Audi AG, founded in 1909 and headquartered in Ingolstadt, Bavaria, is a premium automobile manufacturer and a wholly owned subsidiary of the Volkswagen Group, operating across production sites in Germany, Hungary, Mexico, China, and Belgium. Audi published its Combined Annual and Sustainability Report 2024 on March 18, 2025, reporting against the Corporate Sustainability Reporting Directive (CSRD), the Global Reporting Initiative (GRI) Standards, the UN Global Compact, and the Science Based Targets initiative (SBTi). The company achieved its most significant sustainability milestone to date on January 1, 2025, when all Audi production sites worldwide reached net carbon-neutral operations under Mission:Zero, the company’s cross-site environmental program covering decarbonization, water stewardship, resource efficiency, and biodiversity.
Source
https://www.audi.com/en/sustainability/
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://www.volkswagen-group.com/en/publications/more/audi-ag-annual-and-sustainability-report-2024-2950
https://esgnews.com/audi-tops-esg-ratings-among-car-manufacturers-with-industry-leading-score-from-iss-esg/
Sustainability Strategy and Goals
Audi’s sustainability strategy is organized under Mission:Zero, its cross-site environmental program, and the Act4Impact framework, which extends sustainability commitments across the supply chain and into society. The strategy aligns with the UN SDGs, particularly SDG 6 (Clean Water), SDG 7 (Affordable and Clean Energy), SDG 12 (Responsible Consumption), SDG 13 (Climate Action), and SDG 15 (Life on Land), and is verified against SBTi, GRI, CSRD, and Alliance for Water Stewardship (AWS) standards. Audi’s overarching net carbon neutrality target covers the entire value chain by 2050, with production net carbon neutrality achieved in 2025 as the confirmed first milestone.
Net Zero and Carbon Emissions
All Audi production sites worldwide have operated under net carbon-neutral conditions since January 1, 2025, covering Scope 1 (direct on-site emissions) and Scope 2 (indirect emissions from purchased energy). The site progression began with Brussels in 2018, Győr (Hungary) and Böllinger Höfe in 2020, Ingolstadt in January 2024, and was completed with Neckarsulm and San José Chiapa (Mexico) in January 2025. Net carbon neutrality across the entire value chain, including Scope 3, is targeted by 2050.
- All Audi production sites: net carbon-neutral since January 1, 2025 (Scope 1 and 2)
- Brussels: net carbon-neutral from 2018; Győr and Böllinger Höfe: from 2020
- Ingolstadt: net carbon-neutral from January 1, 2024
- Neckarsulm and San José Chiapa: net carbon-neutral from January 1, 2025
- Whole value chain (Scope 3) net carbon neutrality target: 2050
- Vehicle lifecycle CO2 target: 30% reduction in vehicle-specific CO2 by 2025 vs 2015 baseline
- Audi of America: 30% net carbon footprint reduction by 2025 vs 2019 baseline
- ISS ESG rating: B– in 2024, highest in the global automotive industry
Water Stewardship
Audi became the first premium automobile manufacturer to join the Alliance for Water Stewardship (AWS) in January 2023, committing to water stewardship throughout the full value chain including supplier operations in high water stress regions. The San José Chiapa plant in Mexico is pursuing AWS Standard certification as the first Audi site subject to the International Water Stewardship Standard, given its location in a water-stressed region. Audi Brussels, in partnership with Belgian company Hydria, invested in the Re-Use project to integrate the Brussels South Wastewater Treatment Plant into its production water supply, creating a closed water cycle that saves approximately 100,000 cubic meters of drinking water per year.
