126 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 In the supply chain, however, the actions taken to achieve targets for each material group are managed based on the required level of carbon reduction and the necessary avoidance costs. The pro- cess is carried out annually with the involvement of the Purchas- ing and Supplier Network, Development and Finance depart- ments. Similarly, the actions taken to achieve Scope 1 and 2 tar- gets are managed based on the specific avoidance costs. A con- tinuous coordination process ensures that requirements arising from changing conditions are reliably taken into account and that mitigation measures in the supply chain are optimised. Internal carbon prices are not used for financial reporting pur- poses. They are not used when assessing the duration of use and residual value of assets, assessing the possible impairment of assets or measuring the fair value of assets acquired through corporate takeovers. However, the BMW Group’s corporate planning does incorporate volume- and price-related assump- tions for emission allowances under the EU Emissions Trading System (ETS). These premises are also factored into the impair- ment testing process for assets in the Automotive segment. Preparing for Net Zero The BMW Group intends to achieve Net Zero by 2050, which means reducing CO2e emissions across all scopes within the value chain by at least 90% compared to the base year. To achieve this target at this point in time, the BMW Group focuses within the preparation of Net Zero on the decarbonization of its value chain. All emissions that cannot be technically reduced fur- ther at the point of Net Zero (maximum 10% of total base year CO2e emissions) must be neutralised from that point onwards using permanent carbon sinks. The BMW Group has been supporting the development of new permanent CO2e sequestration methods since 2024 to drive the development of these carbon sinks. These efforts have included purchasing certificates from biochar projects. * Additional information is available in ↗ Glossary and Explanation of Key Figures. The BMW Group is financing the permanent storage of initial vol- umes equivalent to 25,000 t of CO2e in cooperation with partners including Atmosfair and Firstclimate. By this means, it is intended to foster the scaling of promising Carbon Dioxide Removal (CDR) technologies at an early stage in order to also prepare for the BMW Group’s sub-target of neutralising a maximum 10% of its base year CO2e emissions at the point of Net Zero by 2050 at the latest. The BMW Group supports these projects voluntarily, which means their yields are not counted towards the Group's CO2e tar- gets. The projects are certified by independent institutions in line with international standards (for example CSI/EBC C-Sink) and have to meet a set of strict quality criteria as for instance perma- nence and additionality of the CO2e storage effects. 2024 Total (in t CO2e) 25,000 Share from removal projects (in %) 100 Share from reduction projects (in %) – Sink-type biochar (in %) 100 Recognised quality standards CSI/C-Sink (in %) 100 Share of projects within the EU (in %) – Share of projects with corresponding adjustments (in %) – CO2e certificates planned to be cancelled in the future (in t CO2e) Until and including reporting year 2026 46,000 – 57,500 CO2e certificates cancelled in the reporting year*