Digital Transformation Consulting

Volkswagen faced the challenge of effectively communicating and aligning their ambitious decarbonization, digitalization, and sustainability initiatives with stakeholder expectations and internal culture. Despite launching a comprehensive ESG strategy, the company struggled with clarity and cohesiveness in their sustainability narrative, which hindered investor confidence and brand positioning within the evolving mobility landscape. To address this, a tailored solution was implemented in three phases: first, assessing VW’s ESG standing relative to industry peers using the S-Ray machine learning platform to generate precise ESG ratings; second, conducting executive workshops to build support for a clear ESG vision focusing on decarbonization, circular economy, workforce transformation, and human rights; and third, developing a concise ESG narrative that distilled 18 sustainability topics into four core focus areas with specific, measurable KPIs.

As a result of this targeted approach, VW condensed its sustainability focus, establishing easily understandable ambitions and KPIs for each priority area, which streamlined their measurement and implementation processes. This integration of ESG objectives into operational functions created a direct link between VW’s S-Ray scores and its overarching corporate strategy, especially aligning with their “NEW AUTO” plan to transition toward a software-driven, electric, and fully networked mobility provider. The tangible impact includes accelerated progress on sustainability goals, increased stakeholder trust, and recognition as a market leader in e-mobility—evidenced by the Volkswagen ID.3 becoming the second best-selling car in Europe in December 2020 and the company’s perception shifting to that of a leader in electric mobility by 2021. These strategic improvements contributed to VW’s market valuation rising in line with other global firms, reflecting investor confidence in VW’s clearer, more focused sustainability roadmap and growth trajectory.