Porsche is aware of the importance of its reputation to the success of its business. The company regularly takes its stakeholders’ interests into account when it makes relevant decisions. In particular, its stakeholders include customers, employees, investors, business partners, and non-governmental organizations. Porsche sets great store by living up to the expectations of these stakeholders and society as a whole.
As the general public demands greater transparency, credible communication on ethical and responsible behavior is increasingly important. The significance of intensive communication with stakeholders is also rising: in a dynamic and increasingly complex environment, interactions between Porsche and its stakeholders must be open and constructive. The company wants to critically analyze social and ecological challenges, take the diversity of different viewpoints into account strategically, and discuss perspectives and priorities with stakeholders. A Group-wide policy has to ensure that internal and external communications are active, professional, transparent, consistent, and credible. Its purpose is to make sure that Porsche represents its positions with one voice and consistent arguments.
Transparency and communication
A company cannot be credible or enjoy robust relationships with its stakeholders without clear communication and transparency. Substantial communication content is also crucial to success. Therefore, Porsche prioritizes informing the general public and selected target groups about certain issues in an open, specific manner, such as: why is sustainability crucial to Porsche? What ambitious targets have been agreed? Have these targets been achieved using the reported methods? Transparency and dialogue about these topics are integral aspects at Porsche.
ESG management at Porsche
Porsche completed its IPO in 2022, which means that the expectations of the capital market have become more relevant. It is important to the company to be seen as sustainable and valuable by analysts and other professional stakeholders. In particular, it aims to meet the sustainability expectations of investors and other market players who focus on environmental, social, and governance (ESG) aspects. ESG describes a series of sustainability-related requirements that Porsche has to meet, and helps it categorize and evaluate its sustainability efforts more effectively. The company wants to accomplish outstanding results here to impress its stakeholders.
To this end, it initiated a project to launch a software-based ESG management system in 2021, which continued in 2022. Adopting an integrated approach, it complements the strategy with additional key topics.
The ESG management system should make it easier for the Executive Board and the relevant departments to monitor and manage their ESG contributions, interpret results, and produce regular reports. In the year under review, work started on the construction of a centralized IT system for this purpose. The outcome of this system is pooled centrally within the Sustainability department.
Furthermore, Porsche has determined performance indicators, which illustrate material non-financial ESG contributions and transparently demonstrate the Porsche business model’s contribution to sustainable development. Porsche aims to control and measure its ESG contributions strategically on the basis of these key indicators.
ESG ratings
Porsche has itself rated by external organizations to this end and bases its improvement measures on the results of these ratings. Selected independent rating agencies analyze the sustainability efforts of the company.
In its sustainability strategy, Porsche aims to be rated “in best class” in independent sustainability ratings, which would make it one of the leading companies in the automotive industry. Porsche considers this independent, external assessment to be an important tool and source of impetus: building on this, it can continuously improve its sustainability management. Porsche has already received ESG ratings from third parties in the past: the company considers the ESG rating of B- it received from ISS in October 2021 to be one of its most important achievements. Porsche received one of the highest scores in the automotive industry.
