Biodiversity and ecosystems

MATERIAL IMPACTS AND RISKS AND THEIR INTERACTION WITH STRATEGY AND BUSINESS MODEL

Impacts on biodiversity and ecosystems

When carrying out the materiality assessment, the Volkswagen Group identified four material actual negative impacts along its value chain. These relate to biodiversity, the conservation status of species and ecosystems, and the availability of ecosystem services.

Several aspects have an impact on biodiversity, for example raw material extraction for our materials, energy generation, deforestation and repurposing of land use for biofuel production, and agriculture (e.g. rubber plantations). They also have an impact on the conservation status of species. Issues of importance in this context include the spread of invasive species as a result of global logistics flows, the decrease in insect populations caused by pesticide use in agriculture, for example for the manufacture of rubber tires or biofuels. In the downstream value chain, land sealing and fragmentation due to road-building may have adverse effects on the conservation status of ecosystems. Activities along the value chain may have a negative impact on ecosystem services, for example through emissions to the air or to water.

Interaction with strategy and business model

The impacts identified in the materiality assessment have an influence on the Volkswagen Group’s business model, strategy and value chain. The topics of biodiversity and ecosystems is anchored in the Group regenerate+ sustainability strategy, core elements being preservation of biodiversity and its sustainable use. The Volkswagen Group has committed to protecting, preserving and promoting biodiversity in the environmental mission statement and also in our Biodiversity Commitment. The Code of Conduct for Business Partners places particular emphasis on the topics of biodiversity and ecosystems along the value chain, especially for the protection of threatened habitats and species, as well as on sustainable use of natural resources. The Code of Conduct for Business Partners requires the Volkswagen Group’s business partners to comply with actions under legislation applicable to them and with international biodiversity requirements, amongst other aspects.

Implementation of the biodiversity-related actions aims to offset the impacts of the Volkswagen Group’s business activities.

In particular, biodiversity actions are being implemented at the production sites to offset land use in line with the Zero Impact Factory strategic vision, such as the creation of flower meadows or green walls. The positive contribution of these projects in and around the Volkswagen Group plants is assessed using a metric.

In addition, we aim to mitigate negative impacts away from the Volkswagen Group’s operating sites by collaborating on voluntary global biodiversity projects.

TRANSITION PLAN AND CONSIDERATION OF BIODIVERSITY AND ECOSYSTEMS IN STRATEGY AND BUSINESS

In the 2024 reporting year, a resilience analysis was conducted to examine the Volkswagen Group’s ability to adapt to the significant negative impacts on biodiversity and ecosystems (ESRS E4) identified in the materiality assessment. The analysis did not identify any significant physical risks, transition risks and systemic risks or opportunities in relation to biodiversity and ecosystems, but it did identify material impacts. The resilience analysis included a qualitative assessment of the extent to which the strategy and business model are able to address the material impacts. Criteria such as the scope and quality of existing policies, actions and targets, the consideration of impacts in Group sustainability strategy, and the challenges of implementing adaptation measures and strategies were used to assess resilience in the short-, medium- and long-term. One of the key assumptions is that the requisite access to capital can be provided as planned, irrespective of the economic situation. It is also assumed that the Volkswagen Group’s biodiversity performance continues to satisfy the expectations of investors and lenders. It is also assumed that suppliers are willing to provide relevant data pertaining to biodiversity and ecosystems. These assumptions are continuously validated in the relevant planning and steering committees. There is uncertainty regarding the fundamental challenges of unpredictable developments in the global vehicle sales market, as well as the evolution of regulatory requirements related to biodiversity and ecosystems.

The time horizons considered in the resilience analysis correspond to the time horizons defined in the “General information” chapter in the “Notes on use of the ESRS” section and also used in the materiality assessment. These are divided into short-term (up to one year), medium-term (between one and five years) and long-term (more than five years) targets. The analysis covers the impacts identified as material and their main drivers along the Group sustainability strategy and value chain. In particular, this includes the integration of biodiversity and ecosystems into regenerate+, as well as the level of coverage of strategic and operational adjustment actions along the upstream value chain and the company’s own operations. The downstream value chain was also taken into account in the analysis of the level of coverage of the policies and actions.

