95 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 GENERAL BASIS FOR PREPARATION OF THE SUSTAINABILITY STATEMENT This Sustainability Statement fulfils the requirements for the combined non-financial statement (NFS) in accordance with §§ 289b (1) and 315b (1) to 315c of the German Commercial Code (HGB). It therefore represents the Combined Non-financial Statement of the BMW Group and BMW AG. Unless stated oth- erwise, all information relates to both the BMW Group and BMW AG. We have adopted the delegated act outlined in Article 29b of Di- rective 2013/34/EU on sustainability reporting standards (the European Sustainability Reporting Standards [ESRS]) in full for the first time. Contrary to expectations, the ESRS are not cur- rently mandatory due to the fact that the Corporate Sustainability Reporting Directive was not adopted into German law by 31 De- cember 2024. Due to the future mandatory application, the ESRS are nevertheless already used as a framework for the NFE for the 2024 financial year on a voluntary basis. Because Group-level information is of relevance for our stake- holders, the NFS for BMW AG will not use a different framework. In principle, the policies, measures and targets described for the Group also apply to BMW AG. This Sustainability Statement also takes the following legal frameworks into account: — Taxonomy Regulation (Regulation (EU) 2020 /852 of the European Council and of the European Parliament on the Establishment of a Framework to Facilitate Sustainable In- vestment, and amending Regulation (EU) 2019 /2088) and its delegated acts — Book IX of the German Social Code: Rehabilitation and Par- ticipation of People with Disabilities (SGB IX) § 154 The Sustainability Statement also draws on the SASB standards published by the Sustainable Accounting Standards Board. They provide information about sector-specific disclosures. Footnotes are used to identify these disclosures as additional disclosures. An overview is available in the ↗ SASB Index. Some of the data points in this report refer to the 2021 GRI Standards of the Global Reporting Initiative (GRI). This Sustainability Statement is prepared on a consolidated ba- sis for the entire BMW Group. The Sustainability Statement co- vers all companies that are included in the reporting entity for the BMW Group’s Financial Statements. Subsidiaries are incorpo- rated in full, while joint operations are included on a proportion- ate basis. Similar to the Group Financial Statements, individual companies are not included in the Sustainability Statement if they are deemed immaterial. An overview of the companies that have been included is available in the ↗ List of Investments. Devia- tions from the Group reporting entity have been noted for the rel- evant disclosures. The Sustainability Statement covers the BMW Group’s own busi- ness activities along with its upstream and downstream value chain. The BMW Group’s ESRS-based materiality assessment has identified the impacts, risks and opportunities that are consid- ered material in accordance with ESRS. A detailed description of this materiality assessment is provided in the ↗ Materiality Assessment section. Whenever the identified material impacts, risks and opportunities can be assigned to the upstream or downstream value chain, the policies used to address them, the targets defined in relation to the material sustainability matters, and the measures that have been taken or planned to achieve strategic targets and objectives also apply across the upstream or downstream value chain. The parameters that have been determined and applied in this Sustainability Statement also include the value chain to the ex- tent that this is required by law or useful for the purpose of pre- senting and explaining a material sustainability-related issue. The BMW Group is making use of the option to omit certain in- formation relating to intellectual property, expertise or the results of innovations for the 2024 financial year (§ 289e HGB). The safeguard clause applies to the disclosures specified in ESRS E1-1.16c) and E1-3.29c). The safeguard clause referenced in ESRS 2 BP-1.5e) has not been used for the 2024 financial year. The timeframes for collecting and assessing material impacts, risks and opportunities are aligned with our long-term corporate planning. The short-term period corresponds to the reporting year. In terms of material impacts, risks and opportunities, the medium-term time horizon covers the period from 2025 to 2030. Accordingly, the long-term time horizon extends to the pe- riod after 2030. For the main climate-related impacts, risks and opportunities, the period from 2025 to 2035 is considered to be medium-term. The long-term period begins after 2035. The pe- riods for the material climate-related impacts, risks and opportu- nities correspond to the periods previously used in the Group’s internal assessment and external reporting. A complete list of disclosure requirements and referenced data points is available in the ↗ ESRS Index. Due to the voluntary first-time application of ESRS, the previous year’s figures are not disclosed in this Sustainability Statement, with a few exceptions. Figures reported in the Group Financial Statements that enable a better understanding of the non-finan- cial statement are disclosed and explained.