Porsche

Governance roles

Reference: pages 159-163.

Porsche AG has an Executive Board (eight members as of December 31, 2025, responsible for managing the company) and a Supervisory Board of 20 members, half of them employee representatives elected under the German Co-Determination Act. The Supervisory Board appoints, monitors and advises the Executive Board and is consulted directly on fundamental business decisions (p.158-159).

Sustainability oversight: cross-functional and overall responsibility for sustainability lies with the Chairman of the Executive Board, supported by the Executive Board members responsible for Production and Logistics and for Procurement, who act as "sustainability strategy overseers" and are "also responsible for monitoring impacts, risks and opportunities" (p.160). They are supported by the internal Sustainability Strategic Group and Environment and Sustainability Steering Committee, and by the external Porsche Sustainability Council (formed 2016, met once in 2025 with selected Executive Board members, p.161).

The member of the Executive Board responsible for Human Resources and Social Affairs holds the position of Labor Director and oversees codetermination (p.243-244). The current share of women on the Executive Board is 12.5%; eight of the Supervisory Board's members (40%) are women (p.157-158).

Information provided to and matters addressed

Reference: pages 159-163.

"Those overseeing the sustainability strategy report to the entire Executive Board on their topics on an ad hoc basis. The material impacts of the individual topics are managed operationally in the respective Executive Board portfolios" (p.161). Target achievement is "generally reported to and reviewed by the overseers of the sustainability strategy on a quarterly basis" (p.161). Reporting on sustainability as a whole goes to the full Executive Board once a year (p.162).

In the reporting year the Executive Board and Supervisory Board dealt with, among other topics: product strategy and fleet-emission reduction, the decarbonization program, resource efficiency, occupational health and safety, the BHR Council's report on LkSG implementation, supply chain security, equal opportunities and diversity, corporate citizenship, customer satisfaction, integrity and the Porsche Code, the whistleblower system, and (geo-)political developments (p.162).

Sustainability in remuneration

Reference: pages 163-165.

Since 2023 an ESG factor has been part of the Executive Board's variable remuneration (annual bonus), calculated "from the weighted ESG sub-targets environment (decarbonization index) (40%) and social (each equally weighted: gender quota, customer excitement index and employee satisfaction) (60%) and the governance factor of 1.0." The ESG factor for 2025 was 1.09 (p.164).

2025 actual vs. target: decarbonization index 60.2 (target 62.2, threshold 63.2, max 61.2) giving a multiplier of 1.30; gender quota (first reporting level) 29.1% (target 20.0%) giving 1.30; customer excitement index 18.7% (target 18.0%) giving 1.14; employee satisfaction 45.5 (target 46.0) giving 0.93 (p.164). The annual bonus is capped at 180% of target. Since 2024 the gender-quota and ESG targets have also applied to management of Porsche AG and selected group companies, and since 2024 to employees covered by collective bargaining agreements (p.163-165).

Statement on due diligence

Reference: page 311 (Annex, core elements of due diligence table).

The Annex maps the five core elements of due diligence to pages of the statement:

The Business and Human Rights Policy is the "overarching framework for the implementation of and compliance with human rights and environmental due diligence obligations pursuant to the LkSG" (p.294), overseen by the cross-disciplinary Business and Human Rights (BHR) Council, which reports to the Executive Board at least annually and on an ad hoc basis (p.271-272).

Internal control and risk management for the non-financial statement

Reference: page 165.

"A CSRD ICS was established and gradually developed further in the reporting year to meet sustainability reporting requirements," aiming "to mitigate material risks throughout the reporting process ... and to reduce the risk of a material misstatement within the non-financial statement" (p.165).

Key risks identified: "incorrect calculations due to incomplete data, the incorrect transfer of values to the report, unclear responsibilities or missing authorizations." A risk-oriented concept on a data-point basis assesses how susceptible each sustainability data point is to error and the potential reputational damage, differentiating control depth accordingly. The CSRD ICS covers data from all consolidated group companies, secured by "both decentralized and centralized controls" (p.165). Results of the continuous monitoring and remediation process are reported to the Executive Board and Supervisory Board.

Strategy, business model and value chain

Reference: pages 141-146.

Porsche AG is "a leading manufacturer of exclusive sports cars" and the parent of the Porsche AG Group, itself part of the Volkswagen Group (p.141). 41,780 employees group-wide (2024: 42,615, -2%). The share of electrified vehicles delivered was 34.4% (BEV 22.2%, PHEV 12.1%; 2024: 27% combined) (p.141, 175).

Value chain (p.141-142): upstream covers raw-material extraction (steel, aluminum, magnesium, leather) and more than 2,300 direct suppliers of production materials plus 4,700+ of non-production materials; own operations cover development, production (Stuttgart-Zuffenhausen, Leipzig) and sales; downstream covers the dealer network, vehicle use/service and end-of-life/recycling.

The sustainability strategy sits within Strategy 2030 Plus (evolving into Strategy 2035 from FY2026) under six fields: Decarbonization, Circular economy, Diversity, Partner to society, Supply chain responsibility, Governance and transparency (p.143-145). Porsche AG is also "a vertically integrated energy supply company" under the German Energy Industry Act (p.141).

Interests and views of stakeholders

Reference: pages 156-159.

Key stakeholder groups: employees, customers and business partners, society, and investors (p.156-157), engaged via a "holistic stakeholder management system based on the balanced scorecard approach" (p.156) covering standardization, consultation, cooperation, participation, and planning/controlling.

Examples: employees via works councils, the Economic Committee and the annual "Porsche Puls" survey; customers via surveys on purchasing, product quality, displays/controls, Porsche Connect and charging; workers in the value chain via the automotive industry dialog on the German NAP for Business and Human Rights; affected communities via the "Society" stakeholder group and corporate-citizenship dialog formats (p.156-159, 17967). The Porsche Sustainability Council, external specialists who advise the Executive Board, institutionalizes the sustainability stakeholder dialog (p.161).

