Striving for ESG Excellence in Global Operations The BMW Group, a global leader in the production of premium vehicles and motorcycles, has made a firm commitment to uphold Environmental, Social, and Governance (ESG) standards throughout its extensive supplier network. With a sales record of 2.4 million vehicles in 2022 and a workforce of 149,500, the company’s dedication to ESG compliance is a central component of its operational ethos.
Comprehensive ESG Strategies for Supplier Engagement
The BMW Group’s approach to maintaining ESG compliance involves creating transparency and traceability within its dynamic supply chains. The company emphasizes the importance of working closely with its suppliers to meet these objectives. By sourcing a diverse array of components and services globally, BMW Group has established contractually binding sustainability standards for its suppliers, ensuring that ESG due diligence is a cornerstone of their partnerships.
Proactive Measures for Risk Management
When risks are identified within the direct supplier base, BMW Group takes a proactive stance, implementing preventive and corrective actions as well as support activities. A multi-tiered due diligence process is embedded in all relevant sectors of the company, influencing component development, product group strategies, tendering procedures, and supplier development initiatives. The same rigorous standards are applied to indirect suppliers on an as-needed basis, systematically integrating these practices into the company’s processes.
Innovating for Sustainable Material Use
Acknowledging the significant raw material demands of automotive manufacturing, BMW Group is actively pursuing the reduction of raw material consumption and the increased use of secondary materials. The company carefully monitors raw materials associated with environmental and social risks, particularly focusing on 37 key raw materials and groups pertinent to the automotive sector. Challenges in transparency and traceability are addressed through initiatives like the Catena-X Alliance, which fosters an open data ecosystem to enhance automotive industry value chains.
Setting the Standard for Raw Material Sourcing
BMW Group’s commitment to sustainability extends to the minimization of critical raw materials usage and the establishment of specific sustainability standards for relevant components. This strategy has successfully reduced the cobalt content in battery cells to below 10%. Moreover, the company has taken a stand against the use of cobalt, nickel, and manganese sourced from deep-sea mining, reinforcing its position as a responsible and forward-thinking industry leader.
