Decarbonization
The company has set itself the goal of reducing CO₂ emissions over the entire life cycle of an Audi vehicle by 40 percent by 2030 compared with the base year 2018. AUDI AG wants to achieve net carbon neutrality1 throughout the company by 2050. One focus is on the decarbonization of production and logistics: the company wants to realize its goal of net carbon neutrality1 at Audi production sites2 by as early as 2025. This goal includes CO₂ emissions generated directly at the site as well as indirect CO₂ emissions from energy purchased through external utilities.
The decarbonization index (DCI)3 is used to measure the progress made toward decarbonization for the individual Volkswagen Group brands and the Group as a whole. The DCI3 is therefore a strategic indicator on the path to net carbon neutrality.1 It quantifies the average emissions of CO₂ and CO₂ equivalents4 over the entire life cycle of the Audi passenger car portfolio and is stated in metric tons of CO₂ per vehicle. It includes both direct and indirect CO₂ emissions at individual production sites (Scope 15 and 26 in 2023: 0.23 million tCO2eq.) as well as all other direct and indirect CO₂ emissions over the life cycle of the vehicles (Scope 37 : 45.5 million tCO2eq.).
Decarbonization of the supply chain
Decarbonization of the supply chain
The supply chain will account for a substantial proportion of CO₂ emissions in the future due to the consistent electrification of the Audi vehicle portfolio. Whereas an average of about 20 percent of CO₂ emissions in the life cycle of an Audi model with combustion engine are attributable to production (assuming production in the EU), and roughly 80 percent to the utilization phase, this ratio changes with Audi BEV models (battery electric vehicles). In this case, an average of more than 50 percent of CO₂ emissions are attributable to production (assuming production in the EU) and less than half to the utilization phase (assuming the average electricity mix in the EU).
This is one reason why the carbon footprint has to be improved in the supply chain. The Audi CO₂ program was launched for this purpose in 2018. In cooperation with supplier companies, it identifies CO₂ mitigation measures and optimization potential throughout the entire production process for materials and components. Audi is addressing CO₂ hotspots to ensure an efficient approach to decarbonization of the supply chain. These hotspots are used to identify specific materials or components in the company that are expected to offer the greatest savings potential.
The biggest emissions driver in the supply chain for an electric vehicle is the high-voltage battery, followed by parts made of aluminum and steel. All of the components in these three areas together are generally responsible for more than half of the carbon footprint in the supply chain of an electric vehicle. Most CO₂ emissions are not attributable to direct suppliers, however, but occur in the upstream production processes. Reducing CO₂ emissions in the supply chain is thus an objective of new Audi vehicle projects. This is why Audi defines specific CO₂ requirements for its suppliers. For example, Audi requires its suppliers to use green electricity when producing high-voltage battery cells for the new Premium Platform Electric. In addition, the suppliers use CO₂-reduced aluminum for selected components, such as in the body area.
One possibility for reducing CO₂ emissions is to close material cycles. Audi has set itself the goal of using secondary materials wherever technically feasible, economically justifiable and ecologically sound. Recycling loops in in-house production also help to reduce net CO₂ emissions. An example of this is the Aluminum Closed Loop project, which was initiated in 2017. The aluminum sheet offcuts that are produced in the press shop are sent straight back to the suppliers. The suppliers recycle these into aluminum sheets of equal quality, which Audi then uses again in production. Compared with production of primary aluminum, the energy requirement is reduced by roughly 95 percent. In addition, the “Chain of Custody” certificate awarded by the Aluminium Stewardship Initiative for the Ingolstadt and Neckarsulm sites demonstrates the responsible handling of aluminum. In 2023 alone, the Aluminum Closed Loop process as well as other measures delivered net savings in the supply chain of more than 450,000 metric tons of CO₂. These measures include the use of CO₂-reduced materials and the use of green electricity in the production of high-voltage battery cells.
