Report: Sustainability in Audi AG

Personal Development & Careers Task 7 environmental Sustainability in Audi AG By 1213666 To Romas Malevicius 22. 11. 2012 Table of circumscribe itemization of Figures Summary Introduction 1 Audi AG Sustainability Procedures 1. 1 Technologies 1. 2 Waste & water management 2. Sustainability as a part of Audis CSR 2. 1 Audi environmental Foundation 2. 2 Environmental covenant for Bavaria & EMAS 2. 4 Recognition 3. Criticism 3. 1 General criticism towards the automobile industry 3. 2 Greenwashing Conclusions Bibliography List of figures * Figure 1. 3 p. 7 From http//wip. audi. no/photoalbum/view/? ize=org&id=15902&type=1 (Accessed 21. 11. 2012) Summary This report covers Audi AGs current operational and strategic procedures for environmental sustainability. It looks at sustainability as part of the go withs Corporate Social Responsibility and views critical analysis of the automobile industry to enable making equilibrize conclusions. Introduction A report by the United Nations entit led Our Common Future (1987) defined sustainable development as development, which meets the needs of the present without conciliative the ability of future generations to meet their own needs. In addition to this, so called intergenerational equity has remained a theme in defining environmental sustainability. Essentially it room seeking the minimization of any adverse (long-term) impacts on future generations. The aim of this report is to investigate the actualizations of the aforesaid principles in the corporate actions of Audi AG. Audi AG is a labor fomite manufacturer, which comprises of the brands Audi, Ducati and Lamborghini. It is a multinational confederation (MNE) that employs some 46,000 people and has an annual output of over 1,3 million units.Audi AG is part of Volkswagen Group, headquartered from Ingolstadt, Germany. 1. Audi AG Sustainability Procedures 1. 1 Technologies Audi admits that a car manufacturer can never claim to have a positive impact on the environmen t. They are, however, investing billions of pounds in responsible technologies. These include whippersnapper space frames, diesel engines and Start-Stop technologies. The purpose of these is to reduce fuel consumption and hence cut CO2 emissions. 1. 2 Waste & water management Audis motto Advancement Through Technology essentially outlines the companys principle of constant innovation.The brand values in addition state that corporate activities are regulate by the desire to preserve resources and take a responsible approach to the environment. They have undertaken numerous actions to introduce these principles. For instance, assembly line waste is uncaring & sorted on-site and packaging is optimised in the planning stage, which reduce transport needs substantially. Audi usages various sources of energy, such as a local waste bear on plant and the Combined Heat, Cooling and Power production facility (CHCP) in the Ingolstadt factory.Together they save the company 37,000 tonnes of CO2 a year. For car production the company collects rainwater. They to a fault feed 96. 3 per cent of total water into a closed-loop system, so only a very small amount of water is lost. Moreover, Audi encourages recycling vehicle parts and batteries. As a result their production output has substantially increased in the last two decades but overall energy use has remained virtually the same. Figure 1. 3. Figure 1. 3 illustrates the decrease in waste water volume per vehicle in Audid main production plants in Germany between the years 1990 and 1999.The total decrease is 4,5m3/vehicle in Neckarsulm and correspondingly 2,3m3/vehicle in Ingolstadt. 2. Sustainability as a part of Audis CSR 2. 1 Audi Environmental Foundation Audis commitment to the environment and society is an integral part of their Corporate Social Responsibility (CSR). The just about compelling evindence is the Audi Environmental Foundation Ltd. , which takes self-imposed action in environmental, social and economi c issues by conducting and funding research projects. 2. 2 Environmental Pact for Bavaria & EMASAudi was a founder member of the Environmental Pact for Bavaria, which now includes around 1,350 companies. The Pact was exploited in 1995 as a voluntary agreement between the Bavarian industry and government to do more for the environment. The Pact includes Audis European plants participating in the EC Eco-Management and Audit Scheme (EMAS). The purpose of this is to introduce an environmental management system, which helps im rise up operational environmental protection on site. 2. 4 RecognitionBased on the above-menti integrityd policies it can be stated that as a car manufacturer Audi is advanced in promoting sustainability. Audi has also received recognition for this, such as the 2012 Logistics Sustainability Prize. Audi works diligently to improve its image as a green company. Audi of America President Johan de Nysschens radius at the companys 100th Anniversary celebration in 2009 (Audi MediaServices, 2009) We and our consumers (also) want to drive at something better a more sustainable future. The company also published a commercial for the 2010 Super sports stadium entitled Green Police where they track down Americans who stick to carbon-unfriendly practices. This was seen as a neuter of marketing strategy and it received mixed reviews. 3. Criticism 3. 1 General criticism towards the automobile industry The arrival of thousands of motor vehicles in large cities has given(p) the pollution problem completely new dimensions. Research shows that car exhaust contributes half of the (atmospheric) pollutants in large cities and contributes to the Greenhouse effect raising the Earths temperature.Among other manufacturers, Audi has hence carried out developments of alternative power sources such as electric and internal combustion engines, which gives them a competitive edge. 3. 2 Greenwashing Greenwashingis a form of propaganda in Public Relations (PR) where g reen marketing is misleadingly used to create an illusion of an organizations aims and policies being environmentally friendly. After publishing their 2010 Super Bowl commercial Green Police Audi was accused of greenwashing. Creating what is sensed as a genuinely environmentally friendly strategy in all their functional areas is one of their largest current challenges.A quote from Jamey BoitersBrand Innovatr blog (Fast Company, 2010) Audi are evolving They must commit to this evolution in everything about their brands, from product development to communications to industry involvement, to prove they are not greenwashing. One of Audis strengths is that they have been involved in responsible projects for years, dating back to as long as 1960. That being said, their most significant competitors such as BMW & Mercedes Benz are increasingly starting to embrace sustainable strategies, which forms a possible threat to Audi.Conclusions The automotive industry is still perceived as one o f the largest agents of adverse effects to the environment. As a result of consumers becoming more sophisticated and educated on environmental sustainability, the competition in the industry gets more intense. It can be recommended for Audi to shift their marketing strategy even more towards sustainability and practice product differentiation to this direction whenever possible. Audi should try chill off the greenwashing claims and coming across as a genuinely responsible corporation.Taking advantage of the decades worth of experience and data that they have gathered could do this and mayhap gain them a head start from their competitors. Word count 1000 Bibliography Abuelsamid, S. 2009. Autobloggreen Audi to add solar power to Ingolstadt factory,(online) Available at http//green. autoblog. com/2009/12/16/audi-to-add-solar-power-to-ingolstadt-headquarters-factory/ (Accessed 21. 11. 2012) Audi AG, 2012. Audi Environmental Foundation Ltd. , (online) Available at http//www. audi-umwelt stiftung. de/auws/brand/de. html (Accessed 22. 11. 2012)Audi AG, 2012. 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