environmental report
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gfiuTRANSCRIPT
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Volkswagen
Environmental Report 2001/2002Mobility and Sustainability
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Contents
EditorialIntroductionForewordsAt a Glance
Sustainability & Social ResponsibilityChallengesCharacteristicsBusiness StrategiesAdded ValueEconomic Facts and FiguresSocial CompetenceCorporate Social ResponsibilityCooperative Conflict ManagementCorporate Sustainability Verification
Environmental Policy & ManagementEnvironmental PolicyClimate Protection and Fuel ConsumptionLife Cycle InventoriesEnvironmental CostsEco-AuditEmployeesEnvironmental HistoryGoals and Measures
ProductsProduct PolicyFSIOur ModelsExperience with the Lupo 3L TDI
Research & DevelopmentFuel StrategyThe Car and the EnvironmentTechnical Development The One-Litre CarMobile NetworkingElectric Hybrid VehiclesRecycling
Production & PlantsA Worldwide NetworkLogisticsSuppliersInternational Material Data SystemReports and ExamplesEnvironmental Data
Partners & ProjectsEnvironmental Protection in the Service SectorA Profile of the Stipschitz DealershipImplementing the ELV DirectiveMobility ProjectsThe VCD Cars and Environment TableThe EcoTopTen ProjectPartnership with NABUThe Global Reporting InitiativeThe Sustainable Mobility ProjectDrive Carefully Save Fuel
Conclusion & AppendixThe Environmental Report 1999/2000 Auditing the ReportAuditors AttestationGlossary of TermsHow to Contact Us
2
Local Agendas
p. 76
p. 52
The people at Volkswagens production plants are never short of good ideaswhen it comes to demonstrating their responsiblity for local residents andthe environment from finding ways of saving water to acting out plays.
Hydrogen will doubtless power most cars in the future. But until thathappens, natural gas, SynFuels and fuels derived from regenerative rawmaterials are the main alternatives to conventional petrol and diesel.
Fuel Strategy
Partners & Projects
-
01
United We Stand
p. 40
p. 97
p. 15
p. 30
Sustainability and Social Responsibility
Environmental Policy and Management
Production & Plants
Meeting todays needs without denyingfuture generations the opportunity tomake progress. This is the challengeVolkswagen faces as it strives tocombine social responsibility withentrepreneurial drive.
Apprentices at Volkswagen learn about environmentalprotection in all its many forms. Protecting our climate is thekey environmental task of the future.
Volkswagen is not only a partner to its customersbut also to its dealerships and service outlets.The companys commitment to the environmentand sustainability takes on many different formsat national and international level.
FSI stands for a future with lower fuel consumption andless emissions. With the advent of direct fuel injection, thepetrol engine has become a good deal more eco-friendly.
Prevention is Better than Cure
FSIResearch & Development
Working for Future Generations
Products
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Dear Reader,
For the first time our Environmental Report has a sub-
heading: Mobility and Sustainability. There are good
reasons for this innovation. The scope of the environ-
mental debate is constantly being widened to include
additional aspects of corporate sustainability, ultimate-
ly embracing the full ecological, economic and social
dimensions of entrepreneurial activity. Meanwhile the
debate over what a sustainability report should cover
continues. Volkswagen is actively involved in the
national and international dialogue on meaningful
guidelines and indicators for sustainability reporting
and two years from now, we intend to publish a
sustainability report which will match up to your high
expectations and our own.
The complex relationship between sustainability and
mobility is of key significance for us. The Mankind and
Mobility photos in this Report are designed to draw
attention to how, in an ever more interwoven and
densely populated world, mobility is often a value of
truly existential importance. On the one hand, making
mobility possible in an environmentally acceptable way
demands every ounce of our creative resources. On the
other hand, mobility is our everyday business, and so
the Report focuses mainly on the efforts we have made
over the last two years and the goals we are pursuing in
the interests of progress. In these efforts and in this
Report FSI technology has a central part to play.
Of course our readers are not just interested in our top
performers but in the environmental impact of all
Volkswagen models. In our first ever Environmental
Report we set a benchmark for the industry by present-
ing the full portfolio of Volkswagen vehicles. Today,
information technology provides us all with a fast track
to the latest data, and at
we can now provide you with regular and practical
updates on model-specific data. As a result, in the
printed Report we have restricted ourselves more
to the fundamentals, and refer to our web site in the
appropriate places. That leaves more space
for a strategic discussion of the long-term
development of personal mobility symbol-
ised by the car. Accordingly, we have made
Volkswagens drive systems and fuel strategy
one of the focal points of this Report.
Globalisation has brought a further increase
in the number of Volkswagen plants around
the world. In this Report we have concentrat-
ed on four plants from three different
continents and refer anyone interested in
further details of all other plants to our web
site at
www.volkswagen-environment.de/on-the-ground
As always, our Environmental Report is also
an open invitation to talk to us about mobility.
In recent years we have benefited greatly from
this dialogue and we hope that you have too.
Finally, my thanks go to our dedicated
editorial team and to all the colleagues whose
expert input laid the foundations for this
Report.
I hope you enjoy reading it!
Dr. Horst Minte
Product, Environment and Traffic Systems
Editorial
www.volkswagen-environment.de
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Introduction
1
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Volkswagens corporate policy is geared to the long term.
Safeguarding protability and adding value to our
products are factors which contribute to our success, as
indeed do the introduction of exible working-hour
models and the development of cars with outstanding
fuel economy. Volkswagens heritage and operating envi-
ronment make for an approach to sustainable manage-
ment that is specic to the company an approach
symbolised not least by the Lupo 3L TDI and the four-day
week. Today, FSI technology and the 5000x5000 project
are important milestones along this route.
In future, in a logical expansion of its product portfolio,
Volkswagen will also be bringing luxury cars to market. In
this segment, too, we are aiming to demonstrate the tech-
nology leadership we have established in the other classes
of vehicle. In recent years we have extended our range of
economical cars with low fuel consumption. The three-
litre Lupo which was launched in 1999 is our Formula 1
performer in this category. For the third year in succession
it heads up the Cars and the Environment table compiled
by the German Association for Transport and the Environ-
ment. That said, we have set our sights higher still. Our
uppermost goal in this respect is a 1-litre car which will
cover 100 km on one litre of fuel. We are currently
developing one such model which will set new standards.
For Volkswagen, sustainable mobility is not centred on
individual models. This is illustrated to good effect by the
TDI engine at present our most economical drive
technology. In the long term, the increase in the proportion
of diesel-engined models in the Volkswagen eet to more
than 40 percent will make a tangible contribution to
protecting our climate. In our petrol engines, too, we are
consistently banking on direct injection.
The next few years will see a substantial increase
in the range of Volkswagen models available
with FSI engines. This way, we aim to achieve a
further cut in average fuel consumption across
our eet and to full the Voluntary Agreement
entered into by the European automobile
industry whereby CO2 emissions in the EU are to
be reduced to 140 grams per kilometre by 2008.
Until alternative propulsion systems like the fuel
cell make their breakthrough, we need well
thought-out interim strategies. Volkswagen has
drawn up a fuel strategy to bridge this gap. This
includes improving the overall efciency of our
engines, drawing on alternative energy
resources in the fuel production process and
developing ways of operating vehicles that result
in a neutral CO2 balance sheet. FSI and our fuel
strategy will safeguard Volkswagens success in
the long term, just as the diesel engine launched
at Volkswagen 25 years ago has done.
Success on the stock markets, however, is
often decided by shorter-term factors. But as
developments in the international financial
markets show, sustainable success and
shareholder value need not be contradictory.
Indexes such as the Dow Jones Sustainability
World Index (DJSI World) on the New York
Stock Exchange or the FTSE4Good index on
the London Stock Exchange, both of which
rate companies in line with sustainability
criteria, are beginning to gain ground. We take
it as confirmation of our corporate strategy
that Volkswagen is now included in both of
these indexes.