Material impacts, risks and opportunities

Reference: pages 153-156; per-topic IRO tables precede each topical chapter.

"All ten of the topics considered in the double materiality assessment were identified as material" (p.151-152): E1-E5, S1-S4 and G1. Corporate citizenship is treated as an entity-specific topic.

Changes versus 2024 (p.150-151): newly material sub-topics were climate change adaptation (E1), pollution of soil (E2), and affected communities' economic, social and cultural rights (S3); no longer material were impacts on the state of species (E4) and impacts on the extent and status of ecosystems (E4). The S3 negative impact "can occur long-term in the upstream value chain, e.g., in the extraction of raw materials," and the company applies the ESRS 1 Appendix C phase-in provisions together with the EU quick-fix Delegated Regulation (EU) 2025/1416 and omits the disclosures on affected communities (ESRS S3) for the reporting year (p.150). Resilience is assessed annually; see the topical chapters.

Process to identify and assess material IROs

Reference: pages 147-153.

Steps (p.147-149): definition of scope and stakeholder inclusion; identification of potential sustainability topics and impacts/risks/opportunities (screened against ESRS 1 AR16 sub-topics); assessment of impacts, risks and opportunities against defined thresholds; consolidation of results and determination of thresholds; validation and harmonization of results; and derivation of reporting topics.

Climate-related IROs draw on a 2024 detailed climate scenario analysis, "rolled ... forward in the reporting year" (p.151), using IPCC SSP5-8.5 for physical risk and the IEA Net Zero Emissions by 2050 Scenario (2023 update) for transition risk, to 2050 (p.151-152). A group-wide resilience analysis is carried out annually, covering environmental, social and business-conduct aspects, building on the DMA, the climate scenario analysis and the prior year's resilience analysis (p.152-153). Material topics and sub-topics are listed per-chapter with Positive/Negative/Risk/Opportunity markers for short-, medium- and long-term horizons and value-chain location.

ESRS content index

Reference: pages 306-317 (Annex, "List of material disclosure requirements" and "List of datapoints ... that derive from other EU legislation").

The Annex lists, for each material disclosure requirement, the page(s) on which it is disclosed, and separately lists datapoints derived from SFDR, Pillar 3, the Benchmark Regulation and the EU Climate Law, each flagged "■ Material" or "□ Not material" with a page reference where material (p.311-317). "To determine the material information to be reported, the identified material impacts were examined in more detail. Disclosure requirements were identified based on where the material impacts were located in the value chain" (p.306).

Omissions: "The option to omit certain narrative information on intellectual property, know-how or innovation results has been used. No use has been made of the option to omit qualitative information on upcoming developments or matters still under negotiation" (p.140).

Transition plan for climate change mitigation

Reference: pages 172-178.

The transition plan builds on the existing decarbonization approach and a decarbonization program; targets for Scope 1, 2 and 3 "were approved by the Porsche AG Group's Executive Board in 2024" (p.175). Alignment is tracked two ways: the SBTi Land Transport Guidance (Scope 3 use-phase target) and the "XDC Model" (version 3.4.5, "right°"), under which "the Porsche AG Group's target trajectory fulfills the 1.5-degree requirement ... from the base year 2023 until 2030" (p.172).

Decarbonization levers span supply chain (renewable energy, sustainable materials), own sites (renewables, efficiency) and use phase (renewables, efficiency) (p.173-174). Taxonomy-aligned CapEx of €3,020m and OpEx of €698m went to electrifying the product portfolio in 2025, with ~€5bn planned over the next five years (p.177). No investments in coal/oil/gas activities; Porsche AG is not excluded from EU Paris-aligned benchmarks (p.177). A qualitative locked-in emissions assessment concludes "it is not currently foreseeable that the GHG emissions potentially tied up in assets and vehicles will prevent any of the defined emission reduction targets from being achieved" (p.177). The SBTi's draft Automotive Sector Net-Zero Standard is flagged as a target the company "cannot meet" on current estimates (p.173).

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 IRO-1 / the E1 "Climate risk and scenario analysis" section (pages 151, 168-171). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

A detailed scenario analysis was carried out in 2024 and "rolled ... forward in the reporting year" (p.169), to 2050, covering own operations and the value chain.

Physical risk: the high-emissions IPCC SSP5-8.5 scenario was used "to identify worst-case risks," assessing floods, droughts, cold snaps, heat waves and heat stress/water scarcity. At own sites, "there are no material net risks" given existing flood protection and air conditioning; suppliers' sites are risk-screened (p.169-170).

Transition risk: the IEA Net Zero Emissions by 2050 Scenario (2023 update) models a 1.5°C pathway and ~64% BEV/PHEV/FCEV global sales share by 2030 (p.170-171). Key financial transition risks: insufficient BEV demand, CO₂ fleet-emission sanctions (a low three-digit-million-euro 2025 provision) and North American charging-infrastructure gaps (p.168-169).

Resilience in relation to climate change

Back-filled from the report's general "Resilience analysis" section and its climate-specific sub-section (pages 152, 168). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"The Porsche AG Group has established structures that allow it to take account of material climate-related impacts and risks. It strengthens the adaptability of its strategy and business model over the short, medium and long term by implementing policies, actions and targets in conjunction with the transition plan" (p.152). The assessment draws on the 2025 DMA, the climate scenario analysis, and the prior year's resilience analysis, using criteria including "the scope and quality of existing policies, actions and targets" and "challenges in implementing adaptation measures and strategies."

