BM W GRO UP R E PO RT 20 24
On the path to electric and digitalised mobility in a sustainable circular economy.
Report on the economic performance of the BMW Group and its environmental
and social contribution.
↗ Link to the online report
2
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
The BMW Group maintained its strong market position in 2024, and the BMW brand retained the top position in the global premium segment. With its attractive products, the Company offers
innovative and efficient drivetrain technologies aligned with the needs of customers across all brands. Vehicles with all-electric drivetrain systems are currently our biggest growth drivers. Our
Vision Vehicles demonstrate how we are setting up the NEUE KLASSE as our next innovative leap.
The BMW Group remains on course.
You can find more information on the BMW Group and reporting year 2024 in the following report.
KEY PERFORMANCE INDICATORS
GROUP PROFIT/LOSS BEFORE TAX
in € million
EBIT MARGIN IN THE AUTOMOTIVE
SEGMENT
in %
EBIT MARGIN IN THE MOTORCYCLES
SEGMENT
in %
RoE IN THE FINANCIAL SERVICES
SEGMENT
in %
10,971
Significant decrease from previous year
6.3
Within the corridor of 6 to 7%
6.1
Within the corridor of 6 to 7%
15.1
Within the corridor of 15 to 18%
EMPLOYEES OF THE GROUP
at year-end
DELIVERIES IN THE AUTOMOTIVE
SEGMENT
in units
DELIVERIES IN THE MOTORYCLES
SEGMENT
in units
SHARES OF ALL-ELECTRIC
CARS IN DELIVERIES
in %
159,104
Slight increase over previous year
2,450,854
Slight decrease from previous year
210,385
Previous year’s level
17.4
Significant increase over previous year
BMW GROUP REPORT 2024
This is a simplified presentation of the data. Detailed information on the performance figures
LINK TO CHAPTER
as well as the identification of the depth of the audit can be found in the respective chapters.
The BMW Group Strategy
3
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
FINANCIAL GOALS
Group EBT margin
EBIT margin in the
Automotive segment
Return on capital employed
of Automotive segment
> 10%
8-10%
≥ 18%
NON-FINANCIAL GOALS – TARGETS FOR THE PERIOD UP TO 2030
Shares of all-electric
cars in deliveries
Reduction CO2e emissions
Scope 1 and 2 compared to the
base year 2019
Reduction CO2e emissions Scope 3
(supply chain and use phase)
compared to the base year 2019
Share of women
in management positions
> 50%
> 0.5 million t
> 40 million t
23-25%
THE BMW GROUP’S STRATEGIC GOALS
This is a simplified presentation of the data. Detailed information on the performance figures
LINK TO CHAPTER
as well as the identification of the depth of the audit can be found in the respective chapters.
The BMW Group Strategy
CONTENTS
4
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Contents
5
About This Report
1 – T O O U R S T A K E H O L D E R S
9
BMW Group in Figures
13
Report of the Supervisory Board
22
Statement of the Chairman of the Board of Management
30
The Board of Management
31
Composition of the Board of Management and
Supervisory Board
35
Stakeholders and Capital Markets
2 – C O M B I N E D M A N A G E M E N T R E P O R T
39
Overview of the BMW Group
66
Financial Performance
91
Sustainability Statement
246 Internal Control System, Risks and Opportunities, Compliance
260 Outlook
264 Disclosures Relevant for Takeovers and Explanatory
Comments
3 – G R O U P F I N A N C I A L S T A T E M E N T S
269 Income Statement for Group and Segments
270 Statement of Comprehensive Income for Group
271 Balance Sheet for Group and Segments at 31 December 2024
273 Cash Flow Statement for Group and Segments
275 Statement of Changes in Equity for Group
277 Notes to the Group Financial Statements
4 – R E S P O N S I B I L I T Y S T A T E M E N T A N D A U D I T O R ’ S
R E P O R T
362 Responsibility Statement by the Company’s Legal
Representatives
363 Independent Auditor’s Report
370 Assurance Report of the Independent German Public Auditor
5 – R E M U N E R A T I O N R E P O R T
374 Remuneration Report
374 Review of the 2024 Financial Year from a
Renumeration Perspective
376 Remuneration of the Members of the Board of Management
409 Remuneration of the Members of the Supervisory Board
411 Comparison of Change in Remuneration and Earnings
pursuant to § 162 (1) Sentence. 2 No. 2 of the German Stock
Corporation Act (AktG)
415 Other Considerations
415 Outlook for the 2025 Financial Year
417 Auditor’s Report
6 – O T H E R I N F O R M A T I O N
419 SASB-Index
421 Consumption and Carbon Disclosures
425 BMW Group Ten-year Comparison
427 Glossary*
430 Financial Calender
431 Contacts
* Part oft he Combined Management Report.
5
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
About This Report
REPORTING CONCEPT
Reporting and corporate strategy
The BMW Group regards its balance of economic, ecological and
social interests as the basis for its commercial success. This re-
port is intended to provide qualified insight into the BMW Group
and explain our activities in a transparent, comprehensible and
measurable manner. We are keen to demonstrate to our stake-
holders how economic, ecological and social issues affect what
we do, and to identify the general external conditions that influ-
ence the Company. For these reasons, we explain ↗ The BMW
Group Strategy as well as the latest developments and the way in
which the business is managed on the basis of key financial and
non-financial indicators and targets. ↗ Dashboard Starting this re-
porting year, the Sustainability Statement – a separate section of
the Combined Management Report – also provides detailed in-
sight into the key sustainability topics facing the Group.
On 11 March 202511 March 2025, the Financial Statements of
BMW AG were authorised for issue by the Board of Management
and the Group Financial Statements approved for publication.
The BMW Group Report (hereinafter also “the Report”) combines
the management reports of Bayerische Motoren Werke Aktieng-
esellschaft (BMW AG) and the BMW Group in a Combined Man-
agement Report.
The report is divided into the following sections:
1 – To Our Stakeholders
2 – Combined Management Report
3 – Group Financial Statements
4 – Responsibility Statement and Auditor’s Report
5 – Remuneration Report
6 – Other Information
FRAMEWORKS APPLIED
The BMW Group Report is based on the following reporting and
accounting standards.
Combined Management Report
The Combined Management Report is based on the following le-
gal frameworks:
—
German Commercial Code (HGB) (among other relevant
legislation)
—
Content of the Management Report in accordance with
§§ 289 and 315 HGB
—
Combined Non-Financial Statement (NFS) at Group and
Company level in accordance with §§ 289 b and
315 b HGB (↗ Sustainability Statement)
—
German Accounting Standards (GAS 20) underpinning
HGB requirements
—
German Stock Corporation Act (AktG)
—
Taxonomy Regulation (Regulation (EU) 2020 /852 of the
European Council and of the European Parliament on the
Establishment of a Framework to Facilitate Sustainable
Investment, and amending Regulation (EU) 2019 /2088)
and its delegated acts (↗ EU Taxonomy)
ABOUT THIS REPORT
6
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
About This Report
The Non-Financial Statement (NFS), in the form of the Sustain-
abilityStatement, will be prepared for the first time based on the
following regulations:
—
Delegated Regulation on the European Sustainability
Reporting Standards (ESRS)
SASB Standards according to the Sustainable Accounting
Standards Board ↗ SASB Index. Further information on the appli-
cation of the ESRS in the NFS can be found in the ↗ Principles and
General Disclosures.
The Combined Management Report is also based on:
—
Guidelines on Alternative Performance Measures issued by
the European Securities and Markets Authority (ESMA)
—
German Corporate Governance Code (GCGC)
BMW AG Group Financial Statements
The Group Financial Statements of Bayerische Motoren Werke
Aktiengesellschaft for the year ended 31 December 2024 have
been prepared in accordance with the International Financial Re-
porting Standards (IFRS) as endorsed by the European Union
(EU) and the supplementary requirements of § 315 g HGB.
ADDITIONAL INFORMATION
ON THE REPORT
Publication and scope
The BMW Group Report is published annually to coincide with
the BMW Group Annual Conference and is subsequently avail-
able in both German and English on the BMW Group website.
The reporting period covers the financial year from 1 January to
31 December 2024. The statements made in the report gener-
ally relate to the BMW Group reporting entity. Any deviations are
marked accordingly. The BMW Group Report 2025 will be pub-
lished in March 2026.
External audit
The report, comprising the Combined Management Report and
the Group Financial Statements, has been subject to an annual
independent
audit
by
PricewaterhouseCoopers
GmbH
Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, Munich
branch (“PwC” or “Auditor”). Unaudited sections are marked ac-
cordingly. The external audit serves to underpin the reliability and
trustworthiness of the information contained therein for the pub-
lic. The external audit supports the Supervisory Board of BMW
AG in fulfilling its auditing duties. Any links and disclosures that
refer to information outside the BMW Group Report are not part
of the audit. The ↗ Remuneration Report 2024 was prepared in ac-
cordance with the requirements of § 162 of the German Stock
Corporation Act (AktG) and its content audited by PwC.
PwC has audited the Group Financial Statements and the Com-
bined Management Report for the reporting year 2024 and is-
sued an unqualified audit opinion thereupon. Further information
is provided in the ↗ Independent Auditor’s Report and the ↗ Assurance
Report of the Independent German Public Auditor on Non-financial Disclo-
sures.
The general content of the Combined Management Report and
certain individual parts of the NFS were subjected to a reason-
able assurance engagement. The contents of the Sustainabil-
ityStatement, in accordance with §§ 289 b et seq. and 315 b et
seq. HGB, were subjected to an audit to obtain limited assurance.
Sustainable Development Goals
With its business operations, the BMW Group is in a position to
contribute directly to the achievement of Sustainable Develop-
ment Goals (SDGs). Information about the importance of these
goals for the BMW Group is provided on our ↗ website.
Forward-looking statements
This report contains various forward-looking statements con-
cerning future developments that are based on the current status
of the BMW Group’s assumptions and forecasts. These state-
ments are therefore subject to a variety of predictable and unpre-
dictable risks, uncertainties and other factors, which means that
the actual outcome, including that of the BMW Group’s net as-
sets, financial position and results of operations, its development
or performance, could differ considerably from those statements.
7
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
About This Report
Preparation of non-financial performance figures
Certain non-financial performance figures reported by the
BMW Group are based on a significant number of estimates and
valuations. Some are complex and subjective in nature, or sub-
ject to uncertainty for other reasons. The BMW Group is also con-
tinuously updating the policies and procedures used to calculate
its non-financial performance figures. It is not always practical to
apply new policies and procedures to prior reporting periods. Alt-
hough the methodology used to calculate indicators is in line with
standard practice, some indicators are not directly comparable
with the values reported by other companies.
The BMW Group is also required to ensure that third parties re-
port relevant data to the BMW Group correctly. These third par-
ties include independent dealerships – the overwhelming major-
ity of which report vehicle delivery* figures to the BMW Group –
and suppliers, which provide the BMW Group with data on the
implementation of agreed measures designed to reduce carbon
emissions.
Statement on Corporate Governance
The Board of Management and the Supervisory Board of BMW
AG prepare a yearly combined Statement on Corporate Govern-
ance in accordance with §§ 289 f and 315 d HGB to report on
corporate governance within the BMW Group. The Statement on
Corporate Governance is published on BMW AG’s website at
↗ www.bmwgroup.com/. It also includes the Declaration of Compli-
ance pursuant to § 161 AktG.
Identification of ESRS disclosures outside of the
Sustainability Statement
ESRS disclosure requirements are partially covered by refer-
ences in the general part of the Management Report or the Group
Financial Statements. The relevant sections and the references
themselves are identified using the symbols » «.
Editorial comments
Key figures presented in the report have been rounded in accord-
ance with standard commercial practice. In individual cases, this
may mean that figures do not add up exactly to the stated total
and that percentages cannot be derived from the values shown.
Summarised disclosures of fuel consumption, carbon emissions
and electricity consumption are provided in the section
↗ Consumption and Carbon Disclosures.
* See ↗ Glossary for a definition of deliveries.
TO OUR
STAKEHOLDERS
01
8
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
9
BMW Group in Figures
13
Report of the Supervisory Board
22
Statement of the Chairman of the Board of Management
30
The Board of Management
31
Composition of the Board of Management and Supervisory Board
35
Stakeholders and Capital Markets
9
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
BMW Group in Figures
KEY PERFORMANCE INDICATORS
2020
2021
2022
2023
2024
Change in %
G R O U P
Profit/loss before tax in € million
5,222
16,060
23,509
17,096
10,971
– 35.8
Employees at year-end1
120,726
118,909
149,475
154,950
159,104
2.7
Share of women in management positions in %2
17.8
18.8
20.2
20.8
21.7
4.3
CO2e emissions Scope 1 and 2 in million tonnes3
–
–
–
–
0.81
–
A U T O M O T I V E S E G M E N T
EBIT margin in %
2.7
10.3
8.6
9.8
6.3
– 35.7
RoCE in %4
12.7
24.0
18.1
20.2
11.4
– 43.6
Deliveries5
2,325,179
2,521,514
2,399,632
2,554,183
2,450,854
– 4.0
Share of all-electric cars in deliveries in %
1.9
4.1
9.0
14.7
17.4
18.4
CO2e emissions from the supply chain - Scope 3 in million tonnes6
–
–
–
–
125.1
–
CO₂ emissions of the EU new vehicle fleet in g/km7
99.1 (135.0) 8
115
105.0
102.1
99.5
– 2.5
CO2e emissions per vehicle produced (Scope 1 and 2 of BMW Group locations) in tonnes9
0.35
0.33
0.32
0.28
0.27
– 3.6
M O T O R C Y C L E S S E G M E N T
EBIT margin in %
4.5
8.3
8.1
8.1
6.1
– 24.7
RoCE in %10
15.0
21.9
24.9
22.1
15.5
– 29.9
Deliveries
169,272
194,261
202,895
209,066
210,385
0.6
F I N A N C I A L S E R V I C E S S E G M E N T
RoE in %
11.2
22.6
17.9
17.2
15.1
– 12.2
1 According to ESRS reporting, non-consolidated companies will be excluded from the financial year 2025 onwards (until 31.12.2024: all consolidated and non-consolidated companies in which the BMW Group holds more than 50% of the shares). For 2024, the figure for the consolidated companies is
157,457. Both key indicators do not include the joint operation Spotlight.
2 The change in the number of employees from the financial year 2025 onwards (see footnote 1) also applies to the share of women. For 2024, the figure for the consolidated companies is 21.6%. The joint operation Spotlight is not included.
3 New key performance indicator from the financial year 2025 onwards. Excl. sites without operational control, incl. biogenic emissions. See ↗ Glossary and Explanations of Key Figures for the definition.
4 The term “RoCE” has been redefined with effect from the reporting year 2022 (for definition, see ↗ Glossary). The 2021 figure was adjusted accordingly for comparison purposes (2021 before adjustment: 59.9%).
5 Deliveries including BMW Brilliance Automotive Ltd., also for the period prior to full consolidation in the Group Financial Statements (2020: 602,247 units, 2021: 651,236 units, 1 January to 10 February 2022: 96,133 units).
6 New key performance indicator from the financial year 2025 onwards. Comprises the scope 3 categories purchased goods and services, transport logistics, utilisation phase, incl. biogenic emissions. See ↗ Glossary and Explanations of Key Figures for the definition.
7 EU-27 countries including Norway and Iceland; with effect from 2021, values are calculated on a converted basis in line with WLTP (Worldwide Harmonised Light Vehicles Test Procedure), values for 2020 were calculated based on the New European Driving Cycle (NEDC).This is a preliminary internal
calculation with a potential variation of +/– 0.5 g CO2/km, as official registration figures from the authorities are not available for all EU states. Figures officially published by the EU Commission are not expected to be available until November of the following year. Including an allowance for eco-innovations
(amounts of clearly minor significance).
8 To improve comparability, the 2020 NEDC figures were converted to WLTP after adjusting for permissible flexibilities – specifically from 99 g CO2/km according to NEDC (including 5 g CO2/km phase-in, 7.5 g CO2/km supercredits and 2.4 g CO2/km eco-innovations) to 135 g CO2/km according to WLTP
(excluding flexibilities). In 2020, a phase-in regulation was accepted, as was the recognition of supercredits, which ceased in 2021.
9 See ↗ Glossary and Explanations of Key Figures for the definition.
10 The term “RoCE” has been redefined with effect from the reporting year 2022 (for definition, see ↗ Glossary). The 2021 figure was adjusted accordingly for comparison purposes (2021 before adjustment: 35.9%).
BMW GROUP IN FIGURES
10
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
BMW Group in Figures
OTHER FINANCIAL PERFORMANCE FIGURES
2020
2021
2022
2023
2024
Change in %
G R O U P
Pre-tax return on sales in %1
5.3
14.4
16.5
11.0
7.7
– 30.0
Post-tax return on sales in %2
3.9
11.2
13.0
7.8
5.4
– 30.8
Earnings in € per share of common stock/preferred stock
5.73/5.75
18.77/18.79
27.31/27.33
17.67/17.69
11.62/11.64
–34.2/–34.2
Total capital expenditure3
6,222
7,518
10,610
11,440
12,581
10.0
Depreciation and amortisation
6,143
6,495
8,566
8,974
8,650
– 3.6
Capital expenditure ratio (excluding right-of-use assets and excluding
capitalised development costs)4
3.6
3.9
4.3
4.9
5.7
16.3
Capitalisation rate5
36.6
36.5
39.3
33.6
38.8
15.5
Research and development expenditure ratio6
6.3
6.2
5.0
5.0
6.4
28.0
S E G M E N T A U T O M O T I V E
Free cash flow
3,395
6,354
11,071
6,942
4,852
– 30.1
1 Group profit before tax as a percentage of Group revenues.
2 Group net profit as a percentage of Group revenues.
3 Expenditure for capitalised development costs, other intangible assets and property, plant and equipment.
4 Investments in property, plant and equipment (excluding right-of-use assets in accordance with IFRS 16) and other intangible assets (excluding capitalised development costs) as a percentage of Group revenues.
