192 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Sustainability Statement European level. From the BMW Group’s perspective, switching to emission-free mobility calls for a holistic framework. An approach that is open to technology with a diverse range of low- and zero- emission drive options will also ensure that the Company is stra- tegically resilient. Focusing on a single technology, with its indi- vidual limitations, creates geopolitical dependencies and could lead to bottlenecks, for example, in critical raw materials, which could delay the transition to electromobility. Climate and energy policy In the transport sector, a swift transition to electromobility in new vehicles is an important prerequisite on the road to achieving cli- mate neutrality. The BMW Group is also pursuing a clear course of reducing CO2e emissions holistically and across the entire value chain of its vehicles, and is committed to meeting the cli- mate targets set out in the Paris Agreement. In this context, the BMW Group is in dialogue with the German Bundestag and the German government with the aim to reduce CO2e emissions from the implementation of the Renewable Energy Directive III (RED III) in Germany. The measures are intended to help reduce CO2e in the energy sector (including electricity, hydrogen and combus- tion fuels) and achieve an effective reduction in overall sector emissions. To reduce the CO2e footprint of energy-intensive ma- terials, setting national and multinational CO2e limits and corre- sponding trading systems, for example, could serve as key in- struments for achieving a long-term decarbonisation goal across all industries. Furthermore, the BMW Group is committed to reliable recording of CO2e footprints based on real data and supports the ongoing international scientific and political discussions on effective car- bon accounting. The Catena-X automotive data space is devel- oping standardised global calculation methods and exchange formats for CO2e emissions. This is in keeping with the oppor- tunity defined for the BMW Group to report comparable emis- sions along the actual supply chain in order to better identify ar- eas with potential for reduction and to work with suppliers to de- fine targeted reduction measures. Based on its strategic focus on the circular economy, the BMW Group is committed to an efficient legal framework for the circular economy. The goal is to ensure high-quality recycling of end-of-life vehicles and the supply of suitable recycled materials for use in new vehicles. In this context, the BMW Group is not convinced of the merits of statutory requirements governing the use of recycled material or inefficient dismantling regulations. The circular economy needs to help boost competitiveness. For this reason, the focus needs to be on innovating the automation of recycling technologies. The BMW Group operates its own Re- cycling and Dismantling centre (RDC) near Munich for this pur- pose. Experience gained here in vehicle recycling is passed on directly to the development team. In addition, a number of pro- jects are under way to promote the use of recycled materials in vehicles. The BMW Group puts forward these proposals to the government ministries of the Federal Republic of Germany and at the European level. Urban mobility The increase in urban population is not only causing a housing shortage, but also traffic congestion. As a result, many cities and municipalities have introduced individual regulations and, to an increasing extent, bans as a means of controlling traffic. The BMW Group's goal is to work with cities and local authorities to develop and implement joint solutions that address the issue of increasing traffic volumes and related emissions. For example, the BMW Group has regularly piloted a number of projects with its partner city Rotterdam that increase the electrified driving range of plug-in vehicles, thereby reducing their CO2e emissions. The BMW eDrive Zones project has now been rolled out in more than 150 cities. There is a great deal of potential to be found in partnerships between cities, mobility service providers and vehi- cle manufacturers. In this context, the focus is on two key areas: measures to boost electromobility, such as the installation and expansion of charging infrastructure or the creation of eDrive zones where plug-in hybrids automatically switch to electric drive, and traffic management measures to maintain traffic flow. With regard to the German Act on Electromobility Infrastructure in Buildings (GEIG), the BMW Group is committed to a more am- bitious transposition in Germany of the EU requirements on equipping car parks with charging points. The availability of suf- ficient charging infrastructure at home, work, when shopping and around public facilities is the basis for ramping up electromobility. Geopolitics, trade and industrial policy The BMW Group is committed to cooperating with political stake- holders at the global level to promote free trade and unrestricted market access. This includes, among other things, dialogue with associations, NGOs and suppliers. In addition, the BMW Group maintains a dialogue with legislators (e.g. governments, opposition parties, various parliamentary groups) to fulfil its global responsibility. In this context, the BMW Group is particularly committed to the reduction of tariffs and non-tariff barriers to trade as a means of utilising the bene- fits of international partnerships and interlinked value chains. This provides the Company with financial opportunities and com- petitive advantages through innovation, research and develop- ment. In the EU’s anti-subsidy proceedings against China, the BMW Group is calling for an open and rules-based trading sys- tem that ensures a level playing field for domestic and foreign companies. With this in mind, the BMW Group maintains a dia- logue with the European Commission, EU Member States, polit- ical groups in the European Parliament and industry associa- tions. Digital policy Digitalisation affects all areas of the mobility sector. We continu- ously offer our customers new ways to experience digital services and automated driving features. However, advances in digital technology have implications for our products: not only do they create more possibilities, but also challenges, such as in the area of cyber security, due to the increased connectivity of vehicles.