GRI-Index for the Audi Report 2022

• See Audi Report 2022 page 4

The information in the Audi Report generally refers to the Audi Group. The material fully consolidated companies are detailed in the Audi Fact Pack. If there are deviations in the figures or requirements, this is indicated in the Audi Report.

• See Audi Report 2022 page 2, 155
  

There were no restatements of information in the year under review.

• See Audi Report 2022 page 123, 136

• See Audi Report 2022 page 4, 93 ff.
  

• See Audi Report 2022 page 123

Workers who are not employees only play a subordinate role at Audi. Key figures relating to workers who are not employees are therefore not relevant for control purposes and are not available.

• The Annual General Meeting, the Supervisory Board and the Board of Management make up the executive bodies of AUDI AG. The Annual General Meeting of a stock corporation is the meeting of the corporation’s shareholders at which they exercise their rights with regard to the stock corporation’s affairs. AUDI AG is held by a sole shareholder, Volkswagen AG. The Board of Management manages the business of AUDI AG and of the Audi Group in accordance with the law, the Articles of Incorporation and Bylaws of AUDI AG and the Rules of Procedure issued by the Supervisory Board. Corporate governance also gives due consideration to the corporate goals and to shared interests within the Volkswagen Group network.
  
• At the time the report was completed, the Board of Management of AUDI AG consisted of seven members. The Supervisory Board appoints the members of the Board of Management and oversees and advises the Board of Management’s running of the business. The Supervisory Board of AUDI AG comprises ten shareholder representatives and ten employee representatives as provided for by law (seven employees of the company and three representatives of trade unions). The shareholder representatives are elected by the Annual General Meeting. The employee representatives are elected by employees of the Audi Group’s German operations. The composition of the Supervisory Board and Board of Management of AUDI AG is provided on the website of AUDI AG. https://www.audi.com/en/company/strategy/company-management.html
  
• The Supervisory Board as an overall body must possess the requisite expertise and competences to be in a position to perform its supervisory function and assess and monitor the transactions that the company conducts. To that end, the members of the Supervisory Board must as a whole be familiar with the sector in which the company operates.
  
• Core competences and requirements for the Supervisory Board as an overall body include in particular:
  
  • Knowledge of or experience in the manufacturing and sale of vehicles and powertrains of all kinds or of other technical products
    
  • Knowledge of or experience in the manufacturing and sale of vehicles and powertrains of all kinds or of other technical products
    
  • Knowledge of the automotive industry, business model and market, as well as product expertise
    
  • Knowledge of the Research and Development area, in particular in the technological fields that are relevant for the company
    
  • Experience in positions of entrepreneurial leadership or on Supervisory Boards of major corporations
    
  • Knowledge of the governance, legal and compliance areas
    
  • In-depth knowledge of the fields of finance, accounting or financial audit
    
  • Knowledge of the capital market
    
  • Knowledge of the areas of Controlling/Risk Management
    
  • Internal Control System
    
  • Human resources competence (in particular searching for and recruiting Board of Management members, successor process) as well as knowledge of incentive and remuneration systems for the Board of Management
    
  • In-depth knowledge of or experience in the areas of co-determination, employee affairs and the working world in the company
    
• The members of the Board of Management manages the business of AUDI AG. The members of the Supervisory Board of AUDI AG do not have management roles.

• https://www.audi.com/en/company/strategy/company-management/methods-and-practices-of-the-board-of-management-and-supervisory.html
• Significant duties of the Supervisory Board of AUDI AG include appointing and dismissing members of the Board of Management and establishing and conducting regular reviews of Board of Management remuneration. In addition, the Supervisory Board oversees and advises the Board of Management’s running of the business.
• The Supervisory Board of AUDI AG comprises ten shareholder representatives and ten employee representatives as provided for by law (seven employees of the company and three representatives of trade unions). The shareholder representatives are elected by the Annual General Meeting. The employee representatives are elected by employees of the Audi Group’s German operations. The members of the Supervisory Board are normally elected for a period of five years.
  
• The Supervisory Board decides on the membership and duties of the committees through resolutions within the framework of the provisions of the statutory regulations and of the articles of incorporation. Further details on the composition and the required competences of the Supervisory Board are provided under GRI 2-9.

The Chairman of the Supervisory Board of AUDI AG is a member of the board of Management of Volkswagen AG. He does not hold a management position at AUDI AG.

Strategy development, as well as the subsequent derivation and pursuit of targets relating to sustainability, is fully integrated into the corporate governance model of AUDI AG. The Board of Management of AUDI AG plays an active and decisive role in this regard.

The Supervisory Board is informed about important decisions and approves key directions as part of its responsibilities. This overall process also includes the appropriate consideration of the legitimate interests of stakeholders, who are determined in advance of the strategy development and who are involved in depth in the decision-making process. As part of the standard process, the implementation status of target measures is first monitored in parallel with the project. An impact analysis is then carried out to determine the effectiveness with regard to the original stakeholder interaction.

In the annual planning round that follows, the impact analysis serves as the new input parameter for process and impact improvement.

Responsible and sustainable corporate governance is part of the corporate culture of AUDI AG. To best record the impacts of the organization on the economy, the environment and people, the Board of Management of AUDI AG has created structures to account for impacts in the strategy and to integrate them into the business operations of the company. The Board of Management as a whole is responsible for the ESG strategy of AUDI AG, which also includes delegation and coordination with other members of management.

AUDI AG has defined a regular process in which responsible parties report to the Board of Management at defined intervals. This reporting involves the presentation of quantitative and qualitative information on the performance of programs and initiatives. Additionally, ad hoc reports can be presented to the Board of Management at any time.

• See Audi Report 2022 page 2

The Audi Board of Management approves and bears overall responsibility for the Audi Report.

• Members of the Board of Management generally require the prior consent of the Supervisory Board in order to take up public office or a mandate on a Supervisory Board or similar in a domestic or international company, corporation or institute. Consent is not required in the event of a legal obligation to assume the role or if the person concerned will be exercising civic rights. All members of the Board of Management must disclose conflicts of interest to the Supervisory Board immediately and must inform the other members of the Board of Management. Major transactions with persons or enterprises closely connected with a member of the Board of Management should only be undertaken with the consent of the Supervisory Board.
• Every member of the Supervisory Board is obliged to disclose conflicts of interest to the chairperson of the Supervisory Board immediately. In its report to the Annual Shareholders’ Meeting, the Supervisory Board must provide information about any conflicts of interest that have arisen as well as how they were addressed. Significant and non-temporary conflicts of interest involving a member of the Supervisory Board must lead to termination of the member’s mandate. Supervisory Board members must not perform an executive or advisory function for significant competitors of AUDI AG or for significant competitors of a company associated with AUDI AG and must not have a personal relationship with a significant competitor. The Supervisory Board members shall immediately inform the company if they intend to accept a Board of Management mandate for a listed company, a Supervisory Board mandate or the chair of a Supervisory Board in a non-group listed company or a role that is similar to a Board of Management mandate, Supervisory Board mandate or to the chair of a Supervisory Board in a non-group listed company. The Supervisory Board members shall inform the company of all information required to create a resumé detailing the relevant knowledge, abilities and specialist experience and a supplementary overview of the key activities in addition to the Supervisory Board mandate. The Supervisory Board members will further inform the company of all information required to update this resumé and the supplementary overview of the key activities in addition to the Supervisory Board mandate on a yearly basis.

