ESG at Audi Hungaria
ESG (Environment, Social and Governance) provides a framework for objectively evaluating companies’ sustainability performance. The associated parameters show how environmentally friendly and socially committed a company is, how well the company is managed and how it is going to develop in the future. ESG is of strategic importance to us, which is why it is a fundamental component of our Next Level strategy.
ESG IN THE NEXT LEVEL STRATEGY
Audi Hungaria has clearly integrated ESG into its overall corporate strategy. The strategic goal of making a “positive contribution to the world” covers all ESG dimensions and emphasises the future importance of this key subject not only for the company, but also for all responsible managers, while at the same time setting the direction for the resulting management goal agreements and the objectives of the business units. In 2023, Audi Hungaria demonstrated its commitment to numerous ESG activities and launched forward-looking Next Level initiatives in all dimensions of ESG.
ESG@AH = our positive contribution
to the world
At Audi Hungaria, we live our responsibility: towards the environment, our employees, society, our partners and customers. As a result, we are committed to the ESG approach, which fundamentally defines our activities. ESG is deeply rooted in our strategy, which we are continuously following on the path to a more liveable future. Every day, we work hard to reduce our ecological footprint, meet our responsibility to our stakeholders and set new standards in the area of corporate governance. We are on track, and are working tirelessly to ensure a positive impact from Győr to the world.
Michael Breme, Chairman of the Board of Management, Audi Hungaria
Jürgen Rittersberger, Member of the Board of Management for Finance, Legal Affairs and IT, AUDI AG
We are developing Audi into a leading player in sustainable mobility. In this spirit, we not only emphasise the aspect of sustainability with our attractive products, we do all of this with a 360-approach, applying it to the entire value chain. This resulted in the establishment of the 360factory strategy and the introduction of our Mission:Zero environmental protection programme. With its commitment to ESG, Audi Hungaria is one of our trailblazers in this area, contributing greatly to the achievement of our sustainability goals.
Gerd Walker, Member of the Board of Management for Production and Logistics, AUDI AG
Chairman of the Supervisory Board, AUDI HUNGARIA Zrt.
ESG TOP 25 list
Audi Hungaria is among the best!
The sustainability ranking conducted jointly by HVG and the Planet Fanatics' Network in 2023 sought to identify which of the hundred largest companies operating in Hungary are the country’s most responsible in terms of environment, society and corporate governance. Audi Hungaria achieved 14th place as the only automotive industry player to make it into the top 25, thereby taking the gold medal among automotive companies.
Stakeholder survey
The University of Hamburg and Audi Hungaria conducted a joint, comprehensive online survey of nearly 1,000 individuals in order to discover how the various stakeholders evaluate their personal attitudes, the achievement of goals and Audi Hungaria’s contribution to the UN’s Sustainable Development Goals (SDG) in both their personal and professional environments. The questionnaire also covered which KPIs they think are especially important for Audi Hungaria. The survey was carried out anonymously.
Navigating through the evolving landscape of business sustainability and financial performance, we – as a purpose-driven organization always striving to increase our positive impact from Győr to the world – have to highlight the essential role that a broad set of stakeholders plays in our ESG strategies. Our stakeholders bring diverse perspectives and insights, as well as setting expectations that guide us toward creating strategies contributing to our social and ecological ecosystem through commercial activity. We highly appreciate having one-of-a-kind network of strategic experts on this journey. Together with Professor Alexander Bassen from the University of Hamburg, one of the world’s leading experts on ESG, and his team, we conducted an important stakeholder survey and discovered exceptional findings. I personally believe that by actively involving stakeholders in my CFO agenda we enhance our business as a force for good, making a positive environmental and social impact while ensuring our financial performance.
