211 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 For example, a calculation would be available for a BMW 520i as a vehicle evaluated on a bill of materials basis, but not for a BMW 520i Touring in this instance. To ensure that the latter is accu- rately represented, the calculated CO2e emissions for compo- nents such as the drivetrain, wheels and seats remain un- changed, while the body values are multiplied by a scaling factor when calculating the touring model. The methodology outlined above draws on the established LCA for Experts database from Sphera to ascertain CO2e factors for energy, raw materials and manufacturing processes. In this process, the current datasets are consistently used, starting with the 2023 reporting year. The most recent Sphera database, which takes into account GWP factors in accordance with IPCC (AR6), is used for 2024. Data from 2019 is used to calculate CO2e emissions retrospectively from 2019 until the release of the datasets at the end of Febru- ary 2023. The CO2e emissions of supply chains vary across different re- gions of the world. Therefore, for reasons of simplicity, the pro- duction sites of the vehicles are allocated to one of three regions: Europe, Asia or the USA. Then the emissions are calculated for the entire vehicle supply chain using the Sphera datasets that are valid for that region. The design of the BMW Group calculation method both facilitates and requires the use of a large number of different materials, for which the secondary data of the emissions factors must be provided for the calculation. This data is not equally available for all regions of the world. The approach taken by the BMW Group in this context involves closing gaps in the required secondary data by means of scaling using VDA material classes. The emission-intensive battery cells and catalytic con- verter coating are specifically calculated based on their actual production region, irrespective of the vehicle’s manufacturing lo- cation. Given the significant impact of battery cell production on the ve- hicles’ total CO2e emissions, a detailed calculation model is used to assess the cells. In addition to the actual assembly sites of the battery cells, the material compositions and related production processes, it also accounts for the unique characteristics of the cell chemistry (anode and cathode) as well as the emissions as- sociated with supplier-specific energy consumption. This approach gives each vehicle (automobile) built during the period under review its specific CO2e base value for supply chain emissions (hereinafter referred to as the base value). The total fleet value of CO2e supply chain emissions is calculated by add- ing up the CO2e contributions of all automobiles produced in the reporting year. Since the method described is based primarily on the use of sec- ondary data – i.e. industry average values – individually agreed on CO2e-reducing measures must be deducted from the fleet base value in a subsequent process step. The calculation of the total quantities of CO2e emissions saved is described in the met- ric ↗ CO2e reduction in the supply chain (Scope 3 upstream). Therefore, the metric is derived from the base value described above, minus the ↗ CO2e reduction in the supply chain (Scope 3 upstream). BMW motorcycles: the share of supply chain emissions at- tributed to the motorcycle fleet is calculated using a simplified method. In this case, a representative motorcycle (or scooter) is selected for each family of vehicles (with the same drivetrain: in- line or boxer, electric drive); the supply chain emissions are then assessed for this derivative. This also involves analysing the bill of materials at the compo- nent level, with a focus on the materials used and the associated manufacturing processes. Secondary data from “LCA for Ex- perts” (Sphera) is used here. This method draws upon compo- nents of ISO 14040/44 and follows common practice in prepar- ing life cycle analyses (LCA). When scaling the emissions to the entire motorcycle fleet, the CO2e values obtained for the supply chain of the assessed vehicle are scaled to all other derivatives of the same family using the vehicle mass. This value is then mul- tiplied by the total number of vehicles (motorcycles) produced in the reporting year. This estimation method for motorcycles does not work by scaling component elements and as a result is unable to model differen- tiations within the individual vehicle families in as much detail as is the case in the calculation for automobiles. CO2e-reducing measures are not currently verified by motorcycle suppliers inde- pendently and are therefore also not accounted for in ↗ CO2e reduction in the supply chain (Scope 3 upstream). The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio- genic emissions are reported separately. Scope 3: CO2e emissions from upstream transportation and distribution [Logistics] The metric comprises the CO2e emissions generated by transport logistics, which include inbound (production supply), outbound (vehicle distribution) and customer support (spare parts). All modes of transport used within the BMW Group transport net- work for BMW Group automobiles and motorcycles up to the sales organisation are taken into account: — Road — Rail — Sea — Inland waterway — Air freight In accordance with Scope 3 of the Greenhouse Gas Protocol, transport emissions fall under Categories 4 (“Upstream trans- portation and distribution”) and 9 (“Downstream transportation and distribution”). Only the definition of Category 4 applies to the BMW Group’s transport logistics because the BMW Group bears the transport costs up to the point of sale. Emissions after the point of sale are reported in Scope 3 under Category 11 in the use phase because it is usually from this point onwards that the automobile or motorcycle is put into operation by the customer. Emissions from the BMW Group’s own warehouses and distribu- tion centres are reported in Scopes 1 and 2. The distance-based method (in accordance with the Greenhouse Gas Protocol) is used to calculate the CO2e emissions of transport logistics. First, the transport performance is calculated (weight multiplied by distance) in tonne-kilometres [tkm]. The relevant weight in tonnes [t] comprises the gross weight (com- ponent/motorcycle weight including packaging and shipping ma- terial) for inbound, customer support (spare parts) and motorcy- cle outbound, while the vehicle mass is used for automobile out- bound. Distance is the distance travelled in kilometres [km]. In the second step, the transport volume is multiplied by specific