Regular exchanges take place regarding the activities of Governance, Risk & Compliance. Within this framework, the Chief Compliance Officer presents scheduled and ad hoc reports to the Board of Management, Supervisory Board, Group Chief Compliance Officer and Group Integrity Officer of AUDI AG as well as the Volkswagen Group, including reports on the Whistleblower System. Also included in the reporting duties of Governance, Risk & Compliance are quarterly risk reports and the annual internal Governance, Risk & Compliance report, which are submitted to the Board of Management of AUDI AG and the Audit Committee of the Supervisory Board of AUDI AG.
In 2022, 461 reports of possible regulatory violations were received. This is in line with the previous year’s level. The reports contained substantial information and were mostly non-anonymous, confirming once again that trust in the Whistleblower System is high.

AUDI AG has a balanced Board of Management structure with various areas of expertise, qualifications, backgrounds and capabilitie  in order to make a positive impact on the performance of the company, improve its market share and strengthen its financial position. Upon their nomination, the members of the Board of Management are reviewed regarding whether they possess the necessary capabilities, experiences and industry knowledge to be a part of the Board of Management and to fulfill requirements.
Moreover, the Board of Management regularly takes part in internal and external training courses (as part of workshops on the sustainability strategy, Board of Management meetings, interactions with the Volkswagen Sustainability Council) to expand its knowledge and expertise. The members of the Board of Management are also encouraged to regularly take part in events and conferences to keep their knowledge and expertise up to date, as is required by the business and the standing of the company.

REMUNERATION OF THE MEMBERS OF THE BOARD OF MANAGEMENT

I. Principles of Board of Management remuneration

• The full Supervisory Board passes resolutions on the remuneration system and the total remuneration for individual members of the Board of Management of AUDI AG on the basis of the Presiding Committee’s recommendations. The remuneration system for the Audi Board of Management does not apply to Board of Management members who are simultaneously members of the Board of Management of Volkswagen AG. The remuneration system of Volkswagen AG applies to these.
  
• The remuneration of the members of the Board of Management complies with the statutory requirements of the German Stock Corporation Act (AktG) and the recommendations of the German Corporate Governance Code. When elaborating the remuneration system, the Supervisory Board was assisted by renowned, independent, external remuneration and legal consultants. The Supervisory Board presents the remuneration system adopted by it to the Annual General Meeting for approval each time it is changed but at least every four years.
  
• The level of remuneration should be fundamentally appropriate and attractive by national and international comparison. The relevant criteria include the tasks of a Board member, the economic situation, performance and future prospects of AUDI AG and also the standard nature of the remuneration, taking account of competitors on the market and the pay structure otherwise in place within the Volkswagen Group.
  
• The amount of the remuneration, the individual objectives and goal achievement are regularly checked by the Supervisory Board and adjusted if required.
  

II. Overview of the remuneration components

• The following table provides an overview of the components that make up the remuneration system for members of the Board of Management of AUDI AG for the 2022 financial year. In addition, the table provides an overview of the design of the individual remuneration components and explains their objectives, in particular in respect to how the remuneration promotes the long term development of the company. The inclusion of ESG criteria in the remuneration system is currently in development.

III. Fixed remuneration components

• Basic salary:
  • Form: Twelve equal installments; paid at the end of each month
    
  • Objective: Basic remuneration and fringe benefits should ensure a basic income that reflects the tasks and responsibilities of a member of the Board of Management and prevents the running of inappropriate risks
    
• Fringe benefits:
  
  • Form: Fringe benefits, such as for example a driving service, company cars or medical checkups
    
  • Objective: Basic remuneration and fringe benefits should ensure a basic income that reflects the tasks and responsibilities of a member of the Board of Management and prevents the running of inappropriate risks
    
• Company pension scheme (bAV)
  
  • Form:
    
    • In principle, contributions-based defined benefit plans by way of the direct pension commitment to retirement, reduction in earning capacity and surviving dependent benefits
      
    • Until the employee reaches the age of 65
      
    • Annual benefit contribution of 40% of the contractually agreed basic salary
      
  • Objective: bAV must assure members of the Board of Management an adequate level of benefits including in retirement
    

IIII. Variable remuneration components

• Annual bonus:
  • Form:
    
    • Plan type: target bonus
      
    • Assessment period: business year
      
    • Benefit criteria:
      
      • Financial partial goals:
        
      • Operating return on sales (RoS) in the Volkswagen Group and in the Audi Group as well as the return on investment (RoI) in the Volkswagen Group and the Audi Group (equally weighted)
        
      • For every business year, the Supervisory Board stipulates the values for the financial partial goals in the form of a threshold value, target value and upper reference value
        
    • Annual bonus payment amount = individual target amount x financial total target achievement level
      
    • Payment: cash payment/payment in the month after the approval of the consolidated financial statements for the relevant business year
      
  • Objective: The annual bonus must incentivize members of the Board of Management to pursue ambitious targets; economic success targets promote the strategic goal of competitive profitability
    
• Long-term bonus (LTI):
  • Form:
    • Plan type: virtual performance share plan
      
    • Performance periods: three years forward-oriented
      
    • Limitation: 200% of the target amount
      
    • The virtual performance shares are pure calculation positions and grant no shares or voting rights in Volkswagen AG
      
    • Allocation of performance shares: at the start of each business year, the individually agreed target amount is divided by the arithmetic average of the closing prices of the Volkswagen preferred share (security identification number: 766403) in the XETRA trading platform of the Deutsche Börse AG (German stock exchange) on the last 30 trading days prior to January 1 of the relevant performance period (“initial reference price”)
      
    • Determining the goal: at the start of the performance period, the Supervisory Board determines a minimum value (goal achievement of 50%), a target value (100%) and a maximum value (150%) for the earnings per share (EPS)
      
    • The average EPS goal achievement over the performance period is determined from the arithmetic average of the annual EPS goal achievement during the performance period
      
  • Objective: The long-term bonus serves to align the remuneration of the Board of Management members to the long-term performance of the company. The trading price performance in combination with the distributed dividends, measured over three years, ensures the long-term impact of performance incentives and promotes the strategic goal of competitive profitability
    

V. Other services

• Special payment:
  • Form:
    • Only on the basis of a separate contractual agreement with the Board of Management member
      
    • Agreement in advance for the business year and stipulating the performance criteria for the special payment
      
    • Currently there are no special payment agreements with Board of Management members
      
  • Objective: Special payments should award outstanding and extraordinary services and may only be granted if they are in the company’s interests and are associated with future-related benefits for the company
    

• Benefits that are limited in time or are agreed for the entire duration of the service contract with respect to new incoming Board of Management members:
  
  • Form:
    • Only on the basis of a separate contractual agreement with the new incoming Board of Management member in each case
      
    • Payments to settle expiring variable remuneration or other financial disadvantages
      
    • Benefits in the context of a location change
      
    • Guarantee of a minimum remuneration
      
    • In the past business year, no significant special benefits to new, incoming Board of Management members
      
  • Objective: (Compensatory) payments should make it possible to attract qualified candidates
    

VI. Further remuneration regulations

• Malus and clawback regulations:
  • Form:
    
    • The Supervisory Board can reduce or reclaim the annual bonus and LTI up to 100% in the case of relevant misconduct during the assessment period
      
    • Clawback is excluded if more than three years have passed since the payment was made
      
  • Objective: Malus and clawback regulations should counteract individual misconduct and organizational culpability
    
