Volkswagen China's Chen Sai: Corporate Social Responsibility as Foundation for Sustainable Growth

"This year marks the 40th anniversary of the Volkswagen Group's entry into China. The 'Green Belt Initiative'—Volkswagen China's public welfare forest project—is a profound expression and vivid practice of our 40-year commitment to 'In China, For China'. In 2020, when we designed the 'Green Belt Initiative' with the China Green Foundation, it coincided with the company's commitment to support the Paris Agreement and its announcement to become a carbon-neutral company by 2050. Therefore, although the 'Green Belt Initiative' is a public welfare project, it is an extension of our entire carbon-neutral strategy, constantly reminding us that 'climate is changing, we must act'. It also allows us to understand that carbon neutrality or the E in ESG (Environmental) ultimately aims to address climate change, so that we and future generations can have a more sustainable planet," said Chen Sai, Manager of Public Relations, Communication, and Corporate Social Responsibility at Volkswagen Group (China) (hereinafter referred to as "Volkswagen China").

On September 20th, in the special program "Zero Vision Auto" titled "Helping Automakers Grasp New Opportunities in Sustainable Development, How to Do ESG?" jointly hosted by China Business News and China Economic Media Think Tank, Chen Sai shared Volkswagen China's experience in ESG practice through the "Green Belt Initiative"—Volkswagen China's public welfare forest project. The live broadcast of this event was viewed 138,000 times.

Reporters learned that the "Green Belt Initiative"—Volkswagen China's public welfare forest project—is a joint initiative by Volkswagen China, along with the Volkswagen, Audi, Skoda, and Bentley brands, with the China Green Foundation, and was officially launched in 2021.

The barren hills in Tangchuan Town, Huaxian County, Qinghai Province, have been revitalized through the "Green Belt Initiative"—Volkswagen China's public welfare forest project.

What is ESG? ESG (Environmental, Social, and Governance) emphasizes that companies should focus on environmental protection, fulfill social responsibilities, and improve governance levels. The ESG concept assesses the sustainability of corporate operations and their impact on social values from three dimensions: environment, society, and corporate governance.

This report will comprehensively showcase the current state of ESG in China's automotive industry, present the similarities and differences between fuel vehicles and new energy vehicles in the ESG field, and highlight the outstanding performance of overseas enterprises in the ESG field. It aims to promote continuous progress of Chinese automotive companies in the field of global sustainable development, continuously enhance their influence, and contribute Chinese wisdom and strength to global sustainable development. The report will combine quantitative and qualitative research methods, with the most important step of quantitative research being the collection of ESG-related data from major Chinese automotive companies, which has already entered the preliminary research phase.

Reporters learned that Chen Sai is mainly responsible for formulating corporate social responsibility strategies at Volkswagen China, designing and implementing corporate social responsibility projects to support the sustainable development of China's ecology and society, as well as the company's sustainable development and ESG issues.

It is understood that the "Green Belt Initiative"—Volkswagen China's public welfare forest project—plans to plant 8.5 million suitable tree species in 10 ecologically fragile areas in northern China from 2021 to 2030, supporting local efforts to address severe ecological challenges such as soil erosion, desertification, sandstorms, and loss of biodiversity. The project is expected to achieve a forestation area of 40 million square meters by 2030, equivalent to twice the industrial site area of Volkswagen Group's factories in China.

"The 'Green Belt Initiative' is a reflection of Volkswagen China's long-termism. It aligns with the United Nations Decade on Ecosystem Restoration and is also the most critical decade for implementing global sustainable development goals. The project particularly focuses on the increasingly severe impact of climate change and ecological crises on ecologically fragile areas, which are often highly coupled with underdeveloped areas and low-income populations. They do not have the ecological resilience and economic foundation to cope with climate change," Chen Sai introduced.

So far, Volkswagen China has completed ecological restoration projects in four ecologically fragile areas, planted 3.4 million trees, achieved a forestation area of 16 million square meters, and approximately 280,000 local residents have directly benefited from the project.While preventing wind erosion and desertification, the "Green Belt Action" is also committed to creating significant economic benefits to further support local livelihoods and economic development. Chen Sai gave an example: "Everyone knows Suosuo, a drought-resistant shrub planted in sandy or desert areas. People plant Suosuo to lock the edges of the desert or to restore the ecological surface of the desert, to prevent desertification and sandstorms. Suosuo can be inoculated with Cistanche, a valuable traditional Chinese medicine, thus creating significant economic benefits. On one hand, it can govern the ecology, and on the other hand, it can establish a sustainable business model, and then drive the management of desertification and ecological governance."

Chen Sai said, "Many public welfare projects carried out by Volkswagen China are helping the company's own sustainable development and are an indispensable part of corporate ESG (Environmental, Social, and Governance)."

"The implementation of the 'Green Belt Action' has made us more aware of the public's expectations of us, which is of great help in our business decision-making," Chen Sai shared. "It also reflects Volkswagen China's understanding of sustainable development and corporate social responsibility, facilitating more comprehensive and objective understanding and evaluation of us by relevant parties inside and outside. For example, in April of this year, the Volkswagen Group headquarters released a new sustainable development strategy, which set the goal of becoming 'a mobility company with a positive impact on society and ecology' as the sustainable development vision. The 'Green Belt Action' is a very powerful practice of this vision, allowing the public to see that we are actively transforming, and our vision and practice are 'unity of knowledge and action'."

Chen Sai specifically mentioned that the "Green Belt Action" also internalizes the corporate responsibility image, enhancing the company's cohesion and brand loyalty. "The responsibility image is actually an important foundation for a company to achieve sustainable growth, and corporate social responsibility is directly related to the shaping of the responsibility image. The implementation of the 'Green Belt Action' helps us to shape a positive corporate citizen image. At the same time, many employees and car owners are very proud to become a part of Volkswagen after understanding this project, which also strengthens the company's own cohesion and users' loyalty to the brand invisibly."