203 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 delivery notes), nor is there a government-operated/regulatory registry similar to that for Energy Attributes Certificates (e.g. guarantees of origin) that facilitates the distinct allocation of sec- ondary materials to specific customers without duplication. Therefore, the secondary material quota is confirmed using sys- tem extracts from the relevant suppliers’ Enterprise Resource Planning systems, along with details and evidence of secondary material procurement through mass balances. Furthermore, written confirmation is obtained from suppliers and upstream suppliers in the value chain to clearly attribute secondary mate- rials to BMW Group products, preventing any possibility of dou- ble-counting with other customers. The unit of the metric is tonnes of CO2 equivalent [t CO2e]. D Durability (expected product lifetime) This non-financial metric is defined as the average expected ser- vice life of vehicles, expressed as the average age of a vehicle. The age of the vehicle is determined on the basis of the data pro- vided by our end-of-life vehicle take-back points in the German market for BMW Group vehicles taken back, excluding motorcy- cles. The vehicles recorded for the metric are those that have reached the end of their useful life due to their age and irreparable condi- tion, or that have been taken back because of irreparable dam- age resulting from an accident. The date of first registration, the time of return and the number of vehicles taken back in a reporting year are used to calculate the average vehicle age. The calculated age of all vehicles (dif- ference between return and first registration date) is added up and divided by the total number of vehicles taken back. The data is based on information provided by partners in the end-of-life take-back network for BMW Group vehicles in Germany. The data originate from BMW Group take-back partners, represent- ing around 10% of all dismantling companies licensed in Ger- many. This is primary data. The partners provide the data once a year. The metric is hence collected once every calendar year and relates to the year prior to the reporting year. Furthermore, the industry average vehicle age in Germany is stated based on data supplied by the German Federal Environ- ment Agency (Umweltbundesamt) (data as per 2021). The unit of the metric is age indicated in years. E Energy consumption and mix The metric results from the energy consumption generated by BMW Group plants, in vehicle production, motorcycle and com- ponent production as well as other BMW Group non-manufac- turing sites (e.g. research centres, sales centres, office buildings). Partner plants and contract manufacturing are not included be- cause they are not consolidated financially. Starting in 2024, the energy consumption of third parties on BMW production sites will also be measured. This includes the energy consumed by third parties on the site, provided production equipment is not owned by the BMW Group, the employees work for third parties and the equipment is either in a separate building or in a clearly sepa- rated area within a building. This also includes energy consumed by third parties on the site while construction work is being com- pleted for future production up to the point when risk is trans- ferred to the BMW Group. The metric shows the energy consumption per energy source for the entire BMW Group, including the supply of third parties at BMW Group locations. Total energy consumption consists of the fuel consumption from natural gas and petroleum products, as well as the consumption of purchased or acquired electricity, heat, steam or cooling derived from fossil sources. In addition, renewable fuels, including wood fuel, landfill gas, biomethane and the consumption of purchased heat, steam and cooling from renewable sources, plus electricity from renewable sources, are included. The electricity from renewable sources is generated by the company itself via photovoltaic installations, or sourced from power purchase agreements (PPA) and Energy Attributes Certif- icates (e.g. guarantees of origin). The BMW Group generally calculates the share of electricity from renewable sources con- servatively, i.e. shares of renewable power generation in the electricity mix are not used for the calculation. Electricity from co- generation plants is counted as natural gas consumption. Some of the electricity in the energy mix supplied to the BMW Group may be sourced from nuclear power plants. From the 2024 reporting year onwards, the corresponding percent- ages will be derived from the statistical data for each country. These are provided worldwide by the Association of the Automo- tive Industry (VDA). The BMW Group uses the currently valid ver- sion. The metric also includes the non-manufacturing sites over which the BMW Group has exclusive financial control. Energy con- sumption for the sites is extrapolated based on the gross floor area (GFA) and the type of use. The extrapolation is based on an evaluation of the non-manufacturing sites for which primary data are recorded. The extrapolated consumption metrics are then added to the consumption of purchased electricity, heat, steam or cooling from fossil sources. All other sites are recorded on the basis of meter data or invoice values. The data from production sites included in the metric is certified by the Eco Management and Audit Scheme (EMAS), ISO 14001 and partly ISO 50001. Some of the non-manufacturing sites in- cluded in the metric are certified. All energy values stated in the report are based on the lower cal- orific value. The BMW Group uses the currently valid version of the conversion factors issued by the German Federal Office for Economic Affairs and Export Control (BAFA). The unit of the metric is megawatt hours (MWh). Energy consumption per vehicle produced (automotive) This metric is calculated based on the energy consumed by the BMW Group in the production of its automobiles, including com- ponent manufacturing (excluding partner plants, contract manu- facturing and Spotlight Automotive Ltd.), in relation to the num- ber of vehicles produced (excluding motorcycles, contract manu- facturing and Spotlight Automotive Ltd.) in the reporting year.