5 Capitalised development costs as a percentage of research and development expenditure.
6 Research and development expenditure as a percentage of Group revenues.
11
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
BMW Group in Figures
OTHER FINANCIAL PERFORMANCE FIGURES
in € million
2020
2021
2022
2023
2024
Change in %
Group revenues
98,990
111,239
142,610
155,498
142,380
– 8.4
Automotive
80,853
95,476
123,602
132,277
124,917
– 5.6
Motorcycles
2,284
2,748
3,176
3,214
3,220
0.2
Financial Services
30,044
32,867
35,122
36,227
38,562
6.4
Other Entities
3
5
8
11
14
27.3
Eliminations
– 14,194
– 19,857
– 19,298
– 16,231
– 24,333
49.9
Group profit/loss before financial result (EBIT)
4,830
13,400
13,999
18,482
11,509
– 37.7
Automotive
2,162
9,870
10,635
12,981
7,893
– 39.2
Motorcycles
103
227
257
259
198
– 23.6
Financial Services
1,721
3,701
3,163
3,055
2,511
– 17.8
Other Entities
36
– 8
– 203
– 13
– 25
92.3
Eliminations
808
– 390
147
2,200
932
– 57.6
Group profit/loss before tax (EBT)
5,222
16,060
23,509
17,096
10,971
– 35.8
Automotive
2,722
11,805
18,918
12,642
7,544
– 40.3
Motorcycles
100
228
269
258
198
– 23.3
Financial Services
1,725
3,753
3,205
2,962
2,538
– 14.3
Other Entities
– 235
531
995
– 100
837
–
Eliminations
910
– 257
122
1,334
– 146
–
Group income taxes
– 1,365
– 3,597
– 4,927
– 4,931
– 3,293
– 33.2
Profit/loss from continuing operations
3,857
12,463
18,582
12,165
7,678
– 36.9
Group net profit/loss
3,857
12,463
18,582
12,165
7,678
– 36.9
Attributable to shareholders of the BMW AG
3,775
12,382
17,941
11,290
7,290
– 35.4
12
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
BMW Group in Figures
OTHER NON-FINANCIAL PERFORMANCE FIGURES
2020
2021
2022
2023
2024
Change in %
G R O U P
Spending on employee training and development (in € million)1
279
389
416
469
415
– 11.5
A U T O M O T I V E S E G M E N T
Deliveries by brand
BMW2
2,028,841
2,213,790
2,100,689
2,252,793
2,200,217
– 2.3
MINI
292,582
302,138
292,922
295,358
244,925
– 17.1
Rolls-Royce
3,756
5,586
6,021
6,032
5,712
– 5.3
Total2
2,325,179
2,521,514
2,399,632
2,554,183
2,450,854
– 4.0
thereof all-electric vehicles
44,541
103,854
215,752
375,716
426,536
13.5
Share of electrified cars in total deliveries
8.3
13.0
18.1
22.2
24.2
9.0
Production by brand
BMW3
1,980,740
2,166,644
2,089,801
2,340,547
2,229,009
– 4.8
MINI
271,121
288,713
286,265
315,196
278,897
– 11.5
Rolls-Royce
3,776
5,912
6,239
6,179
5,924
– 4.1
Total3
2,255,637
2,461,269
2,382,305
2,661,922
2,513,830
– 5.6
Energy consumption per vehicle produced (in MWh)4
2.12
2.10
2.13
1.97
1.94
– 1.5
M O T O R C Y C L E S S E G M E N T
Production
BMW
168,104
187,500
215,932
221,988
215,727
– 2.8
F I N A N C I A L S E R V I C E S S E G M E N T
New contracts financed or leased vehicles
1,845,271
1,956,514
1,545,490
1,542,514
1,693,876
9.8
1 See ↗ Glossary and Explanations of Key Figures for the definition.
2 Deliveries including BMW Brilliance Automotive Ltd. also for the period prior to full consolidation in the Group Financial Statements (2020: 602,247 units, 2021: 651,236 units, 1 January to 10 February 2022: 96,133 units).
3 Production including BMW Brilliance Automotive Ltd. also for the period prior to full consolidation in the Group Financial Statements (2020: 602,935 units, 2021: 700,777 units, 1 January to 10 February 2022: 58,507 units).
4 See ↗ Glossary and Explanations of Key Figures for the definition.
Norbert Reithofer
Chairman of the Supervisory Board
13
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Combined Management Report
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Report of the Supervisory Board
DEAR SHAREHOLDERS,
In the financial year 2024, the BMW Group performed well in a highly competitive environ-
ment characterised by challenging geopolitical and macroeconomic conditions. We achieved
our targets as revised in September with a combination of stringent management and a
strong team performance. Our well-balanced global positioning enabled us to alleviate the
pressure caused by the broad variety of changes taking place in our key sales markets. At
the same time, our commitment to technology openness proved to be the right approach.
By significantly growing the number of all-electric vehicles sold, the BMW Group also
achieved a great deal in terms of sustainability. Our vehicle fleet in Europe once again at-
tained figures below the EU’s target limit for fleet carbon emissions in 2024.
We have ambitious plans for 2025 and beyond in light of the rapidly approaching launch of
the NEUE KLASSE. We are convinced that this will mark a key milestone in the history of the
BMW Group. In 2025, your Company will continue to adapt dynamically to changes, with its
sights firmly set on long-term success. Our innovative and attractive range of products, cou-
pled with a well-balanced distribution of value creation, will lay the foundations for this suc-
cess.
REPORT OF THE
SUPERVISORY BOARD
14
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
Focus of Supervisory Board activities during the past financial year
The Supervisory Board performed the duties incumbent upon it with the utmost diligence
throughout the financial year 2024.
We continuously and thoroughly monitored the governance of the BMW Group based on in-
depth reports received from the Board of Management. We also advised the Board of Man-
agement on key management issues as well as on the Group’s strategic development. At
each of the five plenary sessions of the Supervisory Board (including one two-day meeting),
we held detailed discussions with the Board of Management regarding the BMW Group’s
position. The Board of Management also kept the Supervisory Board well informed regard-
ing any matters of particular significance outside the framework of formal meetings. Fur-
thermore, I discussed matters personally and on a regular basis with the Chairman of the
Board of Management. In addition, the Chairman of the Audit Committee maintained a di-
rect line of contact with the Board of Management member responsible for Finance as well
as with the external auditor’s representatives outside of meetings. We regularly dealt with
internal Supervisory Board issues and personnel-related matters without the presence of
the Board of Management. Our cooperation, both within the Supervisory Board and its
committees and with the Board of Management, was conducted in a spirit of trust, respect
and constructiveness. As a general rule, the members received detailed documents on the
topics of the meetings in advance. In addition, separate preliminary meetings of the share-
holder and employee representatives were held on a regular basis prior to Supervisory
Board meetings.
In its reports on the BMW Group’s position, the Board of Management kept us well in-
formed at each meeting regarding current developments and the Group’s overall perfor-
mance. We were provided with information on current sales trends for both the BMW Group
and its competitors, based on figures analysed by brand, segment and market region.
There was also a keen focus on electric vehicles as well as on the Group’s key financial indi-
cators and liquidity situation.
The BMW Group’s corporate strategy, also with regard to sustainability, was the subject of
comprehensive examination by the Supervisory Board. After analysing the impact of geopo-
litical developments on the BMW Group, the Board of Management elaborated on the stra-
tegic focus areas of drivetrain strategy, digitalisation and sustainability, emphasising just
how important our flexible drivetrain strategy will be as we seek to exploit future growth op-
portunities. With regard to electrification, the Board of Management outlined the efficiency
improvements made in battery technology and the importance of cooperation initiatives for
charging infrastructure. We also discussed the merits of hydrogen fuel cell technology. The
strategic focus area of digitalisation relates to our products, customers and processes in
particular, and encompasses driver assistance systems, over-the-air updates for the BMW
Group’s vehicle fleet and the digital transformation of our interaction with customers.
We discussed the potential that digitalisation has to offer, including artificial intelligence, and
its implementation in our business processes. In the focus area of sustainability, the Board
of Management presented the decarbonisation measures being taken in respect of our pro-
duction and sites, as well as in the supply chain and during the vehicle usage phase. Strate-
gic sales topics centred on developments in the Chinese market, the impact of EU duties on
imports of all-electric vehicles from China, the positioning of MINI products and the switch to
the new direct sales model. Furthermore, the Board of Management addressed the poten-
tial offered by other sales markets, such as India. We also looked at the competitive land-
scape and our future product portfolio.
At each meeting, the Board of Management updated us on the current status of its strat-
egy- and project-related work. The Board of Management also reported at regular intervals
on recent events, such as the BMW Group’s investments in its plants in Shenyang, China
and Spartanburg, USA, the latter including the opening of the BMW Group’s first pressing
plant in that country, receipt of the approval for a combination of Level 2 and Level 3 auton-
omous driving for the BMW Group in Germany (the first automotive manufacturer to be
granted such approval), and the Group’s successful appearance at the Auto China trade fair
in Beijing. We see the “German Car of the Year” award received for the new BMW 5 Series,
both for the model with a combustion engine and an all-electric model, as an endorsement
of our flexible drivetrain strategy. The award was based on the assessment of a panel of 40
German and international automotive journalists.
In September, the Board of Management explained its reasons for adjusting the outlook for
the financial year 2024 and discussed the Company’s relevant measures together with us.
At Supervisory Board meetings we regularly addressed the topics of sustainability and
ESG. In a report on recent developments within the BMW Group, the Board of Management
informed us, among other things, about the expansion of the partnership with Toyota aimed
at developing vehicles powered by hydrogen fuel cells. It also reported on the progress
made by the Catena-X data ecosystem (in which the BMW Group is a partner) in capturing
data-driven energy consumption measurements from the raw material to the end product
stage in one data chain. Moreover, the Board of Management reported on the timely start of
construction work for the battery assembly plant in Irlbach-Straßkirchen and on the ongoing
renovation work at the Munich plant. We also discussed the review of social and environ-
mental standards among suppliers, particularly in accordance with the German Supply
Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) and in some cases with the
involvement of external auditors. We were delighted to see the BMW Group perform so well
in the Trendence Ranking Germany 2024 on employer attractiveness, and to acknowledge
the BMW Group’s leading position among automotive manufacturers in the MSCI Implied
Temperature Rise index.
15
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
We held in-depth discussions on the topic of the circular economy with regard to purchasing
and the implementation of the BMW Group’s sustainability strategy, using the examples of
steel and battery-related raw materials.
Based on a self-assessment in the course of our work on corporate governance, we con-
cluded that the composition of the Supervisory Board at 31 December 2024 fully meets the
targets stipulated in the diversity concept and competency profile. We have also revised our
committee structure: in December 2024 and with effect from 1 January 2025, we passed a
resolution to establish a Remuneration Committee, which, on the shareholder side, will
comprise a majority of independent members. In its role as a preparatory body, the Remu-
neration Committee is responsible for reviewing the remuneration of both the Board of
Management and the Supervisory Board and the reports related thereto. The Presiding
Committee has assumed the former remit of the Presiding Board as well as responsibility
for non-remuneration-related personnel matters concerning the Board of Management.
In the Declaration of Compliance with the German Corporate Governance Code issued in
December 2024, the Board of Management and the Supervisory Board jointly confirmed
that they have complied with the recommendations of the Code as amended on 28 April
2022 without exception and will continue to fully comply with them in future.
Following a preparatory review conducted by the Presiding Committee as well as a further
review at Supervisory Board level, the Statement on Corporate Governance drawn up by the
Board of Management was approved by the Supervisory Board in March 2025.
In July 2024, the Board of Management informed us of the decision to hold the Annual
General Meeting 2025 as a face-to-face event with the physical presence of shareholders,
combined with online elements.
We also engaged in detailed discussions on the topic of compliance. Both in the Audit Com-
mittee and in the Supervisory Board, the Chief Compliance Officer used his annual report to
update us on the further development of the BMW Group’s international compliance organi-
sation, enhanced monitoring as part of the compliance risk assessment process and the on-
going measures regarding communication with BMW Group employees. He emphasised
that external certification in accordance with Auditing Standard 890 of the Institute of Public
Auditors in Germany (IDW) in November 2024 confirmed the full appropriateness and effec-
tiveness of the Compliance Management System in terms of anti-corruption and antitrust
compliance. The specific risk analysis required by law in accordance with the Supply Chain
Due Diligence Act was performed and follow-up action taken. The report also addressed the
handling of individual cases. Furthermore, the members of the Supervisory Board were pro-
vided with additional information on the topics of anti-corruption and lobbying.
Moreover, the Board of Management regularly informed the Supervisory Board regarding
the latest developments in relation to international trade policy and regulation. This in-
cluded, in particular, the current status of the European Commission’s anti-subsidy investi-
gation and of EU import duties on all-electric vehicles from China, as well as the impact of
these measures on the BMW Group. We also held regular discussions on the further devel-
opment of the EU7 emissions standard and the EU regulations on fleet carbon emissions.
Board of Management remuneration was another important issue on the Supervisory
Board’s agenda. We reviewed the target structure, maximum remuneration and expected
remuneration for the Board of Management for the financial year 2024, considering in par-
ticular the Group’s performance and the development of remuneration for senior executives
and employees in Germany over the past few years. Based on a comparative study con-
ducted by an external independent remuneration consultant and subsequent oral advice,
we concluded that the remuneration paid to Board of Management members for the finan-
cial year 2023 and the target remuneration for 2024 were appropriate. Detailed infor-
mation on the Board of Management’s remuneration for the financial year 2024 is provided
in the Remuneration Report.
In the course of the year, the Board of Management updated the members of the Supervi-
sory Board on the current level of attainment of defined financial KPIs as well as the KPIs for
our non-financial targets, including those related to ESG, such as deliveries of all-electric
automobiles, fleet carbon emissions in the EU, the BMW Group’s attractiveness as an em-
ployer and diversity.
Following thorough preparation work by the Personnel Committee, we also closely scruti-
nised the Board of Management remuneration system, which is due to be presented to the
Annual General Meeting 2025. In our deliberations, we not only took statutory requirements
into account, but also the recommendations of an independent external remuneration con-
sultant, as well as suggestions from investor representatives, market practices and remu-
neration within the BMW Group. Given that the existing remuneration system has proven to
be effective, no fundamental adjustments were required. As such, in December 2024 we
approved only isolated improvements to the existing system for the financial years from
2025 onwards. Among other things, we updated the existing Share Ownership Guidelines.
We have enclosed a summary of the main adjustments to the remuneration system with the
invitation to the Annual General Meeting 2025.
Taking this as a basis, in December 2024 we adopted the targets for the Board of Manage-
ment’s variable remuneration for the financial year 2025. The targets are based on the
BMW Group’s corporate planning for 2025, the long-range corporate planning and the ESG
targets included in the corporate strategy.
16
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
In addition to the further development of the remuneration system for the Board of Manage-
ment, we resolved for the first time in four years to increase target total remuneration mod-
erately from the financial year 2025 onwards. The maximum remuneration thresholds con-
tinue to apply unchanged. Subject to the approval of the remuneration system by the An-
nual General Meeting 2025, the Board of Management service contracts were updated with
effect from 1 January 2025.
Key topics from the Board of Management’s individual areas of responsibility were also
the subject of our deliberations. Following an introduction to the Chinese automotive mar-
ket, the competitive environment and customer requirements, the China market report gave
us an in-depth insight into the Group’s strategy for China and its implementation. The
Board of Management member responsible for Customer, Brands and Sales also provided
us with an update on the MINI brand’s transition to direct sales in the first few European
markets. In the report on supply chain resilience, the Group’s strategy and actions were ex-
plained to us against the backdrop of geopolitical challenges and regulatory requirements.
As part of a presentation on the competitive standing of the BMW Group’s production activi-
ties, we focused in particular on the global distribution of value creation and the BMW
Group’s “local for local” approach.
In the detailed risk report, we were brought up to date with the structure and working meth-
ods of the Risk Management System. A key focus of the report was on geopolitical risk sce-
narios. The Board of Management explained the processes in place for ensuring resilience
in risk management and measures to mitigate risk. With regard to information security, the
focus was placed on automotive security. We were provided with information on the auto-
motive security protection targets, the BMW Group’s strategy in this area and its protection
system. The Board of Management also reported on the strategy and its implementation,
on business performance and on the risk situation of the Financial Services segment. In the
report on the current business situation, the Board of Management member responsible for
Finance provided us with regular information on key topics relating to the Group’s treasury
system, such as funding, liquidity management, hedging strategies for price and currency
risks, and the current status of share buyback programmes.
In September, we took an in-depth look at the topic of product quality and the Group’s qual-
ity strategy. In particular, we requested the Board of Management to brief us on quality is-
sues relating to the Integrated Brake System provided by a supplier as well as on the
measures taken by the BMW Group.
In the report on Human Resources and Real Estate, we deliberated on the attractiveness of
the BMW Group as an employer, the further development of HR structures and the Group’s
potential to leverage digitalisation. The report also informed us on the current status of the
Group’s diversity concepts and the extent to which targets have been achieved regarding
the proportion of women employed at various levels of BMW AG and the BMW Group.
The BMW Group’s long-range corporate planning was the subject of comprehensive ex-
amination by the Supervisory Board. Against a backdrop of geopolitical tension, increasing
regulatory requirements and a market environment that remains volatile, the Board of Man-
agement explained the importance of the BMW Group’s flexible drivetrain strategy and its
“local for local” approach to production. A greater focus on costs serves to safeguard the
BMW Group’s independence. The Board of Management informed us about plans for the
various vehicle and corporate segments and the ambitious long-term targets. We were pre-
sented with key financial indicators for each segment, in addition to opportunities and risks
for the planning period. After thorough examination, the Supervisory Board approved the
long-range corporate planning drawn up by the Board of Management.
In December 2024, the Board of Management presented the budget for the financial year
2025. After exhaustive discussion with the Board of Management, we gave the budget our
approval.
In the run-up to the Annual General Meetings 2024 and 2025, I discussed Supervisory-
Board-specific topics with investor representatives at regular meetings and reported back
to the Supervisory Board on the results of these meetings. We also dealt with corporate
governance issues such as succession planning for the Supervisory Board with regard to
expertise and diversity, the system for the Board of Management’s remuneration and the
format of the Annual General Meeting as well as the composition and work of the commit-
tees.
