Press Release

Braunschweig, 31 August 2023. Volkswagen Financial Services AG (VW FS AG) has today published its first "Green Finance Framework". The framework supports the current sustainability strategy of the automotive financial and mobility services provider with regard to its refinancing and thereby enables the company to tap into and develop a new investor base. The "Green Finance Framework" covers all refinancing products of Volkswagen Financial Services AG, including traditional bonds, asset-backed securities (ABS), credit lines, commercial paper, and promissory note loans. The funds generated under the framework will be used exclusively to refinance credit and leasing contracts for battery electric vehicles (BEVs). An internal committee of specialists, the Green Finance Committee, will oversee compliance with the rules and requirements set out in the Green Finance Framework.

Frank Fiedler, CFO of Volkswagen Financial Services AG, stated: "The first Green Finance Framework from VW FS AG enables us to place sustainable refinancing instruments on the capital market. This means that the theme of sustainability, as a core element of our MOBILITY2030 strategy, is also being given appropriate weight in our strategic refinancing mix. At the same time, we are supporting the sales of electric vehicles from the Volkswagen Group."

In May 2023, the sustainability activities of Volkswagen Financial Services were recognized by an external audit of sustainability risks that was carried out for the first time. Sustainalytics, a leading ESG research firm and rating institute, listed Volkswagen Financial Services among the top three percent of all the companies it rated in the industry worldwide, whereby a total of over 200 banks and financial services institutions were assessed.

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Volkswagen Financial Services are a business division of the Volkswagen AG group of companies and comprise Volkswagen Financial Services AG along with its associated companies, Volkswagen Bank GmbH, Porsche Financial Services, and the financial services companies in the USA and Canada that belong directly or indirectly to Volkswagen AG – with the exception of the financial service business of the Scania brand and of Porsche Holding Salzburg. The key business fields embrace dealer and customer financing, leasing, bank and insurance activities, fleet management and mobility services. Volkswagen Financial Services have a total of 17,713 employees worldwide – including 7,692 alone in Germany. Volkswagen Financial Services report total assets of around EUR 240 billion, an operating profit of EUR 5.60 billion, and a portfolio of around 22.0 million current contracts (as at: 31.12.2022).