202 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 CO2 emissions of the new vehicle fleet in the US (Scope 3 downstream, tank-to-wheel) The average carbon emissions of a manufacturer’s fleet (use phase) are calculated on the basis of the volume-weighted aver- age of carbon emissions across all new vehicles produced in the US model year period. The basis for this is the number of vehicles produced and delivered for sale by the manufacturer in the US market and the individual vehicle-specific carbon emissions, which are determined according to the US combined type ap- proval procedure. The CO2 emissions metric for the BMW Group fleet calculated internally includes the legally permitted offsetting of off-cycle technology, Advanced Technology Credits (BEV, PHEV), and efficient air-conditioning systems. In the US market, manufacturers receive positive credits for an overachievement of regulatory GHG fleet limits. Failure to remain below the regulatory limits results in debits. At the end of a model year, a positive GHG credit balance must be achieved in order to meet regulatory requirements. As GHG credits are valid for five years on the US market, a short-term failure to meet fleet limit targets in one year can be compensated by an overachievement in a previous year. Moreover, it is possible to purchase credits from other manufacturers. The metric is calculated according to the EPA-420-F-21-060 (Environmental Protection Agency: Revised 2023 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions Standards). This metric is a preliminary internal calculation. The unit of the metric is grams of CO2 [g CO2] per kilometre driven (after conversion from miles to kilometres). CO2e emissions of the new vehicle fleet worldwide (Scope 3 downstream, well-to-wheel) This metric documents the progress made by the BMW Group in its strategic objective of reducing CO2e emissions during the use phase including upstream emissions (drivetrain energy supply) by an average rate of at least 50% per kilometre driven by 2030 (base year 2019). For the purpose of calculating this metric, vol- ume-weighted average fleet CO2e emissions are calculated for the EU core markets (27 EU countries including Norway, Iceland, Switzerland and UK) (driving cycle: Worldwide Harmonized Light Vehicles Test Procedure; (WLTP) basis: vehicle registrations), USA (driving cycle: United States Combined; basis: production volume) and China (driving cycle: Worldwide Harmonized Test Cycle (WLTC), subject to China-specific framework conditions for testing; basis: import or local production volumes), in each case prior to deduction of legally permitted credit factors (e.g. super- credits and eco-innovations) and standardised in line with the WLTP (European driving cycle). These core markets account for more than 80% of the BMW Group’s sales. The calculated met- rics are increased by 10% to account for possible discrepancies between cycle values and real emissions, as required by the SBTi. In line with the well-to-wheel approach, the upstream emissions of the energy sources are included in the metric. The corresponding emissions factors provided by Sphera are used to calculate the upstream chain of fuel production (database ver- sion 2024.2, IPCC AR6, kg CO2e/kg fuel). To reflect the CO2e emissions resulting from the production of electricity in the re- spective core markets, the BMW Group uses the energy report published by the International Energy Agency (IEA; reference ba- sis: previous year, g CO2/kWh) as a basis. This covers the entire impact chain behind vehicle motion, i.e. from the extraction and provision of fuels to their conversion into drivetrain energy. This approach also includes the environmental impacts associated with the generation of fuel and electricity. The data collection method is based on the requirements of the Greenhouse Gas Protocol (Scope 3 Calculation Guidance Ver- sion 1.0, 2013). The unit of the metric is grams of CO2 equivalent [g CO2e] per kilometre driven. CO2e reduction in the supply chain (Scope 3 upstream) The metric expresses the absolute quantity of CO2e emissions that were saved during the reporting year as a result of measures taken to reduce CO2e emissions in the supply chain of the auto- mobiles produced. The saved CO2e emissions reductions are derived from the sum of the measures taken to reduce CO2e in the supply chain that were agreed upon with suppliers and demonstrably executed during the reporting year, for example, by using electricity from renewable sources and secondary materials. Agreements with suppliers of raw materials for aluminium and precious metals, as well as suppliers of high-voltage batteries, led to substantial re- ductions. The calculation is based on the same principles, methods and parameters applied in ↗ Scope 3: CO2e emissions from purchased goods and services. In the first step, the CO2e emissions generated by these compo- nents are calculated using the “LCA for Experts” database (sec- ondary database for life cycle analysis (LCA) provided by Sphera) without taking measures to reduce CO2e into account (secondary data). In the second step, the calculation of CO2e emissions is repeated including measures that have been directly agreed with suppliers. The difference between the two calculations yields the CO2e emissions saved. This metric is calculated on the basis of all goods ordered for the BMW Group and partner plants for which measures have been agreed with suppliers. To be eligible for recognition, it must also be possible to map the measures methodically in the calculation models used in the calculation of metrics. In 2024, the categories are: use of electricity from renewable sources in manufacturing and the extraction of raw materials, as well as the use of second- ary materials. An external service provider commissioned by the BMW Group conducts the verification of measures at affected suppliers and their subcontractors at the impacted manufacturing sites. A de- fined method is used to ensure that the contractually agreed measures to reduce CO2e emissions are implemented unambig- uously and without duplication in the reporting year. There are some limitations regarding the clear and non-repetitive alloca- tion of material flows with secondary raw materials. Due to the lack of regulatory provisions, there is currently neither a require- ment for the recording and documentation of material flows for secondary materials across the supply chain (for example on