In 2024, the BMW Group once again provided further training for members of the Supervi-
sory Board. During a six-day trip to China in June, covering Beijing, Shenyang and Shang-
hai, Supervisory Board members had the opportunity to visit the Group’s plants and sales
and development sites in person and obtain a first-hand impression of the competitive situ-
ation prevailing in the Chinese market. In July, we visited the Rolls-Royce Motor Cars plant in
Goodwood, UK, and learned about the special features of boutique production in the ultra-
luxury segment. In September, the members of the Supervisory Board were given an in-
depth look at the main aspects of the BMW Group’s technology, architecture and product
strategy for the period from 2025 onwards. We gained an overview of the new technologies
associated with the NEUE KLASSE from 2025 onwards in the areas of digitalisation, ulti-
mate driving, drivetrain technologies and the circular economy concept as well as with re-
gard to hydrogen technology. The members of the Supervisory Board were then presented
with new BMW, MINI and Rolls-Royce design models at the BMW M Driving Academy in
Maisach near Munich, and given the opportunity to test the vehicles personally. A keynote
speech held by an expert on US politics followed by a dialogue session allowed us to gain
insights into US policy against the background of global geopolitical trends. During a guided
tour of the BMW Group’s Cell Manufacturing Competence Centre in Parsdorf near Munich in
December 2024, we were informed about the progress being made in battery technology
and the production of high-voltage storage systems.
17
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
The onboarding programme for new Supervisory Board members was continued in 2024,
with representatives of various specialist departments taking the time to provide useful in-
sights into the key business areas as well as the planning processes deployed by the BMW
Group. The programme also included an introduction to the ongoing work of the Supervi-
sory Board.
In late 2024, we reviewed the effectiveness of the work of the Supervisory Board and its
committees with the aid of a questionnaire and discussed the findings at our subsequent
meeting. Cooperation, both within the Supervisory Board itself and with the Board of Man-
agement, was unanimously perceived as constructive and trustworthy, and the topics se-
lected for meetings and further training events were considered to be good, sensible
choices. In the course of the current financial year, we intend to act on proposals to explore
certain topics in greater depth, such as maintaining a focus on geopolitical developments
and the Chinese market as well as updating the BMW Group’s circular economy concept.
In all its deliberations and decisions, the Supervisory Board takes precautions at an early
stage to ensure that conflicts of interest are avoided. No conflicts of interest arose in the fi-
nancial year 2024.
Description of Presiding Board activities and committee work
During the financial year 2024, the Supervisory Board had a Presiding Board and four com-
mittees. The Chairman of the Audit Committee, Dr Bock and myself reported in detail on the
work of the Presiding Board and the other committees at the following Supervisory Board
meeting. Further information on the duties, composition and working methods of the Super-
visory Board committees is provided in the Statement on Corporate Governance on the
BMW Group website.
Unless a particular committee was responsible, the Presiding Board prepared the topics for
the plenary sessions at its four meetings in cooperation with the Board of Management. It
also put forward proposals for reporting within the Supervisory Board. The Presiding Board
focused on the BMW Group’s corporate strategy and the strategy’s sustainability-related
aspects, in addition to long-range corporate planning. The Group’s current business posi-
tion was discussed in detail at each of the meetings of the Presiding Board. In preparation
for the topic of “Say on Pay” at the Annual General Meeting 2025, the Presiding Board also
took into account a market comparison of supervisory board remuneration.
The Audit Committee convened eight times in total during the financial year 2024.
In March 2024, the focus was on preparing for the Supervisory Board meeting at which the
financial statements and the non-financial statement for the financial year 2023 were dis-
cussed and examined. After verifying the matter of independence, the Audit Committee rec-
ommended to the Supervisory Board that PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft (“PwC”) be elected auditor at the Annual General Meeting
2024. There were no indications of conflicts of interest, grounds for exclusion or lack of in-
dependence on the part of the auditor.
The Audit Committee concluded that PwC’s fee proposal for the audit of the Company and
Group Financial Statements and the BMW Group Report 2024, as well as for the review of
the Half-Year Report 2024, was appropriate in light of the scope of its tasks. The Commit-
tee therefore issued the corresponding contracts to PwC following its election at the Annual
General Meeting held in May 2024. The Audit Committee also specified supplementary au-
dit focus areas. Moreover, it approved the scope of the non-audit services to be performed
by PwC and received regular reports regarding these services. At its meetings, the Audit
Committee discussed the quality of the audit at regular intervals. In particular, it received a
report from the relevant department on the Group’s experience with the audit of the finan-
cial statements for the financial year 2023 as well as on the results of a survey conducted
within the Group for this purpose. Based on this report, the auditor’s description of the qual-
ity assurance processes and measures undertaken, and the Audit Committee’s own experi-
ence with the auditor, the audit was found to be of good quality.
The Audit Committee also examined the combined Non-financial Statement of BMW AG
and the BMW Group for the financial year 2023, which was part of the BMW Group Report
2023, and had representatives from PwC explain the results of their assurance engage-
ment. For the financial year 2024, PwC was again engaged to report on the disclosures in
the Non-financial (Group) Statement on a “limited assurance” basis (with the exception of
specific key indicators within the Sustainability Report that are required to be reported on a
“reasonable assurance” basis). Going beyond the formal review required by law, the Audit
Committee also engaged PwC to audit the contents of the Remuneration Report for the fi-
nancial year 2024.
We were regularly updated about the reporting obligations arising in conjunction with the
EU Corporate Sustainability Reporting Directive and the European Sustainability Reporting
Standards as well as on the status of implementation within the Group and the assurance
work performed by the external auditor. We also addressed the status of the legislative pro-
cess in Germany for implementing the Directive.
The Board of Management presented the Half-Year Report and the Quarterly Statements
to us prior to publication and discussed them with us. These meetings were also used to
discuss key financial indicators and the development of free cash flow. Representatives of
the external auditors were also present when the Half-Year Report was discussed in early
August 2024.
At its meeting held in June, the Audit Committee considered the effectiveness and appropri-
ateness of the BMW Group’s Internal Control System (including the Corporate Audit function
18
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
and the Compliance Management System) and the Risk Management System. The head of
Corporate Audit reported on the overarching audit focus areas and key audit findings, as
well as the plans for further internal audits. We also received updates from the responsible
head of department on the Internal Control System for accounting as well as on the Tax and
Customs Control System in place across the BMW Group. In his half-year report, the Chief
Compliance Officer of the BMW Group reported to us in particular on the further develop-
ment of the Compliance Management System and the international compliance organisa-
tion. Furthermore, he explained the preparatory work for, and the implementation of, the ex-
ternal certification process for the Compliance Management System. As far as operational
topics were concerned, he focused in particular on the implementation of export control re-
quirements and the specific supply-chain-related risk analysis as well as the further devel-
opment of the product compliance management system. The report also addressed the
handling of individual cases and relevant official procedures related to compliance. The Au-
dit Committee also scrutinised the annual compliance report (see Compliance section
above). Risk reporting was conducted on a half-yearly basis. In addition to the main risks to
which the BMW Group is exposed and the classification of those risks, particular emphasis
was placed on geopolitical risk scenarios, especially for supply chains and sales markets, as
well as risk-mitigating measures. We also discussed risks related to sustainability and the
further development of the Internal Control System for non-financial reporting with regard to
the Group’s sustainability-related targets.
In its report on the audit of over-the-counter derivatives entered into by BMW AG during the
financial year 2023, the external auditor confirmed to the Audit Committee the effectiveness
of the system in place at BMW AG in complying with the regulatory requirements of the Eu-
ropean Market Infrastructure Regulation.
The Audit Committee received regular reports on the current status and development of sig-
nificant legal proceedings and internal investigations and, in individual cases, discussed
product- and emissions-related proceedings with external legal advisors brought in for that
purpose.
In its role as a preparatory body, the Personnel Committee convened four times to deliber-
ate on the remuneration of, and succession planning for, the Board of Management. In par-
ticular, it prepared the review and further development of certain aspects of the Board of
Management remuneration system with the support of an independent external remunera-
tion consultant. Thorough preparatory work was also performed with respect to the review
of the appropriateness of the Board of Management’s remuneration for the financial year
2023 and the target remuneration for 2024, as well as the determination of the factors for
the Board of Management’s variable remuneration for 2023 and the outlook for 2024. The
proposals for setting financial and non-financial targets, including ESG targets, for the
Board of Management remuneration for the financial year 2025 were also discussed in
great depth. The renewal of the anticipatory resolution on the approval of loans and trans-
actions by BMW Bank GmbH was also on the Personnel Committee’s agenda.
The Nomination Committee held one meeting in the financial year 2024, in which it dis-
cussed the composition of the Supervisory Board and succession planning for the share-
holder representatives. Taking into account the composition, targets adopted by the Super-
visory Board and the recommendations of the German Corporate Governance Code, the
Nomination Committee issued recommendations for the Supervisory Board’s election pro-
posals to the Annual General Meeting to be held in 2025. Dr Nicolas Peter, former member
of the Board of Management responsible for Finance, was nominated as a new candidate
for election to the Supervisory Board after a two-year cooling-off period.
I had previously announced my intention to step down at the end of the Annual General
Meeting 2025 after serving ten years on the Supervisory Board and 38 years with the BMW
Group. At its subsequent meeting, the Supervisory Board also discussed the succession
question regarding the chair position of the Supervisory Board at the end of the Annual
General Meeting 2025. The members of the Supervisory Board agreed to elect Dr Peter as
their chairman as well as to the other committee positions that I currently hold in the event
of his election to the Supervisory Board.
The Mediation Committee, which is prescribed by law, did not need to convene during the
financial year 2024.
Composition of the Board of Management
In the financial year 2024, the Supervisory Board decided to extend the mandate of Dr Joa-
chim Post, Member of the Board of Management responsible for the Purchasing and Sup-
plier Network.
Composition of the Supervisory Board, the Presiding Board and the Supervisory
Board’s committees
There were no changes to the composition of the shareholder representatives on the Su-
pervisory Board in the past year. At the Annual General Meeting 2024, the shareholders re-
elected Dr h.c. Susanne Klatten, Stefan Quandt and Dr Vishal Sikka to the Supervisory
Board for a further term of office of approximately four years. Stefan Quandt was elected as
Deputy Chairman of the Supervisory Board and, in this role, is a member of the Presiding
Board (since 1 January 2025: Presiding Committee) in accordance with the rules of proce-
dure. He was also elected as a member of the Audit Committee, the Personnel Committee,
the Mediation Committee and the Nomination Committee. Dr h.c. Klatten was also elected
to the Nomination Committee.
The composition of the employee representatives on the Supervisory Board changed as a
result of elections held in accordance with the German Co-Determination Act (Mitbes-
timmungsgesetz). Christiane Benner, Bernhard Ebner and Johann Horn left the Supervisory
19
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
Board with effect from the end of the Annual General Meeting 2024. Professor Dr Johanna
Wenckebach, Ulrich Bauer and Horst Ott were elected as new members of the Supervisory
Board. Their terms of office began at the end of the Annual General Meeting 2024. Dr Mar-
tin Kimmich was elected as first deputy chair and Stefan Schmid as a further deputy chair of
the Supervisory Board. In these roles, they are members of the Presiding Board (since 1
January 2025: Presiding Committee) in accordance with the rules of procedure. They were
both also elected to the Audit and Personnel Committees. Dr Dominique Mohabeer was
also elected to the Audit Committee and Stefan Schmid to the Mediation Committee. Upon
his retirement, Gerhard Kurz stepped down as senior executive representative on the Su-
pervisory Board with effect from 31 October 2024. He was succeeded by the elected sub-
stitute member Dr Michael Nikolaides with effect from 1 November 2024. We would like to
thank the former members for their trusting and constructive cooperation and, in the case of
Christiane Benner, for her many years of service.
At the meeting held in December, Dr Dominique Mohabeer, Anke Schäferkordt, Dr Martin
Kimmich, Stefan Quandt, Stefan Schmid and Dr Kurt Bock were elected to the Remunera-
tion Committee, which was newly created with effect from 1 January 2025. As Chairman of
the Supervisory Board, I am also a member and Chairman of the Remuneration Committee
in accordance with the rules of procedure.
Disclosure of attendance at meetings by individual members
The attendance rate at Supervisory Board meetings was 96%, while attendance at the
meetings of the committees and the Presiding Board was 100% in each case. The meet-
ings were held in person, with individual members participating virtually in justified excep-
tional cases. Three meetings of the Audit Committee that dealt with the Half-Year Report
and the Quarterly Statements respectively were held as hybrid meetings, with individual
members connected by video call as planned. Individual meeting attendance can be seen in
the table on the right.
1 Member of the Supervisory Board until 15 May 2024.
2 Member of the Supervisory Board since 15 May 2024.
3 Member of the Supervisory Board until 31 October 2024.
4 Member of the Supervisory Board since 1 November 2024.
Meetings
Attendance
Attendance in %
Members of the
Supervisory Board
Plenum
Presiding
Board/
Committees
Plenum
Presiding
Board/
Committees
Plenum
Presiding
Board/
Committees
Norbert Reithofer
5
17
5
17
100
100
Martin Kimmich
5
16
5
16
100
100
Stefan Quandt
5
17
5
17
100
100
Stefan Schmid
5
16
5
16
100
100
Kurt Bock
5
17
5
17
100
100
Ulrich Bauer2
4
–
4
–
100
–
Christiane Benner1
1
–
1
–
100
–
Marc Bitzer
5
–
5
–
100
–
Bernhard Ebner1
1
–
1
–
100
–
Rachel Empey
5
8
5
8
100
100
Heinrich Hiesinger
5
–
5
–
100
–
Johann Horn1
1
–
1
–
100
–
Susanne Klatten
5
1
5
1
100
100
Jens Köhler
5
–
5
–
100
–
Gerhard Kurz3
4
–
3
–
75
–
André Mandl
5
–
4
–
80
–
Dominique Mohabeer
5
8
5
8
100
100
Michael Nikolaides4
1
–
1
–
100
–
Horst Ott2
4
–
3
–
75
–
Anke Schäferkordt
5
–
5
–
100
–
Christoph M. Schmidt
5
–
5
–
100
–
Vishal Sikka
5
–
4
–
80
–
Sibylle Wankel
5
–
5
–
100
–
Johanna Wenckebach2
4
–
4
–
100
–
20
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
Review of financial statements and the profit distribution proposal
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC) was appointed ex-
ternal auditor for the financial year 2024. PwC initially conducted a review of the condensed
Interim Group Financial Statements and the Interim Group Management Report for the first
half of 2024 and presented its results to the Audit Committee. No issues were identified
which might indicate that the condensed Interim Group Financial Statements and Interim
Group Management Report had not been prepared in accordance with the applicable provi-
sions in all material respects.
The Company Financial Statements and the Group Financial Statements of BMW AG for the
financial year ended 31 December 2024, including the Combined Management Report, on
which PwC has issued unqualified audit opinions, were authorised by the Board of Manage-
ment on 11 March 2025. These audit opinions were signed for the first time by Ralf Räpple
and, for the third time in succession, by Michael Popp as the independent auditor
(Wirtschaftsprüfer) responsible for the performance of the engagement.
At its meeting held on 27 February 2025, the Audit Committee initially discussed thor-
oughly the preliminary version of the Company and Group Financial Statements and the
Combined Management Report (including the combined Non-financial (Group) Statement
and the information on the EU Taxonomy) as well as the draft versions of the auditor’s long-
form reports.
Immediately after authorising their issue, the Board of Management submitted the Com-
pany and Group Financial Statements for the financial year 2024 and the Combined Man-
agement Report (including the Combined Non-financial (Group) Statement) to the Supervi-
sory Board. The auditor’s long-form audit reports were also submitted to the Supervisory
Board in a prompt manner. The Supervisory Board had previously received these docu-
ments in draft form in advance to allow for thorough preparation.
At its meeting held on 12 March 2025, the Audit Committee diligently examined and delib-
erated on these documents before they were considered thoroughly at the Supervisory
Board’s plenary session on 13 March 2025.
At the two respective meetings, the Board of Management provided a detailed explanation
of the reporting documents submitted to the Audit Committee and the Supervisory Board.
The representatives of the external auditor reported on the main results of their audit and
answered questions put to them by members of the Audit Committee and the Supervisory
Board, partially without the members of the Board of Management being present. Both the
Audit Committee and the Supervisory Board gave meticulous consideration to the key audit
matters and the related audit procedures.
The representatives of the external auditor confirmed that the Risk Management System
established by the Board of Management is suitable for the early detection of developments
that could threaten the Company’s going-concern status. They also confirmed that no ma-
terial weaknesses in the Internal Control System and Risk Management System were identi-
fied with regard to the financial reporting process. In the course of their audit work, they did
not identify any facts inconsistent with the contents of the Declaration of Compliance pursu-
ant to § 161 of the German Stock Corporation Act (AktG) jointly issued by the Board of
Management and the Supervisory Board.
Based on a thorough examination conducted by the Audit Committee and the Supervisory
Board, we concurred with the results of the external audit. In accordance with the final result
of this examination, no objections were raised. At our meeting held on 13 March 2025, we
accordingly approved the Group and Company Financial Statements of BMW AG for the fi-
nancial year 2024. The Company Financial Statements for the year ended 31 December
2024 have therefore been adopted.
Furthermore, in both the Audit Committee and the Supervisory Board, we examined the
Board of Management’s proposal to use the unappropriated profit to pay a dividend of
€ 4.30 for each share of common stock entitled to receive a dividend and € 4.32 for each
share of preferred stock entitled to receive a dividend and to transfer the remaining amount
to other revenue reserves. We consider the proposal appropriate and have therefore ap-
proved it.
