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A way forwardAudi UK Corporate
Responsibility Report 2011
2
Contents
About Audi UK 3• Company relationships 4• Key successes 5
About this report 5
Executive summary 6
Our sustainability strategy 7
Understanding our impact on sustainability 8
Sustainability governance 9
Our approach 12
Energy and carbon 14
Natural resources 18
Quality of life 20
Good neighbour 25
Looking ahead 27
Key indicators 28
Economic indicators 28
Environmental indicators 29
Social indicators 33
Index to GRI reporting 35
Scope of reporting for activities 36
Useful links 36
Our sustainability plan 37
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About Audi UK
Audi UK manages the Audi brand in Great Britain and Northern Ireland and joined Volkswagen Group (VWG) UK Limited in 1966. The Group is a wholly owned member company of Volkswagen Group AG and the sole importer of Volkswagen, Audi, SEAT and Škoda cars and Volkswagen Commercial Vehicles in the UK.
We import cars and parts from Audi AG and work with our colleagues at the global headquarters in Ingolstadt, Germany, to fulfil our global ambition to delight customers. We don’t manufacture cars in the UK and we don’t sell them directly; Audi UK is the link between our factories and our franchised dealers. In the UK, our new and used car sales reached 124,305 vehicles with a total turnover of £2,781,694k including parts and accessories. Our vehicle sales represented a 5.9% market share across the range.
For more information on Audi’s global figures, strategy and future plans please follow this link to the 2011 global management report.
A large majority of our dealerships (Centres) form part of a market group owned by one investor. We also work with independent, stand-alone franchised Centres and Authorised Repairers who also form our retail network.
Relationship diagram
VWG AG – Global
Audi AG – Global
Audi UK – National
Audi Centres
Market area group
Audi Centres
Authorised Repairers
Audi Centres
Independent Audi Centres
VWG UK – National
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Company relationships
Audi UK’s balance sheet reporting is included in the Volkswagen Group UK figures (Companies House) and we share a head office and core services with the Group’s brands. The shared functions include parts and vehicle logistics, training and roadside assistance.
The headquarters of Volkswagen Group UK and Audi UK are located in Milton Keynes, where the Group’s national training facility is also based. Volkswagen Group UK’s national parts centre is held in a 65,000m2 warehouse in Dordon, Staffordshire. Around 810,000 parts are picked every month and sent out to 61 trade parts sites and the 130 Centres and authorised repairers that form our retail network.
VWG UK has contracts with Serco to supply head office staff across all brands and functions and with Capita to operate our outsourced customer call centre. This report does not include the sustainability performance of Serco or Capita staff or facilities operated directly by them; these are covered by Serco and Capita’s own corporate responsibility reporting.
Serco is committed to its long term partnership with VWG UK and is fundamentally aligned to its strategic goals and commercial objectives. In December 2011, 41% (67 people) of the Audi UK team were employed via Serco.
Social and passenger transport indicators reported here are for VWG UK headcount staff only. However, all policies and procedures for our Serco staff regarding recruitment, training, learning and development and staff welfare are aligned with those of VWG UK.
Please see the table on page 36 which sets out more clearly what Audi UK impact data is reported and which aspects of our wider business and supply chain are not in scope.
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Key successes
In 2011, Audi recorded its best ever worldwide result of 1,302,650 sales, a 19% improvement over 2010. In the UK, 124,305 new and used Audi models were sold, a 14% increase on 2010. To sustain the technological lead embodied in our Vorsprung durch Technik slogan, the brand plans to invest €13 billion, mainly in new products, between 2011 and 2015. By the end of 2012, our range will have expanded from today’s 37 models to a total of 44.
Recent additions, including the A1 Sportback, the all-new A3 and the new generation A4 and A5 ranges, will be joined imminently by, among others, the RS 4 Avant and the A6 allroad.
On the race circuit, Audi has competed in the 24 Hour of Le Mans sportscar endurance race every year since 1999, achieving a podium finish on all of these occasions as well as outright victory 10 times.
About this report
This report contains information about the sustainability activities of Audi UK. It outlines our strategic principles and presents practical examples. The body of the report is divided into sections covering sustainability governance, our stakeholders and our sustainability impacts and progress across four themes. The key sustainability indicators are set out from page 28.
This is the first Corporate Responsibility Report of Audi UK and the period under review covers the 2011 calendar year, which coincides with the Group’s fiscal year. As this is the inaugural report, we have also taken the opportunity to outline significant activities undertaken prior to January 2011. The next report covering 2012 activities will be published in the second half of 2013.
Unless otherwise indicated, the information in this report relates to the activities of Audi UK. When we use ‘Audi’ on its own, we mean the global Audi brand.
As part of VWG UK we share a number of common facilities and services. For this reason it is not possible to disaggregate many of our impacts or activities from those of VWG UK and so several activities and Key Performance Indicators (KPIs) are reported for VWG UK as a whole.
The business reports of the individual brands and companies within the Group are available on their respective websites.
Any queries relating to content should be sent to Rebecca Myrie, Corporate Responsibility Manager, Audi UK ([email protected]).
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Executive summary
As a premium brand, Audi has always believed it has a responsibility to maintain sustainable and ethical business practice. Our cars are renowned for their ever-increasing efficiency without compromising on quality or performance. It’s this philosophy we are striving for across the brand.
Whilst our colleagues in Germany are working towards the goal of carbon-neutral car production and lowering CO2 emissions across the range, in the UK we are focusing our efforts on the parts of the business within our sphere of influence. These include national departments, such as marketing and aftersales, as well as working with our network partners from the 130 Audi Centres and authorised repairers across the UK to identify ways to cut inefficiency and enhance the experience of staff, visitors and the community.
Factors that some dismiss as ‘soft’, those impacting the environment or society, are rapidly moving up customer and government agendas. They provide new opportunities to improve the ways in which we operate; leading companies are embedding sustainability as a way to future-proof their businesses by anticipating changes to legislation, resources and public expectations. Within Audi UK we have developed a robust approach to systematically identify our major impacts and address these whilst also working with our partners and stakeholders to amplify our progression.
For us, like any business, identifying improvements will always be a work in progress. However we hope that by publishing this roadmap of our journey and committing to regular updates we will be able to track our progress, focus on the key issues and celebrate our successes.
Martin SanderDirector, Audi UK
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Our sustainability strategy
The sustainability strategy for Audi UK and other parts of the VWG UK is integrated with the parent company’s model of sustainable development, which advocates long-term corporate policy that takes economic, environmental and social issues into account. The company aims to minimise the environmental impact of its business activities and actively participates with the UK Government and other stakeholders to progress towards sustainable mobility. Volkswagen Group’s global sustainability report can be viewed here. A key objective for Volkswagen Group UK is to strengthen and update its Environmental Policy in 2012.
The Audi brand does not regard vehicle performance and efficiency as mutually exclusive. By using technologies from its modular efficiency platform, the brand has steadily been able to improve the efficiency of its vehicles. At the end of 2011 it was able to supply 101 model versions with average CO2 emissions of less than 140g/km. Thirty-two drivetrain versions even achieve CO2 emission figures below 120g/km. Five different model versions from the A1 and A3 model lines post the best value of 99g CO2/km.
