Since 2021, Volkswagen has been a leader in transparent and responsible raw material procurement, publishing an annual Responsible Raw Materials Report. This report details the Group’s measures to mitigate human rights and environmental risks in high-risk raw material supply chains. The focus is on indirect suppliers in upstream supply chains, where challenges are most significant. Volkswagen’s Responsible Raw Materials Management System currently covers 18 priority raw materials, assessing and addressing risks to ensure sustainable practices.
Key Highlights
Transparency and Risk Mitigation:
Volkswagen’s ongoing commitment to transparency is exemplified by the continuous publication of the Responsible Raw Materials Report. This annual report, now in its fourth year, summarizes the risks, challenges, and progress in sustainable raw material procurement, positioning Volkswagen as an industry pioneer.
Expansion of Priority Raw Materials:
Volkswagen has recently added cotton and magnesium to its list of priority raw materials, expanding its scope to address additional risks.
Sustainability Targets for Suppliers:
Under the new regenerate+ sustainability strategy, Volkswagen aims for 95% of its suppliers to achieve a positive sustainability rating by 2040, reflecting a commitment to improving environmental performance across its supply chain.
Higher Standards in Raw Materials Extraction:
Volkswagen joined the Initiative for Responsible Mining Assurance (IRMA) in 2022, which sets global standards for sustainable raw material extraction. The Group requires its suppliers to progressively meet higher standards.
Stakeholder Engagement:
Volkswagen continues to engage in stakeholder dialogues, such as the Responsible Lithium Partnership in Chile and support for the Marikana Youth Centre in South Africa, fostering collaboration and sustainable practices.
Additional Initiatives in 2023
Leather Working Group:
Volkswagen joined the Leather Working Group (LWG) in 2023, with Porsche leading the coordination of sustainable leather procurement.
Responsible Mica Initiative:
Porsche is committed to sustainable mica extraction in Madagascar, working to establish transparent and responsible supply chains.
Global Platform for Sustainable Natural Rubber (GPSNR):
Volkswagen supports sustainable natural rubber extraction, offering training to smallholders to improve their living conditions.
Aluminium Stewardship Initiative (ASI):
Led by Audi, ASI requirements have been incorporated into Volkswagen’s contractual documents and implemented across the Group.
Mesa Multiactor:
In 2023, Volkswagen held 11 workshops with local stakeholders in Chile to address water issues related to lithium mining, part of a multi-year GIZ project aimed at identifying and solving challenges.
Volkswagen’s Commitment to Sustainable Supply Chains
Volkswagen’s comprehensive approach to responsible raw material procurement underscores its dedication to sustainability. By continually improving transparency, setting ambitious targets, and engaging with stakeholders, Volkswagen is paving the way for more sustainable supply chains and industry practices.