The Audit Committee and the Supervisory Board also carefully examined the combined
Non-financial (Group) Statement for the year ended 31 December 2024. Following an in-
depth explanation of the statement by the Board of Management, representatives of the
auditor PwC presented the key results of their assurance engagement and answered ques-
tions posed by members of the Supervisory Board. PwC performed a “limited assurance”
engagement with respect to the Combined Non-financial (Group) Statement integrated into
the Sustainability Report chapter of the Management Report. Specific key indicators dis-
closed in the Sustainability Report were audited to a “reasonable assurance” level. An Inde-
pendent Practitioner’s Report with an unqualified assurance opinion was issued on the
Non-financial Statement, signed for the first time by the independent auditor Ralf Räpple
(Wirtschaftsprüfer) and for the third time in succession by the independent auditor Michael
Popp (Wirtschaftsprüfer). The Supervisory Board acknowledged and approved the com-
bined Non-financial (Group) Statement drawn up by the Board of Management.
The Supervisory Board drew up the Remuneration Report for the financial year 2024 to-
gether with the Board of Management in accordance with § 162 AktG, after preparatory
work performed by the Remuneration Committee. Going beyond the formal review required
by law, the Audit Committee also engaged PwC to audit the contents of the Remuneration
Report. In line with the newly defined responsibilities, representatives of the auditor reported
21
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Report of the Supervisory Board
firstly to the Remuneration Committee and then to the Supervisory Board on the results of
the audit, and confirmed that the Remuneration Report complies in all material respects
with the reporting provisions contained in § 162 AktG.
Expression of appreciation by the Supervisory Board
Due to their strong collaborative efforts and the considerable dedication shown during the
past financial year, the members of the Board of Management and the employees of the
BMW Group worldwide were once again successful in maintaining the BMW Group's strong
market position. We therefore wish to express our deep thanks and appreciation to all of
them.
We are confident that in 2025, with their innovative strength, their willingness to deliver out-
standing performance and their resolute team spirit, the Board of Management and the en-
tire workforce will continue to successfully drive the future of mobility with the NEUE
KLASSE.
Munich, March 2025
On behalf of the Supervisory Board
Norbert Reithofer
Chairman of the Supervisory Board
Oliver Zipse
Chairman of the Board
of Management
22
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
The BMW way: robust, dependable and future-focused –
keeping your Company on track for success.
DEAR SHAREHOLDERS,
LADIES AND GENTLEMEN:
Every era brings its own challenges. Your Company finds answers, offering meaningful solu-
tions and consistently charting its own course – profitably, with confidence and a clear focus
on the future. Our actions are grounded in over 100 years of expertise and market experi-
ence, a passion for individual mobility and our inherent ability to innovate. By anticipating
market developments early, we consistently achieve major technological leaps at the right
time, unlocking new potential for the entire Company. We are digitalising our business pro-
cesses and our products – also by leveraging the vast possibilities of artificial intelligence.
STATEMENT OF THE
CHAIRMAN OF THE
BOARD OF MANAGEMENT
23
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
We take a long-term approach to preparing for breakthrough innovations, making targeted
investments in our future. In 2024, our investments reached new heights, with research and
development expenditure of more than € 9 billion and capital expenditure of over € 11.8 bil-
lion. In the coming years, these upfront investments in electrification, digitalisation, our pro-
duction network, our product portfolio and the NEUE KLASSE will fully pay for themselves –
exactly as we planned.
BMW NEUE KLASSE –
decided in 2020, start of production in 2025.
In 2020 – in the middle of the global pandemic – the Board of Management committed to a
completely new BMW product range. Later this year, the first model of the NEUE KLASSE –
a Sports Activity Vehicle in the high-volume X segment – will roll off the production line at an
entirely new plant. This will be followed shortly afterwards by a Sedan in the current BMW 3
Series segment from our main plant in Munich. The NEUE KLASSE will then be rolled out
across our global production network. A total of at least six NEUE KLASSE models should
be launched within 24 months of the start of production. No other manufacturer currently
has a remotely comparable future-facing project ready for release onto the market, like we
do with the NEUE KLASSE.
The NEUE KLASSE exemplifies our long-term approach – strategically planning implemen-
tation of our goals and executing them step by step, leveraging our financial strength, oper-
ational excellence and strong team spirit.
In this way, visions quickly become reality, improving the everyday lives of our customers
around the world. All of us at the BMW Group are eagerly anticipating the next milestone in
our Company’s history this year. What we announce, we bring to the roads – in the truest
sense of the word – consistently and without excuses. This makes your Company stable
and dependable in a highly volatile environment.
Technology-open and market-oriented: our strategic approach prevails.
If we look around our industry worldwide, there have been plenty of announcements and
promises. Electromobility was long seen as the only path to the future – partly because it
aligned with the prevailing mindset. Now, many manufacturers are reversing course and ad-
justing their strategy.
Your Company does not need to do that. We took a firm position from the beginning, even in
the face of headwinds.
We did so out of conviction – and because the facts and business logic said something dif-
ferent. It is our technology-open approach that delivers a rapid climate impact in the here
and now. Across all markets and regions, we exploit the available potential to the best of
our ability: whether that means highly efficient internal combustion engines, plug-in hybrids
or all-electric vehicles – or, from 2028 on, a production vehicle powered by a hydrogen fuel
cell. This is why we deepened our partnership with Toyota last year.
Customers and markets develop in different ways and at different speeds. Anyone who ig-
nores this is passing up market opportunities. For this reason, we will continue to provide
the right options for different mobility needs worldwide, across all segments and technolo-
gies.
“BMW – late winner of the drivetrain transition”.
The idea of technology openness has since become firmly established among policymak-
ers, the media and the public. It ultimately combines the exact two components our econ-
omy and society need equally on the road to climate neutrality: on the one hand, technology
– constant progress through innovation; on the other, openness – in other words, the ability
to respond with flexibility and versatility when external conditions or market realities change
at short notice, without prejudging the outcome. This is the situation we are experiencing
right now.
Our forward-looking approach is now recognised as a strategic advantage and robust busi-
ness model. Evidence of this is provided not least by recent headlines, such as from the
February 2025 edition of trade journal “auto, motor, sport” asserting: “BMW – late winner
of the drivetrain transition”. I’m happy to leave it at that.
Our BMW 540d xDrive Touring* and MINI Cooper SE* were awarded the “Goldene Lenkrad”
(Golden Steering Wheel) in autumn 2024, as the best vehicles in their respective classes.
The “Car of the Year Award” for the BMW 5 Series and BMW i5* also marks the first acco-
lades for a technology-open model series in the history of the award.
* ↗ Consumption and Carbon Disclosures.
‘‘This is our long-term approach: strategically
planning the implementation of our goals.
What we announce, we bring to the roads.’’
24
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
Our competitive edge:
flexible architectures and powertrain components.
Our architectures, which are able to accommodate all powertrains, form the backbone of our
technological flexibility. We can also use different powertrain components and other parts in
all vehicles, regardless of the architecture.
This is highly relevant, as it enables substantial economies of scale. For example, the
BMW iX* relies on the same electrical powertrain components as the BMW i4*. The BMW i4*
is based on a flexible architecture, while the BMW iX* uses a specially developed platform.
The NEUE KLASSE will introduce a whole range of new components that can be used with
different powertrains, including hydrogen, across the entire portfolio in the future.
One of your Company’s key strengths remains our plants’ ability to manufacture different
model variants and drivetrain types on a single line. The ramp-up of electromobility is not
linear, but progresses at different speeds across individual markets. For this reason, it has
made sense up until now for our plants to be designed for flexible production – assembling
vehicles with both conventional drivetrains and e-drives. This flexible substitution of
drivetrain variants, combined with the smart allocation of vehicle concepts, ensures our de-
livery capabilities in varying market situations and maintains strong capacity utilisation at
our locations. This secures and enhances our competitiveness.
Next step: e-mobility for plants Debrecen and Munich.
While other manufacturers in our industry are reducing capacity and even planning for plant
closures, our new location in Debrecen, Hungary, will begin producing the first model for the
NEUE KLASSE this autumn.
Following comprehensive refurbishment as a fully electric facility, plant Munich is poised to
manufacture the second NEUE KLASSE model from 2026. Just one year later, Munich will
only be producing electric vehicles. This will make our main plant the second all-electric fa-
cility in our global network, further enhancing efficiency. Our global production network re-
mains agile and adaptable to different scenarios in the continued ramp-up of e-mobility.
2024: we met our adjusted targets and made the most of the conditions.
As you would expect from your Company, we had ambitious plans for financial year 2024.
However, over the course of the year, things turned out differently. This includes the finan-
cial impact of delivery stops and recalls for the supplied Integrated Brake System (IBS) com-
ponent, general market weakness in China and subdued demand for electric vehicles in sev-
eral markets, with corresponding effects on pricing.
In light of these factors, we adjusted our guidance for the financial year in September 2024.
We fought hard together to keep your Company on track. This clearly set us apart, leaving
our established competitors far behind in last year’s sales figures. We achieved our adjusted
targets for sales and financial key figures, by making the most of the changed conditions.
We delivered 2.45 million vehicles to customers worldwide in 2024. At Group and BMW
brand level, sales in the key Europe and Americas regions were on a par with or higher than
the previous year. The same was true in our markets outside the three main sales regions in
total. In eight European countries, BMW held the top spot in the premium segment. In Bel-
gium and Switzerland, we even led the total market. We also reported growth in the US,
where we occupy a strong second place in the premium segment.
Although our sales figures in China decreased, the BMW brand successfully defended its
position as segment number one. The fact that we sold more than twice as many electric
vehicles in China in 2024 as two of our established German competitors combined also
speaks for itself. Let us not forget that the whole Company has benefited from higher-than-
average performance in the Chinese market for many years. Needless to say, we aim to re-
turn to a growth path in China very soon – in line with our strategic plan.
* ↗ Consumption and Carbon Disclosures.
‘‘One of your Company’s key strengths is the
ability to manufacture different drivetrain types
on a single line.’’
25
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
Our core BMW brand remains global number one in its segment.
BMW M once again reaches all-time sales high.
Our core BMW brand maintained its position as the global number one in its segment last
year. BMW’s share of the premium segment climbed to 21.7%.
For the 13th consecutive year, BMW M sales increased – surpassing 200,000 vehicles.
BMW M GmbH plays a vital role in our overall success. Nearly one in ten BMWs sold in
2024 was an M model, with a healthy contribution margin. The best-selling M model was
once again the all-electric BMW i4 M50*.
This Gran Coupé not only offers a thrilling driving experience, with a range of up to 522 kilo-
metres (WLTP), but also demonstrates that our technology-open approach fully delivers in
the performance and high-performance segment.
A word about BMW M Motorsport: The three current BMW M Motorsport racing cars – the
M Hybrid V8, the M4 GT3 and the M4 GT4 – secured a combined 215 wins last season,
competing in more than 1,000 races and clocking up over a million kilometres.
MINI aims to hit the ground running with NEW MINI FAMILY.
Our MINI brand aims to hit the ground running once more with the NEW MINI FAMILY. Of
the five models, three are all-electric vehicles. MINI makes a valuable contribution to both
our all-electric vehicle sales and our CO2e footprint – as exemplified by the new fully electric
MINI Aceman*. Most importantly, the brand boasts a very large and very loyal fan commu-
nity. The new MINI Convertible* entered production at plant Oxford in the UK in November
2024.
Rolls-Royce launches Black Badge Spectre*.
Our Rolls-Royce luxury brand, which achieved the third-best result in its history last year,
unveiled four new models. In the coming years, we will invest more than 300 million pounds
to expand the manufacturing facility in Goodwood. This will be the largest investment since
the plant opened in 2003.
BMW Motorrad once again posts record sales.
Our two-wheeled vehicles are also extremely popular, with the brand reaching a new all-
time sales high of more than 210,000 BMW motorcycles and scooters in 2024. BMW
Motorrad remains number one in the global premium motorcycle segment. Models like the
R 1300 GS and S 1000 RR play a significant part in this. In fact, we sold more than 68,000
GS models alone. Moreover, when it comes to superbikes, our Double-R is the benchmark.
Growth will continue this year with the new 1300 Series model family.
Highly attractive products remain the foundation of our success.
As you can see, your Company is ideally positioned across all brands, segments and drive
technologies, with a broad, fresh and highly attractive product line-up. This year, one of our
core brand’s most successful models will celebrate its 50th anniversary: the in-demand,
high-volume BMW 3 Series. The latest generation of the BMW X3* is also extremely popu-
lar, which we produce at our plants in Spartanburg in the US, in our Chinese plant in Shen-
yang and in Rosslyn, South Africa. It has been rolling out in the markets since the end of
February. At our largest European plant in Dingolfing, we have been producing the model
update of the unique BMW iX* since March – a vehicle that boasts an impressive electric
range of more than 700 kilometres (WLTP), with significantly more drive power and effi-
ciency. In the premium compact class, the new BMW 2 Series Gran Coupé* will also launch
soon. The new BMW M3 CS Touring* also joined our BMW M model line-up in March.
A total of more than 40 new vehicles will launch between now and the end of 2027 – span-
ning all brands and drivetrain variants. This means that our customers will continue to have
choices.
New sales system for a holistic customer experience.
As you know, we are also structuring our sales system with a clear focus on the future. In
this way, we can also enable customers to move seamlessly between online and offline
channels throughout the purchasing process. It goes without saying that we are implement-
ing the transition to direct sales in close consultation with our retail partners, starting with
the MINI brand. We have already achieved stable operation in ten European markets, with
another five going live in early March 2025. As this process progresses, we are identifying
and implementing additional opportunities for optimisation.
* ↗ Consumption and Carbon Disclosures.
26
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
It is also clear that the roll-out for our core BMW brand will be significantly more extensive,
demanding the highest quality standards. We intend to build on our experiences with MINI
and will be making intensive preparations for the BMW brand roll-out this year and next.
Here, too, the transition will take place in cooperation with our retail partners.
All-electric vehicles remain key growth driver.
By the end of 2024, nearly one in four of your Company’s vehicles was electrified – either
all-electric or powered by a plug-in hybrid drivetrain.
Looking specifically at our all-electric options, these vehicles already accounted for 17.4%
of total BMW Group sales. At the MINI brand, about a quarter of all vehicles sold are already
fully electric. At Rolls-Royce, it is even a third.
All of this demonstrates how dynamically and systematically we are driving the ramp-up of
e-mobility – which is, and will remain, our key growth driver. Your Company is among the
leading sellers of electric vehicles in the industry. Despite the challenging market environ-
ment, we delivered more than 426,000 all-electric vehicles to customers last year – ex-
ceeding the previous year’s figure by 13.5%.
Choice of more than 15 all-electric models.
Our customers are currently able to choose from over 15 all-electric models across all BMW
Group brands. Our BMW charging card already provides customers with access to more
than 670,000 charging points throughout Europe.
In 2025, we are once again targeting growth with our all-electric vehicles. Over the course
of the year, we will reach two significant milestones: production of our three millionth electri-
fied vehicle and our 1.5 millionth all-electric vehicle.
Once again, your Company outperformed EU CO2 targets.
Our electrified models – along with our other highly efficient drive technologies – will con-
tribute to continuing reductions in our fleet-wide CO2 emissions. The same principle applies
here: we can be relied on to deliver on our promises. In 2024, the BMW Group once again
outperformed its CO2 fleet target – by more than 30 grams! Based on our internal calcula-
tions, our numbers came in at 99.5 grams per kilometre at the end of 2024. The European
Commission publishes the official data at year-end. Knowing your Company, you can rest
assured that we will do everything possible to meet the significantly stricter targets for 2025
as well.
We need and support ambitious political objectives that are ultimately viable for businesses.
The European Union’s long-range CO2 requirements must be adjusted to market realities.
This applies to the targets for 2030 and, especially, 2035. We believe the planned review in
2026 will be crucial in this regard. Europe needs, and benefits from, a strong automotive
and supplier industry.
That is why the BMW Group is participating in the European Commission’s strategic dia-
logue on strengthening the competitiveness of the automotive industry. We view it as a pos-
itive sign that the Commission is now focusing once more on Europe’s competitiveness with
the “Green Industrial Deal”.
Your Company is committed to free trade and fair competition.
You, our shareholders, understand that, as a global player, your Company is dedicated to
free trade and ensuring a level playing field across regions. Tariffs, on the other hand, hin-
der free trade, slow down innovation and make products more expensive – setting a nega-
tive spiral in motion. That is why we are standing firm on the issue of additional EU tariffs on
imports of electric vehicles from China, which came into force in October 2024 and also ap-
ply to our models produced there. Together with BMW Brilliance and our joint operation
Spotlight, we have therefore filed a lawsuit against the EU.
We will vigorously oppose negative developments and trade barriers. Since the same ap-
plies to duties on vehicles imported from the US into the European Union, we have pro-
posed that the EU send a positive signal by establishing a uniform tariff rate of 2.5% on
both sides. Our proposal for a level playing field has garnered a lot of attention.
‘‘We support ambitious objectives that are
adjusted to market realities.’’
27
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
Our global footprint – differentiating factor and competitive advantage in a
fragmented world.
In addition to political targets, geostrategic and protectionist developments around the
world are more critical than ever to the business success of global companies like the BMW
Group. Following decades of global free trade during the era of globalisation, the pendulum
is now swinging back towards protectionism, resulting in a power struggle between interna-
tional systems. We are witnessing a race for raw materials, access to critical technologies
and energy availability. How can we successfully maintain our business model? How can
we gain market share and continue to grow, while staying out of geopolitics?
We align our product development, our structures and our individual market strategies with
local conditions, always remaining adaptable and flexible – without losing sight of our long-
term goals. Today, we benefit, in particular, from having set the right course early on and
steering the Company in the necessary strategic direction.
In the past decades, the BMW Group has not only accessed sales markets worldwide, but
also established a strong presence, with our own value creation, in the key regions around
the globe. You are already familiar with the principle behind this: “production follows the
market”. At all our locations, we create added value. This is becoming more and more of an
asset, and even a unique selling point, for the BMW Group. In light of the changing global
environment and the trend towards regional market barriers, local value creation is increas-
ingly a requirement for future market success.
In addition to production, research and development, and sales and marketing, our pres-
ence in key economic regions also includes local supply chains and partnerships. This en-
ables us to respond quickly to unforeseen events and makes your Company more resilient
overall. Today, the BMW Group is one of few genuine global manufacturers in our industry.
Largest US automotive exporter by value –
30 years of value creation in South Carolina.
