people involved in the also important. Dr. Katharina An- 14 On highways Seat belts are mandatory accident hear that their case may gerpointner works in the trauma 12 help prevent similar accidents, they surgery department at University The goal is to 10 tend to consent to these interviews. Hospital Regensburg, where she ensure that all 0.5 people of all ages maximum blood treats people who are injured in 8 can live a healthy alcohol limit 24 hours a day, seven days a week accidents. When it comes to ac- life and to 6 promote their When an accident occurs, things cident research, she becomes an Fatalities 4 well-being. The often have to happen fast. This is analyst – and she is well prepared: Statutory change why the team receives accident re- With her team, she analyzes the results of accident 2 investigations at 0 ports via the AARU hotline from all injuries of the people involved in Audi will also help police departments in Bavaria that the accidents and explains to the achieve this vision. 1960 1970 1980 1990 2000 2010

Number of people killed in road traffic accidents by Audi technicians which body parts need preliminary work from the selected type of road use and location, 2018 of the passengers had contact with psychologists and physicians; the the interior and what injuries were AARU also prepares the accident 1012 495 caused by this. This is valuable and occurrence meticulously in the run- 190 96 important feedback for the devel- up to the meeting. Often, a drone Rural road opers. Have all the passive safety is used to take a lot of photos at systems functioned as required? the site of the accident, which cre- A resilient What could be improved? All the ates a data cloud of the location. 232 43 0 19 infrastructure findings are sent to the develop- Based on this data, the precise Highway also includes ment department, and ultimately analysis of the accident vehicles transportation 180 159 250 343 that enables they make the next generation of and the police reports, it is then environmentally Audi models even safer. possible to recreate the accident Within friendly mobility. Physicians, psychologists and down to the smallest detail during cities/ Source: Naturally, all technicians, all gathered around the meeting. towns German Federal means of trans- Statistical Office port should enable one table. Before they can “dis- This is where Kristin Blum comes Passenger Motorcycles Bicycles Pedestrians (Destatis), 2019 safe travel. sect” the accidents, they not only in. She works on developing cars Audi Sustainability Report 2019 45 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Driver-related causes of accidents involving personal AARU service Crash tests with the injury in road traffic, 2018 in percent vehicle power of water In Norway, Audi and Volk- Mistakes in turning left/right, swagen recently moved making U-turns, reversing, into a carbon-neutral data entering the road or starting 16.0 center near Oslo, which Failure to yield right of way 14.3 operates 100 percent with hydroelectricity. At Insufficient distance from others 13.9 the end of 2019, the data center had approximately Inappropriate speed 11.4 2,800 servers, which will be increased to a maxi- mum of about 5,600 in Improper road use 6.9 For Blum, the EDR (Event Data Re- chain differs. This case shows that the long term. Improper behavior towards corder) is a great help in simulating the work of the AARU does not end Vehicle developers use pedestrians 4.3 accidents. This system records the with a pure analysis of the colli- its computing power of five seconds prior to the airbag sion. “The focus is also on the res- up to 2,750 kilowatts for Mistakes when passing 3.8 being triggered. With the accident cue measures after the actual acci- computation-intensive analyzed here, the initial speeds dent. This is especially important projects, such as virtual Influence of alcohol 3.6 were about 50 km/h. with high-voltage vehicles, as the wind tunnel trials and sim- Using all the available data, Blum rescue workers should know how ulated crash tests. Other causes 25.7 calculates that from the aspect of to handle electric vehicles so as not Annual savings? The both cars, an emergency braking to put themselves at risk.” Audi can plant in Rjukan saves more Source: German Federal Statistical Office (Destatis), 2019 system with cross-traffic function help here, too. than 5,800 metric tons would very likely have prevented For more than 20 years, the of CO₂ annually compared this accident. AARU has investigated and as- with a conventionally op- sessed almost 1,500 accidents. erated data center. predictive safety functions. As the accident or at least minimized Analysis of the rescue chain Thomas Schenk has been in this an automotive engineering tech- its consequences for the pas- Another accident is being dis- business for a long time. He is a nician, she analyzes accidents sengers? Neither vehicle had an cussed. There is a reason why this true professional when it comes based on the technical criteria of emergency braking system with case is especially interesting for to the on-site investigation work. existing safety systems in Audi cross-traffic function on board. the Audi technicians: An Audi A3 And one thing is very clear to him: models as well as systems that Could such a system have prevent- Sportback e-tron* was severely The feedback from the AARU helps are still in the development phase ed the collision? And how would damaged on impact. In regard improve general traffic safety – for at Audi. With regard to the crash the intelligence of the function to high-voltage vehicles that are the passengers in an Audi and for between the Audi A5 and Audi A1, have to be programmed to classi- involved in an accident, it is of par- everyone else involved. The AARU she is looking for an answer to fy the approaching vehicle as an ticular interest whether they be- thus makes an important contribu- the following question: Could an accident risk, warn the driver and have differently from conventional tion towards ensuring that all road assistance system have prevented apply the brakes? vehicles and whether the rescue users get from A to B safely.

* Audi A3 Sportback e-tron: Combined fuel consumption: 2.0–1.9 l/100 km; combined electric power consumption: 12.7–12.2 kWh/100 km; combined CO₂ emissions: 46–43 g/km. Audi Sustainability Report 2019 46 Progress you can feel

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Final check of the new Audi e-tron* and Audi e-tron Sport- back* in the Brussels plant.

Full of power Audi is pursuing the full spectrum of electric mobility. For example, the brand offers pure electric cars and is committed to developing the charging infrastructure. Plug-in hybrids also contribute towards electrifying internal combustion engines; with mild hybrids, Audi is helping increase efficiency. Here are the most important key parameters and projects from the 2019 drive strategy.

Latest e-tron developments Latest hybrid developments The Audi e-tron* and e-tron Sport- In electric mode, plug-in will be even more on elec- back* demonstrate that Audi is hybrids are already ideal tric mode; in most cases, winning people over with its first for local emissions-free the internal combustion “Unleash the beauty of sustainable mobility:” To purely electric cars. In 2019, the driving over short dis- engine will be used only achieve this goal, Audi adopts a broad-based approach. e-tron was awarded the Gold- tances, such as in the rarely to cover longer dis- After all, one thing is certain: In the near future, there en Steering Wheel in the large city, but with efficient tances. Developments in will be more than just one drive system. In addition to SUV (C-SUV) category. As a BEV internal combustion en- the modular strategy in electric mobility, Audi is working on other options for (battery electric vehicle), it beat gines they also offer full the Volkswagen Group al- potential carbon-neutral driving and is also continuing the competition with internal long-distance capability. low Audi to offer suitable to optimize conventional drive systems to make mobili- combustion engines. This makes At Audi, the focus is on drive solutions for differ- ty more environmentally friendly. the fully electric e-tron the new hybridizing its models ent requirements, even benchmark in the C-SUV catego- with gasoline engine for hybrid drive systems. By 2025, Audi plans to introduce around 30 electric ry. More e-tron models will be drive systems. In the This also applies to plug- models, which would correspond to approximately 30 introduced during 2020 and the future, especially with in hybrids in different to 40 percent of worldwide deliveries. following years. plug-in hybrids, the focus performance classes.

* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/km: 0 Audi e-tron Sportback: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), combined CO₂ emissions in g/km: 0 Audi Sustainability Report 2019 47 Progress you can feel

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Electric Audi A4: 12-volt lithium ion battery Mild hybrid 12-volt drivetrain Thematic goals of Agenda 2030 2.0 TFSI engine*

12-volt belt alternator starter

Immediate action is required to combat climate change. Lo- cal commitment is also needed. The goal is to es- tablish a resilient infrastructure, to promote inclusive 12-volt battery and sustainable industrialization and to support inno- vations.

Advances in conventional engines By 2025, Audi plans to electrify the form of product improvements of conventional engine development powers many models from various all core model lines. To achieve and at model changeovers. A good show that Audi is on the right track. product lines. In 2019, the Q5 was this goal, measures and technical current example is the mild hybrid For instance, in 2019, Audi received added as a plug-in hybrid. It is also modules that reduce the fuel con- system, which recovers energy the “International Engine of the used in mid-range g-tron models. sumption of internal combustion during deceleration. Depending Year” award for the 2.0 TFSI in the Diesel engines will continue to engines and lower CO₂ emissions on the vehicle type, it is possible category of engines with 150 to 250 The transformation be an important element in Audi will be pooled in a modular e-drive to save fuel and reduce CO₂ emis- metric horsepower. According to the toward a form of drive concepts in the future. The concept. The persons responsible sions. This is done with the inte- jury, the four-cylinder engine is “one economic system company is working on reducing for the respective product lines grated lithium ion battery, which of the most flexible and versatile and lifestyle emissions even further. In this that respects the will evaluate these technical mod- can store a significant proportion engines ever developed – in short, natural limits of context, Audi is focusing on ef- ules and implement them where of the braking energy. The energy it’s an all-rounder.” It is used not our planet can ficiency and performance as key appropriate. recovered is used to support the only as a pure gasoline engine, but succeed only if properties of diesel engines and In this way, efficiency-enhancing combustion engine when operating also as a plug-in hybrid drive and for people change their their use in the midsize to full-size consumer habits technologies will be integrated under unfavorable loads. operation in Audi g-tron models. and production class segment. gradually into the model series in The successes achieved in the area At Audi, the 2.0 TFSI currently technologies.

* Audi A4 2.0 TFSI: Combined fuel consumption in l/100 km: 6.0–5.7 (NEDC); 7.4–6.5 (WLTP); combined CO₂ emissions in g/km: 136–128 (NEDC); 168–148 g/km (WLTP) Audi Sustainability Report 2019 48 Progress you can feel

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Latest h-tron developments Electricity from the VW brand “Elli” Fuels from renewable sources In 2019, there was less focus on other. The first testbed vehicles Electric mobility will become practical and Various manufacturers have intro- fuel cell technology (h-tron) than from the latest h-tron generation consistently sustainable only when the elec- duced new processes to produce on electric drive systems. Audi will enter the trial phase. tricity is also generated sustainably. In 2020, fuel from renewable sources sees fuel cell vehicles as a special One option for the future is a an entry-level wall box should be available (bio-based or power-to-X). Audi is form of electric drive – and from plug-in hybrid with a fuel cell, with which customers can charge their cars monitoring these developments a technical aspect, both drive which combines low-emission 100 percent emissions-free. It will be of- very closely and investigating the systems (e-tron and h-tron) have mobility and the ability to cover fered in cooperation with the Group’s elec- compatibility of these fuels with parallels and complement each long distances. tricity provider Elli (Electric Life). current and future engines.

Charging infrastructure & IONITY Fleet emissions Electric mobility will succeed only if the network According to official testing by the European of charging terminals for electric cars is dense Commission, average CO₂ emissions from enough. To reduce range anxiety among custom- new Audi vehicles registered in the Euro- ers, Audi and the IONITY joint venture are build- pean Union in 2018 were 129 g/km. Based ing an efficient fast-charging network. on provisional calculations, the average CO₂ At the end of 2019, 130 stations were oper- emissions of newly registered Audi vehicles ating along Europe’s main transport arteries in the European Union are expected to be and highways. The target for 2020 is to have around 131 g/km in 2019. Fleet fuel econo- 400 charging stations throughout Europe. The my in China (FBU) in 2019 was 5.9 l/100 km system uses the open European standard Com- (2018: 7.5l/100 km). bined Charging System (CCS). e-tron models can The successful introduction of the fully charge at these stations with 150 kW, which gets electric Audi e-tron was not able to complete- them ready for the next stage of a long-distance ly make up for supply and demand-related trip in just 30 minutes. IONITY is pursuing the shifts in the model portfolio. A lower diesel goal of using as much renewable energy as pos- mix in combination with a higher SUV share sible and is working in a targeted fashion with resulted in increased CO2 emissions in the local energy suppliers. The Audi e-tron Charging 2019 fiscal year. Service enables drivers to charge their vehicles In 2020, AUDI AG is predicting significant in different countries with just one card. The net- reductions in fleet emissions, primarily work already encompasses 24 European coun- through the much higher availability of ful- tries with more than 145,000 charging points. ly electric models and PHEVs, but the new

A3 is intended to contribute to C02 reduc- tions as well. Fast-charging station from IONITY: Audi e-tron Charging Service

* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/km: 0 Audi Sustainability Report 2019 49 Progress you can feel

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Integrated and well thought out

Thinking consistently from start to finish: The life cycle assess- ronmentally friendly throughout all areas of the value chain raw materials to logistics to production, from the first to the ment of a vehicle shows where its environmental footprint aris- and across the entire life cycle of a vehicle. last kilometer on the road, from de-registration to recycling. es. This analysis helps Audi develop measures to move forward quickly towards carbon-neutral mobility. Ecological tire print Cradle to grave Audi has set itself the goal of reducing environmental impact In order to prepare a complete life cycle assessment, the life While the general public tends to assess the sustainability across the entire life cycle. In order to evaluate this objec- of a car is divided into three phases: production, utilization of cars on the basis of their fuel consumption, Audi consid- tively, the company prepares a life cycle assessment (LCA) at phase and recycling (see infographic). Production has three ers much more than just the CO₂ emissions created during the production start of a new vehicle model. This assessment sub-categories for which data is recorded: raw material sourc- driving. In order to be a role model with regard to the envi- is a standardized, systematic analysis of the environmental ing, component production and vehicle production. The uti- ronment, the company aims to offer everyone mobility that impact of a product across its entire life cycle in accordance lization phase is divided into the provision of fuel/electricity has as low an impact on nature as possible. This is why Audi with the international ISO 14040 ff. series of standards. The and vehicle emissions. At the end of its life, the vehicle is re- is working towards making its products and services envi- life cycle includes all conceivable impacts, from the required cycled. For many of the raw materials used, this is the start

The life of a car Cradle to grave: When carrying out a life cycle assessment (LCA) of a car, the experts distinguish between three phases

Production Utilization phase Recycling

Cradle-to-gate Well-to-wheel

Fuel/ Vehicle Raw materials Component Vehicle production electricity provision emissions sourcing production Gate-to-gate Well-to-tank Tank-to-wheel Audi Sustainability Report 2019 50 Progress you can feel

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Comparison Production Utilization Recycling of carbon 50

footprints: 45

Although CO₂ emis- 40 sions produced during the manufacture of an 35 Audi e-tron are twice as high as during produc- 30 of a new product life – whether in a new vehicle or in other tion of a comparable products (page 62). vehicle with an internal 25 combustion engine, they are amortized af- 20 Complex and time-consuming analysis ter about half the total But how is a life cycle assessment prepared? Modern vehicles mileage. 15 comprise 3,000 to 5,000 components – and LCA experts ana- Greenhouse gas potential [t CO₂ eq.] CO₂ gas potential [t Greenhouse lyze each of these based on the bill of material and the mate- 10 rial data. This means that all the work steps required in pro- 5 duction are recorded, as are the environmental impacts. This information is used to create a huge database that can be accessed to prepare the life cycle assessment. A look at this 0 km 100,000 Km 200,000 Km database shows just how complex the analysis can be, even of simple components: For example, with tires, the electricity Legend consumption used in their manufacture is also recorded – Audi e-tron 55 quattro* Audi e-tron 55 quattro* Audi Q5 2.0 TFSI* Audi Q7 3.0 TDI* thus the electricity mix at the tire production location makes efficiency 265 kW (MY2019) efficiency 265kW quattro S tronic quattro tiptronic 200 a big difference. Electricity from renewable (MY2019) 185kW (MJ 2017)** kW (MY2016) sources EU electricity mix (NEDC) The result of all the calculations, with approximately 40,000 process steps, is the LCA model, which allows vehi- cles to be compared with each other and also answers the question: Does the new model have a lower environmental impact than its predecessor?

Fast identification of optimization requirements battery production. Audi is also very much involved in the Market leadership in sustainable mobility An LCA quickly indicates optimization potential not just for complex area of recycling instead of leaving it to external The effectiveness of all the actions taken to reduce CO₂ is vehicles with conventional drive systems but also for electric companies. In the spirit of the life cycle principle, the life of reflected in the life cycle assessment of a vehicle, but not cars. Once Audi knows where the hot spots are – these are the vehicle components continues after the vehicle’s utilization just there: It is also included in the DCI – which stands components or processes that experts know have a particu- phase. Every Audi contains valuable raw materials, which, for decarbonization index. This index is very important larly high impact on the environment – it is easier to set pri- with smart processing concepts, can be reused. The goal is to throughout the Group, since it is a key performance indi- orities. For instance, one result of the life cycle assessments create a circular economy. For this to succeed, the recycling cator for the “Together 2025” strategy – the vision of the is the knowledge that the production-related environmental phase must be taken into account as early as the develop- Volkswagen Group to become the world’s leading provider impact is reduced if green electricity is used consistently in ment of a new vehicle. of sustainable mobility (page 15).

* Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/ ** In an earlier version of this article, the model name Audi Q5 2.0 TFSI* quattro tiptronic 169 kW km: 0. Audi Q5 2.0 TFSI (model year 2017 // NEDC) and Audi Q7 3.0 TDI (model year 2016 // NEDC): Vehicles are no longer offered (MJ 2016) was listed. In fact, it is the Audi Q5 2.0 TFSI quattro S tronic 185kW model (MY 2017). for sale. Fuel/electric power consumption and CO₂ emission figures for current models can be found on page 110 This was corrected in June 2020. Audi Sustainability Report 2019 51 Progress you can feel

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Volkswagen Group: DCI targets

On the road to carbon- neutral mobility, the

decarbonization index (DCI) serves as a helpful resource for all of the Volkswagen Group brands. It measures the effectiveness of all measures equivalents

per vehicle carried out by the Volkswagen Group to reduce CO emis- t CO₂ 2 sions. Measured against 2015, the DCI is expected to fall by 30 percent Group-wide by 2015 2025 2050 2025.* The Volkswagen Group Net zero aims to achieve net zero car- carbon emissions bon emissions by 2050.

The great challenge of decarbonization

Those wishing to travel in a more environmentally equivalents). The long-term goal is to create a carbon- This is the Group’s key performance indicator and is used friendly manner need more than just a car with low neutral world, which Audi also intends to help bring about. to summarize and evaluate all measures aimed at reducing fuel consumption, since sustainable mobility is highly After all, the Group is committed to the goals of the Paris CO2 throughout the entire life cycle. The DCI factors in the complex and encompasses far more than just that par- Climate Agreement and is making a contribution to limiting entire value chain – from the extraction of raw materials ticular aspect. This is why the key word in the sustain- global warming to less than two degrees Celsius. Audi is (manufacturing, supply chain) and production (manufac- ability strategy is “decarbonization.” pursuing the long-term vision of being a provider of carbon- turing, Volkswagen Group) to the provision of fuel and elec- neutral premium mobility and aims to achieve net zero tricity and vehicle emissions (utilization phase) to recycling. The term literally means the reduction of carbon, or more carbon emissions throughout the company by 2050. precisely, refers to the practice of shifting to an economic system that sustainably reduces climate-impacting emis- The Group has developed a tool to measure its progress * Compared with the reference year 2015 sions (measured in carbon dioxide equivalents, or CO₂ throughout this process – the decarbonization index (DCI). and over the entire product lifecycle Audi Sustainability Report 2019 52 Progress you can feel

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Audi on the web – up close and personal No time to visit an take them on a virtual All for one and one for all Audi location? Not a journey through select- problem! Customers ed production locations who want to see what’s and experience the It is the future software powerhouse within the Volk- The organization develops cross-brand software in five do- happening at the Four plants live. From parts swagen Group: The Car.Software organization. From mains: Connected Car & Device Platform, Intelligent Body Rings production plants production to quality 2020, the new independent business unit brings to- & Cockpit, Automated Driving, Vehicle Motion & Energy and and interactively expe- tests, AudiStream gives gether all the participations and subsidiaries in the Digital Business & Mobility Services. The goal is to establish rience the location and visitors exclusive in- Group that develop software for use in the vehicle and a standardized software architecture across the Group and highlights live and on- sights into the produc- for the digital ecosystems. bring together hitherto parallel development pathways of line from the comfort tion process. the brands. There are clear advantages for Audi: This will of their home have the But there’s more: This is aimed at benefiting customers in particular – because create synergies and generate economies of scale, and opportunity to do just With AudiStream, de- Audi will have more resources to focus on customer-facing therefore cut the software costs per vehicle for all brands. that – thanks to the partments such as Audi functions. In the first phase, around 3,000 digital experts Furthermore, the pooled competencies also make the en- AudiStream service Design provide fasci- from the participations and subsidiaries will work together. tire Group more forward-looking and competitive. In other that was launched in nating glimpses of their words: Well equipped for digitalization and the technolo- 2019. work and explain to The Car.Software organization will be rooted in Audi Electron- gies of the future. visitors: “What makes ics Venture GmbH; additional German sites include Berlin, Livestream an Audi an Audi?“ Bochum, the Ingolstadt and Stuttgart regions, and Wolfs- With the online service, burg. The software organization’s international locations of visitors can have guides www.audi.stream include Seattle (United States) and Beijing (China).

Competencies to be pooled Over the past years, there has been an enormous increase in the proportion of software in cars. This area now constitutes a large part of the added value and has significant effects on vehicle performance. In addition, expenditure for software Audi connect – new functions in 2019 development is rising constantly. Two-thirds of the costs are used for developing “basic functions” that are required by The many new and extended Audi connect function Markets all the brands. On the other hand, brand-defining “functions connect functions introduced for that customers experience directly” account for just one- connected vehicles illustrate the Audi connect remote & control / Other countries within ECE** Emergency call & service* Internationalization: USA, CAN, third of the costs. This is why the platform and module con- innovative strength of AUDI AG MEX, JP, KOR, SGP, MYS, TWN, cept is to be fine-tuned – in the future, there will be one stan- in the year under review of 2019. HKG, AUS, NZL dard software platform that will be used for all brands and in Internationalization is quickly be- Digital assistant* (Amazon Alexa) ECE** all markets. The Volkswagen Group aims to increase its share coming evident here. of in-house software development for the use in vehicles Traffic light information online in selected cities ECE**, USA, CAN from less than 10 percent today to more than 60 percent by * Rollout for existing vehicles. Online navigation map update CHN 2025. The Car.Software organization will play a key role here. ** ECE: in selected regions within Europe Audi Sustainability Report 2019 53 Progress you can feel

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Willingness (as a percentage) Are you ready to pay more for self-driving cars to let go? 28 64 32 30 28 27 24 18 17 14

Cross- China South Italy Spain USA United Japan Germany France border Korea Kingdom Interest in autonomous driving 98 (as a percentage) by country 94 88 84 82 77 75 75 74 72 Audi is a driving force in the field to insiders. The study, called “The that intends to be proactive and of driver assistance systems – but Pulse of Autonomous Driving,” informed in contributing to a bet- what do most people think about also defined five profiles of differ- ter world,” says Floridi. technological leaps in automated ent users (see next page) of auton- After all, autonomous driving is driving? A study from Audi pro- omous driving. the subject of many highly charged vides clarity. “The study is more than just a debates. Getting into a car that welcome addition to our knowl- takes passengers to their destina- Are you worried when the pilot edge of the autonomous driving tion on its own? Some people are switches on the autopilot in a phenomenon,” says Dr. Luciano frightened of this idea, while to plane? In the distant future, a Floridi, Professor of Philosophy others it sounds like the ultimate feature that is well established in and Ethics of Information and vision of free mobility. But one aviation and rail traffic will also be Director of the Digital Ethics Lab thing is certain: Audi has been common in cars: conditional au- at the University of Oxford. Flo- working on autonomous vehicle tomation. But are people ready to ridi is a member of the scientific technology for many years. let go of the steering wheel? network of the “&Audi” initiative, The Audi AI:ME and Audi AI:CON In a large-scale online study, which provided the framework for illustrate impressively how this Audi investigated the readiness carrying out the study. “The study could work and what it could look of 21,000 people from nine coun- is a necessary step for any poli- like in the future. They belong to the tries on three continents. Many of cy and law-making decision and family of concept cars that began USA USA

Italy the results were surprising, even every R&D and business strategy in 2017. Each of the visionary Spain Japan China Japan China Cross- Cross- France border United Italien Spanien Germany Kingdom Südkorea Frankreich Vereinigtes Vereinigtes Königreich South Korea Deutschland Länder- übergreifend Audi Sustainability Report 2019 54 Progress you can feel

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Survey “The Pulse of Autonomous Driving”: What are the user types for self-driving cars?