Key uncertainty named: "the transition to lower-emission mobility with BEVs is expected to progress more slowly than initially anticipated," leading the company to examine "a revision of its existing Scope 3 target" (p.152). Indirect resilience factors considered include ESG-linked incentive schemes, Executive Board sustainability expertise, and influence over the indirect value chain.

Policies related to climate change mitigation and adaptation

Reference: pages 179-182.

Own activities: the Environmental Compliance Management System (ECMS) Policy defines process, responsibilities and minimum standards for environmental/energy matters; the manual on environmental requirements stipulates that "actions aimed at increasing energy efficiency must be taken into account when planning buildings and facilities," and the 2025 Porsche Sustainable Building Standard (PSNB) sets resource- and energy-efficiency requirements for construction.

Value chain: the Code of Conduct for Business Partners requires direct business partners "to take appropriate actions to reduce air emissions, including greenhouse gas emissions" and to work on Scope 3 reductions; since 2021 all new production-material contracts (and, from the reporting year, selected non-production-material contracts) require suppliers to switch to certified renewable electricity. A 2023 Executive Board resolution increases upstream transparency on natural-disaster risk (p.180-181).

Actions and resources related to climate change

Reference: pages 182-184.

Product: BEV share 22.2%, PHEV 12.1% of 2025 sales (2024: 12.7%/14.3%); electric Cayenne and Macan GTS launched.

Supply chain: more sustainable materials and renewable electricity in high-voltage battery cell manufacture for Taycan/Macan/Panamera/Cayenne saved ~146,377 tCO₂; further Volkswagen Group production-material actions saved ~40,035 tCO₂. 788 direct suppliers were assessed for natural-disaster exposure against a target of 735.

Own sites: Stuttgart-Zuffenhausen, Leipzig and Weissach were net carbon neutral in 2025: renewable electricity cut Scope 2 by 89,701 tCO₂, biomethane cut Scope 1 by 53,226 tCO₂, and 15,968 tCO₂ of residual emissions were offset.

Use phase: long-term renewable-energy commitments for the BEV fleet saved ~585,841 tCO₂. Logistics: transport capacity utilization up 15%; all diesel forklifts at Stuttgart-Zuffenhausen replaced with electric, eliminating 100% of related emissions.

Targets related to climate change mitigation and adaptation

Reference: pages 184-186.

Scope 1+2 (own operations): -76% by 2030 vs. a 2016 base of ~192,400 tCO₂e; 2025 actual 57,460 tCO₂e (market-based) / 160,678 tCO₂e (location-based).

Scope 3 use phase: -42% by 2030 vs. a 2023 base of 16,749,972 tCO₂ (restated); 2025 actual 10,690,154 tCO₂, "around 36% below the base year 2023." The company states plainly that "due to the highly volatile market conditions and new standards expected in the future, the Porsche AG Group expects that the current target in Scope 3 will have to be revised" (p.185), not possible before 2026.

Supply chain: target of 150 direct suppliers assessed for natural-disaster transparency in 2025; 194 achieved.

Charging infrastructure: target of 23,500 additional NACS-accessible charging points in North America.

Energy consumption and mix

Reference: pages 186-187.

"The vast majority of the energy consumed came from renewable sources" (p.186). All activities are classified as high climate-impact sectors (NACE 29.10 — manufacture of motor vehicles), so intensity is calculated on total sales revenue and total consumption. Bundled renewable-electricity purchases were 82.7% of renewable electricity, unbundled 17.3% (first year reported, no 2024 comparative).

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 187-191.

Scope 1 fell mainly from "the closure of our natural-gas-dependent research site" narrative does not apply here (Porsche-specific driver: electrification and biomethane switch); Scope 3 is ~98% of the total footprint, driven by purchased goods/services (Scope 3.1, largely vehicle-LCA supply-chain emissions) and use of sold products (Scope 3.11). Twelve of 15 Scope 3 categories are calculated; categories 3.10 (processing of sold products) and 3.15 (investments) are excluded as low-materiality. A 2024 Annual Report error swapped the reported share of carbon credits from removal vs. reduction projects; the correct 2024 split is disclosed alongside the 2025 figures (p.189-190).

GHG removals and carbon credits

Reference: pages 191-192.

"There are currently no actions already implemented at the Porsche AG Group to remove and store GHG either in the company's own operations or in the value chain." Avoidance and reduction take "the utmost priority," and the company "only offsets if emissions cannot be avoided technically or with reasonable economic effort" (p.191).

In 2025 Porsche AG offset 16,731 tCO₂e (2024: 1,490,506 tCO₂e), 96.2% from reduction projects (Verra and Gold Standard), 3.8% from removal projects. "From 2025 the Porsche AG Group no longer offsets the remaining emissions of its battery electric vehicles," the main driver of the year-on-year drop (p.192). Biogenic CO₂ (693/46,176 tCO₂e range by scope) is reported separately, not as a removal.

Internal carbon pricing

Reference: page 192.

Porsche AG does not disclose a single group-wide carbon price. Internally, "Porsche AG ... works internally, for example in the context of vehicle projects, with a CO₂ target control system that continuously calculates the CO₂ emissions of vehicle projects and evaluates and decides on measures to reduce them in the development process on the basis of marginal costs [€/tCO₂]" (p.192). "The financial resources required to achieve the decarbonization targets are included in the corporate planning."

Policies related to pollution

Reference: pages 197-200.

Own activities: the ECMS Policy and its supporting "manual on environmental requirements" govern air, water and soil pollution controls; the Hazard Prevention Management Policy defines procedures to reduce incidents with hazardous substances, with site management/legal representatives responsible for implementation (p.198-199).