This year, we are celebrating “50 years of BMW North America”. In January 2025, the BMW
Group also received the “Honorary Sandlapper Award” from South Carolina Governor Henry
McMaster, recognising 30 years of commitment in the state.
We were honoured by both the South Carolina Senate and House of Representatives. The
BMW Group is the first Company to receive such an honour. Without BMW, development in
the region would have taken a very different path.
Our footprint in the US remains a valuable asset. According to data published by the US De-
partment of Commerce in February 2025, your Company was once again the leading auto-
motive exporter from the US by value last year. Plant Spartanburg exported almost
225,000 BMW X vehicles last year, worth over 10 billion US dollars, bringing the total ex-
port value since 2014 to more than 104 billion US dollars.
Balanced sales and production volumes across global regions – our unique sell-
ing point.
Our global footprint has already evolved to the next level, achieving a balanced global distri-
bution of value creation. This means: our sales and production are balanced within regions.
In Europe, the US and China – our largest single market – we sold roughly the same num-
ber of vehicles in each of these regions in 2024 as we produced there.
Spartanburg provides a good example of this: the plant produced just under 400,000 BMW
X models last year. This corresponds almost exactly to our US sales volume for the year.
One out of every two vehicles from our largest plant was also sold in the US.
We also continue to strengthen our home base in Germany in a targeted manner through
local value creation: our German plants produced more than one million vehicles in 2024.
Your Company therefore accounts for a quarter of the country’s total OEM passenger car
production – as confirmed by an evaluation conducted by the German Association of the
Automotive Industry (VDA).
The BMW Group’s global distribution of value creation forms an important foundation for
your Company’s resilience, strengthening its ability to navigate trade policy and geopolitics.
We are also mitigating the risks associated with possible currency fluctuations.
‘‘We always remain adaptable and flexible --
without losing sight of our long-term goals.’’
28
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
“Local for local” – also for high-voltage batteries.
We also apply our “local for local” global production strategy to the manufacture of high-
voltage batteries, as part of the e-mobility value chain.
Assembly of the sixth generation (Gen6) of our high-voltage batteries for the NEUE
KLASSE will take place at five new cutting-edge production facilities being built close to our
vehicle plants: in Irlbach-Straßkirchen (Lower Bavaria), Debrecen (Hungary), Shenyang
(China), San Luis Potosí (Mexico) and Woodruff, near Spartanburg (USA). This approach
safeguards production of high-voltage batteries from unforeseen political and economic
events, strengthens our existing locations, and preserves and creates jobs at these sites.
Gen6 high-voltage battery concept: 30% faster charging, 30% more range.
With the sixth generation of BMW eDrive technology, your Company has achieved a quan-
tum leap in technology, offering up to 30% faster charging and around 30% more range –
in certain models, even more. For the first time, the Gen6 high-voltage batteries also feature
the latest 800-volt technology and enable bidirectional charging. Gen6 will be used in the
NEUE KLASSE, starting this year, and will subsequently power the BMW Group’s all-electric
product range.
Sustainability as a key element of our corporate strategy.
The same applies to sustainability and climate protection: we act in a farsighted and reliable
manner, conduct ourselves transparently and consistently meet legal requirements. To this
end, we will continue to refine our target system in 2025, with a clear focus on impact.
We take a holistic view of the entire value creation process, from the supply chain through
production to energy consumption on the roads.
We have further developed our goal to reduce our carbon footprint per vehicle by 40% by
2030 in line with new EU requirements: compared to 2019, we will save at least 40 million
tonnes of CO2e by 2030. At many plant locations, we rely on self-generation of renewable
energy – in each case the type that is most suitable locally. Be it solar power, wind energy,
geothermal energy, biomass or district heating.
Since 2020, we have obtained all the external power required for our plants worldwide from
renewable sources. We have contractually agreed on the use of green electricity with a large
number of our suppliers. At product level, we use the vehicle footprint to make CO2e data
transparent over the entire life cycle, the proportion of secondary material, efficiency and
supply chain security for new BMW and MINI models. We are working with partners to es-
tablish a circular economy that enables high-quality recycling of steel, aluminium, glass and
plastic. We ourselves will increase the proportion of secondary material in our vehicles in the
future along the “Secondary First” principle.
NEUE KLASSE – MORE THAN EVER: Embarking on the next era of
tech leadership.
We are entering the home stretch as we bring the Company’s largest-ever future-oriented
project to the roads. At the IAA MOBILITY in Munich this September, the all-electric BMW
iX3 will celebrate its world premiere as the first model of the NEUE KLASSE. This will also
signal the beginning of the fundamental renewal of the entire BMW model range, across all
drive technologies.
The new BMW iX3 will set the standard for driving experience, electrification and digitalisa-
tion alike. At this year’s Consumer Electronics Show (CES) in Las Vegas, the unveiling of the
new BMW Panoramic iDrive met with great success. It is our tech expertise in digitalisation
and driver orientation that sets BMW apart. With this world premiere, we also provided sig-
nificant impetus for how our innovations are perceived in China. With the launch of the
NEUE KLASSE, all BMW models will feature the new display and operating concept.
‘‘We are entering the home stretch as we bring the
Company’s largest-ever future-oriented project to
the roads.’’
29
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of the Chairman of the Board of Management
We are also taking BMW’s original strength, “Sheer Driving Pleasure”, to a whole new level.
At the Auto Shanghai in April, we will showcase the next highlight on our road to the NEUE
KLASSE with the “BMW Vision Driving Experience”. With its strong emotional appeal, the
VDX is the most powerful development prototype BMW has ever built. It showcases in im-
pressive style what is technologically feasible. This is made possible by our “Heart of Joy”
for driving dynamics – one of four highly integrated electronic control units developed in-
house for the NEUE KLASSE.
In the models of the NEUE KLASSE, the four high-performance computers we refer to as
“superbrains” cluster the computing power for key customer functionality around infotain-
ment, automated driving, driving dynamics and basic functions. These four “superbrains”
provide more than 20 times the computing power of the current systems, ensuring long-
term security for upcoming software and function updates, including AI features.
As you can see, all our future products will benefit from the quantum leap in technology
achieved with the NEUE KLASSE. This will be made possible by relying on our technology
clusters, which can be integrated into all future vehicles, regardless of the drive technology.
The success story continues.
Dear Shareholders,
Your Company is renowned for outstanding technologies, groundbreaking innovations and
highly emotional products. We promise our customers the signature driving pleasure and
unique experiences our brands are known for. That is both our mission and our obligation. It
is how we drive the development of our industry and set the benchmark for our competitors.
It secures our business model. We are growing profitably and gaining market share. As
shareholders, you benefit from the long-term success of your Company – and we are con-
tinually creating the conditions necessary to ensure this.
The US-based Consumer Reports tested 32 brands in its latest report, ranking BMW first for
luxury brands and second industry-wide. Evaluation criteria included road testing, reliability,
customer satisfaction and safety. The BMW Group also performed exceptionally well in re-
nowned employer attractiveness rankings. For instance, Germany’s Trendence Barometer
named the BMW Group the best employer for professionals, graduates and specialists for
the 13th consecutive year.
Opportunities can be found in every environment: the BMW Group truly believes this – and
this mindset will continue to guide us in financial year 2025.
We have set ourselves ambitious goals. Our successful technology-open approach, our
compelling product line-up and the launch of the NEUE KLASSE will give us the momentum
we need.
Our strategy is grounded in facts, experience and continuous assessment of the current
situation. It has proven robust – especially in challenging conditions. We remain on course
to achieve our long-term goals. At the same time, we are able to respond with a high degree
of flexibility if our environment changes unexpectedly.
We understand our challenges and remain committed to charting our own
course – ↗ MORE THAN EVER.
The heart of BMW beats around the globe. Your Company is made up of more than
159,000 employees at more than 30 production locations and across our sales network in
over 140 countries. It is important to our entire team that you, our shareholders, continue to
support us and stand behind our long-term strategic direction. On behalf of all our employ-
ees, I would like to sincerely thank you for this.
Oliver Zipse
Chairman of the Board of Management
‘‘Our successful technology-open approach, our
compelling product line-up and the launch of the
NEUE KLASSE will give us the momentum we
need.’’
T H E BOA R D OF MANAGE ME NT
Ilka Horstmeier
Member of the Board of Management,
People and Real Estate
Milan Nedeljković
Member of the Board of Management,
Production
Walter Mertl
Member of the Board of Management,
Finance
Oliver Zipse
Chairman of the Board
of Management
Jochen Goller
Member of the Board of Management,
Customer, Brands, Sales
Frank Weber
Member of the Board of Management,
Development
Joachim Post
Member of the Board of Management,
Purchasing and Supplier Network
30
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
The Board of Management
31
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Composition of the Board of Management and Supervisory Board
CURRENT MEMBERS OF THE BOARD OF MANAGEMENT
OLIVER ZIPSE (b. 1964)
Member since 2015
Chairman (since 2019)
Mandates
—
Fraunhofer-Gesellschaft zur Förderung der
angewandten Forschung e. V.*, Deputy Chairman
JOCHEN GOLLER (b. 1966)
Member since 2023
Customer, Brands, Sales
Mandates
—
Rolls-Royce Motor Cars Ltd.*,**, Chairman
ILKA HORSTMEIER (b. 1969)
Member since 2019
People and Real Estate,
Labour Relations Director
WALTER MERTL (b. 1974)
Member since 2023
Finance
Mandates
—
BMW Brilliance Automotive Ltd.*,**, Chairman
DR-ING MILAN NEDELJKOVIĆ (b. 1969)
Member since 2019
Production
Mandates
—
BMW (South Africa) (Pty) Ltd.*,**, Chairman
—
BMW Motoren GmbH*,**, Chairman
DR-ING JOACHIM POST (b. 1971)
Member since 2022
Purchasing and Supplier Network
FRANK WEBER (b. 1966)
Member since 2020
Development
General Counsel:
DR ANDREAS LIEPE
* Not listed on the stock exchange.
* * BMW Group mandate.
*** Group mandate (other).
— Memberships on other mandatory supervisory boards.
— Memberships on comparable boards in Germany and abroad.
COMPOSITION OF THE BOARD OF
MANAGEMENT AND SUPERVISORY BOARD
32
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Composition of the Board of Management and Supervisory Board
CURRENT MEMBERS OF THE SUPERVISORY BOARD
DR-ING DR-ING Eh NORBERT REITHOFER (b. 1956)
Member since 2015, elected until the AGM 2025
Chairman of the Supervisory Board
Former Chairman of the Board of Management of BMW AG
Mandates
—
Henkel Management AG* (until 22 April 2024)
—
Henkel AG & Co. KGaA (Shareholders‘ Committee, until
22 April 2024)
DR MARTIN KIMMICH1 (b. 1972)
Member since 2023, elected until the AGM 2029
Deputy Chairman of the Supervisory Board
Chairman of the General Works Council of BMW AG and the
BMW AG Works Council Munich
STEFAN QUANDT (b. 1966)
Member since 1997, elected until the AGM 2028
Deputy Chairman of the Supervisory Board
Entrepreneur
Mandates
—
DELTON Health AG*,***, Chairman
—
DELTON Technology SE*,***, Chairman
—
Frankfurter Allgemeine Zeitung GmbH*
—
AQTON SE*,***, Chairman
—
Entrust Corp.*,***
—
SOLARWATT GmbH*,***
Note: Mr Quandt is the sole shareholder of DELTON Health AG, DELTON Technology SE and AQ-
TON SE. He indirectly holds majority interests in Entrust Corp. and SOLARWATT GmbH.
STEFAN SCHMID1 (b. 1965)
Member since 2007, elected until the AGM 2029
Deputy Chairman of the Supervisory Board
Chairman of the BMW AG Works Council Dingolfing
DR KURT BOCK (b. 1958)
Member since 2018, elected until the AGM 2027
Deputy Chairman of the Supervisory Board and
Chairman of the Audit Committee
Chairman of the Supervisory Board of BASF SE
Mandates
—
BASF SE, Chairman
ULRICH BAUER1 (b. 1964)
Member since 15 May 2024, elected until the AGM 2029
Member of the BMW AG Works Council Munich
DR MARC BITZER (b. 1965)
Member since 2021, elected until the AGM 2025
Chairman and CEO of Whirlpool Corp.
Mandates
—
Simex Trading AG*
—
Whirlpool Corp., Chairman
RACHEL EMPEY (b. 1976)
Member since 2021, elected until the AGM 2025
Member of Supervisory Boards
Mandates
—
ZF Friedrichshafen AG*
DR-ING HEINRICH HIESINGER (b. 1960)
Member since 2017, elected until the AGM 2026
Chairman of the Supervisory Board of ZF Friedrichshafen AG
Mandates
—
Deutsche Post AG
—
Fresenius Management SE*
—
ZF Friedrichshafen AG*, Chairman
1 Employee of BMW AG.
2 Union representative.
3 Executive employee of BMW AG.
* Not listed on the stock exchange.
* * BMW Group mandate.
*** Group mandate (other).
— Memberships on other mandatory supervisory boards.
— Memberships on comparable boards in Germany and abroad.
33
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Composition of the Board of Management and Supervisory Board
DR HC SUSANNE KLATTEN (b. 1962)
Member since 1997, elected until the AGM 2028
Entrepreneur
Mandates
—
ALTANA AG*, Deputy Chairwoman
—
SprinD GmbH*
—
UnternehmerTUM GmbH*, Chairwoman
Note: Dr hc Klatten is the sole shareholder of UnternehmerTUM GmbH. Her mandates at SprinD
GmbH and UnternehmerTUM GmbH are primarily an expression of her corporate citizenship.
JENS KÖHLER1 (b. 1964)
Member since 2021, elected until the AGM 2029
Chairman of the BMW AG Works Council Leipzig
ANDRÉ MANDL1 (b. 1984)
Member since 2022, elected until the AGM 2029
Chairman of the BMW AG Works Council Regensburg/
Wackersdorf
DR DOMINIQUE MOHABEER1 (b. 1963)
Member since 2012, elected until the AGM 2029
Member of the BMW AG Works Council Munich
DR MICHAEL NIKOLAIDES3 (b.1974)
Member since 1 November 2024, elected until the AGM 2029
Head of Production Network, Logistics at BMW AG
Mandates
—
BMW Manufacturing Hungary Kft.*,** (since 1 October 2024)
HORST OTT2 (b. 1966)
Member since 15 May 2024, elected until the AGM 2029
District manager of IG Metall Bayern
Mandates
—
Schaeffler AG, Deputy Chariman
ANKE SCHÄFERKORDT (b. 1962)
Member since 2020, elected until the AGM 2025
Member of Supervisory Boards
Mandates
—
Serviceplan Group Management SE*
—
Wayfair Inc.
PROF DR DR HC CHRISTOPH M. SCHMIDT (b. 1962)
Member since 2021, elected until the AGM 2025
President of RWI - Leibniz-Institute for Economic Research
Essen, University Professor
Mandates
—
Basalt-Actien-Gesellschaft*
—
Thyssen Vermögensverwaltung GmbH*
DR VISHAL SIKKA (b. 1967)
Member since 2019, elected until the AGM 2028
CEO and Founder, Vianai Systems, Inc.*
Mandates
—
GSK plc.
—
Oracle Corp. (until 14 November 2024)
SIBYLLE WANKEL2 (b. 1964)
Member since 2022, elected until the AGM 2029
Managing Director and First Representative
of IG Metall’s Munich Office
Mandates
—
KraussMaffei Group GmbH*, Deputy Chairwoman
—
MAN Truck & Bus SE*
PROF DR JOHANNA WENCKEBACH2 (b.1982)
Member since 15 May 2024, elected until the AGM 2029
General Legal Counsel at IG Metall, Professor of Labour Law
1 Employee of BMW AG.
2 Union representative.
3 Executive employee of BMW AG.
* Not listed on the stock exchange.
* * BMW Group mandate.
*** Group mandate (other).
— Memberships on other mandatory supervisory boards.
— Memberships on comparable boards in Germany and abroad.
34
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Composition of the Board of Management and Supervisory Board
OUTGOING MEMBERS OF THE SUPERVISORY BOARD
CHRISTIANE BENNER2 (b. 1968)
Member from 2014 until 15 May 2024
First Chairwoman of IG Metall
Mandates
—
Continental AG, Deputy Chairwoman
BERNHARD EBNER1 (b. 1978)
Member from 2021 until 15 May 2024
Chairman of the BMW AG Works Council Landshut
JOHANN HORN2 (b. 1958)
Member from 2021 until 15 May 2024
Union Secretary
Mandates
—
Siemens Healthcare GmbH* (until 19 April 2024)
GERHARD KURZ3 (b. 1963)
Member from 2022 until 31 October 2024
Former Head of Corporate Quality at BMW AG
1 Employee of BMW AG.
2 Union representative.
3 Executive employee of BMW AG.
* Not listed on the stock exchange.
* * BMW Group mandate.
*** Group mandate (other).
— Memberships on other mandatory supervisory boards.
— Memberships on comparable boards in Germany and abroad.
35
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Stakeholders and Capital Market
sTT
DIALOGUE WITH STAKEHOLDERS
The BMW Group operates within a highly interconnected world.
Its business activities impact the environment in which it oper-
ates, and can have both a direct and an indirect bearing on the
interests of a wide variety of stakeholders. Conversely, societal
trends and developments can influence many aspects of the
Group’s business activities. Against this backdrop, the
BMW Group maintains a continuous dialogue with its stakehold-
ers worldwide. Dialogue builds mutual trust and provides clarity
about perspectives and expectations. Incorporating different ex-
ternal perspectives facilitates the transfer of knowledge and im-
proves the BMW Group’s ability to innovate.
