
Insufficient certified steel to mandate sustainability, says Volkswagen
There is not enough sustainability certified steel on the market yet to make sustainability criteria a prerequisite for sourcing of steel, says Volkswagen.
The carmaker aims to develop parameters for a sustainability specification sheet for steel to be used in sourcing for its own pressing plants. Though industry standards covering a range of ESG issues are being developed, the volume of certified steel remains prohibitive, the firm says in its 2024 Responsible Raw Materials Report.
The Volkswagen group is continuously evaluating options for joining specific industry initiatives for steel and suitable certification opportunities, it says in the report seen by Kallanish.
It aims to increase the share of low-emission green steel used in its vehicles and is extending its partnerships with suppliers of steel produced with hydrogen and renewable energy.
The firm adds it is in dialogue with its direct suppliers about transparency and risk mitigation measures in their upstream supply chains for coal and iron ore.
Volkswagen – including the equity-accounted Chinese joint ventures – produced 8.95 million vehicles in 2024, down 3.8% on-year. Production in Germany fell 12% to 1.69m units. The proportion of the group’s production accounted for by Germany fell almost 2 percentage points to 18.8%.
In December, the firm agreed to reduce production capacity in Germany by 734,000 units to improve profitability amid overcapacity and increasing competition from China.
Adam Smith Poland