Social and ecological sustainability does not run counter to corporate success but in fact contributes to this goal. Long-term economic success is likewise a fundamental requirement for effective sustainable operations.
The company enjoys excellent profitability and has set itself the strategic target of a minimum operating return on sales of 15 per cent. Porsche took a new approach to the refinancing of sustainable projects in the reporting year by posting a green bonded loan of one billion euros – the largest of its kind to date and the first to be issued by an automotive manufacturer. Over 100 institutional investors, including banks, pension funds and insurance providers, are participating in the scheme.
At the same time, Porsche is making major investments to ensure it retains its innovative capacity and can embrace the digital revolution. Digitalisation impacts all areas of the company – from internal processes to the interaction with customers to the development of new products and services. An innovation management system that extends across all of the company supports the generation of new impetus, driving the testing of technologies and trends and encouraging Porsche’s employees to take the initiative to shape mobility in sustainable ways.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “economic stability” contributes to the reporting requirements of GRI 201: Economic Performance. This information is measured and reported on the basis of the Porsche AG Group’s financial analysis, financial data and calculations of added value.
Long-term customer relations
In the field of customer relations, Porsche sets high standards with regard to maintaining long-term customer satisfaction and loyalty. “Inspiring customers with a unique product and brand experience” is therefore one of the four main aims of the Porsche Strategy 2025 Plus. A diverse collection of measures that are presented to customers as a uniform package help ensure that this objective is met. Consequently, the Sales and Marketing division uses a variety of measures to strengthen customer satisfaction and loyalty over the long term and to further optimise the customer journey at Porsche.
The sports car manufacturer sets great store by asking customers early and often about their requirements in relation to future car generations and mobility services so that these can be taken into account during the product development process. Porsche also obtains regular feedback from its customers for the purpose of making ongoing improvements to existing cars and services. The company developed the Porsche Advisors Club in collaboration with Porsche drivers, thus offering the latter the chance to submit their opinions and suggestions on cars and concepts at any time, or upon specific developmental milestones being reached.
Personal dialogue with customers is a key element in the maintenance of long-term customer relations. Queries sent directly to Porsche are answered as quickly as possible by a team of highly qualified specialists. In the reporting year 2019, around 141,000 customer inquiries were processed at Porsche AG and the global sales subsidiaries alone. Over the same period, the international Customer Interaction Centre additionally answered around 665,000 questions on topics relating to all aspects of Porsche.
Thanks to digitalisation, the focus is now on the customer more than ever. Future technologies enable a more intensive and, above all, more interactive experience of the world of Porsche. Depending on the market, customers are offered a range of innovative communication channels such as apps, social media, live chats and messenger services that ensure easier and faster digital communication between them and the company. All these communication options are pooled on the My Porsche customer portal and the customer relationship management system in a user-friendly manner.
Direct contact in retail is a key element in generating customer satisfaction. Against this backdrop, the ongoing qualification of employees at the Porsche Centres takes on fundamental significance. The excite! programme specifically trains employees from the Porsche Centres, sales subsidiaries and Porsche AG to transform all contact with customers into a unique experience. This programme has been introduced to great effect in six markets with around 5,500 employees from over 220 Porsche Centres.
To prepare for the launch of the Porsche Taycan, “Customer Interaction” provided customers with advice on all aspects of electromobility. This campaign also helped support the dealer network in handling all technical and non-technical queries relating to the electrification of the product portfolio. In the reporting year, the specially developed training options within the Road to Taycan programme prepared Porsche dealers to answer car-related questions and general inquiries concerning electromobility and corresponding services. Running for over 18 months and featuring digital training modules and media as well as classroom-based training, Road to Taycan ensured that all sales advisers worldwide had been professionally prepared for the Taycan by the end of the reporting year 2019.
