2013 Corporate Social Responsibility Report

AT HOME IN AMERICA 2013 CORPORATE SOCIAL RESPONSIBILITY REPORT

Volkswagen Group of America has been part of American culture since the first Beetle arrived more than six decades ago. Since that time, we have grown into a family of iconic brands that includes Audi, Bentley, Bugatti and Lamborghini. Across those brands, more Americans are buying our vehicles today than at any other point in our history, and our financial arm, VW Credit, Inc., is providing new financing to record numbers of American consumers. The growth and momentum Volkswagen Group of America has achieved makes it clear that we’re more At Home in America now than ever before. Today, we continue to deepen our American roots through investments in our people, facilities and products. In fact, we’ve invested more than $4 billion in the North American market since 2008, including building the only platinum LEED-certified plant in the world in Chattanooga, Tenn. Building on this foundation, we are now entering the next phase of our long-term growth plans with more than $7 billion earmarked for investments in North America by 2018. As a family of brands and businesses, Volkswagen Group of America is unified by much more than our dedication to building great cars. We are unified by a shared mission and commitment to putting our engineering expertise, innovation and vision to work for the greater good, to help improve our communities and solve the sustainability challenges of the future. We also care deeply about our employees, partners and the places where we’ve made ourselves at home. Corporate giving and involvement in our communities is deeply rooted in our culture, and we believe that vibrant public-private partnerships are critical to a strong, sustainable economic future. In 2013 alone, Volkswagen Group of America donated nearly $10 million in funding and in-kind donations to organizations across the country, and we’ve continued our commitment of more than $7 million to support education programs in Tennessee and Virginia. Within the pages of this report, you’ll find stories of how we’ve been deepening our roots in America through our commitment to being a good partner on the road and in the communities we serve making us At Home in America for years to come.

Michael Horn President and CEO, Volkswagen Group of America, Inc.

ta b l e o f content s Volkswagen Chattanooga The World’s Most Sustainable Automotive Manufacturing Facility...... 2

Environmental Sustainability.................................................... 5 Serving Our Communities........................................................ 13 Promoting a Diverse and Inclusive Workplace....................... 23 Global Commitment to Social Responsibility........................ 26 Today and Tomorrow................................................................ 29

Volkswagen Group of America Operation Statistics* Nearly 6,000 employees More than 1,000 new hires since 2011 More than 20,000 dealer team members

992 dealer locations in all 50 states 29 corporate/subsidiary locations *As of January 2014

VOLKSWAGEN CHATTANOOGA THE WORLD’S MOST SUSTAINABLE AUTOMOTIVE MANUFACTURING FACILITY HOME OF THE AWARD-WINNING VOLKSWAGEN PASSAT

LED LIGHTING 262,500 kWh

$1 BILLION INVESTMENT in the local economy

720,000 KILOWATTS SAVED ANNUALLY due to insulation made of recycled minerals and rock wool

saved annually

68%

LARGEST SOLAR PARK IN TENNESSEE 33,000

solar panels on

less energy used due to LED lighting

66 ACRES produces

WETLANDS

13.1 GIGAWATT-hours

surrounding the plant were established to create natural animal and plant habitats

of electricity each year – enough to power

1,200 HOMES

300,000th CAR

annually

produced by plant in October 2013

2,500 DIRECT PLANT JOBS 12,400 FULL-TIME JOBS RAIN WATER COLLECTION provides

700,000

toilet flushes a year

COOLS

welding machines

6 MILLION GALLONS of water saved in paint shop from dry scrubber tool

created at Volkswagen, at suppliers and in the economy

$643.1 MILLION

12 MILLION KILOWATT-HOURS

HYDRO-ELECTRIC DAM provides green power

of green energy generated annually from the on-site solar park, supplying 12% of the plant’s energy use

in annual income created

SUPPORTING ENVIRONMENTAL SUSTAINABILITY IN THE COMMUNITY TAKE ROOT

annual tree-planting initiative

TRUST FOR PUBLIC LAND initiative to acquire threatened land and preserve it for public use

Awarded by the EPA

IMPACT AWARD Awarded by the Tennessee Minority Supplier Development Council PROTECTED

PROTECTED

CLEAN AND GREEN

downtown Chattanooga and surrounding neighborhood clean-up program

GREEN POWER LEADERSHIP AWARD

CORPORATION OF THE YEAR Awarded by the Chattanooga chapter of the National Urban League

At home in America and around the world, Volkswagen Group places environmental sustainability at the core of our operating philosophy. We don’t just talk about it, we take action, finding inventive ways to be responsible in everything we do – and everyone, including our employees, suppliers and sales partners, is equally committed to ongoing improvements and innovations. As a result, we are on our way toward our goal of becoming the world’s most environmentally sustainable automaker by 2018.

