STRATEGY AND ORGANISATION
(GRI 102-46)
Sustainability is an entrepreneurial duty. Society as a whole, our customers, investors, the media and politicians all expect us to do business responsibly, for the good of the environment and the community. Doing business sustainably is also becoming increasingly important to our remaining competitive in our business environment. Social responsibility, economic success and efficiency are not conflicting ideals. These tenets form the basic components of successful, forward-looking business leadership.

Sustainability is a top priority for Porsche when it comes to strategic perspectives. The Chairman of the Executive Board holds direct responsibility for sustainability, underscoring the importance that Porsche attaches to it. Since 2016, sustainable action in combination with strengthening our capacity for innovation has been a core objective of the Porsche Strategy 2025. Porsche demands that all the parts of its business act sustainably and responsibly. Sustainability is a theme that is relevant across all departments. It is anchored permanently in processes and projects, structured in the four core action areas “Business and Customers”, “Product Responsibility”, “Environment and Energy” and “Employees and Society”.

Porsche consolidated the sustainability measures anchored in its strategy in 2017. The company’s own audits and similar activities improve on the implementation controls imposed in respect of the sustainability requirements made of suppliers. Since the start of 2017, Porsche AG and its subsidiaries Porsche Logistik GmbH and Porsche Leipzig GmbH have been using 100% green energy. In terms of its financial strategy, Porsche is developing criteria that take account of sustainability aspects in long-term investment decisions.

In 2017, strategic importance was given to identifying potential for improvement using external sustainability ratings. Working together with specialist units from within all company departments, the core sustainability team analysed and developed additional short-, medium- and long-term improvement steps along the entire value chain. These activities not only underline the significance of sustainability for the company as a whole, but also encourage individual employees to take their own initiatives in this direction. For example, enterprising employees in Aftersales have developed their own set of measures for working in harmony with environmental and social objectives in twelve action areas.

During the reporting year, Porsche amended its own system of directives and committees. The Porsche Environment and Energy Cockpit became a steering committee. In addition, the first steps have been taken towards organising the pan-company “Sustainability Expert Group”, which will be expanded to cover the relevant German subsidiary companies. The Group Sustainability Directive is being revised for publication in spring 2018. It will provide group-wide, binding rules on the fundamental processes underlying organisational structure, topic management, project implementation, and communication and reporting for all sustainability topics. In this way, Porsche is seeking to achieve even broader and more rigorous sustainability implementation within the company.

Porsche Strategy 2025 Targets

Sustainability in the Porsche Strategy 2025
Shaping the future of the sports car – this is the theme of Strategy 2025. In 2016, the workforce and the management came together to develop a new corporate strategy for the next decade. Their deliberations focused on the prospective product portfolio. The sports car of the future combines the tradition and values of the Porsche brand with innovative technologies and sustainability. Themes such as electromobility, digitalisation and connectivity play a major role. The company makes it its business to define the exclusive sports mobility of tomorrow. Its main objective is to achieve value-generating growth. This is the only way Porsche can make sustainable investments in innovative technologies, in new products, and in its team.

Porsche excites customers with its unique products and services. The company wants to further cement its reputation as an excellent employer and business partner that fulfils its social and environmental responsibilities. Profitability, efficiency and social responsibility are not conflicting aims for Porsche.

Throughout their activities, all of the company’s departments, from Development to Sales, will pay close attention to sustainability and ensure that it is driven forward. Consequently, all departmental strategies will incorporate sustainability in relation to both targets and projects. Examples of this include specific measures to increase sustainability in the supply chain, to improve products’ environmental credentials throughout the life cycle and to further integrate sustainability into key company processes such as risk management. All corresponding topics are structured in accordance with the four central sustainability action areas at Porsche, as well as in the additional work packages “Integration in Processes” and “Communication and Stakeholder Dialogue”. The sustainability team in the Policy and External Relations department is responsible for the further definition and measurement of content and ongoing implementation of the cross-cutting issue of sustainability, working alongside the individual managers in the specialist company units.


