Volkswagen Readmitted to UN Global Compact After Emissions Scandal Ousting
February 25 2021 - 8:33AM
Dow Jones News
By Maitane Sardon
German auto giant Volkswagen AG said Thursday that it has been
reinstated as a participant in the United Nations Global Compact,
joining more than 10,000 companies pledged to a set of guidelines
on anti corruption, human rights, labor rights and the
environment.
Volkswagen's readmission, which comes after the auto maker was
ousted from the imitative in 2015 due to its emissions scandal,
means the company may be added to ESG funds and benchmarks. Funds
that are built following ESG criteria often exclude companies that
aren't signatories to the UN Global Compact.
Volkswagen was a pariah of sustainability investors since it
admitted in 2015 that it had rigged 11 million diesel vehicles with
software that allowed them to evade government emissions tests.
Since then, the world's largest auto maker has focused on
developing cleaner vehicles and has ramped up disclosure of
climate-related financial data. It has also promised to become
climate neutral by 2050 by removing from the atmosphere the same
amount of carbon dioxide it emits.
Volkswagen said Chief Executive Herbert Diess requested in
November to rejoin the group, of which it had been a member since
2002 until it was ousted.
Some of the reasons for its reinstatement include its commitment
to a climate-protection program and the creation of an independent
sustainability council, the car maker said.
"The electrification strategy of the group has put it at the
forefront of transformation in the car industry," said Georg Kell,
founding director of the UN Global Compact and chairman of
sustainable intelligence company Arabesque.
Mr. Kell, who is also a member of Volkswagen's sustainability
council added: "Rejoining... shows that Volkswagen, while far from
infallible, has learned from its mistakes."
The company, which has also promised to cut the CO2 emissions
over the life cycle of its passenger-car portfolio by 30%, said it
is currently working on a re-engagement plan with the Global
Compact. It added that it will report on its progress on adopting
the group's guidelines.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
February 25, 2021 08:18 ET (13:18 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Volkswagen (TG:VOW)
Historical Stock Chart
From Aug 2024 to Sep 2024
Volkswagen (TG:VOW)
Historical Stock Chart
From Sep 2023 to Sep 2024