California Assembly Bill 1305 Disclosure

Net Carbon Neutrality Target 

 

Audi of America aims to become net carbon neutral by 2050 - from the supply chain and production across the full lifecycle of our vehicles. This target is expected to be achieved through the efficient and circular use of resources, reducing CO2 emissions wherever possible across all operations, employing more sustainable manufacturing techniques, and by selling zero-direct emission plug-in electric vehicles. Audi will offset the remaining small percentage of emissions that we are unable to directly reduce ourselves. For information on how AUDI AG, Audi of America’s parent company, has set and plans to achieve these targets, please see pages 70-75 of the Audi Report 2024 and pages 272-277 of Volkswagen Group’s 2024 Sustainability Report.

 

 

Interim Progress and Data Verification

 

Volkswagen Group of America conducts an annual greenhouse gas (GHG) and environmental inventory of its scope 1, 2, and 3 emissions in line with the GHG Protocol and with the support of an external consultant. Audi of America’s GHG emissions are included in this inventory, which enables progress to be tracked and for improvement to be identified. We aim to begin publicly disclosing our GHG emissions in 2025. At this time, Audi of America’s decarbonization data is not third-party verified. Our data undergoes a rigorous review process internally and with our external environmental consultant. For more information on the Volkswagen Group’s, Volkswagen Group of America's European parent company, decarbonization progress, please see pages 272 through 277 of the Volkswagen Group’s 2024 Sustainability Report.

 

 

Emission Reduction Target

 

Audi of America has a goal to reduce our net carbon footprint by 30% by 2025, compared to 2019. This refers to the carbon footprint of our North American business operations and is calculated in the aforementioned greenhouse gas (GHG) and environmental inventory. To achieve this goal, Audi of America has implemented sustainability initiatives, outlined in the table below. At this time, Audi of America’s decarbonization data is not third-party verified.

 

 

Table

Activity

Description and Emissions Reduction Benefit

Sustainable Aviation Fuel Procurement

Audi of America has procured Sustainable Aviation Fuel emission reduction certificates from partner airlines to offset a portion of our own Scope 3 emissions from business air travel.

Electric Heavy-Duty Semi-Truck

Audi of America has implemented, through our logistics provider, all-electric heavy-duty Class 8 trucks along three logistics routes in California. The trucks travel daily from parts distribution centers to Audi dealers.

 

We are currently in the process of conducting our 2025 greenhouse gas inventory, which will provide information on whether or not Audi of America has met its carbonization target for 2025.

 

 

 

 

Production Carbon Neutrality Target

 

Audi’s production facilities around the globe have been certified net carbon-neutral since January 1, 2025.[1] For information on how AUDI AG has achieved this target, please see page 71 of the Audi Report 2024. For information on the independent 3P verification of carbon neutrality and emissions at Audi production sites, please see page 72 of the Audi Report 2024. Below is the detailed information regarding the carbon offsets that AUDI AG purchases to compensate for unavoidable emissions throughout the production process.[2],[3],[4]

 

 

Table

Requirements under California AB 1305

Project 1

Project 2

Project 3

(a) The name of the business entity selling the offset and the offset registry or program.

Volkswagen Kraftwerk GmbH, Verra Verified Carbon Standard (VCU)

Volkswagen Kraftwerk GmbH, Gold Standard

Go2Markets GmbH, Gold Standard (Impact Registry)

(b) The project identification number, if applicable.

7932-442272891-442300726-VCU-050-MER-BR-1-1903-01012018-31122018-0

11561

GS4238

(c) The project name as listed in the registry or program, if applicable.

VTRM Renewable Energy 2

Salkhit Wind Farm

Methane Gas Capture and Electricity Production at Kubratovo Wastewater Treatment Plant, Sofia, Bulgaria

(d) The offset project type, including whether the offsets purchased were derived from a carbon removal, an avoided emission, or a combination of both, and site location.

Avoidance — Renewable Energy — Wind Park (Brazil)

Avoidance — Renewable Energy — Wind Park (Mongolia)

Avoidance — Methane Gas Capture — Wastewater Treatment Plant (Bulgaria)

(e) The specific protocol used to estimate emissions reductions or removal benefits.

Verra Registry

Gold Standard Registry

Gold Standard Registry

(f) Whether there is independent third-party verification of company data and claims listed.

Verra Search Page

GSF Registry / Gold Standard Assurance

GSF Registry

(g) This section does not apply to entities that do not operate within the state or do not purchase or use voluntary carbon offsets sold within the state.

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-

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Electric Vehicle Lineup Target

 

Audi of America had a target for 30% of the US model lineup to be fully battery electric or plug-in hybrid by 2025. While AoA has made substantial strides towards that goal, we fell short by 3% in our target year. Audi’s model year 2025 lineup is comprised of 27% battery electric and plug-in hybrid vehicles.

 

 
 

[1] Audi regards net carbon neutrality as a state in which, following the exhaustion of other possible measures aimed at reducing the still remaining CO2 emissions caused by the products or activities of Audi and/or currently unavoidable CO2 emissions within the scope of the supply chain, manufacturing and recycling of Audi vehicles, at least quantitative compensation is provided through voluntary and globally conducted compensation projects. Throughout the utilization phase of a vehicle, meaning from when a vehicle is delivered to a customer, CO2 emissions are not taken into account.

[2] Fiscal Year: The information refers to the emission volumes offset to date for fiscal year 2024. Offsetting for partial volumes in 2024 is not yet complete. The projects intended for this purpose will be added as soon as the corresponding data becomes available.

[3]  Scope of the Reported Data: The reported offset volumes cover only Scope 1 and Scope 2 emissions from Audi production sites in Ingolstadt and Neckarsulm (Germany), Brussels (Belgium), Győr (Hungary), and San José Chiapa (Mexico). They do not include other Volkswagen Group sites where Audi models are also produced, sites of other Group brands (e.g., Lamborghini, Ducati), or upstream and downstream processes (e.g., supply chain) or any other additional volumes.

[4] Availability of 2025 Data: The data for fiscal year 2025 is expected to be available by mid-2026, as offsetting is performed retroactively based on unavoidable GHG emissions from the respective calendar year.

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