Value chain: the Code of Conduct for Business Partners requires direct partners to avoid air pollution, harmful noise and excessive water withdrawal, and to "refrain from or avoid the use of substances of concern or very high concern" (p.199). Direct business partners in conflict-mineral (tin, tantalum, tungsten, gold) supply chains must meet OECD Due Diligence Guidance and use only RMI-verified materials (p.199). The Volkswagen Group standard on "material and chemical conformity" requires SVHC on the ECHA candidate list to be "generally avoided," and prohibits category 1A/1B carcinogenic, mutagenic or teratogenic substances "in all circumstances" (p.200).

Actions and resources related to pollution

Reference: pages 200-201.

Air: the "E-Scrub" electrostatic separator and wet-chemical air purification at Stuttgart-Zuffenhausen Paint Shop I keep exhaust solvent concentration ~18.5 g/m² below the 30 g/m² legal limit; Paint Shop II is ~28.1 g/m² below; Leipzig's "Eco DryScrubber" dry-separation system keeps it ~28.8 g/m² below. In February 2025 Leipzig's exhaust air purification system was replaced with a more efficient regenerative-post-combustion design.

Water/soil: wastewater is pre-treated (chemical-physical treatment, light-liquid separators) before discharge; no Montreal Protocol refrigerants were emitted during 2025 vehicle production. No reportable soil/water incidents at Porsche Leipzig GmbH in 2025; disruptions at Porsche AG "were essentially limited to business disruptions with minimal impacts."

PFAS: a cross-brand substitution analysis and new IT application (pilot 2026) support a planned changeover to PFAS-free air-conditioning systems (p.201).

Targets related to pollution

Reference: page 201.

No separate numeric pollution target is disclosed beyond the UEP (reduction of environmental impact of production) indicator, which bundles energy, water, CO₂, VOC and waste. "No specific target has been set for pollutant emissions in water, because the values are below the legal threshold" (p.201). From 2026 the UEP is replaced by new environmental targets covering decarbonization/energy, ecosystems, and circular economy.

The company states it "is currently unable to set specific targets for managing the material risk arising from a potential ban on PFAS due to the lack of substitutes and legal uncertainties," and has "not yet set a specific target for controlling microplastic emissions from tire abrasion," though "regulatory developments may require that an explicit target be introduced ... in the future" (p.201).

Pollution of air, water and soil

Reference: page 202.

VOC fell from 114.89t to 47.88t, "mainly due to the replacement of the exhaust air purification system in the vehicle production paint shop at the Leipzig site." "There are no facilities in the Porsche AG Group that exceed" E-PRTR reporting thresholds, but the figures are disclosed voluntarily "to create transparency" (p.202). NOx/SO₂ rose due to colder 2025 weather increasing heating-gas use.

Substances of concern and substances of very high concern

Reference: pages 203-204.

SVHC contained in vehicles produced: 2,410 t in 2025 (2024: 2,883 t), determined via a reference-vehicle approach across five vehicle segments. By hazard class: toxic-for-reproduction substances (Article 57c) dominate at 2,370 t, "mainly found in lead starter batteries." "If the batteries are used and disposed of properly, no lead or lead compounds are released into the environment" (p.203).

Scope limits acknowledged: "It is currently only possible to assess the total quantities of SVHC that leave production as part of the produced vehicles ... It is currently not possible to fully assess the quantities of substances or mixtures that are used in production but do not become part of the vehicle," though "an indicative assessment carried out in the reporting year revealed that this quantity ... is insignificant" (p.203-204). "There is currently no limit that encompasses the full range of all known SVHC ... it is therefore not possible to collect data on these emissions" (p.204).

Policies related to water and marine resources

Reference: pages 206-207.

"Water is an increasingly scarce resource" and "the largest share of water withdrawal and water consumption in the value chain ... occurs upstream" in raw-material extraction (p.205). The ECMS Policy and its environmental-requirements manual set water-use and discharge requirements for own sites; specification sheets for mica (Responsible Mica Initiative Global Workplace Standard) and battery raw materials (lithium, nickel, cobalt, natural graphite) require direct suppliers to meet water-withdrawal due-diligence obligations (p.207). "Due to the location of the plants, no resources from oceans or seas are used directly. Therefore, the Porsche AG Group does not have a direct impact on biodiversity and underwater ecosystems" (p.205) — there is accordingly no dedicated marine-resources policy.

Actions and resources related to water

Reference: pages 207-208.

Cascade rinsing and bath-life-extension in the paint shops conserve water; watertightness/washing systems operate in closed loops where possible. At Stuttgart-Zuffenhausen, a 2025 system reuse of pre-treatment discharge is expected to save ~9,000 m³/year, with a further ~5,600 m³/year identified from optimized pre-treatment zones. At Leipzig, cooling-water-supply optimization cut withdrawal by 4,500 m³ in 2025. A 2023-2024 water-footprint study with the Technical University of Berlin on the Macan Turbo Electric identified hot-spot components and informed 2025 supplier discussions on reducing water consumption (p.208).

Targets related to water and marine resources

Reference: page 208.

Managed via the site-based environmental strategy (UEP indicator, 2014 base = 0%): "Since 2014, the company has reduced the water withdrawal per vehicle produced by Porsche itself by more than 16%," meeting the UEP target and staying "within the linear target corridor" (p.209). From 2026 the UEP is replaced by new environmental targets covering decarbonization/energy, ecosystems and circular economy, which will continue to address water.

Water consumption

Reference: page 209.

Water stress is assessed using Verisk Maplecroft's index; "due to adjustments in Verisk Maplecroft's underlying data, Porsche's own vehicle production and development sites have been located in areas with high water stress since the second half of 2025," explaining the large jump in that line (p.209). 34.9% of consumption (evaporative loss) was directly measured in 2025 (2024: 46.4%); the remainder estimated.

Policies related to biodiversity and ecosystems

Reference: pages 213-214.