Environmental Sustainability

environmental sustainability

As part of our commitment to the environment, we ensure that all new facilities are built to the highest environmental standards. To date, several of our buildings around the country have been recognized by the U.S. Green Building Council and certified as Leadership in Energy & Environmental Design (LEED) facilities.

, Va. rters, Herndon U.S. Headqua Plant, Chattanooga Volkswagen . nn Te a, Chattanoog Academy, Volkswagen Tenn. a, og no ta at Ch gional Southe as t Re enter, C n io ut ib D is tr Tenn . y, nt ou C Ro ane lifornia, Test Center Ca . Oxnard, Calif tory, search Labora Electronics Re . Belmont, Calif

at home in america: 2013 CORPORATE SOCIAL RESPONSIBILITY REPORT

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»» Volkswagen teamed up with the Surfrider Foundation to raise awareness about beach preservation, clean water and coastal ecosystem protection and promoted the cause through the Volkswagen brand’s support of Discovery Channel’s Shark Week. We even got Leonardo DiCaprio hooked on our efforts in 2013, tweeting about Volkswagen’s donation to his more than 7 million followers.

»» Audi of America opened Audi Pacific, the largest Audi showroom in the United States, in Torrance, Calif. It is the first Audi dealership to be LEED Gold certified, incorporating a stateof-the-art design with environmental technology to improve energy efficiency, reduce water usage, and promote the reuse and recycling of materials and waste.

»» Volkswagen is encouraging eco-friendly behavior by partnering with People for Bikes, the United States’ leading advocacy organization for biking, to support development of bikefriendly communities and create a cleaner environment.

»» Through VW Credit, Inc., we’ve introduced paperless invoicing, which benefits the environment while adding extra conveniences for customers making online payments.

Environmentally Sustainable Manufacturing Our manufacturing facility in Chattanooga, Tenn., serves as a model for increasing energy efficiency and reducing emissions, water and materials usage, and waste for Volkswagen plants the world over. Recognized by the U.S. Green Building Council as “the world’s greenest auto plant” upon its opening in 2011, Volkswagen Chattanooga is the first and only car factory worldwide with a LEED Platinum certification. In 2013, the U.S. Environmental Protection Agency gave our Chattanooga plant a Green Power Leadership Award – making us one of only four organizations nationwide to receive the award for the on-site generation of green power. The Chattanooga plant generates more than 13 million kilowatt-hours of green power annually from an on-site solar energy system, which opened in January 2013.


As an automotive manufacturer, Volkswagen Group of America is committed to low-consumption, low-emission powertrains for our vehicles and our energy-efficient production facilities. But we’re also promoting environmental sustainability in America in some less-obvious ways. Here are just a few examples:

The Chattanooga facility is the manufacturing home for the Passat TDI® (Turbo Direct Injection), the only clean diesel option in its market segment. The Passat TDI delivers an EPA-estimated 43 miles per gallon (mpg) on the highway with the manual transmission, giving a range of nearly 800 miles. The Passat TDI set the world record for the lowest fuel consumption in the lower 48 U.S. states for a non-hybrid car, according to the 2013 GUINNESS WORLD RECORDS®. The Passat TDI beat the hybrid vehicle record of 64.6 mpg by more than 13 mpg.

Think Blue in America: A Holistic Approach to Sustainability

the chattanooga plant generates more than 13 million kilowatt-hours of green power annually.

Around the globe, the Volkswagen brand has been encouraging customers and employees to Think Blue – a holistic approach to sustainability that encompasses three main areas:

That annual amount:

»» Blue Mobility – becoming the world’s most ecologically sustainable auto manufacturer. »» Blue Behavior – tips and advice for everyday life. »» Blue Projects – initiatives to promote environmental and social sustainability. Since Think Blue launched in the United States in 2011, it has become the umbrella mission statement for all of Volkswagen’s environmental activities and efforts. One way Think Blue has come to life is through a 15-city tour and interactive display that travelled throughout the United States in 2012. The Think Blue tour not only showcased Volkswagen’s fuel efficient product range and manufacturing, but also engaged consumers in interactive games and activities that reinforce individual action and eco-conscious behavior.

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WWW.VOLKSWAGENGROUPAMERICA.COM

Creates the same amount of electricity as about 1,200 American homes annually

Provides enough green power to meet 12.5% of the facility’s electricity use during full production (100% during non-production periods)

Equates to avoiding the carbon dioxide emissions of nearly 2,000 passenger vehicles per year


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Environmentally Sustainable Engineering

Production of raw material Production Production of materials

Transport

pipeline refining

Fuel supply

Recovery of energy and raw materials

At Volkswagen Group of America, we are committed to driving progress through better-engineered, efficient vehicles that don’t sacrifice performance. But it all starts with our vision for making cars greener than ever. We take steps to ensure that every vehicle we manufacture is the best it can be in terms of its environmental properties. We constantly strive to improve the efficiency and economy of our engines, minimize the power consumption of electrical components and reduce the weight of our cars.

