BUSINESS & CUSTOMERS

Sustainability principle
Satisfied customers, economic stability, value-generating growth and social acceptance are the focus of all of our business activities at Porsche. Corporate responsibility begins with our self-image of actively helping to protect the natural conditions for life on earth and of benefiting our business environment. Economic efficiency, environmental consciousness and social responsibility are not mutually exclusive. On the contrary – by combining them we create more value for our stakeholders. As a company, Porsche is an integral part of society. Ethical behaviour is therefore essential. Porsche embraces fair competition and acts not only lawfully but also legitimately. The company systematically combats corruption, respects and complies with international standards of human rights, and categorically rejects all forms of forced and child labour.

The “Business & Customers” action area covers the following topics identified in the 2017 materiality analysis: “long-term economic stability”, “long-term customer relations”, “compliance”, “responsibility in the supply chain” and “digital transformation”. All of these topics feature clearly defined processes and areas of responsibility as well as established evaluation procedures.

Economic stability and digital transformation
The automotive industry is facing radical change. Electrification, digitalisation and connectivity are the cornerstones of a new era of individual mobility. This view is shared by Porsche’s stakeholders, who assigned correspondingly high degrees of relevance to the topics of “economic stability” and “digital transformation” in the 2017 materiality analysis. From the company’s perspective, these two topics are also seen as basic prerequisites for long-term economic success, and were assessed as having a medium impact on society and the environment.

Excellent profitability with an operating return on sales of at least 15 per cent is an outstanding feature of the Porsche corporate philosophy. At the same time, Porsche is making enormous investments in mastering the digital transformation and enhancing its own powers of innovation. The digital transformation affects all areas of the company – including internal processes, interaction with customers and the development of products and services. An overall innovation management system supports new ideas, expedites prototype-based testing of technologies and trends, and encourages Porsche’s employees to take the initiative to shape mobility in sustainable ways.

In accordance with the Global Reporting Initiative (GRI) standards, Porsche covers the topic of “long-term economic stability” in its disclosures on GRI 201: Economic Performance. This information is measured and reported on the basis of the Porsche AG Group’s financial analyses, financial data and calculations of added value.

Long-term customer relations
Porsche places a premium on customer relations and seeks to maintain and promote customer enthusiasm for the product worlds of exclusive sports cars and smart mobility. “Inspiring customers with a unique product and brand experience” is one of the four main aims of its Strategy 2025. The materiality analysis based on a stakeholder survey also underscores the importance of “long-term customer relations” for the company. Although an internal assessment considers this topic to have only a minor impact on society and the environment, the strategy for the sales and marketing division promotes a range of measures to further optimise the customer journey at Porsche.

Relations with all of our stakeholders are characterised by interaction and dialogue. In addition to classical means of communication, Porsche is establishing new forms of dialogue with customers. Apps, social media, chats and the overarching, personalised “My Porsche” customer portal not only provide information in quick and uncomplicated ways but also enhance individual interaction with the company. Personal contact is essential to building long-term customer loyalty. The company views constructive criticism as an opportunity to further enhance its products and processes. Porsche’s worldwide customer and market research seeks to promptly identify customer expectations, particularly with respect to new technologies in automotive engineering and the use of individual mobility, interpret these expectations in comprehensive ways and thereby channel them into the early development stages of products and services. More than 200,000 questionnaires are sent out every year to collect data and gauge the mindsets of customers around the world. In a product quality and customer satisfaction forum, the Executive Board of Porsche AG evaluates the results and consequences with technical specialists as well as with representatives from the Quality Assurance, Customer Relations and Aftersales departments.

In accordance with the Global Reporting Initiative (GRI), Porsche covers the topic of “long-term customer relations” in its disclosures on GRI 418: Customer Privacy. Porsche takes individual data privacy very seriously and respects the right to determine what is done with such data. Data protection is integrated – independently and free from external supervision – into relevant company processes to ensure compliance with laws and regulations. The company has issued its own guidelines that commit it to principles of data protection such as data economy, purpose-based collection and confidentiality. Due to internal con­fidentiality guidelines, any reports received of data protection violations cannot be disclosed.