Suspicious drivers prefer to Safety-oriented Open-minded co-pilots have take the wheel themselves reluctants tend to be re- a positive attitude to autono- vehicles is designed specifically cent of those surveyed do not trust and would like to keep the served about autonomous mous driving, but still always for its clearly defined area of use: the technology and around a third status quo. They would driving. In general, they at- want the option of interven- The Audi AI:CON combines exclu- are afraid (38 percent). However, not consider autonomous tach little importance to cars. ing. They see the advantages sive comfort with sophisticated the respondents appear to have lit- driving until it is fully es- Safety is the key point for of the technology and want technical features for its occupants tle knowledge about autonomous tablished. As fans of safety, them, and they are less likely initiatives from business, during a long journey. The Audi driving: Only 8 percent feel able to they are fundamentally to look for adventure. They science, and politics to make AI:ME is an autonomous, fully net- explain the subject. critical of the unknown – believe that self-driving cars sure that cars are launched on worked “well-being” lounge for the Another interesting fact is the including new technologies. should be tested for years be- the road safely. They also ex- mega cities of the future. differences between the countries fore being approved. pect the technology to result that were investigated, which the in greater safety. A great deal of curiosity – little survey renders comparable with knowledge the Human Readiness Index (HRI). HRI -8.4 14 percent of all HRI -2.8 24 percent of all HRI +1.3 30 percent of all respondents respondents The survey “The Pulse of Auton- The HRI combines knowledge, respondents omous Driving” discovered that, interest, emotions and a willing- while there is great anticipation ness to use autonomous driving to with regard to self-driving cars, produce a numerical indicator on a many people also have concerns. scale from –10 to +10, and shows On the one hand, in various coun- us how attitudes to autonomous Status-oriented Tech-savvy passengers tries there is a lot of interest (82 driving are linked to sociodemo- trendsetters can demon- would ideally like to get in percent) and a high degree of graphics. The results show that the strate their progressive life a self-driving car today, are curiosity (62 percent) regarding younger respondents are and the styles with a self-driving not afraid and trust tech- autonomous driving. Those who higher their levels of education and car – and they find this ex- nology. They hope for easier were surveyed see potential for income, the more they are positive- citing. In search of excite- access to mobility, greater individuals and society in the new ly disposed toward autonomous ment and adventure, they comfort and, above all, technology – from easier access to driving. With an HRI of +5.1 the love new technologies. more safety on the road. mobility (76 percent) to greater Chinese lead the ranking, while They are convinced: Auton- comfort (72 percent) to increased drivers in Germany and France are omous driving technology HRI +8.4 16 percent of all respondents safety (59 percent). More than more reserved, with an HRI of -0.7. will prevail if reputable half of the respondents would like manufacturers develop it. to try autonomous driving. But on the other hand, many people are HRI +3.3 16 percent of all respondents clearly concerned, mainly about loss of control (70 percent) and More information about the survey “The Pulse of Autonomous Driving” technically unavoidable residual can be found at www.audi.com/ risks (66 percent). Forty-one per- pulse-of-autonomous-driving Audi Sustainability Report 2019 55 Progress you can feel

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Driving through the city on a green wave? Audi is few months, 94 of the 160 traffic lights in the Ingolstadt Imagine all working with cities around the globe to make this city area habe already been integrated into the V2I service. vision a reality – for example, with the Audi traffic The remaining intersections will be included by 2022 so light information service. This vehicle-to-infrastruc- that, thanks to the service, drivers should be able to cruise the lights are ture (V2I) service increases efficiency, convenience, through Ingolstadt on a green wave and, ideally, reach their and safety in traffic. destinations without having to stop at all.

green! Review, July 2019: In the German city of Ingolstadt, Audi is Audi traffic light information includes two main functions: working with the office for traffic management and geo- Green Light Optimized Speed Advisory (GLOSA) and Time- information to optimize traffic flows with the aid of digital to-Green. GLOSA calculates the optimum speed for a green tools. How? By having traffic lights and vehicles commu- wave. Should a stop at a red light be unavoidable, the second nicate directly with each other. To do this, Audi networks function, Time-to-Green, displays a countdown with the many of its vehicles with the infrastructure. After just a seconds remaining until the next green phase begins. Audi Sustainability Report 2019 56 Progress you can feel

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In the cockpit, drivers see not nience for drivers, increase traffic safety, and encourage a only the current foresighted, economical style of driving,” says Andre Hainzl- speed limit but maier, who heads development for Apps, Connected Services also how fast they must drive and Smart City. to reach the green light. But that’s not all: In return, Audi provides the traffic man- agement system with anonymized data. Traffic planners see, for example, whether vehicles have to stop frequently at certain intersections or average waiting times are compar- atively long. As a result, traffic lights can be switched more efficiently and traffic flows better. “Ingolstadt is the first city in Europe in which we are connecting our series-production models with traffic lights. This shows how rigorously the city is investing in a digital traffic infrastructure and how import- ant a close partnership is. The service will help improve traf- fic flows so that everyone in Ingolstadt benefits,” says Achim Heinfling, a plant manager at Audi in Ingolstadt.

In the long term, traffic in all cities worldwide will benefit from this. For instance, in the future, traffic light infor- mation could be linked with smart navigation, and “green waves” could be incorporated into optimum route guid- ance. It is also conceivable that Audi e-tron models will increasingly use braking energy to charge the battery as they slow down when approaching a red traffic light. And, Audi plans to integrate more European cities into the real-time data from traffic management systems, a combina- of course, it would be practical if connected traffic lights smart services in 2020. This is already happening in the US, tion of motion sensor cameras, induction loops in the road, could respond situationally to current traffic density. In where V2I was launched in Las Vegas in 2016. The service bus and streetcar messages and pedestrian crossings; and the not too distant future, young drivers could be asking, is now available at more than 10,000 intersections in North historical data. The forecasting algorithm continuously im- “What was stop-and-go again?” America, with around 2,000 of those in Manhattan in New proves and learns, for example, how vehicle density changes York City and more than 1,600 around the US capital, in the morning during commuter traffic and in the afternoon Washington, D.C. Audi is also the first car manufacturer when kindergartens and schools close. worldwide to connect its series-production models with Requirements for Audi traffic light information‘ traffic lights in cities. Drivers see the information in the Audi virtual cockpit or on Models: Audi e-tron, A4, A5, A6, A7, A8, Q3, Q7, and Q8 the heads-up display and know when the next traffic light manufactured from the middle of 2019 (“2020 model”). This is how it works: Audi and its project partner Traffic Tech- will change to green. This allows them to slow down in good nology Services (TTS) have developed a complex analysis time – which has a positive effect on fuel consumption, CO₂ Equipment package: “Audi connect Navigation & Info- algorithm that uses three sources to calculate accurate fore- emissions and, last but not least, drivers’ stress levels. “With tainment” and “camera-based traffic sign recognition” casts: The respective control program of the traffic lights; Audi traffic light information, we want to improve conve- Audi Sustainability Report 2019 57 Progress you can feel

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Products and Services (Table 1 of 4) The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” and “Employees and Society.”

Goal Measure Date Comparison of SDGs

Reduce CO₂ emissions from the Audi EU new car fleet by 27 Reduce consumption by using new technologies 2020 percent (base year 2012) from the modular efficiency platform

Reduce environmental impact across the entire life cycle Prepare product-based life cycle assessments for new Continuous compared with the predecessor model vehicle models; validate and certify life cycle assessments; development publish the data

Significantly reduce fuel consumption for every new vehicle Switch 70 percent of new vehicles sold with combustion 2022 compared with the predecessor model engines to mild hybridization or plug-in hybridization [8]

Expand the range of electric drive concepts Expand the range of plug-in hybrids 2020 to seven Audi models

Availability of at least one plug-in hybrid in every core 2023 segment from compact class or higher (Audi A3) [9]

Forty percent of new Audi vehicles feature an electric drive 2025 (availability of at least one battery electric vehicle for each core segment)

Extension of the product portfolio to a total of five electric cars 2020 Audi Sustainability Report 2019 58 Progress you can feel

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Products and Services (Table 2 of 4)

Goal Measure Date Comparison of SDGs

Ensure availability of charging systems for private charging Provide competitive charging lineup for electrified Audi models 2020 [10] to coincide with the market introduction of the first fully for domestic charging, including: electric series-production model from Audi – Charging equipment – Smart charging functions, e.g., photovoltaic-optimized charging – Joint projects on home energy management systems (HEMS) – Innovative technologies

Further development of the charging lineup for electrified Audi 2020 models in relation to the smart integration of electric vehicles into power grids to promote the compatibility between electric vehicles and the grid, including piloting of services to network the vehicle with the power grids

Ensure the availability of fast-charging infrastructure along Infrastructure expansion in cooperation with partners, e.g. 2022 the long-distance transport axes in Europe and the USA to IONITY joint venture in Europe and Electrify America in the US, promote long-distance capability of electric vehicles as an incentive for electric vehicles

Extend the charging infrastructure at the Audi sites Set up and operate cross-site charging infrastructure at Audi sites 2022 [12] for the start of production (SOP) of the Audi e-tron; additional needs-based expansion for processes in the plant as well as providing 10% electrified parking lots for company cars and em- ployee leasing vehicles by the middle of 2022 [11]

Conserve resources through new recycling concepts for Development of a recycling process for traction-battery cells 2019 closing material cycles (completed) Audi Sustainability Report 2019 59 Progress you can feel

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Products and Services (Table 3 of 4)

Goal Measure Date Comparison of SDGs

Global protection and responsible handling of personal data Fine-tune the organizational processes to validate privacy Continuous by design, privacy by default development

Expand the range to include fuel cell drive concepts under Continue to develop fuel cell technology, introduce 2022 the Audi h-tron umbrella brand a small series with fuel cells to the market [13]

Roll out fuel cell technology across the Group brands 2026 [14]

Provide carbon-neutral energy sources from renewable Promote the development of synthetic liquid fuels together Continuous energy to reduce greenhouse gas emissions with suitable partners. Additional focus on the technology development readiness of products within AUDI AG [17]

Market introduction of Audi e-fuels and Audi e-power 2019 [15] in addition to Audi e-gas

Extend strategic partnerships and cooperation agreements Continuous regarding research and development of renewable energies development

Integrate a CO₂ capturing plant (capturing CO₂ from the 2021 [16] air) in a power-to-gas or power-to-liquid plant Audi Sustainability Report 2019 60 Progress you can feel

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Products and Services (Table 4 of 4)

Goal Measure Date Comparison of SDGs

Responsibility for the safety of customers and Portfolio of predictive assistance and safety systems Continuous other road users development

Enhance road safety Further development of technologies toward 2025 assisted/automated driving

Develop an attractive mobility portfolio Develop new business models 2022 Audi Sustainability Report 2019 61 Progress you can feel

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Is “clean” industry even possible? Audi Sustainability Report 2019 62 Progress you can feel

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Audi closes circles

Reduce, reuse, recycle, rethink: Not just a single closed circle, but several along Audi is pursuing the vision of a the entire automotive holistic circular economy. Can value chain: Experts at Audi identify and ana- that succeed? In 2019, Audi re- lyze the potential and challenges of the circular searched a number of promising economy approaches – and came to the conclusion that it is heading in the right direction.

Image based on: German Council for Sustainable Development (RNE) in collaboration with Accenture Strategy, 2017, page 16. Audi Sustainability Report 2019 63 Progress you can feel

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Thematic goals of Agenda 2030

hen Dennis Christian the world’s population consuming terial procurement to production Meinen talks about renewable resources faster than and marketing of products, use his work, those lis- they can be regenerated and repro- and reuse,” says Meinen. “We pri- W tening quickly get duced by the earth and its ecosys- marily devoted ourselves in 2019 the feeling that he is trying to tems each year. to analyzing the topic of CE in its “square the circle.” “One of the key entirety and preparing the next The transition to- challenges of this century involves Closing the cycles steps.” Can the effort pay off? This ward an economic and social lifestyle decoupling economic growth from The problem is that an economic too is a frequently debated topic that respects the excessive consumption of resourc- system based on growth and con- among economic experts. Numer- natural limits of our es – while increasing average quali- tinuous and even rising extraction ous discussions highlight the planet can only suc- ty of life and reducing emissions at of primary raw materials cannot be enormous economic potential of ceed if we change our consumer habits the same time.” And before anyone sustained on a planet with finite circularity. According to the Ellen and production can ask, the circular economy (CE) resources. From Audi’s perspective, MacArthur Foundation, net savings technologies. Linear economy expert adds with a smile: “Yes, the circles need to be closed if a solu- of more than 600 billion US dol- question of how to achieve a circu- tion is to be found that does not lars are predicted in the European The present business model lar economy is occupying economic substantially reduce our standard Economic Area (EEA) through mea- of car manufacturers – and experts all over the world. And it of living and enables continued sures such as ecological product likewise of companies in has cost me a few sleepless nights economic growth and improved design, waste avoidance or reuse– other sectors – is based too. But it’s worth it – because at social conditions in developing while reducing greenhouse gas fundamentally in terms of Audi we want to find sustainable countries. In this respect, the par- emissions at the same time. This added value and scope of business models that can be imple- adigm shift away from the linear will only be possible, however, if action on the principle of mented to the ultimate benefit of economic system offers potential all the measures are also actually a linear economic model. all stakeholders.” from both an economic and an eco- implemented. Measures to combat Vehicles are developed and climate change Help in the form of good, new logical and social perspective. must be taken im- produced, delivered to the ideas is vital, since the facts have “Audi’s sustainability strategy Focus on recycling rates mediately. This also customer, and disposed of long since shown that something evaluates and follows diverse ap- There are clear laws on the socially requires contractual at the end of life. Separate is out of balance. The consumption proaches for implementing a circu- important topic of recycling. The compliance, interna- industries have generally tional cooperation, and behavior patterns that have lar system in the automotive value German End-of-Life Vehicle Or- and local commit- built up in the past around prevailed since 1971 have led to chain: from development and ma- dinance, for example, requires ment. recycling and disposal. Audi Sustainability Report 2019 64 Progress you can feel

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New power from old cells Volume of raw materials processed by Audi in since 2015 that, of the average Holistic business models Battery recycling is a fundamen- vehicles in 2019: 2,855,162 t net weight of an end-of-life vehi- In the year under review, Audi an- tal part of sustainable electric cle (ELV), at least 95 percent be alyzed all conceivable CE business mobility for Audi. In the year subject to reuse or recovery rela- models throughout the entire life 0.9% <0.1% under review, Audi successfully tive to the total number of ELVs cycle of the vehicle from social, Electronics Special metals pursued a strategic research 1.3% in a given year. ecological, and economic perspec- partnership for battery recycling. Process polymers In essence then, no part of an tives in order to gain an under- The result: Over 90 percent of ELV is useless. As environmental standing of the full potential of CE. the cobalt and nickel from the awareness increases among many Based on the findings, scenarios 2.6% high-voltage batteries of the consumers – partly due to the rise Non-ferrous metals are currently being discussed, for Audi e-tron can be recovered. in public debate on the subject of example, for how the classic busi- The company is therefore now 3.2% sustainability – the issues of recy- ness model within the meaning of starting another phase and is Other cling and reuse have also increased the CE can soon be extended – to testing a closed loop for cobalt in importance. Audi already has the benefit of all stakeholders. and nickel: Together with a part- 4.7% a number of successful projects According to Meinen, “Direct, ner, Audi is working toward using Operating fluids and under its belt in these areas, for end-to-end product responsibility the raw materials recovered from ancillary materials example the Aluminum Closed throughout the entire product battery recycling in new battery Loop in production (page 65) or life cycle is a basic condition for cells. Audi and Volkswagen are 15.3% the industrial reconditioning of exploiting all the potential in the developing a variety of other Light alloys used components to genuine-part spirit of sustainability.” In addition, concepts for handling used quality. ensuring the environmental com- high-voltage batteries. When Moreover, Audi is an active mem- patibility of the products can also a battery has lost some of its ber of the Global Battery Alliance, enhance the positive image of the charging capacity after years of which aims to establish a sustain- company. “What’s also great about use in a vehicle, it can continue able value chain for batteries, from the CE in my view is that it drives to be used outside of a vehicle, resource mining through to sus- innovation and has the potential to for example. Among the many tainable recycling. encourage further initiatives.” potential applications examined by Audi in this regard, in the year under review the company 18.6% 53.3% investigated using such batter- Polymers and elastomers Steel and ferrous materials ies in forklift trucks and tractor units at the main plant in In- golstadt as well as in stationary energy storage devices at the Percentage of raw materials processed by Audi in EUREF campus in Berlin. vehicles; presentation based on own analyses Audi Sustainability Report 2019 65 Progress you can feel

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Stronger together As a large industrial corporation, Audi is mindful of its responsibility toward so- ciety and the environment – and uses its impact to meet this responsibility along the entire value chain. Safeguarding sustainability standards in the supply chain is just one example of this.

What does consistently sustainable decision-making autonomy and in- cle’s life cycle, Procurement relies mean in terms of sustainability terests. Furthermore, Audi only has on the Audi CO₂ program among standards in the supply chain? “We business relationships with direct others. A recent challenge: The take responsibility for the footprint suppliers, meaning that its direct rigorous electrification of the ve- we leave in and with our supply influence is generally restricted hicle fleet has caused an increased chain. Our goal is for the company to this first tier. However, a large percentage of the CO₂ emissions to avoid a negative impact and to proportion of emissions are not created during the life cycle of the create a positive one wherever pos- primarily produced by the direct car to arise in the supply chain and sible,” explains Marco Philippi, Head suppliers, but rather deeper in the during production. “We estimate of Strategy | Procurement at the supply chain depending on the ma- that, due to electrification, this will Four Rings. “Audi is therefore work- terial and energy intensity of the account for almost one quarter of ing toward improving the carbon processing stage. all CO₂ emissions by 2025,” says footprint of its vehicles even before Philippi. they travel the first few kilometers Pulling together on the road.” “Procurement is active in 152 Great savings potential countries around the globe. We are Lightweight construction with Reducing CO₂ emissions the central interface between AUDI aluminum has been one of Audi’s Reducing CO₂ emissions in the sup- AG and more than 16,000 suppli- greatest strengths for decades. ply chain is one of the action areas ers,” says Marco Philippi. “Both The company has special expertise set out in the corporate strategy individually and in cooperation in handling this material, which and represents a challenging task: with our partners, Procurement can be seen in both the vehicle The supply chain is globally distrib- therefore has enormous influence, itself and in the production of uted, subject to constant change which we want to use in a positive components. Due consideration is and highly complex due to the wide way.” Of global CO₂ emissions given to the topic of sustainability array of process steps and mate- caused by humans, the Volkswagen throughout the different process rials. In addition, it is often not Group is accountable for 1 percent steps. In the 2019 year under re- possible to exert influence quickly, through its passenger cars portfo- view, the Audi CO₂ program in the since suppliers ultimately are inde- lio. To effectively reduce emissions supply chain focused on the use Audi is playing its part in conserving resources with the Aluminum Closed Loop process pendent companies with their own in the production phase of a vehi- of steel and aluminum, since Audi Sustainability Report 2019 66 Progress you can feel

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Involvement of suppliers these materials are especially Closed Loop contributes signifi- energy-intensive to manufacture. cantly toward using resources The Group extends the respon- During more than 30 workshops sparingly – and it proves just how sibility for the environmental conducted with suppliers, over 50 well the circular economy can work. effects of its vehicles to its Thematic goals of measures were developed, which In the 2019 year under review, this Agenda 2030 suppliers throughout the value together identify a savings poten- way alone enabled Audi to save chain. The Volkswagen Group tial of 1.2 metric tons of CO₂ per 150,000 metric tons of CO₂ on bal- has therefore been actively vehicle. Total savings of 300,000 ance. The Ingolstadt plant joined involved in the Carbon Dis- metric tons of CO₂ on balance were the Aluminum Closed Loop process closure Project (CDP) Supply achieved in the 2019 year under in January 2020, and Győr is set to Chain Program (SCP) since review, thanks to the actions taken follow in 2021. 2015 and also received a score by Audi in the supply chain. of A- again for the reporting Cooperation in initiatives year there. This corresponds to At its Neckarsulm site, Audi The work in the deeper tiers of leadership status. In 2019, the demonstrates just how effective the supply chain and beyond con- The goal is to ensure Against the back- Measures must be Group significantly expand- that all people of drop of growing taken immediately close collaboration can be when it tractual relations requires further all ages can live a social and economic to combat climate ed the number of suppliers comes to enhancing sustainability involvement from Audi. The com- healthy life and to inequality, the pro- change and its surveyed as part of the SCP in the supply chain. “To use even pany also achieves this through its promote their motion of equal op- impact. Effective cli- regarding responsibility for less primary aluminum in manufac- cooperation in different initiatives. well-being. portunities helps to mate protection can climate and water to more achieve sustainable only succeed if there turing in future, Audi launched the In terms of aluminum, for exam- economic growth is an appropriately than 280 suppliers. That is Aluminum Closed Loop three years ple, Audi has become a member of and strengthens high level of com- equivalent to more than 79 ago. This ensures that high-grade the Aluminum Stewardship Initia- social cohesion. mitment. percent of production-related aluminum scrap is not sold for prof- tive (ASI). The ASI has developed a procurement spending (exclud- it on the scrap metal market, but global standard for the handling of ing services, VW Brazil, Scania is fed back into the material loop. aluminum, which lays down envi- and joint ventures in China). The recycling rate is almost 100 ronment-related and social criteria According to suppliers’ self- percent,” explains Johanna Klewitz, along the value chain. In 2018, assessments, they reduced Team Leader Sustainability in the Audi became the first car manufac- their overall emissions by a to- Supply Chain at Audi. “Compared turer to receive the Performance tal of 8.05 million tons of CO₂ with primary aluminum, up to 95 Standard certificate from the ASI compared with the previous percent less energy is consumed for its responsible use of aluminum year. The suppliers put the pro- during production.” So, how does for the battery housing on the Sustainable eco- The transformation The core principle portion of renewable electrical this work? Excess aluminum offcuts Audi e-tron.* nomic development toward a form of of Agenda 2030 is energy at 23 percent. Since reconciles social, economic activity and that “nobody must from the press shop in Neckarsulm environmental and lifestyle that respects be left behind.” 2016, the CDP has included are returned directly to the sup- economic goals and the natural limits of Governments, civil science-based targets (SBTs) in plier. The supplier can recycle the For more information about creates dignified our planet can only society and com- the questionnaire: 34 percent scrap and use it to produce new sustainability in the supply chain and work for everyone. succeed if we change panies must work of suppliers that responded supplier management throughout our consumer habits together to imple- material that Audi then uses again the Group as a whole, refer to the and production tech- ment the sustain- have set themselves SBTs or in the press shop. The Aluminum Volkswagen Sustainability Report nologies. ability agenda. intend to do so.

* Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP) combined CO₂ emissions in g/km: 0 Audi Sustainability Report 2019 67 Progress you can feel

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Audi suppliers are committed to sustainability Ad hoc process

Sustainability plays a major role throughout all Volkswagen Group with information in this way. the option of undergoing a repeat evaluation fol- A further aspect of sustainable supply of the divisions at Audi. To ensure that everyone When necessary, the Group also conducts an lowing completion of improvement measures. chain management is the managed han- takes this responsibility seriously, Audi partners additional compliance check. If the SAQ is not The S-Rating helps Audi to meet its responsi- dling of ad hoc disclosures. These are are now also being brought on board. This is satisfactory, an independent sustainability asses- bility toward the environment and society more suspected breaches of the sustainability where the sustainability rating (S-Rating) and its sor visits the company to carry out an inspection effectively. For some time now, the brand with requirements that occur suddenly. The specific actions come into play. relating to areas such as economical use of re- the Four Rings has been preparing its business process of ad hoc case management was sources in production and industrial safety. Such partners and workforce for the rating with infor- revised further and systematized in the Greater sustainability and responsibility an assessor was deployed on behalf of the VW mation and in events and workshops. A total of year under review. “Our goal is to pursue a path toward greater sus- Group 1,331 times in 2019. Follow-up checks are 99.9 percent of all Audi procurers completed the The breaches that lead to opening an ad- tainability and responsibility together with our subsequently performed to ascertain whether web-based training on the topic of “S-Rating” in hoc case can, for example, be uncovered suppliers in a spirit of partnership,” says Johanna the deficiencies identified by the sustainability the year under review. through information from third parties Klewitz, Team Leader Sustainability in the Supply assessor are actually being rectified. At the end The sustainability self-assessment calls for or employees in the supplier businesses. Chain at Audi. “That is why Audi introduced its of an S-Rating process, a supplier is assigned a guidelines and management systems, for example, In such a case, the relevant ad hoc expert sustainability rating in 2017. This sustainability status of either “can be awarded a contract” or which govern the corporate practices of our busi- team of the relevant brand or region coor- rating, also known as the S-Rating, has been “cannot be awarded a contract.” There are no ness partners. To ensure that this does not cause dinates the implementation of a catalog of mandatory throughout the Volkswagen Group gray areas. In other words, price is not the only any bureaucratic obstacles, Audi began in the year measures with the support of the Group since July 1, 2019. The sustainability rating is decisive factor in awarding contracts. under review to offer “Sustainability Talks” for ad hoc expert team, once a plausibility a mandatory criterion for awarding contracts Audi sets high standards for issues such as cor- companies employing between 50 and a maximum check has been performed by the Group. to suppliers of production materials as well as porate ethics, sustainability and environmental of up to 500 people. These involved workshops in If Audi determines that suppliers or for relevant suppliers in general procurement. protection. Audi also expects this from its suppli- which external specialists demonstrated best prac- sub-suppliers are failing to meet sustain- Within the contract awarding process, the sus- ers. If they are to work together as partners, the tice approaches, which help participants to draw ability requirements in such a case, the tainability rating is on a par with other import- two sides need to share the same values and am- up neat and effective sustainability guidelines. Fif- company asks suppliers to provide a written ant criteria such as cost, quality, technological bitions. Integrity and social aspects, such as cor- ty-five percent of the suppliers who received train- statement based on a standardized report. expertise and logistics. Johanna Klewitz: “We ruption prevention and a safe and healthy work- ing were able to improve their S-Rating following In the Volkswagen Group during the re- are convinced that our suppliers play a key role ing environment, are just a couple of examples. participation in the “Sustainability Talks.” porting period, Group Internal Audit agreed in the success of the company in the matter of The topic of preventing and disposing of waste on measures with suppliers in addition to sustainability. For this reason, we only want to properly is also addressed. Companies need to Impact through coverage and relevance 27 ad hoc cases that were processed by collaborate with partners that share our values. draw up official guidelines in this respect, anchor Audi is currently collaborating with OEMs (origi- Procurement. This concerned suppliers Together with our direct business partners, we them in their corporate conduct and communi- nal equipment manufacturers) and suppliers on a where behavior contravening the rules or require that these values are embodied in the cate them to their employees so that they are common standard for on-site checks, which aims contracts was identified as a result of infor- deeper tiers of the supply chain, too.” put into practice every day. to avoid duplication and achieve broader coverage mation provided or audits carried out. The of the supply chain. This work is being under- collaboration was ended or suppliers were The sustainability rating and its impact Working together and not against each other taken as part of a working group of the German blocked for new awards of contracts in the A self-assessment questionnaire (SAQ) standard- The main objective of the S-Rating is not to ex- Association of the Automotive Industry or VDA case of a total of 17 suppliers due to the ac- ized for the automotive industry gives Audi infor- clude suppliers, but more so to enable suppliers (Verband der Automobilindustrie e. V.). The plan tivities of Procurement and Internal Audit. mation about sustainable operations with regard to improve their performance if it is not satis- is that, from 2020 onward, suppliers will only to social and environmental aspects and corpo- factory. This is the only way in which positive have to be audited once; the results can then be For further information on dealing with rate ethics at the respective suppliers. In 2019, impacts on people and the environment can be shared with all participating business partners via ad hoc cases and other key figures on the topic, a total of 12,646 suppliers already provided the achieved. With this in mind, every supplier has a central platform. refer to the Volkswagen Sustainability Report Audi Sustainability Report 2019 68 Progress you can feel

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We see it as our duty Using new technologies to Audi not only lives up to its responsibility chain together with other partners. In Responsible sourcing of raw materials improve the sustainability in its relationship with its direct busi- line with the requirements of a risk-based The most relevant hot spot at present of supply chains ness partners. The company also aims to approach, Audi concentrates its measures concerns battery materials, particularly establish this sense of responsibility to- on the supply chains that are associated cobalt. In close collaboration with the gether with its partners along the entire with particularly high risks for negative battery cell suppliers, the Volkswagen AUDI AG intends to use supply chain. impacts according to its analyses. Among Group is pursuing the objective of creating new technologies also to the significant challenges facing electric complete supply chain transparency from further increase trans- Clear rules for business with partners mobility is the sustainable extraction of mining the raw materials to manufactur- parency and traceability Sustainability requirements in the supply the required raw materials. ing the finished product. in the supply chains. For chain are firmly embedded the “Volk- Yet what does this mean in practice and The way the company organizes the re- this reason, the Group swagen Group requirements regarding how does it work? “The topic is multifac- sponsible sourcing of raw materials is driv- is currently piloting the sustainability in its relationships with eted,” explains Marco Philippi. “Our goal en by the requirements of the OECD Due use of blockchain tech- business partners” (Code of Conduct is to only use raw materials that have Diligence Guidance for Responsible Supply nology, among others, in for business partners). They are based, been mined under humane and sustain- Chains of Minerals from Conflict-Affected global and complex sup- among other things, on the OECD Guide- able conditions. When we consider that and High-Risk Areas. This contains guide- ply chains. For example, lines for Multinational Enterprises, the an Audi is made up of around 1,600 kg of lines for management approaches, for risk this will allow greater UN Guiding Principles on Business and different raw materials on average, then identification and prevention, for checking insight into the prove- Human Rights and the relevant conven- it is clear that we are facing an enormous smelters and for communication and re- nance of cobalt used in tions of the International Labor Orga- challenge in terms of sustainability.” The porting instruments. lithium-ion batteries for nization (ILO). The Code of Conduct is, supply chains at Audi can be long and The work in the deeper tiers of the supply electric vehicles. Other however, not just based on international widely distributed. chain and beyond contractual relations minerals used in vehi- standards, but also on objectives, rules Some raw materials undergo nine requires further effort from Audi, for cle production can also and policies of the Volkswagen Group. The stages before they come into direct con- example through involvement in industry- be tracked in this way. Code of Conduct describes the goals and tact with the Group. Marco Philippi: “We wide initiatives. Audi has been an active Responsible sourcing of principles of cooperation with partners as generally only have a contractual relation- member of the Global Battery Alliance raw materials is a funda- well as the scope of application and va- ship with the direct supplier. This makes it since 2017. This addresses the protection mental requirement for lidity of the regulations. In addition, the extremely difficult to ensure compliance of human rights and upholding of social enabling sustainable mo- different reporting options and contact with all environmental and social stan- standards in the extraction of the raw bility. The pilot projects points for misconduct are also included. dards at every stage. Added to this, materials for batteries as well as develop- are the start of a com- supply chains change frequently: com- ing solutions for the reuse of lithium-ion prehensive development Duty of due diligence for human rights panies leave, other providers take their batteries. It is also planned to audit the to create more transpar- Respecting and protecting human rights place. This makes it extremely difficult sustainability performance of the mines in ency and security in the is of the utmost priority for Audi. The to maintain a current picture of the the supply chain in the medium term. At supply chain. company is guided by international re- entire supply chain at all times.” Audi the start of 2019, Volkswagen therefore quirements in this respect, is involved has therefore chosen what is referred joined the CERA (Certification of Raw For more information on the in various initiatives, and thereby cam- to as a hot-spot approach to comply Materials) project, which has committed topics of raw materials and com- paigns for the preservation of human with its due diligence requirements in itself to developing such a standard and mitment, refer to the Volkswagen and environmental rights in the supply the raw material supply chain. will test this on selected raw materials. Sustainability Report Audi Sustainability Report 2019 69 Progress you can feel

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Environmental management at Audi MISSION: Audi analyzes environ- mental aspects of its worldwide factory net- Scarcity of resources, environmental pollution, and climate change work in great depth – are among the major challenges of our time. Audi is making a sus- after all, reliable fig- tainable contribution to the corporate strategy “consistently Audi” ures are essential for The four action with its Mission: Zero environmental program. documenting progress areas and their toward sustainable objectives production. In addition to emis- CO₂ sions, Audi looks at 1 Decarbonization Audi sites will become On the road to consistently sustainable production other site-based envi- carbon-neutral on The company is in no doubt: Economic success and environ- ronmental aspects of balance by 2025. mental protection are inextricably linked. The Mission:Zero operational value cre- program therefore focuses on the four action areas of decar- ation. Turn to page 72 bonization, water usage, resource efficiency, and biodiversity. to read about the back- The Sustainable Development Goals (SDGs) of the United ground to the scope of Nations act as a guiding principle for the program along with the key figures and the 2 Water usage the environmental mission statement of the Volkswagen Group-wide accounting Closed water cycles and wastewater-free Group. method. production sites. In terms of the ecological transformation of Audi’s world- wide sites, production and logistics, this means that Audi is transforming itself from a car manufacturer to a provider of carbon-neutral premium mobility. All Audi sites will become carbon-neutral on balance by 2025. In addition, Audi is fo- 3 Resource efficiency Circular economy and cusing on the efficiency of its processes and water cycles at effective and efficient its production sites in the face of growing water scarcity and use of raw materials. declining drinking water quality in industrialized regions.

Helping preserve biological diversity Audi not only strives for effective and efficient use and recy- cling of raw materials in production, the company also plays 4 Biodiversity its part in countering the increasing consumption of land Projects for protect- around the world. Moreover, Audi is conducting biodiversity ing and preserving biological diversity at projects at all of its sites to play its part in helping preserve all Audi sites. biological diversity. Audi Sustainability Report 2019 70 Progress you can feel

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Taking responsibility

Environmental protection at its production sites plays a decisive role in Audi’s Sustainability Roadmap. The most important flagship projects in the four main action areas of Mission:Zero are outlined here:

Győr Water usage

Brussels Audi uses efficient processes and a water cy- cle at its production sites for the sustainable production of its cars. The San José Chiapa site in Mexico is an example of a flagship Decarbonization project where Audi produces cars almost completely free of wastewater, the first pre- Audi intends to operate all sites with a hall roofs. The second pillar is the use of mium manufacturer to do so worldwide. A carbon-neutral footprint by 2025 to meet renewable energies to supply heat to the water treatment plant collects 100 percent its goal of offering fully carbon-neutral site, also to heat the offices. The plant Ingolstadt of the wastewater generated here, cleans it, premium mobility. Since 2018, the Audi covers this heating demand by means and feeds large quantities back into the wa- plant in Brussels has served as a role of biogas certificates. Other emissions ter cycle at the plant. model – as the world’s first certified car- that are generated, for example from the Audi achieved another milestone on the bon-neutral volume production plant in operation of company vehicles, are offset road toward consistently sustainable pro- the premium segment. by Audi Brussels through carbon credit duction of cars at its plant in Ingolstadt, All production processes as well as all projects. where the company commissioned a new other emissions generated at the plant Győr in Hungary will become the second process water supply center in 2019. To- are covered by the site either through Audi site to operate with net-zero carbon San José gether with the former treatment plant, renewable energies (around 95 percent) emissions in 2020. This is made possible, Chiapa a large proportion of the wastewater gen- or through global environmental projects for example, by a geothermal system for erated at the site can be fed into a cycle to offset the emissions. The Belgian site heat supply and Europe’s largest photo- and treated for reuse, thus saving up to focuses on three main pillars. The first voltaic roof system, which is installed at 300,000 cubic meters of fresh water each pillar is the switch to green electricity. the two logistics centers at the Hungari- year. The centerpiece of the process water The largest photovoltaic system in the re- an site. It has a surface area of 160,000 supply center is the membrane bioreactor gion is installed over a total surface area square meters and peak output of 12 as a core element of a three-stage water of 89,000 square meters on the plant’s megawatts. treatment process. Audi Sustainability Report 2019 71 Progress you can feel

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Ingolstadt Brussels

Neuburg Neckarsulm Resource Győr efficiency Ingolstadt

Natural resources are important production San José factors and a basis for industrial added Chiapa value. Audi wants to use resources even more effectively and efficiently and is con- tinuously developing its recycling exper- tise – and is also adopting an innovative approach when it comes to “land” as a Biodiversity on the resource. No new soil sealing: A good example plant premises of this is the construction of the new IN-Campus technology site in Ingolstadt. Loss of biodiversity is one of the greatest wood, among others, have been integrat- Specialized teams are working on reme- challenges alongside climate change. Audi is ed into the terrain at the Neuburg site. diating a 75-hectare brownfield site on committed to preserving biodiversity and thus Creating good habitats: Seed mixtures behalf of IN-Campus GmbH, a joint ven- joined the “Biodiversity in Good Company” with more than 35 flower species were ture of AUDI AG and the city of Ingolstadt. initiative in 2015. planted on a number of former lawns at The project is due for completion by the A very large biodiversity project can be the Audi site in Neckarsulm to create hab- end of 2022. The pollutants in the soil, witnessed on the Audi plant premises in itats and food sources for insects. groundwater and soil vapor arising from Münchsmünster near Ingolstadt, where Low-yield pastures with native plant spe- its former use as a refinery site have to Audi has turned 17 hectares of the total cies were sown at Audi in Brussels. be removed. The good news for the envi- 31-hectare site over to nature. To date more The company created a green belt around ronment is that no new surfaces will be than 110 plant species have flourished there the plant at San José Chiapa in Mexico and sealed with the IN-Campus development. and more than 90 species of wild bees have planted more than 100,000 trees over a IN-Campus GmbH will use 60 hectares found a new habitat. Low-yield pasture as surface area of 100 hectares in the neigh- subsequently as a commercial and indus- well as herbaceous perennial and woody boring community of San José Ozumba. trial park, while 15 hectares of the total plants are just some examples of what can A Pannonian steppe area typical of the re- surface area will be restored and designed be found in the biotope-like expanse. Sand gion can be found at the Audi premises in accordance with biodiversity criteria. heaps, insect hotels, and areas with dead in Győr (Hungary). Audi Sustainability Report 2019 72 Progress you can feel

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Background: Environmental management in the Audi Group Audi carefully analyzes the envi- environmental protection bodies AUDI AG is currently working with Less is more ronmental aspects in its worldwide of the Volkswagen Group. It de- Volkswagen Group Logistics to manufacturing network – with the velops overarching and strategic develop a uniform accounting vision of building its cars in carbon- regulations and implements method to determine the CO₂ neutral plants by 2025. Along with these in practice. emissions of logistics operations. emissions, Audi looks at all other Environmental protection at the The Group-wide accounting meth- Audi works continuously on reducing its energy con- site-based environmental aspects sites comes under the responsibil- od has been developed in accor- [106] sumption and emissions . In terms of both prod- of operational value creation. ity of the individual environmental dance with DIN EN 16258 and ucts and site-based environmental activities, the focus The basis of environmentally protection officers. the Greenhouse Gas Protocol. The is on reducing energy consumption and the associated compatible production at Audi CO₂ emissions are evaluated using emissions in production. is the environmental and energy Scope of the key figures impact factors such as distance, management systems that the Unless otherwise indicated, the payload, equipment, and capacity In addition to the ongoing optimization of processes, company has gradually introduced environmental key figures are utilization. Audi also places particular focus on energy-saving mea- since 1995. The environmental determined on the basis of The scope of the environmental sures when planning production and supply facilities as management system of the Eu- Volkswagen standard 98000. This key figures relates to the pro- well as buildings. The company’s activities also concen- ropean Union, EMAS (Eco-Man- standard defines how operational duction sites of the Audi Group. trate on generating energy from renewable sources and agement and Audit Scheme), is environmental data is to be de- Unless otherwise indicated, improving energy efficiency. installed at almost all European termined within the Volkswagen these are the following plants: car plants of the Audi Group. Six Group and its subsidiaries. The aim Ingolstadt, Münchsmünster, Audi sites in Germany and seven is to collect and document all en- Neckarsulm, Brussels, Győr, San internationally have management vironmentally relevant data from José Chiapa, Sant’Agata Bolognese systems accredited according to all the plants in a comparable (Lamborghini), Bologna (Ducati) DIN EN ISO 14001[117] or DIN EN manner. The environmental data is and Amphur Pluakdaeng (Ducati). ISO 50001.[117] primarily based on measurements Only car-producing sites including Energy intensity of Audi Group [in MWh/veh.] The Board of Management and calculations. Qualified esti- component manufacturing are defines the environmental poli- mates or projections are used only considered for the specific key 2017 2018 2019 cy, which is binding for AUDI AG in exceptional cases. The environ- figures. In addition to the envi- sites. Its requirements are re- mental key figures for the respec- ronmental data of the Audi Group Energy intensity [116] 2.65 2.69 2.67 viewed periodically and amended tive current year are provisional (including Ducati motorcycle pro- as necessary. data, which are replaced by the duction at Bologna and Amphur It applies to all products, final result in the following year. Pluakdaeng), the environmental services and activities, and is The values for 2019 are provi- data of the car production loca- The energy intensity of the Group relating to automotive implemented at all levels of the sional in this report. The values tions (Ingolstadt, Münchsmün- production including component manufacturing was 2.67 company. The Environmental Pro- for 2018 are year-end figures: ster, Neckarsulm, Brussels, Győr, MWh/veh. for the year under review. tection organizational unit coor- This explains any deviations from and Sant’Agata Bolognese sites; As part of energy management, various measures are dinates the Audi Group’s activities the figures for 2018 listed in the including San José Chiapa) is also implemented at the individual sites to secure continuous in the area of ecology and is the Sustainability Report 2018, which shown separately for better com- improvement in energy efficiency. central contact for the respective were provisional at the time. prehensibility. Audi Sustainability Report 2019 73 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Energy consumption within the Group Direct (SCOPE 1) and indirect (SCOPE 2) CO₂-equivalent savings in in total/by type (in MWh) [107] Greenhouse gas emissions by the Audi Group (in metric tons) logistics (in t) [111]

from renewable energy sources (in percent) 2017 2018 2019 13,712 13,571 13,525 Total CO₂ 727,294 619,140 572,804 emissions

34.2 41.1 49 Direct CO₂ emissions 246,276 202,031 198,418 (Scope 1) [108] 2017 2018 2019 Indirect CO₂ emissions 481,018 417,110 374,386 2017 2018 2019 (Scope 2)

A total of 572,804 metric tons of CO₂ were emitted through- 2,920,739 2,775,442 2,677,678 out the Audi Group in 2019. This represents a reduction of 7.48 percent on the previous year.

Total fuel use (in MWh)

2017 1,202,130 In the 2019 year under review, Audi recorded no major 2018 1,092,974 change in general in the total reduction in emissions in Intensity of greenhouse gas emissions (in kg/veh.) the area of logistics from the “green train” with DB Car- 1,066,205 go. However, there were deviations in both directions. An 2019 2017 2018 2019 increase in emissions savings is primarily attributable to Intensity quotients for 660 601 573 the relocation of production of the A3 Sedan from Győr greenhouse gas emissions to Ingolstadt, among other reasons because this resulted In the year under review, absolute energy consumption (Scope 1 and Scope 2) in additional transportation of bodies from Hungary to within the organization amounted to 2,677,678 MWh. Germany. Counteracting this was a reduction in emissions Compared with the previous year (2018: 2,775,442 savings at the Brussels, Ingolstadt, and Neckarsulm MWh), this represents a reduction of around 3.52 percent. The intensity of greenhouse gas emissions relating to auto- plants. The main reason is the sharp-reduction in capacity motive production including component manufacturing was utilization of the production locations, leading to reduced 572.99 kg/veh. for the year under review. material and FBU (Fully Built Up) transport. In order to work systematically on cutting greenhouse gas emissions, The reduction in intensity is due, among other reasons, to the Audi has been part of the CDP Supply Chain Program via purchase of green electricity in Neckarsulm and Győr. Since the Volkswagen Group since 2015. Through this program, January 1, 2020, 100 percent of the electricity taken from the greenhouse gas emissions are recorded along the entire grid by all Audi sites is green electricity. value chain. Audi Sustainability Report 2019 74 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Other air emissions (in t) Total volume of water discharge by destination (in m³) Total weight of waste by disposal method (in t) 2017 2018 2019 2017 2018 2019 NOx emissions [110] 235 202 191 Disposable waste Total volume of waste Volume of 2,258,579 2,382,498 1,866,952 (excluding scrap): wastewater Recyclable waste Sulfur dioxide (SO₂) 1.93 2.14 2.06 Metallic waste (scrap)

[109] VOC emissions 1,425 1,081 916 Audi meets all statutory requirements on monitoring and permit conditions with regard to wastewater discharges. If Total dust (PM) 37 58 41 necessary, wastewater is pretreated or discharged directly into public sewerage systems. 363,643 As well as the CO₂ emissions at the production locations, Audi measures other emissions that are generated by painting work, Recycling waste 345,827 by the operation of test rigs, or by existing power generating Audi closes material loops where possible in order to reduce facilities, for example. The reduction in emissions can be ex- waste. Group-wide, a total of 107,389 metric tons of waste 320,841 plained by a lower production figure since less vehicle surface (excluding scrap) were generated in the year under review. Year was painted (VOC and PM). on year, the total volume of waste only increased marginally by 0.29 percent.

Audi was able to further increase the proportion of recyclable waste Group-wide in the year under review, while reducing the proportion of disposable waste substantially. One of the main 3 Freshwater consumption in the Group (in m ) reasons for this is the paint shop, where a large proportion of the rinsing agents are recycled. 2017 2018 2019 10,773 7,405 3,784 Total freshwater 4,207,671 4,159,236 3,428,952 Audi is aware of the various conditions and local statutory consumption requirements concerning the recycling of hazardous waste (2019: 40,683 t) and complies with them.

