125 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 From the 2025 financial year onwards, the BMW Group’s sus- tainability reporting will be expanded to include Scope 3 category 14 (Franchise). This category comprises the global retail network for the BMW and MINI brands (excluding own branches). The global retail network of the BMW Group’s Automotive segment currently comprises around 4,800 sales locations. As the retail network is considered part of the downstream value chain, the associated activities are also included in the BMW Group's Scope 3 emissions. In tandem with the data gathering process, the preparation ofCO2e targets for the global retail network and the development of a pathway for achieving these targets began in 2024. The BMW Group plans to prepare measures by the end of 2025 that align the sales organisation's CO2e targets with the BMW Group’s overarching targets. This ensures that emissions from significant emission sources along the entire value chain, including the sales organisation, are fully documented and reduced in a targeted manner from 2025 onwards. In addition to absolute CO2e emissions, the BMW Group also as- sesses its fleet carbon emissions limits in the use phase. Despite a slowdown in the upwards sales trend for electrified vehicles in the 2024 reporting year, the BMW Group was able to further re- duce its fleet carbon emissions in the main sales markets of the EU, USA, and China by increasing the BEV share. Within the EU1, average fleet carbon emissions, taking into ac- count regulatory requirements2 and in accordance with WLTP, were 99.5 g CO2/km2. This is equivalent to reducing the ↗ CO2 emissions of the new vehicle fleet EU by a further 2.6 g compared to the previous year (2023: 102.1 g CO2/km). In the reporting year, the BMW Group remained significantly below the legal ap- plicable limit of approximately 130.1 g CO2/km by 30.6 g CO2/km. This continues the trend seen in recent decades, driven by the electrification of the vehicle fleet and the fleet-wide de- ployment of innovative technologies ↗ EfficientDynamics technologies. In the US market, the BMW Group once again met the regulatory GHG fleet consumption requirements during the reporting year. This was achieved using self-generated credits as well as credits carried over from previous years. The BMW Group did not pur- chase any credits from other manufacturers for the reporting year. The requirements were therefore met without exception by using self-generated, existing credits. The volume-weighted ↗ CO2 fleet carbon emissions (US market)3 averaged 114.6 g CO2/km2 (model year 2023: 126.5 g CO2/km). The increasing proportion of electric vehicles had a particularly significant effect in terms of reducing emissions. The volume-weighted ↗ CO2 fleet carbon emissions in China were 141.9 g CO2/km2 according to the WLTC test cycle (2023: 146.4 g CO2/km WLTC). The BMW Group has also met the ap- plicable regulatory CAFC fleet consumption requirements in that market. The BMW Group’s ↗ global fleet carbon emissions in the reporting year averaged 185.0 g CO2e/km2 (2023: 191.8 g CO2e/km4). These metrics correspond to a decrease of 18.4% compared to the base year 2019 (2019: 226.8 g CO2e/km4). As in previous years, when calculating the emissions metrics, the BMW Group takes into account volume-weighted fleet carbon emissions (including upstream emissions for fuel and electric charging) in the EU, the USA, and China and standardises them in accordance with the WLTP. With a share of more than 80% of BMW Group deliveries, these three core markets and regions form a reliable basis for calculating global average fleet carbon emissions. The BMW Group is involved in associations and also participates independently in political debates on future requirements related to carbon legislation in individual markets. The Company sup- ports the development of harmonised national and international regulations. Establishing comparable requirements creates a re- liable and predictable framework which can make an important contribution to effectively countering the effects of climate change. We provide information on the BMW Group’s most im- portant climate policy positions and activities in our ↗ Climate Engagement Report. Use of an internal carbon price to assess vehicle projects An ↗ internal carbon price is used as a shadow price in the develop- ment phase of vehicle projects (automobiles) to assess the measures taken to reduce carbon emissions in the use phase. This carbon price was determined on the basis of fleet regula- tions in the EU. These regulations stipulate a penalty of 95 € per gram of CO2 for each unit sold if the target is not met. The value is converted over an assumed mileage of 200,000 km to a price of 475 € per tonne of CO2. Vehicle projects are managed directly based on impacts in g CO2/km while drawing on expected vehicle emissions and their impact on the BMW Group fleet. The penalties that may be imposed are appropriate when as- sessing measures as they directly represent the costs that would be incurred if the targets were not met. The costs of carbon measures can therefore be directly compared to potential pen- alty payments and used as a basis for assessing emissions from the use phase. The BMW Group’s internal carbon price is applied to 100% of Scope 3 CO2e emissions from the use phase of the automobile sector. In the 2024 reporting year, this price was ap- plied to 90,667,226 t CO2e. This is equivalent to 69.1% of the total CO2e emissions of the BMW Group. 1 EU-27 countries including Norway and Iceland. 2 Assurance level: reasonable assurance. 3 Converted from g/mi to g/km for comparison purposes. 4 The calculated emissions include upstream emissions from supplying fuel. In the current data set provided for this purpose, Sphera uses the new IEA Methane Tracker. This determined that me- thane flaring was significantly more frequent during crude oil production than in previous years. Due to the significant influence that this effect has on the aforementioned indicator, the previous years were re-baselined back to 2019. Excluding this effect, the previous year's value was 185.4 g CO2e/km and the value in 2019 was 218.5 g CO2e/km.