VWG UK aims to continually add value to the business through the people it employs. It seeks to attract, recruit and retain the very best employees who receive upper quartile pay and rewards packages. There are a series of mechanisms that are used to consult with employees and the company delivers a large portfolio of learning and development programmes.
Audi UK frequently communicates and consults with employees on matters of company interest through a series of mechanisms including an elected Employee Consultation Forum, staff talks from Board members and regular departmental meetings. Employees are also encouraged to provide feedback about the organisation through employee surveys, line management and its Business Improvement Group.
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Understanding our impact on sustainability
We report here on activities and impacts at the level of Audi UK, where these are brand-specific, and at the level of Volkswagen Group UK, of which we are part and which manages facilities and services for all the Group brands.
Our aim is to understand the impacts that are directly related to our operations and which we can therefore control. We will report on these annually as we seek to improve our performance to allow readers to compare these with those in reports for future years (some performance KPIs are reported at the level of VWG UK).
As well as controlling our own impacts, we seek to influence those of our stakeholders which are, in some instances, far greater than those of Audi UK. There are many different players with sustainability impacts at different stages of the Audi product journey from design and manufacture to the customer purchase and use.
For example:• Audi AG designs and manufactures the product to high environmental standards. We have no direct control
over this and our role is to communicate these values to the Centre retail network and customers• Our Centre network retails and supports the product. Although not part of Audi UK’s direct footprint, we
report on the steps we are taking to influence the sustainability of our national Centre network. We do not control these franchised dealerships and do not include the environmental performance of the network within the KPI’s presented within this report.
The boundaries for reporting are those which fall within the red area of Audi UK’s direct sphere of influence. For more detail on out-of-scope or reported activities, please see the table on page 36.
Boundaries for reporting on sustainability
Audi AG:product design and
manufacturing
Customer:purchase decision and product useProduct journey
Manage: Audi UK impacts
Influence: Centre network impacts
and key suppliers
Communicate
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Sustainability governance
VWG Group Services covers a large number of shared Group-wide functions, such as parts and vehicle operations, training and quality management. Under the Group’s Human Resources department are further shared functions such as facilities, occupational health, health and safety.
VWG Group Services has a Head of Environmental Management to drive and coordinate the Group’s work in this area; a key target for 2012 is the development of a Group Environmental Policy to be signed off and owned by the Group Managing Director. It also has an Environmental Development Manager to ensure compliance monitoring and reporting. We work closely with this department and aim to lead the Group by cascading findings and information to the rest of the VWG brands.
VWG Retail Development is responsible for implementing sustainability in the development of major new sites across the brands. Each brand is responsible for its own initiatives to meet and exceed Group, global and UK expectations of sustainable operation. This activity is coordinated by the VWG UK Board of Management. The Director of Audi UK sits on this Board of Management.
There is also cross-brand working in order to share best practice and drive Group-wide targets. For example, the Environmental Steering Group convenes monthly under the direction of the Head of Environmental Management and progress reports are regularly given to the Board of Management.
Reporting lines for sustainability in VWG
VWG UK Board of Management
Network Development Manager
Centre Marketing Manager
Corporate Responsibility Manager
Retail Property Manager
Site Acquisitions Manager
Head of Environmental Management
Environmental Development Manager
Director, Audi UK Director, VWG Group Services
Director, VWG Retail Development Director
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Sustainability governance cont.
Our stakeholders
Through our experience and other mechanisms, we have identified a range of key stakeholders with whom to engage:• Our staff – we recognise that our staff are our greatest asset and seek to find ways to improve their quality
of life – at work and at home• Our customers – as the end-user of Audi products, their expectations are critical and we strive to
understand their needs and priorities• Our communities – we want to enhance the areas in which we operate and develop good relationships with
our neighbours• Our Centre network – this is the critical interface between Audi UK and customers • Our suppliers – we want to understand the impacts of our supply chain and to help others work in more
sustainable ways.
Our staff
General staff engagement levels are measured through annual surveys; Pulse (Audi UK 2011 response rate 74%) and Great Place to Work (Audi UK 2011 response rate 79.8%). Staff Experience Improvement (SEI) is our programme to provide a forum for staff members to raise issues, ideas and suggestions for the management team to take forward. The forum reports to the management team and is directly championed by the Head of Aftersales.
In 2008 we began, with Beyond Green Ltd, an investigation into the ecological impacts of our Centre network and to explore Audi’s business model and approach to sustainability. We conducted interviews with a cross-section of the business including members of Volkswagen Group management, Audi UK senior management, marketing, aftersales, operations and fleet sales.
Our customers
As a sales organisation, we use many methods for obtaining feedback or opinion from our customers. These range from focus groups with targeted stakeholders to social media data gathering or direct engagement via our Facebook page or Twitter feed. Unsolicited feedback from customers is received via letters or emails to head office or via Centres. Our Customer Service Centre responds to calls from customers and either resolves issues directly or channels them to the appropriate part of the business.
‘Kundentisch’ (from the German for ‘customer table’) is our weekly forum to fast-track the investigation and response to customer issues. It involves representatives from all departments within Audi UK and provides an agreed mechanism to involve our management team where necessary.
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Sustainability governance cont.
Our community
Our headquarters is based at Blakelands – a business park on the outskirts of Milton Keynes. The area has been specifically developed for business activities and there are no other community facilities in the vicinity. For this reason we have actively sought other parts of the community that we can work with.
We approached Business in the Community and subsequently developed a close working relationship with a good match to our organisation, Milton Keynes Academy, which has an enterprise specialism and ‘learning through doing’ ethos. Our partnership with the school has been carefully designed to address several needs as the school serves one of Milton Keynes’ most economically challenged areas.
A description of activities undertaken with Milton Keynes Academy during 2011 can be found later on page 25.
Our suppliers
Developing long-term relationships with our supply chain helps our sustainability strategy as it means we are able to work together over time to make improvements to our mutual operations. We work very closely with key suppliers and tend to use a small roster of agencies; the relationship with our creative agency BBH has lasted 30 years, which is rare in the automotive sector.
This approach has provided clear benefits and a case study highlighting improvements, for example, increased use of recycled materials and significantly reduced waste, is on page 18.
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Our approach
Overview
In 2010, we engaged sustainable buildings consultants from BRE to support us in developing a sustainability plan that provides a framework and focuses our efforts as well as giving direction and targets for our work.
The subsequent plan is underpinned by a range of actions – capital and operational, short and long term – that will enable us to deliver the agreed commitments. We feel that the plan is concrete to the level of the nine objectives and that the 28 commitments will change over time as we develop our work and our thinking. These commitments are listed in full at the end of this report.
Objectives
Audi UK Sustainability Objectives
Energy and Carbon Natural resouces Quality of Life Good Neighbour
1. To improve our energy efficency and reduce our
operational CO2 emissions
2. To consume and manage water more
sustainably
3. To improve our sourcing of sustainable materials and services
4. To reduce our waste impacts
5. To protect and enhance the biodiversity of
our sites
6. To ensure that we are responsible employers
7. To support our staff and customers to lead more sustainable lives
8. To ensure that we are responsible neighbours
9. To work in partnership with our local and global
communities
The basis for inclusion of every commitment in the plan is that they currently meet at least one of the following criteria:• Reducing environmental impact • Improving the experience of our staff, customers and communities• Providing a business benefit through process or cost efficiencies • Improving understanding of current practices or evaluating new technologies.