Production of components

It’s also important to us to measure how we’re doing. We use Life Cycle Assessments to calculate precisely the impact of a specific vehicle model on the environment at various stages of its life: during manufacturing, while being driven and after it is recycled. manufacturing

service life

maintenance

recycling

TDI: Clean Diesel for Everyone Audi and Volkswagen pioneered TDI® clean diesel engines and today, the Volkswagen Group of America is the market leader in clean diesel. In 2013, Audi and Volkswagen sold more than 100,000 clean diesel cars in the United States. Clean diesel delivers more torque, lower fuel consumption and reduces CO2 emissions compared with equivalent gasoline engines. Volkswagen’s newest and most fuel-efficient TDI Clean Diesel engine will power the 2015 Golf, Beetle, Passat and Jetta starting in the second half of 2014.

CO2-neutral electricity

Fuel cell

Conventional electricity

Battery electric

Fossil fuels

Plug-in hybrid

(liquid, gaseous)

Our corporate objective is to drive toward a CO2-neutral and sustainable mobility

Diesel volume passenger cars 2013

We’re committed to promoting sustainable mobility and environmentally conscious lifestyles in everything we do, and we’re particularly proud of our green cars and our vision for cars of the future. Here are a few examples of how we aim to offer carbon-neutral mobility through our cars.

credits

CO2 neutral and sustainable mobility

CO2-neutral fuels


life cycle assessments

Hybrid Combustion engine

Audi has been at the forefront of clean diesel since the introduction of Audi TDI technology in 2009. Since then, nearly 40,000 Audi TDI vehicles have been sold in the United States, delivering an average of 30 percent better fuel economy and range than gasoline. Continuing our commitment to clean diesel technology and innovative solutions that improve efficiency and driving dynamics, Audi has made a dramatic expansion of TDI technology in the United States for the 2014 model year. Available TDI models include the A6, A7, A8 L, Q5 and Q7, as well as the introduction of the A3 TDI sedan. TFSI® Engine Technology: The Balance of Power and Fuel Efficiency Audi is the first manufacturer in the world to develop Turbocharged Fuel Stratified Injection (TFSI) technology. TFSI combines direct injection with forced induction supercharging or turbocharging. This provides higher power output with greater fuel efficiency and reduced emissions.

Living Responsibly in America: truth in engineering 21% Competitors 79% Volkswagen Group*

*Percentage includes Volkswagen, Audi and Porsche Source: HybridCars.com

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Corporate responsibility has long been a part of the culture of Audi, along with the belief that it is essential to ensure a worthwhile future for generations to come. Therefore, corporate responsibility encompasses fuel-efficient products, resource-efficient production processes, a future-oriented and fair personnel policy, effective involvement in society and responsible business operations. This gives the motto of “Truth in Engineering” -a new dimension that extends far beyond our products, with the ultimate goal being CO2-neutral mobility.


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The Future of Automotive Environmental Sustainability We get excited when we think about what the future holds for sustainable, environmentally responsible cars that are also a pleasure to drive. In late 2013, we brought the Volkswagen XL1, the most fuel-efficient and aerodynamic production car in the world, to our Chattanooga plant for its U.S. debut during the Society of Environmental Journalists’ 23rd Annual Conference. The XL1 offers a glimpse into our present and future eco-mobility capabilities. It emits just 21 g/km of CO2, thanks to its high-tech lightweight design, aerodynamic efficiency and a plug-in hybrid system. It achieves an estimated 200 mpg fuel consumption rating and can cover up to 32 miles as a zero-emissions vehicle in all-electric mode. Alternative Fuels We strongly believe that we must develop alternatives to petroleum-based fuels that still work with the traditional combustion engine. In 2012, we announced partnerships with Solazyme and Amyris, two of the world’s leaders in renewable fuels, to evaluate emissions reductions and demonstrate the performance of TDI Clean Diesel technology when powered by advanced biodiesel and renewable diesel fuel. Amyris converts plant-sourced sugars into renewable hydrocarbons for fuel and chemical applications; Solazyme has developed a technology that harnesses the oil-producing ability of microalgae to develop renewable oil products. Working together, our goal is to advance research on renewable diesel solutions for current and next-generation TDI Clean Diesel applications.