To take relevant stakeholders into account in the resilience analysis in accordance with ESRS E4 paragraph 13 (f), internal experts who maintain regular contact and cooperation with relevant stakeholders were involved in the process. External stakeholders and people with indigenous and local knowledge of affected regions were not included in the process. Regenerate+ serves as the central strategic framework for mitigating significant negative impacts on biodiversity and ecosystems. Nature is defined as a core dimension within regenerate+. Topics such as genetic diversity and biodiversity are explicitly addressed in the ecosystems pillar, giving the core elements of ESRS E4 relevant significance in the Group sustainability strategy. Biodiversity and ecosystems are also addressed in the corporate strategy by fundamentally anchoring sustainability in it. In addition, there is an opportunity to address specific topics related to biological diversity and ecosystems at Board of Management level by embedding regenerate+ in the strategy process. The strategic direction and pilot projects in the Group are discussed and brought to other relevant bodies in monthly Group-wide dialog formats on biodiversity and ecosystems at a technical level whose members are experts and representatives for biodiversity from the various brands and plants. The aim is to use metrics for long-term management. The Group brands also define different focus areas for biodiversity. For example, specific projects on commodity hotspots are being developed by individual brands in the supply chain with the aim of implementing pilot projects with suppliers and other partners in 2025.

The impact on biodiversity and ecosystems, particularly in the medium- and long-term, is addressed through the interplay of operational policies such as the Group’s environmental mission statement goTOzero or the Volkswagen Group’s Biodiversity Commitment and location-based biodiversity actions. In the short term, actions such as creating insect hotels, installing nesting boxes for birds and bats, and planting flowering meadows are intended to mitigate the negative impacts. No specific targets for biodiversity and ecosystems were defined for 2024 at Group level, but are currently being developed. In addition, existing targets from strategic focus topics contribute to biodiversity and ecosystems, such as decarbonization and water management. Group-wide operationalization of these strategic focus topics, including targets across all brands and locations, is still pending.

To mitigate negative impacts on biodiversity and ecosystems, the Volkswagen Group uses the Code of Conduct for Business Partners, which places suppliers under a general contractual obligation to comply with the relevant sustainability requirements. Suppliers are also called on to pass sustainability requirements on to relevant business partners so as to enable requirements to be continuously applied along the upstream and downstream value chain. Although the majority of suppliers do not pose an increased risk in terms of biodiversity and ecosystems, the upstream and downstream value chain, particularly for mining or agricultural products, is examined in advance. No significant investments are planned for the adaptation of the supplier structure in terms of biodiversity.

The overall picture reveals that the Volkswagen Group is capable of addressing the significant negative impacts on biodiversity and ecosystems, particularly from its own operations, in the medium- and long-term through existing adjustment strategies, policies and site-specific actions. There are several comprehensive policies and site-specific actions. The strategic anchoring of biodiversity and ecosystems is largely complete. Formalization of the biodiversity targets and expansion of the actions to all brands and sites were identified as the next steps to be implemented in the short to medium term. This is crucial when it comes to comprehensively addressing the impacts on biodiversity and ecosystems and to driving forward operationalization.

IMPACTS AND DEPENDENCIES IN OR NEAR BIODIVERSITY-SENSITIVE AREAS

The standard process described in the “General information” chapter was used to identify the material topics. Furthermore, the department analyzed the impacts of the company’s activities in or near biodiversity-sensitive areas, giving consideration to potential impacts and dependencies. Transition risks, physical risks and opportunities, and systemic risks were not taken into account. A scenario analysis was not applied. Consultations with affected communities were not held as part of the analyses.