- AWS membership: first premium carmaker to join, January 2023
- AWS Standard certification: targeted at San José Chiapa plant (Mexico)
- Brussels Re-Use project: closed water cycle saving approximately 100,000 m3 of drinking water per year
- Mission:Zero water pillar: water stewardship is one of four dedicated action areas alongside decarbonization, resource efficiency, and biodiversity
- Supply chain water risk: active supplier engagement in battery material, metal, and glazing supply chains in high-stress regions
Regenerative Agriculture
Audi’s industrial manufacturing value chain does not include direct agricultural inputs, and the company does not publish a formal regenerative agriculture program. Its closest parallel is the Aluminium Stewardship Initiative (ASI) membership held since 2013, which governs bauxite mining practices, requires respect for human rights of indigenous communities near mining sites, and applies Chain of Custody standards across the aluminum value chain. The ASI standard requires mine operators to demonstrate that land used for bauxite extraction is restored and that impacts on surrounding land use are documented and mitigated.
- ASI membership: active since 2013; Chain of Custody standard applied to aluminum supply chain
- ASI structure: includes representatives of indigenous peoples living near bauxite mines
- Dedicated regenerative agriculture program: not applicable to Audi’s manufacturing value chain
Deforestation and Biodiversity
Mission:Zero designates biodiversity as one of four dedicated action areas, and Audi implements biodiversity protection projects at all production sites, including wildflower meadows, wild bee colonies, and reforestation programs. Audi is a member of the “Biodiversity in Good Company” initiative and activated biodiversity programs at all sites in 2023. The company’s Ingolstadt environmental declaration tracks seven quantifiable environmental aspects including water consumption, waste, and land-use metrics at the site level.
- Mission:Zero biodiversity pillar: one of four core action areas, active at all production sites
- “Biodiversity in Good Company” initiative: member; wildflower meadows, wild bee colonies, reforestation active at all sites
- Ingolstadt environmental declaration: tracks seven environmental aspects including land use and water at site level
- Supply chain biodiversity: Act4Impact framework includes biodiversity risk identification across raw material supply chains
Packaging and Circular Economy
In April 2025, Audi became the first carmaker to establish a digital material account for post-consumer secondary materials, in partnership with TSR Resource GmbH, enabling recovered steel and other materials from end-of-life vehicles to be credited back to the supply chain for use in new production. In the first phase beginning 2025, thousands of preproduction vehicles are being shredded and processed by TSR Resource into high-quality recycled raw materials, which are credited to the digital material account and made available to suppliers through a tendering process. Audi’s broader circular economy strategy is built around its “Rethink, Reduce, Recycle” principle and the 360factory concept, which integrates circular production into site-level operations.
- Digital material account (April 2025): industry-first system with TSR Resource for post-consumer secondary materials; Audi is the first carmaker to implement this model
- First-phase scope: thousands of preproduction vehicles recycled; high-quality secondary steel credited to supplier tendering
- MaterialLoop program (since 2023): testing approaches for secondary material reuse in production
- 360factory concept: integrates circular economy into site-level production strategy
- Audi’s Aluminium Stewardship Initiative (ASI) Chain of Custody: traces aluminum from mine to vehicle
Human Rights and Responsible Sourcing
Audi works with more than 14,000 suppliers across 60+ countries and has applied sustainability ratings and audits to suppliers since 2018, using an S-Rating system that can result in disqualification for non-compliant suppliers. Germany’s Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz), effective since 2023, formalizes legal requirements that Audi had already been applying voluntarily, including environmental and human rights due diligence. Full supply chain disclosure down to the mine is required as part of all new Volkswagen Group contracts relating to battery raw materials since 2020, and Audi is a participant in the VW Group’s Global Battery Alliance and Initiative for Responsible Mining Assurance (IRMA) programs.
- Supplier base: 14,000+ across 60+ countries
- S-Rating system: mandatory sustainability assessment for all relevant suppliers since 2018; disqualification for non-compliance
- Germany Supply Chain Due Diligence Act (2023): Audi compliance formalized; AI-assisted monitoring of supplier warning signs active
- Battery raw material supply chain disclosure: full chain-to-mine disclosure required in all new VW Group battery contracts since 2020
- VW Group IRMA membership (2022): Initiative for Responsible Mining Assurance
- ASI membership: aluminum supply chain human rights aligned since 2013
Nutrition and Health
Audi’s product portfolio is confined to premium automobiles and does not intersect with nutrition or food systems. Its health contribution is tied to air quality improvement through zero-tailpipe-emission BEV production and plug-in hybrid engineering targeting below 50g CO2/km by 2025. The company’s employee health and safety programs are tracked annually in its sustainability report, with workplace accident rates published as a core social KPI.