Wolfsburg, December 2001
Dr. techn. h. c. Dipl.-Ing. ETH Ferdinand Pich
Chairman of the Board of Management
Forewords
Sustainable Corporate Success and
Sustainable Mobility
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45
1Forewords Introduction
Words which are used frequently in public debate often
risk being devalued in meaning. Sustainability is a
case in point. If no clear-cut definition is provided,
sustainability is understood to mean little more than
permanence or persistence. Neither, however,
comes close to the original meaning of the word. As
used at the Earth Summit at Rio de Janeiro in 1992,
sustainability was supposed to stand for a principle of
social development a principle which demands that
each generation leave as good if not better foundations
for development to the next generation. As such,
sustainability refers expressly to the way in which we
shape the fields of ecology, economics and social
conditions. The big step forward is in drawing attention
to the fact that these three dimensions can only be
shaped together, as an integral whole, and not in
isolation.
The General Works Council naturally feels that its
obligations lie above all in the social dimension of
sustainability and consequently has drawn up central
strategies and initiated agreements and projects with a
focus on these aspects. The following remarkable
examples provide some illustration of the Councils
efforts:
Through the introduction of the four-day week
during an acute job-market crisis in 1994, we avoided
mass redundancies. Instead of people losing their jobs,
employment capacity for future generations, too, was
assured.
Through the Time Asset Bond scheme, a phased
retirement plan and the recruitment and permanent
employment of apprentices, we have put in place a
cross-generation job-creation system at Volkswagen,
similar to an inter-generation social contract.
With its One Hour for the Future
campaign, the General Works Council is out to
underline the global social responsibility of
transnational companies beyond their own
corporate boundaries and point out that
attempting to distinguish between peoples
existential interests by geographical regions is
a thing of the past.
The principle of preventing plant closures
and mass redundancies across the worldwide
Volkswagen Group reflects our understanding
that global social responsibility neither is nor
can be divided.
As these four examples illustrate, in any
approach to social responsibility, sustainabili-
ty is a must. One of its principal targets is the
creation of equilibrium equilibrium
between social obligations and economic
performance, between the vested interests of
the various generations and between the
development needs of the companys plants
in different parts of the world. As a result, the
waste or even destruction of resources is
avoided and new development opportunities
are created. So, in effect, sustainability and
social responsibility are related like an
operating principle and its objective. Each
requires the other and together they can
transform requirements into reality. Conse-
quently, we shall be continuing along our
chosen route.
Klaus Volkert
Chairman of the General and Group Works
Council
Social Responsibility Calls for
Sustainability
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At a Glance
Workforce000 (on Dec. 31)
992
12.923
17.756
Production000units
Sales000units
Sales million
Pre-taxprots* millionVolkswagen Passenger Cars
VolkswagenCommercialVehicles
1,999
1,981
+ 0.9
2,396
2,382
+ 0.6
46,544
43,546
+ 6.9
1,671
1,348
+ 24.0
2000
1999
+/- (percent)
18.0
17.5
+ 2.8
247
238
+ 3.7
289
284
+ 1.5
4,562
4,348
+ 4.9
258
249
+ 3.5
2000
1999
+/- (percent)
125.6
122.7
+ 2.3
The Marques Volkswagen Passenger Cars and Commercial Vehicles in gures
Petrol DI*
Diesel DI*
1995 2000 2005 2010 2015
20 %
40 %
60 %
80 %
100 %
PetrolAlternative drive systems
Diesel
*DI = direct injection.
Drive system trends, 1995 - 2015Future market shares
Source: Aachen Technical University
Initial certication
Volkswagen Plant Date
Eco-audit status (EMAS)
09/95
03/96
06/96
07/96
12/96
12/97
12/97
11/98
11/98
07/99
03/01
09/98
09/01
05/99
06/99
11/99
11/99
11/00
01/01
12/01
12/01
04/02
04/02
04/02
03/03
Emden
Zwickau/Mosel
Brunswick
VWK Wolfsburg
Salzgitter
Wolfsburg
Navarra
Kassel
VWK Kassel
Chemnitz
Hanover
Initial certication
planned:
Brussels
Poznan
Re-certication completed:
Emden
Zwickau/Mosel
Brunswick
Salzgitter
Wolfsburg
Navarra
Wolfsburg
Re-certication planned:
Kassel
VWK Kassel
Chemnitz
Zwickau/Mosel
Source: VOLKSWAGEN AG
1995
-40
-30
-20
-10
0ACEA CO2 Agreement
ACEA current status
Volkswagen
2000 2005 2010
%
Drop in CO2 emissions due to falling average eet consumption
Volkswagens contribution to meeting the ACEAs Voluntary Agreement on CO2(0 % = CO2 emissions based on 1995 corporate average fuel economy)Source: VOLKSWAGEN AG
67
*Excluding extraordinary expenses (relating to the EU End of Life Vehicle Directive).Source: VOLKSWAGEN AG
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56
Sustainability & Social Responsibility
2
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Since the notion of sustainable development was first
formulated in the Brundtland Commissions 1987 report
and tabled at the 1992 UN Conference on Environment
and Development in Rio de Janeiro, the concept has
become a global political model. For all the frequency,
however, with which the term figures in political
debates, its precise meaning has nevertheless remained
remarkably open. So before sustainable development
can be adopted as a corporate guideline, the underlying
concept must first be clearly defined.
As set out by the Brundtland Commission, the concept of
sustainable development primarily targets a just and
equitable state of affairs between present and future
generations, that is to say it means development that
meets the needs of the present without compromising the
ability of future generations to meet their own needs. In
Volkswagens view, this is a call to pursue a corporate
policy geared to the long term and designed to respond
not only to economic challenges but at the same time to
ecological and social challenges, as well. To that extent,
sustainable development ranks among the new chal-
lenges which companies now face in the policy sector.
In their efforts to shape sustainable development,
companies are governed by legislative frameworks and in
addition to being responsible for their own activities, they
must work in partnership with other institu-
tions and organisations.
For Volkswagen sustainability is made up of
three core elements:
maintaining a balance within the economic,
ecological and social system and pursuing
the long-term reconciliation of divergent
interests
taking responsibility for ones own activities
at regional, national and global level
practising transparent communication and
fair cooperation.
Sustainable development meansnetworked thinkingThe process of sustainable development
involves all sectors of society the general
public and the state, companies and their
customers, associations and political parties.
Sustainability means no longer considering
ones own interests in isolation but against a
backdrop of economic, ecological and social
aspects.
Direct responsibility
GuidelinesVoluntary agreements
Legal framework
Stakeholder requirements
Market requirements
Legal requirements
Companies, NGOs, employees,investors, consumers
International organisations,associations
EU, nation states
cd
cd
cd
cd
Changing political processes pose new challenges
Sustainability A Challenge
for Business Practices
Source: VOLKSWAGEN AG
-
2Challenges
89
Companies in particular are expected to shoulder a
proactive role. In economic terms, companies and their
workforces are the generators of social prosperity. In
technical terms they are the locomotives of progress. In
the production of goods and services they draw upon
natural resources. At the same time they also create and
safeguard jobs and social security, and offer their
employees a means of personal fulfilment. In ecological
terms, companies make demands upon the load-
bearing capacity of the biosphere. Thus, companies are
economic, ecological, technological and social players
who can contribute to sustainable development across
the board.
As a corporate citizen, Volkswagen forms an integral
part of society. As a global player, we are confronted
with different social structures and expectations in
different countries and cultural environments and in
each case play our part in local societal development.
As an active participant in the 1992 UN
Conference on Environment and Develop-
ment in Rio de Janeiro and as a founding
member of the World Business Council for
Sustainable Development (WBCSD), we have
been giving thought to the subject of
sustainable development and the challenges
it poses for the corporate sector for a long
time now. For Volkswagen, the concept of
sustainable development is not to be
considered solely against the backdrop of
societys ethical expectations of the corporate
sector but also as a key contributory factor in
consolidating and enhancing the global
competitiveness of the Group as a whole. To
an increasing extent, economic success is
achieved not least through the long-term
integration of ecological and social goals.
Ten years after what became known as the Earth Summit (the 1992
United Nations Conference on Environment and Development in
Rio de Janeiro) the World Summit on Sustainable Development
(WSSD) will be held in Johannesburg in September 2002. There, the
UN will draw up a balance-sheet setting out the agreements reached
in Rio and the subsequent outcome of those agreements. The most
urgent task on the agenda will be to give fresh impetus to global
environmental policymaking and drive forward efforts towards sus-
tainable development. Governments and business enterprises alike
will give an account of the contribution they have made over the
past decade to fighting poverty, conserving natural resources and
shaping our lives in such a way that future generations will inherit a
world worth living in.