Audi UK’s Sustainability Plan to commitment level can be viewed at the end of this report.
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Our approach cont.
Priorities
An internal discussion and filtering process took place to identify the objectives that are of priority importance for us and our stakeholders. We also took advice from BRE on a wider range of impacts that we should be monitoring and reporting on as part of our sustainability plan.
Prioristisation matrix
Extent of positive impact(based on environment benefit, geographical footprint and number of people affected)
Energy efficiency
Sustainable lifestyles
Responsible employersCommunity
partnership
Responsible neighbours
Water
Biodiversity
Waste and recycling
Materials and services
Sta
keh
old
er e
xpec
tati
ons
(bot
h in
tern
al a
nd e
xter
nal)
The actions we took to address these issues are described in the chapters that follow and headings include the commitments that are addressed by each completed or planned activity (these commitments are listed in full at the end of this report). Topics not represented above should not be interpreted as being unimportant to us; either they are largely beyond our control or we have not identified a way to successfully address them as yet. We view our sustainability plan as a working document that will change as our activities and thinking develop.
Progress and future plans
The following sections describe some of the steps we have taken to address sustainability during 2011. As many of our business activities are so strongly integrated with VWG UK, we also describe a number of Group actions that impact on our operations.
As this is our inaugural report we have included some of our initiatives, and those of VWG UK that took place prior to 2011.
As our Centre network has a greater impact (in terms of geographic coverage, carbon emissions, staff and customers) we have described some of the steps we have taken to influence their operations, although these are not included within our KPIs.
Finally, we have taken this opportunity to describe some of our plans for the future.
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Energy and carbon
Following the prioritisation exercise described above, it became clear that Energy and Carbon should be the key focus of our initial work. We were very proud to achieve Carbon Saver Gold Standard accreditation at the start of 2011 from making year-on-year energy related carbon reductions in our facilities. Examples of how this was achieved can be found below.
VWG/Audi UK activities
Between 2007 and 2011, utility consumption at our head office in Milton Keynes and National Learning Centre training facility at Wymbush fell as follows:• Electrical usage – 20% reduction• Gas usage – 30% reduction• Water usage – 20% reduction.
These were achieved through the installation of more efficient systems:• The installation of a direct gas-fired hot water generator to replace the existing storage tanks saved
408,000 kWhrs per year• Creating a low-energy IT data room saved 240,000 kWhrs per year• De-stratification fans in the reception area reduced gas consumption by up to 20,000 kWh each month
during the winter – a saving of 200,100 kWhrs per year• A new Building Management Energy System (BMES) to control heating and cooling reduced electrical load
by 50% and saves 185,000 kWhrs per year• Lighting improvements at the National Learning Centre saw a 37% reduction in lighting load from 27 kWh
to 17 kWh a day. This saving represents the equivalent energy to power a home.
VWG UK procures electricity from certified renewable sources for its head office facilities, National Learning Centre and parts warehouse in Dordon. The electricity comes from 100% renewable sources; mainly wind and hydro-electric power.
VWG UK reports its carbon emissions as a member of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) and this includes VWG UK’s sister companies Scania Great Britain, Scania Financial Services, VW Financial Services and Bentley Motors Ltd. During 2011, the total carbon footprint for the UK was 12,721 tonnes of CO2 – early action to reduce carbon emissions resulted in league table placement in the upper third of the rankings - joint 701 out of more than 2,100 participants.
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Case study: Dordon lighting projectA decision was taking to refurbish the lighting at the Dordon parts storage facility to increase lighting levels and reduce energy.
Lighting across the warehouse is now controlled using integral presence detectors. Time delays and security settings vary across the site to suit different occupancy patterns. Each luminaire will dim itself independently depending upon the light level within its surrounding area. The lamps will switch off if the light level exceeds its pre-programmed level. This provides a uniform lighting level and takes advantage of the natural daylight throughout the warehouse.
The project resulted in a huge decrease of around 50,000kgs of CO2 emissions per year and has reduced running costs by 70-80% (equivalent to an annual saving of £300,000 or 3,722,196 kWhrs per year).
Key improvements: • 3,787,590 kWh energy saving per year• 50% reduction in installed load • Reduction in CO2 emissions overall per year.
For full technical details and the manufacturer’s specification, please follow this link.
Solar power initiativeIn August 2011, an array of PV panels with a peak generating capacity of 112kW was installed at Dordon and contributed towards energy and carbon savings. During its months of operation in 2011, 26,000kWh of solar power was generated.
Energy and carbon cont.
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Energy and carbon cont.
Audi UK network activities
Centre network surveysIn 2008, Audi UK commissioned Beyond Green Ltd to improve its understanding of the current ecological impacts of the Audi network and identify opportunities to improve environmental performance.
Qualitative research coupled with quantitative data formed the basis of the Audi Centre Sustainability Report 2009, which outlined opportunities for improvement and identified existing good practice to be shared.
In August 2010, BRE auditors were commissioned by Audi UK to visit three Centres that covered a range of ages and styles of showroom – Stafford, Stoke and Tamworth – to undertake their BREEAM In-Use assessment of building efficiency to establish benchmark building performance standards.
We were very pleased that the three buildings achieved a ‘Good’ rating overall, with particularly high standards of waste and pollution control across the three sites. This work allowed us to focus on key areas for improvement across the network and helped with the development of the Audi UK Sustainability Plan.
Coulsdon AudiCoulsdon Audi opened in 2009 and was our first attempt to consciously look at how we could improve the building specification from an environmental point of view whilst maintaining our brand standards. We were very proud to achieve the first ‘Excellent’ BREEAM rated motor dealership in the UK through investing in the following design features:
• 15% of energy demand met through on-site renewable sources • Dramatically lower carbon footprint than comparable facilities • Energy consumption reduced through clever passive design • Resources saved through rainwater harvesting and careful product specification • On-site technologies include biomass boiler, waste compactor, sensor controls, energy efficient lighting,
A-rated building materials, natural fibre insulation, down-lighters to car parks to minimise light pollution, permeable paving to reduce surface water runoff and a landscaping strategy to include native species.
Building user guidesDuring 2011, BRE visited a selection of our Centres with the aim of identifying ways to improve the efficiency of the buildings through better management of existing heating, cooling and lighting systems.
Operation and maintenance manuals are provided for new buildings but these are often very technical in content and not aimed at day-to-day users. Simplified user guidance recognises and encourages the involvement of non-technical building users so that they can understand and operate the building efficiently and cut wasted energy.
Our recommendations support the Society of Motor Manufacturers and Traders (SMMT) , Carbon Trust and Retail Motor Industry Federation (RMI)’s findings that 10% of an average Centre’s energy bill can easily be saved through better management of existing systems (such as air-conditioning and lighting) and without needing to invest in any new equipment. And with their report suggesting that a typical dealership spends £40,000 per year on energy, the potential savings are significant.
The following Centres have bespoke building user guides which they own and update with new information as their building is adapted or new detail becomes available: Tamworth, Brighton, Nottingham, West London and Peterborough. A template guide is available on the Audi intranet for all Centres to use.
The Centres with bespoke guides in operation are reporting a better understanding of how to use their systems most efficiently. We plan to report any tangible savings achieved through these measures in next year’s report.
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Energy and carbon cont.