    
• Maximum remuneration:
  • Form:
    • The LTI is capped at 200% of the target amount; in the event of extraordinary developments, the Supervisory Board can at its own discretion set a limit on the variable remuneration components (cap) in accordance with the principle of appropriateness (Section 87 German Stock Corporation Act (AktG)
      

Leistungen und Leistungszusagen im Zusammenhang mit der vorzeitigen Beendigung

• Das Vergütungssystem für die Mitglieder des Vorstands und die Dienstverträge der Vorstandsmitglieder sehen Entlassungsentschädigungen für den Fall des Widerrufs der Bestellung zum Mitglied des Vorstands vor.
• Die Vorstandsmitglieder erhalten – außer bei Vorliegen eines wichtigen Grundes, der die Gesellschaft zur außerordentlichen Beendigung des Dienstvertrags berechtigt, sowie bei Widerruf der Bestellung wegen grober Pflichtverletzung – eine Abfindung als Bruttobetrag in Höhe der Gesamtvergütung des abgelaufenen Geschäftsjahres, gerechnet ab dem Zeitpunkt der Beendigung der Bestellung zum Mitglied des Vorstands der Gesellschaft bis zum Ende der regulären Bestellungszeit, maximal für zwei Jahre. Eine etwaige Sonderzahlung bleibt für die Berechnung außer Betracht.
• Die Abfindung wird in maximal 24 monatlichen Teilbeträgen ab dem Zeitpunkt der Beendigung der Bestellung zum Vorstandsmitglied der Gesellschaft gezahlt. Vertragliche Vergütungen, die die Gesellschaft für die Zeit ab Beendigung der Bestellung bis zum Ende des Dienstvertrags zahlt, werden auf die Abfindung angerechnet.
• Nimmt das Vorstandsmitglied nach Beendigung der Bestellung eine andere Tätigkeit auf, verringert sich die Höhe der Abfindung um vertragliche Vergütungen, die die Gesellschaft ab Beendigung der Bestellung bis zum Ende des Dienstverhältnisses zahlt, und auch um anderweitige Einkünfte in diesem Zeitraum.
• Den Mitgliedern des Vorstands sind auch für den Fall der vorzeitigen Beendigung ihrer Tätigkeit ein Ruhegehalt bzw. eine Hinterbliebenenversorgung und für die Dauer des Bezugs des Ruhegehalts die Nutzung von Dienstwagen zugesagt.

VERGÜTUNG DER MITGLIEDER DES AUFSICHTSRATS

Grundsätze der Aufsichtsratsvergütung

• Die Vergütung der Mitglieder des Aufsichtsrats ist in § 16 der Satzung der AUDI AG geregelt, deren aktueller Stand am 30. November 2021 durch die Hauptversammlung der AUDI AG beschlossen wurde. Die Vergütung der Aufsichtsratsmitglieder der AUDI AG besteht ausschließlich aus erfolgsunabhängigen Vergütungsbestandteilen.
• Die Mitglieder des Aufsichtsrats der AUDI AG erhalten je Geschäftsjahr eine feste Vergütung. Der_Die Vorsitzende des Aufsichtsrats erhält das Dreifache, sein_ihre Stellvertreter_in erhält das Doppelte der Grundvergütung eines Aufsichtsratsmitglieds. 
  
• Die Mitglieder des Aufsichtsrats erhalten zudem für ihre Tätigkeit in den Ausschüssen des Aufsichtsrats pro Geschäftsjahr eine zusätzliche feste Vergütung pro Ausschuss, sofern der Ausschuss mindestens einmal im Jahr zur Erfüllung seiner Aufgaben getagt hat. Die Mitgliedschaften im Nominierungs- sowie im Vermittlungsausschuss gemäß § 27 Abs. 3 MitbestG bleiben unberücksichtigt. Die Ausschussvorsitzenden erhalten den doppelten, ihre Stellvertreter_innen den eineinhalbfachen Betrag der vorstehend aufgeführten Ausschussvergütung. Aufsichtsratsmitglieder, die nur während eines Teils des Geschäftsjahres dem Aufsichtsrat bzw. einem seiner Ausschüsse angehört haben, erhalten eine zeitanteilige Vergütung. Eine auf die Vergütung entfallende Umsatzsteuer erstattet die Gesellschaft.
• Für die Teilnahme an Sitzungen des Aufsichtsrates oder eines Ausschusses erhält das jeweilige Mitglied eine feste Sitzungsgeldpauschale pro Geschäftsjahr. Die Vergütung und die Sitzungsgeldpauschale sind jeweils zahlbar 30 Tage nach Ende des Geschäftsjahres. Die Gesellschaft schließt außerdem zugunsten der Aufsichtsratsmitglieder eine Haftpflichtversicherung mit Selbstbehalt ab.
• Ausgeschiedene Mitglieder des Aufsichtsrats bekommen von der AUDI AG nach ihrem Ausscheiden keine Vergütung mehr für die frühere Aufsichtsratstätigkeit.

For reasons of confidentiality, this information cannot be published.

• See Audi Report 2022 page 2, 10 ff.
  

• Without exception, Audi commits the employees and business partners proactively and preventively to the binding Audi Code of Conduct or the Volkswagen Code of Conduct for Business Partners. These documents set out the company’s duties of care and those of the business partners, among other things. They also include the commitment to equal opportunities and equality, to respecting human rights and to compliance with occupational health and safety and environmental protection. Furthermore, Audi has confirmed the updated Volkswagen Social Charter for the Audi Group. This declaration on social rights, industrial relations and on business and human rights is a commitment to corporate responsibility and a binding foundation for the configuration of contractual relationships. This also includes dialogue with internal and external stakeholders.
  
• In accordance with provisions under German stock corporation law, the Board of Management of AUDI AG has established a risk early warning system as well as an Internal Control System (ICS) and a Risk Management System (RMS) with regular reporting duties on the part of the Board of Management and internal and external monitoring mechanisms. Established management systems such as RMS, the Quality Management System (QMS) and the Compliance Management System (CMS) as well as the Audi Corporate Regulations system ensure, as the binding regulatory framework, that statutory requirements, standards and corporate obligations are consistently implemented in company and brand group policies, processes and work instructions and that the highest bodies in the company are involved in the reporting and decision-making processes. Continuous, strategic communications and training measures raise the awareness of employees and business partners around these topics. Moreover, the regular reports of the Chief Compliance Officer to the Board of Management and the Supervisory Board of AUDI AG and to the Group Chief Compliance Officer of the Volkswagen Group ensure a continuous flow and exchange of information.
  
• Audi recognizes its corporate responsibility for human rights and takes its lead from the UN Guiding Principles on Business and Human Rights. They refer to the general declaration of human rights, the OECD guidelines for multinational companies and the core labor standards of the International Labor Organization (ILO). This commitment is documented in the AUDI AG policy statement on human rights, and also in the Audi Code of Conduct which is binding for all employees and business partners as well as the Volkswagen Code of Conduct for Business Partners and the Volkswagen Social Charter. The declarations of commitment are managed and adopted within the framework of the regulation processes at the highest relevant level of the organization, i.e., the Board of Management of AUDI AG.
  
• The key topics within the context of the UN Guiding Principles, known as the Salient Business & Human Rights Issues, were identified in a Group-wide work group. Among others, these include the ban on discrimination, the ban on child and forced labor, the protection of vulnerable, in particular, indigenous groups and the protection of freedom of association. Audi publishes an annual statement on actions taken and the management approach to modern slavery (Slavery and Human Trafficking Statement).
  
