By Charlie King

January 10, 2026

Volkswagen Group Chief Sustainability Officer Dirk Voeste

Volkswagen Group Chief Sustainability Officer Dirk Voeste spearheads the company’s Regenerate+ strategy, centering sustainability in value

Volkswagen Group, one of the world’s leading automotive conglomerates, is transforming its sustainability ambitions with a blueprint intended to regenerate value for people, planet and business. Leading this strategy is Chief Sustainability Officer Dirk Voeste.

Over the past two and a half years, Dirk has brought fresh perspective from a diverse background – first as a biologist, then as a space scientist and later as sustainability lead for chemical giant BASF – to Volkswagen Group, which encompasses brands such as Volkswagen Passenger Cars, Audi, Porsche, Škoda, SEAT and more. His decision to join Volkswagen was an unplanned, dynamic step, shaped by a sense of duty to “clean up something our generation left”, as encouraged by his family.?

“To me, it’s about impact – but it’s also about business and how we drive it,” Dirk explains.

See the full feature in issue 60 of Sustainability Magazine, sister title to Manufacturing Digital.

The foundations of VW’s sustainability strategy

Much of VW’s work builds on what Dirk describes as “enormous, energising, impactful” activity – connecting technical innovation with deep-rooted values, strategising for long-term effect and embedding a culture where sustainability is a shared language and business imperative.

Despite his science-based entry point into sustainability through aerospace, agricultural and chemical sectors, Dirk’s approach at VW pivots around a four-pillared philosophy. The Regenerate+ strategy reframes traditional models, moving from the classic triad of environment, society and business to an expanded quartet:

• Nature
• Society
• Business
• People.?

“Volkswagen has 670,000 employees worldwide,” Dirk explains. “I think they need a voice, especially when transforming from analogue to digital, from combustion to electric.”

The result is a new, holistic vision for Volkswagen Group which defines sustainability as creating value “for today’s and future generations, nature, society and business”. It prioritises measurable impact across the value chain and links purpose and profitability inseparably in the Group’s strategy.? Dirk insists, “It has to make business sense, it’s not philanthropic”.

VW’s SBTi-Approved Sustainability Targets

Reduce absolute Scope 1 and 2 GHG emissions 50.4% by 2030 from a 2018 base year

Reduce Scope 3 GHG emissions from use of sold products of light duty vehicles 30% per vehicle km by 2030 from a 2018 base year

Temperature alignment (based on Scope 1 and 2 targets): 1.5°C/2°C

Sustainability, he argues, becomes “real and tangible” only when it delivers benefits for customers and stakeholders, whether those are more efficient vehicles, lower emissions or improved user experience. “An electric vehicle, for example, is super efficient,” Dirk explains. “A regular ID.7 model runs with 20 kilowatt hours per 100 kilometres – equivalent to two litres of diesel. It offers enormous efficiency, less maintenance and quieter driving – once people drive electric, we rarely see them switch back.”?

The four pillars of Volkswagen’s Regenerate+ strategy are each tracked by dedicated KPIs. “We track these holistically, but always with a business lens,” Dirk says. “Sometimes certain projects engage our neighbourhood, but meeting the business case is vital.”

Sustainability-first strategy

Volkswagen Group’s Regenerate+ strategy was launched by CEO Oliver Blume in Berlin before the company’s wider strategy to highlight leadership commitment.

“Our suppliers also need to see we’re really staying close,” Dirk explains. “It has to be pragmatic, ingrained in the culture.”

A VW steering wheel

The strategy’s legitimacy rests on rigorous transparency through progress reports. Volkswagen reports quantifiable progress each year, responding to the new EU Corporate Sustainability Reporting Directive (CSRD).

Investing in circular economy, partnerships and business resilience

According to Dirk, sustainability at Volkswagen extends far beyond decarbonisation and EVs. Central to the Regenerate+ strategy is the circular economy, which seeks to minimise extraction of new materials and maximise recycling and reuse across the vehicle life-cycle.

“Circular economy hits all our pillars – nature, decarbonisation, people, society and business. It’s a really overarching topic,” Dirk explains.

For automotive manufacturing, this involves steel, glass, aluminium, polymers and used parts, returned and refurbished for new use.?

“Why should we take more resources out than we already have?” Dirk asks. “Half of the copper demand could be met from recycled material, which is not currently being recycled. Circular economy helps reduce the carbon footprint, creates untapped value streams in automotive and is a form of business resilience. It makes sense regionally, too, by strengthening supply chains and reducing risk.”