- Audi BEV fleet: 0g CO2/km tailpipe emissions at point of use; reducing urban NOx and particulate matter
- PHEV target: below 50g CO2/km by 2025
- Trust and Like Score: 74 (external stakeholder perception KPI, 2024 Sustainability Report)
- Dedicated nutrition strategy: not applicable
Community and Social Impact
Audi has contributed to regional development in Bavaria through its Ingolstadt headquarters and in Hungary through Audi Hungaria in Győr, both of which are among the largest employers in their respective regions. The Act4Impact playbook, formalized in 2025, provides a structured framework for Audi’s social and community commitments across all geographies, integrating supplier communities, local ecosystems, and employee welfare into a single governance document. Audi employees completed approximately 764,730 hours of training and development across all sites in 2025, as disclosed on the company’s sustainability portal.
- Employee training and development hours in 2025: approximately 764,730
- Act4Impact playbook (2025): formalizes community, supplier, and employee social commitments
- Audi Hungaria and Ingolstadt: among the largest employers in their respective regions
- Audi community programs: active at all production sites, integrated into Mission:Zero site governance
Governance and Transparency
Audi reports under CSRD, GRI Standards, SBTi, the UN Global Compact, and AWS, making it one of the most multi-framework-aligned premium carmakers in Europe. The company achieved the highest ISS ESG industry rating in the global automotive sector (B–) in 2024, reflecting year-on-year improvement and positioning Audi above BMW and Mercedes-Benz in third-party ESG credentialing. Audi’s Combined Annual and Sustainability Report 2024, published March 18, 2025, integrates financial and sustainability disclosure into a single document, in full compliance with European CSRD requirements.
- CSRD, GRI, SBTi, UNGC, AWS: all active reporting frameworks
- ISS ESG rating 2024: B–, highest in the global automotive industry
- Combined Annual and Sustainability Report 2024: published March 18, 2025
- Sustainability governance: board-level oversight; human rights strategy formally implemented
Technology and Innovation
Audi’s four-pillar net carbon-neutral production model at Ingolstadt combines energy efficiency improvements, onsite renewable energy generation, renewable electricity procurement, and carbon-neutral heat supply through waste heat from a neighboring refinery and municipal waste recycling plant and biogas. Photovoltaic modules cover 23,000 square meters at Ingolstadt, with an additional 41,000 square meters under construction or in planning as of January 2024. Audi is also developing the 360factory concept as its production evolution model, integrating circular material flows, energy-efficient manufacturing, and digital lifecycle tracking across its global site network.
- Ingolstadt renewable electricity: exclusively on green electricity since 2012
- Ingolstadt PV modules: 23,000 m2 installed; 41,000 m2 under construction or in planning
- Waste heat supply: neighboring refinery and municipal waste recycling plant supply net carbon-neutral thermal energy at Ingolstadt
- Mission:Zero energy efficiency program: 35,000 MWh saved and 5,000 tonnes CO2 prevented at Ingolstadt in 2022 alone
- 360factory concept: integrates circular economy, decarbonization, and digital lifecycle tracking at production sites
- Digital material account: industry-first system with TSR Resource for post-consumer secondary material tracking and procurement
Global Partnerships and Advocacy
Audi participates in the VW Group’s Global Battery Alliance (GBA) Battery Passport program, the Initiative for Responsible Mining Assurance (IRMA), the Aluminium Stewardship Initiative (ASI), and the Alliance for Water Stewardship (AWS), connecting its operational commitments to multilateral standards across the battery, metals, and water domains. The company is a member of “Biodiversity in Good Company” for natural ecosystem protection and aligns with the UN Global Compact’s Ten Principles on human rights, labor, environment, and anti-corruption. Audi is also subject to Germany’s Supply Chain Due Diligence Act (effective 2023), which aligns its legal compliance baseline with its voluntarily applied sustainability standards.