• Audi publishes its self-image and its voluntary commitments in matters concerning responsible corporate governance and specifically compliance and integrity on its website at Business and Human Rights | audi.com and ESG: A culture of integrity and responsibility at Audi | audi.com. This multilingual, publicly available content is updated regularly. This content is moreover available at all times to all employees in Audi’s internal communications media. It is supported by a broad portfolio of training and qualification measures as well as communications and participation formats such as Tone from the Top/Tone from the Middle, interactive events, workshop offerings as well as the Group-wide integrity and compliance program Together4Integrity | audi.com. This program is based on the principles of the Ethics & Compliance Initiative (ECI), a globally recognized standard for ethical corporate principles.
  
• For further information see: https://www.audi.com/de/sustainability/ethical-leadership/documents-policies.html

The success of our company depends on our achievement of goals while maintaining compliance with legal regulations and internal company policies. In our everyday work, our Code of Conduct shows the way to live up to this commitment. Our Code of Conduct determines the material principles that apply to the day-to-day work at our company. They apply Group-wide and are binding for all employees, regardless of hierarchy level. For all important corporate decisions, statements from Compliance & Integrity as well as from other experts – for example from the Sustainability, Corporate Strategy and Legal Service departments – are a fixed component of the submissions to the Board of Management.

The Compliance Management System (CMS) in the Volkswagen Group is based on the requirements of IDW PS 980 (auditing standard 980 of the Institute of Public Auditors in Germany). It forms the organizational framework for sustainable compliance with legal requirements and corporate obligations. An integral element of CMS is Integrity Management, which contributes to the long-term safeguarding of value-oriented behavior within the company. Audi commits all employees and business partners proactively and preventively to the binding Audi Code of Conduct and/or the Volkswagen Code of Conduct for Business Partners. Furthermore, Audi supports the national action plan of the federal government to implement the UN Guiding Principles on Business and Human Rights (NAP) by cooperating in the accompanying Industry Dialogue of the automobile industry. Audi publishes an annual statement on actions taken and the management approach to modern slavery (Slavery and Human Trafficking Statement).  

The Whistleblower System accepts specific indications of potential misconduct by employees of the Audi Group and can be used by employees and third parties at any time: https://www.audi.com/de/company/integrity-compliance-and-risk-management/whistleblower-system.html. The specific procedural principles of the complaint mechanism are disclosed in detail at https://www.audi.com/de/company/integrity-compliance-and-risk-management/compliance/human-rights.html.

The Audi Investigation Office has the option to define a special measure. This includes all weaknesses identified in the reported suspicion. When investigating a serious regulatory violation, a root cause analysis is performed for procedural weaknesses focusing on the causes. The quarterly improvement process performed internally within the specialist area deals in an overarching way with potential improvements of the Compliance Management System.  

AUDI AG and its subsidiaries are subject to regular internal and external audits, for which, inter alia, an internal Compliance Management System report is produced; they also provide an account of their GRC activities in the Service Level Agreement reports in conjunction with the subsidiaries.

Potential misconduct and regulatory violations on the part of employees of the Audi Group can be reported to the Audi Investigation Office via the Whistleblower System – confidentially, anonymously, at any time and in every language. The reporting channels and the rules of procedure for the Audi Group complaint mechanism have been published on Audi.com. Potential violations of the Code of Conduct for Business Partners can be reported via speakup.supplychain@audi.de.

Any known cases of actual and suspected compliance violations are isolated cases without a systemic cause. The total number of cases is not considered for confidentiality reasons.

Audi works in a variety of initiatives, associations and work groups to discuss ecological, economic and social issues in partnership with stakeholders. The material memberships in Germany can be found in the lobby register. Additionally, Audi is active in major international multistakeholder sustainability initiatives such as the Aluminium Stewardship Initiative and the Global Battery Alliance. Additional information can be found here.

• See Audi Report 2022 page 18

https://www.audi.com/en/sustainability/sustainability-concept/stakeholder-management.html

The proportion of AUDI AG employees to whom collective bargaining agreements apply is 99.87 percent. The working and employment conditions of employees of AUDI AG who are not subject to collective bargaining agreements are determined based on the collective bargaining agreements that apply to other employees.

• See Audi Report 2022 page 18

https://www.audi.com/en/company/sustainability/stakeholder-management.html

• See Audi Report 2022 page 19

Material topics for Audi are: emissions and energy along the value chain; alternative drive technologies and vehicle emissions; vehicle safety; fair working conditions and modern working forms; sustainable corporate governance; circular economy and sustainable materials; responsibility in the supply chain; economic stability; occupational health and safety; new mobility concepts; compliance and integrity; nature conservation and biodiversity; corporate culture; integration and diversity; responsible digitalization; stakeholder focus and long-term customer relationships; corporate citizenship.

• A solid economic performance is the essential basis for every company if it is to succeed in the long term. Only through stable profits and positive cashflows can the required investments be financed and future viability be ensured.
  
• An insufficient financial performance endangers the implementation of the Audi strategy, as the required upfront expenditure for products and systems cannot be provided in the required scope. In the long term, this would also lead to a loss of competitiveness for Audi.
  
• The Audi strategy sets out clear, ambitious goals for the most important key figures. These are communicated transparently and monitored.
  
• The financial steering process of the Audi Group is strongly oriented toward the planning process of the Volkswagen Group and includes long-term, medium-term, annual and monthly planning data. The financial targets contained therein are monitored regularly, reported on in the top-level committees and coordinated with the Volkswagen Group. When deviations are imminent, corresponding measures are initiated.
  
• Through regular financial reporting and the exchange with capital market participants the financial targets and competitiveness are reviewed.
  

• See Audi Report 2022 page 20 ff.
  

• See Audi Report 2022 page 45

• See Audi Report 2022 page 93 ff.
  

Audi is an internationally operating company and maintained production facilities in 12 different countries around the world during the reporting period. Services and products are procured on the basis of a global supplier base, with a focus on resource- optimized procurement. The term “major operations” is used to refer to sites in Europe and North America; associated companies in China are not included in this analysis. The term “local” refers to the entire region in which the respective operation is located. Under these assumptions, the volume of products and services procured locally by major operations accounted for 64.9 percent of the total Audi procurement volume in the year under review. Of that figure, Europe accounted for 55.1 percent (Germany: 38.5 percent) and North America for 9.8 percent.

• Global companies must act particularly sensitively in their day-to-day business, since benefits with underlying commercial inducements are common in many cultures. This can lead to corruption and cause not just material damage, but also undermine the very foundations of a company.
  
• As a globally active company, Audi depends on moral conduct and fair competition as the basis for an impeccable reputation and long-term success around the globe. Corruption and bribery are therefore naturally prohibited at Audi.
  
• The company has embedded this principle in the Audi Code of Conduct, which is binding for all employees, and in a specific corporate policy. Audi grants benefits to third parties, such as external business partners or public officials, only to the extent permitted by law and in accordance with defined rules. The same applies to accepting invitations and gifts from third parties.
  
• In addition to the guidelines and obligations described, training measures also constitute part of the preventive avoidance of corruption. For example, there are obligatory web based training courses (WBT) on combating corruption and interacting with public officials for the relevant groups of people. Suspected cases are handled by the Audi Investigation Office in coordination with the internal Auditing department. Measures are systematically derived and implemented.
  
• Major KPIs are subject to a continuous review process. Thus, for example, the participation rates in mandatory WBTs are tracked and measures are taken as the occasion requires. The regular participation in cross-industry exchange and dialogue formats as well as the regular exchange with the Volkswagen Group guarantees the consideration of current developments from theory and practice.
  

