Economic activities of the Volkswagen Group
Our regenerate+ Group sustainability strategy is enshrined in the Elevate Sustainability imperative of “The Group Strategy – Mobility for Generations”. The vision we are pursuing with regenerate+ is to become a mobility provider with positive added value for nature and society. In this context, we pay particular attention to the use of resources and the emissions of our product portfolio, as well as those of our sites. We are committed to the Paris Climate Agreement. We aim to achieve net carbon neutrality by 2050.
The Volkswagen Group’s activities in its vehicle-related business with passenger cars, light commercial vehicles, trucks, buses and motorcycles cover the development, production and sale of vehicles and extend to our financial services and other vehicle-related products and services. Activities in these areas are suited under the EU Taxonomy to making a substantial contribution to the environmental objective of climate change mitigation by increasing clean or climate-neutral mobility.
The Volkswagen Group’s activities in the Power Engineering Business Area will no longer be disclosed separately from the 2025 financial year onwards due to the newly introduced materiality thresholds.
An analysis of our economic activities in the context of the EU Taxonomy has not revealed any activities that contribute specifically to one of the other five environmental objectives.
The table below sets out the allocation of our activities in the vehicle-related business to the economic activities listed in the EU Taxonomy under the environmental objective of climate change mitigation. Changes may be made to the economic activities in future as the rules around the EU Taxonomy evolve dynamically.
Economic activity in accordance with the EU Taxonomy |
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Description of economic activity |
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3.3 Manufacture of low-carbon technologies for transport |
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Manufacture, repair, maintenance, retrofitting, repurposing and upgrade of low-carbon vehicles, rolling stock and vessels. |
3.18 Manufacture of automotive and mobility components |
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Manufacture, repair, maintenance, retrofitting, repurposing and upgrade of automotive and mobility systems and components that are essential for delivering and improving the environmental performance of the vehicle. |
Economic activities in vehicle-related business
Economic activity 3.3 Manufacture of low-carbon technologies for transport
We allocate all activities in our vehicle-related business associated with the development, production, sale (including financial services), operation and servicing of vehicles to this economic activity. This includes all passenger cars, light commercial vehicles, trucks, buses and motorcycles manufactured by us, irrespective of their powertrain technology, and also includes genuine parts.
In our vehicle-related business, we have detailed the vehicles manufactured by us by model and powertrain technology and analyzed the CO2 emissions associated with them in accordance with the current regulations. In this way, we have identified those vehicles among all of our taxonomy-eligible vehicles that meet the screening criteria and with which the substantial contribution to climate change mitigation is measured. These include all of the Volkswagen Group’s all-electric vehicles (BEVs). Until December 31, 2025, they also included passenger cars and light commercial vehicles with CO2 emissions of less than 50 g/km in accordance with the WLTP. This encompasses some of our plug-in hybrids.
Economic activity 3.18 Manufacture of automotive and mobility components
The components that play a key role in reducing greenhouse gas emissions are reported in this economic activity. To this activity we allocate the sale to third parties of motors and powertrains produced by us for all-electric vehicles; this primarily comprises the sale of these components to our Chinese joint ventures.
At this stage, other activities that are directly associated with the primary vehicle-related business and that in our view should also be allocated to these economic activities have not yet been included or have been interpreted as not yet being taxonomy-eligible. This is because, as the rules of the EU Taxonomy currently stand, it is still unclear where to record them in accordance with the EU Taxonomy. These activities particularly include the sale of additional engines and powertrains, parts deliveries, the sale of non-Group products, and production under license by third parties. Based on current assumptions, hedging transactions and individual activities, that we present primarily under other sales revenue in the consolidated financial statements, cannot be classified as economic activities under the EU Taxonomy, and we have therefore initially classified them as not being taxonomy-eligible.