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Archives of Business Research – Vol. 12, No. 6
Publication Date: June 25, 2024
DOI:10.14738/abr.126.17176.
Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A.
de O., do Carvalho, F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies
and Their Impact on Sustainable Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen.
Archives of Business Research, 12(6). 69-82.
Services for Science and Education – United Kingdom
Analysis and Comparison of ESG Strategies and Their Impact on
Sustainable Development Goals (SDGs) in the Automotive
Industry: A Case Study of Renault and Volkswagen
Luiz Thiago do Sacramento Bezerra
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Zildomar Carvalho Santos
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Manoel Alcides Caminha Mendes de Oliveira
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Anderson Luiz Souza Moreira
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Paulo Maurício Gonçalves Junior
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
José Mário Alexandre Melo Oliveira
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Marco Antônio de Oliveira Domingues
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Fernando Ferreira do Carvalho
Cesar School, Recife, PE, Brasil
Erika Carlos Medeiros
Universidade de Pernambuco, Caruaru, PE, Brazil
Marília Regina Costa Castro Lyra
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
Rogéria Mendes do Nascimento
Instituto Federal de Pernambuco – IFPE, Recife, PE, Brazil
ABSTRACT
This study analyzes and compares the Environmental, Social, and Governance (ESG)
strategies adopted by Renault and Volkswagen, focusing on how these practices are
integrated into their global operations and their impact on the Sustainable
Development Goals (SDGs). Renault and Volkswagen demonstrate significant
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commitments to reducing CO2 emissions and promoting sustainable practices.
Renault focuses on expanding its electric vehicle lineup and improving energy
efficiency, while Volkswagen emphasizes the goal of 100% renewable energy usage
by 2025. Social initiatives include Renault's diversity and inclusion programs and
Volkswagen's community development efforts. Both companies maintain strong
governance systems to ensure transparency and ethics, aligning with various SDGs.
This analysis highlights the different approaches each automaker takes towards
achieving sustainability goals, reflecting their specific priorities and contexts
within the automotive industry.
Keywords: Sustainability, Automotive Industry, ESG Strategies, Sustainable Development
Goals.
INTRODUCTION
In recent years, sustainability has emerged as a strategic priority on corporate agendas
worldwide, significantly influencing the automotive industry. Manufacturers such as Renault
and Volkswagen have intensified their initiatives to incorporate sustainable practices that meet
Environmental, Social, and Governance (ESG) criteria. This focus reflects not only a response to
increasing regulatory pressures and consumer expectations but also a commitment to
innovation and socio-environmental responsibility [1] [2].
The relevance of ESG to the automotive industry is amplified by its ability to drive business
practices that mitigate adverse environmental impacts and promote ethical and transparent
corporate governance. With technological advancements and growing pressure to reduce
carbon emissions, automakers are compelled to rethink their production processes and adopt
new sustainable technologies. Leading companies such as Renault and Volkswagen have
pioneered the implementation of strategies that align their business objectives with
sustainability principles, demonstrating that responsible practices can coexist with economic
growth and technological innovation [3] [4].
The integration of ESG principles into automakers' operations is a direct response to changing
stakeholder expectations, demanding greater transparency and accountability in corporate
practices. This shift is evidenced by the increasing number of consumers and investors who
prefer companies with strong sustainability credentials. Volkswagen and Renault, for example,
have invested in electric vehicle technologies and improvements in the energy efficiency of
their factories as part of their ESG commitments. Such initiatives not only reduce environmental
impact but also strengthen brand image and enhance their competitiveness in the global market
[5] [6].
Furthermore, social responsibility, another crucial pillar of ESG, has led these companies to
invest in programs that benefit local communities, promote diversity and inclusion, and ensure
safe and fair working conditions. This reflects an understanding that sustainable corporate
success transcends financial performance to include positive social impacts (Barbieri, 2020).
ESG practices directly impact the United Nations' Sustainable Development Goals (SDGs),
aligning corporate actions with global sustainability targets [7].
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
General Objective
This article aims to analyze and compare the ESG strategies adopted by Renault and
Volkswagen, highlighting how these practices are integrated into their global operations and
how these actions impact the SDGs. Through this comparative analysis, the objective is to
understand the nuances and challenges faced by these automakers, as well as to assess the
effectiveness of their sustainability initiatives. Additionally, the study examines how the ESG
practices of these companies contribute to achieving the SDGs.