- VW Group Global Battery Alliance (GBA): Battery Passport program participant
- IRMA membership (joined 2022): responsible mining assurance
- ASI membership (since 2013): aluminum supply chain stewardship
- AWS membership (since 2023): first premium carmaker to join
- “Biodiversity in Good Company” initiative: active member
- UN Global Compact: Ten Principles alignment confirmed
Source
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://www.audi.com/en/sustainability/environment-resources/decarbonization/
https://www.audi-mediacenter.com/en/missionzero-14679
https://www.audi-mediacenter.com/en/press-releases/audi-ingolstadt-net-carbon-neutral-production-since-january-2024-15605
https://www.audi-mediacenter.com/en/press-releases/sustainable-water-managementaudi-joins-the-alliance-for-water-stewardship-1513
https://www.audi.com/en/sustainability/environment-resources/circular-economy/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi.com/en/sustainablility/people-society/responsibility-in-the-supply-chain/sustainability-supply-chain.html
https://www.audi-mediacenter.com/en/supply-chain-14680
https://esgnews.com/audi-tops-esg-ratings-among-car-manufacturers-with-industry-leading-score-from-iss-esg/
https://www.scribd.com/document/962117128/Reflective-Essay-Env-Analytics-Approach-in-Auto-Industry
https://audiclubna.org/volkswagen-group-publishes-third-responsible-raw-materials-report/
https://www.audi.com/en/sustainability/sustainability-concept/sustainability-reports/report-2024/
https://www.audi-mediacenter.com/en/publications/corporate/combined-annual-and-sustainability-report-2024-1608
Progress vs. Target Tracker
Source
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://www.audi.com/en/sustainability/environment-resources/decarbonization/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi-mediacenter.com/en/supply-chain-14680
https://www.volkswagen-group.com/en/publications/more/audi-ag-annual-and-sustainability-report-2024-2950
Key Sustainability Innovations and Technologies
Audi’s sustainability innovation architecture is built on four interlocking programs: Mission:Zero for production decarbonization, Act4Impact for supply chain and social sustainability, the AWS partnership for water stewardship, and the 360factory concept for circular production integration. These programs operate simultaneously and are reported under CSRD and GRI, making Audi’s innovation narrative one of the most comprehensively governed in the European premium automotive sector.
- Mission:Zero four-pillar production decarbonization: energy efficiency (35,000 MWh saved and 5,000 tonnes CO2 prevented at Ingolstadt in 2022); onsite renewable generation (23,000 m2 PV installed, 41,000 m2 planned at Ingolstadt); renewable electricity procurement (green electricity at Ingolstadt since 2012); and carbon-neutral thermal energy via waste heat from a refinery, municipal waste plant, and biogas
- Digital material account (April 2025): industry-first circular economy system with TSR Resource; preproduction vehicles shredded and processed into high-quality secondary steel; recovered materials credited to supplier accounts through a formal tendering process; first application of post-consumer material integration at scale by an automaker
- Alliance for Water Stewardship integration: first premium carmaker to join AWS (January 2023); San José Chiapa pursuing AWS Standard certification; Brussels Re-Use closed water cycle saves 100,000 m3 of drinking water per year; supply chain water risk management in battery, metal, and glazing supply chains in high-stress regions
- AI-assisted supply chain monitoring: Audi deploys artificial intelligence to identify early warning signs that suppliers may be breaching sustainability standards, operating across 14,000+ suppliers in 60+ countries
- 360factory concept: a site-level integration of circular production, energy decarbonization, and digital lifecycle tracking that is being rolled out across Audi’s global production network; the concept provides the operational framework for achieving Scope 3 emissions reduction targets at the factory level
Source
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://en.remondis-aktuell.de/messages/audi-and-tsr-drive-forward-the-circular-economy-in-the-automotive-industry/
https://www.audi-mediacenter.com/en/press-releases/sustainable-water-managementaudi-joins-the-alliance-for-water-stewardship-1513
https://www.audi-mediacenter.com/en/overview-production-and-supply-chain-14698
https://www.audi-mediacenter.com/en/missionzero-14679
Measurable Impacts
Audi’s 2024 Combined Annual and Sustainability Report, published March 18, 2025, and supplementary disclosures through early 2026 provide the definitive picture of the company’s environmental performance trajectory.
