Governance

Responsibility for sustainability is clearly anchored in our management and governance structure. The Board of Management of Volkswagen Financial Services AG and the management boards of its subsidiaries bear overall responsibility for all sustainability-related matters. To ensure effective fulfillment of this responsibility, the relevant departments and the "Sustainability" organizational unit are systematically involved in our strategic direction and decision-making processes.

Board of Management and Executive Board

There is a clear separation of responsibilities between the governing bodies:

The Board of Management defines the strategic goals and monitors their implementation.
The managing directors of the subsidiaries are responsible for operational decisions in day-to-day business.

The Supervisory Board oversees the work of the Board of Management to ensure compliance with legal requirements and reliable corporate governance.

Through a formal self-commitment by the entire Board of Management, sustainability is firmly anchored as a strategic guiding principle. The Chair of the Board of Management (CEO) also sets clear impulses in ESG communication and strengthens awareness of sustainability throughout the company. This fosters a corporate culture in which sustainable business practices are a matter of course and an integral part of everyday work.

The sustainability strategy is fully integrated into the annual strategy cycle and is continuously reviewed and further developed in conjunction with the business and risk strategy.

In addition, all relevant sustainability topics are regularly incorporated into the Executive Board’s reporting to the Supervisory Board, thereby ensuring the close involvement of the supervisory bodies. Progress and target achievement are also monitored as part of the quarterly Executive Board meetings.

Chief Sustainability Officer & Team

The Chief Sustainability Officer (CSO) advises the Board of Management on the systematic integration of sustainability goals into business decisions and reports directly to the Chief Executive Officer. The "Sustainability" organizational unit assigned to the CSO coordinates the activities for the operational implementation of our sustainability strategy. It drives ESG initiatives across business units and Group functions, making a significant contribution to achieving our environmental, social and regulatory objectives. Furthermore, the team is responsible for the ISO 14001-certified Environment and Compliance Management System (ECMS) and ensures that processes and measures are effectively and consistently implemented in line with clearly defined environmental and compliance standards.

Sustainability, business and risk strategy

The sustainability, business and risk strategies of Volkswagen Financial Services AG are closely intertwined and form integral components of the company's overall management framework. The business strategy focuses on the role of Volkswagen Financial Services as a sales enabler for the Volkswagen Group and places the sustainable development of the product and service portfolio at the center.

The sustainability strategy establishes the long-term framework for systematically integrating environmental, social and governance (ESG) considerations into the company's business model, taking into account Group-wide objectives as well as regulatory and supervisory requirements. It provides strategic direction for products, processes, and business relationships and supports the transformation of the business model.

The risk strategy ensures that the implementation of the business and sustainability strategies remains aligned with the company's risk-bearing capacity and its capital and liquidity resources. The close integration of these strategies contributes to the long-term stability, resilience and regulatory compliance of Volkswagen Financial Services AG.

ESG risk management and ESG reporting

ESG risk management

Volkswagen Financial Services integrates ESG risks into its established risk management framework across all existing processes, risk categories, and the established risk ownership structure. Relevant ESG risk drivers are identified through the company's materiality analysis. Risk appetite is defined in the Risk Appetite Framework and monitored through specific metrics.

ESG criteria are incorporated into credit approval and residual value management processes to identify and address potential risks early. The risk management department is also responsible for internal ESG reporting and for preparing the environmental risk disclosures required under the Pillar III regulatory framework.

The Chief Risk Officer (CRO) is responsible for managing ESG risks and reports to the Supervisory Board and the Board of Management on the overall risk situation.
Internal Audit assesses whether ESG risks are being handled appropriately and evaluates the adequacy of the governance structures, processes and specialized control functions in line with the Minimum Requirements for Risk Management (MaRisk).

ESG reporting

Die Maßnahmen und Ziele der Nachhaltigkeitsstrategie der Volkswagen Financial Services AG werden in der konsolidierten Nachhaltigkeitsberichterstattung i.S.d. Richtlinie (EU) 2022/2464 („CSRD“) der Volkswagen Group berücksichtigt. Seit dem Offenlegungsbericht zum 31. Dezember 2024 müssen im Rahmen der Säule‑III‑Offenlegung erstmals umfangreiche nachhaltigkeitsbezogene Informationen veröffentlicht werden.