The structure of the paper includes a theoretical review of the concepts of ESG and SDGs, the
methodology for analyzing the companies' practices, a discussion of the results obtained, and
finally, concluding remarks that highlight the main findings, limitations of the study, and
recommendations for future research.
THEORETICAL REVIEW
The theoretical review of this study explores the concepts of ESG and the SDGs, and how these
concepts are applied in the automotive industry. The increasing relevance of ESG criteria
reflects the pressure for more sustainable and socially responsible business practices, while the
SDGs provide a global framework to guide and evaluate sustainability initiatives. The
combination of these two concepts is crucial for understanding how automakers Renault and
Volkswagen are integrating sustainability into their operations and contributing to global SDGs.
Environmental, Social, and Governance
The concept of ESG refers to a set of criteria used to measure the sustainability and social impact
of a company's operations. These criteria have become increasingly relevant for investors,
consumers, and regulators who seek to ensure that companies adopt responsible and
sustainable practices. The three dimensions of ESG are:
• Environmental: This dimension encompasses practices that reduce the environmental
impact of business operations. It includes carbon emission management, energy
efficiency, sustainable use of natural resources, and the implementation of eco-friendly
technologies. Effective environmental management not only contributes to
environmental preservation but can also result in significant cost savings and
technological innovation [8];
• Social: Involves practices that positively affect employees, local communities, and other
stakeholders. This includes promoting diversity and inclusion, ensuring safe and healthy
working conditions, community development, and respecting human rights. Strong
social practices can improve employee morale, increase customer loyalty, and enhance
the company’s reputation [9];
• Governance: Refers to management practices that ensure transparency, accountability,
and ethics in corporate operations. It includes the structure of the board of directors,
compliance policies, business ethics, and relations with stakeholders. Strong governance
is essential to prevent fraud, ensure regulatory compliance, and foster investor
confidence [2].
Environmental, Social, and Governance
The SDGs were established by the United Nations (UN) as part of the 2030 Agenda, aiming to
promote peace, justice, and global prosperity while protecting the planet. The SDGs encompass
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a wide range of social, economic, and environmental issues and are often used as a framework
to guide and evaluate companies' sustainability practices [1].
Integrating the SDGs into corporate ESG strategies is essential to ensure that business actions
contribute to global sustainable development. Among the 17 SDGs, some are particularly
relevant to the automotive industry, including [10]:
• SDG 3 (Good Health and Well-Being): The automotive industry can contribute to this
goal by developing safer vehicles, reducing traffic accidents, and improving air quality;
• SDG 7 (Affordable and Clean Energy): Promoting the use of sustainable and affordable
energy, especially with the increased production of electric vehicles and energy
efficiency in factories;
• SDG 8 (Decent Work and Economic Growth): Ensuring fair working conditions and
promoting sustainable economic growth by enhancing corporate social responsibility;
• SDG 9 (Industry, Innovation, and Infrastructure): The automotive industry can lead
technological innovations and sustainable industrial processes;
• SDG 11 (Sustainable Cities and Communities): Developing sustainable
transportation systems, such as electric and autonomous vehicles, which reduce urban
pollution and improve mobility.
• SDG 12 (Responsible Consumption and Production): Implementing sustainable
production practices and promoting the recycling and reuse of automotive materials;
• SDG 13 (Climate Action): Reducing carbon emissions and mitigating the effects of
climate change, as the automotive industry is one of the largest contributors to global
greenhouse gas emissions;
• SDG 17 (Partnerships for the Goals): The automotive industry can form partnerships
to promote sustainability across the value chain and collaborate with governments and
other stakeholders to achieve the SDGs.
These SDGs are all highly relevant to the automotive industry and provide a framework for
evaluating and guiding sustainability initiatives within the sector.
ESG and SDGs in the Automotive Industry
The adoption of ESG practices in the automotive industry has shown significant impacts on
company operations and reputations.
Environmental initiatives such as the development of electric and hybrid vehicles, reduction
of carbon emissions, and sustainable sourcing of materials have not only decreased the
environmental footprint of automotive companies but also aligned them with global efforts to
combat climate change [11]. According to KPMG [11], companies investing in green
technologies and sustainable practices achieve better environmental performance and
regulatory compliance, enhancing their market positioning and brand image.
Social practices including fair labor policies, diversity and inclusion initiatives, and community
engagement have improved employee satisfaction and retention, fostering a positive workplace
culture. Studies by Deloitte [12] indicate that companies implementing comprehensive
diversity programs and engaging in community development projects benefit from increased
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
employee morale and customer loyalty, ultimately contributing to better business
performance.
