OECD Complaint Against Volkswagen – Main Document, P
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Complaint against Volkswagen AG under the OECD Guidelines for Multinational Enterprises (2000) – Request to the German National Contact Point (Federal Ministry of Economics and Technology) to initiate the procedures for the solution of conflicts and problems in the implementation of the Guidelines Submitted on 7 May 2007 Contents: PART 1 ................................................................................................................................................................... 2 A. Complainant and Respondent........................................................................................................................ 2 B. Climate Change ............................................................................................................................................. 3 C. The role of the transport sector...................................................................................................................... 4 D. Criticised business practices.......................................................................................................................... 5 PART 2 ................................................................................................................................................................... 7 A. Violation of Chapter V.1.a) ........................................................................................................................... 7 1. Violation.................................................................................................................................................... 7 2. Reasons...................................................................................................................................................... 8 B. Violation of Chapter III.1 [Disclosure in accordance with V.1.a)].............................................................. 10 C. Violation of Chapter V.2.a) ......................................................................................................................... 11 1. With regard to information on the models in accordance with V.1.a)..................................................... 11 2. With regard to general information on the impacts of passenger car / road transport on the climate...... 11 D. Violation of Chapter VII.4 .......................................................................................................................... 13 E. Violation of Chapter V.1.b) ......................................................................................................................... 14 1. Violation.................................................................................................................................................. 14 2. Reasons.................................................................................................................................................... 14 F. Violation of Chapter III.4 b) [Objectives in accordance with V.1b)]........................................................... 15 G. Violation of Chapter V.3 ............................................................................................................................. 16 1. Violation.................................................................................................................................................. 16 2. Reasons.................................................................................................................................................... 16 H. Violation of Chapter III.1 (Information on life cycle assessments and their consideration) ....................... 17 I. Violation of Chapter V.2.a) (Information on life cycle assessments and their consideration)...................... 17 J. Violation of Chapter V.6.a) .......................................................................................................................... 17 K. Violation of Chapter V.6.b .......................................................................................................................... 19 L. Violation of Chapter V.6.c........................................................................................................................... 21 M. Violation of Chapter V.8 ............................................................................................................................ 22 1. Violation.................................................................................................................................................. 22 2. Reasons.................................................................................................................................................... 23 N. Violation of Chapter II.11 ........................................................................................................................... 24 O. Violation of Chapter V., chapeau ................................................................................................................ 24 PART 3 ................................................................................................................................................................. 26 Expectations towards the National Contact Point ............................................................................................ 26 Expectations towards VW................................................................................................................................ 27 Annex.................................................................................................................................................................... 28 Annex I: Questionnaire by Transport & Environment on CO2 emissions directed to automobile companies . 29 Annex II: Analysis of the Self Commitment of ACEA and its noncompliance ............................................... 30 Annex III: Analysis of the misinformation by federations and Volkswagen Group ........................................ 33 Annex IV. Consideration of the results of life cycle assessments in decision-making processes .................... 40 Annex V: Lobbying against climate-friendly regulations ................................................................................ 48 Contact: Cornelia Heydenreich, Germanwatch Office Berlin, Voßstr. 1, D-10117 Berlin Tel. +49 (0)30/ 2888 356-4, Fax -1, [email protected] Translation: Inka van Bergen, Peter Roderick (edited) This is an English translation of the German original. In the event of conflict, please refer to the German version. Complaint against Volkswagen AG under the OECD Guidelines for Multinational Enterprises (2000) Request to the German National Contact Point (Federal Ministry of Economics and Technology) to institute proceedings for the solution of conflicts and problems in the implementation of the Guidelines In the framework of the OECD Guidelines, particularly in the framework of Chapter I.C. of the Procedural Guidance, Germanwatch as “party concerned” raises the following issues and claims that Volkswagen AG (hereafter VW) does not implement the Guidelines, sufficiently or at all, in 15 exactly concretised specific instances. The criticised business behaviour and practices (trade and investment in the sense of the OECD Guidelines) contribute to global climate change and demonstrate that VW does not contribute sufficiently to avoiding dangerous climate change in the sense of a fundamental impediment to sustainable global development. The complaints regarding implementation relate largely to four chapters of the Guidelines: V – Environment, III – Disclosure, II – General Policies and VII – Consumer Interests. This document is divided into three parts. - Part 1 consists of a brief preface describing the complainant, an introduction to the problem of anthropogenic climate change, and the role of the automobile industry and the transport sector respectively, as well as a general description of the criticised business behaviour and practices adopted by VW. - Part 2 lists the concrete violations and cases of non-implementation of the Guidelines. - Part 3 includes demands to the National Contact Point regarding implementation of the proceedings, as well as demands and suggestions to VW on how the group can design its business practices in conformity with the Guidelines. PART 1 A. Complainant and Respondent Germanwatch e.V. is a German non-governmental organisation for environment and development which focuses on climate protection and corporate responsibility. On the one hand, the organisation for years has dealt with climate change and the responsibility of politics, the public, finance market and enterprises in Germany and abroad. On the other hand, it has focused its work on the impacts of climate change on affected parties in developing countries. In the area of corporate social responsibility, one focus is on the OECD Guidelines for Multinational Enterprises. Volkswagen is one of the largest car manufacturers in the world. As measured by the number of cars produced, VW - with 4.979.487 cars - was third internationally in 2005, behind Toyota and General Motors.1 The company's production is very international: only 38 percent of the production is carried out in Germany2, most of the cars are produced by worldwide VW business establishments or by VW subsidiary companies like Audi, Seat, Skoda or Bugatti. During the last several years, the production of VW has increased significantly: in the period from 1990 to 2003, worldwide car