Sustainability Management

The new Porsche Sustainability Strategy 2030 translates the key challenges for the company into six strategic fields of action that are crucial for the sustainable development of the sports car manufacturer. They consistently align Porsche's commitment: The impact of business activities and society's expectations of the company are always the focus.

Businesses are key participants in society. Commercial activities have a diverse range of social, economic and ecological impacts. As employers and economic actors, however, companies also depend on the acceptance and well-being of society. The coronavirus COVID-19 pandemic made this dependency particularly tangible during the reporting year. Society rightly demands that businesses meet their obligations and are accountable and put their power behind universal concerns. 

Every year more resources are consumed around the world than can be naturally produced. The planet’s population will grow to over eight billion people by 2030. Companies are operating in a new economic context shaped by global competition for resources, the threat of climate change, political upheaval and the global consequences of the pandemic, rampant consumer demand, and the changing views and standards of a range of interest groups in relation to sustainable development. The automotive industry is especially affected by this. It is facing major change and new challenges.

The new Porsche sustainability Strategy 2030 identifies the principal challenges for the company in six action areas that are key to the sports car manufacturer’s sustainable development. These action areas provide a consistent focus for Porsche’s activities. The impact of business activity and of society’s expectations for the company are always at the core. With its strategyic action areasfields, Porsche is meeting global risks head-on while simultaneously embracing new opportunities to influence and innovate, in collaboration with its suppliers, employees and customers, across the entire value chain of the business. 

Porsche is organising its sustainability activities in the following six action strategy fields:

  • Decarbonisation
  • Circular Economy
  • Diversity
  • Partner-to-Society
  • Supply Chain Responsibility
  • Governance & Transparency 

Progress on this journey is subject to regular evaluation and the strategy is continually updated to secure the best possible outcomes. Porsche also engages actively with its internal and external stakeholders as well as with recognised experts such as the members of the Porsche Sustainability Council.

With ambitious aims, the Porsche Sustainability Strategy 2030 is measured against scientific findings and external expectations that create the framework for effective action. The company is also drawing on its inherent values and the brand’s calling to be a bold and visionary pioneer of sustainable mobility. Porsche seeks to shape its future responsibly and successfully, with and for society.

Taycan Turbo S, carrara white metallic, Taycan Media Drive, Europe, 2019, Porsche AG

Strategy field: Decarbonisation

Porsche is committed to the climate protection targets agreed in Paris in 2015 and assumes its responsibility for cutting environmentally harmful emissions. The product portfolio is at the heart of the company’s activities: with innovative products and technologies as well as attractive services, Porsche aims to shape the future of mobility. We develop pioneering drive concepts that significantly reduce our CO2 emissions. Our clear focus is on electric mobility. By 2025, half of all new Porsche models will have an electric motor. The Taycan heralded the start of a new era at Porsche: an emotive sports car that brings together tradition and the future. Over and above its electrification strategy, Porsche has anchored in its strategy the principle of continuous decarbonization of its products and company processes across the entire life cycle. In addition to the CO2 emissions generated by the vehicle itself during operation, there is also a particular focus on emissions within the supply chain.

Paint shop, Taycan factory, Stuttgart-Zuffenhausen, 2019, Porsche AG

Strategy field: Circular Economy

The use of sustainable materials and consideration of the environmental impacts is crucial to developing a modern and future-proof vehicle architecture. The longevity of Porsche sports cars, their high-quality workmanship, and the use of hard-wearing materials are fundamental aspects of the Porsche principle, which the company aims to strengthen further through its commitment and dedication. Porsche has set itself the objective of closing material cycles and reintroducing used raw materials back into the production process at the end of the vehicle life. The company considers the environmental impacts of the materials used in its products and evaluates these according to sustainability criteria. Further developing approaches to the circular economy is a strategic priority here. This objective is also reflected in the vision for the production of the future. In line with the “Zero Impact Factory” principle, the goal is to prevent negative environmental impacts to the greatest possible extent through the production processes.

