In the context of climate change as an indirect driver of change in the automotive industry, Volkswagen China is accelerating its electric mobility strategy while further promoting green production through a number of initiatives, building a sustainable supply chain, and steadily advancing towards the goal of achieving carbon neutrality by 2050.
"The place of 1378 small islands west of Sri Lanka." In the writings of the Greek astronomer Ptolemy in the second century, this group of coral islands in a paradise is mentioned for the first time. Famous for its blue sky, ocean and sandy beaches, the Maldives' ever-changing climate makes it a paradise and holiday destination in the eyes of the world. However, as warming caused sea levels to rise, the country known as the "pearl of the Indian Ocean" will cease to exist after a century.
This stems from the intensification of the greenhouse effect, which has long aroused global vigilance. From the United Nations Framework Convention on Climate Change and the Kyoto Protocol at the end of the 20th century to the Paris Agreement in the early years, to the carbon neutrality initiative at the 2019 United Nations Climate Action Summit, it has all been born for this purpose. In September 2020, China released a "double carbon strategy" that plans to peak carbon by 2030 and achieve carbon neutrality by 2060.
When reducing carbon emissions becomes a top priority, the automotive industry is seen as a key part of it. In recent years, with the continuous introduction and improvement of many policies such as subsidies and double credits for new energy vehicles, the new energy automobile industry, especially the pure electric vehicle industry, has been vigorously supported. In this context, it is urgent for traditional car companies to realize electrification/electrification transformation, and at the same time, there are many new car manufacturers entering the game, and the market competition is becoming more and more intense.
It is obvious that the carbon neutrality strategy promotes the development and growth of the pure electric vehicle industry, and the latter can also feed back to promote the landing of the former. No one can be left alone, and Volkswagen China has chosen to be at the forefront.
【Pragmatic】
In fact, China is still in a coal- and gas-fired power generation structure, which will generate high carbon emissions. It is precisely for this reason that in the eyes of the outside world, pure electric vehicles that use the above production methods as a source of electricity are actually not environmentally friendly.
However, Volkswagen China has long had countermeasures. Mr. Ingle, Executive Vice President, Head of Components, Logistics and Quality Assurance, said, "Energy plays a vital role in automotive production, so we will use renewable electricity as one of the key ways to reduce the overall carbon footprint of our production. ”
Action is the best way to respond to the doubts of the outside world.
At present, Volkswagen Group's two MEB factories in Anting and Foshan have achieved 100% renewable electricity through distributed photovoltaics, direct purchase of electricity, renewable power certificates, etc., and reduced production energy consumption through a variety of energy-saving equipment. The latest Volkswagen Anhui MEB plant plans to use renewable electricity from the start of production, while taking a series of energy-saving measures to reduce overall carbon emissions.
Among them, the deployment of distributed photovoltaics is regarded as an important way to achieve renewable electricity. According to the plan, in 2022, the installed photovoltaic power generation capacity of Volkswagen Group's plants in China will reach 200 MW, and its power generation is expected to account for about 10% of the total electricity consumption of all the Group's factories in China. "Reduce the carbon footprint of each vehicle over its entire life cycle by 30% compared to 2018 by 2030."
It is worth noting that Volkswagen China is increasing the launch of pure electric products.
Up to now, based on the MEB platform, five models of the ID.series have been launched, including two MODELS of ID.4, two models of ID.6 and ID.3; Volkswagen Anhui's MEB platform models are scheduled to start production in 2023. According to Volkswagen's "2030 NEW AUTO" strategy, Volkswagen Anhui will also become a localization production base for the mechatronicS SSP platform, and will start producing pure electric vehicles in 2026. In addition, the PPE project cooperated by Audi and FAW is also in a state of orderly advancement.
According to the plan, by 2025, Volkswagen Group will sell 1.5 million new energy vehicles in China, including 15 MEB models that have been localized in China; by 2030, pure electric vehicles will account for more than 50% of sales in the Chinese market.
【Traceability and Governance】
If reducing the carbon footprint of the vehicle in production is a pragmatic move by Volkswagen China, strengthening the sustainable management of the supply chain and promoting close cooperation with suppliers and partners are the root causes.
"By 2030, the Group's suppliers of fuel vehicles and electric vehicles will use 100% renewable electricity." Under the consultation of many parties, the arrival of the roadmap for the use of renewable electricity has pointed out the direction for Volkswagen China. It is understood that more than 200 suppliers have signed agreements with Volkswagen China, promising to gradually switch to renewable electricity.
It should be noted that Volkswagen Anhui has set higher targets in the battery supply chain. Its first new energy model will be 100% renewable electricity production from the second half of 2023, seven years ahead of the entire supply chain goal of using renewable electricity entirely by 2030.
Not only that, in order to strengthen the management of the sustainable development of the procurement system, Volkswagen China has also established a sustainability performance rating. As a mandatory rating strategy that targets suppliers from multiple dimensions such as work environment, occupational health and safety, by the end of 2021, it has covered 1,050 Chinese suppliers, and electric vehicle production suppliers have been included in the rating system. Among them, all more than 200 suppliers of Volkswagen's first new energy model in Anhui have received positive ratings.
The procurement of raw materials for power batteries and the recycling of waste batteries are also taken into account.
As we all know, the power battery as one of the three major parts of electric vehicles, its decommissioning, scrap will cause great pollution to the environment, some data pointed out that waste batteries in the environment to achieve natural degradation takes at least a hundred years. In this regard, the Volkswagen Group announced at the first "Power Day" conference held earlier that it will adopt standard batteries implanted in intelligent technology in the future, and create a closed-loop management system for raw material recycling, and remanufacturing by achieving a maximum recovery rate of 90% for old batteries.
It is undeniable that the above-mentioned sustainable development initiatives have received a positive response from suppliers. Mr. Mingjie Pei, Executive Vice President and Head of Purchasing Department, Volkswagen Group China, said: "Thanks to the Group's sustainable supply chain management initiatives, suppliers' awareness of the importance of sustainable development and carbon emission reduction has increased significantly. ”
As green procurement moves from a commercial definition to a daily action, several of Volkswagen China's Tier 1 suppliers have now set ambitious targets – halving production-related carbon emissions by 2030 and becoming fully climate neutral for all emissions by 2040.
Under the background of carbon neutrality, those who have the courage to take responsibility have their own beliefs and steadily promote carbon emission reduction in production and supply chains, which shows the determination of Volkswagen China.
At present, the automotive industry is in a period of great change, and Volkswagen China is advancing with the times with its active strategic deployment, and it has always been at the forefront of the industry in addressing climate change and practicing corporate social responsibility.