Future plans
Sustainable design guidanceDesign presents one of the most significant opportunities to influence a building’s impacts over its entire operational life. We intend to work with our key contractors to publish a list of recommended features to save energy, water and waste during the design, construction or major refurbishment of Audi Centres.
Energy and data monitoringMonitoring energy use is the best way to manage and reduce consumption by increasing understanding of where inefficiencies exist. Audi UK have invested in a system to capture electricity usage information from across the Centre network using a secure online data portal – gathering robust data will allow Audi UK to monitor and report on collective improvements over time and issue a standard set of reports that have been tailored to meet Centre’s needs.
We will be working with Centres in 2012 to gather their electricity data into the system with the aim of having over 50% of sites reporting by the end of 2012.
Efficiency ChampionsFollowing our own research and in-line with SMMT recommendations, we will work with Centres in 2012 to establish nominated Efficiency Champions in every site. We believe that having someone with specific energy and other efficiency management responsibilities will help to ensure that whenever energy savings for a Centre are identified, action is taken to carry these out.
Lighting policyThe SMMT estimates suggest that as much as 40% of a typical dealership’s utility costs are on lighting. To establish best practice standards, cut inefficiency and costs, Audi UK will introduce a lighting policy for all Centres in 2012.
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Natural resources
Dealing efficiently and consciously with the natural resources we use as part of our UK operations is a key aim of our sustainability plan. This is enhanced by activities designed to improve our operational facilities, such as those that reduce our waste impacts or improve levels of biodiversity. We are very proud of the fact that we have taken these steps in line with our brand standards.
VWG/Audi UK activities
Recycling at head officeIn 2011, 297 tonnes of waste were produced by Volkswagen Group sites in Milton Keynes alone. At the Blakelands head office, only 44% was sent for recycling and at the National Learning Centre in Wymbush this figure was 33%.
To tackle these figures, a new waste contractor was brought on board and a series of changes to waste segregation was implemented. In October 2011, general waste bins were removed from around the site and replaced with clearly labelled segregated bins at drinks hubs.
In the restaurants, biodegradable recycled cardboard packaging, recycled plastic containers and cutlery are in daily use. For those people eating in the restaurant, reusable china crockery and metal cutlery are used. Separate bins exist for food waste, biodegradable plastic waste and mixed recyclables. All large cardboard packaging and waste oil is collected separately.
These changes made a significant difference to the recycling figures; the average amount rose to 56% and the 2012 target is to reach recycling rates of 70%.
Centre materialsIn 2010, Audi’s iconic four rings logo was given a sharp new look to celebrate our 100th anniversary. Audi UK provided a complimentary service to the network to facilitate the replacement of items with the old logo. All Centres were visited and consultants identified what would need replacing due to the change of corporate identity. On the return visit, all old logo items were removed and replaced with new versions.
All 16,600 tonnes of plastic, wood, paper and metal collected from 130 Audi Centres and authorised repairers across the country was sent for recycling with not a single item going to landfill. The breakdown of materials collected was as follows:
• 3.83 tonnes of metal went to make garden furniture and fences • 2.83 tonnes of plastic will be recycled as damp proof membranes and drainage pipes • 7.13 tonnes of wood will make mulch and material for surfacing play areas • 2.83 tonnes of paper and card will be used in fibre board manufacture.
Marketing collateral standardsA commitment was made to improve the standards of collateral used for sales and marketing in Centres. To this end we worked with key suppliers to develop and issue policy recommendations for Centres and their suppliers. This includes:• Choice of paper stock • Biodegradable lamination • Packaging and delivery • Inks and coatings • Carefully considering quantities for
print-runs • Using standard sizes of paper and card,
where possible, to minimise cut-offs.
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As well as stipulating these improvements to our Centre network, we have also implemented this thinking into the collateral we produce, as follows:• Using 50:50 recycled FSC paper and biodegradable matt lamination for our customer product brochures• Our marketing department devised ‘landmarks’ to support the UK launch of the A1. As part of the
tendering process suppliers were asked for ideas that used 100% recycled content and were 100% recyclable but still met our premium standards
• The final design met the brief and when the campaign was over resulted in recycling figures of about 2.5 tonnes of ultraboard and about 4.0 tonnes of sand with nothing going to landfill.
Natural resources cont.
One of Audi’s biggest events each calendar year is the Goodwood Festival of Speed at the start of July.• 2011 was the first year that environmental considerations were fully taken into account with the design of
the 30,000 promotional cotton bags given away to visitors to Audi’s stand.• The building itself as well as physical hardware such as the flooring and balustrades from the 2010 stand
were stored and re-used in 2011 to prevent their re-manufacture • 10 tonnes of waste was produced through the operation of and from visitors to our stand – of this, 89%
was recycled.
Future plans
BiodiversityBiodiversity can be defined as the variation and abundance of species and wildlife and can be used to assess the ‘health’ of an ecosystem or area. In 2012, we are keen to investigate opportunities to improve the biodiversity of our facilities and share this information with our Centre network.
Improvements to plant durability and choices that minimise watering and maintenance whilst at the same time increasing the insect population and instance of indigenous species is the key aim of our proposed recommendations.
Marketing collateralFollowing the success of the change in corporate identity project outlined above, work is planned to investigate how the same approach of delivery and removal for recycling of other Centre collateral could be achieved.
As part of this work, we are also looking at the collateral itself to identify savings in materials, weight and improvements to sustainability.
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Quality of life
We aim to attract staff who fit with the Group culture in order that they feel inspired in their work and contribute to the success of the company. To ensure we attract people with the right blend of skills, behaviours and characteristics appropriate to the role and team in question, the Volkswagen Group competency questions are used as part of the recruitment process. These elements are aligned to our performance management process, Driving Success.
The following case studies outline the programmes in place to reward, motivate and retain our staff.
VWG/Audi UK activities
Staff benefitsSalary scales within Volkswagen Group are determined using the Hay methodology, the widest used job sizing mechanism in the UK. Each role within the Group is placed in one of 12 bands that have a salary range and company car value entitlement associated with them.
The following practices and benefits are open to all staff members, regardless of salary band or seniority:• Annual bonus the value of which is determined by a combination of the parent company’s global
performance, the company’s UK performance and the employee’s personal performance• A car on the tax-efficient Employee Car Ownership (ECO) scheme and free private fuel • Generous holiday entitlement based on length of service rather than seniority; 27 days initially, 28 days
after five years’ service and 30 days after 10 years’ service • A pension scheme where the company adds up to three times the employee’s contribution • Private medical insurance• Enhanced maternity and paternity schemes over and above statutory levels.
A majority of these benefits are mirrored by Serco for staff on it’s Volkswagen Group Contract. To enhance this open, transparent culture, all parking spaces are non-allocated (except those reserved for visitors) and offices are open plan with no individual offices. This includes the working space for our managing director and directors. These reflect our non-hierarchical company structure and help to foster an environment where all managers are approachable and accessible.
As well as these ways to promote a shared culture, the following policies are in place to formalise equality for all staff throughout the organisation:• Equal Opportunities policy • Anti-Bullying and Harassment policy• Code of Business Behaviour • Bribery and Anti-Corruption policy • Disciplinary policy • Grievance policy • Public Interest Disclosure (Whistleblowing) policy.