• The Audi Group places a high priority on preventing corruption. Within the company, the Compliance AUDI AG/Management Systems (I/GC-A) department helps ensure sustainable prevention of corruption.
  
• As part of the Internal Compliance Risk Assessment (ICRA) standard process, compliance risk profiles are drawn up for each company, including for the subject area of corruption. Each company has to implement specific individual measures once the risk profile has been created, which help mitigate the risk. In addition, the Audi Compliance Risk Assessment (CRA) is used to identify division-specific compliance risks for AUDI AG. Corruption is among the core compliance issues here as well.
  
• In the year under review, 44 national and international participations were supported in the compliance focal area of anti-corruption in the course of consultancy inquiries, the implementation of policies and the execution of training programs. Fundamentally, all those entities where AUDI AG holds a majority interest or management responsibility or that are of particular importance are included in the process. In addition, the proper implementation of measures is verified as part of on-site inspections and external audits. Furthermore, within AUDI AG, the Automated Compliance Risk Analysis (ACRA) is used to identify division-specific compliance risks. Corruption is among the core compliance issues here as well. Companies can also report risks, problems and incidents in relation, inter alia, to the area of corruption to the Compliance and Integrity specialist area as part of hot topic reporting. No hot topics in relation to corruption were reported in the year under review.
  

The web-based training (WBT) courses on anti-corruption and dealing with public officials that are mandatory for all indirect employees, management and Board of Management were combined in one WBT course, which achieved a participation rate of 96.32 percent. Additionally, a new mandatory WBT on insider law was introduced whose participation rate was 99.31 percent. The new Board of Management members for Production and Logistics (P) and Human Resources and Organization (S) of AUDI AG received mandatory executive training on the Audi Code of Conduct and anti-corruption, and the entire Board of Management received training on the topic of transformation through integrity. In addition to the continuous raising of awareness through risk-based communications and training measures, the “Compliance Dialogue” digital dialogue format was established for all employees and managers. It would not make sense to break down the key figures by region for the information on the governance body, as it is located in Germany. No breakdown by employee category and by region for the other criteria has been carried out, because this is not relevant for control purposes.

In 2022, two suspected cases of serious regulatory violations concerning corruption were reported to the Audi Investigation Office and forwarded to Audi Auditing for further examination. In one of the cases, another regulatory violation was determined that resulted in personnel consequences. For the second case, a regulatory violation was determined that, however, had no relevance to corruption.

• Fair and free competition is the cornerstone of a functioning market economy. It is the basis for commitment and dedication, diverse products and services and the pursuit of innovation. Agreements and other coordinated behaviors amongst market participants can restrict competition in a prohibited way. Compliance with requirements under antitrust law is of key importance to AUDI AG, as a market participant, and is embedded in its goal of contributing to a functioning market, participating in it and avoiding the negative consequences of infringements of antitrust law.
  
• For a globally active company like AUDI AG, a greater awareness of antitrust law is particularly important because compliance with the requirements of antitrust law is also relevant in the context of activities and business relationships.
  
• Values-based behavior and compliance with the regulations are the basis for long-term success. In addition to the Code of Conduct, AUDI AG has also tackled the issue of antitrust law in other internal company regulations, including specific guidelines pertaining to antitrust law. These serve to provide employees with direct assistance with the many and diverse requirements of antitrust law for their daily work.
  
• In addition to the guidelines, training measures and specialist legal advisors are available to assist those dealing with these issues worldwide to recognize situations that are critical for antitrust law and to behave in a legally compliant manner. With web based training courses (WBTs), employees have comprehensive and easy access to the topic and guiding principles of antitrust law. The WBT is obligatory for members of management, in particular, and must be repeated regularly.
  
• The Audi Compliance Management System also comprises the topic of antitrust law and is applied throughout all of AUDI AG. On the basis of the evaluation, risk-specific measures are recommended such as, in particular, participation in web based training courses (WBT). In addition, regular compliance reporting also contains aspects of antitrust law.
  
• The identification of particularly relevant specialist areas and stakeholders is also based in particular on the risk evaluation as evidenced by the results of the survey performed within the framework of the Compliance Management System.
  

Cases of actual and suspected violations of anti-trust law are isolated cases. The total number of cases is not reported for confidentiality reasons.

• Natural resources form the basis for all life on earth. The global economy and quality of life depend directly on these resources or rather their availability. Requirements in relation to energy and resource consumption have risen exponentially on our planets. Developments such as population growth, increasing prosperity in many regions of the world and urbanization will further accelerate the utilization of natural resources and exacerbate the already excessive burden on the ecological carrying capacity. This brings with it a multitude of other ecological and societal challenges.
  AUDI AG vehicles today consist mainly of steel and iron materials, polymers, elastomers and light metals. These raw materials will in all likelihood still be available in sufficient quantities in the future, too. Nonetheless, our goal is to reduce the consumption of primary material where possible. That is why we are focusing intensely not only on the recyclability of our vehicles but also on closing material loops along the automotive value chain. In addition to saving valuable resources, this will also reduce energy consumption and lower CO2 emissions.
  
• The demand for specific raw materials, such as cobalt and lithium, is changing with the transformation to electric mobility. A considerable portion of CO2 emissions in this respect already arise during the production of an electric vehicle, one effect of which is to increase pressure on the supply chain. Efforts at Audi to ensure sustainability in the supply chain are therefore not confined to reducing CO2 emissions; they also aim to use natural resources sparingly and carefully.
  
• Resource efficiency was identified as one of the main action areas for AUDI AG and was addressed in different ways, including in its “Vorsprung 2030” strategy and Mission:Zero environmental program. The goal is to avoid as much waste as possible and reclaim as many materials as possible at a high quality level so that they can be used again in the long term in our production. Corporate governance will therefore be embedded in important landmark decisions.

Actions taken

• Battery development
  The lithium-ion battery is the central element of an electric car. Audi is therefore collaborating with the Volkswagen Group on solutions relating to topics like remanufacturing, second life and efficient recycling.
  
  Recycling and use of recycled materials
• The most diverse materials are used in a vehicle – from metals such as steel and aluminum to plastics and electronic components through to glass. Whereas many of these materials have already been fed back into recycling loops for some time, the only alternative for others is downcycling or use of recycled waste as lower-quality raw materials. Audi wants to change this and instead recycle as many resources as possible in closed loops.
  
• Audi considers aspects such as recyclability as early as the development and design stage of a vehicle – and thus years before the first series production vehicle leaves the plant. One assertion stands out in this respect: “Materials that are not used in the first place benefit the environment the most.” When it comes to product development, Audi therefore focuses on conserving resources and always tries to find ways to improve recyclability and/or save materials.
  
• With this in mind, recyclates are being used in increasingly more components to help to conserve resources. These are reclaimed materials derived from a recycling process. Such recycled materials are also used in the Audi Q4 e-tron (SUV) in up to 27 components. For the exterior, this means components such as the assembly carrier – a part that has to meet especially high requirements when it comes to its mechanical properties. In the interior, recycled materials are used in the insulation and damping materials. Moreover, many of the visible surfaces contain a proportion of recycled materials. These include the floor covering and parts of the luggage compartment trim. The “Puls” material, which is combined with artificial leather, contains a proportion of recycled materials. For the seat trim made from this material, PET bottles are transformed into yarn using an elaborate processing procedure – the end result is a material that features the same quality standards, to the eye and to the touch, as classic textile upholstery.
  
