Volkswagen AG, commonly known as VW, is a German multinational automotive manufacturing company that specializes in the production of passenger vehicles. Founded in 1937, the company has grown to become one of the largest automakers in the world, with operations in over 150 countries.
As the world becomes increasingly focused on decarbonisation and reducing greenhouse gas emissions, VW has taken steps to ensure that it is at the forefront of this movement. The company has set itself the ambitious goal of becoming carbon-neutral by 2050, and it has already made significant progress towards this target.
One of the key ways in which VW is working towards decarbonisation is through its corporate energy strategy. The company has invested heavily in renewable energy sources, such as wind and solar power, to reduce its reliance on fossil fuels. In 2019, for example, VW signed a 10-year power purchase agreement (PPA) with the Norwegian energy company, Statkraft, to supply renewable energy to its factories in Germany.
Through this PPA, VW is able to source 100% of the electricity it uses in its German production sites from renewable sources. This is a significant achievement, as the automotive industry is one of the largest consumers of energy in the world, and reducing its reliance on fossil fuels is crucial for achieving decarbonisation goals.
In addition to its PPA with Statkraft, VW has also invested in its own renewable energy projects. The company has installed solar panels at its factories in Germany, Spain, and Mexico, and it has plans to expand this initiative to other locations in the future. By generating its own renewable energy, VW is able to reduce its carbon footprint and become more self-sufficient in terms of energy supply.
Another way in which VW is working towards decarbonisation is through its focus on electric vehicles (EVs). The company has made a significant investment in EV technology, and it has set itself the goal of selling one million EVs per year by 2025. To achieve this target, VW is developing a range of new EV models, including the ID.3 and ID.4, which are due to be launched in 2020 and 2021 respectively.
In addition to its focus on EVs, VW is also exploring other alternative fuel technologies, such as hydrogen fuel cells. The company has developed a prototype fuel cell vehicle, the Audi A7 h-tron, which is currently undergoing testing. While EVs are likely to be the dominant technology in the short to medium term, VW is keeping its options open and investing in a range of alternative fuel technologies to ensure that it is well-positioned for the future.
VW's commitment to decarbonisation is not just about reducing its own carbon footprint, however. The company is also working to reduce the carbon footprint of its supply chain. In 2019, VW launched its "goTOzero" sustainability initiative, which aims to make the entire VW Group supply chain carbon-neutral by 2050.
As part of this initiative, VW is working with its suppliers to encourage them to adopt more sustainable practices, such as using renewable energy and reducing waste. The company is also exploring new technologies, such as blockchain, to improve supply chain transparency and traceability.
In addition to its focus on decarbonisation, VW is also committed to corporate energy efficiency. The company has implemented a range of measures to reduce energy consumption in its factories, such as installing energy-efficient lighting and heating systems, and optimizing production processes to reduce waste.
VW's commitment to corporate energy efficiency is not just about reducing costs, however. The company recognizes that energy efficiency is also an important part of its sustainability strategy, as it helps to reduce its carbon footprint and improve its environmental performance.
Overall, VW's commitment to decarbonisation, renewable energy, and corporate energy efficiency is a key part of its sustainability strategy. The company recognizes that it has a responsibility to reduce its impact on the environment, and it is taking significant steps to achieve this goal. By investing in renewable energy, developing EVs and alternative fuel technologies, and working to reduce the carbon footprint of its supply chain, VW is positioning itself as a leader in the transition to a more sustainable future.