Health and wellbeingWe appreciate that balancing work and home life can be a challenge and we try to offer our staff the flexibility and support they need to achieve this. We look at everyone’s situation individually in order to find a solution that best meets the needs of the individual, their team and the wider company. The following are some of the ways we aim to support the health and wellbeing of our team:
• All employees are eligible to apply for flexible working, which goes beyond statutory requirements, and flexitime is managed on a trust basis between employees and their managers without the need to fill in timesheets
• We have an on-site medical suite that is available for all employees to use and offers a wide variety of medical support and advice. A dedicated nurse is available during office hours and other health professionals, such as physiotherapists, counsellors and a doctor, are available via appointment
• Regular health checks are provided for employees every two years and healthy living advice is offered, where appropriate. These checks are not compulsory but are valued by most employees and are well attended
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• Free flu jabs are available to all staff who want them • Eye tests are provided free of charge for all employees and the company makes a contribution towards the
cost of glasses if needed • Breast screening is available for all women employees over the age of 40 years and PSA blood tests to
identify potential prostate cancer indicators are offered to all men over 45 years • Free membership to a private health scheme for all employees.
The benefits above are supported by a range of policies that include:• Enhanced maternity and paternity payments • Parental, Dependants and Special Leave policies • Wellbeing policy• Enhanced sickness and redundancy payments.
Staff feedback mechanismsThe Pulse survey is designed to give an insight into how people feel about working for us so that we can keep them inspired. We aim to make it easy for our employees to express themselves, so that they feel supported and listened to. With this goal in mind, we share the results of Pulse by holding workshops to get feedback and encourage teams to take ownership of issues and activities happening in their business area.
Our management team takes this feedback very seriously and is happy to initiate changes, for example, by implementing new Dress Down Fridays and flexible working policies.
As well as these structured reporting mechanisms, VWG UK has a generic mailbox (Ask HR) where employees can ask questions, provide feedback and make suggestions. This is a great tool and enables gathering of daily comments and opinions from employees throughout the business on an informal basis. By having this open line of communication with staff, we are able to identify common trends and themes and address any issues quickly.
For example, a handful of employees raised questions regarding the ECO car policy and it became evident that there was some confusion about the content. Because of this staff feedback the policy was amended to ensure the rules were clear.
Our Employee Consultation Forum is another communication channel designed to give all staff the opportunity to air any problems they may have. All brands and Group-wide departments have a representative whose job it is to liaise with staff and give feedback on issues such as business initiatives. The other side of their role is to listen to staff issues or recommendations and bring these to the committee meetings. The representatives have been trained on their role, how they provide support to employees and how they liaise between the business and their colleagues.
Quality of life cont.
22
Quality of life cont.
Staff development Helping every employee to develop personally and professionally is fundamental to our culture. We have a wide variety of programmes in place, tailored to each individual, setting out clear goals and giving them the opportunities they need to be the best they can.
In response to changing business needs, the course prospectus was completely revised in 2011 and a total of 84 in-house courses ran during the year. A training framework was designed to identify core skills required by all staff relating to functional or technical skills and competency or behavioural development. As well as this universal training, there are also courses appropriate to the field force to give them the skills they need to support and develop the retail network. Specific people management, coaching, recruitment and managerial courses are in place for more senior team members.
As well as supporting the development of VWG UK staff, Learning Services also manages the training for all technician roles, including an apprentice technician programme. As well as programmes that cover specific learning journeys and qualification routes, technical training covers all areas of repairing and servicing our vehicles. To ensure this function is fully supported, Learning Services delivers around 70 courses a week to up to 220 delegates per day.
From when a new member of staff joins Volkswagen Group, the induction they receive sets out a path for development and they will meet with their line manager regularly to set, discuss and review their objectives. SMART business and personal objectives are set in January and reviewed regularly with a final performance review and scoring in December, using the Group’s competency framework.
For employees who want to have a more focused development conversation, a more detailed performance development planning process is available. The Learning and Development team carries out a training needs analysis which schedules the learning identified for all employees throughout the year. Staff are given the opportunity to access external technical training, CPD events, professional qualifications and team development training.
Catering facilitiesThe on-site staff restaurant offers a deli service, a daily cooked menu, pizza chef, salad bar, snacks and hot and cold drinks. Each day an average of 1,600 customer transactions take place.
In 2011, the various elements of the staff restaurants at Blakelands and Wymbush were improved as a result of customer feedback. These included:• Refurbished facilities including improved signage • A focus on healthy eating, including healthy meal deals, a new salad bar and a reduction in the core
confectionary range whilst introducing more healthy eating snacks • Sourcing all coffee and tea products from suppliers that are passionate about Fairtrade (Peros Coffee) and
have active ethical sourcing programmes improving health and nutrition with Unicef (Twinings Teas) • Stocking One Water drinks where 100% of the profit supports community vegetable gardens in Africa.
The improvements have seen increased staff satisfaction in the restaurant and a boost in sales of over 26% between 2010 and 2011.
23
Quality of life cont.
The result of this work was to categorise the valid suggestions into three areas:• Actions the management team could implement
immediately • Cultural change actions that required everyone’s
input and collaboration • Activities that needed more consideration and
planning to realise through the establishment of a Business Improvement Group (BIG).
Some outputs from 2011 include:• Senior management sharing their objectives and
cascading these through the staff team • Brand-specific induction process including a pack
containing useful information and attendance on the Flying Start course along with new starters from Centres
• New, more ergonomically-designed work spaces, internal news screens and improved coffee areas
• Team-building events, such as entering two crews into the Milton Keynes Dragon Boat Festival 2011.
National ForumThe event is our annual meeting alongside colleagues from the Centre network to look at progress towards our brand strategy and outline our key actions and priorities for 2012. All Audi UK staff, including those employed via Serco, are invited to the event and encouraged to meet and chat with Centre staff. It is welcomed as an opportunity to reward the whole team from Audi UK and the Centres, share ideas and hear plans directly from senior management.
In 2011, it featured a dramatic product show to demonstrate some of the latest exciting Audi models and was followed by a drinks reception, dinner and overnight accommodation.
Driving stylesThe way customers use their car significantly affects it’s fuel economy – in order to help customers to achieve more from their Audi, we produced a film with Allan McNish giving top tips that should give more miles from each tank of fuel.
Frankfurt Motor Show visitAs a way of rewarding all staff and encouraging inter-departmental team-building, a trip was arranged to visit the spectacular Audi stand at the Frankfurt Motorshow in September 2011. The trip also offered an opportunity to learn more about global brand ambitions and see the range of new products. Audi employees of Volkswagen Group and Serco travelled together to Frankfurt.
The team was given exclusive access to the stand for the evening after the show had closed and the next day were given the opportunity to view competitors’ stands. All meals were provided either through catered activities or subsistence contributions.
Staff Experience ImprovementIn February 2010, Audi UK began the process of gathering systematic feedback from the whole staff team on what was needed to improve the working environment, processes and culture of the business.
The suggestions included how to improve the induction process for new staff, changes to the office layout to facilitate collaboration and how to improvement engagement between senior management and the rest of the team.
24
Quality of life cont.
Audi UK network activities
Staff Experience ImprovementAs well as being an internal Audi UK programme, SEI is also supported by Audi UK to run throughout the Centre network. The business rationale behind the programme is that when staff are engaged and motivated they are personally invested in the success of the business and a fantastic customer experience.