A major issue within Audi’s environmental policy is the No major discharges of chemicals, oils, or wastes to the envi- efficient use of natural resources such as water. In 2019, ronment occurred during the reporting period. the Audi Group reduced water consumption significantly in

comparison with previous years. One of the main reasons for More detailed figures for all topics are 99,192 109,965 99,674 107,079 103,606 107,389 this was the commissioning of a membrane bioreactor at the provided in the data appendix. Ingolstadt plant.

2017 2018 2019 Audi Sustainability Report 2019 75 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Emissions sources at Audi CO2 CH4 N2O HFCs PFCs SFs

SITES

Business trips Handling of sold Lessee goods at their Lessor Scope 2 Waste end of life / Indirect produced Company facilities

Purchased electricity, steam Transport Use of heating, and cooling for and distribution Processing of sold goods own use sold goods

Fleet Purchased goods Fuel and Employee and services Capital energy-related commuting Transport and goods emissions distribution Investments Franchises

Scope 3 / Indirect / upstream activities Scope 1 / Direct / reporting company Scope 3 / Indirect / downstream activities

Activities along a company’s entire value chain

The Kyoto protocol – United Nations Framework Scopes are emissions categories de- Scope 2 emissions are produced, for A distinction is made in Scope 3 be- to-gate). Business trips and waste Convention on Climate Change – lists six greenhouse fined by the Greenhouse Gas Protocol. example, from energy sources pur- tween upstream and downstream produced are also included in this scope gases: Carbon dioxide (CO₂), methane (CH₄), and Scope 1 covers direct emissions from chased externally and consumed by the activities. Upstream activities relate, category. Downstream activities include, nitrous oxide (N₂O), as well as the fluorinated green- combustion processes of stationary company: These are indirect emissions for example, to emissions generated on for example, emissions from transport- house gases (F-gases): hydrogen-containing fluoro- and mobile systems, emissions from from purchased electricity and district the supplier side (from manufacturing ing products sold and those generated carbons (HFC), perfluorinated hydrocarbons (PFC), processes, and emissions from vola- heating/cooling systems, and from pur- the product from raw materials up to by the end customer in the use phase of and sulfur hexafluoride (SF₆) tile gases. chased steam. the point of delivery to Audi (cradle- sold goods.

Source: GHG Protocol / klimareporting.de / Audi Audi Sustainability Report 2019 76 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

A total of 92 inline measuring stations with 412 sensors are operated in Ingolstadt by the body shop in collaboration with the Analysis Center’s measurement technology unit. Some 1,000 measuring points are recorded for each vehicle model. A measuring point is a defined position on the vehicle at which the body or component is measured in order to determine compliance with default set values and to identify any changes. “We generate vast amounts of data every day with our mea- surements – about three million records per day,” explains Hof- meister. “We would scarcely be able to monitor this enormous quantity of data completely manually. This is where K-PoWa comes into play. At Audi we use this tool to demonstrate what Industry 4.0 means and how big data can help all of us.”

Use of big data Humans and machinery generate immense volumes of data in Audi production – with a steeply rising tendency. This data contains a wide array of valuable information and cor- relations. For production, big data ultimately means a shift toward data-led and therefore highly flexible, but also highly efficient production. This is because the targeted merging, Experts in quality and big data (from left to right): Dirk Zitterell processing and evaluation of data delivers substantial val- (Data Scientist), Hans-Jürgen Schweiniger (IT Quality Management) ue added for sustainable production. Designing effective and Rudolf Reinhard (Data Scientist) processes and avoiding errors ensures that resources and materials are used sparingly and efficiently, while optimized The perfectly uniform gap dimensions on every Audi can also production processes also ease the burden on employees. be attributed to the work of analysis measurement engineer Ralf Hofmeister and his colleagues Dirk Zitterell and Rudolf Re- Using data correctly Precision inhard from the Audi Production Lab. “Our tool ‘Karosseriebau – The body shop’s ability to generate three million records is Prozessorientierte Wirkkettenanalyse’ or ‘K-PoWa’ is for pro- naturally only the beginning. The important thing is to de- counts cess-driven event chain analysis in body construction,” says Ralf cide: “How can we use the data to respond to questions that Hofmeister. “It answers the questions: Are there anomalies in arise in the specialist area’s business process?” says data sci- the production process in relation to the vehicle geometry, and entist Dirk Zitterell. He and Rudolf Reinhard work in the Audi When a new Audi leaves production and travels the first what impact do they have on the overall result or how do they Production Lab (P-Lab), which supports the creation of many few meters on its own four wheels, it is clear on first glance affect each other? By using state-of-the-art techniques from new technologies for production. “In the context of technol- to anyone watching that everything about this vehicle is data science such as anomaly detection, we can perform fully ogy development, we collaborate with colleagues from the harmonious. And on second glance? Yes. And third? Yes automated statistical process monitoring of the measurement Production division to develop tools for data analysis in pro- again. And fourth ...? Even if a magnifying glass were used. series.” For this purpose, 100 percent of vehicle bodies and duction or planning that are at the cutting edge of research Every vehicle body is flawless. their subgroups are measured by Audi at the Ingolstadt plant. and technology,” says Rudolf Reinhard. “The lab acts as an Audi Sustainability Report 2019 77 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

interface between innovation and series production, and What is a hackathon? 1,200 provides targeted support for employees and planners in Audi uses hackathons to drive inno- production.” vation in a targeted way. The term patents were registered by Audi is coined from the words “hack” and in the 2019 year under review. Working with agile methods, the K-PoWa team had the chal- “marathon" and describes a collabo- lenge of developing a technical analysis tool that records and rative software or hardware develop- The number of patents is a good visually presents relationships in the data records fully and ment event. indicator of ability to innovate and quantitatively. Initial solution approaches were demonstrat- The goal of this collaborative gath- innovation management. When it ed during the Audi Smart Factory Hackathon. Meanwhile, ering is always to produce useful and comes to innovation, Audi has been the project is now being developed progressively by a project creative software products within a setting records for years. team consisting of employees from P-Lab, the body shop, short period of time – sometimes The company registered more the Analysis Center and IT. “As a premium carmaker, we set even during the course of an event – in than 1,200 patents in the 2019 year ourselves very high standards. This project is also a good ex- order to find solutions for given chal- under review. In the area of auton- ample of this,” explains data scientist Rudolf Reinhard, and lenges and specific use cases. omous driving, for example, Audi adds: “Our preventive measurement technology also con- came out on top in recent years in tributes to greater sustainability in production: It is efficient ABI: Business innovations at Audi studies of car manufacturers con- with respect to reworking costs, effort, and time. In terms of Audi Business Innovation GmbH (ABI), ducted by the German Patent Office our life cycle assessment, energy consumption is falling and a 100 percent subsidiary of Audi, is and the European Patent Office. there is less waste.” also a driver of innovation. ABI’s goal is to find answers to current and fu- ture customer problems efficiently Click here to find the studies by Audi also benefits from the ingenuity of its the German Patent Office and the employees. The most important figures from and sustainably and in this way shape European Patent Office. the Audi Ideas Program are on page 90 tomorrow’s digital business models. As one of four business areas, the Busi- ness Innovations division bundles the competencies Service Design, Business Peter Stechel (Head of the Analy- Design, and Project Management. sis Center, left), One of the key focal points is busi- Ralf Hofmeister ness model development in relation (Head of the tech- nical center for to energy and sustainability. ABI body measurement develops product ideas together with technology), and customers in different Group projects Thomas Reeb (Head of measure- and validates them in terms of will- ment technology, ingness to pay and market require- right) examine ments as well as potential take rates. sensors on an inline measuring For this purpose, the company also station at the regularly conducts interviews with Ingolstadt plant. fleet managers or tests digital prod- ucts and services with customers. Audi Sustainability Report 2019 78 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Value Creation and Production (Table 1 of 4) The Audi sustainability program combines strategic goals in the area of sustainability with specific measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production,” and “Employees and Society.”

Goal Measure Date Comparison of SDGs

Integrate sustainability into supplier relationships Training for all procurement employees to raise awareness Continuous of sustainability standards in supplier relationships development

Training for all suppliers to raise awareness of Continuous sustainability standards in the supply chain development

Introduction of a sustainability rating (S-Rating) 2019 from mid-2019 with relevant first-tier suppliers (completed)

Sustainability rating (S-Rating) as a mandatory Continuous criterion for awarding contracts development

Involvement in industry standards and Group tools to Continuous ensure compliance with environment-related and social development standards in the supply chain Audi Sustainability Report 2019 79 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Value Creation and Production (Table 2 of 4)

Goal Measure Date Comparison of SDGs

Integrate sustainability into the supply of raw materials Development of circular economy concepts for the supply chain 2020 (focus: aluminum and HV battery)

Adaptation of existing processes through successive Continuous implementation of human rights duty of care for critical development raw materials in the supply chain

Successive decarbonization of the supply chain Performance of CO₂ workshops with selected hotspot Continuous together with suppliers [113] suppliers to identify measures with potential to reduce development CO₂ emissions [114]

Rollout of the Aluminum Closed Loop in other plants 2025

Anchoring the use of green electricity in the supply chain Continuous development Audi Sustainability Report 2019 80 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Value Creation and Production (Table 3 of 4)

Goal Measure Date Comparison of SDGs

Involvement of Sales in implementing Completion of a sustainable conference building (Audi Brand 2019 Audi’s sustainability strategy Center) at Munich Airport with an integrated photovoltaic system (completed) to generate electricity, ultra-efficient building technology, geothermal building cooling and heating, along with the use of sustainable building components Commissioning of an electric charging station at Munich Airport 2019 with six charging points (two rapid-charging stations, four stan- (completed) dard-charging stations), supported by second-life-battery buffer storage devices. Reuse of the e-tron meteorite as a building for the electric charging station supplemented by sustainable materials Reduction in disposable waste, freshwater consumption, Detailed planning and implementation of site-specific packages 2019 CO₂ and VOC emissions, as well as overall energy of measures for achieving Group-wide reduction targets (completed) consumption at the production sites by 25 percent per reference unit (base year 2010)

For the German sites Ingolstadt and Neckarsulm, we have Detailed planning and implementation of site-specific packages 2020 set ourselves a reduction target of 40 percent for CO₂ per of measures for achieving Group-wide reduction targets reference unit through 2020 as part of energy supply (base year 2010)

Achievement of the target figure for the environmental Detailed planning and implementation of site-specific packages 2025 impact reduction production per unit (UEP) of 35 percent. of measures for achieving Group-wide reduction targets The environmental impact reduction production is a vehi- cle-specific variable. From 2010 through 2025, the devel- opment of the five key figures is analyzed: CO₂ emissions, overall energy consumption, disposable waste, fresh water consumption and VOC emissions. Audi Sustainability Report 2019 81 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Value Creation and Production (Table 4 of 4)

Goal Measure Date Comparison of SDGs

Expansion and development of measures for reducing Realization of water recycling at the Ingolstadt site using a mem- 2019 freshwater consumption at national and international sites brane bioreactor; reduction target for freshwater requirements: (completed) 30 percent [115]

Systematic reduction in energy consumption Reduction in overall energy consumption through targets Continuous derived from prior-year consumption and the corresponding development concrete, implemented and documented individual measures in the operator and planning areas

All plants CO₂-neutral Detailed planning and implementation of site-specific packages 2025 of measures for achieving targets

Implementation of the performance standard/chain of Verification of the ASI performance criteria and implementation 2021 custody of the Aluminum Stewardship Initiative (ASI) of the necessary audit to renew the ASI certification of the alumi- num components in the Audi e-tron high-voltage storage device

Extension of the ASI performance standard/chain of custody Continuous to include other aluminum components and production sites development of AUDI AG

Integration of sustainability in the supplier chain and own Development of sustainability principles and support of the Continuous added value of high-voltage storage devices at Audi establishment of standards for high-voltage batteries in the development working groups “Circular Economy” and “Innovation” of the Global Battery Alliance, hosted by the World Economic Forum Audi Sustainability Report 2019 82 Progress you can feel

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Is good work good for everyone?

* Audi e-tron: Combined power consumption in kWh/100 km: 23.9–20.6 (NEDC); 26.3–21.6 (WLTP), combined CO2 emissions in g/km: 0 Audi Sustainability Report 2019 83 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY Audi embraces diversity Equal opportunity for everyone: Diverse backgrounds, competencies and skills are what make success possible in the first place. Audi aims to ensure that its employees can optimally unleash their potential – at every level, regardless of cultural background or other characteristics. How well are the Four Rings doing in this regard? Five employees share their experiences:

Gertraud Grünwald 62, Head of Works Council Service

“Different generations can learn so much from each other in our day-to-day work. And I don’t just mean younger employees benefiting from Roland Degmair the experience of older ones. It also works the other way around: Young people are often 52, Media Design specialist more willing to question established practices “The most important thing in a diverse workplace – and I find that very inspiring. Personally, I’ve is good communication. We should be able to con- been with the Company since 1974, and for verse in depth and ask questions without fear. And the past 14 years my staff on theWorks Coun- we should serve as interpreters, mediating between cil Service and I have been meeting the needs those who speak different languages. That’s my job of Audi employees who have problems due to at Audi as a media specialist. In 2017, for example, I illness. That’s how I know that a personal con- acted as a mediator and co-founded the queer@audi versation can be more effective than twenty network. Today, this network includes more than 100 e-mails. Of course, I am already thinking about employees who feel it is important that people of all the third phase of my life – my own retirement. gender identities and sexual orientations feel com- But until then, I’ll continue to enjoy the diver- fortable here. I’m proud that Audi has taken a clear sity of my work at Audi, which presents me stand on this issue, both internally and externally.” with new challenges every day.” Audi Sustainability Report 2019 84 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Thomas Hauser Tiziana Ruiu 52, IT project manager 36, fuel cell development engineer “People who fight for diversity and the future Thematic goals “I’m used to adjusting to changes. I grew of Agenda 2030 should never give up too soon. Sometimes you have up in Sardinia, but traveled 800 kilome- to keep going even when all you want is to throw in ters to Turin for my master’s degree. Then the towel. For instance, when I was young I really I earned a doctorate in chemistry, but I wanted to take up a skilled trade. Then, at the age soon realized I wouldn’t be able to find a of 15, I lost my left forearm in an accident and it suitable job in Italy. So in 2012, I moved seemed like my dream was impossible. But now I to Stuttgart, where I worked for the Ger- can say that this difficult situation has made me man Aerospace Center – until I joined Audi even stronger. First I completed a classic appren- in 2017 to work on basic fuel cell devel- ticeship and then I studied computer science. Since opment. My early days in Germany were Promoting gender 1996, I have worked in the IT department at Audi, hard; I had to learn the language and find equality and em- where I have managed many exciting projects over powering women is my way around. But the changes and chal- an integral part of the years. And when problems arise, I still follow lenges also motivated me. I feel very re- Agenda 2030, which the motto: If I have to, I’ll run into a wall 10 times spected here at Audi. Every now and then seeks to create a or more – until it eventually gives way.” I visit my family in Sardinia. There are diverse and inclusive community where many places I call home.” gender makes no Tobias Narr difference. 28, maintenance group leader

“Fortunately, I don’t have to keep my favor- ite hobby quiet in the workplace: My passion is soccer, especially the Bayern Munich club. Admittedly, Bayern fans are in the majority at Audi, but when we discuss the weekend’s professional league games during our Mon- day breaks, we welcome fans of all clubs. As a Goals include long- Promotion of group leader, I need many of the qualities that term, inclusive equal opportunity are also important in soccer: I have to be able and sustainable helps ensure con- to motivate others, and I always have to think economic growth, tinued economic full and productive success and rein- about the team first while still remaining true employment and forces social cohe- to myself. So my hobby is very educational for dignified work for sion. This devel- me, both as a player and as a group leader. I’m everyone. Social, opment goal was also a member of the Audi fan club for the local environmental and born of concern economic develop- over growing so- soccer club, FC Ingolstadt. But I think Bayern ment goals should cial and economic Munich will forgive me for that.” be harmonized. inequality. Audi Sustainability Report 2019 85 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Flow of knowledge Audi plans to bring dozens of electrified models onto the market by 2025. That requires expertise – which Audi employees acquire through specially tailored training and development programs. A report

The Audi e-tron is up on the hy- methods and new content both draulic lift with the hood open. But in training the next generation of the car is not defective; it is just employees and in offering expe- there for illustrative purposes. And rienced employees professional for once, no apprentices or training development opportunities,” ex- participants are crowding around plains trainer Rupert Kaindl. the car at one of the training Audi trains young people world- workshops at the Audi Academy in wide and provides advancement Ingolstadt. Today, trainers Rupert for employees in all life phases by Kaindl and Siegmund Singer are offering appropriate development teaching their co-workers from and qualification options. But Digitalization of Logistics Process- e-mobility is not the only field in es how to de-energize an electric which Audi employees have been vehicle – and they have decided to trained for many years. transform the training content into The Audi Group’s comprehensive a VR training session. range of competence development and qualification programs is bun- Individual and virtual learning dled at the Audi Academy, where Apprentices and participants in all apprentices, employees and professional development courses managers can take advantage of will later be able to practice the them. “With the focus on electric necessary steps on an electric car in mobility, a new age has dawned for virtual reality. “The digital world us at the Audi Academy, too,” says allows us to save real resources. Erich Schott, who is responsible for Not only can we share more apprenticeships in the area of au- knowledge with our employees, tomotive engineering. “We want to we can do so in a very individual bring Audi employees up to speed Trainer Rupert Kaindl explains to Audi employees Felix Fornoff and Leon Meka way. Digital learning opens up new with the numerous new activities (from right) how the Audi e-tron* is disconnected from the battery. * Audi e-tron: Combined power consumption in kWh/100 km: 24.3–21.0 (NEDC); 26.6–22.4 (WLTP), combined CO₂ emissions in g/km: 0 Audi Sustainability Report 2019 86 Progress you can feel

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Thematic goals of Developing and nurturing Agenda 2030 competences A transformation calls for new key competences, since competence and qualification require- ments change fundamen- tally. The Audi Academy’s as quickly as possible. There is a batteries. The first apprentices will of high-voltage batteries. It qual- qualification programs huge demand for qualifications in be piloting this additional quali- ifies the participant as an electri- No exhaust emis- prepare employees for the field of e-mobility. Our work- fication in September 2020. Ulti- cian for battery technology with an sions in the air: future challenges. The force needs to feel at home in this mately, battery technology will be IHK certificate examination. Electric mobility is meant to benefit courses offered are field quickly,” adds Michael Lob- integrated into the apprenticeship Rupert Kaindl, 46, has been a everyone’s health geared to Audi’s human meier, who heads the professional as a fixed module. trainer for 20 years. He helps de- and well-being. resources and com- development program for automo- velop the content of training and petence development tive engineering. Thousands of Audi employees are development measures: “Every needs as well as to the Since 2014, more than 450 ready for e-mobility person learns differently. We al- future topics of the in- young men and women have been Professional development mea- ways think about the most efficient dustry. Audi will invest trained at the Ingolstadt and Neck- sures are designed to take into way to learn. Our main aim is to more than half a billion arsulm locations as automotive account the previous knowledge provide support and advice. With euros in professional de- mechatronics technicians special- of the employees starting the the help of the digital training velopment between now izing in system and high-voltage training. The learning content world, every apprentice and course and 2025. technology. Apprentices who and qualifications are adapted participant can learn individually.” Education is a During the year under successfully complete a program accordingly. Different qualification Audi spends a great deal of mon- fundamental human right and key to the review, the Audi Group with this specialization are then paths show which qualification ey on the training and, above all, sustainable develop- held 20,694 training qualified as electricians for auto- is appropriate for the respective the development of its employees. ment of society. events worldwide with motive engineering. After their ap- employee. The qualifications are By 2025, the company will make 1.7 million participant prenticeship, they work in various bundled and structured so that EUR 500 million available for pro- hours. In Germany, production areas or in one of the they build on each other, enabling fessional development alone. In where there were 10,866 workshops at Technical Develop- employees to start their electric 2019, the Audi Academy qualified training events, over ment or the Pre-Series Center. mobility qualifications in line with around 8,000 participants world- 33,000 employees at- While the occupational profile their individual needs. The more wide for electric mobility. tended one or more qual- of automotive mechatronics tech- advanced their qualifications, Audi is also looking to cooperate ification courses in 2019. nician specializing in system and the more freedom they have to with external training partners. high-voltage technology has been work on an electric car. In total, Together with Ingolstadt Univer- established since 2014, an addi- employees have access to over 38 sity of Applied Science (THI), Audi Sustainable eco- tional qualification is now being qualifications on the subject of has designed a professional devel- nomic development For more information and fig- introduced in battery technology, e-mobility. For instance, one newly opment program for drive devel- reconciles social, ures on professional develop- environmental and ment measures at Audi, please which focuses on the production and developed program focuses on the opers. Technical and educational economic goals. see page 107. quality assurance of high-voltage production and quality assurance experts from the Four Rings Audi Sustainability Report 2019 87 Progress you can feel

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joined forces with THI professors Ingolstadt University of Applied ments that enable employees to “There is a huge demand for qualifi- to tailor the in-service qualification Science and the Technical Univer- gain specialized and interdisciplin- cations in the field of e-mobility.” to the company’s requirements. sity of Munich, and also through ary qualifications throughout their Erich Schott, Head of Vocational Training in Thus Audi engineers are now able the partnership program with the entire working lives. Automotive Engineering to broaden their knowledge in Baden-Württemberg Cooperative THI’s lecture halls. The aim is to State University. Those graduating German standards worldwide build up further strategic and tech- from these courses are guaranteed Whether electric mobility is ad- “With the help of the digital training nical expertise in the field of elec- permanent employment at Audi. dressed in vocational training or world, every apprentice and course tric mobility. Performance appraisals conducted professional development courses participant can learn individually.” Commercial partners are also regularly for all employees at AUDI – Audi’s international locations receiving electric mobility training. AG play an important role here. are always on board. If necessary, Rupert Kaindl, trainer at the Audi Academy Service technicians in more than Employees can use these appraisals the special training and develop- 40 markets are taking advantage to discuss their development oppor- ment programs can be adapted of a specially developed VR training tunities. Together with the General to the particular requirements of course to familiarize themselves Works Council, the management each country. Successes of the Sustainability Academy with the details of the high-voltage of AUDI AG has agreed on arrange- battery in the Audi e-tron. To improve its sustainability performance even more, Audi founded the Sustainability Academy Audi promotes lifelong learning in 2016. All employees and apprentices can Training and development play take part in classroom training or digital for- an important role not only in the mats such as web-based training (WBT) on the transition to electric mobility, but subject of sustainability. The focus here is on an also in Audi’s overall transforma- internal transfer of knowledge – from co-workers tion. The Audi Academy promotes for co-workers. Around 900 employees at- lifelong learning and prepares tended training courses at the Sustainability employees for future challenges in Academy in 2019. a targeted manner – from voca- tional education and dual studies Education counts to professional development courses. Audi offers vocational In addition, other area-specific qualifications training that enables talented exist throughout the company. For example, young people to qualify in one there are training courses on topics such as of 20 vocations. A dual course of procurement and logistics, or environmental study gives students the opportu- protection and energy efficiency in production. nity to combine theoretical studies A number of sustainability-related Web-based with in-house practical phases. training courses were also introduced in 2019. Under the “Audi dual” program, These formats are intended to create a com- various study courses are available mon understanding of sustainability and raise to prospective students at the Two experts for electric vehicles: trainers Rupert Kaindl (left) and Siegmund Singer. awareness among employees. Audi Sustainability Report 2019 88 Progress you can feel

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Who we are?

