audi of america · the audi brand’s commitment to sustainable mobility has been the driving force...
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Audi of AmericaResponsibility Report 2015
Letter from the President
Audi energyMaking carbon neutral mobility a reality
TDI clean dieselDelivering unmatched efficiency and performance
Fuels of the futurePartnering to revolutionize fuel production
Sustainable sales and servicePromoting a more progressive customer experience
Veterans to techniciansMatching highly skilled Veterans with sophisticated automotive technology
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Letter from the President
At Audi, we are constantly striving for ultimate performance. That is as true for our
approach to sustainability as it is for our vehicles.
Our goal is to make every aspect of mobility sustainable and responsible — for the
customers we serve, the drivers we delight, the professionals we employ, the dealers
with whom we partner, the communities in which we operate, and the planet we share.
The Audi brand’s commitment to sustainable mobility has been the driving force behind
key innovations, including our TDI clean diesel engines, cylinder on demand technology,
and a series of advances involving ultra-lightweight materials.
This commitment also manifests itself in environmental and talent sustainability
initiatives, such as Audi energy, the Audi Progressive Retail Experience, and the Veterans
to Technicians program.
As AUDI AG chairman Rupert Stadler has said, “A courageous company must… accept
responsibility for its employees and society as a whole.”
Automotive companies often think in terms of quarters, model years, or, at the far end
of the horizon, the several-year window from concept to consumer. As a company that
is well into its second century, we strive to be a rarity among automobile makers: a
company that thinks in terms of generations.
Best regards,
Scott Keogh
President
Audi of America, Inc.
Page 2 | Audi of America Responsibility Report 2015
Audi energyAudi energy can make carbon neutral mobility a reality
When customers purchase an A3 Sportback e-tron, they’ll not only be
experiencing the first Audi plug-in hybrid vehicle in the United States, they’ll
also be experiencing the closest thing to carbon neutral driving available
today. This is achieved by an initiative we call Audi energy.
Audi has committed to offsetting the greenhouse gas emissions from every A3
Sportback e-tron. This includes assembly plant production, all shipping logistics
to the U.S., and 50,000 miles of driving. We hope to extend this commitment
to other e-tron vehicles as well.
To reach carbon neutrality, Audi is working with California-based renewable
energy and carbon offsets provider 3Degrees, which has received multiple
awards from the EPA and the Department of Energy. We achieve these carbon
savings through investments in the following programs:
U.S. landfill gas captureAccording to the EPA, municipal solid waste landfills are the
country’s third-largest source of methane, a greenhouse gas
25 times more potent than carbon dioxide. Audi of America is
supporting projects to capture the gas at five landfills across
the United States. Once captured, the gas can be flared off
or, ideally, used to generate power. Located in Virginia, Utah,
Nebraska, and Texas (where there are two), the projects offset a
combined 227,502 metric tons of CO2-equalivalent greenhouse
gas emissions per year. These offsets are verified by the Climate
Action Reserve.
Conservation forestry (Kenya)Deforestation and forest degradation are responsible for almost
20 percent of the world’s greenhouse gas emissions. In 2008,
the United Nations launched the UN-REDD Programme to
create financial incentives to reduce emissions in designated
developing nations where communities often rely on slash
and burn agriculture in order to survive. Audi of America is
supporting the Wildlife Works REDD+ Project to preserve
500,000 acres of highly threatened forest in the Kasigau
Corridor region of Kenya. In addition to producing about 1.2
million metric tons of carbon offsets annually, the Wildlife
Works Kasigau Corridor project has created more than 500 jobs
while generating essential funding for water projects, schools,
medical care, and even wildlife protection.
Page 4 | Audi of America Responsibility Report 2015
Residential solar and energy storageOwners of electric plug-in vehicles are significantly more
likely to own home rooftop solar systems. Through a
partnership with Silicon Valley-based solar products
manufacturer SunPower, which makes the most efficient
and reliable solar panels on the market today, Audi is
offering optional home solar systems with all of our
vehicles in all 50 states. For a limited time, Audi customers
will also receive exclusive access to SunPower’s new energy
storage solution, allowing them to power their homes in
the case of an outage.