Governance practices that ensure transparency, ethical behavior, and accountability have
strengthened investor confidence and reduced risks associated with corporate scandals.
Research by McKinsey & Company [13] highlights that robust governance frameworks
emphasizing ethical conduct, compliance, and stakeholder engagement lead to higher
corporate governance ratings and increased investor trust.
Overall, the integration of ESG principles into the core strategies of automotive companies not
only addresses regulatory and societal pressures but also creates long-term value by fostering
innovation, building trust, and ensuring sustainable growth [14].
METHODOLOGY
This study adopts a qualitative and comparative approach to explore how automakers Renault
and Volkswagen integrate ESG practices into their operations. The focus is on identifying,
analyzing, and comparing the specific sustainability strategies reported in their corporate
publications. The choice of this methodology is due to the complex and multidimensional
nature of ESG practices, which involve social, environmental, and governance aspects that are
best explored through detailed qualitative analysis.
Data Source
The main data for this study were collected from the annual sustainability reports published by
the companies, available on their official websites:
• Volkswagen Financial Services Brasil Sustainability Report 2022 [5]
• Renault do Brasil Sustainability Report 2022 [6]
These documents were chosen as primary sources providing authentic data on the companies'
sustainability policies, practices, and outcomes.
Data Collection Method
Data collection was conducted following the steps described below:
1. Download of Sustainability Reports: Access the automakers' official websites to
download the 2022 sustainability reports;
2. Documentary Review: Detailed reading of the reports to extract information related to
sustainability and ESG practices;
3. Data Organization: Categorization of data into ESG categories to facilitate comparative
analysis.
Data Analysis
The data analysis was conducted using the following techniques:
Content Analysis:
Content analysis was employed to investigate the sustainability reports of Renault and
Volkswagen in a systematic qualitative approach, focusing on identifying and coding recurring
themes related to ESG practices. This process was structured into several stages to ensure a
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comprehensive understanding of the information contained in the documents. Initially, a
detailed reading of the reports was performed to familiarize with the content and identify key
topics related to ESG. Based on this preliminary reading, specific thematic categories such as
"environmental management," "social responsibility," and "corporate governance" were
developed, serving as the basis for subsequent data coding. Utilizing open coding method, all
relevant excerpts from the reports that aligned with the predefined categories were marked
and organized. This coding phase allowed for data aggregation to facilitate the identification of
common themes and emerging patterns.
Following coding, a qualitative analysis was conducted to explore the frequency and depth with
which each theme was addressed in the reports. This involved quantifying the frequency of
themes to determine which aspects of ESG received more attention from the automakers, as
well as qualitatively assessing how these themes were addressed in terms of depth of
discussion and integration into the companies' sustainability strategies. This content analysis
method followed guidelines as described by Krippendorff [8] and Neuendorf [9], which provide
detailed instructions on conducting systematic and interpretive content analysis across various
types of communications.
Thematic Comparison:
After coding and analyzing ESG themes in the sustainability reports of Renault and Volkswagen,
a thematic comparison was conducted. This step aimed to highlight both similarities and
differences in the sustainability approaches adopted by the two automakers. Using a
comparative matrix, identified themes were aligned side by side to facilitate visualization of
common patterns and specific variations between the companies. Each ESG category was
analyzed:
• Environmental: Examination of how each company addresses emissions management,
energy efficiency, use of sustainable materials, and innovation in eco-friendly products.
• Social: Analysis of diversity and inclusion policies, community programs, and employee
welfare practices.
• Governance: Comparison of governance structures, transparency in communications,
and stakeholder engagement.
Significant differences, such as variations in the intensity with which practices are reported or
clarity of sustainability goals, were noted. Similarities were used to highlight industry trends or
standard ESG practices adopted by major automakers.
Contextual Interpretation:
Contextual interpretation involved integrating the results of the report analysis into the
broader context of the automotive industry and global sustainability standards. This phase was
crucial for evaluating the effectiveness and real impact of the sustainability practices reported
by the automakers. The analysis considered issues such as the alignment of ESG practices with
the goals of the Paris Agreement and United Nations (UN) SDGs, and emerging environmental
regulations affecting the automotive industry.
This dive into thematic comparison and contextual interpretation provides a detailed, and
contextually relevant analysis of the ESG strategies implemented by Renault and Volkswagen,
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
enabling understanding of the dynamics and effectiveness of sustainability practices in the
automotive industry.