Responsibility in the supply chain
Economic success and the use of new technologies are causing greater attention to be devoted to companies’ supply chains. Higher levels of sales mean a higher number of com­ponents from suppliers. This topic is also fraught with potential ethical issues, as strongly emphasised by Porsche stakeholders in the 2017 materiality analysis. According to an internal company assessment, the Porsche supply chain has a medium impact on the environment and society. Porsche makes every effort to make the supplier chain as positive and value-adding as possible, both within the realm of its own possibilities and also in conjunction with suppliers and sub-contractors. When Porsche was incorporated into the Volkswagen Group, its procurement division was also largely integrated into the Group’s organisation. Shared purchasing structures, processes and systems were specified in a cooperation agreement back in 2011. The majority of Porsche’s procurement decisions are therefore coordinated and agreed upon with the Volkswagen Group. Cooperation between Porsche AG and the Volkswagen Group has also been increased on a continuous basis, with structures both expanded and consolidated.

This work is based on confidential cooperation, shared values and strict compliance with the sustainability requirements defined in the Volkswagen Group. The concept of “sustaina­bility in supplier relations” and the corresponding code of conduct compel all parties to observe and comply with the high environmental, social and human rights standards in the International Chamber of Commerce’s charter and the OECD’s guidelines for long-term, sustainable development. The relevant key labour standards from the International Labour Organization (ILO) serve as the foundation for the sustainability requirements that Porsche helped to revise and update in 2017. All suppliers are also expected to follow the OECD’s due diligence guidance on responsible supply chains of minerals from conflict-affected and high-risk areas. Porsche is active in this area in connection with the Group’s responsible minerals initiative (RMI). These sustainability requirements are part of suppliers’ contracts, the violation of which can result in reviews, formal statements and potentially also the termination of business relations. Sustainability audits in the 2017 reporting year yielded five cases in which specific sustainability requirements were not met. Appropriate measures were agreed upon with three suppliers, and the introduction of these measures was monitored. The other two cases were still open at the end of the reporting year and are still being evaluated.

Porsche always conducts integrity checks before entering business relations with new suppliers. Once relations have started, monitoring and development take place on a continuous basis and are supported by surveys, risk analyses of the suppliers’ countries, and e-learning modules and workshops. Porsche has also carried out sustainability audits of selected suppliers since 2016.

Audits are followed up by detailed reports and plans of action. Porsche is thereby fulfilling one of the key components of Strategy 2025 – in addition to numerous additional activities such as regular employee seminars on sustainability requirements in the supply chain as well as supplier workshops. Sustainability in the supply chain also has its own section in the purchasing strategy. And finally, a new guideline in the Volkswagen Group on sustainability in supplier management has governed all internal processes and areas of responsibility since 2017. Porsche is transferring the requirements in this guideline into its own brand-specific guidelines in the spring of 2018.

In accordance with the Global Reporting Initiative (GRI) standards, Porsche covers the topic of “responsibility in the supply chain” in the following content-specific disclosures: GRI 204: Procurement Practices; GRI 308/414: Supplier Environmental Assessment/Supplier Social Assessment; GRI 408/409: Child Labor/ Forced or Compulsory Labor; and GRI 412: Human Rights Assessment.

Compliance
Responsible action is based on complying with laws and regulations. Porsche’s stakeholders share this view and therefore assigned a high level of importance to the topic “Compliance” in the 2017 materiality analysis.

Adherence to the law is ensured by a compliance organisational set-up based on the company’s business model, as well as legally secure processes and measures for both preventing violations and responding to any that might occur. Porsche is currently considering seven subject areas in its compliance management system. To prevent legal violations and to support employees in complying with laws and regulations, Porsche has established a compliance organisation. Its members include a chief compliance officer, compliance area managers at Porsche AG, and the managing directors and local compliance officers of the Group member companies. Porsche’s compliance programme covers a range of different measures for prevention and response. Risk analyses are used to regularly define both preventive measures and necessary action in accordance with specific business models, applicable environmental conditions and the types of business partner relationships. Key preventive measures here include adopting and communicating clear guidelines and providing confidential compliance advice, as well as regular information and training workshops for managers and employees on relevant compliance topics. Porsche’s code of conduct, which is binding for all managers and employees, summarises the most important principles and expectations regarding lawful, ethical and sustainable action in the Porsche Group. It addresses matters such as dealing with conflicts of interest, combating every form of corruption, appropriate behaviour within the Group toward customers, business partners and public officials, and taking responsibility for the economy, the environment and society. There is also a separate guideline for each compliance topic – for example on combating corruption, dealing with conflicts of interest – to avoid violations of antitrust law and prevent money laundering.