Number of employees We are Audi

Audi Group workforce[201] A company is only ever as good as its employees. And good Lifelong learning 90,783 work requires good working conditions. That is why the To ensure the future viability of the company, Audi prioritizes Human Resources and Organization division consistently the training and development of its employees. Lifelong focuses on the employees and assumes responsibility – in learning is meant to contribute to the success of the Four Proportion of line with the 2025 corporate strategy. Rings. Moreover, the brand has established a strategic re- women[203] source and competence management system that enables 15% Making working hours and the place of work more flexible the Human Resources and Organization division to plan per- and implementing agile structures and processes are sonnel requirements for future tasks and develop employees’ important aspects of the Audi Working World. This means competences in a targeted manner. In this way, Audi is opti- considering the different phases of the employees’ lives mally prepared for the challenges of the future. and promoting trustful cooperation. The workforce in figures At the close of 2019, the Audi Group employed a total of Apprentices[201] 90,640 people (2018: 91,674), with an average of 90,783 2,585 employees (2018: 91,477) over the year. This represents a year-on-year decrease of 1,034 employees (year-end figure) or around 0.76 percent (annual average). Of the total of New hires, Audi Group 4,214 (2018: 5,004) employees newly recruited within the 4,214 Audi Group, 1,310 (2018: 1,628) were taken on by AUDI AG.

Audi fundamentally supports the employment and qualifi-

[203] cation of local employees. The Group is convinced that these Average age[213] employees are knowledgeable about the region and the local 55.1% market, and have good networks that are helpful for the fur- 41.5 ther development of their locations. The proportion of foreign nationals[204] at AUDI AG was 8.3 (2018: 8.4) percent in 2019. 30.6% < 30 years 14.3% Detailed information on employee numbers 30 to 50 years 48.5 (2018: 48.4) percent of Audi Group employees were in > 50 years [203][204] the production area and 48.5 (2018: 48.6) percent in the GRI 102-41 Audi Sustainability Report 2019 89 Progress you can feel

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non-production area at the end of 2019; the number of Men and women on parental leave [204] relating to agency and temporary staff as well as the “Char- apprentices was 2,585 (2018: 2,582). Within the employees ter on Temporary Work of the Volkswagen Group,” an agree- in the non-production area, the proportion of academics[204] ment has been reached with employees’ representatives on [207] at AUDI AG was 51.4 (2018: 50.9) percent. The number the deployment of temporary workers. As well as extensive of temporary employees in the Audi Group showed a year-on- qualification options, it offers the prospect of being taken 2,210 2,305 year decline to 1,957 (2018: 2,527). The turnover rate[203] [204] on permanently subject to relevant internal factors. at AUDI AG in 2019 was 0.7 percent (2018: 0.9). 1,448 Self-determined work Fair conditions for everyone 1,229 Audi creates leeway for various different life phases to take Through collective bargaining agreements involving the account of employees’ needs. The company offers many dif- unions and management at all manufacturing sites, Audi ferent working hours models to give people maximum flex- undertakes to ensure that part-time and full-time employees ibility for their personal path through life. In 2016, Audi’s receive equitable and fair pay. At Audi, the activity alone de- management and General Works Council approved a works termines remuneration. agreement that gives employees an entitlement to mobile 2018 2019 2018 2019 working if this is compatible with their work task. There As an employer, Audi is also aware of its special responsi- is also a drive to make working hours in production more bility toward temporary employees. Based on the collective flexible. In 2017, a pilot project was launched at Ingolstadt months agreement for the metalworking and electrical industries 9 to create greater flexibility in shifts and broaden the scope Average length of parental leave in 2019 for part-time work in shift systems, so that employees can

Men on parental leave achieve a better work-life balance. As of the end of 2019, there were 4,448 (2018: 3,924) employees at Audi with Women on parental leave part-time contracts.

Family and career? No problem! Company benefits in Germany Audi supports its employees’ efforts to achieve a balance be- Audi offers its employees a pany agreements with em- fit plans. For the former, the those that are financed tween family life and work. Employees can for instance work high level of job security and ployee representatives, they company pays contributions externally. In addition to a part-time or take caregiver leave to support family members. attractive financial remuner- are above the agreed level to public or private-sector company pension scheme Many employees take up the option of parental leave. The ation components. In Ger- for the industry. In addition, pension plans on the basis and the possibility of top- company then facilitates their reintegration and gives em- many, employment contracts there are collective/works of statutory or contractual ping up retirement benefits ployees on parental leave additional job training that will are drafted on the basis of agreements on employee requirements, or on a volun- individually through de- make it easier for them to resume their careers. In 2019, a the collective agreement participation in the compa- tary basis. ferred compensation, Audi total of 3,753 (2018: 3,439) employees took parental leave, between the Südwestmetall ny’s success and collectively Retirement benefit sys- endeavors to make the tran- of whom 1,448 (2018: 1,229) were female and 2,305 (2018: Employers’ Federation, vbm agreed gratuities. tems are based predomi- sition from working life to 2,210) male. On average, employees took 9 months of pa- (Bavarian Employers’ Associ- Employees in Germany nantly on defined benefit retirement more flexible. A rental leave. ations for the Metalworking benefit from the company plans, with a distinction works agreement has been and Electrical Industries) and pension scheme, which being made between those reached on the further de- Audi restated its commitment to a family-friendly corporate the IG Metall trade union. comprises both defined con- benefit systems financed velopment of partial retire- culture in joining the Family Pact for Bavaria in 2017. To ac-

Thanks to additional com- tribution and defined bene- through provisions and ment, for instance. tively promote the compatibility of family life and work, the GRI 102-41 Audi Sustainability Report 2019 90 Progress you can feel

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Optimal conditions 101.3 million for good ideas

54.4% 23,073 ideas business models – presents major challenges for co-determi- Implementation from Audi employees were nation and thus for corporate culture. Both sides of the social quota implemented in 2019 partnership have to work on a wide range of structural issues € as well as questions of corporate and collective bargaining policy. A new, empowered co-determination culture 4.0 – i.e., Savings (in EUR million) one that is open, transparent, participation-oriented and agile – adds direct employee participation to the established form of institutional co-determination. Works Council and company has a regular and steadily growing block of places AUDI AG “Stimmungsbarometer” in 2019. The results are trade union members, as well as the management at Audi, at day care centers in Ingolstadt and Neckarsulm. Audi also presented in the individual organizational units and dis- are called upon to take action in this area. has partnerships with day care centers and schools at the inter- cussed with the employees. national Audi sites in Győr (Hungary), Changchun (China) and In the course of the EdA project, various events took place San José Chiapa (Mexico). In addition, the company enables Opportunities and risks of future forms of work under the title “Werkstatt Audi.” The sub-project “Developing employees and their families to handle everyday errands The Audi Works Council plays an active role in shaping the new concepts for a participation-oriented corporate culture (grocery shopping, postal and dry cleaning services) by digital transformation and thus the future at Audi. As part of in the digital working world” attempted to adapt traditional using the Audi service lockers directly on the plant perime- the project “Vision Ingolstadt 2030: Digitalized work and the large-group methods to the respective organizational needs ters. This saves them time and also helps to ease traffic future of co-determination” initiated by the employee rep- and action areas. Whether fishbowl discussions, BarCamps loads around the plant. resentatives and the IG Metall Ingolstadt trade union, em- or world cafés – they all shared a common theme: participa- ployees, shop stewards and Works Council members conduct tion orientation as a means of achieving more personal and Optimal conditions for good ideas a dialogue with start-up ventures, politicians and scientists responsible empowerment at Audi. During the EdA project Audi profits from the imaginativeness of its employees and be- about the digitalization and humanization of the working phase from 2017 to 2019, the Audi Works Council gathered lieves it is very important to encourage employee involvement. world. This project has given the Audi Works Council the a wide range of experience and ideas on the topic of employ- The Audi Ideas Program[204] collects suggestions for improving opportunity to take part in the EdA project – a joint initiative ee participation and empowerment in terms of both methods existing processes. In 2019, around 54.4 (2018: 55.5) per- funded by the Federal Ministry of Education and Research en- and content. Much of this has since been incorporated into cent of ideas put forward were realized, producing savings of titled “Empowerment in a digital working world – developing both the Audi corporate culture and the participation culture around EUR 101.3 (2018: 109.1) million. sustainable concepts for digitalization.” Specifically, the Audi of the Works Council. Works Council was in charge of the sub-project “Developing The regular employee survey is another way in which Audi new concepts for a participation-oriented corporate culture promotes employee participation. This survey gives Audi in the digital working world.” employees a means of voicing their opinion anonymously on various matters and highlighting potential improve- The sustained transformation of the automotive industry More detailed figures are provided ments. 40,886 (2018: 42,173) employees took part in the – digitalization, globalization, electrification, disruptive in the data appendix. Audi Sustainability Report 2019 91 Progress you can feel

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United for

your health YEARS Accidents are extremely rare at Audi: On average, employees suffer an accident at work every 105 years.

Audi employs an integrated occupational safety system and comprehensive health management system to minimize work-related accidents and improve the health resources for its workforce. In particular, the company has intensified its advisory services on mental health.

Employees who remain uninjured and untroubled by fears or worries on the job tend to perform their duties quite eagerly and successfully, which is a win-win situation for employees and employers alike. But what exactly can companies do to ensure an optimal working environment – that is, one that protects all employees from accidents and motivates them to do their jobs as well as possible?

Audi’s Board of Management and employee representative bodies have jointly developed measures for all day-to-day op- erations to prevent accidents and health hazards as well as to design safe processes, equipment and products. The Board of Management bears overall responsibility for compliance with the statutory regulations on occupational health and safety. Audi has a works agreement in place for occupational health dards and safety-conscious behavior. Employees are thereby Comprehensive risk assessments and regular training cours- management, which was extended by an additional world- encouraged to take an active part in optimizing safety in es are already part of Audi’s day-to-day work repertoire, in wide standard for its international sites in 2017. the workplace. In 2019, Audi set an ambitious target for its an effort to prevent accidents and health impairments. All industrial safety policy: to establish a safety culture that is work-related accidents are analyzed jointly by managers and Safety first characterized not only by compliance with rules and regu- industrial safety specialists. This has proved successful: In In terms of occupational health and safety, Audi is continu- lations, but also by employees looking out for those around 2019, there were just 6.2 (2018: 5.6) work-related accidents ously driving progress both in terms of technological stan- them on their own initiative. per million hours worked at AUDI AG that resulted in at Audi Sustainability Report 2019 92 Progress you can feel

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“Everyone has a 1. psyche”: Posters GEDANKEN- from the internal MUSTER health campaign Occupational health EIN and safety AUDIANER Comprehensive health KENNT management and an inte- KEINEN grated occupational safety system are two of the SCHMERZ. ways in which Audi seeks Weißt du, wer keinen Schmerz kennt? Der Nacktmull. Sei nicht wie der Nacktmull! to minimize work-related Rede über Schmerzen. Thousands of Audi employees attend checkup accidents and improve Jeder hat Psyche. Warum nicht darüber reden? In addition to industrial safety, Audi devotes considerable

Informationen über Beratung, Hilfe und Vorsorge finden Sie im the health resources of its Mynet unter dem Stichwort: „Jeder hat Psyche.“ attention to the physical and mental health of its employees. employees while also pro- The Audi Checkup plays a central role here: The individual

Audi

moting their physical and Audi Mynet Wir-sind-Audi Gesundheitsmanagement prevention program can be used by all employees during

mental performance. Verantwortlich: I/SW | aufzuhängen am 05.12.2019 | abzuhängen am 19.12.2019 working hours and helps to identify and reduce health risks Group-wide standards are early on. Around 10,000 employees took advantage of the helpful in this regard. For all Audi Checkup in 2019 (2018: 9934). Audi also offers various day-to-day operations, the fact-finding events and training courses as well as health care company and Works Council least one day’s work lost. In other words, Audi employees and health promotion programs. In the year under review, representatives have devel- suffer an accident at work about every 105 years on average. the company enhanced the “Work and Psychological Health” oped measures to prevent The number of accidents involving medical referees or first program and introduced further digital products such as the accidents and damage to aid was again reduced compared with the previous year. HR application “e-health,” for example. health as well as to design There were no fatal accidents at Audi in 2019 (2018: one). safe processes, equipment Open discourse and vehicle components. Safety at work Audi placed particular emphasis on the mental health of its The Board of Management The way the workplace itself is designed plays a decisive role workforce in 2019. As part of the internal campaign “Every- is responsible for compli- in improving safety at work. Audi applies the most modern one has a psyche,” the company’s health management team ance with the respective standards in ergonomics, safety technology and occupational urged all employees not to neglect their own mental health. statutory regulations. Fur- medicine at all of its sites. As part of the Audi ergonomics Moreover, superiors, Human Resources advisors and Works thermore, each manager is strategy, the company promotes intelligent work organi- Council members were trained to recognize mental health is- responsible for occupational zation along with measures to apply the standards on an sues among employees at an early stage and to address them safety in his or her super- international scale, for example. Through targeted consulta- in a sensitive manner. visory and functional area. tions, Audi raises its employees’ awareness of the issue and This is also laid down in a encourages them to put forward their own suggestions, thus company agreement on allowing them to design their own workplace. The ergonom- industrial safety that covers ics coordinators at all Audi sites discuss measures and devel- More detailed figures are provided all employees of AUDI AG. opments several times a year. in the data appendix. Audi Sustainability Report 2019 93 Progress you can feel

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For Audi, cooperating with the scientific community and promoting education are important drivers for a successful future. Innovation through In this context, it is important to Audi that the transfer of knowledge is mutual. Differ- ent forms of cooperation are possible: For cooperation example, a number of national and interna- tional universities work with the company. When business and science cooperate with each In addition to being involved in research other, both sides benefit. That’s why Audi supports projects and giving scientific lectures, Audi researchers and lateral thinkers – and gives them a at employees teach at universities. Audi con- stage conferences where they can share their knowl- tributes towards extending research and edge. Eight impulses for the world of the future: teaching into new fields through endowed professorships. With all these activities, Audi contributes to society and puts cor- porate responsibility into practice. Audi sees universities as special partners and is actively involved through various initiatives for a transparent, fair and honest cooper- ation between industry and academia. For example, a doctoral program enables young scientists to conduct research in technical and non-technical projects for Audi.

Other pillars of Audi’s activities are the public lecture series “Wissenschaft im Di- alog” (Academia in Dialogue) at the sites Inspired the audience at the “MQ! The Mobility in Ingolstadt and Neckarsulm as well as an Quotient” summit hosted by Audi: Peggy Liu, chair- international, interactive conference on the person of JUCCCE and expert on sustainability and mobility of the future called “MQ! Innovation large-scale development. Summit.” The conference, which took place “Sustainable mobility means not just low in China for the first time in 2019, brings to- CO₂ emissions. It means zero carbon emis- gether international pioneers, thought lead- sions. More than 30 cities in China will have ers and experts from business and science fully electrified their public transport sys- to discuss new approaches to innovation tems by 2020. We can learn from China how topics and the future of mobility. The main sustainable solutions can be implemented topics of discussion in 2019 were social and on a large scale.” sustainable mobility as well as more flexible mobility concepts. Audi Sustainability Report 2019 94 Progress you can feel

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Professor Wolfgang Prinz, PhD Professor Stefanie Bremer Daizong Liu Vice Chair of Fraunhofer FIT, University of Kassel, Inte- Director RWTH Aachen University, grated Traffic Planning and of China teaching and research field: Mobility Development Sustainable cooperation systems Cities Pro- gram, World Resources “In the future, more and more peo- Institute ple will live in densely populated areas. Negative impacts between mobility and settlement areas can only be reduced with integrated concepts. Traffic planners, vehicle manufacturers, urban planners, “Technology allows people to occupy “With regard to the digitalization of ser- technicians and sociologists must more space. Only six percent of all cars vices and processes, blockchain technolo- work together. Digitalization creates are actually driving at any given time, gy is of great relevance for many areas of opportunities to customize apart- which means that most of them are application outside the financial sector, ments, mobility offers or transporta- standing around. We could use 80 per- above all independent of cryptocurrencies. tion to the needs of different target cent of the available parking space for In production, but also in administration, groups and to implement them in a other purposes. Car sharing, autono- there are applications that can benefit cost-effective manner.” mous driving and electrification are all from using blockchains for the secure and very important.” Excerpt from the presentation “Drive+: reliable management of transactions, as- The diversity of the mobile future” (February Daizong Liu, Director of China Sustainable sets or documents in a network.” 2019, Audi Forum Neckarsulm) Cities Program, World Resources Institute

Excerpt from the presentation “Blockchain technology: principles, application examples and recommendations for use” (February 2019, Audi Conference Center Ingolstadt) Networked world: Audi and One Young World Summit In 2019, AUDI AG again each summit, Audi from the Audi Environ- sent ten young employ- supports its employees mental Foundation, ees from its worldwide in implementing their which is awarded jointly “If it is unclear who contributed how much to a locations to the One ideas. Social commit- with One Young World. team task, the share contributed by the men is Young World Summit ment of this kind is Through this sponsor- often overestimated and that of the women un- as delegates. At the important to Audi. ship, the foundation derestimated. This is especially true where there is Summit, this time in That is why the Audi aims to create a network no clear information on what each individual has London, they had the Environmental Foun- between business, sci- Professor contributed. How do we overcome this attribution opportunity to network dation also sponsors ence and young thinkers Gudrun Sander bias? By creating and demanding transparency.” with like-minded peo- 15 other young people and thereby promote Director of the Compe- ple, experts and men- from all over the world. an active transfer of tence Centre for Diversity Excerpt from the presentation “The treasure trove diversity: & Inclusion, University new challenges and opportunities for managers” (December tors to find solutions to Students were able to knowledge and ideas for of St. Gallen 2019, Audi Conference Center Ingolstadt) social problems. After apply for a scholarship a sustainable future. Audi Sustainability Report 2019 95 Progress you can feel

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Professor Sabine Audi Environmental Foundation: 10 years of commitment Pfeiffer Friedrich-Alex- Audi Stiftung für Umwelt – the Audi animals and plants to promoting raise awareness, part of the col- ander University Environmental Foundation – is an the use of new technologies for the lected waste is recycled and used Erlangen-Nurem- active supporter of research in new environment. The latter is based to produce eye-catching benches berg, Chair of Sociology, with technologies and scientific methods on the guiding principle of “green- by means of innovative 3D printing a focus on tech- for a livable future. Its aim is to con- ovation.” The idea behind this technology. nology, work and tribute to and raise awareness of en- concept is to combine traditional Naturally, the Audi Environmen- society vironmental protection and to inspire environmental protection with new tal Foundation also pursued many sustainable conduct. technologies in key projects and to other projects in 2019, such as The Audi Environmental Foun- use the knowledge gained to make promoting young scientists by es- dation therefore focuses on the a valuable contribution to society tablishing the SRM Award together “No one can say at the moment what tomorrow promotion and development of (open source). with the Technical University of Mu- will be like. The more important question is: What innovative, environmentally com- The 2019 reporting year saw nu- nich. It also inspired Audi employ- do we need to design today and how do we want patible technologies as well as merous successful projects here: ees to take part in environmental the digital working world to look? This question measures for environmental educa- In terms of technology, the Clear campaigns themselves – for exam- is not decided in Silicon Valley, but in companies tion and the protection of the nat- Rivers project stands out in particu- ple, with its “Mach Mit!” program and at the workplace.” ural resources of humans, animals lar. Working with Audi Brussels and or its plogging events. Plogging is and plants. AUDI AG established the Port of Brussels, in March 2019 a fitness and environmental trend Excerpt from the presentation “The digital transformation: the foundation as a wholly owned the Audi Environmental Foundation from Sweden that combines jog- Who is actually implementing it?” (October 2019, Audi subsidiary in 2009 with a view to and its project partner developed ging with picking up garbage (ploc- Conference Center Ingolstadt) strengthening its social and envi- and installed a special plastic col- ka upp in Swedish). ronmental commitment. lecting basin. Referred to as a litter The Audi Environmental Foun- trap, it ensures that plastic does dation’s commitment is multifac- not find its way into the open sea eted and of a long-term nature. through the canal. The project part- More information about the foundation’s It ranges from efforts to preserve ners then use the collected waste projects and initiatives can be found on the the natural resources of humans, for an innovative, new purpose. To Internet: www.audi-umweltstiftung.de “Renewable energy generated by wind, sun or water is virtu- ally emissions-free during its Clear Rivers project use and also has a low level of in cooperation with emissions over its life cycle. the Audi Environ- It’s therefore the best tool for mental Foundation: Professor Detlef Stolten making both the energy and The floating plastic RWTH Aachen University, islands in Brussels transport sectors clean.” Institute of Energy and Climate are an environ- Research – Techno-economic mental protection Excerpt from the presentation “How do Systems Analysis (IEK-3) measure. clean drives and renewable power gen- The collected eration fit together?” (September 2019, waste is used to Audi Forum Neckarsulm) produce benches. Audi Sustainability Report 2019 96 Progress you can feel

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Local commitment

San José Chiapa Győr Mexico Responsibility means showing commitment. And Audi’s Hungary AUDI MÉXICO Audi Hungaria Zrt. employees do so even outside their working hours. With a S.A. de C.V. large number of corporate citizenship projects, they help shape the company’s locations worldwide. Here is a small selection from 2019: Audi Hungaria Audi México TED x Győr TED talks are inspiring, in- Audi Habita Is learning to act sustainably easy? Yes, it is – structive and entertaining. TED stands especially when you do it in a playful way. The Audi Habita for Technology, Entertainment & Design. project in Mexico proves this. At its production location How does Audi decide which direction its commitment takes? Originally, the term referred to creative in San José Chiapa, Audi actively promotes a sustainable Every Group site has its own identity and its own require- conferences in California, where thought future. Specifically, children from the surrounding area ments. Local corporate citizenship can therefore have various leaders, entrepreneurs, activists and artists learn in simple ways how important it is to treat nature in different focal points. Audi has defined global principles for presented their projects and ideas in just a a sustainable manner. On two project days, 30 students corporate citizenship as an orientation guide. Intended as few minutes. At the TED x Győr event spon- find out what it takes to make the production of cars long-term parameters, they help with the selection and de- sored by Audi, the audience was particularly sustainable. For example, they use magnifying glasses to velopment of targeted location development measures and interested in one expert: Dr. Hanula Barna, examine the water from the production site’s water puri- clarify the common understanding that runs like a common who heads the Audi Hungaria Faculty of Au- fication system. There the kids discover microorganisms thread through the various measures at the locations. tomotive Engineering at Széchenyi István that enable Audi to save 100,000 cubic meters of waste- University and who spoke about energy and water each year. Local activities at the sites are designed to promote the resources. development of the respective region and enhance its attrac- tiveness for businesses, employees and society. Audi stands up for the disadvantaged and supports mobility projects as Corporate citizenship spending [210] [211] at Audi well as activities that contribute to the education and train- (in EUR million) ing of children, adolescents and adults. In the area of tech- nology, Audi backs projects that allow the company to put its know-how to good use. 20.6

Equally, Audi employees frequently demonstrate solidarity in various campaigns and calls to raise funds: In the year under 17.5 review, the Christmas appeal and the “Last Cents” campaign 16.5 at the sites in Ingolstadt and Neckarsulm raised an amount of around EUR 1.297 million (2018: EUR 1.284 million)[209] [211]. 2017 2018 2019 Audi Sustainability Report 2019 97 Progress you can feel

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Audi of

Neckarsulm America Ingolstadt Germany Germany AUDI AG America SCORES Do soccer and AUDI AG poetry go together? Yes, quite well, actually! And the organization America SCORES proved this in 2019 thanks to support from Audi. Audi in This non-profit organization works with public schools in low-income Ingolstadt communities and offers extracur- ricular activities for elementary and Team Activities & Volunteer Day Audi Team Activities, junior high school students. The which are part of Audi Volunteers, saw employees in In- students not only play soccer, they golstadt and Neckarsulm supporting charitable institu- also play with words, writing their tions throughout 2019. The employees were also encour- own poems that they then perform aged by Audi in their endeavors. The aim is to promote the at poetry slams. America SCORES is welfare of children, senior citizens, people with disabili- helping more than 13,000 students ties and all those who need support, whether in small or from 311 schools in 12 cities. About large ways. A positive side effect: Team Activities simulta- 85% of the participants live at or neously offer an excellent opportunity for team-building below the poverty line. and strengthen the team spirit. Audi Volunteer Day in May 2019 was also a success: More than 300 Audi employees volunteered to help out at 42 social institutions.

