How can the automotive industry contribute to reducing carbon emissions? Electric vehicles are a way for everyone to see, but as a company that has always been at the forefront of addressing climate change and fulfilling its corporate social responsibility, Volkswagen Group China has done more and more. In 2021, while accelerating the strategy of electric mobility, Volkswagen China is also actively promoting green production and building a sustainable supply system, and steadily advancing towards the goal of achieving carbon neutrality by 2050 through sustainable development of the whole value chain.
In the past two years, volkswagen group's electrification strategy in China has suddenly accelerated. The ID.4 series, ID.6 series and ID.3 based on the MEB dedicated electric vehicle platform have been successively launched in the Chinese market and have gradually won consumer recognition. According to the latest sales data, the number of Volkswagen ID. series models delivered in China in November has exceeded 14,000 units.
In terms of providing consumers with more electrified models and helping low-carbon travel, Volkswagen China's achievements are obvious to all, but in fact, in the field of manufacturing that is not familiar to the public, Volkswagen China is also sparing no effort to promote the "decarbonization" work, which further highlights the sense of responsibility and mission of this veteran car company.
At its latest ANHUI MEB plant, Volkswagen China has taken a number of energy-saving measures, including the use of steam floor heating in office areas and the use of low-energy production equipment. The new plant plans to use renewable electricity from the start of production, while taking a series of energy-saving measures to reduce overall carbon emissions; at two MEB plants in Anting and Foshan, Volkswagen China has achieved 100% renewable power coverage, and on this basis, it has further reduced production energy consumption through a variety of energy-saving equipment.
Ingle, Executive Vice President of Volkswagen Group China and Head of Components, Logistics and Quality Assurance
"Energy plays a vital role in automotive production, so we are using renewable electricity as one of the key ways to reduce the overall carbon footprint of our production sector," said Ingle, Executive Vice President, Parts, Logistics and Quality Assurance, Volkswagen Group China. In 2022, the installed capacity of photovoltaic power generation at our plant in China will reach 200 MW, which is expected to account for about 10% of the total electricity consumption of all the Group's plants in China. ”
The crowd gathered firewood and the flames were high. While committed to its own sustainable development transformation, Volkswagen China has also incorporated thousands of supplier partners into its "carbon reduction" efforts. In the procurement sector, Volkswagen China promotes the use of renewable electricity by promoting suppliers to reduce carbon emissions, while strengthening the sustainable management of the supply chain and promoting the long-term development of the supply chain.
With the joint efforts of all parties, Volkswagen China has worked with domestic partners and suppliers to develop a specific roadmap for the use of renewable electricity – by 2030, Volkswagen China's fuel vehicle and electric vehicle suppliers will use 100% renewable electricity. In 2021, more than 200 suppliers signed agreements with Volkswagen China to gradually switch to renewable electricity.
It is worth mentioning that as Volkswagen's latest electrified model production base in China, Volkswagen Anhui has also set a higher goal in the battery supply chain, and the first new energy model will be 100% renewable electricity production from the second half of 2023, which is seven years ahead of the entire supply chain goal of fully using renewable electricity in 2030.
Volkswagen's Anhui MEB plant plans to use 100% renewable electricity at the beginning of production
At the same time, in terms of raw material procurement, Volkswagen China will also promote the realization of a sustainable supply chain vision by practicing responsible sourcing of battery raw materials, especially the core raw materials nickel, cobalt and manganese, and the use of recycled ingredients from old batteries in the production of new batteries.
As an intuitive basis for measuring the effect of carbon reduction, in 2021, Volkswagen China accelerated the promotion of sustainable development performance rating, and carried out mandatory rating of suppliers' sustainable development management systems and practices from multiple dimensions such as working environment, occupational health and safety. By the end of 2021, the sustainability performance rating has covered 1,050 Chinese suppliers, of which electric vehicle production suppliers are all included in the rating system. In this regard, Volkswagen Anhui has once again become a model – all more than 200 suppliers of Volkswagen Anhui's first new energy model have received positive ratings.
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 sustainability and carbon emission reduction has increased significantly, and we are deeply pleased. Together with our joint venture partners, we are transforming green procurement from a business definition into a day-to-day action. Several Tier 1 suppliers have set ambitious targets, including halving production-related carbon emissions by 2030 and becoming fully climate neutral for all emissions by 2040. We believe that working closely with our suppliers and partners will help us drive sustainable development along the industrial value chain and achieve the Group's goal of being carbon neutral. ”
Bei Mingjie, Executive Vice President of Volkswagen Group China and Head of Purchasing Department
At the "NEW AUTO" strategy conference, which marked the comprehensive transformation of the Volkswagen Group, Volkswagen Group CEO Diess said that it is the mission of the Volkswagen Group to reduce carbon dioxide emissions and ensure the future of personal mobility. By 2030, Volkswagen will reduce the carbon footprint of each vehicle throughout its life cycle by 30 percent. By 2050 at the latest, Volkswagen's global operations will be carbon neutral.
There is no doubt that the Chinese market, as the most important regional market of the Volkswagen Group in the world, will play a major role in the "NEW AUTO" strategy. Volkswagen China will not only contribute more products to the Volkswagen Group's global electric mobility strategy, but also contribute to the Group's carbon neutrality strategy in the whole value chain such as procurement and production.
Text/Yang Zheng
Editor/Chen Zhengzhong