Porsche revised its sustainability strategy in the reporting year 2019 with a focus on its long-term objective of achieving value-creating growth – for economic values and social responsibility – while simultaneously reducing the environmental impact of the company. It is taking action across the entire value chain to improve sustainability within its corporate activities on all levels. The Porsche Sustainability Index also defines clear goals to be reached by 2025.
Porsche Sustainability Index
Porsche has defined suitably forward-looking goals based on the new action areas of Innovative Mobility, Reliable Partner and Go to Zero featuring a number of specific milestones. The company uses the Porsche Sustainability Index to set itself ambitious targets for the action areas, which must be reached by 2025.
Porsche developed its sustainability index in an effort to devise a tool for collectively measuring all of its key sustainability requirements. It was inspired to act by a series of cross-sector benchmark and best-practice analyses. At the behest of the Porsche Executive Board and with the support of the Porsche Sustainability Council, the index was subsequently defined via internal interdepartmental workshops and expert discussions in a process coordinated by the core sustainability team. Porsche will continue to record the development of the index’s key figures.
The activities of the Porsche Sustainability Index are focused on three topics within each respective action area, which represent the central challenges for Porsche in terms of ensuring corporate sustainability both along the value chain and throughout the product life cycle. All topics comprise strategic and representative parameters that reflect a quantifiable part of Porsche’s sustainability activities. In this way, different key figures with various units are offset against each other in the sustainability index.
What method does Porsche use in this regard? The status per key figure is calculated based on the change between the current value and the value in the baseline year 2018. The key figures are thus standardised and weighted equally, and are totalled for each action area with the respective status ultimately expressed on a scale from zero to 100. Porsche is striving for 100 per cent achievement in all three action areas by the year 2025. This is also the target for the Porsche Sustainability Index as a whole, which is calculated as the average of the different action areas, with target achievement of all three areas given equal weight. This ensures that any negative results in a particular action area cannot be offset by better outcomes recorded elsewhere.
The Porsche Sustainability Index reinforces the core objective of its business sustainability strategy: achieving value-creating economic and social growth while simultaneously reducing the environmental impact of the company.
Status in the 2019 reporting year
During the reporting period, major gains were achieved in the action area Innovative Mobility. In addition to other factors, several top placements in customer satisfaction surveys contributed to the high target achievement level of 34 per cent. The decline in the action area Go to Zero can be attributed to the fact that the measures implemented in 2019 to reduce CO2 emissions over the product life cycle have a more medium-term impact. These measures include, for example, the market launch of the fully electric Taycan and the requirement for suppliers to produce high-voltage batteries using electricity generated from renewable sources.