In committees that meet regularly, Porsche AG and representatives of the sales subsidiaries vote on measures relating to consistent communication for ensuring long-term customer relations. At the Product and Customer Satisfaction Forum executive body, which meets every month, the responsible departments report on current and global developments concerning product quality and customer satisfaction.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “long-term customer relations” corresponds to the reporting requirements of GRI 418: Customer Privacy. Porsche gives high priority to individual data privacy and the right of data subjects to determine what is done with their data. The Porsche Data Protection Management System establishes the framework conditions and the foundations for Porsche’s data protection strategy. The right of data subjects to determine what is done with their data is thus permanently anchored by Porsche within its organisation. In addition, the company issues global guiding principles for ensuring modern data protection as a safeguard for, and a driver of, the digital transformation. In this way, data protection is integrated – independently and without instruction – into all relevant company processes. Porsche’s data protection system and the relevant business processes are consistently designed to ensure that the statutory requirements are upheld at all times. Over and above the statutory requirements, Porsche has issued its own guidelines committing the company to further data protection principles, including data economy, purpose-based collection and confidentiality. Due to internal confidentiality guidelines, however, any reports received on specific data protection violations are not published.
Vehicle safety is of the utmost importance to Porsche, with the safety of the vehicle’s occupants being the top priority. In addition, making sure that other road users are also kept safe is another key aim.
Vehicle safety is a decisive criterion from the outset in the development of innovative, state-of-the-art vehicles. Alongside accident prevention – for example by fitting cars with ABS, ESP and automatic emergency braking systems – one of the main goals is to reduce the effect of an accident on the car’s occupants. With this in mind, during the development phase of a new model the deformation behaviour of the car body is precisely defined for a variety of frontal, lateral and rear-end impacts. Cars are also fitted with a smart restraint system consisting of airbags and seat belts. Crash tests are used to check the effectiveness of the safety systems. In a controlled crash, the impact of the entire vehicle slamming into an object, such as a wall, is investigated. Crash-test dummies with sensors are used, which enables the evaluation of the possible injuries of the occupants. Specific biomechanical limits must be adhered to, stipulating such parameters as maximum acceleration or deceleration of the head.
In addition to carrying out complete vehicle crash tests, component tests and computer simulations are used during development to tune the complete vehicle system and its behaviour in an impact and continuously improve it until it is ready for series production. The Porsche safety strategy defines the underlying guidelines, not only complying with statutory rules across the world but also meeting internal company requirements. The latter extend beyond the minimum required by law and involve a significantly broader load case portfolio. In this way, Porsche can ensure that, in the event of an accident, its drivers and their passengers, as well as other road users, benefit from the high level of protection synonymous with Porsche.
The ultimate vision for the topic of vehicle safety is the general avoidance of accidents. Porsche is therefore consistently working on the development of anticipatory systems. As a result, vehicle safety at Porsche will continue to make an important contribution to general road safety in the future.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “vehicle safety” contributes to the reporting requirements of GRI 416: Customer Health and Safety.
Alternative drive systems and vehicle emissions
Porsche aims to continuously reduce greenhouse gas emissions across its entire value chain. The use phase of cars will have by far the largest impact on greenhouse gas emissions for the foreseeable future, which is why particular attention is being paid to the hybridisation and electrification of the product portfolio, the improvement of petrol engines and the use of carbon-neutral fuels. Continuous efficiency gains, the development of alternative drive technologies, the use of renewable energy sources and lower pollutant emissions – for Porsche, resource-saving and environmentally friendly mobility is a primary strategic target. The themes of electromobility and vehicle architecture of the future are cornerstones of the Porsche Strategy 2025 Plus.
Porsche’s drive strategy aims to meet this objective, with the company adopting a three-pronged approach to drive concepts in the medium to long term. Porsche will simultaneously market cars with optimised petrol engines, powerful hybrid drives and all-electric sports cars. By 2025, electric drive is to be featured in 50 per cent of all new Porsche cars sold. Porsche will be investing more than six billion euros in electromobility by 2022 so as to further increase the proportion of electric cars in the long term.