STAKEHOLDER-MANAGEMENT
(GRI 102-40, 102-42, 102-43, 102-44, 102-46)
Porsche engages in two-way conversation with relevant stakeholder groups and continuously strengthens this dialogue. In addition, in 2017 the company expanded its stake­holder management in relation to sustainability themes and added a further international dimension to it. For example, the regular stakeholder surveys were extended to take in the Chinese and British markets, and direct dialogue with key suppliers was strengthened through the organisation of workshops.

Dialogue with external stakeholders
(GRI 102-40, 102-43, 102-44, 102-47, 102-48)
A range of communication channels and event formats support Porsche’s engagement with external stakeholders. The Porsche magazine Christophorus is published in eleven languages around the world. The community newspaper targa – Nachrichten für die Nachbarn (targa, the residents’ journal) addresses local residents who live in proximity to Porsche’s sites. The online newsroom with its Twitter and Instagram channels, the web-based TV channel 9:11 Magazin and the Porsche website are all examples of key sources of information for thought leaders, decision makers and customers. Porsche also seeks to address stakeholders personally. Three events in 2017 provided progress updates on construction projects at Porsche sites. For the first time these included the communities of Weissach and Mönsheim in the immediate vicinity of the Porsche Development Centre. More than 500 interested locals took the opportunity to find out about how work was progressing, ask questions, make suggestions and voice their opinions.

Cooperating in networks and engagement in sustainability initiatives also form part of our stakeholder dialogue. Since 2016, Porsche has been a member of the Bundesdeutscher Arbeitskreis für Umweltbewusstes Management e.V. (B.A.U.M. – German Environmental Management Association). In 2017, Porsche joined the German Business Ethics Network and became a signatory to the state of Baden-Württemberg’s WIN! charter for sustainable business, marking its commitment to economic, environmental and social responsibility. The company engages in dialogue with local politicians through an “intermunicipal working group”. In 2017, Porsche organised sustainability workshops for selected suppliers for the first time. Participants in these events discussed new approaches to collaboration on sustainability aspects.

The Porsche Sustainability Advisory Committee, formed in 2016, met the Executive Board of Porsche AG on two occasions in 2017. The committee is composed of internationally renowned representatives from the scientific and public communities (Prof. Sonja Peterson, Prof. Lucia Reisch, Prof. Maximilian Gege, Prof. Ortwin Renn and Prof. Klaus Töpfer) and acts as an idea generator and driver for change related to sustainability. This cooperation will be further deepened in 2018.

Dialogue with internal stakeholders
(GRI 102-40, 102-43, 102-44, 102-47)
Transparency, featuring open and direct communication, is a major component of Porsche’s day-to-day corporate culture. Employees have a wide range of opportunities to learn about the company’s activities and latest developments, for example through the employee magazine, local site newsletters, the inhouse TV channel and also the intranet. Since 2017 employees have been able to download an app to use the Porsche intranet on their own devices. Regular works and depart­mental meetings, employee information events and specific topic and innovation weeks also form part of the diverse programme of internal communications. In 2018 a week dedicated to the topic of sustainability will aim to raise employee awareness on the subject even further.

Porsche encourages its employees to contribute their own ideas through its internal ideas and innovation management set-up. Complaints and personal concerns are treated in confidence where requested. The Porsche ombudsman system receives anonymous complaints and reports on any illegal behaviour in relation to the company. In 2017, more than 18,000 employees took part in the mood barometer (Employee Opinion Survey), which questioned Porsche employees along with those at subsidiaries.