At the 1992 conference in Rio de Janeiro, Volkswagen was represented
by, among others, the then Chairman of the Board of Management,
Dr. Carl Hahn. In preparation for the forthcoming follow-up confer-
ence, management and plants are taking stock of progress. At the same
time, above all at the companys production plants in newly industri-
alising countries, new initiatives are getting under way. At many
plants, involvement in working groups for a Local Agenda 21 provides
a means of working together with the authorities and local residents
to help safeguard the future of the plants concerned.
As part of Volkswagens commitment to the Mobility
Forum of the United Nations Environmental
Programme (UNEP), the company has joined forces
with other international automobile manufacturers to
prepare a status report for the WSSD in Johannesburg
covering all activities implemented since the conference
in Rio, and is planning other initiatives. In addition,
as part of the German governments Rio+10
Transparency Initiative, together with other German
companies, ministries, associations and interest groups
Volkswagen is analysing the contribution made by the
German business sectors foreign investments to
improving the living conditions of people in developing
and newly industrialising countries. This study is also
designed to trigger a learning process, the outcome of
which will be presented within the framework of the
conference in South Africa.
www.johannesburgsummit.org
World Summit on Sustainable Development 2002 Rio+10
Sustainability & Social Responsibility
-
Characteristics of sustainable corporate development In our view, sustainability is a process of ongoing
learning, distinguished by the following characteristics:
Evolution: The sustainable development of each company
draws on its own particular history, culture and operating
environment, leading to a company-specic approach.
Volkswagens approach to sustainability is founded on four
factors: a cooperative style of resolving conicts; our
employees co-determination rights; our strong regional
roots and deriving from our post-war experience our
frugal approach to precious natural resources.
Integration: Instead of improving the economic, social
and ecological aspects of the company in isolation, we
try to take a holistic view. One example here is the
AutoVision project (see page 17). Here, the principal
aim of halving the level of unemployment in Wolfsburg
by means of economic measures which foster new
business start-ups and technical innovations,
is combined with qualitative ecological
objectives.
Communication: Members of society must
communicate and coordinate their respective
contributions to sustainable development.
This calls for a will to communicate, learn and
cooperate. Our environmental reports, envi-
ronmental statements and Life Cycle Assess-
ments all document the fact that, for
Volkswagen, the need for transparent com-
munication goes without saying. The company
demonstrates its commitment to sustainable
development topics at a number of external
forums: One key project in which we are involv-
ed in conjunction with the WBCSD goes by the
name of Sustainable Mobility (see page 109).
Volkswagen is also an active participant in the
Mobility Forum set up by the United Nations
Innovative environmental policy group-wide environmental
goals environmental management
system ecological product innovations open environmental
communications external collaboration
Enhancing labour flexibility four-day week Time-Asset bond pension fund training personnel services agency 5000x5000 project
Safeguarding the corporate future module strategy in production sector efficient engine technology lightweight design mobility servicesEconomic promotion Innovation Campus "Promotion" start-up competition supplier establishment
SocietyEcology
Economy
Increase in company value
SynergiesIntegration
Strategic contributions to sustainable development at Volkswagen
Source: VOLKSWAGEN AG
-
1011
Environmental Programme (UNEP). In the eld of corpo-
rate social responsibility, we are collaborating with other
European rms under the auspices of CSR Europe.
Volkswagen is a founding member of the Sustainable
Development econsense forum of the Confederation of
German Industry (BDI). In the eld of environmental
protection, Volkswagen collaborates with the Institute
of Applied Ecology in Freiburg, Germany, (see page 106)
and with NABU the German Society for Nature
Conservation (see page 107).
Innovation: Our integral perspective of sustainability
leads us to undertake an ongoing critical review of what
we have already achieved, thereby opening up new
scope for innovation. The results of this way of thinking
include the factory that breathes for example (see
page 17), the Time Asset bond (see page 17) and the first
3-litre car (see page 50).
Business strategies and sustainability Strategies designed to safeguard long-term corporate
success must take account not only of technical and
market developments but also of social and environ-
mental challenges. Under the heading of sustainable
development and its ecological, economic and social
dimensions, Volkswagen can point to the strategic
approaches and achievements of many corporate divi-
sions, all of which help to ensure that the company is
managed for sustainability and plays its part in a society
geared to sustainable development. However, these
contributions must also be integrated into an overall
sustainability strategy. The basic principles which guide
us in this process of integration are set out earlier in this
chapter.
Ecology lies at the heart of this Report and it is to ecologi-
cal concerns that the chapters which follow are dedicated.
Hence, this is still the Volkswagen Environmental Report
rather than a sustainability report. That said, in this
chapter on sustainability we have set out to open a win-
dow for you on the economic and social dimensions of
Volkswagen. At present, the economic pillar of sustainabil-
ity is made up of marque and product strategy, module
strategy and fuel strategy.
Marque and product strategyThrough its multi-marque strategy and
product development strategy, Volkswagen is
constantly expanding its portfolio by adding
high quality technological products including
highly ecologically efficient and economical
vehicles and thereby helping to increase the
value of the marque and exploit existing
market and earnings potentials.
Module strategyThe module strategy is a product-develop-
ment and production concept which enables
a number of selected modules to be used as
components in several different classes of
models. The resultant synergy effects lead to
savings not least on the development and
procurement fronts. The module concept also
reflects Volkswagens cross-facility integrated
development process which calls for a
comparable level of technology at all of the
Groups facilities and thus provides a strong
impulse for technology transfer.
Fuel strategyThrough its fuel strategy, Volkswagen is
preparing for the anticipated long-term
shortage of conventional energy resources.
This is a transitional strategy, as new drive
technologies are not developed overnight.
The fuel strategy demonstrates a three-
pronged approach, involving the constant
pursuit of more efficient engines, the
inclusion of alternative energy resources in
the fuel production process and the develop-
ment of drive concepts with a neutral carbon-
dioxide balance-sheet. The introduction of
FSI technology is just one module in this
comprehensive strategy (see page 52).
www.volkswagen-environment.de/knowledge/partners-projects
2Characteristics/Business Strategies Sustainability & Social Responsibility
-
2000 1999 1999 Year-on-yearchange
Year-on-yearchange
Added value and sustainable growthFor several years now, the Volkswagen Annual Report has
documented the value added by the Group. The
introduction of added value accounting was an
important step forward in our accounting practices
since it enables the company to set out in its annual
nancial statements the value generated not only for the
shareholders but also for other important stakeholders,
such as our employees and the state. This in turn brings
about a substantial improvement in the transparency of
the social dimension of Volkswagens performance. The
ecological dimension, however, is not yet included in
the added value accounts.
The term added value stands quite literally
for the value which a company adds through its
own efforts to the goods or services provided to
society. The market value of these products,
and thus the revenue posted by the company is
determined by the most important stakeholder
group for any business enterprise: the cus-
tomers. The resultant earnings are distributed
among the various other stakeholders in the
company, such as its employees, shareholders,
creditors or the state. In the context of
43,447
3,612
37,980
9,079
2000 1999 Year-on-yearchange
40,094
3,063
34,711
8,446
+ 3,353
+ 549
+ 3,269
+ 633
Year-on-yearchange
+ 8.4
+ 17.9
+ 9.4
+ 7.5
507
6,608
1,278
369
317
9,079
2000
5.6
72.8
14.1
4.0
3.5
100.0
327
6,327
1,283
184
325
8,446
3.9
74.9
15.2
2.2
3.8
100.0
+ 180
+ 281
- 5
+ 185
- 8
+ 633
+ 54.8
+ 4.4
- 0.4
+ 100.2
- 2.3
+ 7.5
Sources and allocation of funds of VOLKSWAGEN AG
Source: VOLKSWAGEN AG
Sources in million in million in million in percent
Sales
plus other income
less expenditures
Added value
Appropriation in million in percent in million in percent in million in percent
to stockholders (dividend)
to employees (wages, salaries, fringe benets)
to the state (taxes, levies)
to creditors (interest)
to the company (reserves)
Added value
-
sustainable growth, this distribution endeavours to take
due and equitable account of the contributions of the
various stakeholder groups.
