Volkswagen Group Joins Leather Working Group for More Responsible Raw Material Procurement

Volkswagen Group Joins Leather Working Group for More Responsible Raw Material Procurement

(IN BRIEF) The Volkswagen Group’s brands have joined the Leather Working Group (LWG) to play a leading role in responsible raw material procurement, promoting sustainability throughout the entire value chain. The LWG is a non-profit organization that certifies leather manufacturers and ensures transparency and environmental and social standards for leather supply chains worldwide. With over 2,000 member companies representing more than a quarter of global finished leather production, the Volkswagen Group’s membership in the LWG is part of its ambitious sustainability strategy, which includes strict criteria for animal welfare, responsible leather production, and adherence to sustainable water usage and avoidance of water pollution. Since early 2022, suppliers have been required to comply with material-specific tender specifications for leather, including disclosure of the raw material’s country of origin and a leather-specific sustainability certificate.

(PRESS RELEASE) WOLFSBURG, 14-Apr-2023 — /EuropaWire/ — Volkswagen Group (ETR: VOW3), one of the world’s leading manufacturers of automobiles and commercial vehicles, announces that the Volkswagen Group’s brands have joined the Leather Working Group (LWG) to play a leading role in responsible raw material procurement and promote greater sustainability throughout the entire value chain. The LWG is a non-profit organization headquartered in Milton Keynes, UK, that ensures transparency and uniform environmental and social standards for leather supply chains worldwide, and certifies leather manufacturers. With over 2,000 member companies representing more than a quarter of global finished leather production, LWG members include players from tanneries to leather processing industries, associations, traders, and buyers.

“The Volkswagen Group is assuming responsibility for sustainable and transparent supply chains. Becoming a member of the LWG is an important step. The organization’s expertise will help us become even more sustainable in our use of leather,” said Dirk Große-Loheide, Member of the Brand Board of Management of Volkswagen responsible for Procurement and member of the Extended Executive Committee.

“Leather is a mark of quality for our customers. Together with our suppliers, we are committed to internationally accepted standards. The facilities in which our leather is manufactured is also important. They should receive certification from LWG,” says Barbara Frenkel, Executive Board Member for Procurement at Porsche AG. In the Volkswagen Group, Porsche AG is responsible for evaluating sustainability risks in leather sourcing and implementing mitigation measures.

“Traceability in the supply chains is one of the most important ways in which companies can ensure that they are sourcing leather responsibly. This is at the core of our efforts,” said Christina Trautmann, Head of the Leather Working Group. “We are looking forward to the Volkswagen Group’s active involvement. With its support we intend to drive forward the development of tools and methods that will have a positive impact on the leather industry.”

The Volkswagen Group’s ambitious sustainability strategy is underpinned by joining the Leather Working Group. In its first Responsible Raw Materials Report, published in 2021, the Group detailed its methodology and activities as part of a newly established management system for raw material procurement, covering 16 high-risk raw materials, including battery materials such as lithium and cobalt, and leather.

Since early 2022, material-specific tender specifications for leather have been introduced, and suppliers have been required to comply with them for all new contracts awarded since April 2022. The specifications call for disclosure of the country of origin of the raw material and a leather-specific sustainability certificate, issued, for example, by the LWG. The Volkswagen Group requires its suppliers to respect animal welfare and be responsible in their leather production and processing, adhering to strict criteria on water usage and avoiding water pollution in the tanning process. Volkswagen brands do not use any leather that contributes to illegal deforestation.

The Volkswagen Group’s membership in the Leather Working Group is another milestone in its pursuit of greater sustainability throughout its value chain, including responsible raw material procurement.

Media contacts:

Esra Aydin
Corporate Communications | Spokesperson Sustainability & Corporate Engagement
Tel. +49 (0) 152 58870025

Tobias Schwerdtfeger
Spokesperson Procurement
Tel. +49-5361-9-994521
SOURCE: Volkswagen AG