Sustainability Organisation
(GRI 102-46, 103-1)
A transparent internal structure with defined roles and responsibilities allows sustainability topics to be handled rigorously and effectively throughout the business. The Executive Board of Porsche AG acts as the highest authority on sustainability, meeting twice annually as the Sustainability Board. These meetings set the basic strategic direction and also decide on the realisation of lighthouse projects and far-reaching sustainability measures. The sustainability team of the Policy and External Relations department acts as an interface for all aspects of sustainability within the business. It is delegated with the coordination of all sustainability activities, implementation of the sustainability strategy, reporting, and integration with the Volkswagen Group’s group-wide sustainability activities. Furthermore, it ensures internal and external communications and the continual expansion of stakeholder dialogue. The Sustainability Expert Group is responsible for developing the content of sustainability activities and making appropriate proposals to the Executive Board. It encompasses members from all departments across the company and meets four times each year. The standing members of the Expert Group represent specialist sustainability-related units within all departments in the company, where they act as multipliers for sustainability topics.

The Porsche Sustainability Advisory Committee, formed in 2016, met the Executive Board of Porsche AG on two occasions in 2017. The committee is composed of internationally renowned representatives from the scientific and public communities (Prof. Sonja Peterson, Prof. Lucia Reisch, Prof. Maximilian Gege, Prof. Ortwin Renn and Prof. Klaus Töpfer) and acts as an idea generator and driver for change related to sustainability. This cooperation will be further deepened in 2018.


MATERIALITY ANALYSIS 2017
(GRI 102-40, 102-42, 102-43, 102-44, 102-46, 102-47, 102-48, 103-1)
An anonymous international online stakeholder survey was conducted in autumn 2017 to investigate the thoughts and expectations of 7,200 representatives of relevant groups on sustainability at Porsche. The survey therefore targeted three times as many people as in 2015. Responses were received from some 950 people including customers (67.3 per cent), business partners and analysts/investors (7.5 per cent), politicians and public authorities (4.8 per cent), NGOs (3.0 per cent), Porsche employees (2.7 per cent), academics (2.4 per cent) and other participants (12.3 per cent), including participants from China and Great Britain for the first time.

More than two-thirds of those surveyed reported being “very satisfied” or “satisfied” with Porsche’s sustainability efforts. This represents an improvement of twelve percentage points compared with the previous survey. It revealed that 89 per cent of respondents do not see any conflict, generally speaking, between sustainability and the manufacture of premium sports cars. More than half of participants (58 per cent) stated that their impression of Porsche was “hardly” or “not at all” affected by the diesel affair. Just under a third (29 per cent) felt it was actually a concern, however. All stakeholder groups expect open, honest and transparent communication on this matter as well as a clear response to the challenge of low-emission, sustainable mobility. On the whole, respondents prioritised the themes “vehicle safety”, “fuel consumption and vehicle emissions” and “long-term customer relationships”.

The members of the Sustainability Advisory Committee also had the chance to provide detailed feedback on sustainability at Porsche and opportunities and risks during individual expert interviews. They presented specific recommendations for action to further shape Porsche’s engagement. Topics including “alternative drives”, “reduction in corporate CO₂ emissions” and “expansion of the charging infrastructure” were central to their suggestions. The impetus generated by the members of the Sustainability Advisory Committee will be maintained by means of deeper integration into the company’s sustainability management and an expansion of external stakeholder engagement in the future.


MATERIALITY MATRIX AND REPORTING 2017
(GRI 102-44, 102-46, 102-47, 103-1)
Porsche’s impact on the environment, employees and society was investigated by members of the Sustainability Expert Group and representatives from the company’s relevant specialist units during an internal workshop.

In accordance with the Global Reporting Initiative (GRI) standards, topics that are material for reporting in 2017 are those that are highly relevant for stakeholders and themes with medium and high impact: vehicle safety, vehicle fuel consumption and emissions, long-term customer relationships, materials and sustainable materials, energy and emissions during production, long-term economic stability, new mobility concepts, staff development, occupational health and safety, environmentally compatible logistics, resource consumption during production, attractive employer, responsibility in the supply chain, digital transformation, compliance, and corporate co-determination.

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