Audi in Neckarsulm Herndon, Virginia USA Doing good on the go What is plogging? An envi- ronmental fitness trend from Sweden that combines jogging and collecting garbage. The term plogging is made up of the Swedish verb for picking something up (plocka) and jogging. In 2019, the Audi Environmental Foundation brought the trend activity to Neckarsulm and invit- ed employees and residents of the city to take part Committed Audi employees helped out at a home for the elderly in plogging. The aim of the initiative was to raise during the 2019 Volunteer Day awareness for environmental protection. Audi Sustainability Report 2019 98 Progress you can feel

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Audi China Sant’Agata Bolognese Italy Spring Bud project In 2019, FAW-VW Audi Automobili Lamborghini entered into a strategic cooperation with Bologna the China Children and Teenager Fund Italy Moncalieri Ducati Motor Holding (CCTF) to support several social projects. Italy The best-known is a project called Spring Italdesign Giugiaro Bud, which was launched as early as 1989 by the All China Women’s Federation (ACWF) with the aim of promoting women and helping female school drop-outs return to the educational system more easily. However, this is not the only welfare project of the CCTF: The organization also strives to improve teaching conditions in poverty- stricken areas as well as the health condi- tions of children and adolescents in general. One of the organization’s highlights is the Spring Bud Dream Camp, which gives young Audi in Italy people the opportunity to delve into re- search and new technologies. KiSS program Ducati continued its KiSS program in The figures are impressive: In the 30 2019. KiSS stands for “Keep it Shiny and Sustainable.” Girlstech At Italdesign, the daughters of employ- years of its existence, the organization has The aim of the program is to raise public awareness of ees were given the opportunity to explore the supported more than 3.6 million girls and the importance of sustainable conduct at major sporting working world of the automotive industry. The young women as well as over 1,800 schools. events such as the MotoGP championship as well as in goal was to increase the number of women inter- our day-to-day lives. ested in the subjects of mathematics, IT, science and technology.

Changchun Car pooling Employees at Lamborghini not China FAW-Volkswagen only work together well, they also often travel to work together. Thanks to a corporate car pool service, the company is able to save car- bon dioxide even on the way to work. Another Foshan advantage is that employees are less stressed China FAW-Volkswagen by the journey to work. Audi Sustainability Report 2019 99 Progress you can feel

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Employees and Society (Table 1 of 3) The Audi Sustainability Program combines strategic goals in the area of sustainability with concrete measures. It is divided into the four core topics “Operations and Integrity,” “Products and Services,” “Value Creation and Production” as well as “Employees and Society.”

Goal Measure Date Comparison of SDGs

Make working hours and place of work more flexible Establishment of mobile working Continuous development

Updating of methodology and content Extension of digital learning methods 2025 of vocational and advanced training

Modification of content of vocational and advanced training in 2025 relation to strategic future-oriented topics

Maintaining vocational training figures and advanced training 2020 days at a high level (three-year forecast)

Promote employee health Further development of occupational health & safety 2020 at international sites

Setup of digital offerings as part of company health promotion 2022

Promote equal opportunity Increase in the proportion of women in the first management 2021 tier below the Board of Management to 8 percent and to 16 percent in the second management tier

Strengthen cultural diversity Expansion of the proportion of international managers within 2025 AUDI AG, global employee rotation, international young talent programs, intercultural awareness and training Audi Sustainability Report 2019 100 Progress you can feel

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Employees and Society (Table 2 of 3)

Goal Measure Date Comparison of SDGs

Promote work-life balance Expansion of childcare Continuous development

Focus on the issue of care as part of employee information events Continuous development

Expansion and development of urban services: offerings Continuous and services for daily requirements at the interface between development home and work at the Ingolstadt and Neckarsulm sites

Promotion of employee mobility by strengthening Continuous the provision of job tickets and promoting carpooling development

Further develop voluntary programs Needs survey through annual events/formats at the Audi sites Continuous development

Promote a corporate culture along the lines of the Group-wide introduction of a role-model program for managers 2019 Volkswagen Group Essentials, the Audi corporate values and supervisors (completed) and the Code of Cooperation

Rollout and establishment of the Volkswagen Group Essentials 2019 (completed)

Establishment of the team dialogues and the principle indicator 2019 to publicize the Volkswagen Group Essentials and to measure the (completed) culture progress Audi Sustainability Report 2019 101 Progress you can feel

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Employees and Society (Table 3 of 3)

Goal Measure Date Comparison of SDGs

Increase employer attractiveness Initiation and promotion of future-oriented events with the Continuous focus on corporate citizenship/innovation (e.g. MQ! Innovation development Summit or One Young World Summit)

Provide access to education for the public Public “Wissenschaft im Dialog” (Academia in Dialogue) events Continuous at the Ingolstadt & Neckarsulm sites development

Further develop research and teaching Support of universities through endowed professorships Continuous in future-oriented fields at universities development

Promote mental health Stage I: Increase in transparency and communication 2019 through a destigmatization campaign (completed)

Stages II & III: Expansion of support services and 2023 establishment of a physical and mental health network and holistic care structures

Promote flexible cooperation within the Creation and establishment of new cooperation formats, Continuous company such as: agile process workshop, think tank in Berlin development

Digitalize HR processes Launch and establishment of an HR app to make it even 2020 easier for employees to access personal data (e.g., working hours, calendar, wages, etc.)

Extend attractive working conditions Implementation of the extended wage agreement (T-ZUG) 2020 with a choice between having the additional wages paid out or converted to paid leave Audi Sustainability Report 2019 102 Progress you can feel

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Appendix

About the report

AUDI AG has published the Sustainability Report since 2012. The Audi Sustainability Report is published every two years at the time of the Annual General Meeting of AUDI AG. In the intervening years, an update on the key figures and the sustainability program is published.

This report is a complete sustainability report covering the fiscal year 2019 (January 1, 2019 through December 31, 2019). The information in the report refers to the Audi Group. If the report refers to individual companies, sites or brands only, this is noted accordingly. Unless indicated otherwise, employment figures are as of the end of the respective year. Since the Annual General Meeting is being postponed in 2020, this report is being pub- lished in advance as an exception so that information on the 2019 reporting year can be made public in a timely manner.

The report appears in German and English, and was released by the full Board of Man- agement. It was prepared in accordance with the “core” option of the GRI standard of the Global Reporting Initiative and confirmed by the organization with the GRI Materiality Dis- closures Service. Audi conducted a comprehensive materiality analysis in 2019 to identify material topics.

The editorial deadline was April 30, 2020. GRI 102-48, 102-49 Audi Sustainability Report 2019 103 Progress you can feel

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Audi Sustainability Key Figures

Audi uses key figures to make its sustainability activities measurable and present them in a transparent way. The key figures are valid for the relevant calendar year PRODUCTS AND SERVICES and refer to the Audi Group. If key figures refer to individual Audi Group companies only, this is specified accordingly. Key figures are rounded up or down, which may PRODUCTION Unit 2017 2018 2019 result in slight deviations from the totals stated. Key figures which have been Automotive segment Cars [103] 1,879,840 1,871,386 1,802,073 audited by an independent auditing firm are identified by the “ ” symbol. Engines and 1,966,434 1,955,532 1,969,731 electrical drives The Independent Practitioner’s Report can be found on pages 116 and 117. Motorcycles segment Motorcycles 56,743 53,320 51,723 = Key figure for 2019 adopted from the audited 2019 Combined Management (Ducati brand) Report of the Audi Group and AUDI AG

Key figures 2019 and management approaches verified as part of the assurance engagement on selected disclosures in the Audi Sustainability Report 2019 DELIVERIES TO CUSTOMERS Unit 2017 2018 2019

Automotive segment [104] [105] Cars 2,105,084 2,081,418 1,853,833

OPERATIONS AND INTEGRITY Audi brand [104] Cars 1,878,105 1,812,485 1,845,573

Unit 2017 2018 2019 Germany Cars 294,544 260,456 271,613

Revenue [100] EUR million 59,789 59,248 55,680 Outside Germany Cars 1,583,561 1,552,029 1,573,964

Operating profit EUR million 4,671 3,529 4,509 Lamborghini brand Cars 3,815 5,750 8,205

Profit before tax EUR million 4,717 4,361 5,223 Other Volkswagen Group Cars 223,164 263,183 55 brands [105] Profit after tax EUR million 3,432 3,463 3,943 Motorcycles segment Motorcycles 55,871 53,004 53,183 Total capital investments EUR million 5,235 5,552 4,223 (Ducati brand)

Research and development activities EUR million 3,809 4,178 4,426

[100] Operating return on sales Percent 7.8 6.0 8.1 PRODUCT-RELATED CO₂ EMISSIONS 2019 Return on investment [100] Percent 14.4 10.0 12.7 Unit 2017 2018 CO₂ emissions of the European fleet g CO₂/km 127 129 131 [100] [101] [118] Ratio of capex Percent 6.5 5.9 4.9 (EU 30) [105] Net cash flow [100] EUR million 4,312 [102] 2,141 3,160 Fleet consumption, China (FBU) l/100 km 7.6 7.5 5.9 Audi Sustainability Report 2019 104 Progress you can feel

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VALUE CREATION AND PRODUCTION [106]

ENERGY Unit 2017 2018 2019 FUELS Unit 2017 2018 2019

Total energy consumption [107] MWh 2,920,739 2,775,442 2,677,678 Total fuel use MWh 1,202,130 1,092,974 1,066,205

Automotive segment MWh 2,897,174 2,751,234 2,654,047 Automotive segment MWh 1,169,738 1,059,128 1,033,019 (incl. components) (incl. components) MWh/Veh. 2.65 2.69 2.67 MWh/Veh. 1.07 1.03 1.04

From renewable energy sources MWh 999,572 1,142,833 1,312,213 Natural gas MWh 1,051,055 961,486 946,095

Automotive segment MWh 998,756 1,140,530 1,310,019 Automotive segment MWh 1,020,819 929,858 914,967 (incl. components) (incl. components) MWh/Veh. 0.91 1.11 1.32 MWh/Veh. 0.93 0.91 0.92

Electricity MWh 1,686,041 1,666,649 1,577,679 Heating oil MWh 11,438 8,782 6,813

MWh 1,670,431 1,650,932 1,562,156 MWh 11,438 8,782 6,813 Automotive segment Automotive segment (incl. components) MWh/Veh. 1.53 1.61 1.57 (incl. components) MWh/Veh. 0.010 0.009 0.007

Heating (incl. district heating) MWh 874,115 779,967 784,791 Diesel (test rigs) MWh 39,540 30,753 24,472

Automotive segment MWh 866,160 771,475 776,683 Automotive segment MWh 39,540 30,753 24,472 (incl. components) MWh/Veh. 0.79 0.75 0.78 (incl. components) MWh/Veh. 0.04 0.03 0.02

of which district heating MWh 364,612 340,474 351,292 Gasoline (test rigs) MWh 100,097 91,953 88,825

Automotive segment MWh 364,409 340,158 350,820 Automotive segment MWh 97,941 89,736 86,769 (incl. components) (incl. components) MWh/Veh. 0.33 0.33 0.35 MWh/Veh. 0.09 0.09 0.09

Combustion gases for production MWh 360,252 328,345 314,894 processes

Automotive segment MWh 360,252 328,345 314,894 (incl. components) MWh/Veh. 0.33 0.32 0.32

Refrigeration (externally sourced) MWh 331 482 314

Automotive segment MWh 331 482 314 (incl. components) MWh/Veh. 0.0003 0.0005 0.0003 Audi Sustainability Report 2019 105 Progress you can feel

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EMISSIONS Unit 2017 2018 2019 WATER Unit 2017 2018 2019

Total CO₂ emitted t 727,294 619,140 572,804 Total freshwater consumption m³ 4,207,671 4,159,236 3,428,952 t 722,459 615,009 568,792 Automotive segment Automotive segment m³ 4,133,952 4,091,377 3,360,283 (incl. components) kg/Veh. 660.08 600.57 572.99 (incl. components) m³/Veh. 3.78 4.00 3.39 Direct CO₂ emissions [108] t 246,276 202,031 198,418 Freshwater consumption m³ 2,557,949 2,609,368 2,057,909 t 242,997 198,564 195,097 Automotive segment internal catchment (incl. components) kg/Veh. 222.02 193.90 196.54 Automotive segment m³ 2,510,020 2,566,473 2,014,522 (incl. components) Indirect CO₂ emissions t 481,018 417,110 374,386 m³/Veh. 2.29 2.51 2.03 t 479,463 416,444 373,695 Automotive segment Rainwater used m³ 337,343 394,041 165,207 (incl. components) kg/Veh. 438.07 406.66 376.45 Surface water from lakes, m³ 663,879 722,499 611,311 VOC emissions [109] t 1,425 [119] 1,081 916 rivers, oceans t 1,425 [119] 1,081 913 Groundwater m³ 1,508,798 1,449,933 1,238,004 Automotive segment (incl. components) kg/Veh. 1.30 [119] 1.06 0.92 Freshwater consumption, externally m³ 1,649,722 1,549,868 1,371,043 sourced Direct NOx emissions [110] t 235 202 191 Automotive segment m³ 1,623,932 1,524,904 1,345,761 t 232 195 186 Automotive segment (incl. components) m³/Veh. 1.48 1.49 1.36 (incl. components) kg/Veh. 0.21 0.19 0.19 Sulfur dioxide t 1.93 2.14 2.06 t 1.90 2.14 2.06 Automotive segment (incl. components) kg/Veh. 0.002 0.002 0.002 Total dust t 37 58 41 t 37 58 41 Automotive segment (incl. components) kg/Veh. 0.03 0.06 0.04 t CO₂ e 13,571 13,712 13,525 CO₂ reductions in logistics [111] Audi Sustainability Report 2019 106 Progress you can feel

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WASTEWATER Unit 2017 2018 2019 WASTE Unit 2017 2018 2019 t [119] Volume of wastewater m³ 2,258,579 2,382,498 1,866,952 Total volume of waste (excluding scrap) 109,965 107,079 107,389 Automotive segment t 108,585 105,785 106,142 m³ 2,235,597 2,357,551 1,842,494 Automotive segment (incl. components) kg/Veh. 99.21 103.30 106.93 (incl. components) [119] m³/Veh. 2.04 2.30 1.86 Recyclable waste t 99,192 99,674 103,606 Automotive segment t 97,870 98,478 102,450 Direct discharge [112] m³ 4,193 11,228 18,529 (incl. components) kg/Veh. 89.42 96.17 103.21 [112] Indirect discharge m³ 2,231,404 2,346,324 1,823,965 Other recyclable waste t 57,022 56,538 57,160 Automotive segment t 55,774 55,429 56,097 (incl. components) kg/Veh. 50.96 54.13 56.51 Hazardous recyclable waste t 35,758 [119] 37,553 40,683 Automotive segment t 35,732 37,506 40,631 WASTEWATER LOAD [112] Unit 2017 2018 2019 (incl. components) kg/Veh. 32.65 36.62 40.93 Chemical oxygen demand kg 634,543 617,759 241,286 Non-production-specific t 6,413 5,583 5,763 recyclable waste Total phosphorous content kg 5,631 3,493 1,533 Automotive segment t 6,364 5,544 5,722 as phosphorous (P) (incl. components) kg/Veh. 5.81 5.41 5.76 Total nitrogen as nitrogen (N) kg 35,104 36,026 16,175 Disposable waste t 10,773 [119] 7,405 3,784 Zinc kg 853 284 107 Automotive segment t 10,715 7,306 3,691 (incl. components) kg/Veh. 9.79 7.13 3.72 Other disposable waste t 257 289 413 Automotive segment t 233 244 381 (incl. components) kg/Veh. 0.21 0.24 0.38 Hazardous disposable waste t 10,001 [119] 6,116 3,182 Automotive segment t 9,977 6,063 3,121 (incl. components) kg/Veh. 9.12 5.92 3.14 Non-production-specific t 516 1,000 189 disposable waste Automotive segment t 505 999 189 (incl. components) kg/Veh. 0.46 0.98 0.19 Metallic waste t 363,643 345,827 320,841 (scrap; completely recyclable) Automotive segment t 363,081 345,228 320,247 (incl. components) kg/Veh. 331.73 337.12 322.61 Audi Sustainability Report 2019 107 Progress you can feel

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EMPLOYEES AND SOCIETY AGE STRUCTURE [203] [204] Unit 2017 2018 2019

WORKFORCE Unit 2017 2018 2019 < 30 years Percent 17.3 15.7 14.3

Audi Group workforce [201] Total 90,402 91,477 90,783 30 to 50 years Percent 54.9 54.9 55.1 Domestic companies [201] Total 59,448 59,754 60,083 30 to 50 years Percent 27.8 29.4 30.6

of which AUDI AG Total 58,493 58,813 58,940

Ingolstadt plant Total 42,498 42,784 42,904 PROPORTION OF WOMEN Unit 2017 2018 2019

[203] Neckarsulm plant Total 15,995 16,029 16,036 Audi Group Percent 14.6 14.9 15

Foreign companies [201] Total 27,904 28,702 27,669 AUDI AG Percent 15.2 15.4 15.6 of which apprentices Percent 29.1 27.2 25.5 Audi Brussels S.A./N.V. Total 2,656 2,768 2,922 of which industrial apprentices Percent 26.3 24.2 22.3 Audi Hungaria Zrt. [202] Total 11,888 12,825 13,079 of which clerical apprentices Percent 80.6 81.1 80.6 Audi México S.A. de C.V. Total 6,211 5,682 5,268 Management [212] Percent 10.1 10.9 11.9 Automobili Lamborghini S.p.A. Total 1,465 1,643 1,788 Audi Brussels S.A./N.V. Percent 6.5 6.7 6.9 Ducati Motor Holding S.p.A. Total 1,240 1,278 1,290 Audi Hungaria Zrt. Percent 12.3 12.8 13 Apprentices [201] Total 2,618 2,582 2,585 Audi México S.A. de C.V. Percent 13.3 13.8 14.2 Automobili Lamborghini S.p.A. Percent 20.3 20.2 20.5 Ducati Motor Holding S.p.A. Percent 18.3 18.4 19 Temporary workforce, Audi Group Total 3,395 2,527 1,957 Average Years 17.0 17.5 17.9 length of service [203] [204] Turnover rate [203] [204] Percent 0.8 0.9 0.7 AVERAGE TRAINING TIME PER EMPLOYEE [214] New hires, Audi Group Total 6,125 5,004 4,214 Unit 2017 2018 2019 New hires, AUDI AG Total 1,445 1,628 1,310 Training time, total Hours 16.2 13.7 13 Average age [203] [213] Years 40.8 41.2 41.5 Production employees Hours 11.1 8.6 8.3 Share of production employees Percent 48.9 48.4 48.5 Non-production employees Hours 21.2 18.2 16.7 Share of production employees Percent 48.0 48.6 48.5 Employees in management positions Hours 19.3 21.1 23.8 Audi Sustainability Report 2019 108 Progress you can feel

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OTHER STRUCTURAL DATA 2017 2018 2019 [1] Fully electric vehicle [2]  Attendance rate [203] [204] [205] Percent 95.5 95.2 95.3 Plug-in hybrid drive [3] Production locations 2019: as at Jan. 30, 2020 [204] [206] Frequency of accidents - 5.0 5.6 6.2 [4] The basis for determining and selecting stakeholders is the Stakeholder Engage- Proportion of academics [204] [207] Percent 49.9 50.9 51.4 ment Standard AccountAbility 1000 (AA1000SES) and its associated principles of inclusivity, materiality and responsiveness. Proportion of foreign nationals [204] Percent 8.4 8.4 8.3 [5] Planned for fall 2019, implemented at the start of 2020 [6] Adjustment of the target range of 6.5 to 7.0 percent to 5.0 to 6.0 percent due Proportion of people with Percent 6.1 6.5 6.7 to the relocation of R&D volumes to the Car.SW Org. and further use of Group severe disabilities [203] [204] synergies. Contracts to workshops for people EUR million 7.0 7.9 7.3 [7] Adjustment of the target range from 5.5 to 6.0 percent to 5.0 to 6.0 percent due [204] with mental disabilities to optimization of the ratio of capex. [8] Adjustment of the measure due to an additional shift in demand towards PHEV. [9] European market [10] Deadline corrected from 2019 to 2020 due to a development delay. Unit 2017 2018 2019 [11] Specification of the deadline for the implementation of the 10%. However, ex- pansion remains an ongoing and needs-based measure. Audi profit share EUR 4,770 3,630 3,880 [12] The planned expansion for 2019 was implemented. Adjustment of the target [208] per employee deadline to completion of the entire measure. Employee donations [209] [211] EUR 1,270,189 1,283,502 1,296,507 [13] Introduction of a homologated small-series vehicle stopped due to changed planning assumptions; however, further development of fuel cell technology Expenditure on corporate EUR million 20.6 16.5 17.5 citizenship [210] [211] (module/tank development/production technology). [14] Deadline corrected from 2025 to 2026 due to changed planning assumptions in Part-time employees [204] Total 3,703 3,924 4,448 the Group [15] The market introduction of synthetic liquid fuels by AUDI AG is currently suspend- Employees on parental leave [204] Total 3,117 3,439 3,753 ed owing to a change in strategic direction. Number of female employees Total 1,107 1,229 1,448 [16] Deadline corrected from 2019 to 2021 due to reprioritization of technological [204] on parental leave supplementary measures at the PtG plant in Werlte Number of male employees Total 2,010 2,210 2,305 [17] Deadline corrected: The measure “Development and advancement of synthet- on parental leave [204] ic liquid fuels under the Audi e-fuels umbrella brand (e-diesel, e-gasoline and Average duration of Duration 9 9 9 e-ethanol)” from the 2018 sustainability report was amended due to a change in parental leave [204] strategic direction.