Porsche’s central compliance help desk provides informational and advisory services on compliance questions and serves as a collection point for notifications from managers and employees. To ensure and promote lawful behaviour, managers and employees are given regular information and training on integrity and compliance. One of the main response measures was to set up an internal and external collection point for notifications of potential legal violations in connection with Porsche. Within the company, managers and employees can confidentially report suspected illegal acts or serious irregularities to the compliance help desk. Outside the company, managers, employees, Porsche customers and business partners, public officials and other individuals can report legal violations anonymously via the ombudsman system. In both cases all information is carefully examined, and any violations found are responded to appropriately while observing the employment and co-determination guidelines. This includes taking suitable countermeasures and sanctioning individual misconduct. The Executive Board of Porsche AG receives regular reports on actions taken by the compliance organisation and on preventive and response measures in the Porsche Group.

Compliance training
Compliance training is determined by the compliance officers for each area, in conjunction with the HR department. At the time of this report, training has thus far taken place primarily in a classroom format. Of note is a pilot e-learning project in the development division’s Technical Conformity department, covering regulatory guidelines, environmental protection issues, general compliance guidelines and the Porsche whistle-blower system. Plans call for online courses on compliance topics to supplement classroom training for all the company’s departments in the future.

The foundation for this is a training strategy that uses risk analyses to identify target groups and key areas of content for compliance officers, and that also defines organisational aspects such as the number and frequency of events and the capacities needed. A regular programme of set training events for managers and new employees is supplemented by workshops on selected topics and/or for specific target groups.

One example: compliance is included in the workshops on corporate culture for first- and second-tier managers as well as for all other managers with technical or line management responsibilities. These workshops focus on the Porsche code of conduct and the company’s compliance culture as well as on basic anti­corruption guidelines and principles of antitrust law. They cover not only theory but also practice, with group exercises on addressing and solving potential compliance issues. Porsche managers are required to be available to their employees at all times for reporting of possible non-compliance in their areas of responsibility.

New employees are familiarised with the company’s compliance culture as part of the Porsche Warm Up programme. Immediately upon joining Porsche, they study the company’s code of conduct and basic anti-corruption guidelines. They also engage in group exercises to address potential compliance issues and develop their own possible solutions. The Porsche Warm Up programme is currently held on a monthly basis, depending on the number of new employees.

Compliance training is required at Porsche. Analyses and results are distributed internally. Starting in 2018, the Porsche HR department is keeping records of attendance at compliance seminars and compiling individual histories of compliance training.

Information for employees
Additional information about the Compliance department’s training programme is available to Porsche employees on the Intranet. In addition to relevant Group and company guidelines, this information includes contact persons and ways to report concerns either internally or externally along with a range of materials such as compliance videos, flyers, note cards and check lists.

Porsche’s code of conduct
As of 14 December 2017, the Volkswagen Group’s code of conduct also applies to Porsche. The new Porsche code of conduct provides comprehensive directions on employees’ compliance responsibilities:

– as members of society: human rights; equal opportunity and equal treatment; product conformity and product safety; environmental protection; donations, sponsorships and charity; communications and marketing; political lobbying

– as business partners: conflicts of interest; gifts, hospitality and invitations; prohibition of corruption; dealings with public officials and holders of political office; prohibition of money laundering and terrorism financing; accounting and financial reporting; taxes and customs; fair and free competition; procurement; export control; prohibition of insider trading

– at the workplace: occupational safety and healthcare; data protection; security and protection of information, know-how and intellectual property; IT security; handing company assets.

Examples that employees might face on the job are provided for each topic. There is also a self-administered test designed to help employees make decisions in case of doubt. Porsche’s implementation of the new code of conduct includes publishing it on the Internet and Intranet, sending a digital version to all employees by email, ­adding it to training materials and distributing the compliance brochure to new employees at classroom training events.

In accordance with the Global Reporting ­Initiative (GRI) standards, Porsche covers the topic of compliance with the following disclosures: GRI 205: Anti-corruption, GRI 206: Anti-competitive Behavior, GRI 307: Environmental Compliance, GRI 419: Socioeconomic Compliance. This information is measured and reported in part by the number of business sites audited and the number of compliance training events.