The site checklist under the site-based environmental strategy names biodiversity as one of eleven strategic fields of action; "nature-oriented design of open spaces" guidelines at Stuttgart-Zuffenhausen and Leipzig set planting and green-space standards (p.213). "As the Porsche AG Group's sites do not have a direct negative impact on protected areas or biodiversity-sensitive areas, no specific policies to protect biodiversity and ecosystems and to combat deforestation have been drawn up to date" for own operations (p.213).

Value chain: the Code of Conduct for Business Partners requires protection of "natural ecosystems, in particular ... endangered wildlife habitats," avoidance of deforestation, and exclusion of deep-sea-mining-derived raw materials. Leather specification sheets require country-of-origin disclosure and, for high-deforestation-risk sourcing, enhanced due diligence including geo-fencing (p.213-214).

Actions and resources related to biodiversity and ecosystems

Reference: pages 214-215.

Stuttgart-Zuffenhausen: ~2,750 m² converted to nature-oriented habitat for flora/fauna/insects/birds, part of the "Porsche hilft" volunteer program. Leipzig: a 10 ha flower and utilization strip planted on former agricultural land.

Value chain: the Volkswagen Group's 2025 EUDR compliance IT tool automates geodata collection, plausibility checks and risk analysis for deforestation due diligence. The CASCADE project with Michelin (since 2020) will have trained ~6,500 smallholder farmers in Sumatra by end-2027 on intercropping to enhance biodiversity in natural-rubber cultivation; Porsche AG is also a member of the Global Platform for Sustainable Natural Rubber (GPSNR) (p.215).

Targets related to biodiversity and ecosystems

Reference: page 215.

"Currently, the Porsche AG Group has not yet formulated a measurable, outcome-oriented and time-bound target within the meaning of the ESRS that could serve as a key performance indicator for the material negative impacts 'Support of activities that contribute to biodiversity loss' and 'Negative impacts on ecosystem services due to resource exploitation, production and product use.' A future-proof target ... is to be developed in coordination with the Volkswagen Group" (p.215). The Volkswagen Group's 2024 biodiversity land-use index (BLI), piloted at Porsche AG and Porsche Leipzig sites, "will make it possible to assess land usage and set targets in this area in the future." The company separately aims for full EUDR compliance in the reporting year.

Impact metrics related to biodiversity and ecosystems change

Reference: page 216.

Land sealed by the Porsche AG Group in 2025: 279 ha (2024: 45 ha), calculated from areas newly covered with an airtight/watertight surface, net of any unsealed/renaturated land. 20 relevant sites were identified in or near biodiversity-sensitive areas (Natura 2000, key biodiversity areas, UNESCO sites) within a 4.5 km radius; a site-by-site review found "no protected areas in the vicinity of the sites under investigation where a negative impact from the business activities of the Porsche AG Group was identified," so "no corrective or supplementary actions were required" (p.216). The new biodiversity land-use index (BLI) tool, based on the EMAS biodiversity guide and the IUCN No Net Loss/Net Gain approach, is being piloted at Stuttgart-Zuffenhausen, Weissach and Leipzig.

Policies related to resource use and circular economy

Reference: pages 221-222.

The waste management plan (based on the German Circular Economy Act, KrWG) sets a five-tier hierarchy: avoidance, preparation for reuse, recycling, other recovery, disposal (p.220). The Scrapping or Alternative Use of Obsolete Items Policy requires alternative use to "always take priority over scrapping," subject to economic efficiency.

Value chain: the Volkswagen Group "Environmental standard for vehicles" requires vehicles to be "at least 85% recyclable and at least 95% recoverable," with recycled/recyclate materials prioritized over primary materials (p.222). Since January 2025, suppliers of certain components must report primary environmental data under new Volkswagen Group standards on intermediate products and recyclate-content classification (p.222).

Actions and resources related to resource use and circular economy

Reference: pages 222-224.

Battery recycling: a 2025 pilot tested a closed battery raw-material cycle (mechanical processing and refinement of "black mass" into recyclates), continuing into 2026; the all-electric Cayenne's function-integrated high-voltage battery improved the cell-to-housing ratio by ~12% versus the second-generation Taycan battery.

Packaging: the share of recyclable packaging materials in component packaging is up ~40 percentage points since 2023, reaching ~80% by end-2025; recycled-plastic content in internal after-sales PE flat bags held at 60-70%.

Waste: a pilot with industry partners showed automotive shredder residue (ASR) plastics can be chemically recycled via gasification into new steering wheels.

Targets related to resource use and circular economy

Reference: page 225.

UEP (waste): 2014 base = 0%; the "target of a 45% reduction was met in the reporting year, meaning that the UEP for the waste category is up 14% on 2014" (p.225).

Circular materials: Volkswagen Group-wide ambition of 40% circular materials by 2040 (excluding China, by weight), which Porsche AG "aims to help achieve ... as far as is technically and economically possible," tracked via vehicle/project targets integrated into the target system for selected model series (p.225).

Packaging: by end-2026 all non-recyclable foams used internally in after-sales are to be replaced with alternatives such as kraft paper.

Resource inflows

Reference: pages 225-226.

Calculated from a representative vehicle per model series under VDA standard 231-106; leather is the most relevant biological material, and all direct leather suppliers "must undergo a leather-specific audit by the Leather Working Group and at least achieve the gold level" (p.226). 18 raw materials are assessed group-wide as particularly risky, including battery metals, 3TG conflict minerals, and natural rubber (p.225).

Resource outflows

Reference: pages 226-228.

All vehicles produced in 2025 are at least 85% recyclable and 95% recoverable per UN R133/ISO 22628, in line with the EU End-of-Life Vehicles Directive (p.227). No established system yet exists to assess reparability, so no reparability disclosure is provided (p.226). Around 5,000 refurbished spare parts (gearboxes, navigation systems, starter motors, etc.) are placed on the market annually under the extended spare-parts program; more than 50% of Porsche vehicles delivered in Germany between 1992 and 2007 remain registered, against a ~19-year average German vehicle-scrapping age (p.226-227).