In line with how the programme runs internally, Centre staff are encouraged to work together to address the areas of improvement identified. Anonymous online feedback is gathered from all staff members to capture verbatim comments on the work culture and any issues or concerns relating to team working, management styles or customer experience. Consistent themes are identified and used to form an improvement plan.
This process is supported by Audi UK with the production of a toolkit of resources for Centres, members of the Audi UK field team facilitating workshops, establishing peer support groups to maintain momentum and share best practice between Centres.
Some success stories from different Centres include:• 25 employees volunteered their time to run two service focus evenings for customers as a result of this
being identified as a key priority by the staff team. Over 100 customers attended and gave positive customer feedback
• A Centre manager spent a day with his service department after the SEI workshop identified a number of issues here. Within a few hours 20 key problems had been identified and by the end of that day, 10 of these had been resolved between the manager and the team. This increased communication lead to a better working atmosphere and an increase in work efficiency
• A staff workshop brought up a number of concerns around mutual respect between individual colleagues and different teams. The team decided to develop a Charter of Respect for the whole business, which was launched at an evening event and signed by all staff members. Airing and addressing this issue has led to an improved work culture and staff motivation.
Future plans
Flexible working trialIn 2012, VWG UK’s Board of Management is planning a trial to investigate the expansion of the models of flexible working available to employees. The aim of the trial is to establish measureable benefits via agreed metrics without impacting negatively on the business or staff.
It is hoped that the trial will demonstrate reduced presenteeism, reduced commuting impact, reduced load on office facilities and increased staff engagement.
Improved intranet functionalityIn 2012, a major Group-wide project will begin to move electronic documents from shared drives to a cloud-based server accessed via the Group intranet. The project is being instigated to help staff to quickly access the documents they need, improve document control and facilitate collaboration with colleagues.
25
Good neighbour
Giving our employees the opportunity to volunteer for community activities during their working day is a way to cement our brand values, provide engaging staff development opportunities and engender engagement and pride in our brand.
Following discussions with senior staff members at the Milton Keynes Academy, our community partner, four focus areas were identified as the best opportunity to make an impact with students:•Literacy•Achievement•Attendance•Employabilityskills.
The following case studies highlight the ways we seek to make a positive difference and the benefits we have seen.
VWG/Audi UK activities
Literacy curriculum supportThe Milton Keynes Academy serves one of Milton Keynes’ most economically challenged areas. Improving literacy is a key focus for the school and imperative if the school is to meet Government targets.
To help to address this, Audi worked collaboratively with the English department to create an innovative project to demonstrate the importance of literacy in the world of work. The programme allowed students to analyse the Audi brand and appreciate how Audi communicates with their target market. It gave an opportunity for students to become involved with a ‘real’ brief to design a merchandising product while developing their use of persuasive language and presenting their ideas to a particular audience.
The Audi team, our advertising agency, BBH, and a group of undergraduates on year-long placements, gave a series of talks to students. We also brought a selection of Audi models to the Academy to give students a chance to get more ideas to support their project and question Audi staff.
As a result of the project:• The Year 9 English curriculum has been enriched and the project underlines the power that comes with
being able to manipulate language• Classes were graded according to the speaking and listening ‘communicating and adapting language’
criteria. Over 60% of students achieved a grade C or above, a tremendous result in Year 9 at the start of their GCSE course
• A real buzz was created in school with younger students eager to find out when it would be their turn to take part in this challenge
• Audi staff benefitted from the enthusiasm and buzz from the students, which they brought back with them to the office resulting in enhanced job satisfaction
• Staff involved in presenting, communicating and giving feedback to students had the opportunity to develop their skills for a new audience.
“The Audi project was a huge success in terms of engaging the Year 9s in the GCSE English course. The involvement of Audi employees throughout the project gave a sense of importance and made the pupils think carefully about adapting their language for purpose and audience, one of the GCSE speaking and listening criteria.”Ann-Marie Smith, English teacher, Milton Keynes Academy
26
Raising achievementAudi has been involved in many mentoring schemes during 2011, all of which are designed to provide important role models and to give students confidence to raise their aspirations and broaden their horizons.
‘Can Do Women’ is a project aimed at female students who are at risk of under-achieving. Out of the 14 girls on this 2011 cohort, 13 have been reported as making improvements in their attendance, behaviour, motivation, self-confidence or achievement and many in more than one area.
“Massively improved in terms of attendance, behaviour and progress. A huge success.”Matt May, Assistant Principal, reports about one student
Audi provided mentors to help the personal development of students of all abilities as well as help to enhance their employability skills. We have also provided volunteers to support Year 10 work experience preparation, Year 8 ‘Make Languages Your Business’ day and employability workshops for Year 11 students.
Audi UK network activities
Poole Audi and St Aldhelm’s AcademyA team at Poole Audi supports the recently opened new Academy located within walking distance of its showroom.
Poole Audi has 11 volunteers who work with the Academy in different ways: • Super-learning days, where the young people in their final year are taught the skills they will need to find a
job. This includes help with writing a CV and application letter, practice at job interviews and exercises to boost confidence and self-esteem
• Delivering training to the Student Voice Ambassadors in each year on how to implement effective Student Voice meetings by improving their listening, communication and organisational skills as well as note taking
• Providing mentoring support, for young people and teachers.
“We want to give local young people an insight into the world of business and bring inspiration around the rewards which come from working hard and building skills.” Steve Russell, Head of Business, Poole Audi
Future plans
Focusing on improving student attendance at Milton Keynes Academy is a key aim for 2012. Plans are in place to support the school’s Year 11 prom and use this to incentivise individual students as well as the year group as a whole to attend lessons.
We will also be working with our network partners to encourage Centres to establish similar relationships with their local schools.
Good neighbour cont.
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Looking ahead
Looking back at our sustainability progress and achievements in 2011, what strikes me most is how good practice has become business as usual for Audi. Efficiency is part of our DNA and extending this thinking from the racetrack to our business operations makes clear business sense.
All organisations face challenges because of an uncertain economic outlook but a focus on cutting wasted energy and resources as well as strengthening the relationship with our staff, customers and the communities in which we operate produces improvements that go far beyond the bottom line.
What has become clear to us over the course of our journey is that there is no magic bullet to solve these problems – although with our ethos of progress through technology, we hope that significant global advancements are around the next corner. Until then, we will continue seeking out best practice, applying this knowledge to our own operations and taking practical steps to becoming a more sustainable organisation.
We’re glad to share what’s worked for us in this inaugural report and look forward to sharing more in future years.
Martin SanderDirector, Audi UK
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Key indicators
We have chosen to report using GRI Sustainability Performance Indicators, organised by economic, environmental and social categories.
This first report is modelled around the reporting requirements for GRI report application level C, requiring a minimum of any 10 performance indicators including at least one from each of the above categories.
Economic indicatorsVolkswagen Group Annual UK turnover in 2011 was £6,364 million. For full the financial annual report, please follow this link to Companies House.
Direct Economic Value Generated and Distributed (GRI: EC1)This performance indicator reports on the direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments across the Volkswagen Group UK.