Evaluation Criteria
ESG evaluation criteria were based on specific criteria:
• Alignment with Global Objectives: Assessing how companies' practices align with the UN
SDGs;
• Reported Impact: Analyzing the environmental, social, and governance impacts
reported by companies, considering both positive outcomes and challenges and
limitations;
• Innovation and Engagement: Examining the degree of innovation in ESG practices and
engagement with stakeholders, including consumers, local communities, and investors.
Ethical Considerations
This study adhered to ethical principles, ensuring that all information collected from public
reports is used responsibly and cited appropriately. The analyses and conclusions will be
strictly based on the collected data, maintaining an objective and impartial perspective.
RESULTS AND DISCUSSIONS
In this section, the results of the analysis of the sustainability reports of the automakers Renault
and Volkswagen are presented, focusing on ESG practices. The analysis allowed us to
understand how these companies are integrating sustainability principles into their operations
and the impacts of these practices in terms of environmental, social, and governance aspects.
Furthermore, this section discusses the linkage of these practices with the UN's SDGs,
highlighting the strategies adopted by the automakers to meet these global targets. The
identified challenges and opportunities are also addressed, providing a comprehensive view of
the sustainability dynamics in the automotive industry.
Renault do Brasil states that by publishing the Annual Sustainability Report for the 13th
consecutive year, the company reinforces its commitment to cultivating a transparent and
positive relationship with all stakeholders. The ESG aspects addressed report the
organization's performance concerning environmental, social, and governance topics covering
the period from January 1, 2022, to December 31, 2022 [6].
Similarly, Volkswagen do Brasil states that by publishing the 11th edition of the Sustainability
Yearbook, the ESG aspects and their performance portray the company from January 1 to
December 31, 2022. Occasionally, the document highlights facts from the first quarter of 2023,
as they are tied to the previous cycle [5].
The methodology used by both companies for documenting records in their annual reports
follows the GRI (Global Reporting Initiative) Standards [15], which is a global reference for
sustainability reports. Based on the data, there was a synergy between the main subjects
mapped by the companies, considered as sensitive topics of social, environmental, and
economic impacts from the perspective of the companies and stakeholders.
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Figure 1: Evolution of CO2 Emissions – Volkswagen
Figure 1 illustrates the evolution of CO2 emissions for Volkswagen of Brazil from 2020 to 2022.
The graph shows a clear downward trend in both Scope 1 and Scope 2 emissions over the three- year period. Specifically, Scope 1 emissions, which include direct emissions from owned or
controlled sources, decreased from 1,000 tons in 2020 to 900 tons in 2022. Similarly, Scope 2
emissions, which cover indirect emissions from the generation of purchased electricity, heat,
or steam, reduced from 2,000 tons in 2020 to 1,800 tons in 2022. This reduction reflects
Volkswagen Financial Services Brazil's efforts to enhance energy efficiency and transition
towards more sustainable energy sources, aligning with their commitment to environmental
sustainability and carbon neutrality goals.
Figure 2 illustrates the direct greenhouse gas emissions (Scope 1) from Renault from 2017 to
2022. The graph shows the emissions from various sources, including electricity, heat or steam
generation, other combustion processes, transport of materials, products, waste, employees
and passengers, and fugitive emissions. The total Scope 1 emissions have fluctuated over the
years, starting at 25,965 tons of CO2 in 2017 and reaching 23,790 tons of CO2 in 2022. Notably,
emissions from electricity, heat or steam generation constitute the largest share of total
emissions each year, although there is a visible reduction from 20,716 tons in 2019 to 16,792
tons in 2020, before increasing again to 20,095 tons in 2022. Emissions from other combustion
processes, transport, and fugitive emissions show minor variations over the years. This data
reflects Renault's ongoing efforts to manage and reduce its direct CO2 emissions, despite some
fluctuations.
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
Figure 2: Direct Greenhouse Gas Emissions (Scope 1) – Renault
Both automakers demonstrate a strong commitment to reducing environmental impacts.
Volkswagen and Renault highlighted the reduction of CO2 emissions in its operations and
products, illustrated in Figure 1 and Figure 2, aligning its goals with the Paris Agreement to
combat climate change (SDG 13).
Figure 3: Progress in Renewable Energy Usage - Volkswagen
Figure 3 illustrates the progress of Volkswagen Financial Services Brazil towards achieving
100% renewable energy usage by 2025. The graph shows a steady increase in the proportion
of renewable energy from 10% in 2020 to a projected 100% by 2025. This reflects the
company's commitment to optimizing energy consumption and transitioning away from fossil
fuels. Implementing various programs and initiatives, Volkswagen Financial Services Brazil
aims to significantly reduce its carbon footprint and contribute to sustainable environmental
practices.
