Company Name: SAIC Volkswagen Automotive Co., Ltd.
Award Category: ESG Performance
Company Size: Large Business Group
Environment
Climate Change:
SAIC VOLKSWAGEN has always aimed for “Way to Zero ” and has responded to climate change through green production and operations.
SAIC VOLKSWAGEN has formulated the CSR2025 strategy, which plans the Company’s decarbonization path and sets greenhouse gas emissions and other environmental key performance targets for various departments and factories.
Each year, the Company tracks the progress of various targets and adjusts working methods in a timely manner. The Company continuously discloses environmental achievements through CSR reports. In 2022, the Company’s carbon dioxide emissions decreased by 27.6% compared to the previous year.
SAIC VOLKSWAGEN conducts environmental training for employees, suppliers, and dealers every year. On environmental commemorative days, such as World Earth Day, the Company organized advocacy activity with employees.
In 2022, the Company invested a total of RMB 95.12 million in green management, including environmental protection practices, treatment of the three wastes and technical improvement projects.
Natural Resources and Energy:
SAIC VOLKSWAGEN has established a comprehensive environmental management system, focusing on resource and energy conservation and actively utilizing renewable energy.
In 2022, all SAIC VOLKSWAGEN factories have passed the ISO14001 environmental management system and energy management system audits.
In 2022, the Anting site achieved full coverage of renewable energy in its production phase, making it the first automobile manufacturer using 100% renewable energy in production in Shanghai.
SAIC VOLKSWAGEN actively promotes photovoltaic power generation projects at each plant. In 2022, the Yizheng plant reduced carbon dioxide emissions by approximately 30,300 tons through photovoltaic power generation. The Ningbo plant reduced greenhouse gas emissions by approximately 40,500 tons.
In 2022, SAIC VOLKSWAGEN’s five key environmental performance decreased by an average of 29% compared to 2015.
SAIC VOLKSWAGEN saved energy through lighting renovations and the installation of wind-and-solar-powered LED street lamps. The Company also held energy-saving and carbon reduction innovation competitions.
Prevention of Pollution:
SAIC VOLKSWAGEN strictly manages various types of pollutant emissions and actively explores solutions from source substitution to end-of-pipe disposal.
In terms of source substitution, the company optimized production processes and reduces waste generation by introducing new technologies. For example, the company has adopted a water-based paint process 2010V to gradually replace the conventional solvent-based process.
In terms of end disposal, SAIC VOLKSWAGEN strictly controlled pollutants and waste, and set up treatment stations within the base to ensure that wastewater and exhaust gases were discharged after treatment. For example, the Nanjing plant achieved the goal of recycling all industrial waste and incinerating all domestic waste to generate electricity for recycling.
In 2022, SAIC VOLKSWAGEN organized pollution prevention and control-related training such as “Chemicals Recycling Access Audit Capability Enhancement” and “Training on Interpretation of Emission Permit System for the Automotive Industry” to help employees enhance their awareness.
Other Actions Taken for Environmental Protection:
SAIC VOLKSWAGEN focuses on biodiversity protection in the construction and operation of its plants.
SAIC VOLKSWAGEN carried out voluntary biodiversity conservation activities, inviting professional institutions to assess the ecology of the park based on biodiversity indicators and working with employee volunteers to protect the ecological environment of the park.
In 2022, SAIC VOLKSWAGEN invited more than 30 volunteers from Ningbo plant and surrounding communities, under the guidance of professionals, learned about the local biodiversity. In the plant, they learned about green and environmentally friendly technologies such as rainwater recycling and solar photovoltaic power generation and conducted vegetation and biological observations in the factory. Volunteers also went to surrounding wetlands to conduct wetland and bird surveys to understand the local ecological conditions.
Social
HR Development and Engagement:
SAIC VOLKSWAGEN has always adhered to relevant laws and regulations, firmly safeguarded the legitimate rights and interests of employees, and cared for employees, guarantees their health and safety, provided smooth career development channels, and promoted the sustainable development of the company and employees.
In 2022, the Company achieved a 100% labor contract signing rate and social insurance coverage rate; a safety training coverage rate of 100%; and zero occurrences of occupational diseases.
Organize staff training, 835,074 person-times online and 78,328 person-times offline. A total of 2,332 psychological counseling sessions were completed under the EAP employee mental health program, and 23 mental health seminars were held.
The Company coordinated with SAIC Group’s Labor Union to provide special funds for those in need. The total amount of relief provided amounted to RMB1,950,300, benefiting 228 people. A total of RMB216,000 was spent on the “Lighting up Hearts” project that aimed to help employees with practical measures. Last but not least, a total of RMB2,687,700 was spent on daily support and relief.
Diversity, Equity and Inclusion:
SAIC VOLKSWAGEN has created a diverse and equal working environment. During recruitment and hiring, the Company treats all candidates equally, without favoritism towards or discrimination against gender, race, age, disability, or any other personal factor. The Company actively builds equal and harmonious labor relations.
In 2022, SAIC VOLKSWAGEN had a total of 29,965 employees, with women accounting for 13%, disabled employees accounting for 0.2%, and minority employees accounting for 2.3%.
So far, SAIC VOLKSWAGEN has been awarded the “Outstanding Employer in China” by the Top Employer Institute for 17 consecutive years.