Innovation Labs Electronics Research Laboratory (ERL) The ERL located in Belmont, Calif., represents Volkswagen Group of America’s applied research and development initiatives in North America. With a focus on advanced technology, the ERL’s mission is to develop innovations for future generations of vehicles, working to transfer technologies from many industries into the automotive domain. The ERL was established in August 1998 with three employees and today has grown to become Volkswagen’s largest research facility outside of Germany, employing more than 100 engineers, social scientists, researchers and product designers. The ERL’s eMobility team is working on wireless charging and predictive charge management algorithms. With local companies, the ERL collaborates on cloud-based services and renewable energy sources for electric vehicles.


Hybrid and Electric: The Future is Now On Earth Day 2013, Kelley Blue Book’s KBB.com named the Volkswagen Jetta Hybrid one of its 10 Best Green Cars of 2013. This vehicle joins other Volkswagen hybrid options, such as the Touareg Hybrid, in our arsenal of eco-friendly, fun-to-drive cars. We’re also going electric through our pilot testing of the e-Golf Battery Electric Vehicles in select areas of the country, which began in 2012 as we work toward tailoring the car to American drivers’ needs before launching it here in 2014.

Additionally, the ERL has partnered with Stanford University to establish the Volkswagen Automotive Innovation Laboratory (VAIL), a $5 million commitment. Since 2009, VAIL has conducted numerous breakthrough research projects on autonomous transportation, vehicle dynamics, safety and environmental performance. Recently, Volkswagen made an additional investment to expand research into the future of automotive innovation and the development of nextgeneration solutions. Test Center California (TCC) Volkswagen’s TCC is located in Oxnard, Calif., and serves as the Group’s only emission test laboratory in North America. As the largest technical center of its kind for the Volkswagen Group outside of Germany, the TCC plays a pivotal role in the product development food chain, acting as the final stop for many products before they are approved for production. Work at the TCC is focused on powertrain product development, governmental compliance and field quality testing. The TCC has more than 50 engineers and technology experts working in a 65,500-square-foot LEED-certified facility. The building features 1,750 solar panels – each 430 kilowatts – that reduce the facility’s energy costs by one-third.

CO2-neutral mobility depends on the development of sustainable forms of energy that can replace for fossil fuels. Audi AG is working with Joule to develop technology that uses energy from the sun to convert CO2 and non-potable water into liquid fuel. This technology is at the core of Audi’s e-diesel and e-ethanol projects. Audi AG and Joule have built a demonstration facility in New Mexico for these projects. For Audi e-diesel, our teams are working to create a sustainable diesel fuel that is free of sulfur and aromatics, and will work seamlessly with existing Audi TDI Clean Diesel systems. With the Audi e-ethanol project, we are developing a product with the same chemical properties as bioethanol but without the use of biomass. This will be blended with fossil-fuel gasoline at up to 85 percent for vehicles that can use E85 fuel.

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serving our communities

Serving our Communities At Volkswagen Group of America, we are proud to be at home and at work in the United States. We take being a good corporate citizen very seriously, and pledge to do everything we can to invest in and give back to the community. And we know that being a good neighbor is simply the American way. Our people do remarkable work, within our facilities and beyond. We encourage them to take time to give back through our Volunteer Day program, which provides paid time off to get involved in community programs, as well as state and national charitable, service and relief efforts. Our employees bring the passion and energy that makes our organization so successful to their individual volunteering efforts, and we are proud of everything they’ve accomplished to make our world a better place. But that’s not all. At the corporate level and through our brands, we’ve committed significant time and money to aid many charitable and not-for-profit organizations across the country, from the American Red Cross to the Boys and Girls Club of America and the Juvenile Diabetes Research Foundation. As you’ll see on the following pages, we’ve mentored young people, supported veterans, raised awareness for people with disabilities, and provided in-the-moment disaster relief contributions.


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Our impact on our communities is highly visible through our corporate presence and economic contributions to local economies. But the human impact we make is even more important than the financial one. Volkswagen Group of America has a comprehensive approach to philanthropy based on four pillars:

»» »» »» »»

Partners in Education

Beyond Partners in Education, we support education in other ways, too. As a long-time supporter of DC SCORES and its Adopt-A-School program, Volkswagen Group of America encourages underserved students in schools throughout the Washington, D.C., metro area to become physically fit, feel part of a team and express themselves as agents of change. DC SCORES combines after-school creative writing, soccer and service for more than 800 students at 25 schools. Volkswagen Group also supports the DC SCORES Poetry Slam each year, showcasing the talents and work of these students.