The BMW Group’s interaction with stakeholders includes topics
brought to its attention from outside the Group as well as those
in which it proactively engages in dialogue. This combination re-
sults in a comprehensive spectrum of topics:
—
NEUE KLASSE with a focus on innovations in the areas of
electrification, digitalisation and sustainability
—
Competitiveness of the European Union and Germany
—
Establishment of a new site in Germany to assemble high-
voltage batteries
—
The Paris Climate Agreement and climate neutrality goal of
the BMW Group
—
Emissions limits with a focus on technological diversity in
terms of drivetrain technologies and vehicle concepts
—
Hydrogen as a potential energy storage for electric
drivetrain systems
—
Circular design and use of secondary materials (particularly
in relation to battery recycling)
—
Active crisis management regarding the geopolitical situa-
tion
—
Importance of a fair and rules-based global trade system
that improves our competitiveness and promotes coopera-
tion
—
Supply of critical raw materials
—
Compliance with statutory due diligence obligations in sup-
ply chains, particularly environmental and social standards
and respect for human rights, especially regarding the pro-
curement of raw materials for electromobility applications
—
Social responsibility for employees
The BMW Group Xchange encompasses the well-established
forms of events organised by the Group, such as the BMW Group
Dialogues and the rad°hub, providing the appropriate platforms
to encourage dialogue with a variety of target groups. The for-
mats selected usually take place several times a year. The results
of these stakeholder dialogues are documented and incorpo-
rated in the Group’s strategic considerations.
Detailed information about stakeholder dialogues related to sus-
tainability topics is included in the Sustainability Statement.
↗ Stakeholder Engagement
STAKEHOLDERS AND CAPITAL MARKETS
36
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Stakeholders and Capital Market
The BMW Group maintains an active, open and transparent dia-
logue with decision makers and representatives of politics, trade
unions, associations and non-governmental organisations
(NGOs), with a view to playing a constructive and transparent
role in helping shape the general political framework to the extent
that it concerns the Group’s business activities.
A comprehensive overview of the BMW Group’s key political po-
sitions and its approach to representing its interests can be found
in ↗ Advocacy, which was made available in 2023.
Additional information about the BMW Group’s political involve-
ment can be found in the ↗ Political Involvement and Lobbying Activities
section of the Sustainability Statement.
The BMW Group will continue to interact closely and construc-
tively with its stakeholders and use existing dialogue opportuni-
ties in 2025.
Credit ratings remain at high level
BMW AG continues to have one of the best credit ratings of any
automobile manufacturer. In 2024, the rating agencies Moody’s
and Standard & Poor’s (S&P) both confirmed BMW AG’s high in-
vestment-grade credit ratings. Moody’s long-term rating re-
mains at “A2 with stable outlook”, while the short-term rating is
unchanged at “P-1”. S&P’s long-term rating remains at “A with
stable outlook”, with a short-term rating of “A-1”.
BMW AG’s solid position and consistent operating performance
in previous years helped the Company to maintain stable credit
ratings in a dynamic environment and despite the challenges of
the 2024 financial year. The credit rating is also backed up by
the Company’s solid capital structure, balanced financial policy
and solid liquidity position. Moreover, the increasing proportion
of Group sales of all-electric vehicles is seen as a particularly pos-
itive factor. With this profile, the rating agencies view BMW AG as
well prepared to master the numerous challenges facing the au-
tomotive industry.
These above-average credit ratings are testimony to BMW AG’s
excellent creditworthiness. Accordingly, BMW AG enjoys good
access to international capital markets and benefits from attrac-
tive refinancing conditions.
Company rating
Moody’s1
Standard
& Poor’s2
Long-term debt
A2
A
Short-term debt
P-1
A-1
Outlook
stable
stable
1 Moody’s scale for long-term ratings: Aaa to C. Moody’s scale for short-term ratings: P-1
(Prime-1) to NP (Not Prime).
2 S&P scale for long-term ratings: AAA to D. S&P scale for short-term ratings: A-1 to D.
Good placement in sustainability ratings
The BMW Group again achieved a good ranking in prestigious
sustainability ratings in 2024, confirming its strong position in
this respect. As of 31 December 2024, the BMW Group has an
A rating from MSCI ESG, a score of 22.9 from Sustainalytics, and
a C+ rating and Prime status from ISS ESG. The BMW Group is
recognized on the CDP Climate “A List” and has achieved a
Leadership Scoring (A-) for CDP Water Security.
BMW GROUP AND CAPITAL MARKETS
37
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Stakeholders and Capital Market
Dividends once again at a high level
The Board of Management and the Supervisory Board will pro-
pose to the Annual General Meeting that the unappropriated
profit of BMW AG amounting to € 2,677 million (2023:
€ 3,802 million) be used to pay a dividend of € 4.30 for each
share of common stock entitled to receive a dividend (2023:
€ 6.00) and a dividend of € 4.32 for each share of preferred
stock entitled to receive a dividend (2023: € 6.02). The payout
ratio (unappropriated profit of BMW AG in accordance with HGB
in relation to the Group net profit attributable to shareholders of
BMW AG in accordance with IFRS) for 2024 therefore stands at
36.7% (2023: 33.7%).
BMW AG Stock
2024
2023
2022
2021
2020
C O M M O N S T O C K
Number of issued shares in 1,000
579,796
579,796
601,995
601,995
601,995
Shares bought back as of reporting date in 1,000
13,364
4,218
15,312
–
–
Stock exchange price in €1
Year-end closing price
78.98
100.78
83.38
88.49
72.23
High
114.75
112.90
99.32
95.89
76.68
Low
65.96
85.80
69.13
68.34
37.66
P R E F E R R E D S T O C K
Number of issued shares in 1,000
58,920
58,920
60,844
59,404
57,689
Shares bought back as of reporting date in 1,000
3,093
943
1,449
–
–
Stock exchange price in €1
Year-end closing price
72.40
89.95
79.55
73.30
55.20
High
105.40
105.00
85.20
82.00
57.60
Low
62.00
80.15
58.85
51.60
32.50
K E Y D A T A P E R S H A R E I N €
Dividend
Common stock
4.302
6.00
8.50
5.80
1.90
Preferred stock
4.322
6.02
8.52
5.82
1.92
Earnings per share of common stock3
11.62
17.67
27.31
18.77
5.73
Earnings per share of preferred stock4
11.64
17.69
27.33
18.79
5.75
Free cash flow Automotive segment5
7.80
10.96
17.14
9.61
5.15
Equity5, 6
148.35
141.42
134.85
113.60
93.26
1 Xetra closing prices.
2 Proposed by management.
3 Weighted average number of shares for the year.
4 Stock weighted according to dividend entitlements.
5 The key figure is calculated without the repurchased shares.
6 From the 2022 financial year, the equity of BMW AG shareholders will be used for the calculation.
COMBINED
MANAGEMENT REPORT
02
38
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
39
Overview of the BMW Group
39
Organisation and Business Model
40
Segments
40
Locations
43
The BMW Group Strategy
54
Innovation and Product Technology
60
Production Network
63
Purchasing and Supplier Network
66
Financial Performance
66
Overall Assessment by Management of the Financial Year
67
General and Sector-specific Environment
69
Comparison of Forecasts with Actual Outcomes
70
Financial Position
79
Course of Business and Segments
87
Comments on the Financial Statements of BMW AG
91
Sustainability Statement
91
Foreword to the Sustainabilty Statement
93
Sustainability Statement ESRS
94
Principles and general Disclosures
116
Environmental Information
160
Social Information
188
Governance Information
195
Other ESG-Information
246 Internal Control System, Risks and Opportunities,
Compliance
246
Appropriateness and Effectiveness of the Internal Control System and
Risk Management System
247
Internal Control System
248
Risks and Opportunities
257
Compliance
260 Outlook
264 Disclosures relevant for Takeovers and Explanatory
Comments
39
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Overview of the BMW Group
O V E R V I E W O F T H E B M W G R O U P
39
Organisation and Business Model
40
Segments
40
Locations
43
The BMW Group Strategy
54
Innovations and Product Technologies
60
Production Network
63
Purchasing and Supplier Network
» The BMW Group develops and manufactures premium auto-
mobiles and motorcycles. Its BMW, MINI, Rolls-Royce and BMW
Motorrad brands are among the best-known in the world. The
BMW Group occupies leading market positions in both the pre-
mium segment and the financial services sector.
Bayerische Motoren Werke Aktiengesellschaft (BMW AG), based
in Munich, Germany, is the parent company of the BMW Group.
The BMW Group comprises BMW AG itself and all subsidiaries
over which BMW AG has either direct or indirect control. ↗ List of
Investments. The BMW Group is subdivided into the ↗ Automotive,
Motorcycles and Financial Services segments and the Other Entities
segment.
BMW AG assumes central responsibility for the management of
the Automotive, Motorcycles and Financial Services operating
segments.
At 31 December 2024, the BMW Group employed a workforce
of 158,441 people worldwide2.
The BMW Group’s global sales network includes sales compa-
nies and importers with representation in more than 140 coun-
tries. The sales system is structured as a three-level sales model:
sales and customer support are handled in stages by BMW AG,
its sales companies or the dealership organisation, and import-
ers. Vehicle maintenance and repair work is also carried out for
customers at dealership organisations. «
1 This section contains disclosures in line with ESRS 2 SBM-1.42c).
2 For a definition, see ↗ Glossary and Explanation of Key Figures.
3 ↗ Consumption and Carbon Disclosures.
OVERVIEW OF THE BMW GROUP
ORGANISATION AND BUSINESS MODEL 1
40
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Overview of the BMW Group
» New vehicles are primarily sold via the dealership organisation.
In this process, independent dealerships acquire the vehicles
from the BMW Group and sell them to end customers in their own
name and on their own account (wholesale model). In some mar-
kets, the BMW Group also sells vehicles directly to end custom-
ers (agency model). «
SEGMENTS 1
Automotive segment
» With its automobile brands BMW, MINI and Rolls-Royce, the
BMW Group caters to a wide range of expectations and require-
ments from private and business customers and public authori-
ties across the globe. The essence of the BMW brand lies in the
sporty seamless interplay between components and the driving
dynamics synonymous with the brand. The attractive, extensive
product portfolio is tailored precisely to differing customer needs.
The different drive systems represent the BMW Group’s open-
ness to technology and range from all-electric drives (BEV2), to
modern plug-in hybrids (PHEV3) and highly efficient combustion
engines. The range of vehicles sold by the BMW Group includes
automobiles ranging from the premium compact class to the lux-
ury class. The most popular BMW models in the reporting year
included those in the X Family. The high-performance brand
BMW M complements the Group’s products with modern high-
performance vehicles.
The BMW Group is leading the way in shaping tomorrow’s mo-
bility, with the NEUE KLASSE model generation set to launch at
the end of 2025, which will take the Group’s entire product port-
folio to the next level. The driving experience is at the heart of the
NEUE KLASSE, and the range brings together all three strategic
areas of focus: electromobility, digitalisation and circularity.
The MINI brand stands for maximum driving fun in the premium
compact segment. MINI started to revamp its entire product port-
folio in early 2024, with the new MINI family representing a dig-
ital world of experience, innovative technologies and the driving
pleasure associated with MINI. The highest-volume model in
2024 was again the all-electric MINI Cooper SE3. The new MINI
Aceman3, launched in autumn 2024, was the first crossover
model introduced to the market that is available exclusively with
an all-electric drivetrain.
The Rolls-Royce brand is steeped in tradition and offers automo-
biles in the ultra-luxury class, with a focus on exclusive service
and meeting bespoke customer specifications. Its most success-
ful models include the Rolls-Royce Cullinan3 and the all-electric
Rolls-Royce Spectre4, which marked the luxury brand’s success-
ful introduction to electromobility.
The global sales network of the BMW Group’s Automobile seg-
ment currently comprises around 3,500 BMW, more than 1,600
MINI and 149 Rolls-Royce establishments. The BMW Group’s
most lucrative automobile markets in reporting year 2024 were
Europe, the USA and China. ↗ Automotive Segment «
Motorcycles segment
» BMW Motorrad develops, manufactures and sells motorcycles
and scooters in the Sport, Tour, Roadster, Heritage, Adventure
and Urban Mobility categories. As well as motorcycles for private
use, BMW Motorrad also makes special-purpose vehicles (offi-
cial vehicles) for operational use.
BMW Motorrad is the leading manufacturer of motorised two-
wheelers in the premium segment and sells its products through
more than 1,300 dealerships in some 100 countries worldwide.
The most important markets for BMW Motorrad are Germany,
France, the USA, Italy and China. ↗ Motorcycles Segment «
Financial Services segment
» The Financial Services segment completes the BMW Group’s
range of mobility services, offering tailored financial solutions.
The Financial Services segment’s main lines of business com-
prise credit financing and the leasing (including insurance and
service products) of BMW Group brand automobiles and motor-
cycles to retail customers. It also handles financing for dealer-
ships and customer deposits. Operating under the brand name
Alphabet, the BMW Group is a partner in the international cross-
brand fleet business. Its services consist mostly of vehicle fleet
financing for large customers, comprehensive management ser-
vices for corporate car fleets and management of the Group’s
own fleet. ↗ Financial Services Segment
The BMW Group is a leading provider of financial services in the
automotive sector. It offers these services in more than 50 coun-
tries worldwide via subsidiaries and cooperation arrangements
with local financial service providers and importers. The most im-
portant markets for the Financial Services segment are the USA,
Germany, the UK and China. «
LOCATIONS
Global overview
The BMW Group operates on a worldwide basis. The
BMW Group’s largest automobile and motorcycle markets are lo-
cated in Europe, particularly in Germany and the UK, as well as
in the USA and China.
1 This section contains disclosures in line with ESRS 2 SBM-1.40a) i., ii.
2 Battery Electric Vehicle ↗ Electrified Vehicles.
3 Plug-in Hybrid Electric Vehicle ↗ Electrified Vehicles.
4 ↗ Consumption and Carbon Disclosures.
1
2
3
4
6
5
7
8
9
10
11
12
13
14
15
16
17
18
19
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LOC ATION S WOR LDWIDE
41
Sales subsidiaries and Financial
Services locations worldwide
33
Production and assembly plants
18
Countries with research
and development locations
■
Production outside Europe
BMW Group plant Araquari, Brazil
BMW Group plant Chennai, India
BMW Group plant Manaus, Brazil
BMW Group plant Rayong, Thailand
BMW Group plant Rosslyn, South Africa
BMW Group plant San Luis Potosí, Mexico
BMW Group plant Spartanburg, USA
BMW Brilliance Automotive, China (3 plants)
Spotlight Automotive, China (Joint operation)
□
Partner plants outside Europe
Partner plant, Chongqing, China
Partner plant, Chu Lai, Vietnam
Partner plant, Hosur, India
Partner plant, Jakarta, Indonesia
Partner plant, Cairo, Egypt
Partner plant, Kulim, Malaysia
▲
Research and Development outside Europe
BMW Group Technology Office USA, Mountain View, USA
BMW Group Engineering and Emission Test Center, Oxnard, USA
BMW Group Design, Technology and ConnectedDrive Lab,
Shanghai, China
BMW Group Development China, Beijing, China
BMW Group Development and Technology Office, Tokyo, Japan
BMW Group Development USA, Woodcliff Lake, USA
BMW Group IT Technology Office, Greenville, USA
BMW Group IT Technology Office, Nanjing, China
BMW Group IT Technology Office, Singapore
BMW Group IT DevOps Hub, Chennai, India
BMW Group IT DevOps Hub, Rosslyn, South Africa
BMW do Brasil Entwicklung, Araquari, Brazil
BMW Group Technology Office Tel Aviv, Tel Aviv, Israel
BMW Group R&D Center Seoul, Seoul, South Korea
BMW Group Prototype Testing, Rosslyn, South Africa
BMW Brilliance Automotive, Shenyang, China
BMW Techworks, Pune, India
1
2
4
5
3
6
9
8
7
10
11
12
13
14
15
16
19
20
21
23
22
17
18
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LOC ATION S IN EUR OP E
■
Production in Europe
BMW Group plant Berlin
BMW Group plant Dingolfing
BMW Group plant Eisenach
BMW Group plant Landshut
BMW Group plant Leipzig
BMW Group plant Munich
BMW Group plant Regensburg
BMW Group plant Wackersdorf
BMW Group plant Steyr, Austria
BMW Group plant Hams Hall, UK
BMW Group plant Oxford, UK
BMW Group plant Swindon, UK
Rolls-Royce Manufacturing Plant, Goodwood, UK
BMW Group plant Debrecen, Hungary
□
Partner plants in Europe
Partner plant, Born, the Netherlands (contract manufacturing)
Partner plant, Graz, Austria (contract manufacturing)
▲
Research and Development in Europe
BMW Group Research and Innovation Centre (FIZ), Munich,
Germany
BMW Car IT, Munich, Germany
BMW Group Autonomous Driving Campus, Unterschleißheim,
Germany
BMW Group Designworks, Munich, Germany
BMW Group Lightweight Construction and Technology Center,
Landshut, Germany
BMW Group Diesel Competence Center, Steyr, Austria
Critical TechWorks S.A., Porto/Lisbon, Portugal
BMW France, S. A. S., Miramas, France
Rolls-Royce Motor Cars Ltd., Goodwood, UK
BMW Group Vehicle Testing, Arjeplog, Sweden
BMW Group Vehicle Testing, Granada, Spain
BMW Group Vehicle Testing, Sokolov, Czech Republic
BMW Group IT DevOps Hub, Bukarest, Romania
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THE BMW GROUP STRATEGY
» For the BMW Group, the further development of the corporate
strategy is a continuous process that begins with the environ-
mental analysis. There, trends of significant importance for the
automotive industry are regularly examined, evaluated and the
underlying assumptions are reviewed. The overarching corpo-
rate strategy and the strategic goals of the BMW Group serve as
the reference point for the departments to define specific direc-
tions and implementation measures. This is done based on stra-
tegic fields of action and success-critical tasks.
The flexible strategy process enables planning in scenarios that
take into account the increasingly complex business environ-
ment. The strategy of the BMW Group is also based on funda-
mental values. ↗ Compliance
A feedback-based planning and control system translates the
strategy into an annually revised, long-term corporate planning.
A target system encompassing aspects of finance, customers,
processes, learning, and development monitors the implemen-
tation of the strategy. ↗ Performance Indicators and Performance
Management «
ENVIRONMENTAL ANALYSIS *
» The success of a company largely depends on its ability to rec-
ognise changes in the environment early, consider alternative
development scenarios, effectively manage risks and seize op-
portunities that may arise from changes ↗ Risks and Opportunities.
