Independent Assurance Report

To Volkswagen Aktiengesellschaft, Wolfsburg

We have been engaged by Volkwagen Aktiengesellschaft, to perform an independent assurance engagement to attain moderate assurance1 in respect of observing the AA1000 AccountAbility principles and of selected sustainability information set out in the Sustainability Report of Volkswagen AG, Wolfsburg, (the “Company”) for the business year from 1st January to 31st December 2013 (the “Sustainability Report”). Our independent assurance engagement refers to qualitative information set out in the printed version of the Sustainability Report and on selected quantitative sustainability information. The quantitative sustainability information selected by the Company and evaluated by us is marked separately with the symbols and .

Management’s Responsibility

Company’s Board of Managing Directors is responsible for the compliance of the sustainability management with the principles of inclusivity, materiality and responsiveness as defines in the AccountAbility Principles Standard (2008) and the preparation of the Sustainability Report in accordance with the criteria stated in the Sustainability Reporting Guidelines Vol. 3.1 (pages 7 to 17) of the Global Reporting Initiative (GRI):

  • Materiality,
  • Stakeholder Inclusiveness,
  • Sustainability Context,
  • Completeness,
  • Balance,
  • Clarity,
  • Accuracy,
  • Timeliness,
  • Comparability and
  • Reliability.

This responsibility includes the selection and application of appropriate methods to prepare the sustainability report and the use of assumptions and estimates for individual sustainability disclosures which are reasonable in the circumstances. Furthermore, the responsibility includes designing, implementing and maintaining systems and processes relevant for the preparation of the sustainability report and for ensuring compliance with the AA1000 AccountAbility principles.

Responsibility of the auditor

Our responsibility is to form an opinion, based on our assurance procedures, on whether facts have come to our attention which would lead us to assume that in all material respects

  • the systems and processes installed by the Company are not appropriate for compliance with the AA1000 AccountAbility Principles; or
  • qualitative sustainability information set out in the Sustainability Report has not been prepared in compliance with the criteria set out in den Sustainability Reporting Guidelines Vol. 3.1 (pages 7 to 17) der Global Reporting Initiative (GRI); or
  • the selected quantitative sustainability information marked with a symbol and set out in the Sustainability Report has not been prepared in compliance with the criteria set out in den Sustainability Reporting Guidelines Vol. 3.1 (pages 7 to 17) of the Global Reporting Initiative (GRI).

Within the scope of our independent assurance engagement we did not perform any evidence-gathering procedures on quantitative sustainability information that were not marked with the symbols and separately.

We also have been engaged to provide recommendations concerning the further development of sustainability management and sustainability reporting based on the results of our independent assurance engagement.
We conducted our independent assurance engagement in accordance with AA1000 Assurance Standard (AA1000AS) 2008 and also in accordance with International Standard on Assurance Engagements (ISAE) 3000. These standards require that we comply with ethical requirements and plan and perform the assurance engagement, under consideration of materiality, to provide our conclusion with moderate assurance1, which is the degree of assurance that was required by the Company. We are independent as defined by Section 3.2 of AA1000AS (2008). Due to our expertise and experience with the evaluation of non-financial information, sustainability management as well as social and ecological issues, we have the competencies required to conduct this independent assurance engagement. An independent assurance engagement performed to obtain moderate assurance is less substantial in scope than an independent assurance engagement performed to obtain high assurance2, with the result that a corresponding lower level of assurance is obtained. The audit activities to be performed are selected by the auditor after a due assessment of the circumstances.

1 “Moderate assurance” as specified by AA1000AS (2008) is equivalent to “limited assurance” as specified by ISAE 3000.
2 “High assurance” as specified by AA1000AS (2008) is equivalent to “reasonable assurance” as specified by ISAE 3000.

We conducted our evidence-gathering procedures at the level of the headquarters located in Wolfsburg as well as on the level of selected companies:

  • Audi AG, Ingolstadt, Germany
  • Dr. Ing. h.c. F. Porsche AG, Stuttgart, Germany
  • Scania AB, Södertälje, Sweden
  • Volkswagen Financial Services AG, Braunschweig, Germany
  • Shanghai-Volkswagen Automotive Company Ltd., Shanghai, China

With regard to compliance with the AA1000 AccountAbility Principles, our examination procedures included the following:

  • Interview with relevant contact persons of the competences „Stakeholder Engagement & Stakeholder Dialogue” and “Corporate Responsibility”;
  • Collecting and evaluating the relevant documentation for the stakeholder dialogues, additional communication with stakeholders and participatory formats at the level of headquarters and at the level of selected national companies;
  • Obtaining an understanding of the relevant documentation for the identification and prioritization of sustainability issues and CR fields of action and identified stakeholder expectations at the level of headquarters and at the level of selected national companies.