Potential impacts and dependencies were identified using the online tool Exploring Natural Capital, Opportunities, Risks and Exposure (ENCORE). This performs a sector analysis in order to assess potential risks, impacts and dependencies in the context of the relevant sector. It focuses solely on the potential impacts that may arise from the Volkswagen Group’s own production, excluding the associated impacts from the supply chain (for example, metal production). The evaluation looked at the sector’s potential impact on a range of impact categories. Relevant impact categories are land use change (for example, land in use), resource use (for example, water use), climate change (GHG emissions), pollution (for example, harmful emissions to soil, air and water, waste generation) and disruptions (for example, noise or light). Linking these categories shows the potential overall impact of the activity (for example, vehicle manufacturing) on soil, water, biodiversity and the atmosphere. Activities considered are the manufacture of motor vehicles, the manufacture of parts and accessories for motor vehicles, energy generation from fossil fuels, and the manufacture of special-purpose machinery. The existing dependencies of the company’s own activities on biodiversity and ecosystems were also examined. The ecosystem services taken into account in this context are the provision of services (for example, water supply) and regulation and maintenance services (for example, flood control, water purification). The very high, high and medium impacts and dependencies of the individual activities at the different sites are detailed in the table “Annex: Sites near or in biodiversity-sensitive areas”. Minor and very minor impacts of activities at the sites include land use, the volume of water consumption, GHG emissions and emissions of other air pollutants, as well as the generation and release of solid waste. Low and very low dependencies of activities at the sites relate to global and local climate regulation, mitigation of sensory impacts, control pattern regulation, air filtration, solid waste decomposition, dilution effect through atmosphere and ecosystems, and water supply, among others. In addition, the environmental status of the areas is addressed through the Biodiversity Intactness Index (BII) and GLOBIO Mean Species Abundance (MSA) Index in the table “Annex: Sites near or in biodiversity-sensitive areas”. The BII is a metric used to assess the extent to which ecosystems are intact and functioning in relation to their natural state. It measures the abundance and diversity of species in a given area, compared to what would be expected in an undisturbed ecosystem. GLOBIO uses the MSA index to calculate the integrity of local terrestrial biodiversity, based on the assessment of human impacts.

Owing to the construction of production sites, vehicle manufacturing has a negative impact on biodiversity and ecosystems through land use change and sealing. Efforts are underway to avoid land use change (land use for production), or to reduce it as far as possible. It is intended that unused areas will be restored and used areas offset. An average of approximately 50% of the plant area is currently sealed. In 2024, the new Biodiversity Land Use Indicator (BLI) was rolled out at all passenger car and light commercial vehicle production sites and associated component manufacturing sites worldwide. The aim was to measure the impact of land consumption by the company’s own production sites and their contribution to land enhancement through biodiversity actions. This metric is intended to enable an assessment of land use and setting of associated targets.

A comprehensive assessment was conducted to determine whether Volkswagen Group sites are located near biodiversity-sensitive areas. The assessment covered the Volkswagen Group properties classified as environmentally relevant. These include the production sites where activities related to the manufacturing of vehicles, components, assemblies or special-purpose machinery take place. Four more environmentally relevant sites such as environmentally relevant external production facilities and a technical development center were also included in the analysis.

The sites classified as significant due to their proximity to protected areas and the significant activities conducted there are listed in the table “Annex: Sites near or in biodiversity-sensitive areas”. A radius of 4.5 km was applied in the assessment to determine whether the Group sites are located near biodiversity-sensitive areas. The results show that 58 of the 117 sites analyzed are located near biodiversity-sensitive areas. A total of 126 protected areas are located in the vicinity of the Volkswagen Group’s sites. Four sites are located directly adjacent to a protected area.

An analysis of the protected areas was carried out, covering protected habitat types, endangered and critically endangered species, and species at risk of extinction. The number of species with protected status and habitats currently identified in these areas was also compared against the most recent status from the analysis conducted. No direct negative impacts caused by the production sites and other sites were identified for the protected areas for which the necessary information for the analysis was available. The impacts from our own production on changes to freshwater resources and the associated actions are described in detail in the “Water” chapter. The material impacts of production on soil degradation and desertification have not yet been assessed in detail.

POLICY: BIODIVERSITY AND ECOSYSTEMS

Biodiversity policy

The manufacture and operation of vehicles impact biodiversity through emissions, land use and transportation – from raw material extraction to the use phase through to recycling. The Volkswagen Group supports conservation projects worldwide, examples being the “Green Belt” reforestation project in China and projects to restore moorland in Germany and Poland. The Volkswagen Group has also been involved in protecting and preserving biodiversity since 2007. As described in the “Material impacts and their interaction with strategy and business model” section, the materiality assessment identified negative impacts, particularly along the upstream value chain. The negative impacts are addressed within the scope of the Biodiversity policy. The Group’s Chief Sustainability Officer is responsible for coordinating the topic of biodiversity within the scope of the Group’s regenerate+ strategy. The Group Head of Environment is responsible for activities relating to biodiversity in production. As environmental management officer, he performs the tasks of the Volkswagen AG biodiversity officer.