To achieve this, the BMW Group consistently observes the con-
ditions in key regions and analyses trends and developments
that may impact future business operations. This is grounded in
a regularly updated environmental analysis focused on selected
thematic areas. The regular ↗ Dialogue with Stakeholders conducted
by the company through the established BMW Group XChange
formats, enhances the insights gained from the environmental
analysis.
In addition to the existing development directions, several trends
are increasingly gaining momentum, particularly regarding digi-
tal technologies, consumer behavior, and the political environ-
ment. The currently most significant trends with long-term im-
pacts on the business model of the BMW Group are categorized
based on the influencing factors of society, technology, economy,
ecology and politics. «
Society
» Individual mobility remains a fundamental human need. Vehi-
cle ownership continues to depend significantly on income,
household size and location. Particularly in urban areas, on-de-
mand mobility (ODM) services are still primarily used as comple-
mentary offerings. Supported by the use of digital technologies,
new usage concepts are gaining importance. In this context, ve-
hicles are increasingly being understood as living spaces. «
Technology
» For the BMW Group, as a technology-oriented company,
trends and developments in this area are of particular im-
portance. Changes occur continuously, the market environment
is evolving very dynamically and new forms of collaboration are
emerging. Offerings related to artificial intelligence expand pos-
sibilities in almost all areas of life. Today, modern vehicles are
already among the most complex digital products in consumer
hands. Customers are shaping their requirements for vehicles
with regard to the digital ecosystems they use daily. Automobiles
are expected to provide reliable support in everyday life, seam-
lessly integrate into personal living environments and create a
holistic experience. Software updates and upgrades are becom-
ing the standard. ↗ Innovations and Product Technologies
Alongside digitalisation, the shift towards automated and auton-
omous driving remains one of the key expectation for the future
of mobility. There are varying development speeds and func-
tional characteristics observed across different regions, with the
use of AI being a significant driver of this development.
Globally, electromobility is an important step towards climate
neutrality. However, varying speeds of adoption can still be ob-
served in different countries. Therefore, it can be expected that
both electric vehicles and vehicles with internal combustion en-
gines will continue to be offered in the long term. A key factor for
the success of electromobility is addressing the existing uncer-
tainties. These include issues related to regulation, the wide-
spread and sufficiently rapid development of charging infrastruc-
ture, the evolution of electricity versus fuel prices, and the availa-
bility of raw materials. «
* This chapter contains disclosures in line with ESRS 2 SBM-1.40e)-g); 42a)-c); ESRS 2
SBM-3.48b), f).
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» To meet the generally increasing demand for climate-neutral
energy through electricity from renewable sources1, the corre-
sponding capacities would need to be expanded quickly. How-
ever, the resulting increase in the share of renewable energies
would lead to greater fluctuations in electricity generation and
thus to new challenges for grid stability. Together with the limited
capacities of the distribution networks, this would require further
efforts for the sustainable success of electromobility. ↗ Innovations
and Product Technologies «
Economy
» Economy and ecology are closely interconnected and influence
each other. In addition to CO2 emissions, resource efficiency will
gain importance. There are also increasing requirements for sec-
ondary materials and recycling, such as quota mandates. At the
same time, this can lead to cross-industry initiatives and oppor-
tunities for new business models. ↗ Circular Economy and Resource Use
Competition among different political systems dominates inter-
national politics. Sanctions, tariffs and subsidies are altering in-
ternational trade flows. The resulting geopolitical risks necessi-
tate securing international supply chains. «
Ecology
» Governments around the world are working to translate the
goals of the Paris Agreement on CO2 reduction into national laws.
An ambitious climate policy orientation will become an important
foundation for successful business operations. It is crucial to pre-
pare for the impacts of climate change. Driven by the global need
for decarbonization, the role of hydrogen as an energy carrier will
fundamentally change in this context. «
Politics
» Politics and regulations restrict the scope of action across the
entire automotive value creation model. The internationally var-
ying legislation on similar issues significantly contributes to a
heterogeneous regulatory landscape. Complying reliably with the
often very complex requirements is frequently associated with
high costs and increasingly poses a challenge for the automotive
industry. «
CORNERSTONES OF THE STRATEGY 2
The BMW Group strategy is aligned with the company's purpose
“The BMW Group exists to move body, heart and mind.” This
purpose is the driving force, the guiding principle and the orien-
tation for our employees, and our commitment to our active role
in society. Its long-term focus guides us purposefully into the fu-
ture.
Transitioning to the specific content of the BMW Group Strategy,
the BMW Group Impact further develops the Company’s long-
term strategic vision and emphasizes the ambition to contribute
to societal advancement. “We make individual mobility more hu-
man, intelligent and responsible – creating an inspiring future for
all of us.”
1 See ↗ Glossary for a definition of electricity from renewable sources.
2 This chapter contains disclosures in line with ESRS 2 SBM-1.40e)-g); 42a)-c).
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The BMW Group Strategy
Position -
What does the BMW Group stand for?1
» With its innovative products, the BMW Group represents first-
class individual mobility. The key focus areas of the Group’s
strategy are (1) a technology-open portfolio of highly efficient
drive technologies with a strong focus on electromobility, (2) fur-
ther digitalisation of customer interfaces as well as the develop-
ment of corresponding products and complementary services,
and (3) sustainability across the entire value chain, including the
circular economy.
The BMW Group is committed to the ambitious Paris Agreement
targets and is taking ambitious steps in its efforts towards pro-
gressive, holistic decarbonization, on the basis of the Science
Based Targets initiative (SBTi). For the BMW Group, holistic
means decarbonising the emissions generated by its vehicles
over their entire life cycle – from raw materials to kilometres
driven. ↗ Transition plan to achieve Net Zero emissions by 2050
From financial year 2024, carbon equivalent targets must be
presented in absolute values (t CO2e), in line with the sustaina-
bility reporting requirements as set out by ESRS. The relative tar-
gets introduced in 2021 (expressed as reduction per vehicle) for
Scope 1 and 2 (BMW Group locations) and Scope 3 (Purchased
goods and services, Logistics, Use phase, in each case for the
Automotive segment) will be replaced with absolute values from
reporting year 2024 onwards. The BMW Group’s overall target
claim remains unchanged with this adaptation and take account
of growth forecasts and interaction between the scopes. Accord-
ingly, by the target year 2030 (near-term target) the BMW Group
aims to reduce its carbon equivalent emissions by at least 40
million tonnes CO2e as compared to the base year of 2019 (in-
stead of a relative reduction target of 40% per vehicle) – from
150.1 million tonnes CO2e to 108.6 million tonnes CO2e ↗ Path to
achieving the CO2e reduction targets in 2030. The resilience of the
BMW Group’s business model to face the challenges posed by
climate change should be ensured by incorporating all relevant
aspects, risks and opportunities into its corporate planning. Our
comprehensive digital reporting system also guarantees that cli-
mate perspectives are consistently taken into account. Moreover,
the BMW Group Strategy considers uncertainties in key frame-
work conditions and the limits of the political controllability of
markets, as last demonstrated in 2024. Flexibility is therefore
also a focal point of the climate dimension of the BMW Group’s
corporate strategy.
The BMW Group achieved a leading position in the sale of elec-
trified vehicles in 2024, yet the markets remain highly frag-
mented, illustrating how manufacturers’ products alone cannot
ensure sufficient demand. A reliable, continued expansion of
charging infrastructure, calculable and sustained cost benefits
and an expansion of cost-effective energy with zero carbon
equivalent emissions remain the key factors for success. The
BMW Group is actively working on numerous projects and initia-
tives to improve the framework conditions for electromobility.
This includes its contribution to the expansion of charging infra-
structure in Germany and the use of electricity from renewable
sources2 in our joint ventures IONITY, IONCHI and IONNA. Be-
yond this work to expand the charging infrastructure, the
BMW Group also supports customers in using the vehicles effi-
ciently in a number of ways, for example by offering flexible con-
tract options for charging all-electric vehicles (BMW Charging),
and by showing customers their own driving style in the
My BMW App. «
1 This section contains disclosures in line with ESRS 2 SBM-3.48b), c) i., ii., iv.
2 See ↗ Glossary for a definition of electricity from renewable sources.
Strategic approach
Position
Direction
Collaboration
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» The BMW Group also intends to continue its efforts to signifi-
cantly reduce its direct CO2e emissions (Scope 1 and 2). As in the
past, the BMW Group remains committed to energy efficiency
measures, electricity generated in-house from renewable
sources, the purchase of electricity from renewable sources via
Power Purchase Agreements and the use of Energy Attribute
Certificates (e.g. guarantees of origin). The remaining emissions
are largely attributable to the use of natural gas. In this respect,
the BMW Group faces the challenge of replacing natural gas with
non-fossil energy sources such as biogas, green hydrogen or
electricity from renewable sources. However, the transition to al-
ternative energy sources depends largely on their availability, the
technical retrofitting of the systems, the political framework con-
ditions and economic efficiency.
Steering indicators such as carbon emissions over the entire
product life cycle are important performance indicators during
the development phase of our vehicle projects, ↗ Performance
Indicators and Performance Management. The Board of Management
discusses a status report on sustainability every quarter and de-
rives appropriate measures as required.
By implementing the sustainability targets enshrined in the
Group’s overall strategy at corporate level and applying targets
to new vehicle models (for example carbon equivalent targets at
derivative level, availability of different drivetrains and design
features), we create transparency for our customers in terms of
our sustainability performance. Certified life cycle assessments
allow the BMW Group to demonstrate how measures affect en-
vironmental footprints both before and after purchase. At the
same time, studies involving various customer groups (for exam-
ple potential new customers, early buyers, existing customers
and customers considering BMW Group) that have been carried
out in major markets allow customers to experience sustainabil-
ity concepts themselves and ensure that input from the studies
is incorporated in the sustainability strategy in a continuous strat-
egy development cycle.
Sustainability aspects (ESG criteria) are built into individual mar-
ket strategies across our global organisation. Best practices in
the fields of environmental protection, social sustainability, cor-
porate citizenship and governance are also shared within the in-
ternational sustainability network. «
Direction –
What drives the BMW Group?*
» The BMW Group stands for exciting products and ensures its
entrepreneurial independence through strong profitability. With
its innovative strength, the BMW Group shapes the future of in-
dividual mobility. Exciting products are the fundamental prereq-
uisite for the highest customer satisfaction, attractive brands and
a strong competitive position.
Economic performance plays a significant role in the corporate
governance of the BMW Group. This is supported by our ambi-
tious financial targets for strategic key figures, such as the EBIT
margin in the Automotive segment (between 8% and 10%), a
RoCE in the Automotive segment of at least 18% and an EBT
margin in the Group of more than 10%. ↗ Performance Indicators and
Performance Management
Key factors for customer satisfaction and enthusiasm, as well as
the economic success of the BMW Group, are the quality and re-
liability of all products and services. Therefore, we have set a ho-
listic understanding of quality aimed at providing the best cus-
tomer experience. In 2024, this strategic direction was further
specified. In addition to continuing overarching activities to
strengthen quality awareness (the 'Mission Quality' initiative),
quality efforts will be enhanced through both preventive and re-
active measures from the operational departments.
Digitalisation is being consistently advanced beyond the vehicle
in corporate and customer processes, as well as throughout the
automotive value chain, driving ↗ Innovations and Product Technologies
strengthening the resilience and entrepreneurial flexibility of the
BMW Group. There are corresponding initiatives in all areas of
the Group that accelerate our internal processes and workflows
across the organisation and consistently realise digital potential.
There is also an overarching action plan to operationalise digital
transformation along the entire value chain. The synergistic ap-
proach of our four digital areas of focus – processes, data, tech-
nology and people – serves as the central framework for effec-
tiveness in the digital age. It is a common language, an organis-
ing principle and a communicative basis for the digital transfor-
mation across the Group. The establishment of a board commit-
tee for digitalisation further emphasises its relevance and en-
sures the cross-departmental networking and continuity of pro-
cesses, data and IT up to Board level. ↗ Board of Management - Duties,
diversity, expertise
A focus topic in 2024 was the systematic use of generative arti-
ficial intelligence (AI). The application of generative AI (GenAI) at
the BMW Group supports the digital advancement of the com-
pany by increasing efficiency, fostering innovation, and enhanc-
ing customer experiences. Internally, the BMW Group uses
GenAI strategically to better and more efficiently manage the
complexity of the business and to promote accessibility to corpo-
rate IT. This enables the assurance of affordability and quality
while ensuring high speed in decision-making and process flows.
The potentials of GenAI include improving software develop-
ment, optimising business processes and enhancing customer
experience. The goal is for all employees to acquire the same
foundational knowledge of digitalisation and to recognise and
leverage the potentials within their own areas of responsibility for
the benefit of the BMW Group. «
* This section contains disclosures in line with ESRS 2 SBM-3.48 b).
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Strategic approach –
Where is the BMW Group heading?1
» The BMW Group consistently places the needs of its customers
at the centre by combining forward-looking technologies, excit-
ing products and personalised support into a comprehensive ex-
perience. This allows the Company to meet a wide range of de-
mands and expectations worldwide. The focus areas are
drivetrains with an emphasis on electromobility as well as digi-
talisation, sustainability and the circular economy.
The BMW Group recognised the importance of electromobility
early on. Since the end of 2023, the BMW Group has offered at
least one all-electric model across all brands and segments. In
2024, the Group introduced several new vehicles to the market,
including the BMW iX22, the extended-wheelbase version of the
BMW i5 sedan tailored for the Chinese market, the BMW i5 Tour-
ing2, the MINI Cooper SE2, the MINI Countryman SE2 and the all-
electric MINI Aceman2, the brand’s first crossover model. Thanks
to the attractive product portfolio, intelligent vehicle architectures
and flexible production facilities, the number of deliveries in-
creased to 426,536 fully electric vehicles in 2024, a rise of
13.5% (2023: 375,716 vehicles). ↗ Automotive Segment
In 2025, the BMW Group also expects an increase in the deliver-
ies of its fully electric vehicles. The NEUE KLASSE will enter pro-
duction at the end of 2025. It will set benchmarks in electrifica-
tion, digitalisation and circularity while maintaining BMW's typical
driving pleasure and emotional design. The NEUE KLASSE is
distinguished by its new cluster architecture (NCAR) exclusively
focused on Battery Electric Vehicles (BEVs). The sixth-genera-
tion BMW e-drive technology will significantly improve range,
charging time and manufacturing costs. Inside, the next genera-
tion of the BMW iDrive will provide a completely new digital user
experience: Key elements include the BMW Panoramic Vision, a
revolutionary new head-up technology, the new BMW 3D Head-
up Display for presenting 3D animated and highly precise driving
information, the multifunctional steering wheel for individual con-
trol of display content and the central display with intuitive touch
functionality. Furthermore, the NEUE KLASSE aims for a higher
level of sustainability throughout the entire vehicle life cycle. To
accomplish this, the BMW Group is increasingly integrating sec-
ondary materials and implementing more resource-efficient pro-
duction methods. ↗ Circular Economy and Resource Use
The new technologies, modules and sustainability approaches
that are built into the NEUE KLASSE will be rolled out across the
entire vehicle portfolio by the end of the decade. We are also con-
tinuously developing our combustion technology so that we can
continue to offer customers state-of-the-art vehicles in all seg-
ments in the future, independent of the drive system.
The production of vehicles from the NEUE KLASSE will com-
mence at the newly established BMW Group plant in Debrecen
at the end of 2025 and will subsequently be expanded to addi-
tional locations. ↗ Production Network
The increase in customer demand for fully electric vehicles is de-
pendent on the societal acceptance of electromobility and the
development of the framework conditions, particularly the ex-
pansion of infrastructure, the evolution of energy costs and the
respective regional regulations. The BMW Group plans for a
share of fully electric vehicles to exceed 50% by the year 2030.
↗ Innovations and Product Technologies
Hydrogen fuel cell technology has the potential to serve as an-
other all-electric pillar in our drive portfolio, in addition to battery
electric drives. The BMW Group plans to launch its first series-
produced BMW fuel cell electric vehicle (FCEV) in 2028. In order
to develop this new generation of fuel cell drive technology, the
BMW Group and the Toyota Motor Corporation are expanding
their close, ten-year-plus partnership and combining their tech-
nological expertise and innovative strength. The result of this col-
laboration will be a jointly developed fuel cell drive system used
in individual BMW and Toyota FCEV models. Working with
Toyota in the development and procurement process will create
synergies and scale effects that reduce the cost of the fuel cell
technology. Furthermore, both companies continue to advocate
for governments and investors to create suitable framework con-
ditions for the early adoption of hydrogen mobility and are col-
laborating with companies that establish low-emission facilities
for hydrogen production, distribution and refuelling.
With the market launch of the BMW CE 04 electric scooter in
March 2022, BMW Motorrad has also successfully established
itself in electromobility. Building on this success, the eParkourer
– the BMW CE 02 – was introduced in April 2024 and will con-
tinue the electrification strategy for urban mobility. ↗ Motorcycles
Segment
In addition to delivering product substance, we also offer custom-
ers a 360˚ approach with an appropriate charging ecosystem.
Beyond providing charging options at home and in the work-
place, we are focusing on public charging with our BMW Charg-
ing and MINI Charging offerings and are actively participating in
the expansion of charging infrastructure in the most significant
markets worldwide. Since 2017, the BMW Group has been
strengthening the development of the European fast-charging
network through its joint venture with IONITY. The BMW Group
and six other automobile manufacturers founded the US joint
venture IONNA in 2023 with the objective of strengthening the
North American fast-charging network by installing 30,000
charging points. In China, the BMW Group, together with Mer-
cedes-Benz, founded the joint venture IONCHI in early 2024,
which aims to operate at least 1,000 fast-charging stations by
the end of 2026. ↗ Access to public charging networks
The BMW Group places the customer experience at the centre of
its marketing and sales activities. In an increasingly digital envi-
ronment with changing customer needs, the company is focusing
on a forward-looking sales structure that emphasises the digital-
isation of the customer interface and direct customer access. The
aim is to provide the best premium customer experience in the
industry. «
1 This section contains disclosures in line with ESRS 2 SBM-1.40 a) i.; ESRS 2 SBM-3.48 b),
c) i., ii., iv.