The added value accounts of VOLKSWAGEN AG as part
of the added value accounting of the Group show a sum
of approximately EUR 9 billion. The distribution pattern
of the resultant earnings reveals that the employees
play a major part in the creation of added value and
therefore harvest the lions share (72.8 percent) of the
returns. Payments to the state in the form of taxes and
duties are also high in the automotive industry. These
represent that part of the companys contribution to
society the ultimate use of which is determined not by
the company itself as is the case in sponsoring
activities, for example but by the elected representa-
tives of the people at the companys various locations
around the world. For their part, the shareholders have
benefited from a substantial increase in dividend on
account of the positive development of our business
and the increase in annual income. Finally, the com-
panys high reserves stand for Volkswagens efforts to
underpin the substance of the enterprise and thereby
safeguard its long-term future.
Added value cannot be geared unilaterally either to the
prot margin or to the shareholders dividend. Sustain-
able commercial success is a long-term consideration,
founded upon the quality and high rate of investment in
a companys people, processes and plant, that is to say
in its principal assets. In a transparent market economy,
these assets also include the trust and condence of the
companys customers, the general public and the state
institutions of the countries in which it operates.
1213
In this sense, Volkswagen is striving for
sustainable growth. In the process, share-
holder value, stakeholder value and work-
holder value are not mutually exclusive but
all part of the practice of value-based
management which takes due account of
the contributions of the various stakeholder
groups and provides each with its
commensurate reward.
Economic facts and gures for the Volkswagen MarqueIn terms of the number of vehicles built and
sold, Volkswagen is Europes largest automak-
er. Although Volkswagen was founded in 1938,
it was only after the Second World War that the
company began production of the rst ever
Volkswagen (peoples car) which was to
make automotive history as the Beetle. Since
1950, Volkswagen has also built vans. Over the
six decades of the companys history, the range
of different models has seen strong growth, not
only in the commercial vehicle sector
(Transporter, Caravelle, Multivan, LT) but also
on the passenger car front (Lupo, Polo, Golf,
Bora, New Beetle, Passat and Sharan).
Along with its main plant in Wolfsburg and
many production facilities in Europe,
Volkswagen maintains production and assem-
bly plants all over the world, including fac-
tories in Brazil, Mexico, South Africa and China.
2Added Value/Economic Facts and Figures Sustainability & Social Responsibility
-
992
12.923
17.756
Workforce000(at Dec. 31)
Output000 units
Sales000 units
Sales million
Pre-taxprot millionNorth America Region
South America/Africa Region
Asia Pacic Region
*including nancial services a positive result was reported.
x: change of more than 100 percent
Source: VOLKSWAGEN AG
18.0
17.5
+ 2.8
426
410
+ 3.8
728
649
+ 12.2
15,459
11,561
+ 33.7
684
372
+ 83.9
2000
1999
+/- (percent)
36.8
37.3
- 1.3
628
523
+ 20.1
643
552
+ 16.5
7,029
5,088
+ 38.1
- 4*
- 363
x
2000
1999
+/- (percent)
2000
1999
+/- (percent)
17.0
15.9
+ 6.7
332
314
+ 5.8
394
367
+ 7.5
4,297
3,139
+ 36.9
320
243
+ 31.6
Workforce000(at Dec. 31)
Production000 units
Sales000 units
Sales million
Pre-taxprot* millionVolkswagen Passenger Cars
VolkswagenCommercialVehicles
*Excluding extraordinary expenses (relating to the EU End of Life Vehicle Directive).
1,999
1,981
+ 0.9
2,396
2,382
+ 0.6
46,544
43,546
+ 6.9
1,671
1,348
+ 24.0
2000
1999
+/- (percent)
18.0
17.5
+ 2.8
247
238
+ 3.7
289
284
+ 1.5
4,562
4,348
+ 4.9
258
249
+ 3.5
2000
1999
+/- (percent)
125.6
122.7
+ 2.3
The Marques Volkswagen Passenger Cars and Commercial Vehicles in gures
-
1415
When it comes to demonstrating a commitment to social
responsibility, the German people expect more of
Volkswagen than of virtually any other company in Ger-
many. According to a representative survey conducted by
the Munich-based IMAS Institute in 2001, Volkswagen
enjoys a very positive social image among the German
population. The high regard in which we are held is both
a reward and a challenge a challenge to maintain the
companys social performance in an increasingly
competitive global arena and drive it forwards through
new, innovative solutions and projects. For Volkswagen,
social responsibility is both a source of competence and
an integral part of successful entrepreneurial activity.
Our employees are the driving force behind the
commercial development of the company. So fostering
the social security of Volkswagens people and their
families is not only a moral obligation but also in the
companys own best interest. In generating motivation
and commitment among employees, a healthy
atmosphere at the workplace is essential. Consequently,
the individual rights and dignity of our employees
regardless of gender, religion, nationality or race are
central to our corporate culture. They are also anchored
in a factory agreement entitled Partnership-Based
Conduct at Work.
As a global player, Volkswagen operates at
locations in various countries where different
cultural and political circumstances may
prevail. We see ourselves as a partner to the
regions in which our facilities are located and,
through a number of projects, are actively
involved in shaping the wider social picture
there.
When a company considers itself part of a
society it must also be prepared to promote
institutions and organisations in the cultural
sector or which help the socially underprivi-
leged, for example. In 2000, Volkswagen
bundled its diverse sponsorship activities in
the arts and culture sector under the wing of
the Volkswagen Art Foundation. Major
sponsorship activities in recent years have
included backing the dokumenta X
contemporary art exhibition in Kassel (1997)
and supporting Weimar as the Cultural
Capital of Europe (1999). Since 1997, the
Volkswagen Sound Foundation has been
dedicated to fostering young rock and pop
musicians, aiming to help talented youngsters
get off to a good start in their careers.
One Hour for the Future is the name of an initiative
triggered by Volkswagens General and Group Works
Council to help streetchildren. Since 1999, the project
has brought in EUR 2 million in donations. The aim
is to provide long-term support for local project man-
agement organisations in cities where Volkswagen is
based in Brazil, South Africa, Mexico and Germany.
The initiative has drawn broad-based support not
only from within the company but also from
Volkswagen suppliers and customer clubs.
Social Competence
A Success Factor for Volkswagen
www.volkswagen-environment.de/magazine
Employee Initiative: Giving Streetchildren a Future
2Economic Facts and Figures/Social Competence Sustainability & Social Responsibility
-
CSR the social dimension of sustainabilityThe social performance of corporate enterprises is
increasingly being subsumed under the heading of
corporate social responsibility (CSR). The loose deni-
tion of CSR has come to take in not only a companys
social responsibilities but its economic and ecological
responsibilities as well. As a result, CSR is now en-
croaching on the territory of the established concept
of sustainable development.
For Volkswagen, CSR solely covers the social dimension
of sustainable development. This comprises the
willingness of an enterprise to invest its capabilities in
nding innovative solutions to social problems both
within and beyond the bounds of the company, thereby
increasing its commercial success. In this sense,
corporate social responsibility means far more than
doing good deeds in a social context and becomes a
conceptual approach to business. Volkswagens social
competence is reected in a number of different projects.
Since 1995, Volkswagen has been actively involved in
the European business initiative CSR Europe
formerly the European Business Network for Social
Cohesion (EBNSC). The aim of CSR Europe is to support
companies on their way to greater profitability,
sustainable growth and social progress. In the first
European survey to assess the status quo of
socially responsible corporate activities,
commissioned by CSR Europe, independent
research institutes studied the contributions
made by 46 companies to enhancing the
employability of the unemployed and school
leavers (Employability); how these companies
helped to promote start-ups (Entrepreneur-
ship); how they demonstrated their adaptabil-
ity in dynamic markets (Adaptability) and
what they did to foster equal opportunities for
men and women (Equal Opportunities).
Volkswagen emerged from this appraisal of
socially responsible performance with flying
colours.
Volkswagen has caught the public eye with a
number of social innovations. One such eye-
catcher is the concept of the factory that
breathes. Given the uctuating nature of
market developments in the automobile
industry, the degree to which the companys
capacity is taken up is not always the same.
Volkswagen can react to these uctuations fast
and exibly thanks to a working-time model
based on a four-day week which enables the
company to adapt to market developments
Social responsibility is an
important value which European
society can contribute to a
process of globalisation which is
otherwise primarily marked by
economic criteria alone.