Volkswagen Foundation Charitable Contributions Committee Matching Donations Program

Partners in Education The strength of any community depends in large part on how well it educates its young people. That’s why our flagship Partners in Education program is so near and dear to the hearts of everyone at Volkswagen Group of America. We’re not just preparing students for America’s future workforce, we’re helping them realize their full potential. Partners in Education is designed to support students and teachers interested in advanced automotive technology and next-generation automotive engineering. Our programs help students from kindergarten through high school, and even at the college and post-graduate level. Partners in Education began with a five-year, $2.1 million initiative to create a comprehensive education partnership with schools and technical institutions throughout the greater Washington, D.C., area. The program has added a $5.28 million commitment to support students and teachers in Tennessee. Together, we’re making a positive difference in the educational experience of students.

Volkswagen Foundation Because we’re so deeply embedded within our communities, we care deeply when disaster strikes and are committed to helping rebuild communities in need. We formed the Volkswagen


Philanthropy: Committed to our Communities

Foundation to make grants to organizations that specifically provide disaster relief. For instance, in the wake of Hurricane Sandy in 2012, the Volkswagen Foundation donated $500,000 to provide immediate support for the American Red Cross’s relief efforts. Likewise, after the devastating Oklahoma tornadoes in 2013, the Foundation contributed $250,000 to the American Red Cross and Habitat for Humanity. These donations – along with the funds we matched for employee donations to the cause – helped cover the costs of shelter, food, recovery and other assistance to families affected by these storms. Charitable Contributions Committee Employee involvement is at the heart of our philanthropic programs. Our Charitable Contributions Committee, comprised of Volkswagen Group of America employees, works to identify and select community partners and organizations located near our facilities. We focus on helping underserved communities and providing volunteer opportunities for our employees. In 2013, we donated a total of $500,000 to worthy organizations around the United States.

The Excel Institute & Volkswagen Group of america: Educating at-risk youth and adults Through The Excel Institute, Volkswagen Group of America is helping at-risk youth and adults in the Washington, D.C., area to think about their future careers. Our partnership supports some of the most vital, but costly parts of Excel’s curriculum, including computer literacy and one-on-one academic tutoring. Volkswagen and Audi technicians train Excel Institute teachers about new technologies, maintenance and repair. In 2012, Automobili Lamborghini America hosted “Lamborghini Day” at The Excel Institute to give the students hands-on training. The students were able to inspect the Lamborghini’s engines, interiors and exteriors. Volkswagen Group of America is also working with The Excel Institute to develop reciprocal shadowing and has hosted seminar opportunities for employees and students to visit job sites. This support has enabled more than 250 students to participate in The Excel Institute’s Life Skills program – and several graduates have gone on to work for Volkswagen dealerships.

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Philanthropy Across the Group We believe corporate social responsibility is a collective effort, involving every aspect of our business, including each individual brand. Among our brands and locations across America, we make philanthropy a priority by promoting employee volunteerism, making financial and in-kind contributions, and partnering with employees to support causes they personally care about. Across the United States, our employees participate in numerous volunteer and philanthropic efforts in their communities. From the Portland Service Center’s support of The Lambert House and Auburn Hill’s volunteering at Grace Centers of Hope to the ERL’s participation in Bike MS and Herndon’s commitment to the Boys and Girls Club, philanthropy and service is an intrinsic part of who we are as a company. Here’s a snapshot of how we serve the communities in which we work and live, as well as in places in need around the world.

Creating Job Opportunities for Veterans Audi of America launched the “Veterans to Technicians Program” in 2013 to provide job opportunities for skilled former military technicians. The goal of the program, which supports the Veterans Opportunity to Work to Hire Heroes Act passed by Congress in 2011, is to help veterans leaving the armed forces transition back to civilian life by connecting them to Audi-certified service department roles in dealerships across the country. Audi developed this program with CALIBRE, a management and technology services company that helps the U.S. Department of Defense and Department of Veterans Affairs develop transition support policies and programs for veterans and service members leaving the military.


Matching Donations Program Giving back to our communities and supporting individual philanthropic causes is an integral part of the Volkswagen Group of America culture. Our matching donations program allows our employees’ financial contributions to go even further. Volkswagen Group of America will match dollar for dollar up to $5,000 per employee per year designated to the organization of their choice. In 2013, employees donated more than $120,000 to charity.

Volkswagen of America Investing in America’s History Being At Home in America means we care about preserving this nation’s storied history. The National Mall is where our country’s history, politics and culture unite. Volkswagen Group of America has invested $10 million in the Trust for the National Mall’s efforts to restore and improve the National Mall in Washington, D.C. The donation, which will be granted over a five-year period, is designed to help sustain and advance efforts to preserve and protect America’s most visited national park – often considered “America’s Front Yard.” Volkswagen’s $10 million donation is not the first gift from the company for a project on the National Mall. In August 2011, Volkswagen Group of America made a $1 million contribution to the Martin Luther King, Jr. National Memorial Project Foundation for the construction of the memorial.

