Better Health for All

Volkswagen admitted in 2015 to installing software in diesel vehicles to cheat emissions tests, leading to significantly higher nitrogen oxide emissions during normal driving conditions.

This systematic concealment of risks contributed to approximately 1,200 premature deaths in Europe and an estimated 5 to 50 premature deaths annually in the U.S. The company faced regulatory sanctions, including a $1.45 billion civil penalty from the U.S. Environmental Protection Agency (EPA) for violating the Clean Air Act. These actions represent severe negative health externalities and a deliberate concealment of health risks. Volkswagen aims to reduce emissions and the use of substances that lead to air and water pollution at its production sites.

Fair Money & Economic Opportunity

Volkswagen Finance was fined £5.4 million by the UK Financial Conduct Authority (FCA) for inadequate treatment of customers facing financial difficulties between 2017 and 2023.

The FCA identified shortcomings including insufficient understanding of borrowers' circumstances, repossessing vehicles without exploring alternative solutions, and poor communication practices. Notably, the company sent threatening correspondence to a vulnerable customer shortly after a suicide attempt. In response, the company agreed to provide £21.5 million in redress to approximately 110,000 affected customers and implemented service improvements, including a new debt collection model.

Fair Pay & Worker Respect

In 2024, 92.0% of the Volkswagen Group’s employees in the European Economic Area were covered by collective bargaining agreements.

The company's CEO to median employee pay ratio was approximately 195 in 2024. The Total Recordable Injury Rate (TRIR) for the Volkswagen Group was 11.7 in 2024. The unadjusted Gender Pay Gap for the Volkswagen Group was 13 percent in 2024, translating to a pay equity ratio of 0.87. The staff turnover rate for the Volkswagen Group was 6.1% in 2024. Approximately 3.74% of the Volkswagen Group's workforce was on temporary employment contracts in 2024. In 2024, Mexico agreed to ensure Volkswagen provides full backpay and benefits and strengthens worker rights protection following a U.S. request, indicating a substantiated labor-law violation.

Fair Trade & Ethical Sourcing

Volkswagen mandates its Code of Conduct for Business Partners as a mandatory component of all contracts with direct suppliers.

Compliance with these standards, which include human rights, environmental, social, and compliance requirements, is mandatory for contract awards. Direct suppliers are also required to pass these requirements down the supply chain.

Honest & Fair Business

Volkswagen's U.S. finance subsidiary settled with the SEC for $48.75 million in March 2024 for defrauding investors by concealing 'defeat devices' in diesel vehicles.

The company operates a comprehensive, Group-wide whistleblower system that received 3,555 reports in 2024. This system offers anonymous reporting via multiple channels, including a 24/7 international telephone hotline and an app, and guarantees protection from reprisals. Mandatory compliance training for all employees includes an explanation of the whistleblower system, and statistical reports are provided to the Board of Management and Audit Committee quarterly. However, no measurable, outcome-oriented targets for whistleblower protection are currently defined. Volkswagen maintains a strict zero-tolerance anti-corruption policy, prohibiting corruption worldwide and expressly forbidding facilitation payments. This policy is supported by Business Partner Due Diligence, clear rules on benefits and gifts, and 100% implementation of anti-corruption training for functions-at-risk across the Volkswagen Group. In 2024, five cases of corruption or bribery were ascertained, leading to one conviction of a former employee.

Kind to Animals

Volkswagen has a comprehensive no-animal-testing policy, pledging to exclude animal testing from future research unless legally necessary.

This standard is included in its Code of Conduct for Business Partners and applies to all 12 brands and 640,000 employees. The company has demonstrated measurable positive impact on wildlife conservation, having restored over 40 acres of bio-diverse wetland by 2020, creating habitats for nearly 200 bird species and various plant and animal species. In 2024, actions were taken to reintroduce the Apollo butterfly, a Red List of Threatened Species. Volkswagen Group China's Green Belt reforestation project aims to plant over 8.5 million trees by 2030. Volkswagen actively engages in public policy by being a founding member of the 'Biodiversity in Good Company e. V.' initiative, acknowledging the goals of the Convention on Biological Diversity, and communicating its no-animal-testing pledge to PETA.

No War, No Weapons

Volkswagen's CEO has publicly expressed openness to exploring military vehicle production and providing consultancy to the defense industry, indicating a potential shift towards defense-adjacent activities, despite no current revenue from arms contracts.