[100] 2019 values influenced by the deconsolidation of multibrand sales companies as at January 1, 2019. Further information on this is included in the Financial AUDI IDEAS PROGRAM [204] Unit 2017 2018 2019 Report, e.g. on page 36 f. [101]  Savings EUR million 108.6 109.1 101.3 The ratio of capex includes investments in property, plant and equipment, invest- ment property and other intangible assets according to the Cash Flow Statement Implementation quota 54.9 55.5 54.4 Percent in relation to revenue. Audi Sustainability Report 2019 109 Progress you can feel

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[102] Net cash flow taking into account the transfer of the minority interest in [114] The measure “Analyze CO₂ emissions in the supply chain and derive potential Volkswagen Group Services S.A., Brussels (Belgium), to Volkswagen AG, measures for their reduction” from the 2018 sustainability report was defined in Wolfsburg, in 2017 more detail for the 2019 program and thus cannot be found under this name. The [103] This includes Audi models built locally by the associated company planned measures for 2019 were implemented. FAW-Volkswagen Automotive Company, Ltd., Changchun (China). [115] Percentage decline from 40 to 30 percent due to change in the reference value (in- [104] This includes delivered vehicles built locally by the associated company crease in freshwater requirements at the Ingolstadt site) FAW-Volkswagen Automotive Company, Ltd., Changchun (China). [116] The energy intensity indicated refers to automotive production (incl. component [105] The deconsolidation of the multibrand sales companies took place as at manufacturing). This is calculated by dividing the overall energy consumption of the January 1, 2019. Further information on this is provided in the Financial car and component plants by the number of cars built at the sites. Report on page 8. [117] ISO 14001: Neckarsulm, Győr, Brussels, San José Chiapa, Sant’Agata Bolognese, [106] Figures refer to the Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Bologna and São José dos Pinhais sites; ISO 50001: Ingolstadt, Neckarsulm, Győr, Győr, San José Chiapa (since 2016), Sant’Agata Bolognese (Lamborghini), Brussels, San José Chiapa, and Sant’Agata Bolognese sites. Bologna (Ducati), Amphur Pluakdaeng (Ducati) (since 2017) sites. Only [118] The prior-year figures of certain key financial figures have been adjusted to reflect car-producing sites including component manufacturing are considered for the first-time adoption of IFRS 9 and IFRS 15 (see also the disclosures on IFRS 9 the specific key figures. The environmental key figures for the respective and IFRS 15 in the Notes to Consolidated Financial Statements) current year are provisional data, which are replaced by the final result in [119] Changes to figures for 2017 result from retroactive adjustments in 2019, which the following year. In this report, the provisional figures for 2018 were were due to modified year-end figures updated with the relevant figures as of year-end 2018. [107] Total energy consumption: This figure is made up of electricity and heat consumption as well as the use of fuel gases for production processes and externally supplied refrigeration at the plant. [108] Direct CO₂ emissions: This figure is made up of CO₂ emissions generated by [201] Annual average figure. the use of fuel at the plant and CO₂ emissions produced by the operation of [202] With effect from January 1, 2017, the fully consolidated Audi Hungaria Motor Kft., test rigs. Győr (Hungary), was merged with the fully consolidated Audi Hungaria Services Zrt., [109]VOC emissions (volatile organic compounds): This figure is made up of Győr, and renamed Audi Hungaria Zrt., Győr. emissions from the paint shops, test rigs and other facilities. [203] Excluding apprentices [110]Direct NOx emissions: This figure is made up of NOx emissions caused by [204] AUDI AG the boiler houses at the plant, by paint shops and by the operation of test [205] The attendance rate is calculated using the formula 100 − (sick days/payment-rele- rigs. vant days) x 100. [111]Transportation of vehicles from Ingolstadt to Emden, the port of loading on [206] The accident frequency figure indicates how many industrial accidents involving one or the North Sea coast; since October 2012, also from Neckarsulm; since 2015, more days’ work lost occur per million hours worked. the figure is given in t CO₂e. Since July 2017, rail transport in Germanyhas [207] With respect to non-production employees been handled by DB Schenker entirely CO₂-neutrally: All shipments from [208]  Payment in the following year; until 2016, figure for a specific reference skilled work- and to the German production locations Ingolstadt and Neckarsulm oper- er; as of 2017, average figure for a skilled worker at AUDI AG ated by DB Schenker are CO₂-free. [209]AUDI AG Christmas donation and “Last Cents” campaign [112]Direct dischargers: Münchsmünster, San José Chiapa sites; indirect [210] Includes expenditure in the fiscal year in the areas of education, science, foundations; dischargers: Ingolstadt, Münchsmünster, Neckarsulm, Brussels, Győr, including donations; not including sponsorship and research Sant’Agata Bolognese (Lamborghini), Bologna (Ducati), Amphur Pluak- [211]Included respectively in the year 2019: Company top-up to the Christmas donation daeng (Ducati) sites (since 2017) EUR 257,984.00 [113]The measure “Successive decarbonization of the supply chain together with [212] Excluding leave on partial retirement phase suppliers” from the 2018 sustainability report was defined as a target for [213] Excluding fixed-term employees the 2019 program and supplemented by additional measures. [214] With respect to non-production employees Audi Sustainability Report 2019 110 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Fuel consumption and emission figures Model Combined fuel consumption Combined CO2 emissions [l/100 km] [g/km] As at: January 2020 (All data apply to features of the German market.) Audi e-tron Current consumption 0–0 24.3–21.0 kWh/100km Audi e-tron Sportback Current consumption 0–0 Model Combined fuel consumption Combined CO2 emissions [l/100 km] [g/km] 23.9–20.6 kWh/100km Audi A1 Sportback 6.0–4.7 137–107 Audi Q7 9.1–6.6 208–64

Audi A1 citycarver 5.5–5.1 124–117 Audi Q8 9.1–6.5 208–172

Audi Q2 6.7–4.4 153–115 Audi A8 8.3–5.7 190–57

Audi Q3 7.6–4.7 174–124 Audi A8 L 8.3–5.8 190–57

Audi Q3 Sportback 7.7–4.7 174–123 Audi R8 Coupé 13.1–12.9 298–293

Audi A3 Sportback 6.6–3.5 149–43 Audi R8 Spyder 13.3–13.0 302– 297

Audi A3 Sedan 6.5–4.2 148–109

Audi A3 Cabriolet 6.8–5.2 155–119

Audi TT Coupé 7.0–6.0 161–137 The specified fuel consumption and emissions data have been determined according to the mea- surement procedures prescribed by law. Since September 1, 2017, certain new vehicles are already Audi TT Roadster 7.3–6.3 166–143 being type-approved according to the Worldwide Harmonized Light Vehicles Test Procedure (WLTP), a more realistic test procedure for measuring fuel consumption and CO emissions. Starting on Audi A4 Sedan 6.7–3.7 157–98 2 September 1, 2018, the New European Driving Cycle (NEDC) will be replaced by the WLTP in stages. Audi A4 Avant 6.8–3.8 160–100 Owing to the more realistic test conditions, the fuel consumption and CO₂ emissions measured ac- cording to the WLTP will, in many cases, be higher than those measured according to the NEDC. For Audi A4 allroad quattro 6.8–5.0 164–132 further information on the differences between the WLTP and NEDC, please visit www. audi.de/wltp. We are currently still required by law to state the NEDC figures. In the case of new vehicles which A5 Sportback 6.8–3.7 158–98 have been type-approved according to the WLTP, the NEDC figures are derived from the WLTP data. It is possible to specify the WLTP figures voluntarily in addition until such time as this is required by Audi A5 Coupé 6.7–3.7 158–98 law. In cases where the NEDC figures are specified as value ranges, these do not refer to a particu- lar individual vehicle and do not constitute part of the sales offering. They are intended exclusively Audi A5 Cabriolet 7.0–4.0 163–106 as a means of comparison between different vehicle types. Additional equipment and accessories (e.g. add-on parts, different tire formats, etc.) may change the relevant vehicle parameters, such as Audi Q5 7.5–4.4 172–46 weight, rolling resistance and aerodynamics, and, in conjunction with weather and traffic conditions and individual driving style, may affect fuel consumption, electric power consumption, CO₂ emis- Audi A6 Sedan 7.4–4.0 170–39 sions and the performance figures for the vehicle.

Audi A6 Avant 7.6–4.1 174–108 Further information on official fuel consumption figures and the official specific CO₂ emissions Audi A6 allroad quattro 7.6–5.8 174–152 of new passenger cars can be found in the “Guide on the fuel economy, CO₂ emissions and power consumption of all new passenger cars models,” which is available free of charge at all sales deal- Audi A7 Sportback 7.5–4.4 172–40 erships, from DAT Deutsche Automobil Treuhand GmbH, Hellmuth-Hirth-Str. 1, 73760 Ostfildern, Germany and at www.dat.de. Audi Sustainability Report 2019 111 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely nt with G Thanks to brand diferen- e approach on the cont RI s tiation, Audi intends to of ta become number one for data highway n Operating without ethics on d customer experience. Then s a and a sense of proportion i the plan will succeed. r r Data protection in harmony with a d does not work. An overview p the law and legislation: Audi com- s of how compliance, integri- m plies fully with applicable national o ty and culture provide guid- C ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. success. An overview of the various data pro- tection measures.

utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi GRI criteria Ho last detail s Better safe than sorry d r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i parts of its value chain. An s G o h Accident Research Unit (AARU). A report. n t overview of key improve- i o f w ments and initiatives. c t o n n e t t e n n o t c w f o i t n h

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2, decarboniz ate (CO ation in Clim dex) Sustainability Roadmap Comparison with the targets of the sustainability program SDG Sustainable Development Goals Top topics from the (SDGs): Allocation of the 17 global materiality analysis goals for sustainable development

(corporate gove ance rnan ern inable operati ce Materiality analysis ov susta ons) as G for a sis What concerns stakeholders, what do they ba expect from Audi? Selection of the most im- Strategy Strategy portant results of the materiality analysis

In the "Strategy" section, the articles shed light on the ESG criteria corporate strategy newly adopted in 2019, "consistently Chapter reference for the capital-market- Audi," and on the background to and the development relevant criteria of Environment, Social history of the sustainability report for 2019. and Governance (ESG)

The following four chapters each have the same structure: Core model lines they start with a "lead story" that addresses the most rel- The outline of the Audi Sustainability Program evant topic area of this section as defined by the material- combines strategic goals with concrete mea- ity analysis (page 22). Next, there is a second larger story, sures in an understandable manner which delves into one aspect of the value chain (page 10) – always with a view to the electrification strategy of Audi. Consistently sustainable This is followed by further topics classed as relevant for Important pillars of the corporate reporting (page 14). strategy "consistently Audi" GRI 102-46, 102-47, 102-48 Audi Sustainability Report 2019 112 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely nt with G Thanks to brand diferen- e approach on the cont RI s tiation, Audi intends to of ta become number one for data highway n Operating without ethics on d customer experience. Then s a and a sense of proportion i the plan will succeed. r r Data protection in harmony with a d does not work. An overview p the law and legislation: Audi com- s of how compliance, integri- m plies fully with applicable national o ty and culture provide guid- C ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. success. An overview of the various data pro- tection measures.

utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi GRI criteria Ho last detail s Better safe than sorry d r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i parts of its value chain. An s G o h Accident Research Unit (AARU). A report. n t overview of key improve- i o f w ments and initiatives. c t o n n e t t e n n o t c w Benefiting f o i t n h

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a e l s th u ( approach (n y it m r o products and services, Audi o Fair working condi- n g tions and modern o Less is e working forms c n e ox ar id ul more es irc , p /c ar es Audi carefully analyzes the ti rc cu ou environmental aspects of its lat es e m f r worldwide manufacturing net- United for a n o tte tio r, n va work – with the vision of build- your health ois ser e) Con ing its cars in carbon-neutral plants by 2025. The most im- relies on long-term relation- C How Audi is minimizing work-relat- o portant key figures in 2019. m ed accidents and improving health p a r resources for its workforce. is o Owners of an Audi expect digitally n o f c Stronger together s o rd The past has shown n Flow of knowledge a te d n As a large industrial corporation, n t ta w This is how employees of the Four Rings be- Audi is mindful of its responsibility s i I th R come fit for the future of electric mobility – toward society and the environ- G G h ships with its customers. R visiting training measures on site. ment – and uses its impact to meet it I st w a this responsibility along the entire nt nd e a value chain. nt rd o s f c connected vehicles and services. As o on ris pa Topics that operating without m Thanks to a brand-differen- Co Story that documents the com- ethics and a sense of part of that, customers depend on tiating customer experience their personal data being safe – re- proportion does not (CE), the company intends mitment of Audi. For example, the work. But what does gardless of whether it is in the vehi- section "Operations & Integrity" to become number one for cle, in the cloud or on Audi servers. ethical operation mean customer experience. for Audi? putation ration/re (oekom nside Ratin ic co g, S list IS) Sustainability Roadmap Ho Comparison with the targets of the sustainability program SDG Sustainable Development Goals Long-term (SDGs): Allocation of the 17 global customer goals for sustainable development Ethical relationships Data protection operations and security

Governance Materiality analysis What concerns stakeholders, what do they Operations expect from Audi? Selection of the most im- Operations & portant results of the materiality analysis & Integrity Integrity ESG criteria Chapter reference for the capital-market- The materiality analysis (page 22) provides informa- relevant criteria of Environment, Social tion on the relevance of defined action areas for Au- and Governance (ESG) di’s stakeholders. For the section "Operations & Integrity," the topics "ethical operations," "long-term Core model lines customer relationships" and "data protection and The outline of the Audi Sustainability Program data security" were ranked as most important. The combines strategic goals with concrete mea- corresponding article starts on page 24. sures in an understandable manner

Equally high relevance is also afforded to the topic of Consistently sustainable "economic stability," which this sustainability report Important pillars of the corporate addresses in detail (page 35). strategy "consistently Audi" GRI 102-46, 102-47, 102-48 Audi Sustainability Report 2019 113 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely nt with G Thanks to brand diferen- e approach on the cont RI s tiation, Audi intends to of ta become number one for data highway n Operating without ethics on d customer experience. Then s a and a sense of proportion i the plan will succeed. r r Data protection in harmony with a d does not work. An overview p the law and legislation: Audi com- s of how compliance, integri- m plies fully with applicable national o ty and culture provide guid- C ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. success. An overview of the various data pro- tection measures.

utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi GRI criteria Ho last detail s Better safe than sorry d r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i parts of its value chain. An s G o h Accident Research Unit (AARU). A report. n t overview of key improve- i o f w ments and initiatives. Full of power c t o n n e t t e n n o t c w f o i t n h

o G s ) i x R

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i Data protection t Ethical Comparison with the standards of m a and security n n o o Top topics from d C i Governance t a a the materiality r z i d n analysis C s o o n b Consistency in r s Full of power a e c r e v Operations E Vehicle safety a sustainability d n When it comes to drive systems, v t , i a i o 2 r Audi is pursuing a holistic approach: s o n O a & n The interview Hildegard Wortmann, C ) m o from e-tron to the expansion of the When it comes to drive sys- ( e s c n e f Board Member for Sales and Market- e n o Integrity n r t a i charging infrastructure, from solu- t t e a n ing, and Peter Kössler, Board Mem- r a ( s r e o tions for the last mile to refueling with m e e l ber for Production and Logistics, i v e u l p green electricity, from hybrids to hy- o Products c r C o c talk about how they are responsible g t e e r drogen cars. The most important key i the Global Reporting Initiative (GRI) e l s fi t Services for sustainability. Top topics from b Alternative a c parameters. a r a the materiality n drive technologies o t i & i p a o analysis r t n o s

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lectrifiicatio Materiality analysis ent (e n offf nm ens iro ive nv ) What concerns stakeholders, what do they E Products expect from Audi? Selection of the most im- Products & portant results of the materiality analysis & Services Services ESG criteria Chapter reference for the capital-market- In the area of "Products & Services," according to relevant criteria of Environment, Social the materiality analysis (page 22), the greatest and Governance (ESG) relevance is afforded to the topic of "vehicle safety," followed by "alternative drive technologies" and Core model lines "transparency with respect to resource conservation The outline of the Audi Sustainability Program and life cycle assessment.“ combines strategic goals with concrete mea- sures in an understandable manner The topics "combustion engines with future viability" and "sustainable system offering," were also ranked Consistently sustainable highly, which is why these topics play a prominent Important pillars of the corporate role in the article on "alternative drive technologies" strategy "consistently Audi" (page 46). GRI 102-46, 102-47, 102-48 Audi Sustainability Report 2019 114 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely nt with G Thanks to brand diferen- e approach on the cont RI s tiation, Audi intends to of ta become number one for data highway n Operating without ethics on d customer experience. Then s a and a sense of proportion i the plan will succeed. r r Data protection in harmony with a d does not work. An overview p the law and legislation: Audi com- s of how compliance, integri- m plies fully with applicable national o ty and culture provide guid- C ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. success. An overview of the various data pro- tection measures.

utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi GRI criteria Ho last detail s Better safe than sorry d r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i parts of its value chain. An s G o h Accident Research Unit (AARU). A report. n t overview of key improve- i o f w ments and initiatives. c t o n n e t t e n n o t c w f o i t Less is more n h

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The stories on these topics are featured in the Consistently sustainable sustainability report starting on page 61. Important pillars of the corporate strategy "consistently Audi" GRI 102-46, 102-47, 102-48 Audi Sustainability Report 2019 115 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

Comparison of content with GRI s tandards

Draw on customer experiences Three-pillar Traveling safely nt with G Thanks to brand diferen- e approach on the cont RI s tiation, Audi intends to of ta become number one for data highway n Operating without ethics on d customer experience. Then s a and a sense of proportion i the plan will succeed. r r Data protection in harmony with a d does not work. An overview p the law and legislation: Audi com- s of how compliance, integri- m plies fully with applicable national o ty and culture provide guid- C ance at Audi and ensure laws on personal data, data protec- the company’s long-term tion and personal rights to privacy. success. An overview of the various data pro- tection measures.

utation (oekom tion/rep Rating, sidera SIS) Down to the c con listi GRI criteria Ho last detail s Better safe than sorry d r a To become the leading car- C d o n There is a reason why people feel safe while m a bon-neutral premium pro- t p s driving an Audi: It is safe! We owe that in vider, Audi is optimizing all a I r R part to the work of the experts at the Audi i parts of its value chain. An s G o h Accident Research Unit (AARU). A report. n t overview of key improve- i o f w ments and initiatives. c t o n n e t t e n n o t c w f o i t n h

o G s ) i x R

Long-term r customer e relationships I a d

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i Data protection t Ethical Comparison with the standards of m a and security n n o o Top topics from d C i Governance t a a the materiality r z i d n analysis C s o o n b Consistency in r s Full of power a e c r e v Operations E Vehicle safety a sustainability d n When it comes to drive systems, v t , i a i o 2 r Audi is pursuing a holistic approach: s o n O a & n The interview Hildegard Wortmann, C ) m o ( e s from e-tron to the expansion of the c n e f Board Member for Sales and Market- e n o Integrity n r t a i charging infrastructure, from solu- t t e a n United for ing, and Peter Kössler, Board Mem- a ( s r r e o tions for the last mile to refueling with m e e l ber for Production and Logistics, i v e u l p green electricity, from hybrids to hy- o Products c r C o c talk about how they are responsible g t e e r drogen cars. The most important key i the Global Reporting Initiative (GRI) e l s fi t Services for sustainability. Top topics from b Alternative a c parameters. a r a the materiality n drive technologies o t i & i p a o analysis r t n o s

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s i

i v n

s r e

a e ) Integrated and v b SUSTAINABLE Transparency for o resources and G well thought out S life cycle assessment your health o

O c i Employees Thinking consistently from start n a l e ( to finish: The life cycle assess- f S o o c c ment of a vehicle shows where its u i a s environmental footprint arises. l i c Society& ) s s r t The most important facts about o it Circular economy n e n r a the complex analyses. t i l Equal opportunity, r a & p a b / integration and in e n i c o n o Value Creation ti diversity g c Emissions and m u a e d n a o energy management d v Production r d a l p in the factory ev lu ra e e d t lo ri eu pm ve ₂-n e r fo CO Viable nt r A t ( ) Audi embraces diversity .) udi en l . nm a viro i En r value creation e Audi embraces Sustainability t The most varied career paths, standards in the Audi employs an integrated supply chain a Not just a single closed circle, but nationalities and biographies: employees re- m y Occupational health r several along the entire automotive port on their work at Audi a and safety d – from a very personal perspective. n value chain: Experts at Audi analyze o c and identify the opportunities and e s H f risks of a circular economy. e o Flow of knowledge a e l s th u ( (n y it m r o o Fair working condi- g tions and modern n Less is e working forms o n ec occupational safety system o r x a id ul more es irc , p /c diversity ar es Audi carefully analyzes the ti rc cu ou environmental aspects of its lat es e m f r worldwide manufacturing net- United for a n o tte tio r, n va work – with the vision of build- your health ois ser e) Con ing its cars in carbon-neutral plants by 2025. The most im- C How Audi is minimizing work-relat- o portant key figures in 2019. m ed accidents and improving health and comprehensive health p a r resources for its workforce. is o n By 2025, Audi intends to o f c Stronger together s o rd n Flow of knowledge a te d n As a large industrial corporation, n t ta w This is how employees of the Four Rings be- Audi is mindful of its responsibility s i I th come fit for the future of electric mobility – R G toward society and the environ- G R h I visiting training measures on site. ment – and uses its impact to meet it s w The most varied of career ta t this responsibility along the entire n management system to min- nd e a value chain. nt rd o s f c o launch dozens of electrified on ris pa Topics m imize work-related accidents paths, nationalities and Co Story that documents the com- models on the market. That requires expertise – which and improve the health biographies: employees mitment of Audi. For example, the Audi employees acquire resources for its workforce. report on their work at section "Operations & Integrity" through specially tailored Audi – from a very person- training and development al perspective programs. A report rcular economy (u ces/ci se of sour sec f re on n o da tio ry Sustainability Roadmap va ma er te ns ri Comparison with the targets of Co al) the sustainability program SDG Sustainable Development Goals Occupational (SDGs): Allocation of the 17 global health Fair working Equal and safety goals for sustainable development conditions opportunity, and modern integration working forms and diversity me a value dr beco iver f ria d d or A Materiality analysis rite ining an evelopm ud l c n tra ent i. ia is o .) oc us What concerns stakeholders, what do they (S oc e f On Employees expect from Audi? Selection of the most im- Employees & portant results of the materiality analysis & Society Society ESG criteria Chapter reference for the capital-market- According to the materiality analysis (page 22), relevant criteria of Environment, Social Audi stakeholders afford the utmost priority in the and Governance (ESG) section "Employees & Society" to the topic of "fair working conditions and modern working forms." Core model lines The outline of the Audi Sustainability Program "Occupational health and safety" and "equal oppor- combines strategic goals with concrete mea- tunities, integration and diversity" were also ranked sures in an understandable manner highly. All three topics are discussed in detail in this report starting on page 82. Consistently sustainable Important pillars of the corporate strategy "consistently Audi" GRI 102-46, 102-47, 102-48 Audi Sustainability Report 2019 116 Progress you can feel

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Independent Practitioner’s Report on a Limited Assurance Engagement on Sustainability Information1

