BMW Group, Petuelring 130, D-80788 München, Germany
Tel: +49 (0)89-382-0
- CDP A rating
- FTSE4good Index
- Dow Jones Sustainability Index
- #23 World’s Best Employers 2020
- #117 best employers for new grads 2020
- #27 Worlds most valuable brands 2020
- #75 Global 2000 2020
CHIEF SUSTAINABILITY OFFICER
Report created by Cec Ehrhard
The BMW Group is the world’s leading premium manufacturer of automobiles and motorcycles. The BMW Group also provides premium financial and mobility services. As a global company, the BMW Group operates 30 production and assembly facilities in 14 countries, and has a global sales network in more than 140 countries.
As the world’s leading premium manufacturer of automobiles, the BMW Group operates through the following business segments: automotive, motorcycles, financial services, along with other entities.
- The automotive segment develops, manufactures, assembles, and sells cars and off-road vehicles, under the following brands: BMW, MINI, and Rolls-Royce, as well as spare parts and accessories
- The motorcycles segment focuses on the premium segment
- The financial services segment offers credit financing, leasing and other services to retail customers
- The other entities segment includes holding and group financing activities
The BMW Group sets trends in technology and sustainability with an intelligent material mix: a technological shift towards digitalisation and resource-efficient production.
Company Sustainability Activity
The BMW Group aspires to be the most successful and sustainable premium producer for individual mobility. It is their clear intention to establish an increasing number of solutions for greater sustainability. To achieve this, the group has set ambitious goals that have a decisive impact on their day-to-day activities. Their focus includes:
- Sustainable cities and communities
- Production and value-added chain
- In 2019, reduced emissions lower than 42.4%, lower than in 1995
- In 2019, waste reduced by 78.4%, solvents reduced 66.1%, energy reduced 40.4%, water reduced 28.8%
- European plants are 100% renewable energy
- In 2019, 504,369 total electrified vehicles, 270,000 public charging points
- In 2019, they continued to expand their use of renewable energy to 87 % (2018: 79 %)
- BMW plans to meet Europe’s CO2 requirements for 2020 and 2021
- From 2020, supply all production plants worldwide exclusively with electricity from renewable sources
- By 2025, BMW plans to offer 25 electrified models, of which twelve will be purely electric
- By 2020, BMW will reduce CO2 emissions in the European vehicle fleet (EU-28) by at least 50% compared to the base year 1995
- Inspire more customers to drive electric vehicles and plug-in hybrids
- A quarter of the vehicles BMW sold in Europe should be electrified by 2021 (a third in 2025 and a half in 2030)
Sustainable, resource-efficient supply chain
- By 2020, the BMW Group will have significantly increased supply chain transparency and resource efficiency
- In 2019, BMW delivered more than 146,000 electric vehicles and plug-in hybrids to customers worldwide
- In 2018, the BMW Group delivered 142,617 electrified vehicles (2017: 103,080), thus confirming its leading role in electromobility
- Offered more low-emission electrified models
- Launched the fully electric battery model (BEV) BMWi3 in 2013
- Launched the plug-in hybrid model (PHEV) BMWi in 2014.
- In addition to the BMWi vehicles, they have six BMW PHEV models and a MINI plug-in hybrid that is offered worldwide
- In recent years, the group has steadily reduced CO2 emissions from vehicles by 40% between 1990 and 2019
- The BMW Group reduced CO2 emissions of its newly sold vehicles in Europe by roughly 42% between 1995 and 2018 (2017: 42%)
United Nations Sustainable Development Goals
United Nations SDGs Compliance
This analysis is based on BMW’s parent company, BMW Group
- To preserve the health and the performance of its employees in the long term, the BMW Group will promote a culture of personal responsibility and ensure an appropriately designed work environment.
- The BMW Group develops education projects at its locations that facilitate young people’s first steps into the labour market and offer them better life prospects. The group designs the program around the specific needs and requirements of each location.
- In 2019, the BMW Group continued to implement education program in the USA, Thailand, India, Brazil, Mexico, China, South Korea, and Germany.
- The global reach of the BMW Group is also reflected in the diversity of its workforce.
- The proportion of women in management positions (17.5 %) is above the self-imposed target range.
- By 2018, the group’s European plants were already powered by 100% renewable energy or offsets were made to this effect. In 2020, they are aiming to reach this figure for all their plants worldwide.
- The BMW Group fosters a culture in which diversity is seen as a strength. With workshops, talks and dialogue formats, the group raises awareness among their employees and managers for a range of diversity-related aspects.
- BMW looks to strengthen the recruitment and human resources development to foster diversity and equal opportunity throughout the company.
- BMW has made sustainability an integral part of their procurement process and an essential purchasing criterion since 2014. Their sustainability requirements apply to all suppliers of production materials as well as service providers.
Secondary SDGs: 6, 8, 9, 11, 13, 17
BMW works in the transport and automobile manufacturing industry, which has a large impact on the environment through emissions, manufacturing, and customer product use.
BMW has made positive steps in sustainability by integrating sustainability into all aspects of the company. They have been manufacturing electric and energy-efficient cars more rapidly than ever in the past year. The company still has a ways to go to become 100% sustainable, but BMW has made good progress and has certificates to prove it. They have been given a “C” rating.
Analyst Outlook: Positive
Despite being in the transport and automobile manufacturing industry, BMW has made progress in its reporting and transparency of sustainable activities. In addition, they provide clear KPIs and specific targets within their Sustainable Value Report.
- The BMW Group Sustainable Value Report (SVR) 2019 has been published to provide stakeholders and consumers with comprehensive information about the company’s sustainability strategy and progress
- As part of a specific working group of the German Association of the Automotive Industry (VDA), the BMW Group helped develop a standardised assessment protocol on labour and social standards.
- BMW uses the following frameworks: Global Reporting Initiative (GRI), Organisation for Economic Cooperation and Development (OECD), Task Force for Climate-Related, U.N. SDGs, U.N. Global Compact, United Nations Environment Programme’s (UNEP) International Declaration on Cleaner Production, UN Guiding Principles on Business and Human Rights, and ICC Business Charter for Sustainable Development.
- BMW cut energy use per vehicle produced by 40% since 2006
- BMW cut CO2 emissions by 70% since 2006
- BMW switched to 100% renewable electricity at all production facilities
- BMW cut CO2 emissions from vehicles sold in Europe by ~42% between 1995 and 2019.