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Figure 4: Waste Management – Renault
Figure 4 illustrates the waste management practices of Renault, highlighting the quantities of
various materials recycled in 2022. The chart shows that the largest amount of recycled
material was Paint Sludge, with 470.74 tons, followed by Emulsion Disposal at 407.00 tons and
General Packaging at 198.46 tons. Other significant categories include Construction Debris
(94.79 tons), Plastic Cups (51.05 tons), and Batteries (60.06 tons). Smaller quantities were
observed for Phosphate Sludge (17.60 tons), Styrofoam (17.83 tons), and Lamps (40.34 tons).
These figures underscore Renault's commitment to sustainable waste management practices,
focusing on recycling and reusing materials to minimize environmental impact.
Volkswagen's report [5] mentions that the company intends to be carbon neutral by 2030,
covering scopes 1, 2, and 3 of emissions[16]. Renault focused on increasing energy efficiency
and expanding its electric vehicle lineup, such as the Kwid E-Tech model, directly reflecting on
SDG 7 (Affordable and Clean Energy) and 13 (Climate Action).
In the social aspect, Renault highlighted initiatives to improve diversity and inclusion within
the company, contributing to SDGs 5 (Gender Equality) and 8 (Decent Work and Economic
Growth). These initiatives include specific programs to increase female representation in
leadership positions and actions to promote pay equity. Volkswagen highlighted community
development and education programs aimed at improving the quality of life in the communities
where the company operates, aligning with SDGs 4 (Quality Education), 5 (Gender Equality), 8
(Decent Work and Economic Growth), and 10 (Reduced Inequalities).
In terms of governance, both companies emphasized the importance of transparency and
business ethics. Renault described its approach to ensuring integrity in all operations,
implementing robust compliance and internal audit systems. Volkswagen detailed its
compliance and ethics system, strengthening SDG 16 (Peace, Justice, and Strong Institutions).
The governance structures of these companies are exemplary, with dedicated committees to
continuously and integratively review and implement ESG practices.
Additionally, the comparative analysis revealed that while both companies are aligned with the
SDGs, Renault has a stronger focus on energy efficiency initiatives and the expansion of electric
vehicles, whereas Volkswagen is more focused on community development and education
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
programs. This demonstrates how ESG strategies can vary significantly even among companies
in the same sector, reflecting their specific priorities and contexts.
Figure 5 provides a comparative analysis of the ESG strategies adopted by Renault and
Volkswagen based on their 2022 sustainability reports. The percentages depicted in the graph
represent the relative emphasis each company places on these three categories, reflecting the
breadth and depth of their initiatives.
Renault demonstrates a slightly higher focus on environmental practices compared to
Volkswagen, as indicated by the higher percentage. This is largely attributed to Renault's
aggressive efforts in reducing CO2 emissions, particularly through its electric vehicle lineup and
initiatives aimed at energy efficiency. Renault's extensive waste management program, which
includes significant recycling efforts of materials such as paint sludge and emulsion disposal,
also underscores its commitment to environmental sustainability. In contrast, Volkswagen
shows a strong commitment to environmental sustainability with its ambitious goal to achieve
100% renewable energy usage by 2025 and its notable reduction in CO2 emissions over the
past few years. This alignment with the Paris Agreement and the SDG 13 (Climate Action) is
evident in their substantial investments in clean energy and emission reduction technologies.
Figure 5: Comparison of ESG Strategies
Volkswagen surpasses Renault in social initiatives, reflecting a broader range of community and
employee-focused programs. Volkswagen's significant investment in community development
and education programs is aimed at improving the quality of life and education in the regions
where they operate, aligning with SDGs 4 (Quality Education), 8 (Decent Work and Economic
Growth), and 10 (Reduced Inequalities). Renault, while also committed to social responsibility,
places a strong emphasis on diversity and inclusion within the workplace, particularly in
increasing female representation in leadership roles and promoting pay equity, which supports
SDGs 5 (Gender Equality) and 8 (Decent Work and Economic Growth).