  Lightweight construction
  
• Lightweight construction has likewise been a top priority for Audi decades now. As an efficiency technology, it contributes significantly to achieving CO2 fleet targets. The premium brand with the Four Rings not only focuses on a single material in this respect, rather on an intelligent mix of materials – from steel to aluminum and magnesium through to fiber-reinforced plastics. The motto of the lightweight construction engineer: the right material at the right place and in the right amount.
  
• The management approach followed by AUDI AG aims to decouple economic growth from excessive consumption of resources and reduce emissions at the same time.
  
• Audi works in a variety of initiatives, associations and work groups, such as the Global Battery Alliance or the Aluminium Stewardship Initiative (ASI), to promote ecological, economic and social issues in partnership with stakeholders. In March 2022, Audi rejoined the UN Global Compact, the world’s largest initiative for sustainable corporate governance. This membership in one of the most active platforms for dialogue among industry, civil society and politics is an important pillar of stakeholder management.
  
• As part of the Code of Conduct for Business Partners, Audi defines clear requirements for business partners in terms of development, extraction of raw materials, manufacturing, the utilization phase of products through to recycling and other activities for ensuring economical use of energy, water and raw materials, the use of renewable resources and minimizing damage to the environment and to health.
  

• See Audi Report 2022 page 86

The materials used are calculated based on the analysis of selected models. The process is currently being revised. No information for 2022 is available. It is currently not possible to break down the total weight into renewable and non-renewable materials. We plan to continuously expand the use of renewable materials going forward.

The percentage of recycled input materials is currently not calculated for all models in the product portfolio. Audi plans to continuously increase the proportion of recycled input materials. Selected pilot projects, for example MaterialLoop, analyze the feasibility for potential use in series production.

Information with the required level of detail is not currently available.

• See Audi Report 2022 page 81

• Information on the environmental policy of AUDI AG: https://www.audi.com/content/dam/gbp2/company/sustainability/downloads/documents-and-policies/2020/Grundsatzerklaerung-Umweltpolitik-AUDI-AG-2020.pdf
• Audi is facing the challenges of climate change and accepting them for itself. The company is committed to the United Nations̕ 1.5 degrees goal. Audi is aware of its global responsibility for the environment and all of the environmental and social impacts associated with its actions and products. Audi uses its globally networked innovative strength to reduce its ecological footprint. AUDI AG meets the associated challenges throughout the entire life cycle of its vehicles.

• See Audi Report 2022 page 82, 125 ff.

The information is not currently available and we are working toward making it available in the coming reporting periods.

• See Audi Report 2022 page 82, 125 ff.
  

• See Audi Report 2022 page 82, 125 ff.
  

• See Audi Report 2022 page 82

• With its Mission:Zero environmental program, Audi is addressing four action areas: decarbonization with a clear focus on production, economical and efficient water use, resource efficiency and the preservation of biodiversity. Clean drinking water is one of the most valuable resources worldwide. This is why Audi has included the economical and efficient use of water as a key aspect of its Mission:Zero environmental program. Its objective in this regard is to close water cycles to the greatest extent possible. A number of individual measures are in place at the sites to achieve this. For example, Audi is currently constructing a new process water supply center at its site in Neckarsulm to allow wastewater to be fed back into the process water cycle. The effectiveness of measures is verified by various key figures such as fresh water consumption or “used rainwater.” Audi is a member of the Alliance for Water Stewardship (AWS).
  

• See Audi Report 2022 page 82, 125 ff.

The information is not currently available and we are working toward making it available in the coming reporting periods.

• See Audi Report 2022 page 125 ff.

• See Audi Report 2022 page 125 ff.

• See Audi Report 2022 page 125 ff.

• Alongside climate change, the dramatic loss of biodiversity is one of the greatest challenges of the 21st century. With its Mission:Zero environmental program, Audi is addressing four action areas: decarbonization with a clear focus on production, economical and efficient water use, resource efficiency and the preservation of biodiversity. Audi has been a member of the Germany-wide initiative “Biodiversity in Good Company” since 2015. Within the context of its membership, Audi promotes preservation of biodiversity and is implementing projects at all its sites. In addition, Audi is committed to the UN Biodiversity Conference (CBD COP 15) and is developing its own biodiversity index for its plants. This index is a joint development with Volkswagen and records 58 biodiversity parameters for five Audi production sites. This will allow the effectiveness of measures to be assessed and progress to be recorded more easily. Audi is networking with NGOs, governments and communities immediately neighboring its sites to increase the effectiveness of its biodiversity measures.
  https://www.audi.com/en/sustainability/environment-resources/decarbonization/a-visit-at-audis-natural-habitat-for-flora-and-fauna-on-its-production-site.html

The information is not currently available and we are working toward making it available in the coming reporting periods.

The information is not currently available and we are working toward making it available in the coming reporting periods.

• Climate change is one of the greatest challenges of the present time. Audi is committed to the goals of the Paris Climate Agreement. The company is therefore aiming to ensure that all of its production sites will be net carbon-neutral by 2025. In terms of the product portfolio, the brand will flip the switch during the course of 2026 and from then on only introduce electric models onto the global market. At the same time, Audi will expand its electric range within the next five years: by 2027, the Four Rings intends to include one fully electric vehicle in its portfolio in all core segments. According to current production planning, the company will then have more than 20 electric models in its portfolio. Production of the final combustion engine vehicles is set to be phased out by 2033.
  
• The environmental management system of the European Union, EMAS (Eco-Management and Audit Scheme), is installed at almost all European car plants of the Audi Group. Audi already decided back in 1995 to introduce an environmental management system according to the EMAS regulation and thus committed itself to continuously improving its environmental footprint and bringing its employees on board. Proof of the introduction, effective maintenance and continuous improvement of the environmental management system (ECMS) at AUDI AG is based on validation according to EU Regulation (EC) No 1221/2009, also referred to as EMAS III. Audi publishes the core indicators set out in EMAS III from the six keys areas: energy efficiency, material efficiency, water, waste, biodiversity and emissions.
  
• With its Mission:Zero environmental program, Audi is making an important contribution to greater sustainability – at Audi sites worldwide, in production and in logistics. The Mission:Zero team is working in numerous projects to shape the future of Audi sustainably. Decarbonization is one of the key action areas in the spotlight.
  
• On the road to mobility of the future, Audi is using the decarbonization index (DCI), which is the central key figure for its climate targets for all Volkswagen Group brands. The overall goal is to reduce carbon emissions throughout the life cycle of Audi vehicles by 40 percent by 2030 compared with the reference year 2018. This value applies exclusively to vehicles produced in China in CKD production (Completely Knocked Down).
  
• On the road to climate-friendly mobility, Audi is using the decarbonization index (DCI), which is a strategic indicator for reducing CO₂ for all Volkswagen Group brands. The DCI factors in the entire value chain – from the extraction of raw materials and production to the provision of fuel and electricity and vehicle emissions through to recycling.
  
• Environmental and energy policy of the Audi Group https://www.audi.com/en/company/sustainability/downloads-and-contact/documents-and-policies.html
• Environmental and energy policy of AUDI AG https://www.audi.com/content/dam/gbp2/company/sustainability/downloads/documents-and-policies/2020/Grundsatzerklaerung-Umweltpolitik-AUDI-AG-2020.pdf
  

• See Audi Report 2022 pages 80, 82, 125 ff.

• See Audi Report 2022 pages 80, 82, 125 ff.

This information is not currently reported for reasons of confidentiality.

