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% EV Sales
Total Score
Total Score
Fossil Free & Environment
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Summary
Despite being a relatively strong performer in the inaugural Leaderboard, Volkswagen was the only automaker not to improve its overall score in the second edition. Whilst it did make some progress with regards to battery recycling and advance purchase agreements for low-carbon steel, this was offset by backsliding with regards to the level of transparency provided on its mineral supply chains. This lack of progress has led to Volkswagen’s drop from 4th to 6th place in the Leaderboard.
Key Findings
- Discloses 2030 and 2050 targets to reduce scope 3 supply chain emissions.
- Inadequate progress on steel and aluminum decarbonization due to a lack of material-specific targets and participation in key multi-stakeholder initiatives.
- Discloses a new agreement with Salzgitter AG to produce low-carbon steel from the end of 2025 and a new joint venture with battery recycler Umicore to recover minerals.
- Has developed solid, but insufficient, processes for human rights due diligence and responsible mineral sourcing.
- No longer discloses the countries of origin or country-specific risks for its mineral supply chains.
- Makes no commitment to Indigenous Peoples’ rights and inadequate policies to ensure workers’ rights are respected throughout its supply chain.
Score Breakdown
Fossil-Free & Environmentally Sustainable Supply Chains
Human Rights & Responsible Resourcing
Supply Chain News & Progress
Latest on Volkswagen
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
Illegal rare earth mining in Myanmar linked to supply chain of major automakers
A new report by Global Witness has documented the harmful impacts of illegal rare earth mining in Myanmar, linked to the supply chains of major automakers – including Volkswagen, Toyota, Tesla, Nissan, Ford and Hyundai.
Ford, Tesla and VW nickel partnerships in Indonesia linked to climate rights, environmental harms
A massive, multi-billion-dollar nickel industrial complex in North Maluku and nearby nickel mining is violating the rights of local communities, including Indigenous Peoples, causing significant deforestation, air and water pollution, and emitting massive amounts of greenhouse gases from captive coal plants, Climate Rights International said in a report.
For the 124-page report, “Nickel Unearthed: The Human and Climate Costs of Indonesia’s Nickel Industry,” Climate Rights International interviewed 45 people living near smelting operations at the Indonesia Weda Bay Industrial Park (IWIP) and nearby nickel mines on the island of Halmahera. Local residents explained how companies, in coordination with Indonesian police and military personnel, have engaged in land grabbing, coercion, and intimidation of Indigenous Peoples and other communities, who are experiencing serious and potentially existential threats to their traditional ways of life.
Electric vehicle companies such as Tesla, Ford, and Volkswagen that have contracts to source nickel from Indonesia, including from companies with operations at IWIP, should immediately use their leverage to push suppliers to address harms to local communities and the environment, and if necessary, suspend sourcing nickel from companies responsible for such abuses.
Progress on battery chemistries holds potential to reduce demand for high-intensity minerals
During the first few months of 2023, several automakers have made announcements of investments and / or progress made on new battery chemistries that promise to reduce their demand of high-intensity minerals such as cobalt, nickel and lithium. In March, the JAC Group’s joint venture with Volkswagen in China made history by introducing the world’s first electric vehicle (EV) powered by a sodium-ion battery – a battery technology that, according to the IEA, “has the potential to completely avoid the use of critical metals.” BYD has also said that it plans to use sodium-ion batteries in its vehicles later in the year. In May, Stellantis announced an investment in lithium-sulphur battery developer Lyten, working on a novel three-dimensional graphene material platform that is free from nickel, cobalt, and manganese.
VW invests in resource-efficient battery design and signs agreements for “low CO2” steel and “environmentally-friendly”lithium
VW has taken a stake in 24M Technologies whose battery technology claims to require 40% less production area, is more efficient for recycling, and reduces the CO2 footprint of battery production. VW has also signed agreements for “low-CO2” steel from the end of 2025 with Salzgitter and for lithium with Vulcan Energy Resources. Their process claims to use less land, groundwater and energy.
Allegations of forced labor and human rights violations, and environmental damage in VW’s supply chains
The Business and Human Rights Resource Center has documented multiple allegations of human rights abuses against VW, including forced labor, union busting and health impacts linked to its emissions scandal. Nikkei Asia also reported on environmentally damaging nickel mining in Indonesia that identified VW as an end consumer.
Our Vision
01 — Equitably
Respecting and advancing the rights of Indigenous Peoples, workers, and local communities throughout the supply chain.
02 — Sustainably
Preserving and restoring environmental health and biodiversity across supply chains, while reducing primary resource demand through efficient resource use and increased recycled content.
03 — Fossil-free
100% electric and made with a fossil fuel-free supply chain.