To AUDI AG, Ingolstadt Responsibilities of the Executive Directors Independence and Quality Control of the Practitioner’s Responsibility We have performed a limited assurance en- The executive directors of the Company are Audit Firm Our responsibility is to express a limited as- gagement on the disclosures denoted with responsible for the preparation of the Report We have complied with the German profes- surance conclusion on the disclosures deno- “√” in the table “Audi Sustainability Key Figu- in accordance with the principles stated in sional provisions regarding independence as ted with “√” in the table “Audi Sustainability res” as well as on the management approa- the Sustainability Reporting Standards of the well as other ethical requirements. Key Figures” as well as on the management ches on product-related CO2 emissions and Global Reporting Initiative (hereinafter the Our audit firm applies the national legal re- approaches on product-related CO2 emissi- employer attractiveness in the Sustainability “GRI-Criteria”) and for the selection of the quirements and professional standards – in ons and employer attractiveness in the Re- Report 2019 of AUDI AG, Ingolstadt (herei- disclosures to be evaluated. particular the Professional Code for German port based on the assurance engagement we nafter the “Company”), for the period from Public Auditors and German Chartered Audi- have performed. 1 January to 31 December 2019 (hereinafter This responsibility of Company’s executive tors (“Berufssatzung für Wirtschaftsprüfer the “Report”). directors includes the selection and applica- und vereidigte Buchprüfer”: “BS WP/vBP”) Within the scope of our engagement we did tion of appropriate methods of sustainability as well as the Standard on Quality Control 1 not perform an audit on external sources of reporting as well as making assumptions and published by the Institut der Wirtschaftsprü- information or expert opinions, referred to in estimates related to individual sustainabi- fer (Institute of Public Auditors in Germany; the Report. * PricewaterhouseCoopers GmbH has performed a limited assurance engagement on the German versi- lity disclosures, which are reasonable in the IDW): Requirements to quality control for on of the Sustainability Report 2019 of AUDI AG and circumstances. Furthermore, the executive audit firms (IDW Qualitätssicherungsstan- We conducted our assurance engagement in issued an independent assurance report in German directors are responsible for such internal dard 1: Anforderungen an die Qualitätssiche- accordance with the International Standard language, which is authoritative. The following text control as they have considered necessary rung in der Wirtschaftsprüferpraxis - IDW on Assurance Engagements (ISAE) 3000 (Re- is a translation of the independent assurance report. ** The Sustainability Report 2019 of AUDI AG pre- to enable the preparation of a Report that is QS 1) – and accordingly maintains a compre- vised): “Assurance Engagements other than sented for the issuance of the Independent Practitio- free from material misstatement whether hensive system of quality control including Audits or Reviews of Historical Financial In- ner’s Report is available on the webpage of AUDI AG: due to fraud or error. documented policies and procedures regar- formation”, issued by the IAASB. This Stan- www.audi.com/sustainability_report. The Company is ding compliance with ethical requirements, dard requires that we plan and perform the responsible for its website. Accordingly, we assume no responsibility for any changes in the presentati- professional standards and applicable legal assurance engagement to allow us to conclu- on of content subject to the assurance procedures and regulatory requirements. de with limited assurance that nothing has described in this Independent Practitioner’s Report that occurred after the date of this Independent Practitioner’s Report. Audi Sustainability Report 2019 117 Progress you can feel

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come to our attention that causes us to Obtaining an understanding of the struc- Assurance Conclusion believe that the disclosures denoted with “√” ture of the sustainability organization and Based on the assurance procedures perfor- in the table “Audi Sustainability Key Figures” of the stakeholder engagement med and assurance evidence obtained, no- as well as the management approaches on Assessment of the management approach thing has come to our attention that causes product-related CO2 emissions and employer on product-related CO2 emissions and the us to believe that the disclosures denoted attractiveness in the Company’s Report for management approach on employer at- with “√” in the table “Audi Sustainability Key the period from 1 January to 31 December tractiveness against the requirements of Figures” as well as the management appro- 2019 have not been prepared, in all materi- the GRI Standards pursuant to Disclosures aches on product-related CO2 emissions and al aspects, in accordance with the relevant 103-1, 103-2 and 103-3 employer attractiveness in the Company’s GRI-Criteria. Inspection of relevant documents and in- Report for the period from 1 January to 31 quiries of personnel regarding the data December 2019 have not been prepared, in In a limited assurance engagement, the as- collection and consolidation processes of all material aspects, in accordance with the surance procedures are less in extent than the selected disclosures in the Report as relevant GRI-Criteria. for a reasonable assurance engagement well as the internal control system relating and therefore a substantially lower level of to these processes Intended Use of the Assurance Report assurance is obtained. The assurance proce- Analytical evaluation of selected disclosu- We issue this report on the basis of the en- dures selected depend on the practitioner’s res in the Report gagement agreed with the Company. The judgment. Evaluation of the implementation of cent- assurance engagement has been performed ral management requirements, processes for purposes of the Company and the report Within the scope of our assurance engage- and specifications regarding data collecti- is solely intended to inform the Company as ment, we performed amongst others the on through on-site visits at selected sites to the results of the assurance engagement. following assurance procedures and further of the Company: The report is not intended to provide third activities: parties with support in making (financial) AUDI AG, Ingolstadt, Germany decisions. Our responsibility lies solely to- AUDI AG, Neckarsulm, Germany ward the Company. We do not assume any AUDI HUNGARIA Zrt., Győr, Hungary responsibility towards third parties.

Assessment of the aggregation of selected Frankfurt am Main, 13 May 2020 disclosures in the Report on group level PricewaterhouseCoopers GmbH Comparison of selected disclosures with Wirtschaftsprüfungsgesellschaft corresponding data in the consolidated fi- nancial statements and in the group ma- nagement report 2019 of the Company Nicolette Behncke ppa. Mirjam Kolmar Evaluation of the presentation of the infor- Wirtschaftsprüfer mation (German Public Auditor) Audi Sustainability Report 2019 118 Progress you can feel

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GRI content index

The Audi Group is reporting on its sustainability performance for the year 2019 pursuant to the international standard of the Global Reporting Initiative (GRI). This report was prepared in accordance with the “core” option of the GRI Standards.

The information in this report was chosen on the basis of a materi- ality analysis performed in 2019. The report was submitted to GRI for the performance of the GRI Materiality Disclosures Service. GRI confirmed the proper positioning of the materiality-related disclo- sures (102-40 to 102-49). The German version of the Sustainabili- ty Report was used for this service.

GRI Standards Page Statement/comment GRI Standards Page Statement/comment

General Disclosures GRI 102-6: Markets served 4

GRI 101: Foundation 2016 GRI 102-7: Scale of the organization 4, 88, 107

GRI 102: General Disclosures 2016 GRI 102-8: Information on employees and other 88, 107 workers Organizational profile GRI 102-9: Supply chain 11, 65ff GRI 102-1: Name of the organization 4 GRI 102-10: Significant changes to the 35ff GRI 102-2: Activities, brands, products 4 organization and its supply chain and services GRI 102-11: Precautionary principle or approach 35ff GRI 102-3: Location of headquarters 4 GRI 102-12: External initiatives 21 GRI 102-4: Location of operations 4 GRI 102-13: Membership in associations 21 GRI 102-5: Ownership and legal form 4 and other interest groups Audi Sustainability Report 2019 119 Progress you can feel

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GRI Standards Page Statement/comment GRI Standards Page Statement/comment

Strategy GRI 102-26: Role of highest governance body in 15ff, 18f setting targets, values, and strategies GRI 102-14: Statement from senior 3, 6ff GRI 102-27: Collective knowledge of highest FR (p. 58) decision-maker governance body GRI 102-15: Key impacts, 6ff, 25ff, GRI 102-28: Evaluating the highest governance 18-19 risks and opportunities 35ff, 62ff body's performance Ethics and integrity GRI 102-29: Identifying and managing economic, 20f, 22f GRI 102-16: Values, principles, standards, 18f, 25ff, environmental, and social impacts and norms of behavior 38ff GRI 102-30: Effectiveness of risk management FR (p. 89ff) GRI 102-17: Mechanisms for advice and 18f, 25ff processes concerns about ethics GRI 102-31: Review of economic, environmental, 22f Governance and social topics GRI 102-32: Highest governance body’s role in 22f, 102 GRI 102-18: Governance structure 18f sustainability reporting GRI 102-19: Delegating authority 18f GRI 102-33: Communicating critical concerns 25ff, FR (p. 89ff) GRI 102-20: Executive-level responsibility for 18f GRI 102-34: Nature and total number of critical FR (p. 102ff) economic, environmental, and social topics concerns GRI 102-21: Consulting stakeholders on 20f GRI 102-35: Remuneration policies FR (p. 69ff) economic, environmental, and social topics GRI 102-22: Composition of the highest governance FR (p. 66) GRI 102-36: Process for determining remuneration FR (p. 69ff) body and its committees GRI 102-37: Stakeholders' involvement in remunera- FR (p. 69ff) GRI 102-23: Chair of the highest governance body FR (p. 4ff, tion 66) GRI 102-24: Nominating and selecting the FR (p. 57f) highest governance body GRI 102-25: Conflicts of interest FR (p. 55ff)

FR = Audi Financial Report 2019. Download from: https://www.audi.com/de/company/investor-relations/reports-and-key-figures/annual-reports.htmlports.html Audi Sustainability Report 2019 120 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

GRI Standards Page Statement/comment GRI Standards Page Statement/comment

Stakeholder engagement Topic-specific disclosures

GRI 102-40: List of stakeholder groups 20f, 22f GRI 201: Economic Performance 2016

GRI 102-41: Collective bargaining agreements 40, 89 GRI 103-1: Explanation of the material 14, 22f. 25, topic and its boundary 35ff, 41, 112 GRI 102-42: Identifying and selecting 20 GRI 103-2: The management approach and 25, 35, 41 stakeholders its components GRI 102-43: Approach to stakeholder engagement 20 GRI 103-3: Evaluation of the management approach 20f, 37

GRI 102-44: Key topics and concerns raised 15ff, 22f GRI 201-1: Directly generated and 35ff, 103 Reporting practice distributed economic value GRI 201-2: Financial implications and other 6ff, 10ff, GRI 102-45: Entities included in the consolidated FR (p. 201) risks and opportunities due to climate change 35ff, FR financial statements GRI 201-3: Defined benefit plan obligations and FR (page GRI 102-46: Defining report content and topic 14, other retirement plans 166) boundaries 22f, 111ff GRI 202 Market Presence 2016 GRI 102-47: List of material topics 14, 22f, 111ff GRI 103-1: Explanation of the material 4, 14, 22f, GRI 102-48: Restatements of information 14, 102, topic and its boundary 88ff 111ff GRI 103-2: The management approach and 4, 88ff GRI 102-49: Changes in reporting 14, 22-23, its components 102 GRI 103-3: Evaluation of the management approach 20f, 37 GRI 102-50: Reporting period 102 GRI 202-1: Ratios of standard entry level wage by The bargaining part- GRI 102-51: Date of most recent report 102 gender compared with local minimum wage ners consider the ratio of the entry level wages GRI 102-52: Reporting cycle 102 to the statutory local minimum wage when GRI 102-53: Contact point for questions 20, 126 structuring compen- regarding the report sation as part of the collective bargaining GRI 102-54: Declaration on reporting in 118 process. accordance with the GRI Standards GRI 202-2: Proportion of senior management hired 88 GRI 102-55: GRI content index 118ff from the local community GRI 102-56: External assurance 116f

FR = Audi Financial Report 2019. Download from: https://www.audi.com/de/company/investor-relations/reports-and-key-figures/annual-reports.htmlports.html Audi Sustainability Report 2019 121 Progress you can feel

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GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 203: Indirect Economic Impacts 2016 GRI 205: Anti-corruption 2016

GRI 103-1: Explanation of the material 14, 22f, 35, GRI 103-1: Explanation of the material 14, 22f, 25ff topic and its boundary 93 topic and its boundary GRI 103-2: The management approach and 35, 93 GRI 103-2: The management approach and 25ff its components its components GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-3: Evaluation of the management approach 20f, 37

GRI 203-1: Infrastructure investments and 35ff, 70ff GRI 205-1: Operations assessed for risks related to 25ff services supported corruption GRI 203-2: Significant indirect 35ff, 62ff, GRI 205-2: Communication and training about 27ff economic impacts 85ff anti-corruption policies and procedures GRI 204: Procurement Practices 2016 GRI 205-3: Confirmed incidents of corruption 26 and actions taken GRI 103-1: Explanation of the material 14, 22f, 62ff, topic and its boundary 65ff, 114 GRI 206: Anti-competitive Behavior 2016 GRI 103-2: The management approach and 62ff, 65ff GRI 103-1: Explanation of the material 14, 22f, 25ff, its components topic and its boundary 41 GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-2: The management approach and 25ff, 41 its components GRI 204-1: Proportion of spending on 35ff local suppliers GRI 103-3: Evaluation of the management approach 20f, 37 GRI 206-1: Legal actions for 25ff anti-competitive behavior, anti-trust, and monopoly practices Audi Sustainability Report 2019 122 Progress you can feel

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GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 301: Materials 2016 GRI 303: Water and Effluents 2018

GRI 103-1: Explanation of the material 14, 22f, 62ff, GRI 103-1 (GRI 103: Management approach 2016): 14, 22f, 6ff, topic and its boundary 78f, 114 Explanation of the material topic and its boundary 69, 72, 80, 114 GRI 103-2: The management approach and 62ff, 78f its components GRI 103-2(GRI 103: Management approach 2016): 6ff, 69, 72, The management approach and its components 80f GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-3(GRI 103: Management approach 2016): 20f, 37 GRI 301-1: Materials used by weight or volume 64 Evaluation of the management approach

GRI 301-2: Recycled input materials used 62ff, 65ff GRI 303-1: Interactions with water as a shared re- 74, 106f source GRI 301-3: Reclaimed products and 62ff, 74 GRI 303-2: Management of water discharge-related 70, 74 their packaging materials impacts GRI 302 Energy 2016 GRI 303-3: Water withdrawal 70, 74 105-106 GRI 103-1: Explanation of the material 14, 22f, 6ff, topic and its boundary 69, 72, 81, GRI 303-4: Water recirculation 70, 74 114 105-106 GRI 103-2: The management approach and 6ff, 69, 72, GRI 303-5: Water consumption 70, 74 its components 81 105-106 GRI 103-3: Evaluation of the management approach 20f, 37 GRI 304: Biodiversity 2016

GRI 302-1: Energy consumption within 72ff, 104f GRI 103-1: Explanation of the material 14, 22f, 69ff, the organization topic and its boundary 114 GRI 302-2: Energy consumption outside of 72ff, 104f GRI 103-2: The management approach and 69ff the organization its components GRI 302-3: Energy intensity 72ff, 104f GRI 103-3: Evaluation of the management approach 20f, 37

GRI 302-4: Reduction of energy consumption 69, 72, 104f GRI 304-1: Operational sites owned, leased, managed 69ff in, GRI 302-5: Reductions in energy requirements 72ff or adjacent to protected areas and areas of high biodi- of products and services versity value outside protected areas GRI 304-2: Significant impacts of activities, 69ff products, and services on biodiversity GRI 304-3: Habitats protected or restored 71 Audi Sustainability Report 2019 123 Progress you can feel

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GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 305: Emissions 2016 GRI 307: Environmental Compliance 2016

GRI 103-1: Explanation of the material 14, 22f, 69ff, GRI 103-1: Explanation of the material 14, 22f, 25ff, topic and its boundary 72ff, 80f, topic and its boundary 51, 69, 72ff, 114 112, 114 GRI 103-2: The management approach and 69ff, 72ff, GRI 103-2: The management approach and 25ff, 51, 69, its components 80f its components 72ff GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-3: Evaluation of the management approach 20f, 37

GRI 305-1: Direct (Scope 1) GHG emissions 73, 75 GRI 307-1: Non-compliance with environmental laws 19, 25ff 105 and regulations GRI 305-2: Energy indirect (Scope 2) GHG emissions 73, 75, 105 GRI 308: Supplier Environmental Assessment 2016

GRI 305-3: Other indirect (Scope 3) GHG emissions 75, 105 GRI 103-1: Explanation of the material 14, 22f, 65ff, topic and its boundary 78, 114 GRI 305-4: GHG emissions intensity 72ff, 105 GRI 103-2: The management approach and 65ff, 78 GRI 305-5: Reduction of GHG emissions 72ff, 105 its components GRI 305-7: Nitrogen oxides (NOx), sulfur oxides (SOx), 74, 105 GRI 103-3: Evaluation of the management approach 20f, 37 and other significant air emissions GRI 308-1: New suppliers that were screened 65ff GRI 306: Effluents and Waste 2016 using environmental criteria GRI 103-1: Explanation of the material 14, 22f, 69, GRI 308-2: Negative environmental impacts in the 65ff topic and its boundary 80, 114 supply chain and actions taken GRI 103-2: The management approach and 69, 80 its components GRI 103-3: Evaluation of the management approach 20f, 37

GRI 306-1: Water discharge by quality 74, 106 and destination GRI 306-2: Waste by type and disposal method 74, 106

GRI 306-3: Significant spills 74

GRI 306-4: Transport of hazardous waste 74, 106

GRI 306-5: Water bodies affected by water 74, discharges and/or runoff 105-106 Audi Sustainability Report 2019 124 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 401: Employment 2016 GRI 403: Occupational Health and Safety 2018

GRI 103-1: Explanation of the material 14, 22f, 88, GRI 103-1 (GRI 103: Management approach 2016): 14, 22f, 91f, topic and its boundary 99ff, 115 Explanation of the material 99ff, 115 GRI 103-2: The management approach and 88, 99ff topic and its boundary its components GRI 103-2 (GRI 103: Management approach 2016): 91f, 99ff GRI 103-3: Evaluation of the management approach 20f, 37 The management approach and its components GRI 401-1: New employee hires and 88ff, 107 Information by age GRI 103-3 (GRI 103: Management approach 2016): 20f, 37 employee turnover group and gender is Evaluation of the management approach not currently avail- able. GRI 403-1: Occupational health and 91f, 108 safety management system GRI 401-2: Benefits provided to full-time employ- 88ff ees that are not provided to temporary or part-time GRI 403-2: Hazard identification, Information by age employees risk assessment, and incident investigation group and region is not currently available. GRI 401-3: Parental leave 88ff, 108 Information on return to work rate by gen- GRI 403-3: Occupational health services 92 der is not currently available. GRI 403-4: Worker participation, consultation, and 91f communication on occupational health and safety GRI 402: Labor/Management Relations 2016 GRI 403-5: Worker training on 91-92 GRI 103-1: Explanation of the material 14, 22f, 38ff, occupational health and safety topic and its boundary 89, 115 GRI 403-6: Promotion of worker health 91f GRI 103-2: The management approach and 38ff, 89 its components GRI 403-7: Prevention and mitigation of 91f occupational health and safety impacts directly GRI 103-3: Evaluation of the management approach 20f, 37 linked by business relationships GRI 403-8: Workers covered by an 91f GRI 402-1: Minimum notice periods regarding In the event of oper- occupational health and safety management operational changes ational changes, the system company undertakes to inform the em- GRI 403-9: Work-related injuries 91f, 108 ployees of these in a timely manner. GRI 403-10: Work-related ill health 91f, 108 Audi Sustainability Report 2019 125 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 404: Training and Education 2016 GRI 412: Human Rights Assessment 2016

GRI 103-1: Explanation of the material 14, 22f, 85ff, GRI 103-1: Explanation of the material 14, 22f, 25ff, topic and its boundary 99ff, 115 topic and its boundary 65ff GRI 103-2: The management approach and 85ff, 99ff GRI 103-2: The management approach and 25ff, 65ff its components its components GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-3: Evaluation of the management approach 20f, 37

GRI 404-1: Average hours of training per year per 107 Information by gen- GRI 412-1: Operations that have been subject to 65ff employee der is not currently human rights reviews or impact assessments available. GRI 412-2: Employee training on human rights 10ff, 25ff GRI 404-2: Programs for upgrading 28, 85ff policies or procedures employee skills and transition GRI 412-3: Significant investment agreements and 65ff assistance programs contracts that include human rights clauses or that GRI 404-3: Percentage of employees receiving regular 87 underwent human rights screening performance and career development reviews GRI 413: Local Communities 2016

GRI 405: Diversity and Equal Opportunity 2016 GRI 103-1: Explanation of the material 14, 22f, 96ff topic and its boundary GRI 103-1: Explanation of the material 14, 22f, 29f, topic and its boundary 83ff, 88ff, GRI 103-2: The management approach and 96ff 99ff, 115 its components GRI 103-2: The management approach and 83ff, 88ff, GRI 103-3: Evaluation of the management approach 20f, 37 its components 99ff GRI 413-1: Operations with local community 21, 96ff engagement, impact assessments, and development GRI 103-3: Evaluation of the management approach 20f, 37 programs

GRI 405-1: Diversity of governance bodies 83ff, 88, and employees 107, FR (P. 54, P. 57f)

GRI 405-2: Ratio of basic salary and remuneration 88ff of women to men

FR = Audi Financial Report 2019. Download from: www.audi.com/en/company/investor-relations/reports-and-key-figures/annual-reports.html Audi Sustainability Report 2019 126 Progress you can feel

OPERATIONS PRODUCTS VALUE CREATION EMPLOYEES FOREWORD BRIEF PORTRAIT STRATEGY APPENDIX & INTEGRITY & SERVICES & PRODUCTION & SOCIETY

GRI Standards Page Statement/comment GRI Standards Page Statement/comment

GRI 414: Supplier Social Assessment 2016 GRI 417-1: Requirements for product and service 110 information and labeling GRI 103-1: Explanation of the material 14, 22f, 10ff, GRI 417-2: Incidents of non-compliance AUDI AG never provides topic and its boundary 65ff, 78, 114 concerning product and service information general information GRI 103-2: The management approach and 10ff, 65ff, 78 and labeling on the scope of field its components measures. GRI 103-3: Evaluation of the management approach 20f, 37 GRI 417-3: Incidents of non-compliance 26 concerning marketing communications GRI 414-1: New suppliers that were screened using 65ff social criteria GRI 418: Customer Privacy 2016 GRI 414-2: Negative social impacts in the 65ff GRI 103-1: Explanation of the material 14, 22f, 31f, supply chain and actions taken topic and its boundary 41, 58f, 113 GRI 416: Customer Health and Safety 2016 GRI 103-2: The management approach and 31f, 41, 58f its components GRI 103-1: Explanation of the material 14, 22f, 43ff, topic and its boundary 57f, 112, GRI 103-3: Evaluation of the management approach 20f, 37 113 GRI 418-1: Substantiated complaints concerning 32 GRI 103-2: The management approach and 43ff, 57f breaches of customer privacy and its components losses of customer data GRI 103-3: Evaluation of the management approach 20f, 37 GRI 419: Socioeconomic Compliance 2016 GRI 416-1: Assessment of the health and safety 43ff GRI 103-1: Explanation of the material 14, 22f, 25ff, impacts of product and service categories topic and its boundary 35ff, 41, 111 GRI 416-2: Incidents of non-compliance concerning 19, 28f, FR GRI 103-2: The management approach and 25ff, 35ff, 41 the health and safety impacts of products and services (p. 102ff) its components GRI 417: Marketing and Labeling 2016 GRI 103-3: Evaluation of the management approach 20f, 37 GRI 103-1: Explanation of the material topic 6ff, 14, 22f GRI 419-1: Non-compliance with laws and regulations 25ff and its boundary in the social and economic area GRI 103-2: The management approach and 6ff its components GRI 103-3: Evaluation of the management approach 20f, 37

FR = Audi Financial Report 2019. Download from: www.audi.com/en/company/investor-relations/reports-and-key-figures/annual-reports.html Publication Details

Published by Contact Image sources SDG AUDI AG Prof. Dr.-Ing. Peter F. Tropschuh www.un.org 85045 Ingolstadt Head of Sustainability Strategy Germany I/GU-3 Publication Phone +49 841 890 email [email protected] May 14, 2020 Fax +49 841 8932524 email [email protected] www.audi.com