• See Audi Report 2022 pages 80, 82, 125 ff.

• See Audi Report 2022 pages 80, 82, 125 ff.

The information is not currently available and we are working toward making it available in the coming reporting periods.

• See Audi Report 2022 pages 125 ff.

• Scarcity of resources, environmental pollution and climate change are among the major challenges of our time. Not only is the Audi Group managing these challenges by developing innovative drive technologies, it is also starting to reduce its environmental footprint as early as the production stage. That means using resources such as energy and water carefully, and avoiding emissions of carbon dioxide, solvents and waste.
• One of the goals of the Mission:Zero environmental program in the area of resource management is to preserve resources used and avoid waste. For example, a 35 percent reduction in the environmental footprint compared with 2010 is being targeted by 2025 in terms of CO₂, energy, fresh water, waste for disposal as well as volatile organic compounds per vehicle produced at Audi production sites. The IN-Campus is a further example of model resource efficiency. In a joint venture with the city of Ingolstadt, AUDI AG is redeveloping the former Bayernoil refinery site. Instead of sealing natural areas on the greenfield site for new usable areas, the two partners are redeveloping the former refinery site in an environmentally sound manner and deploying cutting-edge methods to optimally remedy the damage from previous use. Extending to 75 hectares, the IN-Campus is one of the largest redevelopment projects in Germany. 15 hectares are being set aside as an ecological compensation area for nature.
  

• See Audi Report 2022 pages 80, 85, 88, 129
  

• See Audi Report 2022 pages 85, 88
  

• See Audi Report 2022 pages 85, 129
  

The information is not currently available and we are working toward making it available in the coming reporting periods.

The information is not currently available and we are working toward making it available in the coming reporting periods.

• See Audi Report 2022 page 93 ff.
  

• See Audi Report 2022 page 93 ff.

• See Audi Report 2022 page 93 ff.

• Employees are an important resource for companies. If a company has too few employees or an excessively high staff turnover rate – for instance owing to unfavorable working conditions – this can adversely impact many areas of the company. In the case of Audi, for example, too few employees or an excessively high staff turnover rate could lead to production stoppages or loss of valuable know-how.
  
• To counteract these risks, Audi is taking a number of measures and creating attractive offers, such as flexible working time models or training. The employees are also involved in this respect in that they are given the opportunity as part of the regular employee survey, the “Stimmungsbarometer”, to express their opinion and highlight potential improvements. Some 36,110 employees took part in the AUDI AG “Stimmungsbarometer” in 2022. The results are presented in the individual organizational units and discussed with the employees. 
  
• Employment and working conditions in the supply chain are examined, for example, on the basis of the Sustainability Rating introduced in 2019. Guidelines and policies, such as the Audi Code of Conduct or various works agreements regulate the employment and working conditions in principle. For example, the “Hybrid Working” works agreement came into force at AUDI AG in 2022, which paves the way to a flexible working world.
  
• The measures taken at AUDI AG are examined on the basis of surveys and various key figures.
  

• See Audi Report 2022 page 123 ff.

All part- and full-time employees of AUDI AG subject to collective bargaining agreements are offered a variety of benefits including, for example, retirement benefits, an entitlement to parental leave and medical benefits.

• See Audi Report 2022 page 123 ff.

• The relationship between employees and the company is a decisive factor for employee retention, which in turn has a positive impact on productivity, customer service and sales revenue as well as innovation capability, readiness to change and company image. Internal communication of operational changes also determines culture at the workplace and is an important indicator of transparent collaboration.
  
• Audi is also not immune to the risk that employees will perceive working conditions as unattractive or may no longer want to work in the company due to negative experiences. This could lead to loss of personnel from the company or strikes and therefore production stoppages.
  
• To counteract potential risks, Audi is implementing a series of measures aimed at employee retention and creating a positive working culture, such as the offer of in-company training programs. The measures are examined in detail, for instance, through regular employee surveys. Distinctions such as the Top Employer Award 2022 confirm the effectiveness of the measures. The Audi Works Council also plays an active role in shaping the future at Audi. For example, all works agreements are reached jointly with the employee representatives at AUDI AG. The latter also oversee compliance with applicable legislation, directives, accident prevention regulations, wage agreements and works agreements reached in favor of the employees.
  

In the event of operational changes, the company undertakes to inform the employees of these in a timely manner. Besides statutory obligations, which are complied with in full, arrangements in company agreements also apply.

• Occupational health and safety are an entrepreneurial duty under labor protection law. Prevention of work-related accidents and illnesses by providing a safe and healthy working environment as well as maintenance, promotion and support for restoring health are important elements of sustainable corporate governance. A company cannot be successful if its employees are not high performing and healthy.
  
• This is especially true of Audi as a manufacturing, globally operating industrial company. In terms of corporate goals, such as sustainability and employer attractiveness, a safe and healthy working environment – as is also expected by employees – is an important target.
  
• Audi guarantees occupational health and safety in the context of the applicable national regulations and on the basis of the company’s occupational health and safety policy. This is firmly anchored in different obligations such as the Code of Conduct and specific works agreements and working arrangements.
  These works agreements should, among other things, contribute to:
  
  • Avoiding work-related health hazards at Audi
    
  • Supporting the physical and mental health of employees through properly designed and organized work processes and empowering and motivating employees to address their own health in a responsible way, and
    
  • Considering occupational health and safety aspects at all times in corporate development
    
• As early as 2005, the company and the entire Works Council defined important foundations for promoting the health and safety of employees with the company agreement “Audi’s Future - Performance, Success, Sharing.”
  The following measures were introduced in this context, for example:
  
  • Age- and health-appropriate work structuring
  • Acute and occupational health care
  • Audi Checkup, promotion of health and fitness, occupational health medicals/suitability examinations
  • Health-promoting and safe working conditions
  • Assessment of mental health hazards
  • Performance of risk assessments
  • Training and web based training in the area of occupational safety
• Counseling, testing and vaccination services were also made available to employees in the plants during the coronavirus pandemic.
  
• Major KPIs are subject to a continuous review process. For example, the prevention objectives of health protection (e.g., attendance rate) and occupational safety-related key indicators (e.g., accident frequency index) are monitored regularly and measures developed where necessary.
• Ensuring the involvement of different stakeholders is an important factor for efficiently and effectively fulfilling the requirements for occupational health and safety. At Audi, for instance, this means that the Works Council, management, HR and the employees are involved in the continuous enhancement of the company’s health protection and occupational safety standard.
  

Comprehensive health management and an integrated occupational safety system are two of the ways in which Audi seeks to minimize work-related accidents and improve the health resources of its employees, while also promoting their physical and mental performance. Group-wide standards are helpful in this regard. For all day-today operations, the company and Works Council representatives have developed measures to prevent accidents and damage to health as well as to design safe processes, equipment and vehicle components. The Board of Management bears overall responsibility for compliance with the statutory regulations on occupational health and safety. Furthermore, each operations leader is responsible for occupational safety in their supervisory and functional area. This is also laid down in a works agreement on occupational safety that covers all employees of AUDI AG.

Comprehensive risk assessments and regular workplace inspections, including an evaluation, are part of the basic repertoire in the daily work routine at Audi in order to prevent accidents and health impairments. In general, employees are to notify their manager immediately of any hazards or defects and flaws in safety systems and work equipment if they are not able to resolve them themselves. The results of the risk assessments, workplace inspections and the investigation of incidents are continuously integrated into the improvement of the level of occupational health and safety at Audi.

