Andrew Bannister, Head of Environmental Management at VW UK spoke at the FM & Property Event April 2013

1. Environmental Action from The Volkswagen Group
The benefit of supply chain management
Andrew Bannister, UK Head of Environmental Management

2. Who are we?
• Audi
• SEAT
• Skoda
• Volkswagen Commercial Vehicles
• Volkswagen Passenger Cars
• Bentley
• MAN
• Scania
• Lamborghini
• Bugatti
• Ducati
• Volkswagen Financial Services

3. Our Global Scale

4. Our Global Scale
Brazil
Mexico
Argentina
South Africa
Spain
Portugal
Emden
SHEERNESS
GRIMSBY
TYNE

5. Our environmental impact – Vehicle Logistics
Contribution to
CO2 emissions
= 22,700 tonnes
Over 108,000 bath nights
This would last you 300 years
Road fuel = 8.7 million litres or £11.4 million

6. Our environmental impact – UK Logistics Including Parts
Road fuel =
2.7 million litres
or
£3.5 million
Contribution to CO2
emissions 7,000
tonnes
Enough to overfill an
Olympic Sized Swimming Pool!

7. At fuel consumption of 40mpg, consumes 125,000 gallons, 562,500 litres or £730,000
Our environmental impact
Five million vehicle miles per year on
business
At average speed of 40mph, equates to 16,000 person-days
or £3.5 million
10 return trips to the
moon

8. Our environmental impact – Total Electricity Use
13 million KWh
Would power
1386 average
family homes
for a year

9. Our environmental impact – Total Gas Usage
4.2 million KWh Enough for a
good Friday
night in 100
chip shops

10. Our environmental impact – Total Fuel Use
20 Million Litres
Would total
150,000,000km
in this Audi A5
Enough to drive to the Sun

11. Our environmental impact – Total CO2 Emissions
Would fill
40,000 Hot Air
Balloons
200,000 Tonnes

12. Go-ahead for fundamental ecological restructuring - Volkswagen
Group commits to 120g CO2 target
ENVIRONMENT
• Ambitious new sustainability targets
• 30 % reduction in CO2 emissions during period from 2006 to 2015
• Emissions below 120 gram CO2/km mark for first time in 2015
• More than two thirds of €62.4 billion investment program for the period to 2016 to be spent on ever
more efficient vehicles, powertrains and technologies as well as environmentally compatible
production
• Every new model generation will on average be 10 to 15 % more efficient than its predecessor
• Group production to become 25 % more environmentally compatible by 2018
• 40 % reduction in greenhouse gas emissions from production-related energy supplies by 2020
• Some €600 million to be invested in expanding renewable energies such as wind, solar and hydro

13. Environmental Leadership
First amongst our peers, in the vanguard of UK industry
Plan – Communicate – Embed – Deliver – Report
Material Resources Waste Air Quality WaterCarbon
Reduce intensity
by 25% by 2018
c/w 2010
Use -20% by
2018
Avoid pollution
Protect air
quality
Responsible
procurement and
careful use
Zero to landfill by
2018
Group CentralFacilities Audi SEAT Skoda VW VWCVGroup Services
Understand our indicators Benchmark against others
Waste contracts
Heating and cooling
Insulation
Tanks and Taps
Electrical systems
Environmental KPIs
for contracts
Responsible sourcing
policies
Group Travel
HR Policies
Vehicle and Parts logistics
Ports and PDI facilities
Dordon and TPS Centres
Roadside Assistance
Group Networks
Reduce where possible;
Reuse;
Recycle;
Waste-to-energy
Avoid where possible;
Do it more efficiently;
Use sustainable energy;
Off-set when unavoidable
Avoid use where possible;
Re-use where practical;
Source sustainably;
Source responsibly
Avoid solvent/chemical use;
Use better alternatives;
Avoid vehicle use;
Use less, more efficiently;
Use rainwater or grey water;
Store chemicals responsibly;
Use Sustainable Drainage
UK Environmental Strategy

14. Group Services Initiatives Strategy Fit
Vehicle Operations Telematics fitted to logistics haulage fleet reduces carbon emissions by up to 8%. Dual-fuel
trial offers potential dramatic carbon reductions. Energy efficiency study at ports
identifies energy savings from lighting and security systems. Central PDI will drive carbon
efficiencies. Trial Driver Training achieves 14% fuel economy improvement.
Parts Operations Telematics fitted to parts haulage fleet reduces carbon emissions by up to 8%. Liquid
Natural Gas trial for haulage offers potential 20% carbon reductions. Dordon Warehouse
goes ‘Zero Waste to Landfill’ in 2012. First full year of operation of Dordon Solar scheme
delivers above-expectation energy savings. Phase 2 Solar Scheme for 2013 could multiply
energy output by factor of twenty.
Trade Parts Specialists Tracking systems fitted to logistics vehicles reduce fuel consumption and increase safety.
Energy Label surveys of all standalone TPS centres completed ahead of schedule by
November 2012. Pollution prevention measures implemented at all TPS centres to avoid
water pollution from oil storage. Battery return scheme reduces waste and improves
recycling.
Roadside Assistance KPIs for phone-fix and preventative campaigns reduce travel activity and enhance CS.
First-time fix reduces travel and drives carbon reductions.
Retail Networks Dealer Energy Efficiency guide and Green Design Guide issued. Agreement from Brands
that these will be publicised commencing November 2012 (Skoda brand activity).

18. Why did they
do that for us?