Strategy field: Diversity

No Porsche sports car comes into being without the people who design and build it. That is why the focus is on people at Porsche. Every employee contributes to the company’s success with their unique abilities. Promoting diversity and ensuring equality of opportunity is another priority of the sustainability strategy. The focus here is on the advancement of women and international diversity, as well as on strengthening intergenerational cooperation, the networking opportunities for members of the LGBTIQ community, and the proactive integration of people with disabilities, thereby ultimately ensuring an open and empowering work environment in which everyone has equal opportunities. The strategic goal is to create mixed teams in which different strengths and competencies complement one another in the best way and where all employees can develop their potential to the full.

Strategy field: Partner-to-Society

Porsche sees itself as an active participant in society – whether at its own locations, or indirectly through the suppliers and business partners that provide Porsche with goods and services. The company aspires to be a valuable and responsible partner to society – locally, regionally and globally. Porsche targets its support at those areas where it is needed most, and contributes to environmental and social causes in numerous countries and regions. The company will do even more in the future to support socially disadvantaged people and groups, as well as to promote culture and sport. Porsche also intends to increase its involvement in education, environmental conservation and biodiversity, as well as its commitment to improving living and working conditions in countries in the Global South.

Supply chain, 2021, Porsche AG

Strategy field: Supply Chain Responsibility

Porsche’s corporate responsibility does not end at the company gates, but extends across the entire value creation chain. With the expansion of the product portfolio and the use of new technologies, the supply chain has assumed ever-increasing importance in this regard. Porsche is therefore systematically placing the continuous management of supplier relationships in terms of sustainability at the centre of its strategy. Since its introduction in July 2019, the sustainability rating (S rating) for suppliers has been a binding criterion in the awarding of contracts. It ensures sustainable procurement and promotes compliance among suppliers with human rights standards and employment practices, as well as responsible resource management. An additional aim, as a continuation of current projects with the Volkswagen Group, is to systematically analyse the materials that are used and check them for potential risks in relation to origin, production conditions and raw material extraction.

Strategy field: Governance & Transparency

Porsche sets itself the highest standards: ethical conduct is essential for Porsche, not least because the trust that customers, partners and society place in the company depends on this. Integrity in conduct and business therefore forms the basis for all company activities. In this field, Porsche is aiming strategically towards further increasing transparency and responsible management in all relevant areas. A self-evident requirement for Porsche is to be perceived by business and society as a strong partner and model company. To that end, the company also undergoes assessment by external organisations, and bases its improvement measures on the results.

A Second Life for traction batteries

In the scope of its Second Life strategy, Porsche is engaged in a pilot project to revitalise used traction batteries. At the end of their useful life in the vehicle, the batteries will be dismantled and the individual modules reused for stationary energy stores. In addition to technical feasibility and development of prototypes, the scalability of the project for implementation as a series solution will be key to the long-term and sustainable reuse of old batteries. To achieve this, the company is also developing innovative systems to test and measure the quality of used batteries, so that only suitable batteries are selected for the process.

In addition, comprehensive concepts for returning used batteries from Porsche Centres throughout the European Union are being developed. Depending on the findings of the pilot project, concepts for other regions of the world will be analysed and evaluated in order to implement tailored second-life concepts in cooperation with importers in the key Porsche markets. The Second Life strategy for HV batteries makes an important contribution to conserving resources and giving sustainable support to the energy revolution.

Porsche Turbo Charging, Taycan 4S, Rapid-charging park, Leipzig, 2020, Porsche AG

PAVE – Porsche Aftersales Vocational Education

The Porsche Aftersales Vocational Education (PAVE) programme trains highly qualified employees from Porsche’s worldwide dealership organisations and other Volkswagen Group brands. Training for disadvantaged young adults is a particular focus of the programme.

The foundation stone for PAVE was laid more than ten years ago in the Philippines: the first school cooperation project was set up in Manila in cooperation with the Don Bosco Technical Institute and local importer PGA Cars Inc. Since then, PAVE has steadily developed into a global programme with bases in Asia, South Africa and Mexico. Given that local schools and the Porsche dealer organisations are involved, PAVE creates multiple-win situations:

  • Young people receive high-quality training that gives them the best opportunities for the future thanks to the direct involvement of the dealer organisations.
  • Regional Porsche dealers gain access to the best-trained employees.
  • Training skills are embedded locally, ensuring that the programme has a broad and long-term effect.

