204 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 The energy data shown in the metric is derived from production sites that are certified according to the Eco Management and Au- dit Scheme (EMAS), ISO 14001 and partly ISO 50001. The energy values shown in the metric are based on the higher calorific value. The unit of the metric is megawatt hours (MWh) per vehicle pro- duced. Energy intensity associated with activities in high climate impact sectors The BMW Group operates in NACE sectors C29.10 and C30.91. This includes the manufacture of motor vehicles and their en- gines, as well as the manufacture of motorcycles. As a vehicle manufacturer and provider of leasing services, our business ac- tivities therefore lie exclusively in climate-intensive sectors. In terms of the energy intensity metric, the total ↗ Energy consumption is included in the metric. The denominator is based on BMW Group net revenues ↗ note [7]. These net revenues are ad- justed by an item related to the Financial Services segment’s third-party business. Since the energy consumption associated with the production of vehicles sold under other brands is not in- cluded in the numerator of this metric, related revenues are de- ducted from the denominator. The unit of the metric is megawatt hours per euro [MWh/€]. EU Taxonomy – capital expenditure (CapEx) Capital expenditure is calculated on the basis of IAS 16.73(e)(i) and (iii) for property, plant and equipment, IAS 38.118(e)(i) for intangible assets and IFRS 16.53(h) for leases. In accordance with the definition of capital expenditure provided in Annex I of the Commission Delegated Regulation (EU) 2021/2178 and taking into account the adjustments made by Delegated Regula- tion (EU) 2023/2486, the KPI figure used for EU Taxonomy pur- poses comprises additions to intangible assets, in particular cap- italised development costs, additions to property, plant and equipment as well as right-of-use assets in accordance with IFRS 16, and leased-out products. Capital expenditure relating to the sale of parts to external third parties or the delivery of parts to cooperation partners are not taken into account. EU Taxonomy – operating expenditure (OpEx) Operational expenditure only comprises non-capitalised devel- opment costs, maintenance and refurbishment costs for build- ings, repairs to property, plant and equipment, relevant IT costs in the Financial Services segment, non-capitalised expenses re- lating to short-term lease contracts, expenditure for low value as- sets, and purely variable remuneration. The KPI figure calculated for Taxonomy purposes is not used by the BMW Group for finan- cial reporting purposes. EU Taxonomy – revenues Revenues are calculated in accordance with Article 2(5) of Di- rective 2013/34/EU. Revenues comprise the income and earn- ings reported in accordance with IAS 1.82(a). Revenues relating to the sale of parts and components (e. g. after-sales business excluding the provision of repair services) and the supply of pro- duction components to third parties, insurance premiums, and interest income on deposit-taking and credit business and from the end-of-lease business with motorcycles as third-party brands were not included, as these economic activities are not classified as Taxonomy-eligible. G Greenhouse gas intensity (market- and location-based) The greenhouse gas intensity is calculated based on the total greenhouse gas emissions of the BMW Group in tonnes of CO2e ↗ Scope 1 to Scope 3: CO2e emissions (total) (market- and location- based). The denominator is based on BMW Group net revenues ↗ note [7]. These net revenues are adjusted by an item related to the Financial Services segment's third-party business. Since the emissions associated with the production of vehicles sold under other brands are not included in the numerator of this metric, re- lated revenues are deducted from the denominator. The unit of the metric is CO2 equivalent per euro [CO2/€]. I Internal CO2 price The BMW Group calculates a CO2 price as a shadow price, which is applied by the Research and Development department for evaluation purposes in connection with decisions on vehicle pro- jects (Scope 3 downstream, Category 11 – use phase in accord- ance with the Greenhouse Gas Protocol). The CO2 price is based on the carbon emissions limit set by the EU fleet regulations. The EU fleet regulations set a value in euros per g of CO2 emitted over the target for each unit sold. Multiplying this by the average mileage of 200,000 km, as used in the life cycle analysis in ac- cordance with the assumptions of the Association of the Auto- motive Industry (VDA), yields the internal CO2 price for the BMW Group. A regular review (at least once a year) is carried out with regard to the revision of the European fleet regulations or, when needed, depending on potential amendments to the underlying regula- tory system, by the Group Controlling and Emissions and Sus- tainability Strategy units. The unit of the metric is euro per tonne CO2 [€/t CO2]. L Location-based method A method to quantify Scope 2 CO2e emissions based on average energy generation emissions factors for defined geographic lo- cations, including local, subnational, or national boundaries (Greenhouse Gas Protocol, Scope 2 Emissions Guidance, Glos- sary, 2015).