175 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 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN THE SUPPLIER NETWORK Material impacts, risks and opportunities Type Stage of the value chain Policies Targets Specific actions Inadequate working time impacts workers’ income, well-being and living conditions at tier-1 supplier loca- tions. Negative impact − Multistage due diligence process to uphold environmental and social standards in the supply chain BMW Group Supplier Code of Conduct − No targets that focus exclusively and thematically on material im- pacts, risks and opportunities − Overarching targets for the proce- dures used to perform due diligence in the supplier network − Analysis of the effectiveness of the processes and measures imple- mented − Commitment to initiatives − Risk analysis − Sustainability questionnaire (online assessment) − On-site assessments of supplier lo- cations (on-site assessment) − Complaints procedure The non-existence of works councils and consultation impacts workers rights at tier-1 suppliers - especially when supplier locations are based in countries where such rights may be restricted in law and/or practice. Negative impact Workplace accidents at tier-1 supplier locations resulting in physical injury reduces an employee ability to live a fulfilling life, or may in worst cases be fatal. Negative impact The tier-1 suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise), may contribute to the development of chronic diseases and impairments among employees worldwide, e. g. inadequate ergonomic considerations in the workstations. Negative impact Lack of free choice of employment affects living and working conditions of workers at Tier-1 supplier loca- tions worldwide. Negative impact Violence, harassment (incl. inhumane treatment) and discrimination at the workplace affect the living and working conditions for employees at supplier locations (tier-1). Negative impact The non-existence of works councils and consultation impacts workers rights at n-tier suppliers - especially when supplier locations are based in countries where such rights may be restricted in law and/or practice. Negative impact − Process for the responsible man- agement of raw materials − Raw materials strategy » Raw materials security and strat- egy − BMW Group Supplier Code of Con- duct − No targets that focus exclusively and thematically on material im- pacts, risks and opportunities − Overarching targets for the proce- dures used to perform due diligence in the supplier network − Analysis of the effectiveness of the processes and measures imple- mented − Objectives for local projects − Risk analysis − Reduction of critical virgin raw ma- terials ↗ Circular Economy and Resource Use − Certification and traceability of raw materials supply chains − Commitment to initiatives − Implementation of local projects − Complaints procedure Workplace accidents at n-tier supplier locations (exploitation of raw materials) resulting in physical injury re- duces an employee ability to live a fulfilling life, or may in worst cases be fatal. Negative impact The n-tier suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise), may contribute to the development of chronic diseases and impairments among employees worldwide, e. g. inadequate ergonomic considerations in the workstations. Negative impact Lack of free choice of employment affects living and working conditions of workers at n-tier supplier locations worldwide. Negative impact The use of child labour at n-tier supplier locations deprives children of education and a normal childhood, perpetuates poverty and inequality, and increases the likelihood of physical and emotional abuse. Negative impact