The Volkswagen Group’s regenerate+ makes specific reference to biodiversity and ecosystems. The Volkswagen Group is aware of the importance of biodiversity and its dependency on ecosystem services and has therefore incorporated their protection as an action area in its environmental mission statement goTOzero. The Volkswagen Group has committed to protecting, preserving and promoting biodiversity through this mission statement and the Biodiversity Commitment: The Volkswagen Group reduces harmful emissions to air, soil and water, mitigates the impact of its business operations on biodiversity and ecosystem services and support projects to conserve these.

As a founding member of the Biodiversity in Good Company e.V. initiative, the Volkswagen Group also acknowledges the three goals of the international Convention on Biological Diversity (CBD). These are the conservation of biological diversity, the sustainable use of the components of biological diversity, and the equitable sharing of the benefits arising from the utilization of genetic resources. In the Volkswagen Group’s Biodiversity Commitment, corresponding action areas have been defined to make a contribution to achieving these goals within the framework of the Group’s business activities. A biennial progress report is published as part of the Biodiversity in Good Company Initiative. Furthermore, the Volkswagen Group supports the CBD’s Action Agenda for Nature and People initiative by publishing its commitment on the German Business for Biodiversity platform set up by the German Federal Ministry for the Environment (BMUV), and on the CBD website.

Another component of the Volkswagen Group’s efforts is raising employees’ awareness by informing and training them on the topic of biodiversity and involving them in the projects.

The topics of biodiversity and ecosystems are anchored in the Code of Conduct for Business Partners with the aim of protecting natural ecosystems and achieving sustainable use of natural resources. Business partners must strive for supply chains that do not involve logging or deforestation based on the legislation applicable to them, and taking into account international biodiversity requirements. These international requirements include the resolutions and recommendations regarding biodiversity of the CBD and the International Union for Conservation of Nature (IUCN).

Another important point is that the Volkswagen Group was the first automotive manufacturer to join the LEAF Coalition (Lowering Emissions by Accelerating Forest finance) in the reporting year. Together with governments and companies around the world, the initiative supports the protection of tropical rainforests, making an important contribution to achieving the Paris climate goals, protecting biodiversity and realizing sustainable development.

The Volkswagen Group is also a member of the DRIVE Sustainability Partnership, which is involved in the development of a Raw Material Outlook Platform. This included the material change risk analysis on raw materials and their extraction and processing. One of the 16 criteria applied concerned overlaps with areas important to preserving biological diversity. The direct impacts of the production on biodiversity and ecosystems also play a key role. Details on biodiversity management at production sites are provided in the strategic vision for the Zero Impact Factory. It includes voluntary biodiversity offsets and ongoing assessment of the impacts of the production sites on biodiversity. Since 2024, the BLI has been rolled out as a new Group-wide performance indicator aimed at improving biodiversity by creating semi-natural areas at and around the sites.

The Volkswagen Group engages in dialog with expert partners and promotes networking between the realms of politics, the economy, science, regulation and associations in order to improve its own and society’s knowledge about biodiversity and biodiversity management. The Volkswagen Group relies on knowledgeable partners such as non-governmental organizations (NGOs) and other local players to realize biodiversity projects.

Impacts of biodiversity loss and the state of species and dependencies on ecosystem services

The vision of the Volkswagen Group is to have a positive impact on people and nature and to make a sustainable contribution. The focus on ecosystems and preserving biodiversity is a central pillar of the Group sustainability strategy. The production and operation of vehicles impact biodiversity through emissions, land use, and transportation. This impact will be countered by reducing land use and thereby achieving added value for nature and an improvement in biodiversity. The Volkswagen Group has set itself the goal of increasing biodiversity at its production sites and within the supply chain. In accordance with the Biodiversity Commitment, the Volkswagen Group pursues these goals as follows: Risks and opportunities are assessed with respect to the Group’s business activities that have an impact on biodiversity and ecosystem services. Biodiversity is also integrated into the Volkswagen Group’s ECMS. Projects are also being implemented to protect and preserve biodiversity.

Sustainable raw material sourcing in the value chain

The Volkswagen Group is aware that its suppliers’ business activities can have a significant impact on people and the environment. The extraction and processing of some raw materials for the automotive industry is associated with environmental risks such as deforestation and air and water pollution. The Volkswagen Group published its first Responsible Raw Materials Report in 2021. It provides detailed information on the methodologies and activities in the context of the raw materials due diligence management system for raw material sourcing. The current report covers the period from January to December 2023 and gives an insight into the scope, the methodology and the implementation of activities and results concerning due diligence for raw materials classed as a priority by the Volkswagen Group. This also involves memberships in various initiatives.