- All Audi production sites: net carbon-neutral from January 1, 2025 (Scope 1 and 2)
- Ingolstadt 2022 energy efficiency program: 35,000 MWh saved; 5,000 tonnes CO2 prevented
- Ingolstadt photovoltaic capacity: 23,000 m2 installed; 41,000 m2 under construction or in planning
- Ingolstadt green electricity: exclusively procured since 2012
- Brussels Re-Use closed water cycle: approximately 100,000 m3 of drinking water saved per year
- ISS ESG rating: B–, highest in the global automotive industry (2024)
- Trust and Like Score: 74 (external stakeholder ESG perception KPI, 2024 report)
- Employee training and development hours in 2025: approximately 764,730
- Digital material account: launched April 2025 with TSR Resource; preproduction vehicle recycling phase active
- Audi Q5 e-tron deliveries 2024: up 15.3% year on year
- Audi Q8 e-tron deliveries 2024: up 16.2% year on year
- Audi Q6 e-tron deliveries 2024: increased by more than 10,000 units year on year
- BEV tailpipe emissions: 0g CO2/km for all battery electric models
- Audi A6 Sportback e-tron: up to 776 km range in its segment
Source
https://www.audi.com/en/sustainability/
https://www.volkswagen-group.com/en/publications/more/audi-ag-annual-and-sustainability-report-2024-2950
https://www.audi.com/en/sustainability/environment-resources/decarbonization/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://esgnews.com/audi-tops-esg-ratings-among-car-manufacturers-with-industry-leading-score-from-iss-esg/
https://www.audi-mediacenter.com/en/press-releases/audi-ingolstadt-net-carbon-neutral-production-since-january-2024-15605
Challenges and Areas for Improvement
Audi’s most significant sustainability gap is the absence of published, SBTi-validated Scope 3 interim reduction targets. While the company aligns with SBTi and targets whole value chain carbon neutrality by 2050, no time-bound interim targets for Scope 3 emissions have been published in the 2024 Combined Annual and Sustainability Report. This matters because the VW Group’s analysis indicates that production emissions represent a shrinking share of lifecycle footprint as the fleet electrifies, making Scope 3 supply chain and use-phase emissions the dominant decarbonization challenge for the 2025 to 2040 period.
- SBTi-validated Scope 3 interim targets: not published as of the 2024 Combined Annual and Sustainability Report
- BEV sales scale: the Forbes IPCC analysis notes that even at 3.5 million BEV production by 2030, Audi’s emissions reduction pathway may not align with the 1.5°C IPCC scenario without sharper Scope 3 action
- Net carbon-neutral production achieved partly through offsets: Audi’s “net carbon-neutral” designation for production sites includes certified carbon offset projects as a component, not exclusively emission elimination; the degree of residual offset dependency is not explicitly broken out in public disclosures
- Digital material account: first phase limited to preproduction vehicles and high-quality steel only; extension to full production vehicle flows and all material types is planned but has no published timeline
- Water consumption data by site: the Ingolstadt Environmental Declaration tracks water at the site level, but no group-wide water consumption reduction target has been published
- Scope 3 supply chain emissions from battery manufacturing: while VW Group demands full chain-to-mine disclosure in battery contracts since 2020, Audi has not published a specific carbon intensity target for battery cell procurement
Source
https://www.audi.com/en/sustainability/sustainability-concept/sustainability-reports/report-2024/
https://www.audi.com/en/sustainability/environment-resources/decarbonization/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi-mediacenter.com/en/supply-chain-14680
Future Plans and Long-Term Goals
Audi’s published long-term commitments extend through 2025, 2030, and 2050, with Mission:Zero providing the operational scaffold and Act4Impact extending the framework through the supply chain and into society.