Dr Patrick Heinecke, Member of the Board of Management for Finance, IT, Procurement and Compliance, Audi Hungaria
Prof. Dr Alexander Bassen, Chair of Capital Markets and Management at the University of Hamburg
RESULTS
Four of the five most common important findings in the private sector are clearly related to basic human needs (health, financial security, security of supply, food and water). Respondents see the biggest deficiencies in financial security and health in old age. The quality of their own jobs is extremely important to them: they must be financially attractive, safe and modern. The four following key topics are all related to the sustainability of companies. These include both social (human rights, integrity) and environmental (environmentally friendly production, prudent use of resources) aspects.
Socially caring employer
1. to have a secure job
2. physical and mental health at all ages
3. social and human rights guaranteed by the employer
4. to have a financially attractive job
Caring employer
1. the company has a positive impact on the planet through environmentally friendly production methods that also avoid causing negative environmental effects
2. companies conserve resources
Environment
Audi Hungaria is the largest engine factory in the world, producing more than 1.6 million engines per year, which also places a great responsibility on us. At our site, production is the biggest consumer of energy, and therefore the biggest source of emissions. Over the years, we have consistently reduced our CO2 emissions and now reached CO2-neutrality on balance. However, we still want to achieve more: with a holistic approach, we work every day to make our production and logistics processes even more sustainable.
Robert Buttenhauser, Member of the Board of Management for Powertrain Production, Audi Hungaria
Mission:Zero
As part of AUDI AG’s environmental protection program, priority activities aimed at reducing the environmental footprint of the various sites are taking place in the following four action areas. In addition to reducing its ecological footprint, Audi Hungaria also aims to improve the condition of the wider environment and create a liveable and sustainable future.
Our goal: to achieve net zero
CO2 emissions by 2050.
Our company has been manufacturing cars in the premium segment in Győr for 26 years. Our flexible vehicle production is supported by a number of smart and resource saving solutions, such as the use of dry separation technology in our paint shop. At Audi Hungaria, we recognised the benefits of sustainable energy supply early on: for years, we have been using electricity generated by our on-site solar park and geothermal energy to heat our production halls. We are proud of the positive impact we have on the Audi production network and our environment with our CO₂-neutral on balance production.
Zoltán Les, Member of the Board of Management for Vehicle Production, Audi Hungaria
Recognition for our efforts
Green Award 2023
At the Sustainable World conference held in September 2023, Audi Hungaria
wasawarded within the category ‘Greenest Large Company of the Year’
for its Mission:Zero environmental programme.
Award “Environmental Savings”
In November 2023, Audi Hungaria won the KÖVET Association’s award in the category
“Highest hanging fruits: investments that pay off after more than three years”
for its financially sustainable, environmental friendly waste transportation project
implemented jointly with Büchl Hungaria.
OUR 2023 SUSTAINABILITY ACTIVITIES
Employees
- Road to Mission:Zero idea exchange forum with employee ideas on environmental protection.
- Project on reducing the use of PET bottles to enhance employees’ social consciousness.
- Project1Hour is a group-wide climate protection day featuring climate workshops for Audi employees.
- On-site medicinal and herb gardens + an Audi apiary to protect biodiversity.
- Optimising bus service lines for contracted employees to reduce CO2 emissions and travel costs.
THE NEXT GENERATION
- Audi School environmental protection project days for children, focusing on biodiversity and recycling.
- Biodiversity program: as part of a voluntary nature conservation project day for students participating in dual vocational training at the Audi Academy.
- Interactive class on protecting nature for the ecological school in Győrszentiván.
COMMUNITY
- Audi Social Day: renovating the Győrszentiván educational trail with Audi colleagues.
- Hay bale donations for organisations around Győr.
- Donating used pallets to children’s camps for use in building creative installations.
- Unique donation centre in Hungary, supported by Audi Hungaria.
PRODUCTION
- Transportation of PPE drives via green trains along the Győr-Ingolstadt line.
- Dry separation in the paint shop, resulting in significant energy and water savings + CO2 emissions reductions.
- Pyrolysis for the recycling of waste rubber for the plastics industry.