Dr. Peter Hartz,
Member of the Board
of Management of
VOLKSWAGEN AG responsible
for Human Resources
www.volkswagen-environment.de/knowledge/sustainability-social-responsibility
-
1617
without having to recruit or dismiss permanent staff. This
not only permits Volkswagen to safeguard jobs and retain
the intellectual capital vested in its employees, it also
means, for example, that the transaction costs associated
with a corporate policy oriented solely to the short term
are not incurred.
Providing for the futureVolkswagen has now transposed the concept of the
factory that breathes to the working lives of its
employees in what is called the Time Asset bond
scheme. During their employment with the company,
employees can choose to save up long-term Time Assets
which then enable them to shape their personal working
lives more exibly in line with their individual wishes. In
contrast to conventional exitime accounts, employees
can choose to invest both working-hour credits and
portions of their gross pay in the scheme and earn
interest on their investments. Taxes and duties only
become payable when the Time Assets are actually used.
The savings are invested on the capital market in a
special fund which is professionally managed in order to
achieve maximum asset growth. The Time Assets saved
are then used to enable employees to take early
retirement or to fund an increase in their company
pensions.
Large companies are often the prime movers of
economic development for a whole region and as such
have a responsible part to play in regional decision-
making. The exceptional importance of Volkswagen for
the City of Wolfsburg led the company to take a
remarkable step: together with the City of Wolfsburg,
we have set ourselves the goal of creating a dynamic
and self-sufficient entrepreneurial environment in the
region, thereby halving the number of people out of
work. Since the AutoVision project was initiated in
1998, 3,700 new jobs have been created. The project
comprises supporting start-ups, attracting suppliers,
training the unemployed and redeveloping Wolfsburg
city centre. One key element of the start-up support
scheme is the InnovationsCampus where start-up
entrepreneurs can find office space, advice and
services. There is also a supraregional start-up competi-
tion by the name of promotion in which experts with
a brilliant idea for a new business related to
the subject of mobility can obtain funding.
At the same time, Volkswagen is also helping
to attract new employers (mainly automotive
suppliers) to the region. This targeted
relocation scheme includes the provision of
development sites and buildings as well as a
range of service offerings. In order to fill the
newly created jobs, a personnel agency which
was created as part of the AutoVision project
offers services including temporary and
permanent staff recruitment, employee
training and human resources consultancy.
In future, the AutoVision concept is to be
introduced at the Kassel and Emden plants,
as well.
Creating jobsThe 5000x5000 project will enable some 3,500
job seekers to find work in Wolfsburg where
an innovative labour scheme has been
developed for the production of a new multi-
purpose vehicle under the aegis of the newly
founded company, Auto 5000 GmbH. It was
only thanks to this scheme that the new
model could be built in Wolfsburg. Another
1,500 unemployed people will be taken on if
production of the Microbus in Hanover gets
the go-ahead. The cornerstones of the scheme
are a remuneration program which varies
according to working hours and in which the
end of the working day depends on meeting
production targets. Regular, value-adding
working hours average out over the year as a
whole at 35 hours a week. Each week, every
employee receives an average of three hours
customised training, half of which is paid at
training-time rates. The monthly wage
amounts to DEM 4,500 plus a minimum
bonus of DEM 500 a month. Employees also
get to participate in profits. Thus, the
5000x5000 project not only helps safeguard
Germanys future as an industrial location but
also helps to cut unemployment.
2Corporate Social Responsiblity Sustainability & Social Responsibility
-
Cooperative conict management andsocial securityFounded on Volkswagens German and European
heritage, personal development, social security and
employee participation in the corporate decision-
making process all form important aspects of the
companys human resources policy.
In accordance with German legislation (Works
Constitution Act) Volkswagens employees participate
in the corporate decision-making process via the
companys Supervisory Board and the Works Councils
at the various plants and subsidiaries. This involvement
is an expression of the internal democratic process and
cooperative conflict management practised at
Volkswagen. Employee and employer representatives
have an equal number of seats on the companys
Supervisory Board. The Chairman of the Supervisory
Board representing the employer has two votes, so
that in the event of a tied vote, a decision can always be
reached. The Works Council is elected by the employees
for a four-year term. The role of the Works Council is to
monitor compliance with laws and regulations,
collective bargaining agreements and factory agree-
ments. It also has co-determination and participatory
rights and can formally object to management deci-
sions. The practice of involving the employees in the
decision-making process at Volkswagen has shown that
responsible employee participation is an important
success factor for the company.
Pioneering the World Works Council When Volkswagen founded its European Works Council
in 1990 it was one of the first global players to have its
own transnational employee representative body. Since
then, the Group companies and plants in Central and
Eastern Europe which are not yet members of the
European Union have become fully fledged members of
the European Works Council. In 1999, Volkswagen
became the first company in the automotive industry to
set up its own Group World Works Council in which the
Groups companies and plants outside
Europe are also represented. The core
objective is to ensure ongoing global dialogue
among the various employee representative
bodies and with the company.
Socially responsible behaviourCooperation between Works Council and
management has led to various agreements,
including those governing Environmental
Protection (see page 22), the Principles of
Advancement for Women, and Partnership-
Based Conduct at Work. The aim of the Factory
Agreement on the Principles of Advancement
for Women, concluded in 1989, is to increase
the proportion of women in the workforce and
to ensure that women are also trained for
management positions. The Factory Agree-
ment on Partnership-Based Conduct at Work,
which dates from 1996, makes it clear that
sexual harassment, mobbing and other forms
of discrimination on grounds of gender, race
or religion, will not be tolerated at Volkswagen.
A declaration of social standards at
Volkswagen, to be drawn up by the end of this
year, will provide comprehensive regulation of
social rights and labour relations at the Group.
Employee social security ranks high among
Europes political priorities and is widely
regulated by law. It forms a central pillar of
what is meant by the term social market
economy. To this extent, Volkswagen
considers itself a European company. In
Germany, the hub of the companys world-
wide activities, the scope of employee social
security prescribed by law includes the
following benefits:
-
1819
Health insurance: provides the insured with
benets such as medical treatment, medicines,
hospital treatment and sickness benet.
Long-term nursing care insurance: provides
benets in the event that the insured requires
long-term nursing care.
Annuity insurance: in addition to disability and
retirement pensions, this also assures employees of
medical or work-related benets such as rehabilitation.
Industrial accident insurance: provides cover in the
event of accidents at work.
Unemployment insurance: in the event of the insured
becoming unemployed, this provides financial
support over a period of at least four months and at
most two years, in order to help the insured through
the transition period before other employment is
found.
The contributions to the legally prescribed health,
nursing care, pension and unemployment insurance are
met in equal parts by the employer and the employee.
In the field of voluntary company pension plans,
Volkswagen is breaking new ground. For more than 50
years, the company has granted its employees voluntary
social benefits in the form of a company
pension. In 2000, 10.6 percent of labour costs
were accounted for by company pensions. In
2001, this additional form of provision for old-
age was converted to an in-company pension
fund. As a result of the associated financing
via the capital market, only one percent of the
cost of wages and salaries is now required to
safeguard our company pensions. All invest-
ment income is allocated directly to the capi-
tal stock, thereby increasing employees
company pensions.
In the autumn of 1998, uniform minimum
standards and procedures were laid down for
all plants across the Group in order to protect
and promote health and safety at work. In
2000, the production plants of VOLKSWAGEN
AG reported an average attendance level of
95.9 percent. Our long-term efforts to improve
industrial health and safety helped to reduce
the number of industrial accidents in 2000 to
a total of 724.
Number of industrial accidents(German plants)
1997 1998 1999 2000
300
600
900
1,200
Industrial accidents at VOLKSWAGEN AG
Source: VOLKSWAGEN AG
2Cooperative Conflict Management Sustainability & Social Responsibility
-
www.volkswagen-environment.de/knowledge/sustainability-social-responsibility
Corporate sustainability vericationThe growing importance of sustainability for the inter-
national financial markets provides clear indication
that sustainable corporate policies are built around
a core of profitability.
When it comes to evaluating companies, no matter
where they are based, economic aspects are increasing-
ly being joined by ecological and social metrics.
Volkswagen was quick to identify this trend and has
supported it by applying for a number of validations. In
sustainability-oriented financial markets, a companys
sustainability performance joins the appraisal of other
stakeholder parameters to provide an important exter-
nal measure of its past performance and a basis for
confidence in its ability to master future challenges in
sustainable fashion.