Product Liability:
SAIC VOLKSWAGEN adheres to the ISO9001 quality management system and VDA6.1 system standards, strengthening a customer-centric quality management system across the entire value chain. In 2022, relying on the Company’s quality information management platform, the Company monitored key safety incidents and key component failures. After identifying these risks, the Company promptly coordinated with relevant departments to implement corrective measures and improve safety technology to ensure consumer safety.
At the customer level, SAIC VOLKSWAGEN conducted product definition work based on a deep understanding of users’ actual needs and continuously its original customer service system and ecology. The Company has built up a matrix of private user communication channels centered on the SAIC VOLKSWAGEN Super App and supplemented by the official WeChat account, official applet and official Weibo account, to make communication between customers and the Company more convenient and efficient.
SAIC VOLKSWAGEN attaches importance to independent innovation and intellectual property (IP) protection. In 2022, the Company obtained 143 patent authorizations.
Supply Chain:
SAIC VOLKSWAGEN focuses on supply chain management and development, formulating the “SAIC VOLKSWAGEN Supplier Sustainability Requirements” which integrates the Global Compact principles, the Business Charter for Sustainable Development of the International Chamber of Commerce and the relevant agreements of the International Labor Organization. It is clearly stipulated that all SAIC VOLKSWAGEN suppliers shall fulfill their responsibilities as required, and that SAIC VOLKSWAGEN will terminate the cooperation relationship in time if they are found to be in violation of the relevant commitments.
SAIC VOLKSWAGEN achieved a 99% sign-up rate for Tier 1 supplier sustainability requirements for production and procurement.
SAIC VOLKSWAGEN requires Tier 1 suppliers to maximize the use of renewable energy by 2030 to help to build a green supply chain.
In 2022, SAIC VOLKSWAGEN continued to conduct supplier-related training, covering 50 suppliers.
Community Engagement:
While seeking corporate development, SAIC VOLKSWAGEN is committed to taking on more responsibilities to give back to society.
In 2022, SAIC VOLKSWAGEN continued to cooperate with the China Youth Development Foundation, donating RMB 2 million to the education project “Starry Program” to help improve the hardware conditions of rural schools. The project has donated more than RMB 16 million, benefiting 11 schools.
SAIC VOLKSWAGEN leverages its advantages in the field of scientific and technological engineering to develop STEM courses for rural schools, allowing rural students to enjoy high-quality science education.
SAIC VOLKSWAGEN, in collaboration with the China Women’s Development Foundation, supported community epidemic prevention work in Shanghai. Volunteers helped residents in Shanghai solve car power shortages, providing services for about 4,000 vehicles.
In 2022, SAIC VOLKSWAGEN invested RMB650,000 in rural revitalization, and purchased goods with a worth of RMB14.006 million from paired-off regions.
Corporate Governance
Governance Organizational and Mechanism:
SAIC VOLKSWAGEN observes business ethics including honesty, integrity and self-discipline, with strict adherence to relevant laws and regulations. SAIC VOLKSWAGEN has formulated and strictly enforced the Antimonopoly Guidelines, Personal Information Protection Guidelines, along with stringent management measures against corruption and fraud in all kinds of business activities.
In 2022, the Company’s information security measures were planned, implemented, audited and optimized in accordance with the requirements of the IS027001 international information security management system. Thus, the processing of whole process management, classification and grading, emergency response, risk assessment, and protection of individual rights and interests.
SAIC VOLKSWAGEN has provided training, education, and guidance to enhance employees’ awareness of cyber security regulations.
Innovation Sustainability:
SAIC VOLKSWAGEN is committed to achieving continuous breakthroughs and innovations in the fields of new product development, new energy vehicles, and intelligent internet connectivity. In 2022, SAIC VOLKSWAGEN participated in a total of 46 groups for the national standards and 11 sub-technical committees of the National Technical Committee of Auto Standardization, and invested in Forward-looking Research and Intelligent Driving R&D for approximately RMB 85 million, and applied for 65 patents.
SAIC VOLKSWAGEN introduced its CSR2025 strategy in 2020, and planned the Company’s sustainable development path for the next five years. The CSR2025 strategy is divided into two categories: basic responsibilities and public welfare programs. Through strengthening internal governance and optimizing public welfare programs related to social responsibilities, it aims to make the Company a responsible corporate citizen and fulfill its responsibility in environment, society and governance.
Extra Points
ESG / Sustainability / CSR reports, e.g.:
2022 SAIC VOLKSWAGEN CSR report:
https://www.csvw.com/csvw/thirdpart/responsibility/%E4%B8%8A%E6%B1%BD%E5%A4%A7%E4%BC%972022%E5%B9%B4%E5%BA%A6%E4%BC%81%E4%B8%9A%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB%E6%8A%A5%E5%91%8A.pdf
ESG Verification or Certification:
ISO50001 certificate, ISO14001 certificate
Responsive to or engaged in ESG Initiatives / Standards / Goals:
Responsive to or engaged in ESG Initiatives / Standards / Goals, e.g. United Nations Global Compact, UN Sustainable Development Goals, CDP, SBTi, etc.
See CSR Report P6-7
Other ESG related awards, e.g. TOP ESG Employer:
“Outstanding Employer in China” by the Top Employer Institute
