Volkswagen shareholders demand more scrutiny after Xinjiang audit
BERLIN (Reuters) -Volkswagen must provide more transparency in its value chain and ensure its China operations are regularly reviewed, two of the carmaker's investors said on Wednesday, after an audit of its jointly owned Xinjiang site found no sign of forced labour.
The comments by Union Investment and Deka Investment reflect ongoing concern over Volkswagen (ETR:VOWG_p)'s engagement in the Xinjiang region, where rights groups have documented abuses including forced labour in detention camps.
Beijing denies any such abuses.
Volkswagen late on Tuesday said that the much-anticipated audit, carried out by Germany's Loening Human Rights & Responsible Business GmbH and two Chinese lawyers from a firm in Shenzhen, had provided no evidence of forced labour.
While calling the audit a step in the right direction, Henrik Pontzen, who heads sustainability and ESG at Union Investment, said Volkswagen had not yet reached its goal.
«There is still a lot to do: In China, audits must not remain a one-off exercise. A functioning complaints management system must also be established. The weak corporate governance at VW also remains an Achilles heel,» he said in a statement.
Welcoming the audit, Ingo Speich of Deka Investment, which according to LSEG data owns $99 million worth of Volkswagen's preferred stock, said more transparency was desirable regarding Volkswagen's supply chain.
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