Level 2 chargerAlthough we based our carbon neutrality calculation on a
highly conservative model that assumes drivers will use
gasoline 100 percent of the time, we know that e-tron
owners want to drive electric. And we want to encourage
e-tron owners to further reduce well-to-wheel carbon
emissions by driving on electric power as much as possible.
To do that, we are making recharging at home more
convenient than ever. Every new A3 Sportback e-tron comes
with a free Audi-designed mobile charger that works with
120V or 240V and can be carried in the vehicle or mounted
on a garage wall. In addition, Audi of America has partnered
with Bosch Automotive Service Solutions to offer premium
240V conversion and charger installation services, ensuring
that A3 Sportback e-tron owners have the ability to recharge
their vehicles whenever and wherever they want.
Page 6 | Audi of America Responsibility Report 2015
TDI clean dieselAudi pioneered turbocharged diesel engines with direct injection,
introducing TDI engines in Europe in 1989. Since then, Audi has sold over
57,000 cars with the TDI system in the United States.
In the past 5 years, nearly 7 percent of our models sold were diesel
powered. Today, we offer the A3, A6, A7, A8, Q5, and Q7 with
diesel engines.
We remain committed to diesel because we believe it offers an
unmatched mix of efficiency and performance. If one third of Americans
drove clean diesel, America could reduce its dependence on foreign oil by
1.5 million barrels a day, more than the amount currently imported from
Saudi Arabia.
And thanks to particulate filters that eliminate diesel soot and an AdBlue
emissions system that scrubs nitrous oxide emissions, our diesel engines
comply with the world’s most demanding emissions laws.
We know clean diesel can work: Our race cars have won at the 24 Hours of
Le Mans eight times in the last ten years running on TDI engines.
The Audi R18 e-tron quattro has won at Le Mans in three of the last four years, demonstrating that TDI clean diesel and e-tron technology are a winning combination.
Page 8 | Audi of America Responsibility Report 2015
Fuels of the futureBeyond our commitment to making Audi vehicles cleaner
today, Audi is also working to revolutionize fuel production
for the future.
In 2011, AUDI AG formed a strategic partnership
with Joule Unlimited, a biofuels company based
in Massachusetts, to develop sustainable, carbon
neutral fuels.
As Joule’s exclusive automotive partner, Audi has invested
in a plant in Hobbs, New Mexico, where Joule is producing
Audi e-diesel and Audi e-ethanol — synthetic fuels derived
from carbon dioxide, sunlight, and brackish water that
cannot be used for agriculture.
“This facility is the first of its kind able to generate
sustainable fuels directly from sunlight and CO2,” says
Joule president and CEO Paul Snaith. “Together with Audi,
we can achieve a completely new dimension in unleashing
the potential of biofuels — without the disadvantages that
have hindered their use to date.”
Although the project is still in the development phase,
Audi hopes to begin commercial production of the new
carbon neutral fuels in the future.
The first facility of its kind able to generate sustainable fuels directly from sunlight and CO2
Page 10 | Audi of America Responsibility Report 2015
Sustainable sales and service
Our commitment to sustainability and responsibility
does not end with the vehicles we sell — it also applies
to where and how we sell them. Audi has more than 280
dealerships in the United States, employing over 15,000
people and servicing the 1.4 million Audi vehicles on the
road today. Through several design, sales, and service
initiatives, Audi dealers are helping to make every aspect
of the customer experience more sustainable.
Progress in design
As sales continue to climb, more and more
Americans are visiting Audi dealerships
nationwide. In 2007, Audi introduced
new “Terminal” design guidelines so that
the luxury and efficiency of our vehicles
would be matched by the dealerships in
which they are sold. The design update
was followed two years later by the
announcement of a $1 billion investment in
dealership construction and enhancements.
By consolidating space, limiting waste
areas, and using natural light, the Terminal
dealerships save up to 30–40 percent in
costs, achieved in part by a significant
reduction in energy usage. There were
61 Terminal dealerships completed by
the end of 2014, with an additional 34
expected in 2015.
One of the main energy costs associated with dealerships is
lighting. Audi of America offers dealers the option of purchasing
an LED lighting package, which lasts longer and has lower
lifetime costs than the metal halide lighting used in the past.
Today, the vast majority of new Audi facilities are utilizing LED
lighting technology.
In November 2012, Audi celebrated the opening of Audi Pacific,
its first LEED Gold dealership in the United States. Located in
Torrance, California, Audi Pacific features one of the largest
Audi showrooms in the country.
