133 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 RESPONSIBLE USE OF WATER RESOURCES Material impacts, risks and opportunities Type Stage of the value chain Policies Targets Specific actions Limiting the availability of water and/or harming the ecosystem through water withdrawals within the supply chain especially in areas of high-water stress. Negative Impact − Multistage due diligence process to uphold environmental and social standards in the supply chain (in- cluding the BMW Group Supplier Code of Conduct) ↗ Social and Environmental Re- sponsibility in the Supplier Network ↗ Due Diligence in the supplier net- work − Process for responsible raw material management ↗ Responsible raw material man- agement − 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 ↗ Social and Environmental Re- sponsibility in the Supplier Network ↗ Preventive and remedial measures ↗ Complaints procedure − Analysis of the effectiveness of the processes and measures imple- mented ↗ Due Diligence in the supplier net- work − Objectives for local projects ↗ Responsible raw material man- agement − Commitment to initiatives − Risk analysis − Sustainability questionnaire (online assessment) − On-site assessments of supplier lo- cations (on-site assessment) − Complaints procedure − Certification and traceability of raw materials supply chains − Implementation of local projects ↗ Social and Environmental Re- sponsibility in the Supplier Network ↗ Due Diligence in the supplier network ↗ Risk analysis and control mechanisms ↗ Preventive and remedial measures ↗ Complaints procedure ↗ Responsible raw material management Local water scarcity and threat to water supply due to high water intensity in production processes of suppli- ers and other preliminary products of BMW Group. Negative Impact Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver- sies in connection with water, specifically water consumption. Risk Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver- sies in connection with water, specifically water withdrawals. Risk Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with water, specifi- cally water consumption. Risk New or changing worldwide government regulations regarding water consumption could require to adjust operations and therefore increase dependencies and availability due to exclusion. Risk − BMW Group Water Strategy − Environmental policy ↗ Holistic Environmental Manage- ment within the BMW Group − Reduce potable water consumption by 25% by 2030 − Use of alternative water sources − Water treatment and reuse − Innovation and technologies for re- ducing water use − Risk-based water strategy and monitoring Upstream material Own Operations material Downstream material