PRODUCT RESPONSIBILITY

Sustainability principle
Porsche develops high-quality, innovative and long-lasting products. With each new model generation, Porsche consistently sets new standards in quality, environmental friendliness and safety across the entire life cycle of all vehicles.

The Product responsibility action area covers the topics identified in 2017’s materiality analysis, namely “Vehicle safety”, “Fuel consumption and vehicle emissions”, “Materials and sustainable raw materials” as well as “New mobility concepts”. These topics are marked by clearly defined processes and skills as well as formalised and transparent evaluation procedures.

Vehicle safety
Vehicle safety is Porsche’s top priority. And by that we do not just mean the safety of our own products, but the safety of all road users in general. Porsche stakeholders – persons, groups and institutions who are affected directly and indirectly by the activities of our company, and who can have a significant effect on our company’s success – place a great deal of importance on vehicle safety. During the sustainability survey that was part of 2017’s materiality analysis, stakeholders placed this topic first, not least due to its economic relevance and its social importance.

Vehicle safety is a decisive criterion in the development of innovative and modern vehicles. The initial elements arise during the concept phase and at early design phases, such as the design of the outer contour or the interior. Active and passive vehicle safety is subject to strict legislation. Anti-lock brakes, electronic stability programs and emergency braking systems, for example, all contribute to active safety. Passive measures – airbags, seatbelts or body crumple zones – reduce the effects of an accident. Porsche not only meets numerous international legal requirements, some of our benchmarks exceed them – these are formalised in a requirements catalogue that the Development, Setup, Safety and Front/Rear End Systems department draws up, has agreed across all departments and maintains. Clearly delineated responsibilities and a comprehensive reporting system guarantee that the specifications are implemented. Planning, execution and documentation of crash tests are the responsibility of the Development, Setup, Safety and Front/Rear End Systems department. Acceptance is the responsibility of the Development Technical Conformity department.

In accordance with the rules of the Global Reporting Initiative, the topic of vehicle safety is covered in this report by the indicator GRI 416: Customer Health and Customer Safety

Fuel consumption and vehicle emissions
Electrification and digitalisation are leading to radical change right throughout automobile construction. Porsche accepts this challenge resolutely. The company builds sports cars that combine supposed opposites such as tradition and innovation, performance and day-to-day usability, functionality and design as well as exclusivity and social acceptance into a single whole. A key part is also played by fuel consumption and vehicle emissions – after vehicle safety, it was identified as the second most important topic by the stakeholders in the 2017 materiality analysis. Its materiality to Porsche has also been confirmed within the company: fuel consumption and vehicle emissions are not only the most important topic with regard to business relevance, they also have significant ecological and social consequences. Continuous increase in efficiency, development of alternative drive technologies, lower fuel consumption and lower emissions – for Porsche, resource-saving and environmentally friendly mobility is a primary strategic target.

In addition to a wide range of measures to increase efficiency – from lightweight construction and technologies for the optimisation of conventional combustion engines to the use of smart assistance systems – Porsche will increasingly make use of hybridisation and complete electrification of its model range. “Electromobility” and “Vehicle architecture of the future” are cornerstones of the Porsche Strategy 2025. The Mission E, as the first purely electric Porsche in the company’s 70-year history, defines sports car construction in this category with regard to performance, driving dynamism and range.

Consumption optimisation is one side of resource-saving mobility, reducing harmful emissions is the other. Modern exhaust after-treatment systems reduce emissions, regardless of the current discussion surrounding diesel engines. In reporting year 2017, Porsche recalled diesel Cayennes with the three-litre V6 engine in emission class EU6. Previously, internal investigations had revealed irregularities in the engine control software; these irregularities were actively reported to Germany’s Federal Motor Transport Authority. Around 21,500 vehicles from construction years 2014 to 2017 were affected around Europe, of which 6,000 were in Germany. On 18 October 2017, the authority approved the software update that Porsche had submitted for testing. Since calendar week 45 of last year, Porsche has been recalling the affected vehicles into workshops for free overhauling. Porsche does not develop or produce any diesel engines itself, but, as vehicle manufacturer, accepts its full responsibility to customers. It is of utmost priority for the company to fully meet customer expectations with regard to quality, integrity and service.

