119 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 Company-wide requirements related to climate change adapta- tion are continuously developed and implemented including with the help of infrastructure planning guidelines. One example is the planning premise that new sites will be operated without the use of fossil fuels, which has been approved by the Board of Man- agement. The implementation process is defined on the basis of relevant frameworks and guidelines, such as the Greenhouse Gas Protocol and science-based approaches for reducing CO2e emissions. The long-term corporate planning workflow was ex- panded in the 2024 reporting year to include the assessment and simulation of the impact on the BMW Group's absolute CO2e emissions. This was done to make the interactions between vol- ume, drivetrain mix, and supply chain more transparent within planning processes, and is achieved by integrating the impact on CO2e emissions directly into the scenarios used for volume and financial planning. In addition to the CO2e strategy, the BMW Group analyses the current and future regulatory requirements for emissions and drivetrain technologies as part of its long-term corporate plan- ning. This includes detailed strategic market and drivetrain fore- casts that are performed as part of volume planning. These fore- casts monitor and anticipate fleet carbon emissions limits, pollu- tants (including brake/tyre abrasion), quotas for electrified vehi- cles, and bans on registration of individual drivetrain technolo- gies. As part of the process for updating the BMW Group’s long- term corporate planning, vehicle volume plans, and the drivetrain mix of the BMW Group portfolio are updated on an annual and ongoing basis. The aim is to continue reducing emissions during the use phase of vehicles while also meeting changing market requirements. The consistent enhancement of the drivetrain portfolio therefore remains one of the BMW Group’s main levers for reducing carbon emissions in the use phase. ↗ Cornerstones of the Strategy Additionally to regulatory requirements, the BMW Group also factors regional and market-specific conditions into its strategic planning. This includes, in particular, the availability and expan- sion of the charging infrastructure for electrified vehicles, the pro- portion of renewable energies in the energy mix and the availa- bility of alternative low-carbon fuels. The analyses also include customer acceptance of different drivetrain options in different markets. Total-cost-of-ownership considerations, such as pur- chase incentives for electrified vehicles, vehicle taxation or the cost of the energy used to power a vehicle have a significant im- pact on customer acceptance. The findings are carefully as- sessed and incorporated into the process of designing the opti- mum drivetrain mix for the respective market. The BMW Group fulfils the regulatory requirements for fleet car- bon emissions in the main sales markets of the EU, USA and China while taking all of the relevant regulatory flexibilities into account, such as to the purchase of carbon credits. If regulatory carbon requirements change, the Company will determine whether the current planning needs to be adjusted as part of the annual strategic drivetrain forecast or whether additional action needs to be taken. This approach ensures that the regulatory re- quirements are met. Transition plan to achieve Net Zero emissions by 2050 The BMW Group aims to achieve net zero CO2e emissions across the entire value chain by latest 2050. This means that the una- voidable CO2e emissions remaining after the reduction measures will be equivalent to a maximum of 10% of the absolute emis- sions in the base year 2019. The Scope 3 emissions will account for around 99% of the remaining total emissions. The remaining 1% of the emissions are Scope 1 and 2 emissions. ↗ Preparing for Net Zero. This methodology is based on recognised definitions and specifications, including the ESRS. The transition plan for cli- mate change mitigation which will be used to achieve net zero consists initially of the CO2e reduction targets for 2030, which also relate to the base year 2019. These near-term targets (NTT) for the target year 2030 provide the guiding framework used to define the actions needed. These targets are in line with the climate targets set out in the Paris Agreement to limit global warming.1 From the 2024 reporting year onwards, the CO2e tar- gets will be converted from relative values to absolute values. By deriving guidelines for 2035, the time horizon of the target corri- dor will be extended. Science-based, cross-sectoral methods were used for each scope to derive CO2e reduction targets for 2030 in line with the approach of the Science Based Targets initiative (SBTi). Targets were assessed based on the source of the emissions according to the relevant categories of the Greenhouse Gas Protocol. Per- centage-based annual CO2e reduction targets relative to the base year 2019 were used. This is a representative base year that provides reliable and comparable values with regard to framework conditions such as sales volumes, emissions in each scope, and available technologies. By taking a systematic ap- proach, the BMW Group ensures that the climate targets for 2030 have been developed on the basis of solid data and have taken all relevant factors into consideration. The CO2e targets are integrated into the BMW Group's steering system. The Company has derived a 1.5°C-aligned pathway for Scope 1 and 22 emissions and integrated it in the corporate strategy. The BMW Group has defined a combined target for its Scope 3 emis- sions (including Purchased goods and services, Logistics, and the Use phase) in the Automotive segment due to the close in- terdependencies between the supply chain and use phase. The targets are based on the standards of a science-based Well-Be- low-Two-Degree approach in accordance with SBTi. The BMW Group uses a holistic approach for this purpose that con- siders the CO2e emissions of vehicles over their entire life cycle. 1 According to ESRS E1-1-16.g, the BMW Group is not exempt from the EU Paris-aligned bench- marks, as this only applies to financial services companies. 2 The combined Scope 1 and 2 target includes all of the categories reported. At present, sites with- out operational control are not included in the target. The base year 2019 also includes emis- sions from contract manufacturing (”insourcing”). In the base year 2019 and the target year 2030, the biogenic share of emissions is included in the figure for the category Company Vehicles (Scope 1), while the biogenic share of the average electricity mix supplied to the BMW Group is included in the Electricity/Heating/Cooling Procurement for BMW Group Locations category. Emissions under Scope 2 are included in the target using the market-based calculation.