92 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 However, the BMW Group doesn’t restrict its commitment to tak- ing impactful action to its own vehicles. The Group takes a broader perspective which encompasses the entirety of the vehi- cle population, which comprises over 250 million automobiles in Europe alone. The greatest untapped area of potential when it comes to reducing carbon emissions from road traffic in the near future lies in increasing the renewable, carbon-neutral compo- nents in fuel. Since the phased introduction of the B-series petrol engine in 2015, the BMW Group’s petrol engines have been ap- proved for use with fuel containing up to 25% ethanol (E25), in- stead of fuel that meets the current E10 standard. This switch reduces CO₂e emissions by approximately 20% to 45%, de- pending on the composition of the rest of the fuel. Once the nec- essary legal frameworks have been established, fuels of this kind will be ready for widespread adoption. For diesel drivetrains, an alternative already exists: HVO100, a fuel derived from waste materials with 90% fewer carbon emissions. This fuel can be used in vehicles from the BMW Group thanks to the gradual in- troduction of the B-diesel engine generation, a process which be- gan in 2015. In this regard, the BMW Group is contributing in ad- vance with a pilot project: since early 2025, all diesel models pro- duced in Germany have been filled with non-fossil HVO100 as their first factory fill prior to delivery to retail partners. The BMW Group launched this pilot project to demonstrate that HVO100 is a fully viable and practical diesel substitute. As of January 2025, the BMW Group's vehicle fleet includes around 4.5 million diesel engines and over 13 million B-series petrol en- gines. By using a higher share of renewable fuels, these engines are playing a significant role in cutting CO₂e emissions. This approach reflects the BMW Group’s commitment to tech- nology openness: a high-quality mix of state-of-the-art, efficient drivetrain types makes an effective contribution to the reduction of CO2e emissions. In 2020, the BMW Group expanded its strategic target system beyond the boundaries of its own Company and formulated its own targets for the reduction of carbon emissions in the supply chain. The BMW Group uses integrated management systems to cover a wide range of measures, from definition of its own climate objectives to individual operational decisions. This approach allows the Group to ensure that resources are used efficiently while also providing transparent information about the effective- ness of these measures. The BMW Group believes that the im- plementation of a holistic circular economy has enormous poten- tial to further reduce the consumption of resources and drive for- ward the development of closed material cycles. In 2030, the BMW Group intends to reduce its carbon emissions levels by at least 40 million tonnes compared to 2019. To achieve this aim, the Group will focus on using renewable ener- gies in production, electrifying the vehicle fleet, and using elec- tricity from renewable sources along with secondary materials to decarbonise the supply chain. This new target replaces the pre- vious goal of reducing carbon emissions per vehicle by 40% over the same period. The BMW Group places great emphasis on the responsible and efficient use of resources of all types. Guided by the principles of Re:think, Re:duce, Re:use, Re:cycle, the BMW Group is working closely with its partners in the circular economy to close material loops within the automotive industry and integrate circularity into its processes. The Group also monitors its fresh water and en- ergy consumption levels on a consistent basis so that they can be minimised. The BMW Group is expanding its water treatment systems to minimise fresh water usage and maximise efficiency. The BMW Group can rely on its workforce to meet these ambi- tious goals. It encourages its employees to develop their strengths, with diversity playing an important role. The BMW Group places great emphasis on fostering an unprejudiced, ap- preciative and inclusive working environment where the benefits of diverse teams allow individuals to unfold their full potential. The BMW Group is consistently working towards its strategic goal of increasing the proportion of women in management po- sitions. The Group’s performance and ability to compete are en- hanced by strong teams with complementary strengths who work together to achieve the best solutions in a complex environ- ment. To this end, the Company continuously invests in building up the expertise of its workforce. Continuous training guarantees jobs. With “Just Transition”, the BMW Group is combining the transfor- mation with modern workplaces that guarantee safety and relia- bility for its workforce in a productive environment. In the BMW Group’s production network, entire plants are being trans- formed and geared towards electromobility while production continues. Highly regarded employer ratings consistently rank the BMW Group as one of the world’s most attractive employers. Cooperation with external partners is based on stable and estab- lished relationships, as well as the same values that are culti- vated within the BMW Group. These partnerships explore new technologies and develop innovations. For the BMW Group, up- holding environmental and social standards across its global supplier network is of the utmost importance. This includes, in particular, the respect of human rights. This commitment is an- chored in the Group’s own ethical principles and reinforced through risk analyses and monitoring. The BMW Group’s raw materials strategy and commitment to responsible resource management are integral parts of its holistic corporate strategy. This Sustainability Statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS). It is based on a double materiality assessment that considers both the inside-out and outside-in perspectives. According to the ESRS, companies must classify ESG topics as either material or non-material. The BMW Group . factors in effective, Group-wide mitigating actions which have already been implemented. Mate- riality is assessed at the lowest topic level (bottom-up approach). Accordingly, topics classified as non-material under ESRS may still hold significant importance for the BMW Group. Legally com- pliant behaviour is also a top priority for the BMW Group in these areas. Because of this, the results of a materiality assessment carried out by the Group on an ESRS basis may not be fully comparable with those of other companies. This means that a sustainability topic may be classified or reported on differently by different companies in the same sector due to their specific assessment criteria and frameworks.