- Utilisation of 5,000 tonnes of aluminium in 2023 as part of the Aluminium Closed Loop project. High-quality recycling leads to energy savings of approximately 95% compared to primary aluminium production.
- E-trucks for transporting waste, within the Aluminium Closed Loop project leading to significant reduction in CO2 emissions.
NEXT LEVEL INITIATIVES
Photovoltaic system 2.0:
we are expanding one of Europe’s largest rooftop solar parks in two stages. Maximum output expected from the system:
18 MWpeak and 25.900 MWh per year
> The ESG factory of the future, to evaluate how future series production lines for e-engines can be realized with greater consideration of ESG criteria. In particular, environmental impacts and the effects of series production on the entire plant and the surrounding area are examined. These requirements and specifications can be incorporated into the planning processes involved in all future production areas.
> Circular use of water which entails recycling wastewater as industrial water after appropriate technical purification.
> Direct Air Capture (DAC) pilot facility. DAC technology to filter CO2 from the environment to eliminate emissions. At Audi Hungaria, we are working on a pilot facility in cooperation with Széchenyi István University that is fully financed by the Hungarian government. The one-year project extends to the conception, design and procurement of the DAC equipment, as well as the development of the necessary infrastructure, one year of testing the pilot facility, including lifecycle analysis and evaluation of the potential for the utilisation of the technology by large industrial companies.
> Production of green hydrogen via electrolysis in order to reduce CO2 emissions in areas that are difficult to decarbonise.
> Optimising thermal management in buildings by locating and optimising heat losses.
> 2nd life batteries , which are used to locally store electrical charge from household solar systems.
Governance
Audi Hungaria is committed to complying with the highest standards of corporate governance, recognising its central role in our ESG framework. Corporate governance forms the basis of our operations and determines how we make our decisions. By adhering to solid principles of corporate governance, our goal is to increase long-term value creation, strengthen trust among our stakeholders, ensure transparent and ethical decision-making, and promote sustainable growth, while having a positive impact on society and the environment as well.
Michael Breme, Chairman of the Board of Management, Audi Hungaria
Dr Patrick Heinecke, Member of the Board of Management Finance, IT, Procurement and Compliance, Audi Hungaria
Certification&Recognition
System and
process audits
through external and internal audits conducted at specific intervals, the company ensures that its quality management system meets the requirements of the ISO 9001:2015 standard, as well as the specifications of the VDA6.3 standard in production areas.
Digital data protection
management system
At the company, an internal data protection officer handles data protection-related tasks, while a separate data protection working group operates within the legal department. We have also assigned a data protection contact person for each specialist division. In recognition of our work, Audi Hungaria’s digital data protection management system made it to the finals of the Wolters Kluwer Legal Prize 2023, where it was selected among the top four in the Data Protection and Compliance category.
ACTIVITIES IN 2023
ISO 9001:2015, is an important pillar of effective governance. It certifies that Audi Hungaria meets the special standard specifications of process orientation and risk-based thinking.
The introduction of eFKO, a documented information management system, ensures that a given organisational unit is able to provide audit-relevant data at any time, through automated documentation control.
Joint audits with occupational safety — the ISO 45001 standard defines the company’s occupational health and safety management requirements, taking into account the occupational safety and legal requirements and regulations of stakeholders, which are checked during what are known as internal combined audits.
Combating corruption and bribery — firmly established company anticorruption policies, investigations of workplace misconduct and whistleblower protection, as well as related mandatory training for staff and management (Code of Conduct).
The compliance management system provides the framework within which ethical behaviour becomes sustainable. We support ethical behaviour and demand compliance with the law.
CoP (Conformity of Production) guarantees that manufactured products conform to the approved prototype. This includes the provision of measurements essential to achieving or maintaining approved vehicle specifications.
The introduction of the SCC governance system allows for a high degree of independence on the part of specialised departments, while at the same time furthering the goal of establishing common SCC synergies and ensuring the minimum governance required by company law.
