To what extent is Volkswagen affected by the jab from Union Investment? At first, not much. The credit union's fund provider has stated it no longer wishes to invest in Volkswagen through sustainable funds.

The fund address has, in any case, almost completed its withdrawal: Company-wide, reportedly only about 1 million euros are invested in VW shares, including conventional funds. The "Uni Nachhaltig Aktien Deutschland" fund, worth 891 million euros, sold all its shares in the half-year until the end of September. Volkswagen bonds in the company's sustainable funds amount to a double-digit million sum, as was revealed on Thursday. Nonetheless, this is not much.

More painful than the formal exclusion is the news itself. Union Investment reacted to a report in the "Handelsblatt": As per the account, there are indications that Uyghurs were used as forced labourers in the construction of a test track in the western Chinese region of Xinjiang several years ago. According to "Handelsblatt", Volkswagen had the test track built with the Chinese vehicle manufacturer SAIC. Media reports are already increasing that Volkswagen is considering withdrawing from the region. The communist dictatorship is known for its massive suppression of the Muslim-majority people.

In May, Union Investment had already called on the automaker to have the activity in Xinjiang scrutinized by external and independent auditors. But an investigation at the plant in Urumqi, China, found no evidence of forced labour. The fund industry is divided: The Deka Group considers Volkswagen unsuitable for public funds with sustainability features. The DWS generalizes its stance: Assessing whether norms have been violated is "multi-layered, complex, and subjective".

Union Investment, however, remains active as an investor. This raises questions about how seriously the company considers the accusations. More important may be how much fund providers insist on due diligence obligations beyond green investment – not just with Volkswagen.