The activities in the area of initial vocational training contribute to PAVE having a far-reaching positive impact on society. In China, for example, PAVE activities have resulted in the implementation of an entire vocational training programme at national level. Meanwhile, in South Africa, the Department of Education is currently being assisted as it incorporates future-oriented e-mobility skills into the national curriculum.

Sustainability performance recognised with "Prime" Status

In 2020, Porsche was awarded “Prime” status for the first time by the sustainability rating agency ISS ESG for the first time, which means the sports car manufacturer is ranked among the best in its sector. ISS ESG assesses sustainability performance on the basis of more than 100 standardised, industry-specific indicators covering the environment, social factors and company leadership. Each year, over 800 different indicators are analysed at in excess of 8,000 companies around the world using information in the public domain and direct dialogue with the businesses themselves.

ISS ESG stated that its assessment of the Porsche’s sustainability performance was particularly positive in the areas “Staff and Suppliers”, “Society and Product Responsibility” and “Environmental Management”. Above-average results were also confirmed in the industry-specific fields “Product and Data Security”, “Sustainability Standards in the Supply Chain”, “Alternative Drives” and “Life Cycle Analyses”. For its assessments in the automotive industry, ISS ESG focuses particularly strongly on the company’s strategy for alternative drives, especially all-electric vehicles. With the Taycan and the all-electric successor to the Macan, as well as its further electrification strategy, Porsche is ideally placed for the future in this area. The company believes this independent external assessment is an important instrument and source of input for the continuous improvement of its sustainability performance.

The industry’s first “Green Schuldschein”

The transition to climate-neutral products and forms of production that feature a more closed-loop approach will have a key impact on business and competitiveness in the future. As part of the European Union’s “Sustainable Finance Strategy”, more and more capital will be directed into into sustainable investments. Financial products that are used to pursue sustainable objectives form part of this trend. Porsche already embarked on a new path in August 2019, with the refinancing of sustainable projects. The sports car maker is the first automotive manufacturer to offer a Green Schuldschein (bonded loan), with the one billion euro transaction being the largest to date. With the aim of refinancing its portfolio of projects, Porsche has earmarked the funds raised for the development of the fully electric Taycan, along with investments in modern, energy-efficient production buildings and facilities that will be used exclusively for manufacturing and developing battery-powered vehicles.

The company has obtained “Clean Transportation” certification from the Climate Bond Initiative (CBI) for the composition of this portfolio of green projects. This has been carried out in accordance with the Green Bond Principles of the International Capital Market Association (ICMA) and was verified by the rating agency ISS ESG. ISS ESG and CBI confirmed that the funds had been used correctly and completely for the project portfolio in the scope of a post-issuance certification carried out in September 2020. The refinanced green project portfolio supports the United Nations Sustainable Development Goals (SDGs), notably target 9.4 (reduce CO₂ emissions through clean technologies) and 11.2 (provide access to sustainable transport systems). In its automotive operations, Porsche’s objective is to increase the share of sustainable refinancing from its current level of around 50 per cent to 100 per cent by 2030.

Taycan Turbo S, carrara white metallic, Taycan Media Drive, Europe, 2019, Porsche AG

Sustainable Development Goals

Solar installation, 2019, Porsche AG

The United Nations Sustainable Development Goals (SDGs) form the core of the 2030 Agenda for Sustainable Development. The 17 global sustainability goals that have been defined are intended to reconcile economic progress with social justice and environmental compatibility.

Porsche takes seriously its responsibility to counter the depletion of natural resources and climate change and make a positive impact on social development. The company is committed to the SDGs and is focusing its activities for sustainable development on the key topics that can make a tangible contribution through its own business model and associated value creation processes. Taking account of internal and external sources, there are seven SDGs to which Porsche can make a significant difference through its sustainability activities.

SDG 4 – Quality education

For Porsche, education is the a key to sustainable development. This is why the company offers its trainees and staff a diverse programme of vocational and professional training,. All employees have access to systematic further development opportunities based on their needs. At its company sites as well as on the international stage, Porsche is also committed to a range of educational and scientific projects, including regional schemes in Stuttgart and Leipzig with the “Ferry Porsche educates” initiative, as well as the international “Porsche Aftersales Vocational Education” (PAVE) programme, which aims to provide and expand local vocational education for Porsche’s sales organisations as required around the world.

