Less CO₂ in production and supply chains

Volkswagen is investing in increasing energy efficiency and lowering emissions at its factories. The goal of the Zero Impact Factory programme is to cut CO₂ emissions per vehicle in production by 50 percent by 2025 as compared to 2015. A good example is offered by the Zwickau factory, where the ID.3 and ID.4 are the first members of the Volkswagen ID. family to roll off the production line and be delivered to customers with a carbon neutral footprint. The principle: Avoiding energy consumption, using renewable energy and offsetting any unavoidable emissions – for example with certified climate change mitigation projects.

The green power generated by hydropower plants, wind farms and solar farms procured by the Zwickau plant from Volkswagen Kraftwerk GmbH makes an important contribution to the decarbonisation of production. Any remaining requirements are covered by the factory's own highly efficient combined heat and power plant, which covers as much as 70 percent of the heating requirements. It is run on natural gas, which is significantly more climate friendly than coal-based power generation. A total of 11 plants around the world have already been using green electricity exclusively since 2020; by 2030 all sites outside of China will be using 100% green energy.

At present, Volkswagen produces its fully electric MEB models at four sites around the world – Zwickau, Dresden plus Anting and Foshan in China. The Škoda plant in Mladá Boleslav has now joined that group by launching MEB production. Anting is dedicated exclusively to the production of electric vehicles and is Volkswagen’s first ever specially built MEB factory. In future, Foshan will be able to produce both combustion-engine-based models and MEB models on the same production line. These four factories can build up to 900,000 vehicles every year. Preparations for the production of MEB vehicles are already underway at the existing sites in Hannover, Emden and Chattanooga (USA).

In the future, sources of CO₂ in the supply chain will also be systematically identified and reduced – with this approach, Volkswagen is aiming to save two tonnes of CO₂ per ID. model by 2025. Battery cell production for the ID.3 and ID.4 is pioneering this strategy.

Beyond the battery itself, decarbonisation of the supply chain presents a major challenge. Volkswagen works with up to 40,000 direct suppliers and service providers; some of its supply chains contain up to eight sub-suppliers, whereby Volkswagen has no direct business relationships with many of these companies. Given these circumstances, Volkswagen is initially focusing on CO₂ hotspots. As early as this year, new sustainable components will be used in the ID. models, including wheel rims made from green aluminium and tyres produced in a low-emissions process.

For its new vehicle projects, Volkswagen will be making carbon emissions a central criterion for awarding contracts to suppliers. For example, the use of green energy will become a requirement in the contract awarding process. If everyone involved pulls together, we can succeed in quickly pushing forwards with decarbonisation and climate change mitigation – and Volkswagen stands firmly behind this conviction.