Social consequences of biodiversity impacts and sustainable land use practices

The Code of Conduct for Business Partners emphasizes the issue of damage to soil, water and air. Business partners must ensure that they do not cause any harmful soil changes, water pollution, harmful air pollution, noise emissions or excessive water consumption that could lead to significant harm to the natural basis for food and drinking water or human health. They must also observe the prohibition of unlawful eviction and unlawful taking of land, forests and waters in the acquisition, development or other use of these resources.

Biodiversity-sensitive areas

The Volkswagen Group carried out an evaluation of protected areas close to Group sites in order to determine the impacts on biodiversity of the production sites and rule out potential risks.

Assessments of compatibility with biodiversity are performed when seeking new locations for production sites. When extending existing production facilities or building new ones, protection of natural capital requires priority to be given to land already used for industrial purposes, in order to minimize land use and soil sealing as far as possible (for further information, see “Transition plan and consideration of biodiversity and ecosystems in strategy and business model” and the “Biodiversity-sensitive sites” table in the Annex).

Deforestation

Business partners must strive for supply chains that do not involve logging or deforestation based on the applicable legislation and on international biodiversity requirements. These international requirements include the resolutions and recommendations regarding biodiversity of the CBD and the IUCN. In addition, the Volkswagen Group is currently making preparations for the implementation of the EU Deforestation Regulation.

TARGETS: BIODIVERSITY AND ECOSYSTEMS

As described earlier under section “Policy: Biodiversity and ecosystems”, the topics of biodiversity and ecosystems are already anchored in regenerate+, the Biodiversity Commitment and the environmental mission statement goTOzero. In order to record developments and progress, the Volkswagen Group is a founding member of the Biodiversity in Good Company e.V. initiative.

The topic of biodiversity is part of the strategic vision of the Zero Impact Factory. The Volkswagen Group has created a site checklist featuring quantifiable targets on the topic of biodiversity and ecosystems. In relation to biodiversity management, the site checklist contains criteria such as the consideration of local protected areas or the provision of funding schemes for biodiversity and environmental education. The checklist also acknowledges specific actions such as planting regional plant species at sites, semi-natural design of green spaces, and promoting biodiversity through creation of habitats at or close to sites.

Furthermore, a new metric for measuring biodiversity was introduced in 2024 – the BLI, for which a specific target will also be set in the future. This metric aims to increase the proportion and quality of semi-natural areas at the sites.

ACTIONS AND RESOURCES: BIODIVERSITY AND ECOSYSTEMS

Actions at the production sites

The sites identify, plan, perform, uphold and evaluate the biodiversity actions for their particular site themselves. The decentralized implementation of a range of nature-based actions enables the local knowledge available at the site to be harnessed. Local service providers are normally involved in implementing the actions. In suitable places, the Group’s own employees are involved in designing the actions.

Examples are provided below of the actions carried out regularly at different sites, including during the reporting year, that are contributing to promoting and preserving biodiversity at the sites:

• Flower meadows created, for example in Poznań/Poland and implementation of mowing regimes adapted to flowering times, for example in Pamplona/Spain
• Bug hotels installed, for example in Crewe/United Kingdom
• Nesting boxes for birds and bats installed, for example in Barcelona/Spain and Września/Poland
• Bee colonies established, for example in Puebla/Mexico
• Trees planted, for example in San José Chiapa/Mexico
• Native wild shrubs hedges established, for example in Győr/Hungary
• Deadwood piles created, for example in Wolfsburg/Germany

There are also numerous specific projects at the sites aimed at promoting biodiversity. For example, seeds from various indigenous tree species, such as the neem tree (Azadirachta indica) and the pongam tree (Pongamia pinnata), are collected in Pune/India to grow for internal use. At the Chattanooga site/USA, a grazing project is taking place across an area of 30 hectares. The project involves allowing sheep to graze the grassland, avoiding the need for motorized mowing. Grazing is intended to reduce invasive species, while at the same time action are being taken to promote the growth of native shrubs, grasses and wildflowers.