In accordance with the rules of the Global Reporting Initiative, the topic of fuel consumption and vehicle emissions is covered in this report by the indicator GRI 305: Emissions. The figures in this report that are required for this indicator refer, however, only to emissions that arise in production and administrative operations. For that reason, the consumption and emission figures for all vehicle models are reported instead. Taking product-specific emissions into account as part of an overall recording of the company’s Scope 3 emissions is an issue that is currently being worked on; reporting is planned for the next few years.

Materials and sustainable raw materials
Materials and sustainable raw materials are the building blocks of modern, future-ready vehicle architecture. The Porsche stakeholders surveyed as part of the 2017 materiality analysis considered this topic to be relevant (fourth place among all evaluations) – despite the company’s view that it has a relatively small effect on the environment and society. The reason for the company’s view is the relatively low number of Porsche vehicles that are produced.

The long service life of Porsche vehicles, their high-quality workmanship and the use of low-wear materials are part of the Porsche principle. The company is taking more and more environmental effects of a vehicle – across its entire life cycle – into account, from the acquisition of raw materials and the manufacture and use through to disposal. The aim is to achieve a total ecological optimum. Electric vehicles, for example, protect the environment when they are being used. On the other hand, the impact on the environment by the manufacture of electric vehicles is on the increase due to the raw materials and production processes used for components such as traction batteries. Even if, all in all, every factor speaks in favour of electric driving, achieving optimum environmentally friendly vehicle manufacture remains an ongoing task for Porsche. That applies, naturally, to the selection of raw materials too. This can be seen in the fact that the promotion of sustainable materials and the consideration of a vehicle’s service life are expressly anchored in the Porsche Strategy 2025. The Sustainable materials working group ensures that an exchange of ideas occurs between departments. The company is also a heavy promoter of the issue of recycling the raw materials that have been extracted and processed with a high intensity of effort.

In this report, the topic of “Materials and sustainable raw materials” is covered in accordance with the rules of the Global Reporting Initiative by the indicator GRI 301: Materials. The indicator is measured and reported in tonnes based on annual consumption of materials.

New mobility concepts
Urbanisation, increasing prosperity, growing mobility around the world and – as a result – greater impact on the environment are triggering an innovative and market dynamic towards adapting the automobile and how we use it. These factors are leading to a diversification of drive concepts to achieve both highly efficient and alternative drives, but also new and attractive mobility concepts. Digitalisation and connectivity, as well as customers’ desire for more flexibility and sustainability, are accelerating this change. In the 2017 materiality analysis, the Porsche stakeholders underline the key importance of this transition, as do internal company analyses of possible effects on the environment, employees and society as well as of the economic consequences for the company.

Porsche is developing innovative products and services to shape flexible and comfortable mobility. The features of this mobility include, but are not limited to, innovative solutions for parking, needs-driven vehicle usage, seamless integration with other forms of transport and the best possible use of electric vehicles thanks to optimised charging options. Agile and interdisciplinary teams are developing models that are aligned in particular with new customer requirements. This development is underpinned by close cooperation between the company’s different departments, an open information policy, as well as early piloting and inclusion of the stakeholder groups.

The mobility options offered to employees are another main focus. An interdepartmental project has the aim of improving the traffic situation and the mobility of the staff at Porsche’s different locations in the long term, thanks to a wide range of measures and initiatives. This applies particularly to the main plant in Zuffenhausen, which is located in an urban area. Employees receive, for example, a monthly subsidy to buy a company ticket for local public transport. What is more, the parking situation at the location and mobility around the plant grounds have been improved. Porsche also directs daily delivery traffic as efficiently as possible: this is why Logistics already makes use of two gas/diesel hybrid trucks and two natural-gas-only trucks.


ENVIRONMENT & ENERGY

Sustainability principle
Porsche views the conservation of natural resources as an entrepreneurial obligation. Whether in development or in production, the objective is to impact the environment as little as possible and to use energy efficiently. All the steps taken to this end are scrutinised on a continuous basis along the entire value chain, and improvements are made where necessary.

The “Environment and Energy” action area constantly reviews the themes identified in the 2017 materiality analysis: “energy and emissions during production”, “environmentally compatible logistics” and “resource consumption during production”. Porsche has mandated clearly defined processes and responsibilities for all its divisions. Options for feedback and evaluating processes have been codified.