The company is also considering repurposing its Osnabrück plant for defense production. Volkswagen has a formal policy prohibiting the use of primary materials of Russian origin in goods delivered from September 30, 2023. However, its supply chain in 2023 and 2024 included gold from the Sudan Gold Refinery, controlled by a paramilitary group accused of genocide, and sources 3TG minerals from the Democratic Republic of Congo, a conflict region. In 2024, only 61% of Volkswagen's 3TG suppliers were assessed by the Responsible Minerals Initiative, not certified conflict-free.

Planet-Friendly Business

Volkswagen Group's total Scope 1, 2, and 3 greenhouse gas emissions were 412.08 million tCO2e in 2024.

The company has SBTi-validated targets: Scope 1 and 2 are 1.5°C aligned with a 50.4% reduction target by 2030, which was exceeded by achieving a 51% reduction by end of 2024. Scope 3 targets are 2°C aligned for a 30% reduction by 2030. In 2024, 66.9% of total global electricity consumption was from renewable sources. Water intensity was 30 m³ per 1 million euros revenue. The Biodiversity Land Use Indicator (BLI) was approximately 28.6% in 2024, complemented by a Biodiversity Fund of up to €25 million annually for external projects starting in 2025. The company targets net carbon neutrality by 2050, with global production sites aiming for net carbon neutrality by 2040, supported by a 2030 interim reduction target. Climate scenario analysis uses IEA Net Zero and IPCC SSP5-8.5 scenarios, aligning activities with the 1.5°C goal. The company acknowledges stranded asset risks from internal combustion engine vehicle production. Approximately 42.3% of Group-wide water withdrawal is from high or extreme water stress areas. Volkswagen's Responsible Lithium Partnership involves participatory management with local civil society. The company implements extensive retraining and upskilling for its workforce. In 2024, 1.62% of total emissions were offset using 70% Verra and 30% Gold Standard credits.

Respect for Cultures & Communities

The Maasai accuse Volkswagen of making false and misleading claims about their participation in a project

and state they have not given free, prior, and informed consent for the project , indicating 0% participation of affected communities in FPIC processes for this project . Volkswagen Group has 47 formal partnerships with local community groups, including 38 municipalities in Germany , two climate partners , and seven partnerships in the US (e.g., with universities, colleges, and US Soccer) . Volkswagen of America's direct sourcing from US-based suppliers accounted for over half of its $7.02 billion supplier sales volume in 2024 . The company has a framework for taking immediate measures to prevent, stop, or minimize violations if identified , and develops concrete plans to prevent recurrence of cultural incidents . Volkswagen of America also donated $1.25 million to conserve 1,500 acres in Tennessee's Cherokee National Forest , which includes preserving cultural resources .

Safe & Smart Tech

Volkswagen experienced a data breach affecting 3.1 million Americans, exposing phone numbers and email addresses.

A separate breach disclosed in late 2024/early 2025 exposed personal data of 800,000 EV drivers, including precise location data for 460,000 cars, and 9.5 TB of telemetry data, which was stored unencrypted on AWS cloud servers and accessible for months. This lack of encryption was explicitly called a "fatal mistake." Volkswagen was fined 1.1 million euros for GDPR violations in 2019, including lack of consent and inadequate data processing agreements, and faces potential GDPR violations for the unencrypted data in the 2024/2025 breach. The company failed to follow the principle of Privacy by Design. There was also an alleged exfiltration of confidential files in September 2024. Volkswagen has achieved ISO 27001 certification for key processes and is implementing UNECE-aligned cybersecurity systems.

Zero Waste & Sustainable Products

In 2024, the Volkswagen Group diverted 92.68% of its waste for recovery

, with Volkswagen do Brasil achieving an average waste management score of 94%. All Volkswagen Group vehicles registered in Europe comply with the European Directive requiring 85% recyclability and 95% recoverability at end-of-life. In 2024, recycled content in battery-electric vehicles ranged from 12.5% to 24.9% , and 16.4% to 26.2% for internal combustion engine vehicles. Specific components like ArtVelours Eco® seat covers contain 71% recycled content. Vehicles are developed based on circular criteria, focusing on reparability and recycling, and the TRATON Group launched circular design principles in 2024. Volkswagen has reduced waste per vehicle produced by 79.4% between 2010 and 2024 through initiatives like 'Zero Impact Factory' and 'Zero Landfill' concepts, a pilot battery recycling plant, and an Aluminum Closed Loop project. Targets include a 37.5% reduction in absolute negative environmental impacts by 2030 and 68.8% by 2040 , aiming for net neutrality by 2050. Hazardous waste is managed using digital systems and compliance with international conventions. The Code of Conduct for Business Partners requires suppliers to prevent waste and recycle , with 85% of suppliers having certified environmental management systems in 2024.