Both companies exhibit a robust commitment to governance, with an equal emphasis on
transparency, compliance, and ethical business practices. Renault's governance strategy
includes comprehensive compliance and internal audit systems designed to ensure integrity
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and accountability across all operations. Similarly, Volkswagen's detailed compliance and ethics
system strengthens SDG 16 (Peace, Justice, and Strong Institutions), showcasing their
dedication to maintaining high standards of corporate governance. The governance structures
of both companies feature dedicated committees that continuously review and enhance their
ESG practices, demonstrating a clear commitment to ethical conduct and stakeholder
engagement.
This comparative analysis highlights how Renault and Volkswagen, while operating in the same
industry, adopt distinct approaches to integrating ESG principles into their business strategies.
Renault's focus is more inclined towards environmental sustainability and internal social
equity, whereas Volkswagen places significant emphasis on broader social impact and
community engagement. Together, these strategies illustrate the diverse pathways automotive
companies can take to contribute to global sustainability goals.
Table 1 summarizes the main impacts of the ESG practices of the automakers Renault and
Volkswagen concerning the SDGs. Through these initiatives, the companies demonstrate a
varied commitment to sustainability, addressing different aspects of the SDGs according to their
strategies and priorities.
Table 1: Impact of ESG Practices on the SDGs
ODS CATEGORIA RENAULT VOLKSWAGEN
ODS 4 SOCIAL - Education and quality
ODS 5 SOCIAL Diversity and inclusion Women in leadership
ODS 7 ENVIRONMENTAL Energy efficiency and electric vehicles Renewable energy
ODS 8 SOCIAL Decent work Community development
ODS 10 SOCIAL - Reducing inequalities
ODS 13 ENVIRONMENTAL Emission reduction Emission reduction
Use of renewable energy
ODS 16 GOVERNANCE Transparency and ethics Compliance and ethics
CONCLUSIONS
The analysis of the sustainability reports of Renault and Volkswagen highlights the significant
efforts both automakers are making to integrate ESG practices into their operations. Renault
has shown a strong commitment to energy efficiency and the expansion of its electric vehicle
lineup, reflecting its alignment with SDGs 7 (Affordable and Clean Energy) and 13 (Climate
Action). In addition, Renault's initiatives to improve diversity and inclusion within the company
contribute to SDGs 5 (Gender Equality) and 8 (Decent Work and Economic Growth). On the
other hand, Volkswagen has demonstrated a clear focus on community development and
education programs, aligning with SDGs 4 (Quality Education), 5 (Gender Equality), 8 (Decent
Work and Economic Growth), and 10 (Reduced Inequalities). Both companies have robust
governance structures that emphasize transparency and business ethics, supporting SDG 16
(Peace, Justice, and Strong Institutions).
The comparative analysis revealed that while both companies are committed to sustainability,
their strategies differ significantly. Renault's stronger focus on energy efficiency and electric
vehicles contrasts with Volkswagen's emphasis on community development and education.
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Bezerra, L. T. do S., Santos, Z. C., de Oliveira, M. A. C. M., Moreira, A. L. S., Junior, P. M. G., Oliveira, J. M. A. M., Domingues, M. A. de O., do Carvalho,
F. F., Medeiros, E. C., Lyra, M. R. C. C., & do Nascimento, R. M. (2024). Analysis and Comparison of ESG Strategies and Their Impact on Sustainable
Development Goals (SDGs) in the Automotive Industry: A Case Study of Renault and Volkswagen. Archives of Business Research, 12(6). 69-82.
URL: http://doi.org/10.14738/abr.126.17176
These differences highlight the diverse approaches within the automotive industry toward
achieving sustainability goals.
While this study provides valuable insights into the ESG practices of Renault and Volkswagen,
it has several limitations. Firstly, the analysis is based on publicly available sustainability
reports, which may not capture all aspects of the companies' ESG strategies and performance.
Secondly, the study focuses on two automakers, limiting the generalizability of the findings to
the broader automotive industry. Thirdly, the analysis is retrospective, primarily covering the
period up to 2022, and may not fully reflect recent developments or future plans. Lastly, the
assessment relies on the accuracy and completeness of the data reported by the companies,
which can be subject to biases and reporting inconsistencies.
Future research should aim to address these limitations by expanding the scope of the analysis
to include a larger sample of automakers and other industries. Longitudinal studies that track
the evolution of ESG practices over time can provide deeper insights into the effectiveness and
impact of these initiatives. Additionally, incorporating qualitative methods, such as interviews
with key stakeholders, can enrich the understanding of the challenges and opportunities
associated with implementing ESG practices. Further research could also explore the financial
performance implications of ESG strategies, providing a more comprehensive view of the
business case for sustainability.
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