Comprehensive health management at Audi ensures that employees have access to high-quality occupational health services. In the case of activities that are potentially hazardous to human health, for instance, occupational health medicals and suitability examinations are offered.

Members of the Works Council and/or employees are represented in committees and working groups. Additionally, the Works Council exercises its rights in accordance with the Labor Management Relations Act and organizes itself by location into its own committees on occupational health and safety and environmental protection.

To guarantee that all aspects of occupational health and safety are observed, Audi offers a wide range of training courses for various employees in order to prevent potential hazards. For example, there are training courses for new employees, group leaders or employees who must work with critical machinery.

The company offers a number of programs to promote the health of its workforce. Many of the activities now take place digitally – with the advantage that employees at the sites can participate and access is less complicated.

For all day-to-day operations, the company and Works Council representatives have developed measures to prevent accidents and damage to health as well as to design safe processes, equipment and vehicle components. Clear requirements have been defined for external firms that work in the operational areas of Audi sites. These requirements include operational regulations, instructions and prohibitions, as well as processes that must be strictly followed in the interest of occupational health and safety, fire safety and environmental protection.

Occupational health and safety measures apply to all employees of AUDI AG.

• See Audi Report 2022 page 123 ff.

For reasons of data privacy, we cannot publish any key figures related to work-related ill health.

• Training and education are extremely important in general and play a central role especially in the transformation that is currently under way in the automotive industry. The goal is to continually enhance the knowledge, skills and abilities of the employees in their individual fields of work and in view of current needs and in this way also counteract the skills shortage. Training and education opportunities not only have a positive effect on the company and the employees, but also on the products of the company in question. This also impacts Audi.
  
• AUDI AG therefore offers a broad range of training and education programs. These can be divided into four main areas: digitalization, company, technologies and product. In addition, platforms are available, such as the internal job portal, and various advisory services, which help with training employees.
  
• These training programs are regulated, for instance, in the “Training” works agreement. This takes account of the lifelong learning concept, which aims to take account of the employability of all employees and therefore job security.
  
• Training and education measures are reviewed on the basis of various key figures (e.g., training budget in EUR). This is based on a regular strategy and target definition process in which progress is tracked and goals are adapted, if necessary, to take account of corporate strategy.
  
• Audi benefits in relation to know-how transfer and diversity on the one hand through exchanges in the Group and in internal training centers. On the other hand, however, strong external partners and cooperations are also needed, such as with the THI university of applied sciences (Technische Hochschule Ingolstadt).
  

• See Audi Report 2022 page 123 ff.

AUDI AG offers a variety of measures aimed at upgrading employee skills and providing transition assistance, including, on the one hand, company qualification and training, private professional development and educational consultation. On the other hand, the company also offers partial retirement and time-asset exemptions, for example.

Taking equal opportunity and equal treatment into account, the disciplinary managers/supervisors conduct an annual appraisal meeting for all employees of AUDI AG with variable performance-based pay as well as for non-pay-scale employees.

• Diversity & inclusion form the basis in a corporate context for fair, respectful and cooperative partnership. The benefit of this at the workplace is enhanced creativity within teams and the ability to find a broad range of solutions for a specific problem.
  
• Disregard for this topic would lead to Audi potential, as described above, remaining unutilized. For this reason, Audi has set itself the goal of increasing the percentage of women at different management levels. Audi demonstrates its commitment internally and externally, both financially and in the form of factual contributions to the social debate on diversity and inclusion, which takes account of the principle of equality and goes hand in hand with defending human rights.
  
• The topic of diversity and equal opportunity is regulated by AUDI AG through the Audi Code of Conduct, a joint declaration on “inclusion” in the Volkswagen Group and a corporate policy. The latter contains specific measures for implementing diversity and inclusion in the organization and the corporate processes. The policy aims to protect the company and its employees from (conscious/unconscious) violations of the General Equal Treatment Act (Allgemeines Gleichbehandlungsgesetz), to safeguard the image of AUDI AG as an inclusive company and to enshrine the responsibilities within the diversity measures described in the policy.
  
• A dedicated “Diversity & Inclusion” functional unit has existed since March 2017 in the Human Resources and Organization division. The employees are a central point of contact. Their tasks include advising the specialist areas, superiors, committees and work groups. Awareness among employees of the opportunities and risks that diversity produces is also to be further developed through communication and training.
  
• The Diversity & Inclusion department provides all superiors with a Diversity Report on a quarterly basis which, among other topics, highlights the targets set and the current status concerning the proportion of women. The level of target achievement in relation to the proportion of women and potential measures are discussed regularly at Board of Management and also direct reporting level. Beyond the legal obligation, AUDI AG has defined other diversity key figures for the proportion of women at different levels (e.g., talent development) for control purposes. At an international level also, targets for the proportion of women in the Progressive brand group have also been adopted as internal indicators.
  

• See Audi Report 2022 page 123 ff.

Through collective bargaining agreements involving the unions and management, AUDI AG undertakes to ensure that part-time and full-time employees receive equitable and fair pay; the activity alone determines remuneration.

• See Audi Report 2022 page 93 ff.

• See Audi Report 2022 page 93 ff.

• See Audi Report 2022 page 93 ff.

• See Audi Report 2022 page 68 ff.
  

Audi’s commitment to quality is based also and especially on social change, customer requirements, statutory and regulatory requirements as well as the binding internal Code of Conduct. All divisions formulate their quality requirements in goals, control these independently based on key figures, are subject to independent controls and contribute to the achievement of corporate goals. Audi attaches particular importance to producing high-quality and safe vehicles. All product and service categories are reviewed regarding their impact on health and safety before they are delivered to customers. And it continues to keep an eye on its products even after they have been delivered to customers – in line with product monitoring obligations. On the request of the Board of Management, the Product Safety Committee (APS) examines topic-related reports for delivered vehicles and products and initiates measures if requirements for the necessary product safety or regulatory conformity are not met. Likewise, the APS handles responses to inquiries from authorities and consumer protection associations in the area of product safety and conformity when vehicles and products already on the market are affected.

In addition to interfaces to the Environmental Compliance Management System (ECMS), Product Compliance Management System (PCMS) and the Committee for Product Safety (APS), the interface to the Compliance Management System (CMS) should also be highlighted, in particular, in terms of continuous development and improvement. Goals in this respect include exchanging information on process weaknesses, initiating improvement measures when necessary and therefore minimizing compliance risks related to product safety and product conformity. In 2020, Audi began establishing product integrity and the Product Compliance Management System (PCMS) as a regulatory framework for ensuring product compliance in the company. After starting regular operations in 2021, the focus was on the development of the PCMS in 2022. Every employee plays their part in ensuring that product compliance risks are minimized by complying with regulations in Corporate Policy U_059. On the basis of Corporate Policy U_002, Audi also monitors its products after they have been marketed. If this results in indications of potential deviations in the required product safety or conformity, the APS sees to the requisite clarification of facts and, if necessary, initiates necessary measures in coordination with the relevant national government agencies where applicable. This includes any necessary product corrections. For reasons of confidentiality, no specific key figures can be reported.

• See Audi Report 2022 page 71 f.
  

As in the previous year, there were no substantiated complaints concerning breaches of customer privacy in 2022.

• www.audi.com/en/innovation/future-technology/concept-cars.html
  

• See Audi Report 2022 page 19

• www.audi.com/en/company/sustainability/stakeholder-management.html

• www.audi.com/en/company/sustainability/core-topics/employees-and-society/corporate-citizenship.html