Content Content About the Report Querverweis 0-1 Intro Über den Bericht Audi Report 2020 Foreword 2 Audi Report 2020 Foreword 3 Milestones 1. STRATEGY How is Audi shaping the future? Brief portrait High-level meeting – how Audi is shaping the future The Audi e-tron GT quattro1 is one example of this. As the brand’s 2. OPERATING & INTEGRITYHow is Audi acting profitably and with integrity? progressive new spearhead, it is our first all-electric model A win-win-win situation for humankind, society and the environment manufactured in Germany. The e-tron GT1 stands for emotional Financial position Financial highlights electric mobility and sustainability. Economic environment Production and deliveries Now more than ever, our future success requires that we have a Production holistic understanding of sustainability, comprising the economy, Deliveries environment and society. That is why we are also integrating the Financial performance AG Financial performance financial perspectives and issues related to ESG – Environment, Net worth Social and Governance – into our reporting and are publishing a Financial position AUDI Photo: combined annual and sustainability report this year for the first Employees time. Even following last year’s acquisition of all Audi shares by Markus Duesmann Report on expected developments Dear Volkswagen AG, this approach will allow us to uphold transpar- Cost and investment discipline Chairman of the Board of Management and Member of the Board of Manage- ency as well as explain and classify correlations. Report on risks and opportunities Readers, ment for Product Lines of AUDI AG Report on risks and opportunities Operating principle of opportunities management As a year, 2020 was defined by uncertainty and radical change. Risks and opportunities of the Audi Group Stand together, but keep your distance – an idea that became last Our employees’ great flexibility and willingness to adapt during Ducati and Lamborghine brands year’s watchword. The coronavirus pandemic significantly these challenging times made a lasting impression on all of us as 3. PRODUCTS & SERVICES How will Audi continue delighting its customers in the future? impacted day-to-day business in markets throughout the world, the Board of Management team. We are therefore convinced that The Masterpiece presenting great economic as well as emotional challenges. despite – or perhaps due to – the current challenges, we will still A winning quartet – Audi’s path to the electric age Bright & audible – for more comfort be able to make a substantial difference. This conviction gives us Speed date Thanks to our strong crisis management team, we have managed the energy we need to continue to work strongly on the future of Synergies in software development. Creating hard facts for software to navigate stably through the pandemic thus far. Ensuring the Audi in 2021. 4. VALUE CREATION & PRODUCTION How does Audi achieve sustainable value creation? protection of everyone at Audi has always been our top priority. ASI-certified aluminium: Audi leads the way At the same time, we have examined our costs and secured our Good chain reaction – greater sustainability together with suppliers liquidity – without compromising on product substance or Sincerely, The goal is zero – environmental management in Audi production 5. EMPLOYEES & SOCIETY How does Audi make a social impact? sustainability. Standing strong during the coronavirus pandemic – the significance of corporate culture One goal – one team 2020 Audi has the potential and is committed to taking a leading role Responsibility worldwide: Engage, Educate, Empower Audi in shaping the transformation of the automotive industry. Markus Duesmann Appendix “ Vorsprung” is in our DNA. For us, “Vorsprung” means combining Sustainability Program Sustainability Key Figures unique technological innovations with a clear mindset: We want Fuel/electric power consumption and emission figures to set an example as a modern, transparent and value-based Content Wheel REPORT combined company. We want to sustainably shape individual mobility, while Independent Auditor’s Limited Assurance Report annual and protecting the environment and conserving resources. REPORT sustainability GRI content index REPORT report 1 Audi e-tron GT quattro: combined electric power consumption in kWh/100 km: 19.6–18.8 (NEDC); combined CO₂ emissions in g/km: 0 About the Report Audi Report 2020 Content 4 Audi Report 2020 Content 5 Audi Report 2020 Content 6 2. Operations & Integrity 4. Value Creation & Production 5. Employees & Society How is Audi acting How does Audi How does profitably and achieve sustainable Audi make a with integrity? value creation? social impact? CONTENT Page 63 Page 212 Page 251 A winning quartet – CONTENT A win-win-win