180 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 Responsible raw material management For the BMW Group, the responsible procurement of raw mate- rials is the result of a holistic approach that takes economic, en- vironmental and social aspects into account. Annual risk anal- yses of the BMW Group’s raw materials portfolio form the basis for raw material-specific preventive and remedial measures to reduce environmental and human rights risks. One approach is to reduce the use of critical virgin raw materials. In this context, the BMW Group’s secondary raw materials strategy, which aims to increase the share of secondary raw materials, is paramount. ↗ Circular Economy and Resource Use Supply chain mapping forms the basis for analysing risks at indi- rect suppliers. Therefore, the Company works continuously to in- crease transparency throughout its supply chain, making use of external databases, among other things. In addition, the condi- tions for certifying raw material supply chains are undergoing continuous development. The BMW Group focuses on close cooperation with its partners in its supplier network and is continually involved in specific raw material and cross-commodity initiatives and projects, such as the Initiative for Responsible Mining Assurance (IRMA), the Re- sponsible Minerals Initiative (RMI), the Towards Sustainable Mining (TSM) Initiative and the Aluminium Stewardship Initiative (ASI). The objective of this collaboration is to create a uniform international basis for the certification of raw material production and processing and to increase the acceptance and adoption of recognised standards. This is intended to accelerate their imple- mentation along the supply chain. Maintaining an ongoing dia- logue with civil society and other relevant stakeholders in the supply chain as part of these initiatives and projects is a key com- ponent in dealing with critical raw materials. These initiatives are multi-stakeholder efforts in which all relevant parties work to- gether to achieve improved environmental and social standards within the industry. The views of NGOs and affected population groups are taken into account in the decision-making processes. With regard to what are known as ↗ Conflict minerals (tin, tantalum, tungsten and gold (3TG), the BMW Group regularly uses RMI tools. This enables to trace raw materials back to the smelter. Moreover, for selected raw materials the BMW Group is commit- ted to the principle of “empowerment before withdrawal”. Local projects are run in collaboration with project partners and local stakeholders and maybe run for several years. Currently, this concerns the raw materials cobalt, lithium, mica and natural rub- ber. These projects aim to achieve specific goals, and their suc- cess is measured using performance indicators. ↗ Further information and raw material profiles are available on the BMW Group website. For an overview of the raw materials strat- egy, see » Raw materials security and strategy. 1 Basis: industry-specific sustainability questionnaire (online assessment). 2 All notifications are processed until they are fully resolved, if necessary over several financial years. Six notifications received in 2024 were still at the internal processing stage at the end of the financial year and had not yet been fully resolved. Similarly, six notifications from previous years that had not yet been resolved by the end of the 2023 financial year were still being pro- cessed in 2024. Three of these notifications were resolved in 2024 and were proven unjustified. The remaining notifications will continue to be processed in the next financial year. 2024 Number of assessed supplier sites 12,078 Proportion of suppliers of production-related material with implemented preventive measures at the time of awarding 79 Proportion of suppliers of production-related material with agreed preventive measures at the time of awarding 17 2024 Number of notifications of potential violations of our sustainability principles received through our reporting channels 22 of which number of notifications that were clarified during the reporting year² 16 of which number of justified notifications that were clarified during the reporting year – Sustainability assessment of relevant supplier locations1 Notifications of potential violations in the supply chain