New waste management measures following the new waste law that entered into force in 2023. These enable Audi Hungaria to continue to maintain its high level of excellence in waste management under the special agreement concluded with the concession company.
Inspection of suppliers – in series procurement and general procurement, based on so-called S ratings, with evaluations also considering environmental and social risks. Depending on the risk assessment, a sustainability audit may also be conducted at the supplier’s site.
Governance procedures and organisational model
Audi Hungaria has its own ESG strategy, which forms part of its long-term strategic goals. We have introduced a clear organisational and procedural roadmap for the consistent strategic and operational continuation and intensification of our ESG commitment. Within the company, several specialised departments focus on sustainability topics across all dimensions of ESG. Since 2022, ESG has been treated as a strategic field of action and, in 2024, ESG strategy and steering will be represented as a separate organisational unit within the corporate strategy.
NEXT LEVEL INITIATIVE
ESG DATA MODEL AND IT ARCHITECTURE
Compliance with future audit requirements is based on reliable, high-quality ESG data that is consistent with future CSRD requirements. Audi Hungaria is an integral part of a group-wide project and is responsible for the development of the multidimensional data model and the necessary IT architecture.
From 2025, ESG data points, such as the share of renewable energy recycling rates or the level of diversity, must be reported in accordance with CSRD regulations and certified by external auditors. In order to manage such non-financial data, we are developing in cooperation with the Volkswagen Group and the Audi Group a multidimensional ESG data model as a Single Point of Truth in a modern IT architecture. Furthermore, by linking CSRD data points with production and financial indicators we will be able to identify causal relationships and trends at an early stage. We are pleased to be able to provide our expertise as a Shared Competence partner, as well as to be a roll-out pilot within the entire Group.
Brenda Klein, Head of Financial Accounting / Statements / Treasury, Audi Hungaria
Dr Daniel-Sascha Roth, Head of ESG – Sustainability Management, Volkswagen AG
The next level: developing a state-of-the-art IT architecture capable of seamlessly integrating and connecting in real-time more than 1,000 ESG/CSRD data points and sensors within the factory. The objective is to take advantage of the synergies between our systems and platforms. Together, we are building a robust IT infrastructure that is consistent with our commitment to sustainability and responsible data management within the Audi and Volkswagen Group. Our vision for the future: to share our knowledge and IT solutions with the group's members worldwide.
Gábor Stefanits, Professional Manager IT Architecture, Audi Hungaria
Audi Hungaria's responsibility within the project
Localisation
- identifying data points
- automation of data integration
- ensuring the reliability of data in a single location
Linking data
- Creating multidimensional data cubes with linked data models
- Mapping data to various needs/areas
- Data management (split, combine, merge, separate...)
Intelligence
- Detection of causal patterns and expected trends through data mining
- Data calculations improving data quality, use of artificial intelligence
Measures
- Incorporating data and ESG-related objectives into core processes with clear responsibilities
- Visualisation of the planning-action-monitoringintervention process
- Reporting and data provision for external auditors and other stakeholders
Social
Kinga Németh, Member of the Board of Management for HR and Organisation, Audi Hungaria
2023 awards and recognitions
Prevention Award
Three of the six entries submitted by Audi Hungaria to a competition held by AUDI AG earned awards, two of them winning their categories outright.
Most Attractive
Employer of the Year
The Great Career Start Research Project ranked our company Most Attractive Employer of the Year 2023 in the engineering category, while, in the Zemployer Brand creative campaign contest, our Plan@Tech competition for engineering students won first place in the public voting and received a silver rating from the professional jury.
Family-friendly Workplace Certificate
We received recognition from Family Friendly Hungary Centre Nonprofit Kft. for companies that support their employees in living out their roles within their families and maintaining a good work-life balance.
CSR Hungary Award
Our “Month of Charity” volunteer project was recognised among the best examples of corporate sustainability and responsibility in the Best CSR Programme – Common Concerns – Shared Responsibility category.