Decarbonization of production
The Mission:Zero environmental program combines all the company’s initiatives for reducing the ecological footprint in production and logistics. There are four action areas: water usage, biodiversity, resource efficiency and decarbonization.
The decarbonization action area aims to achieve net carbon-neutral1 production at all Audi production sites by 2025. This includes CO₂ emissions generated directly at the site (Scope 15), and indirect CO₂ emissions from energy purchased through external utilities (Scope 26). In the year under review, the company set an important course: production operations at the plant in Ingolstadt have been net carbon-neutral1 since January 1, 2024 – Brussels (Belgium, 2018), Győr (Hungary, 2020) and Böllinger Höfe (production site near Neckarsulm, 2020) have already achieved net carbon neutrality.1 The Neckarsulm and San José Chiapa (Mexico) plants are set to follow by 2025.
These are the four steps Audi is taking to achieve net carbon neutrality1 at its production sites:
- Increase energy efficiency
- Produce own renewable energy
- Purchase renewable energy
- Offset the currently unavoidable emissions through climate action projects
The goal is to improve energy efficiency year after year, to increase the proportion of green energy produced internally and to successively reduce the amount of external energy purchased so that ultimately fewer CO₂ emissions have to be offset through the purchase of certificates. The individual steps therefore complement each other mutually.
An energy management system certified under the worldwide ISO 50001 standard has been established at the production sites to increase energy efficiency. Audi has set itself an annual energy-saving target of at least two percent compared with the consumption values from the previous year.
Audi is successively increasing production of its own renewable energy at the production sites:
The photovoltaic surface at the Ingolstadt plant has grown to around 23,000 square meters in recent years. Roughly 41,000 square meters are currently under construction or at the planning stage.
The plant in Brussels currently produces around 13 percent of its own electricity consumption itself. Extending across an area of over 100,000 square meters, this is the largest photovoltaic plant in the region. It produces around 9,000 megawatt hours of electricity annually. Expansion of the plant by a further 17,000 square meters was commenced in 2023. In the future it should be able to generate up to 15 percent of the energy requirement itself.
The Audi plant in Hungary has a photovoltaic facility that covers an area of around 160,000 square meters. 36,000 solar cells deliver a peak output of 12 megawatts. The facility is being expanded in 2024. It is expected to supply an additional 18 megawatts of electricity from 2025. In addition, there is a geothermal plant. The production site is the largest user of industrial geothermal energy in Hungary and has covered more than 80 percent of its thermal energy requirement with geothermal energy since 2015. The system currently supplies at least 82,000 MWh of thermal energy to the site annually and even supplies the neighboring city of Győr via a district heating pipeline.
When purchasing energy, it is ensured that it comes from renewable energy sources. Since the start of 2012, for example, Audi has been exclusively purchasing electricity from renewable energy sources at its plant in Ingolstadt to produce its vehicles. Among other sources, this electricity is produced in hydroelectric power plants in Austria and Germany. However, conversion from natural gas to methane from biogas plants and the use of district heating also help to reduce CO₂ emissions in production.
Up to 10 percent of all CO₂ emissions are to be offset by external climate action projects. Some CO₂ emissions are still unavoidable, such as from test rigs on which the diesel and gasoline engines are tested. The company offsets these CO₂ emissions by purchasing carbon offset certificates from external climate action projects, which have to fulfill strict quality standards for climate protection.
Decarbonization of logistics
Decarbonization of logistics
Measures to reduce CO₂ emissions in logistics are likewise part of the Audi Mission:Zero environmental program. At the heart of the efforts: together with Volkswagen Group Logistics, Audi is following a long-term roadmap to organize transport to and from the plant in such a way that as little CO₂ as possible is emitted.