Waste

Reference: pages 227-228.

Main streams: metal waste (aluminum/steel), plastic waste (mostly polypropylene), paint/coating waste (paint sludge), packaging, and hazardous waste from chemical surface treatment, coatings and used oils/lubricants (p.227). Waste is recorded via an electronic waste register; disposal invitations to tender favor facilities offering recycling (p.223).

Policies related to own workforce

Reference: pages 248-250, 258-260.

Working conditions are governed by German law (TzBfG, BetrVG, ArbZG, ArbSchG, LkSG) plus collective bargaining agreements for the metal and electrical industry. The policy statement on respect for and promotion of human rights, issued jointly by the Executive Board and Group Works Council, commits to the UN Guiding Principles, ILO core conventions, OECD Guidelines and the UN Global Compact (p.248-249). The Occupational Health and Safety Policy ("Driven by Safety and Health") implements ISO 45001 as the group-wide minimum standard. Temporary/agency workers are covered by the "same work, same pay" principle and a maximum 48-month assignment length (p.249-250). The Labor and Social Law Policy mandates a discrimination complaints mechanism at every group company (p.258-259).

Engaging with own workforce and workers' representatives

Reference: pages 243-244.

Half of the 20-member Supervisory Board is made up of employee representatives under the German Co-Determination Act; works councils negotiate company agreements on social/fringe benefits, working hours and occupational health and safety, and sit on the Economic Committee and the "Executive Board Occupational Health and Safety Conference." The Labor Director (the Executive Board member for HR and Social Affairs) is the direct line to the Executive Board for codetermination matters (p.243). The annual "Porsche Puls" employee survey feeds into employee-satisfaction insights and work-life-balance management (p.244).

Remediation processes and channels for own workforce

Reference: pages 244-245.

Employees can raise discrimination complaints with managers, HR, the social counseling service, the works council, the representative body for severely disabled employees, or the dedicated anti-discrimination office set up under the German General Equal Treatment Act (AGG) — open also to trainees, interns, applicants and, in some cases, former employees. Complaints are "treated in the strictest confidence," with access "strictly limited to only a few employees." A group-wide whistleblower system and the BHR complaints procedure provide further channels for breaches of rules or human-rights/environmental obligations (p.244-245).

Actions on material impacts on own workforce

Reference: pages 250-252, 260-263.

Health and safety: Porsche AG received ISO 45001 certification in February 2025; Porsche AG, Porsche Leipzig GmbH and the Nardò Technical Center underwent surveillance audits. The "occupational accident index" and first-aid-case data drive continuous policy refinement. Mental-health support includes the "Porsche Check-up," a social counseling service and external partners for early treatment.

Equal treatment: awareness talks by the Labor Director, an intranet digital learning module on (un)conscious discrimination, site information events and flyer/sticker campaigns followed the reporting year's discrimination cases. Diversity Days, mentoring, and a Diversity Toolbox and Diversity Check support inclusion (p.260-263).

Targets related to own workforce

Reference: pages 252-253, 264.

Occupational health and safety: a long-term conceptual target enshrined in the Occupational Health and Safety Policy; reviewed annually.

Gender quota (management): 28% women at the first management level and 22% at the second by 2030 below the Executive Board, adopted by the full Executive Board in 2025. 2025 actual: 29.1% (first level, target met) and 18.7% (second level, just below the interim target) (p.264).

Employer attractiveness: average ranking of 3.33 in 2025 (2024: 3.66) among students/professionals in business, engineering and IT against a 2030 target, measured across twelve data points (p.252-253).

Characteristics of employees

Reference: pages 253-255.

Total employees: 41,780 (2024: 42,615), of which 40,442 permanent / 1,338 temporary, 38,481 full-time / 3,299 part-time. By region: Germany 35,743; Europe (ex-Germany) 3,414; North America (ex-Mexico) 1,112; China incl. Hong Kong 806; other markets 705. 2,029 non-employees (4.9% of total workforce; 2024: 2,988, 7.0%). Turnover: 2,607 leavers, a 6.1% rate (2024: 1,782 leavers, 4.2%). A general works agreement rules out compulsory redundancies at Porsche AG until July 2030.

Characteristics of non-employee workers

Reference: page 254.

2,029 non-employees worked in the Porsche AG Group's own workforce in 2025 (4.9% of total; 2024: 2,988, 7.0%), comprising "temporary workers and those provided by external companies and whose activities are controlled by the Porsche AG Group." Contractors placing employees under contracts for work and services must legally assure compliance with statutory occupational health and safety, accident-prevention and working-hours standards, and pay at least the relevant collective bargaining rate (p.249, 254).

Collective bargaining coverage and social dialog

Reference: page 255.

76.5% of all Porsche AG Group employees were covered by a collective bargaining agreement in 2025 (2024: 76.8%); in Germany, 83.4% (2024: 83.7%). 96.6% of German employees are covered by employee representation (2024: 97.2%). "There are no agreements in the group on the representation of its employees by a European Works Council (EWC)... or ... SE... or ... SCE... Works Council" (p.255).

Diversity metrics

Reference: pages 264-265.

Gender distribution in management (Dec 31, 2025): first management level — 23 women / 126 men (15.4% female); second management level — 142 women / 751 men (15.9% female). Against the statutory quota, 2025 came in at 29.1% (first level) and 18.7% (second level) (2024: 22.0% / 18.8%). Age profile of the workforce: under 30 — 19.4% (2024: 18.3%); 30-50 — 67.1% (2024: 65.6%); over 50 — 13.5% (2024: 16.1%).

Adequate wages

Reference: pages 254, 257.