Energy, emissions and resource consumption during production
Global climate change, scarcity of resources and advancing urbanisation all pose enormous challenges to the economy and society. In Porsche’s 2017 materiality analysis, the Porsche stakeholders who are impacted directly or indirectly by the company’s activities assign a great deal of importance to “energy and emissions during production” and “resource consumption during production”. According to internal assessments, Porsche’s activities in this area tend to have less of a direct effect on environment and society: nevertheless, Porsche considers itself under obligation to maintain an uncompromising, sustainable company policy.

Environmentally conscious and energy-efficient activity at all sites and across all levels is an essential element in the day-to-day business. A company-wide environment and energy management policy continually checks all work processes in regard to ecological impact and irregularities along the entire value chain. Internal sets of rules and strategic guiding principles are the frame of reference for the management of environment and energy. A proprietary Group guideline defines standardised procedures and responsibilities within the Porsche Group. It supports the Group companies in the systematic investigation, observance and checking of the regulatory environmental and energy requirements. The energy and environment management policy covers emissions (air/noise) and soil protection, dealing with contaminated sites, hazardous materials and waste as well as emergency preparedness, water and nature conservation and energy efficiency. The responsibility and the systematic implementation of necessary steps lies with the Member of the Executive Board for Production and Logistics, supported by the Environment and Energy Management department. The fundamental aim is that every Porsche employee is cognizant regarding the effects of his or her job on the environment. Every employee is called upon to observe the Group’s guideline concerning minimisation of impact on the environment or even avoiding it entirely in the best-case scenario.

The strategy field “sustainability in production” defines short-, medium- and long-term measures. The “environment and energy efficiency strategy” and the company’s own “environmental policy” are additional strategic guiding principles. With these the company is implementing a requirement of the international standards for environment and energy management, ISO 14001 and ISO 50001, to which Porsche’s internal specifications and processes are orientated. The sports-car maker also complies with the EMAS (Eco-Management and Audit Scheme) standards, a voluntary community environmental management and auditing instrument developed by the European Union. The Porsche site at Stuttgart-Zuffenhausen has been validated according to EMAS for more than 20 years and was also the first ­automotive industry plant in the world to fulfil the ISO 50001 standard. Since then, Porsche Leipzig GmbH, the Development Centre in Weissach and the external locations, the central parts warehouse in Sachsenheim and Porsche Werkzeugbau GmbH have all been certified as compliant with this standard. These locations also have an environment management system that conforms to ISO 14001 at their disposal. In addition to the official certifications, Porsche also reviews ­in-house compliance with environmental and energy laws as part of annual system and process audits (compliance audits). The hallmarks of these audits are the high standards and the hiring of external environment and energy auditors. The site results method records sites’ impact on the environment: data and key figures rate essential environmental aspects on a scale of high, medium and low relevance. From this, Porsche derives all necessary measures to reduce or eliminate possible negative impacts on the environment. The Environment and Energy steering committee works cross-departmentally. The committee assesses the pre-defined goals regularly and initiates appropriate steps.

Porsche strives to achieve balanced environmental performance. Thus, a conscious and highly efficient use of water throughout circulation systems as well as multiple reuse play an important role – as does circumspect handling of contaminated production waste water. Avoiding waste, low-waste technologies and sustainable disposal solutions are key aspects of Porsche’s waste management concept. The resource regulation “environmental protection” serves as both an internal guideline as well as a set of rules for suppliers, among other things.

In general, environment and energy management staff are always at the disposal of all company stakeholders – internal and external – with regard to questions or suggestions on the topic of “environment and energy”. The goal is open and transparent stakeholder dialogue. An example of this is the central complaints management within the environment and construction management.


EMPLOYEES & SOCIETY

Sustainability principle
At Porsche, people are at the centre of the company. It assumes responsibility for its employees and invests in their future. Continuous professional development and qualification are hallmarks of the Porsche culture. At the same time, key importance is attached to equal opportunities, diversity and co-determination as well as the ongoing improvement of our employees’ work­life balance along with fair and performance-based remuneration. As part of our local and international social commitment in the areas of social matters, education and science, culture and sport, Porsche initiates its own projects and supports external partners in conducting their own important social activities.