In the reporting year, Porsche’s all-electric Taycan redefined sports car construction in terms of performance, driving dynamics and range while also representing a major step towards the decarbonisation of private transport. With over 20,000 prospective customers, the car already enjoys great popularity. The technological heart of the Taycan is its 800 V architecture, which enables a sporty driving performance and short charging times. In addition, the relevant performance level can be reached multiple times in succession. Given the charging output of as much as 270 kW, five minutes of recharging equates to a range of up to 100 kilometres in accordance with the WLTP measuring procedure. The Taycan boasts a maximum recuperation output of up to 265 kW and a maximum range of up to 450 kilometres according to WLTP. Based on the same platform and featuring a flat-bottom battery, the Taycan Cross Turismo will be unveiled in late 2020 as the first derivative. And the next generation of compact SUVs under the Macan label will also be all-electric.
The ability of electromobility to make a breakthrough depends on a needs-based, accessible and available charging infrastructure as well as on a customer-friendly charging process. Porsche is therefore adopting a holistic approach, working continuously on upgrading charging technologies and charging infrastructure. Using new products and services, it is looking to turn charging into a personalised customer experience that is both fast and attractive. The IONITY joint venture in which Porsche holds a stake is powering the expansion of a fast-charging infrastructure with 350 kW charging stations throughout Europe. This campaign aims to have over 400 charging parks enter operation by the end of 2020. For home charging purposes, Porsche has designed a wall box boasting an output of up to 11 kW, thus enabling customers to fully charge the Taycan overnight. When it comes to charging while on the move, the Porsche Charging Service offers users access to over 100,000 charging points in Europe plus the option of central billing.
Alongside electrification, Porsche is also pursuing further options beyond efficiency measures to reduce CO2 emissions in the use phase of petrol cars and to render this phase almost entirely carbon-neutral. One of the key technologies in this context is reFuels, which is the name given to synthetic liquid fuels that can be produced solely from hydrogen recovered via renewable energy and from carbon dioxide drawn from the ambient air – or from organic and other forms of waste. As reFuels can be deployed in the entire existing fleet, their use results in a wide-ranging and immediate reduction in CO2. In collaboration with its partners from science, industry and politics, the company is working intensively to develop these alternative fuels for series production. For example, Porsche is participating in the reFuels – rethinking fuels project, which forms part of the strategic dialogue for the automotive industry in Baden-Württemberg, which was initiated by the respective state government.
Porsche contributes to the achievement of the UN’s long-term climate goals and strives to ensure the ongoing decarbonisation of private transport. Through its new electrification strategy and the continuous intensification of company activities relating to the global industrialisation of synthetically produced and climate-neutral fuel, Porsche is aiming to position itself as a technology leader in this regard.
The Porsche range has been diesel-free since February 2018, and the company plays an active role within the Group in tackling nitrogen oxide pollution in German cities. Prior to Porsche’s decision to stop marketing diesel cars, Germany’s Federal Motor Transport Authority (KBA) ordered a recall of certain models for the purpose of performing software updates after irregularities were found in the engine control software.
In 2017, Porsche recalled the Cayenne 3.0-litre V6 diesel (Euro 6) in Germany as a result of individual technical properties of the engine control software. By mid October of that year, the KBA had approved Porsche’s proposed software update. Porsche has since recalled the cars concerned for a free software update, and around 96 per cent of those affected in Germany have already been processed accordingly.
The KBA ordered a recall of the Macan 3.0-litre V6 diesel (Euro 6) in July 2018 for a corresponding update. On 1 August 2018, it approved Porsche’s proposed solution. Since Porsche began this recall in October 2018, around 87 per cent of the affected cars in Germany have already received this free software update.
In addition, the KBA issued Porsche with recall notices for the Cayenne 4.2-litre V8 diesel (Euro 5 and Euro 6) and the Panamera 4.0-litre V8 diesel (Euro 6). It approved Porsche’s proposed software update for the Panamera 4.0-litre V8 diesel (Euro 6) in August 2019, and the recall process began in November 2019. The KBA approvals for the software update for the Cayenne 4.2-litre V8 diesel (Euro 5 and Euro 6) are expected to be issued in the first quarter of 2020. As soon as the technical solutions have been approved, vehicle owners will be contacted accordingly by their Porsche dealers and the recall action will commence in the first half of 2020.