situation Audi’s path to ASI-certified aluminum: Standing strong during CONTENT for humankind, society the electric age Audi leads the way the coronavirus pandemic – the significance and the environment Page 152 Page 214 Page 65 of corporate culture Bright & audible – Page 253 Financial position for more comfort One goal – one team Page 81 Page 168 The topics of the combined Report 2020 Page 266 are based on the materiality analysis Speed date Responsibility ( page 10). The content is divided into Page 183 worldwide: Engage, five chapters, each of which answers a Educate, Empower Page 276 strategic key question. Photo: Amos Fricke Good chain reaction – greater sustainability together with suppliers About the Report 3. Products & Services Page 222 Page 7 How will Audi continue delighting Revolver Eva Illustration: Milestones Photo: graupause Page 11 its customers in the future? Page 134 1. Strategy How is Audi shaping The masterpiece Page 136 the future? Page 31 Brief portrait Photo: graupause Page 32 Photo: AUDI AG / Synergies in software Appendix High-level meeting – how development. Page 288 Audi is shaping the future Creating hard facts for The goal is zero – Sustainability program Page 40 software environmental Sustainability key figures Page 203 management in Consumption and emission figures Audi production Content Wheel Page 230 Auditor’s report Rendering: Hannes Weikert Hannes Rendering: Photo: RobertPhoto: Fischer GRI content index Über den Bericht Querverweis_0-3_UeberBericht Audi Report 2020 About the Report 7 Audi Report 2020 About the Report 8 Audi Report 2020 About the Report 9 (stakeholder relevance). This enabled the company to identify all Furthermore, PDF is a modern format that has been optimized for Welcome to the Audi Report the topics that are highly relevant for Audi and its stakeholders use on mobile devices and that allows quick keyword searches. 2020, the first combined annual and that have a substantial impact on the environment and soci- and sustainability report from ety.2 The findings of this materiality analysis provide a structure The Audi Report is part of comprehensive, regular financial and for this report. sustainability communication. Find more information online Audi. about these topics at www.audi.com Topic matrix We hope you enjoy reading it. This report combines financial perspectives as well as Environ- The topic matrix featured in the Sustainability Report 2019 serves ment, Social and Governance (ESG) issues in a unique and trans- as the basis for the combined annual and sustainability report and parent manner and provides comprehensive information about was further developed by incorporating content from corporate the company. In the process, it addresses aspects generated on and financial reporting. This process resulted in an extension, the one hand by stakeholders’1 demands and on the other, by the what is known as the Content Wheel see page 315, which Markus Duesmann Dr. Arno Antlitz Dirk Grosse-Loheide Chairman of the Board of Member of the Board of Member of the Board of company’s strategic focal points. In terms of time, the report highlights the material topics in five chapters – “Strategy,” Management and Member of Management of AUDI AG Management of AUDI AG reviews 2020, takes a look at the Audi situation today and consid- “ Operations & Integrity,” “Products & Services,” “Value Creation & the Board of Management for Finance and Legal Affairs Procurement and IT Product Lines of AUDI AG ers what to expect in the near future from Audi. Production” and “Employees & Society.” In addition, as was the case with the Sustainability Report 2019, the Content Wheel Stakeholder management ensures that all those involved constantly have their sights set on corporate strategies, reporting standards of the Global Reporting How does Audi know what people expect from the Four Rings? Initiative (GRI) and the United Nations Sustainable Development The company actively involves its stakeholders in its core issues Goals (SDGs) when it comes to the topic of sustainability. Peter Kössler Dr. Sabine Maassen Hildegard Wortmann and wants to know their interests and expectations so that it can Member of the Board of Member of the Board of Member of the Board of Management of AUDI AG Management of AUDI AG Management of AUDI AG consider them in its business decisions. To this end, Audi uses Standards and auditing Production and Logistics Human Resources and Marketing and Sales different digital formats and individual one-on-one discussions, Organization The report was prepared in accordance with the “core” option of is involved in various initiatives and is a member of numerous the GRI standards and confirmed by the organization with the committees ( see page 331). Reporting period Reporting