Volkswagen
Volkswagen Group is one of the world's leading manufacturers of automobiles and commercial vehicles, aiming to shape the transformation of the automotive industry through its diverse brands and financial services.
Positive signals
Volkswagen has implemented a group-wide code of conduct for business partners that includes requirements for environmental protection, aiming to ensure responsible practices throughout its supply chain.
Volkswagen has integrated sustainability targets into variable executive remuneration, using fulfillment of these targets as a multiplier for annual bonuses, thereby linking financial incentives to ESG performance.
Volkswagen Group has committed to aligning its activities with the Paris Agreement's 1.5°C goal, targeting carbon neutrality by 2050. The group set intermediate targets, including a 50.4% reduction in production-related CO2 emissions by 2030 (compared to 2018) and a 30% reduction in CO2 emissions during the use phase for passenger cars and light commercial vehicles by 2030. These targets have been approved by the Science Based Targets initiative.
Concerns
Volkswagen AG has been impacted by a high level of ESG-related controversies in the past three years, as reflected in its Controversy Rating from Sustainalytics, which affects its overall ESG risk profile.
HIGH
Source →Volkswagen continues to face ongoing legal repercussions from the diesel emissions scandal that was revealed in 2015, with various proceedings still active as of 2025, indicating persistent governance and compliance risks.
CRITICAL
Source →Fitch Ratings assigned Volkswagen an ESG Relevance Score of '4' for Governance Structure, citing a lack of independence and diversity at the supervisory board level, which raises concerns about board effectiveness and oversight.
HIGH
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