VW’s supplier network is vast – more than 60,000 – operating under strict sustainability ratings. “We’ve set a target, so by 2040, 95% of our relevant suppliers need an A or B rating,” Dirk says. “We’re at 83% now. We talk to suppliers, de-risk, understand problems and help them improve.”?

This link between circularity, resilience and financial performance is vital. “If you reduce your carbon footprint, you take out energy, reduce costs and become more robust and competitive,” Dirk says. By focusing on partnerships for sustainability, Volkswagen also mitigates supply risk and controls costs, enhancing long-term competitiveness. “Sustainability is also about partnerships,” Dirk explains. “You can’t do it alone – you need partners in all instances, whether it’s decarbonisation, technologies or circular economy.”

Biodiversity and nature restoration: beyond the factory gates

For Volkswagen Group, responsibility for nature and biodiversity is integral to its sustainability mission. The company builds up to nine million cars annually, with 114 global assets and an expansive supply chain, all of which impact nature directly or indirectly. “If nature gets out of balance, we as a society have an issue,” Dirk says. “As a car manufacturer, you have an impact on nature – streets, production sites, supply chains.”?

Volkswagen

VW’s solution is twofold – internal supply chain dialogue using sustainability ratings and a new annual biodiversity fund worth up to €25m (US$29.2m) for direct restoration projects. “We invest up to €25m per year into biodiversity projects – to demonstrate we can restore, regenerate or maintain nature,” Dirk says.

“If this works in our suppliers and own assets, it’s a form of resilience. It’s not philanthropic, but a business reason. If you can combine both, the better.”

The Group also empowers employees across its global brands – whether in Germany, France, UK, Canada, Spain, China or beyond – with an internal sustainability impact fund. This supports grassroots proposals for neighbourhood engagement, energy efficiency and process innovation in plant operations. “Ownership is with the people,” Dirk stresses.

Staff empowerment and organisational engagement in sustainability

Stakeholder buy-in is central to Volkswagen’s sustainability transformation. Employee engagement is encouraged, not only via financial backing but by fostering transparent dialogue. “In the last year, over 9,000 initiatives reduced energy consumption, saving 3.5 million megawatt hours annually – all through small, sustained changes,” Dirk says.

Chief Sustainability Officer at Volkswagen Group, Dirk Voeste

Governance is refreshed, too. A ‘sustainability practice group’ model supports each of Regenerate+’ four pillars, with three internal and three external experts on areas like nature, society, people and business. Advisory groups meet at least twice yearly with the board, cross-pollinating expertise between the World Wildlife Fund, biodiversity specialists and zero-carbon NGOs, as well as project leaders.

This network drives actionable knowledge and holds the organisation accountable. “You can always call the expert – on circular economy, decarbonisation, biodiversity – when you need help,” he says. Compared to standard advisory boards, this interactive, dynamic approach is a distinct innovation.

Commitment to delivering impact

Volkswagen’s commitment to measurable impact is evident across operations. The Zero Impact Factory programme targets all production facilities, aiming for near-zero environmental impact by 2040, ahead of the group’s overall target for 2050. Renewable energy will power Group factories by 2030, with transparent annual public reporting. “Wherever we can, we push the needle forward,” says Dirk. “If we’re in control, let’s do what we can to drive the topic.”

A key differentiator, he adds, is the sequencing of sustainability initiatives ahead of mainstream business strategy. “Regenerative Plus was the first building block of the group strategy. A completely different way of doing it, really unique. Thanks to Oliver, we did it this way.”

Even in the face of market uncertainty and geopolitical turbulence, Volkswagen has committed to ‘staying the course.’ The future is clear: leadership, consistency and ambition are non-negotiable.

Building the future

Volkswagen Group foresees electrification as central to the future of mobility. “Electrification will be the future. I’m not criticising combustion, but EVs are quieter, easier to use, super convenient, cool in summer and heated in winter – the future will be electric,” Dirk says.

This electrification push is grounded in significant investment, with new models for European and US markets and development of brands like Scout set to deliver electric engines with extended battery ranges suitable for diverse terrains.

“There will be combustion engines as well, because consumers sometimes want them,” Dirk explains. “Over time, electrification will find its way because it’s more efficient and the way to go. We’re developing a lot of new models.”

Sustainability driving value

VW’s sustainability philosophy has evolved from merely minimising harm, to actively regenerating value and becoming nature and society positive. Success is measured not only in lower emissions and restored biodiversity, but in human engagement, innovation and resilience.

“Our strategy follows a North Star, it’s embedded in the Group strategy,” Dirk says. “Wherever we can, we try to bend the curve. With Zero Impact Factory, we are ten years ahead of the curve. But it has to make business sense.

“Sustainability is an incredibly important business and value driver.”