Hungary’s Most Attractive Workplace Award
Audi Hungaria took first place both overall and in the automotive industry employer category based on the online survey conducted by PwC Hungary.
OUR ACTIVITIES IN 2023
Society & Employees
The Audi Hungaria inclusion survey, in which we measured the level of openness, appreciation and involvement at Audi Hungaria in the course of group-level research.
Audi Social Day AUDI AG’s international volunteer day was held for the first time on 24 June. Colleagues at all of the company’s production sites spent an entire day working to help the people living in their respective regions. The Győr contingent worked on five different projects, including renovating a sports complex and day-care centre, went ‘plogging’ to pick up litter, cleaned up a nature trail, and drew maps of Győr’s wheelchair-accessible public spaces.
Help us help others!
In the spirit of social solidarity, the ‘Rezeption’ donation centre was opened in Győr in autumn with the support of Audi Hungaria, and our company contributed 15,000 euros to the efforts of the Helpful Rounded-up Forints foundation.
Diversity&Inclusion:
in order to improve the results of the above survey, we actively support diversity and inclusiveness, as well as respectful partner relationships and a tolerance, all contributing to an environment that allows space for the individuality of each of our colleagues.
Girls’ Day where young women interested in working in the manufacturing and service sectors were able to gain inspiration for their future careers during factory visits that also allowed them to converse with employees.
AHAM (Audi Hungaria Actively at Work) There’s Always a Chance! is a programme aimed at helping employees with reduced capabilities to continue to work, while also running sensitivity training workshops.
Health&Community
Health centre for our employees with over 30 qualified medical specialists providing a wide range of health services.
The Maternity Information Portal where everyone can find relevant information related to giving birth and returning to work all in a single location.
Health programs for employees in the three main areas of health care: occupational health, prevention and health promotion.
October Exercise!
Health awareness competition between companies, with Audi Hungaria finishing fourth in the large company category.
The Mental Health Service promoting measures to strengthen mental health and prevention, both individually and in groups.
Sensitivity with EQ development, where ten managers – working in pairs – mentor five young adults in difficult life situations, helping them discover their strengths and opportunities and develop a vision for their future selves.
NEXT LEVEL INITIATIVES
Social Business
The purpose of the project is to establish cooperation with social enterprises whose activities extend to such aims as solving social problems and protecting the environment. In addition to contracting companies that, for example, employ partially or fully disabled employees, Audi Hungaria also supports the community with pro bono activities and donations.
SOCIAL PROCUREMENT – INTEGRATION INTO SUPPLY CHAINS
The Audi Hungaria team assigned to the task successfully selected a social catering supplier, in addition to the existing catering company, for the company’s 30th anniversary event. In addition, it has already sought out another 15 potential social enterprises in Hungary, which the company intends to integrate into its supply chain over the long term, thereby creating added value at the social level.
Lucie Durand, Managing Director, Yunus Social Business
Éva Varga, Vice President, Hungarian Coalition of Social Enterprises
INNOVATIONS WITH A SOCIAL PURPOSE WITHIN IDEA MANAGEMENT
In cooperation with Yunus Social Business, we are examining our idea and innovation management policies, so that in future we can identify and support ESG-related initiatives more quickly, and support them effectively. At the same time, we encourage our employees to submit even more innovative and sustainable ideas on social topics within the framework of the Idea Exchange program.
Sergio López Ramos, Managing Director, Yunus Social Business
Dr András Torma, Project Manager, Environmental Protection, Audi Hungaria
Implemented initiatives
Catering&More
At our company’s 30th anniversary event, the employees of the Hatpöttyös restaurant in Székesfehérvár, who live with altered work capabilities and/or disabilities, were responsible for the catering.
Christmas market
At the holiday market Audi Hungaria organised for employees, we also provided social enterprises with the opportunity to offer their products.