"In the reporting year, the remuneration of employees in the Porsche AG Group was in line with the respective reference values for an adequate wage," except in Singapore, where 26.4% of employees fell below the local adequate-wage reference (2024: 9.5%) — "mainly relates to sales staff whose remuneration includes a substantial variable component," which "when ... taken into account" brings total income above the reference value (p.254).

Training and skills development metrics

Reference: pages 264-265.

Average training hours per employee: 19.7 in 2025 (2024: 21.0), by category: industrial apprentices 59.9, commercial apprentices 108.3, students in work placement 86.3, performance-based wage earners 5.6, salaried employees 24.6, management 24.2, senior management 23.9, top management 11.6, time-based wage earners 9.8. Calculated from December-to-December data.

Health and safety metrics

Reference: pages 255-257.

TRIR (recordable accidents per million hours worked): 7.5 in 2025 (2024: 9.8). LTIR (per 200,000 hours): 1.0 (2024: 1.2). Fatalities and days lost to injury/illness are tracked per ESRS paragraph 88(b)/(c)/(e); no fatalities are reported for 2025. 100% of employees are covered by the occupational health and safety management system, which is certified to ISO 45001 (certified February 2025; surveillance audits at Porsche Leipzig GmbH and Nardò Technical Center in 2025).

Compensation metrics

Reference: page 265.

Unadjusted gender pay gap: 13.5% in 2025 (2024: 15.4%), "significantly influenced by the gender distribution in the hierarchical levels." CEO pay ratio: the highest-paid individual's total annual gross remuneration was 37.4 times the median total annual gross remuneration of all other employees (2024: 39.6 times). Methodology: average hourly earnings by gender based on total annual gross remuneration; pay ratio via an approximation method based on median remuneration and pay distribution (p.265).

Incidents, complaints and severe human rights impacts

Reference: page 266.

208 whistleblower reports received in 2025 (2024: 164). Of these, 1 confirmed severe breach of discrimination/harassment rules (2024: 2) and 2 severe breaches on other workforce issues (2024: 0); no fines, penalties or damages were incurred for the discrimination/harassment breach. No severe human-rights violations (or associated fines/penalties/damages) involving Porsche AG Group employees were identified in 2025, unchanged from 2024. No reports to National Contact Points for OECD Multinational Enterprises are known.

Policies related to value chain workers

Reference: pages 273-276.

The Code of Conduct for Business Partners is "the central document and the basis for cooperation based on trust," prohibiting forced/compulsory labor, modern slavery, human trafficking and child labor, and requiring compliance with minimum working age and freedom of association/collective bargaining (p.273-274). It draws on the OECD Minerals Guidance and ILO fundamental conventions. The policy statement on human rights and the Business and Human Rights Policy implement LkSG due diligence across Porsche AG's own business and its supply chains (p.274-275). Direct suppliers must cascade equivalent requirements to their own supply chains.

Engaging with value chain workers about impacts

Reference: pages 269-270.

Engagement is mostly indirect: Porsche AG participates in the automotive industry dialog under the German NAP for Business and Human Rights; supplier audits (e.g., the RSCI standard) include "anonymous interviews" with suppliers' workers used to identify violations and build action plans. The Responsible Mica Initiative held direct conversations with mine workers and communities in India/Madagascar in 2025; the CASCADE project engages rubber smallholders in Sumatra (p.269-270).

Remediation channels for value chain workers

Reference: page 270.

The Supply Chain Grievance Mechanism (SCGM) processes reports of Code of Conduct for Business Partners breaches by tier-1 or n-tier suppliers, handled by Porsche AG Procurement's sustainability experts and, where needed, subject-matter experts. The BHR complaints procedure, run centrally by Porsche AG, gives workers in the value chain confidential channels to report human-rights or environmental breaches, publicly accessible "in clear and understandable language." Remedies range up to "temporary suspension or termination of the business relationship" for direct suppliers, and exclusion from subcontract awards for indirect suppliers (p.270).

Taking action on material impacts on value chain workers

Reference: pages 276-278.

The Responsible Supply Chain (ReSC) system combines a risk analysis, standard measures (Code of Conduct, SCGM, S-rating, media monitoring, training) and deep-dive measures (RMDDMS, Human Rights Focus System) for high-risk areas. ~788 direct suppliers underwent natural-disaster risk screening; 650+ direct suppliers received sustainability/integrity training in 2025. "No violations of the human rights protected by the LkSG by suppliers of Porsche AG were identified in the reporting year" (p.277). Effectiveness is reviewed via an input-output-outcome-impact methodology and re-audits.

Targets for value chain workers

Reference: page 278.

The sustainability rating (S-rating) target: 87% of direct suppliers with a positive S-rating in 2025; actual 89% achieved (2019 base: 71%), against a 2030 ambition of 93%. "There was no direct involvement of workers in the value chain or their representatives" in setting the target (p.278). Use of the S-rating (since 2019) manages both the value-chain-worker impacts here and the supplier-relationship-management impacts under G1-2.

Policies related to consumers and end-users

Reference: pages 285-286.

Porsche AG's safety strategy ("integral safety"), adopted by the Executive Board in 2021 and running to 2030, covers both accident prevention (active safety) and consequence mitigation (passive safety). The central catalog of requirements for vehicle safety systems "defines how safety standards are to be implemented and adhered to in a binding manner, irrespective of vehicle model or market," informed by consumer-test results, real-accident analyses and the current state of safety science (p.285). A safety management system (SMS) for automated driving/parking incorporates UNECE Regulation No. 157 requirements and market-monitoring-based incident detection, rolled out via over-the-air software updates (p.285-286).

Engaging with consumers and end-users about impacts

Reference: pages 283-284.