At the National Diesel Forum, Porsche also confirmed its willingness to create voluntary software updates for the Cayenne and Panamera (184 kW and 221 kW) 3.0-litre V6 diesels (Euro 5). Approval for this voluntary software update is expected in the first quarter of 2020, with the voluntary service campaign set to launch thereafter.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “alternative drive systems” and “vehicle emissions” contributes to the reporting requirements of GRI 305: Emissions. However, the figures in this report that are required for this indicator refer solely to emissions that come from production and administrative operations. For this reason, the consumption and emissions figures for all car models are reported instead.
New mobility options
Urbanisation, increasing prosperity, growing global demand for mobility and the associated higher environmental pollution trigger innovation and market dynamics for the adaptation of the car and its use. These factors are leading to the diversification of drive concepts in a move towards highly efficient, alternative options, as well as towards innovative, flexible and needs-driven car usage models. Digitalisation, connectivity and customers’ desire for more flexibility and sustainability are accelerating this change.
In order to make individual mobility sustainable and to turn smart cities into a reality, Porsche is developing innovative products and services to shape flexible and convenient mobility. These include pioneering parking solutions (such as intelligent parking space searches and convenient, ticketless car park usage, etc.), needs-driven car usage (such as flexible usage models and premium rental at Porsche hotspots), seamless integration with other forms of transport and the best possible use of electric cars thanks to optimised charging services and products (for charging at home and in public places). Agile interdisciplinary teams are developing concepts that take their lead from customers’ latest requirements and putting them into action. This development is underpinned by close cooperation between the company’s different departments, an open information policy, early piloting in different markets and stakeholder involvement.
Another key area involves Porsche’s corporate mobility management options, which aim to ensure sustainable mobility behaviour on the part of employees. Interdepartmental projects have seen Porsche develop comprehensive measures at its sites in order to reduce the environmental and social impact of employees’ mobility behaviour. The project is particularly relevant to the main plant in Zuffenhausen, which is located in an urban area. The employees based there and at the development site in Weissach receive a monthly subsidy for the company ticket for local public transport and the Job-Ticket offered by railway provider Deutsche Bahn. In addition, the Porsche plant ID card serves as a ticket for business travel on the local S-Bahn train route between the Weilimdorf and Zuffenhausen sites in Stuttgart. Porsche was also the first employer in the Stuttgart region to enables its staff to use the company ID card as a free public transport ticket when air pollution alerts are in effect.
In the reporting year, Porsche established a work bike programme, and offers attractive benefits for employees when purchasing a bicycle. The company also engaged in particular efforts to expand the bike parking spaces as well as the shower and changing facilities at its Zuffenhausen site. A dedicated carpooling app also helps employees to set up carpools for travelling to work and on business. Drivers and passengers can enter their departure location, destination and desired departure time, with the app then combining these requests to generate a personal itinerary.
In addition, the availability of parking at the plant and mobility around the site grounds are being continuously optimised. Considerable improvements have already been achieved through the installation of a digital, stationary parking and information system as well as through the launch of the Porsche parking space app, which displays free parking spaces with pinpoint accuracy. The company has also successfully reduced the amount of traffic between the plants by further expanding the frequent bus shuttle routes.
Charging stations for private electric cars as well as Porsche company and leasing cars are available to employees and visitors alike. The charging infrastructure within the plants is also being continually enhanced. To enable the cars to undertake carbon-neutral local journeys, the charging stations are supplied with 100 per cent certified green electricity. Porsche intends to significantly increase the proportion of electric-drive and hybrid-drive cars within the fleet of company and leasing cars.
Further measures to reduce traffic and actively shape sustainable employee mobility are also planned.
In accordance with the Global Reporting Initiative Standards, information provided on the topic of “new mobility options” contributes to the reporting requirements of GRI 305: Emissions.