“At Home” in Haiti: Rebuilding after the 2010 Earthquake Two Volkswagen Group of America employees–Tony Cooke and John Ellefson–traveled to Haiti in 2013 to build 100 homes in just one week alongside other volunteers as part of the Jimmy & Rosalynn Carter Work Project to help victims of Haiti’s devastating 2010 earthquake. The Habitat for Humanity relief effort helped rebuild the town of Léogâne, the epicenter of the quake, making it possible for many families to move from tents and makeshift shelters into concrete and wood houses.

Audi of America Helping People with Intellectual and Developmental Disabilities Audi’s strong social commitment is demonstrated through our continued partnership with Best Buddies International, a nonprofit organization founded by Anthony Kennedy Shriver. The goal of the organization is to raise funds and awareness for people with intellectual and developmental disabilities. Audi has helped Best Buddies raise more than $67 million since 2007 and supports both the Best Buddies Challenge in Washington, D.C., and Best Buddies Jobs of Northern Virginia.

To support Tony and John’s work, the Volkswagen Foundation gave Habitat for Humanity $40,000. Additionally, Tony and John raised $5,000 each for construction supplies and then rolled up their sleeves to build the homes. Their efforts gave earthquake victims new hope, allowing them to plant vegetable gardens and start small businesses in their new living situations. They also have the ability to enroll their children in schools and embrace futures that seemed unimaginable before the new buildings went up.

For four years in a row, Audi of America has served as the Title Sponsor of the Best Buddies Challenge in Washington, D.C. More than 150 Herndon, Va.,-based Volkswagen Group of America employees joined Team Audi for the 2013 Challenge and collectively raised more than $134,000. 16



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We help out in places where we are based, where we work and where our employees live. Here in the U.S.A., we are not just a business partner and employer but also see ourselves as part of society – as a good neighbor and a good corporate citizen. Andrew Stuart Chief Executive Officer and President of VW Credit, Inc.


Helping Children in Need For VW Credit, Inc., helping those in need has become an integral part of our annual meeting. In 2012, more than 130 VW Credit, Inc., employees carved time out during the annual meeting in Phoenix to make bicycles for Native American children living in the Gila River Indian community. For 24 kids ages six to nine, many of whom never had a bike before, these employees opened doors to new possibilities. As one eight-year-old put it, “Is this bike really for me?”


Using Art to Inspire People to Embrace Environmental Sustainability Launched in 2011, Volkswagen’s multi-year cultural and corporate social responsibility partnership with New York’s Museum of Modern Art (MoMA) has provided a platform to highlight our Think Blue holistic sustainability initiative. A key milestone of the partnership is the donation of the “VW Dome 1” in 2012, which houses various artistic programming, lectures and special performances. Following the aftermath of Hurricane Sandy, Volkswagen donated “VW Dome 2,” which served as a temporary geodesic relief and culture dome in Rockaway Beach, N.Y., an area heavily impacted by the storm. “VW Dome 2” later served as a center for cultural exchange and education about the future sustainability of cities. In 2013, Volkswagen and MoMA launched “EXPO 1: New York,” an exhibit that explores the ecological challenges of the early 21st century, and that reflects the fundamental corporate values of Volkswagen Group of America – to take responsibility for our environment and society. VW Credit, Inc. Hands-on Approach to Financial Literacy What better way to teach middle-school students about personal finance than to give them a budget and then ask them to build a life – complete with housing, furniture, food and, of course, a car? VW Credit, Inc., has partnered with Junior Achievement of Greater Washington to help teach teenagers about the economics of life. This partnership includes a high-tech, high-touch Volkswagen Transportation “Storefront” at the Junior Achievement Finance Park. Managed by a team of VW Credit, Inc., volunteers, students use interactive computers to see how far their dollars can go in securing vehicles and which payment plans would work within the confines of their assigned budgets.

Providing Opportunities through Art: Supporting Artists with Disabilities

A Personal Commitment: Working to Erase Illiteracy

Volkswagen Group of America supports VSA, an international, nonprofit organization founded in 1974 by Ambassador Jean Kennedy Smith. Its goal is to create a society where all people with disabilities learn through, participate in and enjoy the arts. This organization is an affiliate of the John F. Kennedy Center for the Performing Arts. Volkswagen Group of America has partnered with VSA since 2001 to recognize these accomplished artists, underscore our own commitment to diversity and inclusion, and support the visual and performing arts. We have provided more than $1 million in funding during the 12-year partnership.

