Report: Sustainability in Audi AG

Personal learning & Careers Task 7 Environmental Sustain top executive in Audi AG By 1213666 To Romas Malevicius 22. 11. 2012 tabularize of contents List of Figures Summary Introduction 1 Audi AG Sustainability Procedures 1. 1 Technologies 1. 2 profligacy & piddle management 2. Sustainability as a composition of Audis CSR 2. 1 Audi Environmental Foundation 2. 2 Environmental accordance for Bavaria & EMAS 2. 4 Recognition 3. Criticism 3. 1 General critical review towards the car 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 discussion section of the federations Corporate sociable Responsibility and views critical summary of the automobile industry to enable making balanced conclusions. Introduction A r eport by the United Nations entitled Our Common Future (1987) delimitate sustainable development as development, which meets the inescapably of the present without compromising the ability of future generations to meet their own needs. In addition to this, so called intergenerational beauteousness has remained a theme in defining environmental sustainability. Essentially it core seeking the minimization of any adverse (long-term) impacts on future generations. The lead of this report is to investigate the actualizations of the aforesaid principles in the corporate doings of Audi AG. Audi AG is a motor vehicle manufacturer, which comprises of the brands Audi, Ducati and Lamborghini. It is a multinational company (MNE) that employs some 46,000 community 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 neve r bring to pick up a positive impact on the environment. They are, however, investing billions of pounds in responsible technologies. These include lightweight space frames, diesel engines and Start-Stop technologies. The purpose of these is to subjugate fuel consumption and hence cut CO2 emissions. 1. 2 Waste & water management Audis slogan Advancement Through engine room essentially outlines the companys principle of constant innovation.The brand determine also state that corporate activities are shaped by the bank to preserve resources and take a responsible approach to the environment. They abide undertaken numerous actions to introduce these principles. For instance, assembly line waste is separated & choose on-site and packaging is optimised in the planning stage, which reduce transport needs substantially. Audi uses various sources of energy, much(prenominal) as a local waste treat plant and the Combined Heat, Cooling and Power achievement facility (CHCP) in the In golstadt factory.Together they save the company 37,000 tonnes of CO2 a year. For car yield the company collects rainwater. They also feed 96. 3 per cent of tot 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 issuing their production output has substantially increased in the last two decades only 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 most compelling evindence is the Audi Environmental Foundation Ltd. , which takes voluntar y action in environmental, social and economic issues by conducting and funding research projects. 2. 2 Environmental covenant for Bavaria & EMASAudi was a founder member of the Environmental Pact for Bavaria, which now includes around 1,350 companies. The Pact was formed 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 alter operational environmental protection on site. 2. 4 RecognitionBased on the preceding(prenominal) 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 potassium company. Audi of America President Johan de Nysschens spoke at the c ompanys 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 Bowl entitled Green patrol where they track down Americans who stick to carbon-unfriendly practices. This was seen as a change of selling outline 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 devoted the pollution problem completely new dimensions. Research shows that car ticktack contributes half of the (atmospheric) pollutants in large cities and contributes to the Greenhouse effect raising the solid grounds 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 green selling is misleadingly used to create an illusion of an organizations aims and policies being environmentally friendly. afterwards publishing their 2010 Super Bowl commercial Green Police Audi was incriminate of greenwashing. Creating what is perceive as a genuinely environmentally friendly strategy in all their functional areas is one of their largest current challenges.A quote from Jamey Boiters daub Innovatr blog (Fast Company, 2010) Audi are evolving They must commit to this evolution in everything closely their brands, from product development to communications to industry involvement, to prove they are non greenwashing. One of Audis strengths is that they have been involved in responsible projects for years, geological dating back to as long as 1960. That being said, their most pregnant competitors such as BMW & Mercedes Benz are increasingly driveing to embrace sustainable strategies, which forms a possible threat t o Audi.Conclusions The automotive industry is still perceived as one of the largest agents of adverse effects to the environment. As a result of consumers becoming more sophisticated and educated on environmental sustainability, the disputation in the industry gets more intense. It can be recommended for Audi to shift their selling strategy even more towards sustainability and practice product differentiation to this flush whenever possible. Audi should try shaking 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 possibly 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) on hand(predicate) at http//green. autoblog. com/2009/12/16/audi-to-add-solar-power-to-ingolstadt-headquarters-factory/ (Accessed 21. 11. 2012) Audi AG, 2012. A udi Environmental Foundation Ltd. , (online) Available at http//www. audi-umweltstiftung. de/auws/brand/de. hypertext mark-up language (Accessed 22. 11. 2012)Audi AG, 2012. 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Audi green issues and sustainability, (online) Available at http//www. udi. co. uk/content/dam/audi/production/PDF/Fleet/FleetSalesPDF231209/Audi_Green_issues_and_Sustainability_Jan2010. pdf (Accessed 21. 11. 2012) Boiter, J. 2010. Fast Company Can Brands Launch Sustainable Campaigns Without world Accused of Greenwashing? , (online) Available at http//www. fastcompany. com/1563389/can-brands-launch-sustainable-campaigns-without-being-accused-greenwashing (Accessed 21. 11. 2012) Britannica Encyclopedia, 2012. Automotive Industry, (online) Available at http//www. britannica. com/EBchecked/ outlet/45050/automotive-industry/65791/Adv