BMW

No leading practices have been identified for this company.

BMW has a comprehensive low-carbon transition plan informed by climate scenario analysis that has considered the implications of a 1.5°C scenario. The company’s transition plan contains relevant short- and long-term actions, including expanding electromobility infrastructure and developing hydrogen technologies. Moreover, the company has implemented board-level oversight of climate change issues, and its board has expertise in the science and economics of climate change, including an understanding of policy, technology and consumer drivers that could disrupt current business. The company also includes metrics related to greenhouse gas (GHG) emissions reductions within its board’s long-term incentive plan.

BMW has steadily increased its low-carbon vehicle sales from 2% in 2019 to 15% in 2023. However, the company will need to continue to significantly increase this share to align with its 1.5°C pathway, which requires zero emissions vehicles to account for around 67% of its global vehicle sales by 2030.

BMW commits to reduce its scope 3 emissions from purchased goods and services, upstream transportation, and distribution services by 22% per vehicle sold by 2030 compared to 2019. This target has been approved by the Science-Based Targets initiative (SBTi). BMW uses several levers to encourage its suppliers to reduce GHG emissions and supply low-carbon products. The company uses CDP’s supply chain programme to request emissions information from suppliers, engages with suppliers to educate them about climate change and works with suppliers to promote the use of green electricity and other decarbonisation measures. In 2023, the company reduced the volume of carbon emissions generated in its supply chain by around 1.7 million tonnes as a result of its engagement with suppliers on decarbonisation.

BMW has set a target to reduce its scope 1 and 2 emissions intensity by 80% by 2030 compared to 2019. The SBTi has verified that this target is consistent with a 1.5°C pathway. The company has also set ambitious targets to reduce its upstream scope 3 emissions intensity by 22% and downstream scope 3 emissions intensity by 50% by 2030 compared to 2019. While the company also has an ambition to achieve net-zero emissions across its value chain by 2050, it can improve on this by setting a more detailed long-term target.

BMW has some initiatives to decarbonise activities within its existing business models, such as vehicle-as-a-service offerings, component-as-a-service offerings and end-of-life management to increase the recyclability of its vehicles. However, these actions have a limited impact in terms of GHG emissions reduction, and there is no evidence that they are scheduled to grow. The company is also creating new low-carbon business models, such as expanding its battery electric vehicle (BEV) offering and developing battery and electric vehicle charging infrastructure. While BMW discloses that it aims to have more than 50% of its total vehicle sales comprised of all-electric cars by 2030, it can improve its benchmark performance by also reporting relevant activity-based size metrics for its other low-carbon business models.

The in-use emissions produced by BMW’s sold vehicles decreased by 15% over the last five years. This is only partially aligned with the company’s 1.5°C pathway, and the company’s locked-in emissions from current and planned products are projected to exceed the carbon budget calculated from its decarbonisation pathway. The company reports a 26% capital expenditure share in low-carbon technologies and vehicles in 2023, but there is no disclosure indicating the proportion of its R&D expenditure dedicated to low-carbon technologies. The company’s low-carbon revenue in 2023 was about 15% of its total revenue for the same year. Although the company reports an increase in its low-carbon revenue in 2022-2023, there is no disclosure regarding its low-carbon revenue from previous years.

BMW was one of the few companies in the benchmark with a policy to review the climate change positions of the trade associations it is a member of. However, the company can strengthen this review process by including the option to terminate its membership in associations that oppose climate policy. Currently, the company retains membership in three trade associations with climate-negative positions, despite its public backing of climate-positive regulations. BMW also offers financial incentives to its customers who switch to electric vehicles through discounts and charging credits; however, this incentive is only available in select markets with relatively high sales of low-carbon vehicles. The company should expand these financial offerings to the global market to encourage more users to switch to low-carbon vehicles.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.  No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning. 

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers displaced by the low-carbon transition and it discloses the actions it takes to provide reskilling and upskilling opportunities for workers and affected stakeholders. For instance, it has provided a training campaign for its employees and offers dual study programmes and apprenticeships for young people with a focus on future-oriented fields, such as artificial intelligence, data analytics, electronics and production technologies. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.    

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.  No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

BMW commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, it can strengthen its disclosure on its human rights due diligence process and engagement with affected stakeholders. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to ensuring worker health and safety and gender equality, and it discloses some information on collective bargaining and workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices. 

BMW commits to protecting personal data. The company has a publicly available privacy statement in relation to the collection, sharing and access to personal data, but it is limited to website users only. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax it pays in each relevant jurisdiction. The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, it does not disclose a lobbying and political engagement policy, though it specifies that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.