230 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 Topic Material impacts, risks and opportunities Type Time horizon* Stage of the value chain ESRS/ Entity specific disclo- sures (ESD) Sub-sub-topic E5 The use of non-renewable primary raw materials impacts worldwide depletion of natural resources as well as the nature and communities at the mining location. Negative Impact Mid term ESRS Resources inflows, including resource use E5 Waste management of the increasing amounts of hazardous waste at tier-1 supplier sides (e.g. batteries) and incorrect disposal in the supply chain, includ- ing e.g. battery and electronics production, imposes detrimental impacts of the environment and society. Negative Impact Short term ESRS/ESD Waste E5 Circular economy business models and products slow down the usage of natural and limited resources and reduce landscape and habitat disruption. Positive Impact Short term ESRS Resource outflows related to products and services E5 Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with resources inflows, in- cluding resource use. Risk Mid term ESRS Resources inflows, including resource use E5 Non-compliance regarding the usage of non-regenerable resources due to increasingly stringent regulations could lead to liabilities, penalties, fines, repu- tational damage or the loss of licenses and permits for BMW Group. Risk Mid term ESRS Resources inflows, including resource use E5 Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with resources inflows, including resource use. Risk Mid term ESRS Resources inflows, including resource use E5 New regulations could require BMW Group to design products which meet additional recyclability requirements (e.g. increased dismantling or restricting choice of certain materials) or incorporate recycled materials which may be in short supply, leading to increased product costs. Risk Mid term ESRS Resource outflows related to products and services E5 A product made without circular principles and with high embodied Carbon footprint of materials might lead to unfavourable market access, where regula- tory requirements exist (for e.g. EU battery and End of Life Vehicle regulations). Risk Mid term ESRS Resource outflows related to products and services E5 Financial opportunities and competitive advantages through innovation, research and development with respect to resources inflows, including resource use. Opportunity Mid term ESRS Resources inflows, including resource use E5 Opportunities and financial benefits from increasing the supply chain resilience by direct purchasing of raw materials. Opportunity Mid term ESRS Resources inflows, including resource use E5 Possible policy instruments which favour use of low carbon footprint materials (carbon pricing) or favour recycled content (e.g. US IRA) could make the products eligible for financial incentives. Opportunity Mid term ESRS Resource outflows related to products and services S1 Workplace accidents resulting in physical injury reduce an employee's ability to live a fulfilling life, or may in worst cases be fatal. Negative Impact Short term ESRS Health and safety