Every year, the Volkswagen Group reports on its progress in terms of transparency and risk mitigation within its raw material supply chains. The report focuses on sixteen high-risk raw materials, including those used for battery production, such as lithium and cobalt. In the new report, Volkswagen discloses for the first time its suppliers of tin, tantalum, tungsten, and gold, as well as their countries of origin. Murat Aksel, Member of the Board of Management of the Volkswagen Group responsible for Purchasing: “We can only overcome global challenges and succeed in the areas of environmental protection and human rights if we work together with all stakeholders and our business partners throughout the supply chain.”
The Volkswagen Group aims to be the automotive industry leader in responsible raw material sourcing. In 2021, the Group published its first report on responsible raw materials management. It detailed Volkswagen’s methodology and actions within the framework of newly implemented due diligence. This year’s report provides an initial look at significant achievements and an outlook on future challenges.
The “Responsible Raw Materials Report” is the first of its kind in the automotive industry. It is dedicated to measures aimed at reducing risks to human rights and environmental protection in particularly vulnerable supply chains. The report covers 16 high-risk raw materials, including battery production materials such as lithium and cobalt. Often, the greatest risks to human rights and the environment occur deep in the supply chain, at a level where the car manufacturer itself usually has no direct influence. This makes transparency and the implementation of standards particularly challenging.
In the new report, Volkswagen discloses for the first time a list of smelters used in its supply chains for tin, tantalum, tungsten, and gold, as well as their countries of origin. Furthermore, the car manufacturer used 2021 to prepare precise sustainability requirements for its suppliers, covering, among other things, leather and natural rubber.
In 2021, the Volkswagen Group joined a commitment to a moratorium on deep-sea mining, which poses potentially serious environmental risks. Additionally, the company joined the Global Platform for Sustainable Natural Rubber (GPSNR) and supported the development of reporting requirements for companies in rubber supply chains.
Crucial for the Volkswagen Group in 2022 is cooperation with suppliers in the battery supply chain – from mine to cell – to promote responsible sourcing and extraction through the implementation of credible certification systems. In March 2022, Volkswagen joined the Initiative for Responsible Mining Assurance (IRMA) and committed to the gradual implementation of IRMA standards in its battery supply chains.
Murat Aksel, Member of the Board of Management of the Volkswagen Group responsible for Purchasing, notes the progress made since the introduction of the first report on responsible raw materials management and thanked the Volkswagen Group’s suppliers for their cooperation: – On one hand, we are setting a good example: We have implemented special management systems to identify, assess, and mitigate human rights risks and ensure responsible raw material sourcing. On the other hand, we have high expectations of our business partners and suppliers regarding sustainability: a code of conduct for business partners, sustainability assessment, and a complaint and grievance mechanism. We can only overcome global challenges and succeed in the areas of environmental protection and human rights if we work together with all stakeholders and our business partners throughout the supply chain.
The Volkswagen Group’s report on responsible raw materials management can be found here: https://www.volkswagenag.com/presence/nachhaltigkeit/documents/supply-chain/Volkswagen-Group-Responsible-Raw-Materials-Report-2021.pdf