The Dow Jones Sustainability World Index (DJSI World)
was established in 1999, and the European Dow Jones
Stoxx Sustainability Index in 2001. From the outset,
Volkswagen has been among the listed companies in
both these indexes. In 2000, Volkswagen was also named
Sustainability Leader in the Auto Manufacturers
category by the Zurich-based rating agency SAM
Sustainability Group and has since retained this status.
The DJSI is the first global index to reflect the perfor-
mance of companies which meet the criteria laid down
by SAM. Among the aspects verified are technology
leadership, social and environmental compatibility and
productivity. Based on this comprehensive
analysis and a comparison between the DJSI
and the conventional Dow Jones Index, for
the first time the success of managing for
sustainability has become evident.
Since 2001, Volkswagen has also been
included in the FTSE4Good index, a major
index on the London Stock Exchange. The
FTSE4Good index lists companies which, to a
special extent, work towards environmental
sustainability, uphold and support universal
human rights, take account of social consid-
erations and develop positive relationships
with stakeholders. Volkswagens shares are
included in many socially responsible and
sustainability-oriented funds, ensuring the
companys presence in this growth sector.
In 2000, the company returned the best results
in its corporate history. In conjunction with
its exceptional sustainability ratings, this is an
indicator for Volkswagen that shareholder
value is not diametrically opposed to the
notion of stakeholder value, but that the two
actually complement one another in a
meaningful way.
Contact:
VOLKSWAGEN AG
Environment, Industrial Safety and Traffic Systems
Rudolf Stobbe
Letter box 1896
38436 Wolfsburg, Germany
Tel. +49 5361 923248
VOLKSWAGEN AG
Reinhold Kopp
Head of Corporate Government Relations
Letter box 1882
38436 Wolfsburg, Germany
Tel. +49 5361 978622
2021
-
56
Environmental Policy & Management
3
-
Volkswagen Environmental Management System
STEP* Environmental Marque Committee (EMC)
Chief Environmental Ofcer of theVolkswagen Marque
EnvironmentalManagement Ofcer,Product
EnvironmentalManagement Ofcer,Production
EnvironmentalManagement Ofcer,Sales
Environmental Policy and Management
for the Volkswagen Marque
Boa
rd M
emb
er, R
esea
rch
and
Dev
elop
men
t
Hea
d o
f R
esea
rch,
Env
iron
men
t and
Tra
nsp
orta
tion
Product, Environmentand Trafc Systems
Environment, IndustrialSafety and Trafc Systems
EnvironmentTechnology
Lupo Polo Golf NewBeetle
Passat OtherModels
Wolfsburg Emden Hanover Mosel Pamplona OtherPlants
VehicleRecycling
TrafcSystems
Life CycleAssessment
SustainabilityStrategy
Environmental Project Supervision
UmweltpprojektverfolgungPlant Environment Ofcers
Distributors Dealers Importers
UmweltpprojektverfolgungEnvironmental and Consumer Protection
*STEP, the Strategic Task Force for Environmental Protection, is a Group-wide body responsible for coordinating environmental policy amongst theindividual companies and regions within the Volkswagen Group
Source: VOLKSWAGEN AG
Environmental Planning
Industrial Safety (Work Environment)
-
It is the declared aim of Volkswagen in
all its activities to restrict the
environmental impact to a minimum
and to make its own contribution to
resolving environmental problems at
regional and global level.
It is Volkswagens aim to offer high-
quality automobiles which take equal
account of the expectations of its
customers with regard to environmental
compatibility, economy, safety, quality
and comfort.
In order to safeguard the long term
future of the company and enhance its
competitive position, Volkswagen is
researching into and developing
ecologically efficient products, processes
and concepts for personal mobility.
Providing frank and clear information
and entering into dialogue with
customers, dealers and the public is a
matter of course for Volkswagen.
Cooperation with policy-makers and
the authorities is based on a fundamen-
tally proactive approach founded on
mutual trust and includes provision for
emergencies at each production site.
In keeping with their duties, all
Volkswagen employees are informed,
trained and motivated in respect of
environmental protection. They are
under obligation to implement these
principles and to comply with statutory
provisions and official regulations as
these apply to their respective activities.
Those responsible for environmental
management at Volkswagen shall, on
the basis of the companys environmen-
tal policy, ensure that in conjunction
with suppliers, service providers,
retailers and recycling companies, the
environmental compatibility of its
vehicles and production plants is sub-
ject to a process of continuous improve-
ment.
The Volkswagen Board of Management
shall, at regular intervals, check that
the companys environmental policy
and objectives are being observed and
that the Environmental Management
System is working properly. This shall
include evaluation of the recorded
environmentally relevant data.
2223
3Environmental Policy Environmental Policy & Management
In 1995, Volkswagen replaced its Environmental
Guidelines with a Corporate Environmental Policy. As
practical implementation of this policy can only be
achieved through ongoing dialogue with the workforce
and its representatives, a Factory Agreement on
Environmental Protection was also concluded with the
Company Works Council.
Our efforts in the direction of the widely
debated concept of sustainability are based
on our Corporate Environmental Policy. Right
now, in what is a fascinating process for us all,
we are considering how to make better use in
this context of the particular expertise and
experience developed at Volkswagen in the
fields of work and social responsibility.
1
3
5
7
4 6
Basic Principles
Contact:
VOLKSWAGEN AG
Environment, Industrial Safety and
Traffic Systems
Rudolf Stobbe
Letter box 1896
38436 Wolfsburg, Germany
Tel. +49 5361 923248
2
Preamble to Volkswagens Environmental Policy
Volkswagen develops, manufactures and markets motor vehicles worldwide with the aim of safeguarding personal mobility.
The company accepts responsibility for the continuous improvement of the environmental compatibility of its products and
for the increasingly conservative use of natural resources, with due regard to economic aspects. Accordingly, the company
makes environmentally efficient, advanced technology available worldwide and brings this technology to bear over the full
life cycle of its products. At all its corporate locations, Volkswagen works hand-in-hand with society and policy-makers to
shape a development process that will bring sustainable social and ecological benefits.
-
The international community has set itself the goal of
reducing worldwide anthropogenic emissions of
greenhouse gases (i.e. those caused by human activity).
In December 1997, it was decided at the United Nations
Conference on Climate Change in Kyoto to reduce
emissions of the six greenhouse gases
carbon dioxide (CO2)
methane
dinitrogen monoxide (laughing gas)
fully halogenated chlorofluorocarbons (CFCs)
partially halogenated CFCs
sulphur hexafluoride
over the period 2008 to 2012 by at least five percent with
reference to 1990 levels. The European Union commit-
ted itself to a reduction of at least eight percent and
Germany 21 percent. Following the meeting of the
signatories in July 2001 in Bonn, ratification of what is
known as the Kyoto Protocol came closer to becoming a
reality.
CO2 is the main cause of climate change. Twelve
percent of total anthropogenic emissions of this gas
come from road traffic, with cars accounting for 5.5
percent. But with the steady growth in mobility
requirements throughout the world, this proportion is
likely to increase. In industrialised countries, the main
reason for higher emissions is the fact that more and
more people prefer to live in the country and commute
to and from work, and leisure activities are becoming
ever more popular. In newly industrialising countries,
the growth in emissions from road traffic is largely due
to greater prosperity bringing higher levels of car
ownership. Both developments indicate that the
automobile is set to remain a central element in
transport systems throughout the world. Consequently,
reducing fuel consumption and with it CO2 emissions
is now a major development objective for automakers.
Volkswagens drive systems and fuel strategy (see page
52) reflects this focus.
Efforts to develop vehicles and drive systems
for the future are, however, subject to a com-
bination of ecological and economic con-
straints. Technological innovations have to be
scrutinised for environmental compatibility,
and their cost/benefit ratio and practical
value must be assessed. Yet it is becoming
increasingly clear that some of the demands
made of development processes are poten-
tially incompatible. Car design has to take into
account customers wishes for higher levels of
equipment and comfort in terms of ergono-
mic interior design, ride quality and interior
acoustics, for example along with attractive
design and high performance. On the other
hand, engine and vehicle developers have to
fulfil increasingly strict active and passive
safety criteria, while at the same time ensur-
ing a further improvement in environmental
compatibility by respecting more rigorous
exhaust emission standards and taking
account of the introduction of recycling
systems. These conflicting goals can only be
met by achieving a proper balance between
environmental measures which increase
direct costs and the tangible cost savings
which result from improved consumption,
without compromising on performance.
