Implementing Zero Impact Factories in Volkswagen’s Global Automotive Manufacturing System: A Discussion of Opportunities and Challenges from Integrating Current Science into Strategic Management

Abstract

The current exceeding of six out of nine planetary boundaries requires a significant transition of human societies towards absolute sustainability. Industrial manufacturing systems were and still are an important motor for socio-economic development but at the cost of a significant negative impact on the biosphere. Current concepts in absolute sustainability and sustainable manufacturing provide solutions for sustainability transitions in industry, but various methodological, technical and procedural challenges arise during their adaptation in industrial practice. The development and operationalization of a “zero impact factory” strategy by Volkswagen Group has identified various implementational challenges, which are discussed in this article. First, an overview of motivations for “zero impact” transformations in industry are pointed out. Second, relevant aspects for the strategic management of sustainability transitions in manufacturing companies are highlighted based on a literature analysis. Third, the strategy development process is explained based on a systematic structure, which includes design-thinking principles for sustainability transitions of large technical systems such as factories in global manufacturing systems. Fourth, the developed strategy content is presented, including (1) the strategy vision, (2) the defined quantified “zero impact” goals, (3) a system model and a prototype of a zero impact factory, (4) the developed “Impact Points” and the “Site Checklist” methods (for evaluating the environmental transformation of a factory) and (5) the definition of processes for strategic management during strategy operationalization. Finally, various organizational challenges and opportunities are pointed out, which are considered novel insights from industrial practice and relevant for the science-based strategic management within automotive companies and other global industrial manufacturing organizations, as well for advancing sustainability concepts in applied industrial science.