It is also important to the Volkswagen Group that employees get involved in the biodiversity projects and to raise their awareness of the issue in the process. This is demonstrated by the example of the Volkswagen Group site in Palmela/Portugal, where 2,000 native trees and shrubs were planted by employees and their families in volunteer projects. In addition, a waste collection campaign undertaken by 120 volunteers, in conjunction with the national NGO Brigada do Mar, collected eleven tons of waste in the area around the plant and handed it in for proper disposal.

Of the more than 200 Corporate Citizenship projects implemented in fiscal year 2024, over 29 serve directly to promote and protect biodiversity. These projects include tree planting, preserving and developing ecosystems, refuse collection campaigns on beaches and in forests, environmental education, and support for research and science.

The 2024 Zero Impact Factory Award for biodiversity issues deserves particular mention. All Volkswagen Group plants were invited to submit their top biodiversity actions, from which the three most outstanding were selected as winners in early 2025.

To support the sites’ biodiversity work, a Sustainability Impact Fund for internal sustainability projects will be available from 2025 onwards. A decision committee made up of experts will select the projects to be supported in the future.

Contribution to global voluntary biodiversity projects

The Volkswagen Group also aims to promote biodiversity by launching a biodiversity fund with up to €25 million per year from 2025 for external projects. The fund has a general term of five years, so projects undertaken between 2025 and 2029 are eligible for financial support. Here, too, a decision committee composed of experts will select the projects to be supported. The Volkswagen Group is already supporting biodiversity projects worldwide:

Volkswagen de México has been supporting conservation and reforestation projects since 2008, in order to preserve ecosystems. The projects create habitats for wild fauna and promote the development of biodiversity. The reforestation actions help to prevent soil erosion and promote groundwater storage. Construction of infiltration ditches also helps rainwater infiltration. This serves to protect the soil and promote groundwater recharge, for example, on the volcanic slopes of Popocatépetl and Iztaccíhuatl, where years of logging, livestock farming and fires have created open land.

The Group works with partners such as UNESCO and the Seabird Life organization to support sustainable mobility projects and to remediate storm damage in UNESCO biosphere reserves in Spain, as well as other projects to conserve and restore moorland in reserves in Poland and Germany.

Volkswagen Group China, along with the Volkswagen, Audi and Škoda brands, has initiated the Green Belt reforestation project to protect habitats and promote sustainable development. More than 8.5 million trees are to be planted by 2030 on a total area of over 40 million m² in ten environmentally sensitive regions in the north of China. Reforestation serves the purpose of carbon sinks, supports biodiversity and helps to prevent wind erosion and soil losses.

ŠKODA has launched the “Gardens of the Giant Mountains” project via the ŠKODA Auto Endowment Fund. The fund is an addition to the company’s long-term “Škoda Trees” initiative and supports projects aimed at water retention, supporting local biodiversity and promoting nature conservation. In 2024, various actions were taken with the aim of reintroducing the Apollo butterfly (Parnassius apollo), which is on the Red List of Threatened Species and is at risk of extinction in the Czech Republic.

METRICS: BIODIVERSITY AND ECOSYSTEMS

Biodiversity Land Use Indicator

As a vehicle and component manufacturer, the Volkswagen Group has an impact on land use. Plant construction usually involves building on and permanently sealing large areas of land. To determine the contribution of production to land use and reduce it in the future, a new metric for production sites for passenger cars and light commercial vehicles was established at Group level in 2024 – the BLI. It builds on the EMAS biodiversity guide and the No Net Loss/Net Gain (NNL/NG) approach of the IUCN.

The BLI provides information on the proportion of semi-natural areas at the site, taking into account their quality. These semi-natural areas may be located on the site premises or within a 30 km radius, providing they are owned or managed by the site and serve primarily to promote biodiversity. Areas managed in conjunction with partners may also be considered where the scope of the joint management is clearly regulated. The ecological quality of each area is classified as low, medium or high. The areas are weighted according to this quality factor. A calculation tool (BLI tool) and accompanying guidelines are available for determining the site result. The initial Group-wide survey of the BLI in 2024 showed a result of approximately 28.6%, taking into account the quality of the area. A future target of this metric is planned.

Sites near or in biodiversity-sensitive areas

The sites near or in biodiversity-sensitive areas metric provides information on the number and area of sites that are in or near protected areas or in important areas for biodiversity. For 2024, the Volkswagen Group is using the radius from the EU Taxonomy reporting, which is defined as 4.5 kilometers. The corresponding protected areas have been analyzed by a third party.