David Bruce has devoted more than 10 years of his life to tackling a major societal issue: illiteracy. Outside of his role as director of human resources for VW Credit, Inc., he serves as vice president of the board of directors for the Loudoun Literacy Council, a private, nonprofit organization in Loudoun County, Va., that teaches adults and children from disadvantaged families to learn to speak, read and write English. Adults who do not have basic literacy skills are twice as likely to be unemployed, have increased chances of relying on public assistance, and are more prone to committing crime.

The fourth annual VSA art exhibition was held at Herndon Headquarters in 2013. The nationally touring exhibition featured the award-winning work of 15 artists ages 16 to 25 who participated in a nationwide competition under the theme of “Sustaining/Creating.” The 2012-2013 exhibition theme aligned with Volkswagen’s Think Blue initiative of environmentally friendly personal mobility.

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Bruce and the 800-plus trained volunteers at the Loudoun Literacy Council make a difference through classroom-style curricula and a book donation program that encourages reading outside of the classroom. Their time and dedication has helped more than 4,000 adults and young people improve their literacy skills. Volkswagen Group of America has also made a donation to help support the Loudoun Literacy Council.


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Our employees are the heart and soul of our company, and we’re proud of the work they do for the company as well as the work they do on their own time to make the world a better place. We support our employees and the contributions they make to our communities by promoting important corporate values: respect for hard work, diversity and inclusion, and social responsibility. We strive to make Volkswagen Group of America a rewarding and meaningful place to work, which is all part of how we make a difference in the communities we call home.

promoting a diverse and inclusive workplace

Promoting a Diverse and Inclusive Workplace

A Commitment to Our Current and Future Employees Our employees are inspired to make meaningful contributions to the world around them in part because we inspire them with meaningful work on the job, too. We celebrate achievement, teamwork and inclusion to establish a healthy and fulfilling workplace environment. Our ultimate vision is to become a company that:

»» Values and respects the contributions of men and women of all backgrounds; »» Embraces diversity of thought as a critical factor in our future success; and »» Substantially reflects the diverse populations of the United States.

Making a Difference: Providing Greater Access to Internships Volkswagen Group of America works with INROADS, an organization that provides internships to students from underserved backgrounds, to offer paid internships to students and connect them with mentors who provide exposure to the cultural and social aspects of working in corporate America. The program provides internships for 10 students in three locations: Chattanooga, Tenn.; Libertyville, Ill.; and Herndon, Va. As a result, students gain real-world work experience and are exposed to potential career opportunities in the automotive industry.


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»» Corporate Commitment Our involvement in and support of communities where we do business, corporate contributions, and sponsorships of community and civil rights organizations.

»» Workplace Climate Diversity awareness training, employee networks, and activities that promote an inclusive work environment.

»» Economic Development Including minority- and women-owned businesses in our dealer and supplier network.

»» Talent Management The recruitment and retention of a multicultural workforce.

»» Leadership Accountability Visible support of corporate diversity initiatives and goals from senior leaders and the executive board.

Becoming a Leader in Diversity and Inclusion At Volkswagen Group of America, our goal is to be recognized as a top company for diversity and inclusion practices. Part of our diversity effort involves partnering with organizations such as the National Urban League and the National Association of Minority Automobile Dealers. Our commitment to diversity and inclusion supports our overall goal to become one of the Fortune 100 Best Companies to Work for in America by 2018, as well as a Top 50 Company for Diversity. Volkswagen Group of America has already received multiple awards and recognition for our efforts, including:

»» First automotive company to sign the National Association of Minority Automobile Dealer’s “15% Formula for Success,” committing to improve the percentage of majority ownership that ethnic minorities have in new car dealerships.

»» 100 percent score on the Human Rights Campaign Corporate Equality Index for the past six years. »» Impact Award from Tennessee Minority Supplier Development Council for 2012 Corporation of the Year.

»» 2012 National Association of Minority Automobile Dealer’s Woman of the Year: Machelle Williams, general manager of Diversity and CSR, Volkswagen Group of America.


We know that Volkswagen Group of America will benefit from diversity through better understanding of and relationships with customers, dealers, employees and business partners. Therefore, diversity is critically important to our employee culture, and our Five Pillars of Corporate Diversity Strategy speak to the value we place on honoring all backgrounds and points of view.

»» Established a robust Supplier Diversity program and achieved the 10 percent target for inclusion To implement this strategy, we established a Corporate Diversity Council. The 25 members of this Council serve as personal diversity champions, advising the organization on key issues. The Council’s charter is to:

»» »» »» »»

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Help set priorities among strategic diversity issues;

of women and ethnic minorities in our supplier network.

»» 52 percent of corporate giving in 2012 was designated to organizations that benefit underserved communities.