SDG 8 – Decent work and economic growth

Porsche creates high quality jobs to create value and achieve sustainable growth, and affirms its commitment to observing and protecting human rights beyond the factory gates and throughout the supply chain. The sports car manufacturer therefore not only assumes responsibility for its employees and invests in their future. It also sets high, internationally recognised standards for social and human rights that must be met by its suppliers. In this way, Porsche provides effective support to the protection of humane working conditions and categorically rejects all forms of modern slavery, such as forced, mandatory and child labour.

SDG 9 – Industry, innovation and infrastructure

Porsche is synonymous with innovative products and services. By expanding a high-performance charging infrastructure for electric vehicles, permanently working to find innovative solutions, and trialling digital technologies and future trends, the company is playing an instrumental role in sustainable development. The Taycan, Porsche’s first fully electric sports car, illustrates the mobility revolution. The new plant constructed for production of the Taycan in the company’s traditional main Zuffenhausen works is also a good example. Here, Porsche has upgraded the entire site to make it CO2 neutral.

SDG 11 – Sustainable cities and communities

The sports car production at the main plant in Stuttgart-Zuffenhausen is located in a mixed-use zone, surrounded by residential areas. Consequently, the company is directly confronted with the challenges posed by increasing urbanisation of the planet. This is another reason why Porsche feels a sense of duty to actively contribute to the sustainable development of cities by providing smart solutions. Resource-efficient production processes and products, as well as technological and social innovation, are the key factors for the company in this regard. Porsche is putting all its energy into mobility that is fit for the future and is including forward-looking concepts such as sharing, rental and leasing concepts in its portfolio to help maximise flexibilize urban mobility.

SDG 12 – Responsible consumption and production

Porsche not only works non-stop on products that are more environmentally and resource-friendly, but also undertakes to make its manufacturing processes as efficient as possible and sparing on the environment. The ecological and social quality of processes is equally as important as the economic, functional and technical qualities. The company places the utmost value on compliance with international rules on employee, health and environmental protection. For this reason, ethical perspectives and standards are also written into the sustainability requirements that apply to the Porsche supply chain.

SDG 13 – Climate action

Climate change is one of the most pressing issues of our time. Porsche is embracing the challenge of pushing technological boundaries, reducing fuel consumption and developing innovative drive systems. The company is aiming for total decarbonisation and CO2 neutrality, in this way making a contribution to achievement of the UN climate goals. Throughout the value chain, Porsche follows the principle of avoid, then reduce, then offset. The conservation of raw materials and energy is another huge priority. For example, the sports car manufacturer already obtains 100 per cent of its production electricity requirement from renewable sources and is also pushing ahead with additional climate protection projects at its individual sites. Porsche continually reduces the CO2 emissions of its own car fleet and offsets the CO2 emissions of its vehicle pool. As its development of electric models gathers pace, Porsche is not only making a contribution to global climate protection but is also helping to improve air quality in cities. 

SDG 17 – Partnerships for the goals

Sustainable mobility solutions and a future world that is worth living in can only be created by working together. This is why a process of permanent exchange with stakeholders and the strengthening of partnerships form the essential basis of Porsche’s sustainability strategy. The company is active in a number of networks including the “German Environmental Management Association” (B.A.U.M.) and the “German Business Ethics Network” (DNWE), and also engages in cross-industry sustainability initiatives such as the “Value Balancing Alliance”. Through this cooperation, Porsche supports knowledge transfer for innovative and relevant approaches from the perspective of sustainability and ensures that the needs of its own stakeholders are embedded and represented within the sustainability strategy.

 

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Consumption data

Taycan Turbo S

WLTP*
  • 0 g/km
  • 25.6 – 24.3 kWh/100 km
  • 390 – 416 km

Taycan Turbo S

Fuel consumption / Emissions
CO₂ emissions combined (WLTP) 0 g/km
Electric power consumption* combined (WLTP) 25.6 – 24.3 kWh/100 km
Electric range combined (WLTP) 390 – 416 km
Electric range in town (WLTP) 434 – 477 km
NEFZ*
  • 0 g/km
  • 28.5 kWh/100 km

Taycan Turbo S

Fuel consumption / Emissions
CO₂ emissions combined (NEDC) 0 g/km
Electric power consumption* combined (NEDC) 28.5 kWh/100 km