"Porsche AG does not directly involve customers in vehicle safety processes"; engagement is instead through standardized post-accident customer interviews (with explicit consent), plus the broader customer excitement index (CEI) survey of "more than 300,000 customers worldwide" each year covering purchase, product quality, displays/controls, Porsche Connect, charging and service (p.284-285). Complaints and suggestions reach the company via a central complaints management system.

Remediation channels for consumers and end-users

Reference: page 284.

Consumers can contact general complaints management for issues including breaches of product safety and licensing regulations; the group-wide whistleblower system's public reporting channels are also open to customers for reports about employee misconduct, though "there are no complaint channels specifically dedicated to personal safety" (p.284). Product-safety/licensing reports are handled separately from general product/service concerns, which go through Porsche customer support.

Taking action on material impacts on consumers and end-users

Reference: page 286.

A center airbag (standard on all Macan and Cayenne electric derivatives) protects against side-impact head-to-head injury; effectiveness is evidenced by compliance with Euro NCAP far-side requirements. The Macan, Taycan and Cayenne (including the new electric Cayenne in 2025) each achieved the top five-star Euro NCAP overall safety rating. For automated-driving risk, all project staff undergo multi-level "AD Drivers Training" (e-learning, simulator, proving-ground stages depending on prototype maturity) to recognize and react to system malfunctions.

Targets for consumers and end-users

Reference: pages 286-287.

"At present, the Porsche AG Group does not yet have a measurable, outcome-oriented and time-bound target within the meaning of the ESRS" for either the customer health-and-safety impact or the autonomous-driving risk, though it states the intention to set "sustainable and ambitious targets" going forward (p.287). Instead it manages the related customer excitement index (CEI): target of "increasing the average share of excited customers ... in a year-on-year comparison"; 2025 actual 45.5%, unchanged from 2024's 45.5%.

Business conduct policies and corporate culture

Reference: pages 291, 292-297.

The Code of Conduct "summarizes the most important principles and expectations about acting lawfully, sustainably and with integrity," covering conflicts of interest, gifts/gratuities, anti-corruption and appropriate conduct toward customers, partners and public officials; it is publicly available and taught via mandatory onboarding training (p.292). The Porsche Code (built on the "passion, pioneering spirit, sportsmanship, one family" cultural mission statement) embeds integrity as a leadership criterion. The compliance management system spans anti-corruption, antitrust, anti-money-laundering, AI regulation, data privacy/security and insider-law compliance, overseen by a Chief Compliance Officer reporting quarterly to the Executive Board and annually (integrity report) to the Supervisory Board's Audit Committee (p.292-293).

Management of relationships with suppliers

Reference: pages 302-305.

The Code of Conduct for Business Partners is the central document for responsible procurement. The Supplier Risk Management Policy governs swift identification of direct suppliers facing financial distress; the Production Material Procurement Policy sets forward-sourcing/global-sourcing processes decided by the Porsche Sourcing Committee. Before contract award, Porsche AG runs a risk-based compliance check and a financial "Supplier Status" rating (p.303-304). Only direct suppliers with a positive S-rating are eligible for contracts; more than 650 direct suppliers received sustainability/integrity training in 2025, and training on the Code of Conduct for Business Partners is mandatory at least once every three years (p.304-305).

Prevention and detection of corruption and bribery

Reference: pages 293, 296-299.

The Avoidance of Conflicts of Interest and Corruption Policy, reviewed annually, sets admissibility criteria for gifts/invitations and screening of business partners; the Donations and Social Sponsorship Policy and Sponsorship Policy govern donation-based and brand-partnership spending to prevent corruption. A group-wide whistleblower system (available in 65+ languages, anonymous reporting supported, run via the independent Porsche Investigation Office) is the main detection channel. In 2025, 14,980 Porsche AG employees (86.4% of relevant staff) completed the digital Code of Conduct training module including anti-corruption content; trained-employee coverage at increased-risk companies was 82.4%. "As in the prior year, there were no known matters that led to convictions for violations of anti-corruption and anti-bribery laws or any fines" (p.299).

Targets related to business conduct

Reference: page 299 (part of MDR-T/GDR-T disclosures; G1-3 is a standalone DR only from the 2025/2026 ESRS — the FY2025 report was prepared under the 2023 ESRS, where this content sits under the compliance "General compliance targets").

Porsche AG has set two recurring compliance targets: "carry out at least two communication initiatives per year on each compliance topic" (anti-corruption, money-laundering prevention, antitrust), achieved in 2025 with six dedicated initiatives; and ensure "employees take part in at least two training sessions" per year on those same topics, which "all compliance employees in their respective department completed" (with narrow, named exceptions for leavers/long absences/late starters) (p.299). Target monitoring compares target and actual values at year-end.

Incidents of corruption or bribery

Reference: page 299.

"As in the prior year, there were no known matters that led to convictions for violations of anti-corruption and anti-bribery laws or any fines within the Porsche AG Group in the reporting year. Nor were any breaches of procedures and standards of anti-corruption and anti-bribery known about in the reporting year, so no action had to be taken" (p.299).

Political influence and lobbying activities

Reference: pages 300-301.

"The Porsche AG Group did not make any political donations worldwide in the reporting year," covering direct contributions and indirect (lobbyist/association) contributions and in-kind value (p.300). Memberships disclosed include the VDA, Südwestmetall, the Stuttgart and Leipzig Chambers of Commerce, AmCham Germany and Stifterverband. The Volkswagen Group is EU-Transparency-Register-registered (REG 6504541970-40); Porsche AG and Cellforce Group GmbH are registered in Germany's federal Lobby Register and the Baden-Württemberg state parliament's transparency register; Porsche Ibérica, S.A. is registered with Spain's CNMC (p.300-301).

No target is set: "Due to the dynamic nature of lobbying activities, it is not currently possible to set suitable long-term and measurable targets. It goes without saying that transparency and ensuring compliance with all legal requirements are overarching targets" (p.301).