Page 12 | Audi of America Responsibility Report 2015
Progressive retailIn January 2014, Audi of America began introducing the Audi
Progressive Retail Experience, a set of digital tools that improves
our customer sales and service experience and dramatically
reduces the amount of paper used at Audi dealerships nationwide.
Featuring e-brochures via the Sales Assist app, paper-free vehicle
inspection and delivery processes via the eDelivery app, and
electronic transaction and service tools, the Audi Progressive Retail
Experience is taking a big step toward making the interaction
between Audi dealers and customers more sustainable.
Our comprehensive approach to sustainable mobility encompasses
more than new vehicles; it also includes processes to reduce
environmental impact while servicing Audi vehicles already on
the road.
Carbon neutral synthetic oilAudi is now recommending carbon neutral engine oil as the service
oil for all Audi engines, whether they run on gasoline or diesel.
In addition, Audi service centers collected more than 1.1 million
gallons of oil for second use in 2014 — enough to power 1,500
average households for a year.
Battery recyclingFor every Audi Genuine Battery installed, one is recycled. The old
battery is crushed and its components separated; the polypropylene
case is melted down and used to produce new cases; and the lead
is heated to remove impurities and then reused to make new lead
plates. In 2014, more than 45,000 batteries were recycled.
Tire recyclingTypical methods for disposing of tires can result in air pollution,
soil and water contamination, and excessive use of landfill space.
Through our internal recycling program, participating Audi
dealerships submitted over 36,000 tires to be recycled in 2014.
These tires were repurposed to create mulch for playgrounds,
crumb rubber that was utilized in rubberized asphalt, and
tire-derived fuel.
SmartWay transportation partnersThe EPA SmartWay program is a public-private initiative aimed
at reducing the environmental impact of supply chains. Audi of
America uses EPA SmartWay partners Black Horse Carriers and
CEVA Logistics to transport parts to dealerships across the country.
Audi recommends Castrol EDGE Professional OE engine oils. These oils
were certified as CO neutral in June 2014 by BSI PAS2060, the standard for
measuring neutralized emissions. Castrol earned this certification for EDGE
Professional products by investing in a portfolio of emission reduction projects,
including reforestation in Kenya, clean electricity generation in China, and
wind farms in New Caledonia.
In 2013, CEVA Logistics received a SmartWay
Excellence Award for its outstanding
environmental performance, including an
emphasis on fuel-efficient driving and
eco-sustainable warehouse facilities.
Audi is instituting paperless, tablet-based employee
training. Five years ago, the Audi Academy Technician
Program spent more than $650,000 annually on printing.
By early 2016, the Academy expects to eliminate its
printing costs entirely.
Page 14 | Audi of America Responsibility Report 2015
Veterans to techniciansIn early 2013, as Audi of America president Scott Keogh
traveled the country for the Audi brand’s annual series
of dealer forums, there was one concern that came up
in every conversation: Audi dealership managers were
facing a shortage of service technicians capable of
handling today’s sophisticated automotive technology.
At the same time, Veterans of the wars in Iraq and
Afghanistan were coming home and looking for jobs.
Many of the returning soldiers had developed high-tech
skills working on jets, helicopters, and other advanced
military equipment. Recognizing a potential solution,
Audi of America Director of Strategy Reinhard Fischer
approached Keogh with an idea: What if the company
worked to place Veterans in jobs as Audi service
technicians?
Audi of America launched the Veterans to Technicians
program in May 2013. The program recruits former
military technicians using a vast network of Veterans’
organizations and military transition assistance centers,
and then trains and places them in service department
roles at Audi dealerships across the country.
In the first year of the program, more than 100 Veterans
secured positions at Audi dealerships nationwide. Today,
that number is 200 and counting, with every branch
of military service represented. “The Veterans placed
through the Audi Veterans to Technicians program have
already made a profound, positive impact on the high
level of customer service found at Audi dealers across the
United States,” Fischer says.
With the brand experiencing record sales in the U.S., the
demand for Audi technicians is expected to soar, and the
Veterans to Technicians program will remain integral to
the company’s growth.
Audi of America
2200 Ferdinand Porsche Dr, Herndon, VA 20171
(703) 364-7000