Sustainability is also becoming increasingly important for automotive customers. Porsche aims to take social responsibility that can transcend its obligations to the customers. The sustainability strategy is based on six strategic pillars: “Decarbonization”, “Circular Economy”, “Diversity”, “Partner to Society”, “Supply Chain Responsibility” and “Governance and Transparency”. Within these six strategic pillars, Porsche strives to advance its societal responsibilities, which Porsche believes will drive sustainable and value-creating growth while further reducing negative environmental impact and continuously monitoring progress in this regard.
1. How is sustainability anchored organisationally at Porsche?
The Executive Board determines the strategic direction and specific sustainability targets, with the Porsche Sustainability Council, an independent group of external specialists, providing advice and guidance. The Sustainability department is responsible for the development and execution of the sustainability strategy including sustainability projects and the organisation of company-wide committees of Porsche AG.
The Politics and Society department manages sustainability communications and stakeholder dialogue, stakeholder management as well as the Sustainability Council. Various committees and teams set sustainability priorities and focus areas, consolidate sustainability measures across Porsche and develop and implement concrete sustainability measures and programs, among other responsibilities.
2. How is Porsche driving forward the electrification of its vehicle portfolio?
As part of the electrification of the product portfolio, Porsche aims for more than 80% of new vehicles delivered to be fully electrified in 2030 – depending on the demand of customers and the development of electromobility in the respective regions of the world. All future new all-electric models are aimed to be net carbon neutral across the entire value chain from launch.
3. What are the biggest levers for decarbonization at Porsche?
The core elements of its ambition towards a net carbon neutral value chain of the newly produced vehicles in 2030 call for Porsche to continue to (i) pursue portfolio electrification, (ii) green elec-tricity for the use-phase of the battery electric vehicles fleet (BEV), (iii) a "zero-impact" factory vision, (iv) responsible supply chain practices with emphasis on criteria such as reliance on green electricity, circular materials and processes, and (v) an offsetting strategy for remaining carbon emissions.
4. What role does the offsetting of carbon emissions play in achieving the goal of net carbon neutrality in 2030?
The Porsche strategy towards a net carbon neutral value chain of newly produced vehicles in 2030 includes offsets (carbon reduction and carbon removal), which will also be used to offset other emissions, such as fuel and tailpipe emissions for cars with an internal combustion engine (ICE) and plug-in hybrid vehicles (PHEVs) that are continued to be sold as well as emissions from employee travel and offices, among others. Porsche aspires to reduce its reliance on such offsets over time. As a result of rising reduction measures, offsets will continue to decrease.
5. Have you so far achieved all the necessary intermediate steps on the way to net-zero carbon neutrality in full and on time?
Porsche is continuing to work towards a net zero carbon neutral value chain for newly produced vehicles in 2030. The decarbonization index with targets at an annual level helps to monitor and manage the progress. Targets set for the past financial year have been reached. One important step of decarbonization is the electrification of the product portfolio. One important milestone was reached with the launches of the Taycan and Macan BEV.
6. What importance does diversity have at Porsche?
Porsche values to promote a corporate culture in which everyone is welcome and can contribute their skills to the best of their ability. To this end, for example, Porsche would like to further increase the mixed composition of teams throughout the organisation with the aim of bringing different perspectives together.
The company aspires to significantly increase the proportion of women in management positions by 2025: At company level, the proportion of women in the first and second management levels below the Management Board is to be increased to 20% and 18% respectively. At the end of 2023, the proportion of women at Porsche was 20.0% in the first management level (2022: 16.1%) and 17.3% in the second management level (2022: 15.7%). Porsche strives to continuously increase the proportion of women at all management levels in the long term.
7. How important is social responsibility to Porsche?
Porsche sees itself as a partner to society by supporting and empowering people who are confronted with difficult circumstances in different ways. In doing so, Porsche wants to create added value for people and the environment on an international scale. One of the local initiatives “Porsche hilft” (Porsche Helps) serves as a digital placement platform and lists organisations and associations in need of support from volunteers which shall be expanded. The platform aims to connect Porsche employees and retirees with these organisations.
8. As electrification increases, so does the demand for lithium for high-voltage batteries. How is Porsche committed to environmentally and socially responsible mining of the raw material?
Porsche has been involved in the "National Action Plan for the Implementation of the UN Guiding Principles on Business and Human Rights" (NAP) Automotive Sector Dialogue since 2020. One of the results of the sector dialogue was a baseline study on human rights risks in lithium production, based on an analysis of major lithium-producing countries. Based on this work, the Automotive Sector Dialogue developed recommendations for responsible practices at the mining and downstream company level. Porsche was part of the creation and publication of these findings.
In 2020, the Volkswagen Group initiated the "Responsible Lithium Partnership in Chile" together with several industry partners. Through this initiative, the Volkswagen Group was able to promote dialogue and gather input on the challenges faced by the local stakeholders concerned. In cooperation with various professional partners, Porsche also wants to improve its existing recycling processes to increase the proportion of raw materials in the cycle and reuse these materials in new batteries.
9. How does Porsche deal with high-voltage batteries when they can no longer be used in the vehicle?
Porsche's aim is to maintain the use of high-voltage batteries for as long as possible. Valuable raw materials remain in use for longer. This improves their CO2 balance. The ultimate goal is to ensure that the high-voltage battery can be used for the entire lifecycle of the vehicle without any complaints. Should a defect nevertheless occur, the 1:1 repair of the high-voltage battery by replacing the defective component (such as a battery module) is the most sustainable solution.
Porsche is also pursuing other options for the long-term use of battery resources. In the future, in addition to repair, Porsche will also be focusing on the reuse of cell modules - as a resource- saving option for long-term use in the vehicle. The reconditioning of spare parts is an established standard in the automotive industry (e.g. gearboxes, engines, etc.) and will also play an important role in relation to high-voltage batteries in the future.
This ensures cost efficiency on the customer side and conserves valuable resources that are used in the production of new batteries. Cell modules that are no longer suitable to vehicles can be used for 2nd life applications, such as industrial or home storage systems.
The cells and modules are only sent for recycling once all possible uses have been exhausted. Great importance continues to be attached to ensuring that the raw materials of the high-voltage battery are almost completely reintroduced into the battery production cycle.
10. How do you ensure sustainability criteria in your leather supply chain?
Porsche supports the efforts of direct suppliers to achieve greater transparency and traceability in their supply chains. At the Volkswagen Group, there are also material-specific specifications for leather, which is mandatory for all contracts newly awarded to direct leather suppliers. This requires disclosure of the country of origin and a sustainability certificate which is specific to leather. The non-profit organisation drives best practices and positive social and environmental change for responsible leather.
