123 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 renewable energies to substitute fossil fuels. ↗ Energy Efficiency and renewable Energy In the area of own emissions (Scope 1 and 2), a reduction of around 38,000 t CO2e was achieved compared to the previous year as a result of new measures implemented in the reporting year. The reduction from the procurement of biomethane at the Spartanburg plant (USA) and from the conversion from fossil fuel district heating to district heating from wood chips at the plant in Steyr (Austria) have made a significant contribution to this. Scope 3 emissions in the categories Purchased goods and ser- vices, Logistics and Use phase account for the largest share of the BMW Group’s total CO2e emissions. As a result, the Com- pany’s CO2e reduction measures are focused on these areas in particular. The BMW Group has established the reduction of CO2e emis- sions in the supply chain as a key criterion when awarding con- tracts to suppliers. Since 2021, the requirement to use electricity from renewable sources has applied to both our direct (tier 1) suppliers and to energy-intensive pre-production (n-tier) pro- cesses involved in the production of CO2e-intensive components and materials. Other measures include the use of secondary ma- terials. This represents an important contribution to the decar- bonisation of the supply chain on the part of the Company. The BMW Group reviews the effectiveness of the CO2-reducing measures in its series production annually in cooperation with a specialised external service provider. 71 suppliers were as- sessed in this regard in 2024. In the reporting year, verified and implemented actions reduced supply chain emissions by around 2.8 million t CO2e. It is expected that it will be possible to reduce CO2e emissions again in subsequent years based on measures in the supply chain. In 2024, the BMW Group started to review the implementation concepts of new suppliers with contracts that stipulate the use of electricity from renewable sources prior to se- ries production. Moreover the Supply Chain Programme of the NGO CDP (for- merly the Carbon Disclosure Project) is used to assess the per- formance of the supply chain in terms of reducing CO2e emis- sions. Participating suppliers are provided support with defining CO2e reduction targets, integrating them into their business pro- cesses and reporting on the progress made on a regular basis. Associated with this is a rating from which the BMW Group de- rives measures for supplier development and empowerment. In 2024, 271 suppliers took part in the rating. This corresponds to 79% of the BMW Group’s direct production-related purchasing volume. The BMW Group is also starting to use nature-based materials in the production of its vehicles to reduce CO2e emissions related to components. This includes using renewable plant-based raw materials for certain components, such as panelling elements in vehicle interiors. In future, the BMW Group intends to use renew- able raw materials for the production of seat covers or interior panelling elements. The BMW Group is making a significant contribution to further reducing CO2e emissions in the use phase by electrifying the en- tire product portfolio across all automobile brands. The Group is also developing established drivetrain technologies with the aim of achieving greater efficiency (EfficientDynamics technologies) and adding new technologies to the drivetrain mix, for example hydrogen drive technology. The increased use of electricity from renewable sources for charging electrified vehicles is another area where the BMW Group has the potential to ramp up its de- carbonisation performance. The BMW Group is actively involved in the expansion of the charging infrastructure and is committed to supporting this goal worldwide. The BMW Group also fosters the development and use of sustainable fuels. ↗ Innovations and Product Technologies The BMW Group has been pursuing the aim of continuing emis- sions-reduced transportation within its global production and retail network since 2015. About half of the vehicles produced by the BMW Group leave its plants by rail. Electricity from renewable sources is used for some of the rail transport involved in our lo- gistics within Germany. In addition to second-generation biofuels (for example HVO 100, produced from residual and waste ma- terials), all-electric heavy commercial vehicles have been in- creasingly deployed for transporting goods at the Group’s main plant in Munich since 2023. Bio LNG (bio liquefied natural gas) has also been used on the road in a number of series transport processes in Germany and the UK. Moreover, the BMW Group has been involved in the “H2Haul” research project since 2022 in addition to the “HyCET” research project, in order to gain early experience in the use of hydrogen trucks. The implementation and financing of actions and the measure- ment of target achievement are all part of long-term corporate planning. Taking measures into account in the financial planning process ensures that adequate funding is available to implement them in the relevant periods. The implementation of these CO2e reduction measures is initially geared towards the year 2030. However, the measures extend well beyond 2030 in many areas, such as the adaptation of the product portfolio or making it possible to operate new sites with- out the use of fossil fuels. This also supports our aim to achieve Net Zero across the entire value chain by 2050 at the latest. Greenhouse gas emissions along the entire value chain Absolute CO2e emissions are presented for the reporting year and are disclosed per scope and per relevant category ↗ CO2e footprint. Emissions are presented and disclosed in line with the structure and requirements of the Greenhouse Gas Protocol and the relevant emission factors for each scope and category. These are reviewed as part of the annual data gathering process and updated if necessary.