In terms of logistics, the goal is to continue to increase the proportion of rail transport. Since April 2024, Audi has been operating its first block train for the Ingolstadt, Neckarsulm and Győr sites in combination with upstream and downstream transportation by truck. The block train, which consists exclusively of Audi railcars, can be operated independently of previously required railway infrastructure such as terminals and rail stations. This project will allow Audi to reduce its CO₂ emissions by 11,500 metric tons annually compared with traditional road transport. In addition, in close collaboration with truck manufacturing companies, fuel producers and forwarding agents, Audi is deliberately focusing on biogenic fuels, such as bio-LNG and HVO100, as important bridging technology. These fuels generate up to 85 percent fewer CO₂ emissions compared with the use of diesel in road transport. In addition, use of the Battery Electric Truck (BET) will be piloted in inbound logistics (procurement and production logistics) from 2025.
Overseas transport represents the largest single lever for decarbonizing finished vehicle logistics. Step by step, Audi is increasingly focusing here on alternative drive systems such as ships that run on LNG (liquefied natural gas).
Decarbonization in the utilization phase
A significant proportion of the CO₂ emissions that a vehicle emits over its life is usually generated while driving. In light of the electrification of the portfolio of Audi vehicles, the electric models have the greatest potential in this regard: as an electric car, they can be operated with zero local CO₂ emissions while driving. And if they are also charged with green electricity, this improves the carbon footprint even more. Compared with the average electricity mix in the EU, around 50 percent of the CO₂ emissions could be eliminated over the life cycle if a vehicle is charged using green electricity only.
Audi is successively expanding its electric portfolio: by 2027, the company wants to include one all-electric vehicle in the portfolio in all core segments. Increased efficiency of fully electric vehicles goes hand in hand with updating the product portfolio. For example, vehicles based on the new Premium Platform Electric are up to 30 percent more efficient in terms of energy consumption than the Audi e-tron8 (first generation). This is due to the use of cutting-edge technologies and systematic optimization of the entire system, consisting of electric motor, transmission and power electronics.
Audi is additionally focusing on the charging current of its electric fleet as a key lever for reducing CO₂. Even today, for example, Audi customers can use green electricity offered by the Volkswagen subsidiary Elli (Electric Life) for charging at home. Meanwhile, the charging network operated by IONITY supplies green electricity for charging on the road. The joint venture, of which the Volkswagen Group is a member with the Porsche and Audi brands, is planning to install more than 5,000 additional fast-charging points with a charging capacity of up to 350 kW at over 1,000 locations in Europe by 2025. In addition, Audi offers customers a service for charging at public charging terminals with Audi charging9. Audi drivers therefore have access to around 600,000 charging points in 29 countries in Europe.
Audi is supporting the expansion of renewable energies. To increase the proportion of green electricity used for charging, the brand with the Four Rings is cooperating with VW Kraftwerk GmbH and a number of energy suppliers. By 2025, new wind farms and solar parks are to be built in various European countries that will collectively generate around five terawatt hours of additional green electricity. The first German project for expanding the supply of green electricity is a solar park in Mecklenburg-Vorpommern. It was developed in collaboration with the German utility company RWE. The plant came on stream in 2022 and is designed for a total capacity of 170 million kilowatt hours. The sun generates as much electricity here a year as is needed to power 50,000 households annually. Encompassing nearly 420,000 solar panels over an area the size of almost 350 soccer fields, it is one of the largest independent solar parks in Germany. In addition, three solar parks and one wind farm were commissioned in Spain as early as 2021. Further projects throughout Europe are in the starting blocks. They are to be located primarily in areas where the charging demand is especially high.
Audi is also pushing for a reduction in CO₂ emissions in retail together with the Volkswagen Group. In 2021, the goTOzero RETAIL project was initiated by a number of brands in the Volkswagen Group. The aim: to reduce the carbon footprint of the Volkswagen Group’s entire dealer network by at least 30 percent by 2030, by at least 55 percent by 2040 and by at least 75 percent by 2050 – starting from the baseline value in 2020. Read more about this here.
Decarbonization in the end of life: circular economy and second life
AUDI AG is also optimizing the last phase of the life cycle of a vehicle by returning materials to the value chain following the utilization phase of the vehicles. This should allow key resource cycles to be closed gradually. Read more about this here.
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