The direct economic value we generate
Component Value (£m)
Direct economic value generated
Net sales
Net interest
Rents received, sales of assets
Economic value distributed
b) Operating costs
Aggregate payroll costs (including wages and salaries, pension costs, social security costs)
d) Payments to providers of capital
Tax on profit on ordinary activities
Charitable donations (UK Motor Industry Benevolent Fund, cancer charities, children’s charities, other local charities and events)
Economic value retained
(calculated as Economic value generated less Economic value distributed)
6,439.2
6,363.6
13
62.6
6,404.8
6,287
41.4
50.1
26
0.25
34.4
29
Environmental indicatorsThe conversion factors used to calculate emissions below are from the 2012 Guidelines to Defra/DECC’s GHG Conversion Factors for Company Reporting.
Direct Energy Consumption by Primary Energy Source (GRI: EN3)This performance indicator reports on the total natural gas consumed at VWG UK’s head office (Blakelands) and National Learning Centre (Wymbush) in Milton Keynes, together with that for the distribution centre at Dordon.
The information to produce this performance indicator has been obtained from invoices for VWG UK and excludes direct energy consumption of all outsourced services.
The energy we consume: gas
The energy we consume: electricity
Consumption
Consumption
Site kWh GJ
Wymbush Gas 1,065,495 3,836
Blakelands Gas 983,704 3,541
Dordon Gas 3,303,233 11,892
TOTAL Gas 5,352,432 19,269
Site kWh GJ
Wymbush Electricity 2,130,922 7,671
Blakelands Electricity 1,531,927 5,514
Dordon Electricity 3,213,701 11,569
TOTAL Electricity 6,876,550 24,755
Indirect Energy Consumption by Primary Energy Source (GRI: EN4)This performance indicator reports on the greenhouse gases resulting from the generation of purchased electricity, heat or steam. For Audi UK operations these arise from the total electricity consumed at VWG UK head office (Blakelands) and training centre (Wymbush) in Milton Keynes, together with that for the distribution centre at Dordon.
The information to produce this performance indicator has been obtained from invoices and utility bills for VWG UK and excludes indirect energy consumption of all outsourced services.
Note: The photovoltaic array at Dordon reduced the demand for purchased electricity by generating 26,782 kWh of electricity during the 2011 calendar year.
30
Total direct and indirect greenhouse gas emissions by weight (GRI: EN16)This performance indicator identifies all:• Direct emissions of greenhouse gases arising from burning fuel for energy from all sources owned or
controlled by VWG UK• Indirect emissions of greenhouse gases resulting from the generation of purchased electricity, heat or steam
arising from other organisations burning fuel for energy but which is imported and consumed by VWG UK.
Environmental indicators cont.
The emissions we produce
Consumption CO2e Emissions
Site kWh tonnes
Wymbush Gas 1,065,495 218
Blakelands Gas 983,704 201
Dordon Gas 3,303,233 675
Dordon Solar Electricity 26,782 16
Wymbush Electricity 2,130,922 1,257
Blakelands Electricity 1,531,927 904
Dordon Electricity 3,213,701 1,896
TOTAL Emissions 5,150
31
Environmental indicators cont.
Other relevant indirect greenhouse gas emissions by weight (GRI: EN17)This performance indicator reports on greenhouse gases resulting from the activities of the reporting organisation but are generated at sources owned or controlled by another organisation other than those generated from imported electricity, heat or steam. The reported emissions below arise from use of company cars for all journeys and air travel for business purposes – fuel cards for VWG UK directly employed staff only (this excludes other indirect greenhouse gas emissions attributable to outsourced services).
Greenhouse emissions from our activities
Flights booked through VWG Travel management km CO2e (tonnes)
Domestic 608,728 123
Short-haul (<3,700km) 3,003,827 345
Long-haul (>3,700km) 1,832,045 241
SUBTOTAL 708
Vehicle travel (Fuel Card totals) Litres CO2e (tonnes)
Diesel 1,052,240 3,333
Petrol 402,578 1,094
SUBTOTAL 4,427
TOTAL 5,135
32
Environmental indicators cont.
Total weight of waste by type and disposal method (GRI: EN22)This performance indicator identifies all waste generated by VWG UK (with separate classification for hazardous waste where produced) broken down by disposal method.
The waste we generate
Non-hazardous waste 217.3 1,648.8 1,866.1
(98%)
Hazardous waste 0 39.2 39.2
(2%)
TOTAL 217.3 1,688 1,905.3
(11%) (89%)
Quantities of recycled waste are based on records of segregated waste held at each site other than for general waste for which it is assumed that 40% is recovered through MRF (materials recovery facilities) for waste generated at Blakelands and Wymbush.
Landfilled Recycled Total (tonnes)
Significant environmental impacts of transporting products and other goods and materials (GRI: EN29)This performance indicator reports the significant environmental impacts of transporting products and other goods and materials used for VWG UK’s operations, and transporting members of the workforce.
This includes the impacts of parts deliveries to and from Dordon and national vehicle deliveries (based on records of distances covered and actual fuel usage).
The impacts of use for staff company cars (all journeys) and air travel for business purposes are included within EN17.
The impact of our logistics activities
Impact km Gallons Litres CO2e (tonnes)
Outbound parts logistics 7,020,445 404,882 1,840,594 4,755
Inbound parts logistics 8,984,777 558,288 2,537,978 6,556
Vehicle deliveries to retailers* 15,248,316 1,404,784 6,386,146 16,498
TOTAL 31,253,537 2,367,954 10,764,717 27,810
* 376,242 vehicles in total were delivered during 2011
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Social indicators
Total workforce by employment type, employment contract and region, broken down by gender (GRI: LA1)This performance indicator identifies the total workforce of Audi UK and VWG UK broken down by gender and hours worked. All employees are based within the UK. Details of supply chain workers are not included in this indicator.
Staff as at 31 December 2011
Average Hours By Contract as at 31 December 2011
Contract Female Male Female Male
Full time 147 350 34 54
Part time 25 1 5 0
Fixed term contract 5 0 2 0
Totals 177 351 41 54
Contract Female Male Female Male
Full time 1,885 1,855 1,855 1,855
Part time 1,261 1,560 1,258 N/A
Fixed term contract 1,885 N/A 1,885 N/A
VWG UK
VWG UK
Audi UK
Audi UK
Total number and rate of new employees and turnover by age group and gender (GRI: LA2)This performance indicator contains information about individuals leaving and joining Audi UK and VWG UK. Details of supply chain workers are not included in this Indicator.
2011 joiners
Age band Female Male Female Male
25 – 30 years 4 6 2 0
31 – 40 years 12 26 1 4
41 – 50 years 5 9 2 1
51 – 60 years 0 6 0 0
Totals 21 47 5 5
VWG UK Audi UK
34
Social indicators cont.
Average hours of training per year per employee by gender and by employee category (GRI: LA10)This performance indicator contains information about all types of training and instruction received by VWG UK employees other than on-site coaching by supervisors.
The average number of training days per employee in 2011 was 1.9This information is not currently available at gender and employee category level.
Percentage of employees receiving regular performance and career development reviews by gender (GRI: LA12)100% of employees, including those employed via Serco, receive formal half-yearly performance reviews including setting and checking progress against agreed objectives.