Under the “Employees & Society” heading, Porsche covers, among other themes, the important topics identified in the 2017 materiality analysis: “attractive employer,” “staff development,” “corporate co-determination,” and “occupational health and safety.” In all four areas, Porsche has clearly defined processes and demarcations of responsibility as well as established avenues of evaluation and feedback.

Attractive employer
The basis for successful HR work is Porsche’s continued position as an attractive employer. Stakeholders – i.e. people, groups and institutions directly or indirectly affected by the activities of a company and whose success they can significantly impact – attributed a great deal of importance to this aspect in the 2017 materiality analysis. According to internal assessments, the topic also has a moderate degree of impact on employees and society. Porsche gets particularly high marks for excellent general conditions, a strong corporate culture and co-determination, as well as extensive options in the area of work-life balance. Firmly anchored in the Porsche HR strategy, employer attractiveness is one of four central areas of emphasis in the overarching Porsche Strategy 2025. Other benchmarks include the “Compliance Code” and the “Porsche Business Rules.”

The continuous development of the corporate culture is exceptionally important to Porsche. The backdrop is defined by the strong growth in staff numbers in recent years, the restructuring of the automotive industry and the company’s reorientation toward electric technology, digitalisation and connectivity. Process sponsors are Porsche Chairman of the Executive Board Oliver Blume, Porsche HR Board Member Andreas Haffner and Uwe Hück, Chairman of the Group Works Council. Drawing on the new culture guidelines, the future “Porsche Code” will comprise the four elements dedication, pioneering spirit, sportiness and family. This code will replace previous leadership guidelines.

Porsche places great importance on work­life balance. Employees receive support through a wide variety of different measures. Six cooperation partners make sure that there are sufficient childcare places in nurseries near the company’s sites. With the family service, Porsche offers free, individualised and comprehensive support service for all family life situations. Porsche also provides flexible options with respect to work location and working hours. Options agreed with the Works Council range from arrangements for working from home and flexitime aligned to the employee’s current phase of life, through to voluntary periods off in the form of sabbaticals. Job sharing in leadership roles has also proven to be successful in a pilot project and is now being expanded within the company.

In this report, the topic of employer attractiveness is covered by the provisions of the Global Reporting Initiative as indicated by the flag GRI 401: Employment. This is measured and reported based on the following key figures: total workforce, employee structure, new hires and employee fluctuation and parental leave claims.

Staff development
The pillars of HR work at Porsche include needs-based training that focuses on future requirements, ongoing skills acquisition, and options and routes for internal development. To be well prepared for the challenges facing the automotive industry, Porsche identifies and retains qualified and enthusiastic professionals. In the context of the 2017 materiality analysis, stakeholders rate the aspect of employee development as highly important. According to internal assessments, the topic also has a moderate degree of impact on employees and society. Porsche is directly involved in these positive effects and is striving to achieve continuous improvement in this area in the future as well.

The foundation is formed by professional training as well as the support and qualification of students, for example through training options for dual-studies students and the “Porsche Trainee Programme”. Another important component is the permanent hiring of all apprentices upon passing the final examination. Building on this, employees also have access throughout their career to a diverse range of programs and qualification offerings for their systematic and forward-looking professional development on all levels. This includes the Porsche Warm up introduction programme for all new hires, the Porsche development programme for the qualification and preparation for the possible assumption of management roles, and target group specific qualification and talent promotion in the field of production. Two modular and internationally oriented qualification offerings for the management level – the Porsche Management Programme International for managers and the Porsche Advanced Management Programme for top management – extend the range of training opportunities.

Employee support and qualification is not only a central component of the Porsche culture and leadership guidelines; it is also firmly anchored in the Porsche Strategy 2025. The digital transformation in particular is placing new and significantly different demands on the workforce. Against the backdrop of digitalisation, the Fit for Digit@l initiative was started to help establish and expand a common basis of knowledge and understanding. Employee support and qualification is also an instrument of strategic leadership and planning processes. Individual training requirements are identified during annual employee appraisals, and relevant development opportunities established on this basis. The comprehensive range of training opportunities and individual staff development programmes are continuously evaluated and optimised in consultation with the Works Council. In the year under review, the newly introduced Porsche Learning Platform established a digital portal for the targeted support of employees.