Monitor business plans and actions; Identify and report diversity progress and assess results; and Share and implement diversity best practices.

Promoting Life Skills: One Game at a Time

working Together: Team Volksdragon

With 22 participating countries, the Volkswagen Junior Masters is one of the world’s biggest youth soccer tournaments for boys between ages 10 and 12. Through this program, Volkswagen is able to support the community in a way that inspires youth to participate in healthy activity. Junior Masters teaches boys the value of fitness, teamwork and healthy competition. Sixteen teams participated in the 2013 Junior Masters National Finals in Overland Park, Kan. The winning team, SoCal United, will compete in the 2014 International Tournament in Rome. Volkswagen believes that through sport, we are able to educate and socialize children and build a feeling of community and identity.

Our employees often rely on one another like teammates do, but Volkswagen Group of America colleagues recently took the teammate mentality to a new level when they formed a Dragon Boat race team. Team Volksdragon is composed of employees from Audi, Bentley, VW Credit, Inc., and Volkswagen. For 15 weeks, the team trained together to compete in the annual Ritz Carlton Cup in Wolfsburg, Germany. The experience is best summed up by team member Stevi Honaker: “...we worked hard, believed in our team from day one. That is the same philosophy we have at Volkswagen Group of America. We believe in the products we are selling and work hard individually and as a team to achieve our goals and objectives.”



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global commitment to social responsibility

Commitment to social responsibility has long been at the heart of Volkswagen AG’s corporate culture. Globally, Volkswagen supports a broad spectrum of projects that foster social development, culture and education while serving the needs of regional structural development, health promotion, sport and the conservation of nature. The following world map shows you selected projects around the world.

GERMANY - SOUTH

GREAT BRITAIN

Thinking of tomorrow, today, with the Audi “Urban future” initiative

Environment-friendly: The Bentley “Green travel” programme

SPAIN Frugal technology: SEAT ecomotive

GERMANY - NORTH Volkswagen – NABU fuel saving training courses

RUSSIA

SWEDEN

Economic revival in Kaluga

Volkswagen’s Fun Theory

USA - EAST “Green from the start”: The new plant in Chattanooga

USA - WEST

CHINA

The pulse of research: The electronics research lab

GLOBAL

global commitment to social responsibility

GLOBAL COMMITMENT TO SOCIAL RESPONSIBILITY

Most environment-friendly manufacturer in China

Volkswagen is greening up

MEXICO Practical environmental protection on the Popocatepetl

BONAIRE

INDIA

Energy transition on an island paradise using MAN technology

The Škoda Prize promotes artists

JAPAN Volkswagen engages in Business and Biodiversity Initiative

BRAZIL Volkswagen is investing in renewable energies

POLAND Impressive women’s promotion

ARGENTINA Excellent performer: Volkswagen Argentina at UN Global Compact

MALI Development aid in co-operation with Tamat e.V.

CZECH REPUBLIC Top training at Škoda Auto University

ISREAL

SLOVAKIA

Supporting the Hadassah-Neurim youth village

Inventory of flora and fauna

SOUTH AFRICA Offering people a future: The Volkswagen Community Trust

“Audi creativity”: How can a car move without fuel

TURKEY

AUSTRALIA Fuel saving tips, not only for Australia

Volkswagen importer promotes road safety

ETHIOPIA MAN promotes car mechanic training and SOS Children’s Village

ANTARCTICA Volkswagen importer sponsors the first “zero emission” station

Source: KARMA Kommunikationsdesign GbR, Wolfsburg

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today and tomorrow

At HOME IN AMERICA, Today and Tomorrow Throughout this report, you’ve seen that we’ve built a strong presence in the United States, which continues to grow as our investment in North America expands. You’ve seen the way we’ve championed environmentally sustainable approaches to mobility and our operations, proving that we’re “green” both inside and out. You’ve seen how our people care deeply about others, giving back our time and our money to the communities we serve, as well as our belief that diversity and inclusion are imperatives for a successful company. Volkswagen is more At Home in America than ever before, and we couldn’t imagine it any other way. Because when you feel at home, you feel empowered to make the world around you a better place. That’s how we approach our work every day, both here and abroad. We continue to look to the future to identify what more we can do, how we can engineer even more environmentally sustainable cars, how we can more effectively support our communities, and how we can further diversity and inclusion at Volkswagen Group of America. We’re proud to be a good partner on the road and in the communities we serve, and plan to be for years to come.


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By investing in on-site green power, Volkswagen Chattanooga is generating cleaner electricity and reducing harmful carbon pollution, and providing a clear example of an organization thriving on innovation and sustainability. Gina McCarthy Administrator of the Environmental Protection Agency