2011 leavers (all reasons for leaving)
2011 turnover (resignations and rolling 12 month headcount)
Age band Female Male Female Male
under 25 0 1 0 1
25 – 30 years 2 1 2 0
31 – 40 years 11 15 4 4
41 – 50 years 10 11 4 3
51 – 60 years 1 7 1 1
61 – 65 years 1 3 0 0
Totals 25 38 11 9
Turnover 6.10% 8.60%
VWG UK
VWG UK
Audi UK
Audi UK
35
Index to GRI reporting
GRI Reference Description Section Page Disclosures
1.1 Statement from Director, Audi UK Executive Summary 6
2.1 Name of organisation About Audi UK 3
2.2 Primary brands, products and/or services About Audi UK 3
2.3 Operational structure of organisation Company Relationships 4
2.4 Location of organisations headquarters Company Relationships 4
2.5 Number of countries where the organisation operates About Audi UK 3
2.6 Nature of ownership and legal form About Audi UK 3
2.7 Markets served About Audi UK 3
2.8 Scale of reporting organisation including: number About Audi UK 3 of employees; number of operations; net sales; total Company Relationships 4 capitalisation; quantity of products/services provided Key Successes 5
2.9 Significant changes during reporting period N/A –
2.10 Awards received in reporting period Energy and Carbon Overview 14
3.1 Reporting period About this Report 5
3.2 Date of most recent previous report (if any) N/A –
3.3 Reporting cycle About this Report 5
3.4 Contact point for questions regarding the report or its contents About this Report 5
3.5 Process for defining report content About this Report 5 Executive Summary 6
3.6 Boundary of the report Understanding Our Impact 8 on Sustainability
3.7 Limitations on the scope or boundary of the report In-House and Out-of-Scope Table 36
3.8 Basis for reporting on joint ventures, subsidiaries Understanding Our Impact 8 or other outsourced operations on Sustainability
3.10 Explanation of any re-statements N/A –
3.11 Significant changes from previous reporting periods N/A –
3.12 Table identifying the location of the standard disclosures Index to GRI Reporting 35
4.1 Governance structure of the organisation Sustainability Governance 9
4.2 Indicate whether the Chair of the highest governance body Sustainability Governance 9 is also an executive officer
4.3 For organisations that have a unitary board structure, state the N/A – number and gender of member of the highest governance body that are independent and/or executive non members
4.4 Mechanisms for shareholders and employees to provide Our Staff 10 recommendations or direction to the highest governance body Quality of Life – Staff Feedback 20 Mechanisms
4.14 List of stakeholder groups engaged by the organisation Our Stakeholders 10
4.15 Basis for identification and selection of stakeholders Our Stakeholders 10
KPIs
EC1 Direct economic value generated and distributed 28
EN3 Direct energy consumption by primary energy source 29
EN4 Indirect energy consumption by primary source 29
EN16 Total direct and indirect greenhouse gas emissions by weight 30
EN17 Other relevant indirect greenhouse gas emissions by weight 31
EN22 Total weight of waste by type and disposal method 32
EN29 Significant environmental impacts of transporting products 32 and other goods and materials
LA1 Total workforce by employment type, employment contract a 33 nd region, broken down by gender
LA2 Total number and rate of new employees and turnover by age 34 group and gender
LA10 Average hours of training per year per employee by gender and 34 employee category
LA12 Percentage of employees receiving regular performance 34
As this is our first corporate responsibility report, some of the information below cannot be provided and is therefore marked as ‘N/A’.
36
Our approach to the activitiescovered by this report
In-House: reported (VWG UK) Out of scope
Financial information for VWG UK Roadside assistance (excluded as provision is outsourced)
Energy consumption and initiatives for VWG UK operations Centres: considered and consulted but not reported on (franchises exist as separate corporate entities)
Greenhouse gas emissions arising from VWG UK energy use and travel Customers: considered and consulted
Total waste and disposal method within VWG UK Supplier demographics & labour practices (excluded as provision is outsourced or otherwise provided by corporate entities)
Environmental impacts of transportation for parts & vehicle logistics within the UK Capita and Serco outsourced services
H&S data for Volkswagen Group UK Trade Parts Service (TPS)
Staff demographics & labour practices for Audi UK and VWG UK
Volkswagen Group Global Sustainability Report
Audi Global Reporting
Carbon Trust
Retail Motor Industry Federation
The Society of Motor Manufacturers and Traders 2012 Automotive Sustainability Report
Dordon Warehouse Lighting Case Study – pages 14-15 of the FW Thorpe Annual Report
Capita’s Corporate Responsibility Report
Serco’s Corporate Responsibility Report
Useful links
Table title
37
Our sustainability plan
1 To improve our energy efficiency and reduce our operational CO2 emissions
2 To consume and manage water more sustainably
3 To improve our sourcing of sustainable materials and services
4 To reduce our waste impacts
5 To protect and enhance the biodiversity of our sites
1.1 We will set energy efficiency/environmental standards for our buildings and major refurbishments
14, 16
2.1 We will review the opportunities for capturing and reusing rainwater from roofs and landscaping
16
1.2 We will optimise the efficiency of heating, ventilation and cooling design and services
14, 16
2.2 We will take action to reduce the consumption of water 14, 16
1.3 We will optimise daylighting and improve the efficiency of lighting and controls
14, 15
2.3 We will take opportunities to introduce sustainable management of stormwater
16
1.6 We will identify priority actions to improve energy efficiency 16
3.3 We will review the embodied impact of our events and marketing collateral and take steps to minimise this
18, 19
1.4 We will increase our understanding of the ways we use energy in our buildings in order to improve energy management
16
3.1 We will review the embodied impact of our building materials and refurbishments and take steps to minimise this
16
1.7 We will work to reduce the CO2 emissions of Audi UK staff commuting and business travel
3.4 We will establish a sustainable purchasing policy for consumables
1.5 We will identify ways to increase the use of renewable sources of energy across our operations
14, 15
3.2 We will take opportunities to introduce wood and wood products that are sustainably sourced
18
1.8 We will reduce the energy consumption and CO2 emissions of our recovery fleet, parts logistics and vehicle logistics
4.1 We will take action to reduce the total waste from construction and refurbishment projects and increase opportunities for reclamation & recycling
5.1 We will have a biodiversity policy by 2013
4.2 We will take action to reduce waste to landfill and increase opportunities for recycling
18
5.2 We will take practical action to support national campaigns that provide suitable habitats for vulnerable species
Ener
gy &
Car
bon
Nat
ural
Res
ourc
es
Case study page number
38
Our sustainability plan cont.
6 To ensure that we are responsible employers
7 To support our staff and customers to lead more sustainable lives
8 To ensure that we are responsible neighbours
9 To work in partnership with our local and global communities
6.1 We are committed to being a great place to work 20, 21, 22, 23, 24
8.1 We will run our operations considerately
6.2 We will support our staff to lead healthy lives 20, 22
8.2 We will engage positively with local communities 25
7.1 We will provide sustainability information and inspiration to staff and customers
23
8.3 We will support our local economies 26
7.2 We will provide information and support to staff to enable them to reduce environmental impacts at work and home
9.1 We will increase practical support for local and national charities and voluntary initiatives
25
9.2 We will increase the purchase of fairly traded product lines throughout our operations
22
Qua
lity
of L
ife
Goo
d N
eigh
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Case study page number
Audi UK, Customer Services,Selectapost 29, Sheffield, S97 3FG
0800 699 888
www.audi.co.uk/corporateresponsibility