The objective of staff development measures is the ongoing structured establishment and extension of capabilities critical to the company’s success among all employees. One pilot project in the reporting year of 2017 was a procedure for strategy skills management. The core tasks and associated skills are analysed and compared to future tasks and skills yet to be acquired by means of a fit-gap analysis. Detected capability deficiencies can thus be addressed at an early stage through targeted re-training and further training, recruiting and new emphases in ongoing training.

In this report, the topic of staff development is covered by the provisions of the Global Reporting Initiative found in GRI 404: Training and Education. This is measured and reported on based on the following key figures: the number of participants in training measures and the average training hours per employee. There is currently a survey under way for Porsche AG and Porsche Leipzig GmbH; continuous expansion to the Porsche AG Group is planned for the future.

Corporate co-determination
One of the pillars of the Porsche corporate culture is corporate co-determination. The relevance of the topic is also underscored by the 2017 materiality analysis. Porsche benefits from continuous dialogue as well as open, direct communication across all levels of the organisation. For all topics affecting the staff and the company, the employer and the Works Council have traditionally worked together closely. Internal media inform employees of Porsche AG concerning the variety of options on offer. Moreover, the Works Council offers a comprehensive platform for information and discussion at the individual Porsche locations through its works meetings. In the form of additional informational and department-specific events, the board members and the Works Council transparently provide information concerning current topics and developments. It is also established practice at Porsche to inform all employees and their elected representatives about important operational changes both comprehensively and in a timely manner. This is done in compliance with national laws, applicable collective bargaining agreements and works agreements. Adherence to this corporate practice is ensured by a number of means, including a Supervisory Board with equal representation, the Works Council committees, regular works meetings and the continuous maintenance of the works agreement database on the intranet.

At the same time, there is also a multitude of ways for employees – be it openly or discreetly through special channels – to bring their suggestions, problems or complaints to committees and decision-making bodies. The mood barometer is an instrument through which employees throughout the company are anonymously surveyed about topics relating to working with colleagues and supervisors, the quality of work and the provision of information. The detailed evaluation is followed by a discussion of the results involving the Works Council in all areas of the company, in which potential improvements are identified and corresponding measures for optimising work procedures and conditions are defined jointly.

In this report, the topic of corporate co-determination is covered by the provisions of the Global Reporting Initiative found in GRI 402: Labour/Management Relations and GRI 407: Freedom of Association and Collective Bargaining.

Occupational health and safety
Healthy and capable employees are indispensable for the success of the company. Stakeholders also attribute great importance to this issue in the 2017 materiality analysis.

Porsche health management is proactively involved in the cross­departmental development of workplace framework conditions. The primary aim is to safeguard the health and fitness of employees and therefore their ability to work in the long term. Key elements include the quick reintegration of employees who have been ill for an extended period and the placement of employees with compromised performance due to health issues in positions suited to their capabilities. Measures such as systematic ergonomics assessments of work stations, for example, detect high and specific work strains and mitigate them through suitable technical or organisational measures. Work stations at Porsche are designed in keeping with human ergonomics and are based on the latest insights of occupational medicine. The company assiduously applies the legal and trade association specifications and recommendations. Furthermore, it also offers all employees individual, workplace-related physiotherapeutic advisory and treatment services.

Secure workplaces and employee protection are of utmost priority at Porsche. An organised and structured system for occupational health and safety ensures targeted and consistent procedures along with the implementation of legal provisions. This system helps to prevent accidents at work, occupational illnesses and work-related health hazards. No area of work at Porsche suffers significant accumulation of illnesses. This is also the case for operational activities linked to a particularly high risk of illness. The central processes are standardised and regulated by the Group guideline on occupational safety. This guideline represents an essential element of the company’s compliance management system and is valid for all employees. The managers ensure that their employees are familiar with the specifications of this guideline and comply with its provisions. Specialists in occupational safety, Works Council members and works doctors are available to all employees in an advisory capacity. All employees of the company are represented through the legally defined representatives in the occupational safety committees in accordance with the Occupational Safety Act.

All these joint efforts have enabled Porsche to achieve a significant reduction in the injury rate in recent years.

In this report, the topic of occupational health and safety is covered by the provisions of the Global Reporting Initiative found in GRI 403: Occupational Health and Safety. This is measured and reported based on the following key figures: number of accidents, work days lost and cases of death, as well as the injury rate. A survey is currently being performed for Porsche AG and Porsche Leipzig GmbH; expansion to the Porsche AG Group is planned for the future.