- Whole value chain net carbon neutrality: 2050
- 30% vehicle-specific lifecycle CO2 reduction: 2025 vs 2015 baseline
- PHEV fleet below 50g CO2/km: 2025 target
- Audi of America: 30% net carbon footprint reduction by 2025 vs 2019 baseline
- Digital material account expansion: extend from preproduction vehicle steel to full production vehicle flows and all recyclate material types
- 360factory rollout: extend circular production model across all global production sites
- AWS Standard certification: achieve International Water Stewardship Standard at San José Chiapa
- Photovoltaic expansion at Ingolstadt: commission 41,000 m2 additional PV modules under construction or planning
- SBTi Scope 3 validated targets: publish formal interim Scope 3 reduction targets aligned with the 1.5°C pathway
- Battery supply chain carbon intensity target: develop and publish specific targets for CO2 content of procured battery cells through VW Group PowerCo SE partnerships
Relative to BMW and Mercedes-Benz, Audi leads on ISS ESG rating (B– vs peers) and production net carbon neutrality milestone (2025 target achieved), but Mercedes-Benz achieved net carbon-neutral production across its plants already from 2022. BMW Group reported 51.5% total renewable energy consumption in 2024 and 3,009,278 MWh of renewable energy consumed, providing a benchmark for Audi’s renewable energy progress that has not been separately disclosed in Audi’s 2024 report.
Source
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://www.audi-mediacenter.com/en/missionzero-14679
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi-mediacenter.com/en/supply-chain-14680
https://www.scribd.com/document/962117128/Reflective-Essay-Env-Analytics-Approach-in-Auto-Industry
Comparisons to Industry Competitors
Audi is compared below against BMW Group and Mercedes-Benz Group, the two directly comparable European premium carmakers with published and verifiable 2024 ESG data.
Mercedes-Benz leads on Scope 3 disclosure depth, with 128.9 million tCO2e reported across 12 GHG Protocol categories in 2024 and a supply chain net zero target of 2039, which is more specific and nearer-term than Audi’s 2050 whole-value-chain ambition. BMW leads on renewable energy coverage with 51.5% of total energy in 2024, outpacing Audi whose group-wide renewable energy percentage was not separately disclosed in its 2024 combined report. Audi leads both peers on ISS ESG industry ranking (B–), confirming the strongest overall ESG governance score among the three German premium carmakers.
Source
https://www.bmwgroup.com/content/dam/grpw/websites/bmwgroup_com/ir/downloads/en/2025/bericht/ESG_Overview_FY-2024.pdf
https://group.mercedes-benz.com/dokumente/investoren/berichte/geschaeftsberichte/mercedes-benz/mercedes-benz-ir-climate-policy-report-2024.pdf
https://tracenable.com/company/mercedes-benz-group/ghg-emissions
https://esgnews.com/audi-tops-esg-ratings-among-car-manufacturers-with-industry-leading-score-from-iss-esg/
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
What to Watch: 12 to 18 Month Indicators
Three signals will most clearly indicate whether Audi AG’s sustainability standing shifts materially over the next 12 to 18 months.
First: Publication of SBTi-validated Scope 3 interim reduction targets. Audi confirmed SBTi alignment in its 2024 Combined Annual and Sustainability Report and targets whole-value-chain carbon neutrality by 2050, but formal Scope 3 interim targets have not been published. The 2025 Combined Annual and Sustainability Report, expected March 2026, is the natural disclosure point. Any validated Scope 3 interim target covering purchased goods, battery supply chain, or use-phase emissions would materially close the gap between Audi’s production-level achievement (net carbon-neutral from 2025) and its value-chain ambition. The absence of an interim target in the 2025 report would signal that Audi’s Scope 3 strategy remains at the framework stage rather than the execution stage, and would increasingly contrast with Mercedes-Benz’s published 2039 supply chain net zero commitment and BMW’s lifecycle targets.