With regard to the qualitative and with a symbol marked quantitative sustainability information in the Sustainability Report our work included the following examination procedures:

  • Interview with employees of departments responsible for the preparation of the Sustainability Report about the process of sustainability reporting and the related internal control system;
  • Inspection of documents regarding the documentation of the sustainability strategy and understanding of the sustainability organization structure, the stakeholder dialogue and the development process for the sustainability program of the Company;
  • Interview with employees of operating departments who are responsible for single chapters of the Sustainability Report;
  • Examination of the documentation of the systems and processes for collecting, analyzing, clarifying and aggregating of sustainability data and their random testing;
  • Performance of site visits as part of the inspection of processes for collecting, analyzing and aggregating selected data at
    • Audi AG, Ingolstadt, Germany
    • Dr. Ing. h.c. F. Porsche AG, Stuttgart, Germany
    • Scania AB, Södertälje, Sweden
    • Volkswagen Financial Services AG, Braunschweig, Germany
    • Volkswagen Kraftwerke GmbH, Wolfsburg, Germany
    • Volkswagen AG, Werk Wolfsburg, Wolfsburg, Germany
    • Shanghai-Volkswagen Automotive Company Ltd., Shanghai, China
  • Analytical procedures on sustainability data of the sustainability report;
  • Comparison of selected data with corresponding data in the Company’s Annual Report 2013;
  • Gathering evidence on selected data of the sustainability report by inspecting internal documents, contracts and invoices/reports from external service providers.

Material findings and judgments

Findings with regard to the AA1000 AccountAbility Principle of inclusivity: The identification, integration and the active exchange with internal and external stakeholders is carried out by the Company. The involvement of management in the results of the stakeholder management is established. The Company has identified and prioritized their relevant stakeholders. The national stakeholders of the international national affiliates are not yet fully involved in stakeholder management. Formal requirements for stakeholder management are not yet companywide consistently defined.
Findings with regard to the AA1000 AccountAbility Principle of materiality: Prior to the sustainability reporting the Company used the extensive external stakeholder discussions of single brands to identify the main sustainability issues of the Group. The identification of the materiality of the issues is based on appropriate criteria and is established. The rated issues are prioritized in the Sustainability Report of the Company and according to their belonging shown in the identified fields of actions.
Findings with regard to the AA1000 AccountAbility Principle of responsiveness: The Company has established a coordinated and quality assured process for responding to stakeholder requests. The Company has established systematic stakeholder dialogues with selected relevant stakeholders.
On the basis of our moderate assurance engagement to obtain moderate degree of assurance, nothing has come to our attention that causes us to believe that, in all material respects the systems and processes implemented by the Company are not suitable for observing the AccountAbility Principles of inclusivity, materiality and responsiveness. Furthermore, nothing has come to our attention that causes us to believe that

  • qualitative sustainability information set out in the Sustainability Report has not been prepared in compliance with the criteria set out in den Sustainability Reporting Guidelines Vol. 3.1 (pages 7 to 17) der Global Reporting Initiative (GRI); or
  • the selected quantitative sustainability information marked with a symbol and set out in the Sustainability Report has not been prepared in compliance with the criteria set out in den Sustainability Reporting Guidelines Vol. 3.1 (pages 7 to 17) of the Global Reporting Initiative (GRI).

Emphasis of Matter – Recommendations

Without qualifying our conclusions stated above, we make the following recommendations concerning the further development of the Company’s sustainability management and sustainability reporting:

  • Further development of the stakeholder management by introducing a Group-wide framework, which defines the main requirements to deal with various aspects of stakeholder management;
  • Increase of efforts to standardize Group-wide definitions of key figures ;
  • Increased formalization of processes and controls of the data collection, especially in the field of occupational safety;
  • Precise differentiation between Volkswagen Group and brand in the reporting;
  • Increase coverage ratio of the key figures for illustrating the Groupperspective;
  • Increased formalization of the reporting process;
  • Advanced description of sustainability goal conflicts and dilemmas.

Hanover, April 22, 2014

PricewaterhouseCoopers
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft

Harald Kayser
Michael Werner
Wirtschaftsprüfer