Germany – Volkswagen AG, an automotive corporation and parent of the Traton Group based in Wolfsburg, Lower Saxony, has made several sustainability policy announcements related to finance for its “green” technology development and to carbon emissions reduction in its business operations. 

In October, Volkswagen published an updated ‘Green Finance Framework’, which outlines the company’s process for issuing “green bonds” or debt instruments for financing its investments into electric vehicle development and production. The framework incorporates up-to-date EU taxonomy for sustainable activities, which is intended to make the allocation of funds into green business projects more transparent for investors. According to its framework, Volkswagen will invest money raise from green bonds in the manufacture of equipment for the production and use of hydrogen; the manufacture of low-carbon technologies for transport; the manufacture of other low-carbon technologies; and market research, development and innovation.¹