Second: Digital material account scale-up beyond preproduction vehicles. The April 2025 launch with TSR Resource covers preproduction vehicles and high-quality secondary steel in its first phase, with Audi planning to extend to full production vehicle flows and all material types. The 12 to 18 months through late 2026 will determine how many additional material streams are brought into the digital material account and whether the recycled content percentage in production vehicles increases as a result. Any published recycled content percentage per vehicle or total secondary material volume procured through the system would establish Audi as the European circular economy leader in premium automotive, a position it has claimed architecturally but not yet demonstrated at production scale.
Third: AWS Standard certification completion at San José Chiapa. Audi’s Mexico production site in San José Chiapa has been pursuing the International Water Stewardship Standard certification since AWS membership was established in January 2023. The 12 to 18 month window is the expected completion period. Certification would make Audi the first premium carmaker to hold AWS Standard certification at any production site globally, validating its claim to water stewardship leadership. Failure to complete certification within this window would raise questions about the pace of execution on the AWS commitment and the complexity of achieving water stewardship standards in a high-stress manufacturing region.
Source
https://www.audi.com/en/sustainability/sustainability-concept/sustainability-reports/report-2024/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi-mediacenter.com/en/press-releases/sustainable-water-managementaudi-joins-the-alliance-for-water-stewardship-1513
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
Audi AG enters 2025 and 2026 having delivered on its most publicly visible commitment: net carbon-neutral production across all global sites from January 1, 2025, a goal that was set before most European carmakers had formally defined their production emissions strategies. The ISS ESG B– rating, the AWS membership as the first premium carmaker, the digital material account as an industry-first circular economy model, and CSRD-compliant reporting under GRI, SBTi, and UNGC frameworks confirm that Audi’s governance infrastructure is the most comprehensively aligned in the European premium automotive sector.
The core challenge is translating production-level achievement into supply chain-level accountability. Net carbon-neutral production covers Scope 1 and 2, but the dominant emissions category for any automaker is Scope 3, representing upstream raw material extraction, battery manufacturing, and the use phase of the vehicle fleet. Audi’s 2050 whole-value-chain target and its Act4Impact, ASI, GBA, and IRMA partnerships are the right instruments, but the absence of published, time-bound Scope 3 interim targets means that ambition and execution cannot yet be independently tracked.
The three strategic takeaways for practitioners benchmarking or replicating this approach are:
- Sequenced production decarbonization is a credible template: Audi’s site-by-site progression from Brussels (2018) to Győr (2020) to Ingolstadt (2024) to Neckarsulm and San José Chiapa (2025) demonstrates that production net carbon neutrality can be achieved through a multi-year, four-pillar program combining efficiency, onsite generation, renewable procurement, and carbon-neutral heat. Any manufacturer with multiple sites can apply this sequenced approach, starting with the lowest-cost or most renewable-energy-accessible locations.
- The digital material account is the most replicable circular economy model in automotive: Audi’s partnership with TSR Resource to create a post-consumer secondary material account, with recovered materials credited back to supplier tendering, is the first functioning example of a car-to-car circular economy model for steel at production scale. The architectural innovation is the digital accounting system, not the physical recycling, which means it is replicable by any OEM with a recycling partner and a supplier management infrastructure.
- ISS ESG leadership does not substitute for Scope 3 target publication: Audi holds the highest ISS ESG rating in the global automotive industry but has not published SBTi-validated Scope 3 interim targets. For ESG-focused institutional investors and procurement managers applying CSRD-aligned due diligence, a high rating without interim Scope 3 targets creates an accountability gap that will become more difficult to defend as the CSRD reporting supply chain and EU Due Diligence Directive enforcement frameworks mature through 2026 and 2027.
Source
https://www.audi.com/en/sustainability/environment-resources/mission-zero/
https://esgnews.com/audi-tops-esg-ratings-among-car-manufacturers-with-industry-leading-score-from-iss-esg/
https://www.audi-mediacenter.com/en/press-releases/circular-economy-audi-secures-strategic-and-cost-efficient-supply-of-recycled-raw-materials
https://www.audi-mediacenter.com/en/supply-chain-14680
https://www.volkswagen-group.com/en/publications/more/audi-ag-annual-and-sustainability-report-2024-2950