In 1993, the German Association of the
Automotive Industry (VDA) undertook to
reduce the average fuel consumption of its
new cars by 25 percent by the year 2005,
compared with 1990 levels.
At European level, in 1995 the Association of
European Automobile Manufacturers, ACEA,
gave an undertaking that it would reduce
average CO2 emissions from new vehicles to
140 g/km by 2008. This, too, represents a 25
Climate Protection and Fuel Consumption
-
1995
-40
-30
-20
-10
0ACEA CO2 Agreement
ACEA current status
Volkswagen
2000 2005 2010
%
2425
3
percent reduction and thus complements the undertak-
ing made by the VDA. Progress so far indicates that,
between 1995 and 2000, Volkswagen succeeded in
reducing corporate average fuel consumption by some
twelve percent. Apart from improved engine and vehicle
design, one contributory factor here has been the
increase in sales of new vehicles with diesel engines in
recent years. Given the current state of the art, we can
now define four key development factors which will
help to achieve these highly ambitious fuel consump-
tion and CO2 goals.
The Lupo 3L TDI and Lupo FSI are the first
mass-produced vehicles in which a combina-
tion of various technical measures has
reduced fuel consumption per hundred
kilometres to three and five litres respectively.
Moreover for the first time ever in a diesel
vehicle exhaust emissions have been
reduced below the limits laid down by the
Euro 4 regulation due to become law in 2005.
It is now up to Volkswagens engineers to
transfer these innovative technologies to
other models. Each model will require a
specific blend of modifications to the vehicle
itself and its engine to compensate for the
individual factors responsible for increasing
consumption levels. Direct injection
technology is likely to play a key role in
fulfilling the undertakings made for 2005 and
2008. But to operate efficiently, direct
injection requires sulphur-free fuels.
Drop in CO2 emissions due to falling average eet consumption
Key development factors for fuel-efcient vehicles
Volkswagens contribution to meeting the ACEAs Voluntary Agreement on CO2(0 % = CO2 emissions based on 1995 corporate average fuel economy)Source: VOLKSWAGEN AG
Improvedcombustion
Reduzierung derReibung und des Luftwiederstandes
4
Lightweight design
1
3 4
Source: VOLKSWAGEN AG
Reduced friction and drag
Gearboxmodications
2
Climate Protection and Fuel Consumption Environmental Policy & Management
-
Vehicle life cycle inventoriesSince the first life cycle inventory for an entire vehicle
was published in 1996 (for the Golf A3), Volkswagen has
drawn up three further inventories: for the Lupo 3L TDI,
the petrol-engined Golf A4 (55 kW) and the diesel-
engined Golf A4 TDI (66 kW).
Drawing up life cycle inventories has now become a
routine matter for Volkswagen. Between the rst and
fourth inventories, the cost and effort involved were
reduced by more than 50 percent ample demonstration
of the technical progress made on this front. The data
acquisition process is becoming more and more
comprehensive and the system for deriving the input
data for production operations from the development
specications has proved highly effective. Moreover, the
program which evaluates the vast collection of data
leaves little to be desired.
Given our thorough knowledge of the
individual stages in the manufacture of a car it
is their weighting in the overall balance sheet
which constitutes by far the most complex
part of a life cycle inventory. The initial
production of materials reflected in the
inventory process in vast volumes of data for
steel, plastic, aluminium, etc. is of greater
environmental relevance than the actual
process of transforming them into a car.
By contrast, drawing up a life cycle inventory
for the service life of a vehicle (driving,
refuelling, servicing) is relatively simple. As
the basis for this part of the assessment,
Volkswagen assumes a driving pattern based
on the statutory New European Driving Cycle
(NEDC) for measuring consumption and
emissions. All the required data for this cycle
is available for each vehicle. Analysis clearly
shows that with the exception of nitrogen
oxides in diesel exhaust emissions of
hydrocarbons, sulphur oxides and particu-
lates account for only a tiny proportion of the
respective total emissions. The majority in
terms of volume is accounted for by carbon
dioxide (CO2).
Curriculum Vitae
www.volkswagen-environment.de/knowledge/environmental-management
As the rst stage in a life cycle assessment, a life cycle inventory
involves an overall environmental assessment of products, pro-
duction processes and services across their entire life cycle. This
begins with the extraction of the raw materials and continues
all the way to completion of the nished product, including its
packaging. The inventory identies the total raw material
requirements and includes data on their processing, not least the
quantities of energy required and resultant emissions to air and
water. In the case of consumer goods, the life cycle then continues
via the retailer and the consumer right down to disposal or post-
consumer recycling. All transport processes involved are also
analysed. Life cycle inventories are drawn up in line with the
international standard ISO 14040/41.
Life cycle inventories supply environmental management sys-
tems with important data that can help improve the environ-
mental characteristics of a product throughout its life cycle.
What Is a Life Cycle Inventory?
Why Draw Up a Life Cycle Inventory?
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3
It is relatively difficult to compare the four models for
which life cycle inventories have been drawn up to date
because the Lupo belongs to a different category than
the Golf. The most similar inventory results are those
for the Golf A4 petrol and diesel models. A comparison
here shows that, over its entire life cycle, the TDI Golf
(diesel) emits three tonnes less CO2 than its petrol-
engined counterpart. In addition, on the fuel front, the
production and distribution of petrol for the Golf A4
generates 40 kilograms more hydrocarbons than in the
case of diesel. However, these advantages of the diesel
engine are offset by higher NOx and particulate
emissions.
The business of drawing up an inventory for
the manufacturing stage of the vehicles life
cycle takes up too much time and effort for it
to be feasible for each and every model.
Instead, the scope of the existing Internation-
al Material Data System for cars (see page 74)
is to be extended in future by adding further
environmental data. This will lead to
optimised data acquisition for the car
production phase.
Comparative life cycle inventory
Primaryenergy
545 GJ
10
20
30
40
50
60
70
80
90
100
%
Steel
722 kg
Plastics
253 kg
Lightmetals
132 kg
CO2
36 t
NM VOC
162 kg
SO2
34 kg
NOx
77 kg
PM
15 kg
Car production
Service life, recycling
Petrol and dieselproduction
Materials production
Columns from left to right: Golf A3 (petrol), Golf A4 (petrol), Golf A4 TDI, Lupo 3L TDI(100 % = values at foot of diagram)PM: particulate massNM VOC: non-methane organic compounds (incl. propane, butane and benzene)Source: VOLKSWAGEN AG
Life Cycle Inventories Environmental Policy & Management
-
Innovative environmental protection cuts costsThe cost of end-of-pipe environmental technology
which treats pollution rather than preventing it, can be
clearly defined. Today, though, such technology is
progressively being replaced by fully integrated
measures which aim to ensure that pollution is kept to a
minimum from the outset by tackling root causes. On
the financial side, this makes it increasingly difficult to
specifically identify and report environmental costs. As
a result, such details of costs as are published provide
only a limited and increasingly inadequate picture of
Volkswagens efforts to protect the environment.
Investment in environmental protectionIn the year 2000, Volkswagen invested EUR 27.1 million
in environmental technology. In one current example of
the companys integrated approach to environmental
protection, dry machining is being introduced in the
mechanical engineering sector in Wolfsburg to replace
some of the existing metal-cutting machines. This does
away with the need for cost-intensive cutting com-
pound reprocessors, chip centrifuges and demulsifiers,
and thereby frees up floor space. This particular
integrated environmental protection measure will make
it possible to operate near-dry mechanical manufactur-
ing processes in future. In addition, replacing the
machines and components that use cooling lubricants
will create a more pleasant working environment for our
employees.
Environmental protection operating costsIn 2000, the introduction of a new system of
parameters for recording the operating costs
of environmental protection measures was
completed at Volkswagens six German plants.
The system records the percentage of total
operating costs accounted for by environ-
mental protection in a specic area or for a
particular cost centre. When changes take
place in structures or processes, the para-
meters can be adjusted accordingly.
