Long-term competitiveness and a positive impact on our environment

“Behind these three letters lie three concepts that represent Audi Hungaria’s philosophy and its commitment to the future. In order for us to have a coherent and complete picture of the present and the way forward, we need to have a balance between these three areas,” says Alfons Dintner, chairman of the board of management of Audi Hungaria.

The role of ESG in corporate strategy is an increasingly important one: companies that use this approach to construct how they manage their activities will lay the foundations for their future economic success. At Audi Hungaria, we believe these three letters and long-term competitiveness go hand in hand. Sustainability is a crucial pillar in our Next Level strategy – our key goal is to “Make a positive impact on our world”. We do not expect short-term results from these factors we have incorporated into our business activities. Instead, we  see them as the key to long-term, sustainable and successful operations, and believe that paying close attention to these factors will benefit everyone involved. Our ESG programme, launched in 2022, includes putting the “ESG Factory of the Future” into operation. Here, Audi Hungaria’s goal is to have a positive effect in the areas of environment (E), society (S) and corporate governance (G) through forward-looking measures and innovations that further broaden our already comprehensive commitment to ESG.

Let’s take a look at exactly what ESG means to Audi Hungaria!

E - Environment

As a sustainable company, Audi Hungaria is actively working towards a greener future. In line with AUDI AG’s e-mobility strategy, which will see the brand bring 30 different electric models to the roads by 2025, Audi Hungaria has also embarked on the path towards e-mobility. We have been producing electric motors – which account for an ever-increasing share of the total production volume – since 2018, and our future also promises to be electric: the next generation of electric motors, the PPE and MEBeco drives, are almost ‘at the factory gates’, while the electric powertrain Q3 PHEV models are rolling off the production line at our vehicle factory. Also helping protect the environment alongside these products are our cutting-edge production technologies. One notable example of this is the Aluminium Closed Loop, which has helped us to reduce the consumption of raw materials and CO2 emissions.

AUDI AG’s priority goal is to ensure that all of its production sites will be carbon neutral in their operations by 2025. At our facilities in Győr, this objective has already been met: our balance sheet has been proudly carbon neutral since 2020. We are not stopping there, however: Audi Hungaria will continue to contribute to the creation of a sustainable future with additional decarbonisation projects. This year, in cooperation with the Audi Group’s other production sites, we have organised another of our Environment Week event series aimed at raising the environmental awareness of our employees and drawing attention to the importance of decarbonisation, resource efficiency, water saving and biodiversity conservation.

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S - SOCIETY

Audi Hungaria is an integral part of its home city, and is actively involved in the area as part of its social responsibility work. Responsibility for both its employees and its region is one of Audi Hungaria’s core values. Our company offers its employees long-term, secure jobs and an ergonomic working environment, that takes care of their health and well-being while also respecting equal opportunities and social diversity.

Yet this responsibility also extends beyond our factory gates: every day, our remarkable sponsorship and charitable activities contribute to the region and help improve the quality of life of the people who live here. Of course, our nearly 30 years of shared history with the city of Győr means we are duty bound to play an active role in local communities. Which is why, as part of its corporate social responsibility work, Audi Hungaria supports cultural and sporting life in the region, is involved in the education of future generations, and also aids social initiatives that help improve the quality of life of the region’s residents. This motivation stems from the values of the company. Through our 12,000 colleagues, we are active members of the community, as our actions make clear. We are the main sponsor of the AUDI ETO KC women’s handball team in Győr, for example, which over the past five years has been the most successful club in Hungary. We can also highlight our cultural partners, the Győr Ballet and the Győr Philharmonic Orchestra, and their success stories, which are in some small way our own stories, too. We are also proud to have the chance contribute to their future successes. We are connected to the organisations we sponsor by our shared values.

Diversity and inclusion is a key theme for us, and it is also an integral part of our corporate culture, which is why we have renewed our partnerships with this in mind. It is in this spirit that the company has decided to support not only elite sports, but also recreational sports and sports for people with disabilities. Among our new partners, the Kayaking and Canoeing Division of the Győr Water Sports Association provides regular sporting opportunities for hundreds of young people, including those interested in not just kayaking and canoeing, but also dragon boats and SUPs. In addition to promoting organised recreational sports, our company is also committed to achieving the widest possible access to sports that bring joy, community and health. Our partners work hard to make this goal a reality: EMBERsÉG DSE, the Hungarian Maltese Charity Service, and Staféta DSE. Thanks to the selfless work of these organisations, local young people with disabilities are being given the opportunity for an even better and more fulfilling life. Of course, as part of our responsibility to the community, we also stood by the city when the coronavirus epidemic struck. Audi Hungaria repeatedly lent a helping hand to the Petz Aladár County Teaching Hospital in Győr in the fight against the pandemic, and has also supported other health and social institutions in the region.

As a company, we proudly stand alongside our community, and encourage our colleagues to partake in volunteer activities. We also pass on our expertise to other stakeholders in the economy, especially local enterprises, by helping them develop their businesses. We also offer support opportunities to our supply chain participants: through our Social Procurement programme, we target Hungarian companies that want to achieve economic success and create added value for society with their business model, for example by employing people with reduced working capacity. By collaborating with such small businesses, we are able to achieve a direct, positive social effect with a longterm sustainable impact. We are stronger together – and together we can promote the future development of our region.

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We are connected to the organisations we sponsor by our shared values.

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G - GOVERNANCE

Corporate governance is about doing business sustainably, which includes complying with laws and regulations, managing risk and reputation, and acting with integrity. For us, good corporate governance means making all our decisions in a transparent and compliant way, taking into account economic, environmental and social aspects. It’s vital for us to engage our internal and external stakeholders and encourage dialogue on the alignment between sustainability and the economy. To this end, in 2022 we launched an extensive stakeholder survey in a strategic partnership with University of Hamburg professor Dr. Alexander Bassen, a renowned expert in the field of ESG governance. This collaboration includes the process and IT preparations we have already begun in relation to the new ESG reporting requirements we will face in the upcoming year. This work will help ensure our long-term competitiveness and that we remain true to our role as a responsible employer.