Expenditure was assessed at EUR 190.3 million
for 2000 a signicant rise, largely explained
by the use of the more precise method of data
acquisition. With the new system, costs can be
calculated much more easily than in the past.
In 2001, the system was also introduced at
Volkswagens other European plants.
Product-related environmental costsAs part of a long-term research project to
record product-related environmental costs
we have carried out two pilot studies to
analyse process-related environmental costs,
the costs of material residues and external
recycling costs in respect of a plastic fuel tank
in one case and a painted vehicle body in the
other. Because of the high cost and effort
involved in separate environmental cost
accounting, we are currently looking into
alternative methods of incorporating
environmental cost data into existing systems
in a way that makes strategic sense.
Less Is More
Capital investments and operating costs for environmental protection
34
86
1998 1999 2000
42
150
27
190
Capital investments
Operating costs
Figures in EUR millions, German plants excl. Zwickau/Mosel and Chemnitz Source: VOLKSWAGEN AG
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3
Auditing environmental managementThe process of establishing environmental manage-
ment systems has been completed at most Volkswagen
plants. In Europe, these systems are largely based on
the European Unions Environmental Management
and Audit Scheme (EMAS). Outside Europe, ISO
standard 14001, which is equivalent to EMAS in many
key aspects, is used. Our plants in Hanover (Germany),
Polkowice (Poland), Uitenhage (South Africa), Crdoba
(Argentina) and Puebla (Mexico). achieved initial
certification during 2000.
Some plants are currently being restructured or in the
process of setting up new production activities and
have not quite achieved their goals yet but they will
soon follow suit. We are concentrating our activities on
the plants in Taubat (Brazil), Changchun (China),
Martin (Slovakia) and Brussels (Belgium).
Internal audits are regularly carried out by trained
personnel in order to check the effectiveness and
efficiency of our environmental management systems.
At present no serious inadequacies have been identi-
fied, but management has received many suggestions
relating to technical, organisational or financial
improvements. These have mainly focused on saving
energy and resources and protecting the soil and
groundwater.
Along with training courses in Wolfsburg and
consultation sessions at other plants, what we
call international audits are also carried out
to help plants to set up their own environ-
mental management systems. These have
been taking place since 1999, when environ-
mental experts from Volkswagen Argentina,
Volkswagen do Brasil, AutoEuropa (Portugal)
and Volkswagens German headquarters
investigated the environmental situation in
Anchieta (Brazil). In addition, colleagues from
across the Group are frequently involved in
audits at the companys German plants.
Today, these audits runs very smoothly and
offer a number of benefits for all concerned:
They enable a transfer of know-how to
take place.
They ensure a high uniform international
level of auditing.
They enable closer personal contacts to be
established between environmental experts
from the various plants on different
continents.
They provide local colleagues with support
in the run-up to external environmental
certification processes.
Once each plant in Germany has been
certified at least once, the next task is to
establish and maintain such environmental
management systems at all of the Groups
plants worldwide.
Passing the Test
www.volkswagen-environment.de/on-the-ground
Environmental Costs/Eco-Audit Environmental Policy & Management
-
Volkswagen employees help the environment On the next few pages, we aim to keep you informed about the progress of the programmes and initiatives
described in our 1999/2000 Environmental Report, as well as reporting on new projects.
Pulling Together
Human Resource Development and Environmental Communication Programme
Management seminarsSince 1997, 205 out of a total of 943
senior and junior managers have
received training in 13 half-day semi-
nars (Volkswagen Marque, Germany)
Training of supervisorsTraining of 733 out of 2,021 VOLKS-
WAGEN AG supervisors in 2-day
workshops.
Environment specialists Training of 549 specialists from
VOLKSWAGEN AG as environmental
specialists in 37 seminars since 1990.
All participants act as multipliers in
their capacity as supervisors, special-
ists or section managers.
Recycling-friendly design:13 seminars with 128 participants.
Eco-Centre becomes Environmental Service Centre (ESC): The ESC provides a location for theoret-
ical instruction and a base for the
many environmental service activities
of the apprentices at the Wolfsburg
plant. An average of 20 to 24 appren-
tices (industrial/technical or commer-
cial) attend the Centre at any one time
making for a total of around 510 a
year.
e.g.
Recycling Initiative (see page 31)
Internal Environmental Award
competition (siehe Seite 32)
Environmental Service Centre
Company newspaper Autogramm
Environmental Report
Environmental statements
Umweltbrief
Environment Newsletter
Poster campaigns
Factory meetings
Open days
Green factory tour
Intranet
Internet
Suggestions scheme
Green factory rally for apprentices
HR development Initiatives/projects Information/motivation
Measuring noise levels in the production sector: (from left) Patrik During, Sandra Hackel, Fabian Haufe,Klaus Krolik (ESC trainer), Christian Camehl, Jens Klinner
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3031
Recycling-friendly designIn the seminar entitled Recycling-friendly Design, our
design engineers learn how the decisions they make
when developing new vehicles inuence the nature,
efciency and economics of the end-of-life-vehicle
recycling process. They are introduced to the statutory
regulations on vehicle recycling, material recycling from
end-of-life vehicles, the goals and basic principles of
recycling-friendly design and the use of dismantling
studies as an aid to the design process.
A workforce initiative becomes aninstitution(as reported in 1997 and 1999)
Progress and goals
The scheme has been in existence since 1994
and involves the collection of packaging mate-
rial such as plastic caps, plastic film and card-
board packaging and its resale to the original
suppliers or recycling companies. The project
involves employees who, for age or health rea-
sons, are not able to work in the production
sector. This way we take some of the strain off
the environment and at the same time safe-
guard the jobs of older or disabled colleagues
in a way that makes economic sense, says
Norbert Loeper, initiator of the project.
Results for 2000Cost cutting through resale of recyclable packaging
or reduction of material requirements
Plastics EUR 0.72 million
Cardboard packaging EUR 0.36 million
Nopa foam EUR 0.12 million
Total EUR 1.2 million
Waste reduction
Cardboard packaging 219,110 kg
Plastics 117,814 kg
Nopa foam 37,447 kg
Total 374,369 kg
Savings per vehicle
1996: EUR 0.09
1997: EUR 0.14
1998: EUR 1.23
1999: EUR 2.33
2000: EUR 1.96
2001: EUR 2.46 (1st quarter)
Green Team Recycling Scheme
The 13 seminars already staged in collabora-
tion with Volkswagen Coaching GmbH for a
total of 128 participants have been a resound-
ing success. The long-term aim is to provide
training for some 1,000 engineers.
Employee projects
3Employees Environmental Policy & Management
-
First internal Volkswagen Environmental AwardThe Environmental Award is intended to
underline our commitment to the principle of
sustainability. We have to achieve a balance
between ecological and economic considera-
tions and social responsibility if the lives of
future generations are to be assured. The Envi-
ronmental Award is a way of rewarding
achievements, enhancing motivation and
demonstrating that sustainability represents a
daily challenge for each and every one of us.
This was how Uwe Bartels, member of the
VOLKSWAGEN AG Group Works Council, and
Rudolf Stobbe, Environment, Industrial Safety
and Trafc Systems explained the reasoning
behind the introduction of the Environmental
Award.
Three projects have so far been singled out for
an award: employees at the Brunswick plant
succeeded in reducing varnish consumption in
the brake disc paintshop; at the Emden plant
the use of salt on the roads in winter was mini-
mised; and at the Wolfsburg plant the use of
salt-bath hardening techniques in the tool
hardening bay was drastically reduced and
replaced by gas heat treatment. In future, the
award will be presented every two years.
Environmental pro-
tection at Volkswagen
depends to a very
large extent on the
willingness of the
workforce to get in-
volved. Many of our employees have
displayed a commitment to protect-
ing the environment that goes well
beyond the call of duty. The
Environmental Award was created to
help the company to reward that
commitment.
Rudolf Stobbe,
Chief Environmental Officer of the
Volkswagen Marque
Volkswagen Environmental Award 2001: (from left) Uwe Bartels, Herbert Engel, Frank Ludewig, Wolfgang Feder, Uwe Hentschel, Oliver Frey, Rudolf Stobbe
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3233
Environmental history projectThe 1950s saw one production record after another
being broken at the Volkswagen plant in Wolfsburg.
Demand for the Beetle, the symbol of the German
economic miracle, was buoyant, and production
capaci