2 ↗ Consumption and Carbon Disclosures.
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» Customers will soon be able to choose whether to initiate the
ordering process for their vehicle with a sales partner or online.
Furthermore, they can seamlessly switch between both worlds,
as the BMW Group is decisively and consistently advancing the
digital sale (online sale) of vehicles.
A key element of the newly aligned sales structure is the transi-
tion to direct sales. Following the pilot market in South Africa,
MINI was the first Group brand to implement the new sales
model in China in 2023. Europe followed in the current reporting
year with Italy, Poland, Sweden, Finland, Norway, France, Aus-
tria, Belgium, Luxembourg and Germany. Additional European
countries will transition to the MINI direct sales model throughout
2025. The introduction of direct sales for the BMW brand is
planned for a later date in Europe.
The new sales model benefits customers, sales partners and the
BMW Group equally. The BMW Group relies on the existing
dealer network, leveraging a central strength of the company: a
highly effective and established sales structure. Thus, today's
dealers will continue to act as active intermediaries between the
BMW Group and our customers.
In the Financial Services segment, we are also continually ex-
panding our offerings to include comprehensive services, includ-
ing insurance. As part of our strategic direction in the financial
services business, we aim to make our product offerings acces-
sible to all customer groups across all channels ↗ Financial Services
Segment. This ensures that our customers receive personalised
offers designed to meet their specific needs.
Circular economy is a key focus for the BMW Group in the drive
towards more resource-efficient mobility. The concept revolves
around keeping materials circulating in the best possible way,
ensuring that resources are used sustainably and retain their
value over time. This approach opens up a range of opportunities
across the entire value chain. Reusing valuable resources also
reduces the BMW Group’s reliance on primary raw materials and
their fluctuating prices. Furthermore, the use of high-quality sec-
ondary materials should reduce the carbon footprint of our vehi-
cles even further. For these reasons, the BMW Group is taking
additional steps to increase the proportion of recycled materials.
With this objective in mind, the BMW Group returns selected pro-
duction residues to the supplier or material processor, enabling
those materials to be recovered and returned in a new production
process. Recycled and reused materials are already being used
in BMW Group vehicles production today. Circular economy re-
quires holistic thinking – from product design to vehicle recycling.
↗ Circular Economy and Resource Use «
Collaboration –
How does the BMW Group achieve this?*
» The BMW Group is constantly striving for the best results. It
supports its employees in further developing their strengths. The
company promotes and demands strong teams, whose mem-
bers complement each other's strengths, collaborate in a con-
nected manner and develop optimal solutions in a complex envi-
ronment. The BMW Group views its diversity as an important el-
ement of its competitiveness ↗ Own Workforce. The diversity metric,
for example, defines the proportion of women in leadership po-
sitions as a strategic target, which also serves as a significant
performance indicator for corporate governance. The aim is to
increase the share of women in leadership positions at the
BMW Group to 22% by the end of 2025. ↗ Performance Indicators
and Performance Management
Through long-established, stable relationships with our external
partners, we aim to achieve maximum impact through trustwor-
thy collaboration. The experiences gained during the recent
COVID-19 pandemic have further strengthened these relation-
ships within the partner network and supply chains. ↗ Purchasing
and Supplier Network
Together with our cooperation partners, we realise potential in
terms of access to know-how, profitability and technology foot-
print. In addition to the partnership with Qualcomm in the devel-
opment of assisted and automated driving, the development
partnership between the BMW Group and Solid Power offers
benefits to both companies. ↗ Innovation and Product Technologies
The development of the automotive industry, particularly with re-
gard to electrification and digitalisation, is associated with pro-
found changes. The BMW Group is proactively addressing the
resulting challenges for the employment structure through tar-
geted skills development and restructuring ↗ Own Workforce. As
part of our integrative Just-Transition approach, we actively facil-
itate a socially responsible transformation of our employees
through comprehensive qualification and training measures. The
realignment of our Munich headquarters in 2024 is an example
of this. By 2027, the transformation of a full plant, including the
production of internal combustion engines, to 100% electromo-
bility will be implemented while production continues. Already to-
day, the BMW Group develops and manufactures electrified drive
components for its current electrified vehicles at its German loca-
tions (Munich, Dingolfing, Landshut, Leipzig and Regensburg) as
well as in China (Shenyang). For the next generation of high-volt-
age batteries, new assembly sites will be established in Debre-
cen (Hungary), San Luis Potosí (Mexico), Woodruff near Spartan-
burg (USA), Shenyang (China) and in Germany at the new site in
Irlbach-Straßkirchen, including the development of correspond-
ing competencies. In this context, the BMW Group is making sig-
nificant investments to drive continuous transformation across
all aspects of sustainability (ESG criteria). ↗ Production Network,
↗ Own Workforce «
* This section contains disclosures in line with ESRS 2 SBM-3.48 b), c) i., ii., iv.
49
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Overview of the BMW Group
PERFORMANCE INDICATORS AND
PERFORMANCE MANAGEMENT 1
The BMW Group’s strategic targets are derived from the findings
of the ↗ Environmental Analysis in an ongoing strategic process and
subsequently translated into a system for measuring perfor-
mance ↗ Cornerstones of the Strategy. The resulting target system is
therefore a key instrument for anchoring strategy throughout the
Company. For corporate management purposes, the strategic
targets are backed by effective performance indicators.
Long-range corporate planning for the Company as a whole and
its segments is geared towards the structure of the BMW Group
target system. In this way, the targets set out in the planning are
regularly compared with the BMW Group’s strategic goals.
Once approved by the Board of Management and the Supervi-
sory Board, the target amounts decided upon within the strategic
target system become the basis of planning for the current re-
porting year and for the target agreements with BMW Group
managers and the members of the Board of Management
↗ Remuneration Report. The following summarises the key perfor-
mance indicators defined in DRS 20, which also form the basis
for performance management in the BMW Group.
From financial year 2025, the key performance indicators will be
adapted to the newly defined strategic targets as regards carbon
equivalent emissions. The absolute values will consequently be
used as performance indicators in millions of tonnes of carbon
equivalent emissions for Scope 1, Scope 2 and Scope 3 (supply
chain and use phase), replacing the values per vehicle ↗ Path to
achieving the CO2e reduction targets in 2030. Carbon emissions from the
new EU vehicle fleet will remain a key performance indicator due
to statutory requirements. These will, however, no longer be con-
sidered the most important performance indicator in light of the
new overarching indicator for Scope 3 emissions.
Group
—
Profit before tax (EBT)
—
Number of employees at the end of the year
—
Share of women in management positions (in %)
—
Carbon equivalent emissions for Scope 1 and 2 (in millions
of tonnes CO2e; from 2025)2
Automotive segment
—
Profit before financial result as a percentage of revenues
(EBIT margin, in %)
—
Return on capital employed (RoCE, in %)
—
Deliveries (in units)
—
Share of all-electric automobiles in deliveries (in %)
—
Carbon equivalent emissions for Scope 3 (purchased goods
and services, transport logistics, use phase; in millions of
tonnes CO2e; from 2025)3
—
Carbon equivalent emissions from the BMW Group loca-
tions for Scope 1 and 2 per vehicle produced (in tonnes; until
2024)
—
Carbon emissions of the new EU vehicle fleet (in g/km; until
2024)
Motorcycles segment
—
Profit before financial result as a percentage of revenues
(EBIT margin; in %)
—
Return on capital employed (RoCE, in %)
—
Deliveries (in units)
Financial Services segment
—
Return on equity (RoE) in %
1 This section contains disclosures in line with ESRS 2 SBM-1.40e)-g); 42a)-c).
2 Excluding locations where the Group does not have operational control, including biogenic emis-
sions.
3 Only includes automobiles.
50
BMW Group Report 2024
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Overview of the BMW Group
Performance management
» The BMW Group’s performance management system follows
a value-based approach. that focuses on profitability, consistent
company growth, value enhancement for capital providers, sus-
tainability, climate change mitigation and job security. Capital is
considered to be employed profitably when the amount of profit
generated on a sustained basis exceeds the cost of equity and
debt capital. This strategy also secures the desired degree of cor-
porate autonomy in the long term.
The BMW Group’s performance management system is based
on a multi-layered structure. Operational performance is man-
aged primarily at segment level. In order to influence long-term
corporate performance, additional key performance figures are
taken into account within the management system at Group
level. In this context, the value added serves as one of several
indicators to measure the contribution made to enterprise value
during the financial year.
This aspiration to add value is measured at both Group and seg-
ment level by means of the key performance indicators. The link
between value added and the relevant value drivers is presented
in a simplified form below. «
BMW Group – Value drivers
Expense
Revenues
Profit
Capital
employed
Weighted
average cost
of capital
Cost of capital
Value added
Return on
sales
Capital
turnover
Return on
capital
(RoCE oder
RoE)
÷
÷
×
−
×
−
51
BMW Group Report 2024
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Overview of the BMW Group
Managing sustainability
The BMW Group’s long-term corporate strategies are deter-
mined by the Board of Management. Responsibility for imple-
menting the Group’s sustainability goals also lies with the Board
of Management. Significant decisions are therefore evaluated
from the point of view of sustainability. This ensures that sustain-
ability issues are systematically integrated in decision-making
processes and to compensation at top management levels. As
part of the procedures for managing sustainability on an inte-
grated basis at corporate level, a Group target system has been
created that addresses environmental, social and governance is-
sues. The allocation of sub-targets to specific areas and products
ensures consistency in the management and responsibility
model. For example, carbon equivalent reduction targets have
been set specifically for projects working on the development of
new vehicles. The Board of Management is made aware of the
latest developments relating to target management in the course
of the year, at least once a quarter.
Managing operational performance at segment level
» At segment level, operational performance is managed using
an aggregated approach based on returns on capital employed.
Depending on the business model, the segments are measured
on the basis of return on capital employed or return on equity.
Return on capital employed (RoCE) is used for the Automotive
and Motorcycles segments and return on equity (RoE) for the Fi-
nancial Services segment. These indicators combine a wide
range of relevant economic information, such as profitability (re-
turn on sales) and capital efficiency (capital turnover) to measure
segment performance and the development of enterprise
value. «
Automotive segment
» The most comprehensive key performance indicator used for
the Automotive segment is RoCE, which provides information on
the profitability of capital employed and business operations.
Value driver analyses are used to interpret the causes of a
change in RoCE and derive suitable measures to influence its de-
velopment.
The capital employed items taken into account reflect the focus
of operational segment management. Capital employed is calcu-
lated as the sum of intangible assets, property, plant and equip-
ment and net working capital, the latter comprising inventories
and trade receivables less trade payables. The amount of capital
employed increased in light of the full consolidation of BMW Bril-
liance in the 2022 BMW Group Financial Statements. The in-
crease arose primarily due to the takeover of property, plant and
equipment and intangible assets, as well as the capitalisation of
reacquired rights in conjunction with the purchase price alloca-
tion. The RoCE will be impacted temporarily by the higher capital
base as well as the related amortisation expense expected to be
recorded.
The strategic target for RoCE is 18%.
Due to the special significance of RoCE for the BMW Group, the
Automotive segment is also managed on the basis of a number
of additional key performance indicators that have a significant
impact on RoCE and hence on segment performance. These
value drivers include deliveries and the operating return on sales
(EBIT margin: segment profit before financial result as a percent-
age of segment revenues) as a key figure for profitability in the
segment.
Furthermore, the Automotive segment manages its compliance
with fleet carbon emissions requirements in regulated markets.
This also includes the share of all-electric automobiles in deliver-
ies reported since financial year 2023 ↗ Performance Indicators and
Performance Management. As compliance with regulatory require-
ments is a significant factor in the BMW Group’s success, busi-
ness decisions relating to vehicle projects also take targets for
fleet carbon emissions into account. «
Profit before financial result
in € million
Average capital employed
in € million
Return on capital employed
in %
2024
2023
2024
2023
2024
2023
Automotive
7,893
12,981
69,205
64,412
11.4
20.2
Average
capital employed
Profit before
Financial result
=
RoCE Automotive
or Motorcycles
Return on capital employed (Automotive segment)
52
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Overview of the BMW Group
Motorcycles segment
» The Motorcycles segment is largely managed based on the
same logic applied to the Automotive segment. The principal key
performance indicator is the return on capital employed (RoCE).
The strategic RoCE target set for the Motorcycles segment is
18%.
The main value drivers are the deliveries and the operating return
on sales (EBIT margin: segment profit before financial result as
a percentage of segment revenues) as the key performance in-
dicator for segment profitability. «
Financial Services segment
» The performance of the Financial Services segment is meas-
ured on the basis of the return on equity (RoE), a key perfor-
mance indicator commonly used in the banking sector. Within the
BMW Group, RoE is defined as segment profit/loss before tax,
divided by the average amount of equity capital in the Financial
Services segment. The target is a return on equity of at least
14%. «
Return on capital employed (Motorcycles segment)
Profit before financial result
in € million
Average capital employed
in € million
Return on capital employed
in %
2024
2023
2024
2023
2024
2023
Motorcycles
198
259
1,281
1,171
15.5
22.1
Return on equity (Financial Services segment)
Profit before tax
in € million
Average equity
capital in € million
Return on equity
in %
2024
2023
2024
2023
2024
2023
Financial Services
2,538
2,962
16,775
17,176
15.1
17.2
Average
equity capital
Profit before
tax
=
RoE Financial Services
53
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Overview of the BMW Group
Strategic management at Group level
Strategic management and the measurement of its financial im-
pact are coordinated primarily at Group level in conjunction with
the long-term corporate plan. Group profit/loss before tax pro-
vides a comprehensive measure of the Group’s overall corporate
performance after consolidation effects and enables a transpar-
ent comparison over time. Other key performance indicators at
Group level are the size of the workforce at the year-end as well
as the share of women in management positions. By 2025, the
BMW Group aims to increase the share of women in manage-
ment positions to 22%, with a corridor of 23 to 25% by 2030.
↗ Cornerstones of the Strategy
The information provided by these key performance indicators at
Group level is complemented by the two financial performance
indicators of pre-tax return on sales and value added. Value
added, as a highly aggregated performance indicator, also pro-
vides an insight into capital efficiency and the (opportunity) cost
of capital required to generate Group profit. A positive value
added means that a return on investment above the cost of cap-
ital has been achieved.
Capital employed comprises the amount of Group equity and
pension provisions as well as the financial liabilities of the Auto-
motive and Motorcycles segments employed on average at the
end of each of the last five quarters.
The earnings amount corresponds to Group profit/loss before
tax, adjusted for interest expense incurred in conjunction with the
pension provisions and on the financial liabilities of the Automo-
tive and Motorcycles segments (profit/loss before interest ex-
pense and tax). The cost of capital is the minimum rate of return
expected by capital providers in return for the capital employed.
Since capital employed comprises an equity capital (e.g. share
capital) and a debt capital element (e.g. bonds), the overall cost
of capital is determined on the basis of the weighted average
rates for equity and debt capital, measured using standard mar-
ket procedures. The pre-tax weighted average cost of capital
(WACC) for the BMW Group in 2024 was 12%, unchanged from
the previous year.
In order to determine the internal rate of return, risk-adjusted cost
of capital rates are based on the average of actual rates in recent
years. In light of the long-term nature of product and investment
decisions, the following internal rates of return are used in con-
junction with segment management:
in %
2024
2023
Automotive
12.0
12.0
Motorcycles
12.0
12.0
Financial Services
13.4
13.4
Value-based management for project decisions
Operational business in the Automotive and Motorcycles seg-
ments is largely shaped by the life-cycle-dependent character of
investment projects that have a substantial influence on future
performance. Project-related decisions are therefore a crucial el-
ement of financial management in the BMW Group. Project deci-
sions are based on calculations derived from the expected cash
flows of each individual project. Calculations are made for the
complete term of a project, incorporating future years in which
the project is expected to generate cash flows. Project decisions
are taken on the basis of net present value and the internal rate
of return calculated for the project. The net present value indi-
cates the extent to which the project will be able to generate fu-
ture net cash inflows over and above the cost of capital. A project
with a positive net present value enhances future value added
and therefore results in an increase in enterprise value. The pro-
ject’s internal rate of return measures the average return on the
capital employed in the project. For all project decisions, the pro-
ject criteria and long-term impact on periodic results are meas-
ured and incorporated in the long-term Group plan. This ap-
proach enables an analysis of the impact of project decisions on
periodic earnings and rates of return for each year during the
term of the project.
Board of Management remuneration
Performance criteria for the variable remuneration paid to mem-
bers of the Board of Management are based on the key strategic
targets and performance indicators. More information can be
found in the ↗ Remuneration Report.
Earnings amount
Cost of capital (equity + debt capital)
Value added Group
in € million
2024
2023
2024
2023
2024
2023
BMW Group
11,178
17,257
11,973
11,615
– 795
5,642
Earnings amount –
Cost of capital
Value added
Group
Earnings amount –
(cost of capital rate x capital employed)
=
=
Value added Group
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Overview of the BMW Group
INNOVATIONS AND PRODUCT TECHNOLOGIES
Remaining consistently one step ahead while keeping a firm eye
on the future is a core aspect of the BMW Group’s philosophy and
an expression of our firm commitment to innovation.
Much of 2024 was devoted to preparing for the NEUE KLASSE.
The BMW Group is thus setting the course for the future. With a
focus on electrification, digitalisation and sustainability, the cus-
tomer experience and a new design language are at the core of
the NEUE KLASSE. This advancement is also evident in the rec-
ord figures for research and development expenditure and the
capitalisation rate in the reporting year.
New BMW Panoramic iDrive with Operating System X
from 2025
The new operating system BMW Operating System X forms the
basis of the new BMW Panoramic iDrive, set to be deployed ini-
tially in the NEUE KLASSE from late 2025 then subsequently in
all new models. The BMW Panoramic iDrive is intuitive, conven-
ient, offers improved ergonomics and provides the driver with ap-
propriate information depending on the situation. The newest
generation of the BMW Panoramic iDrive has four central ele-
ments: the BMW Panoramic Vision, the BMW 3D Head-up Dis-
play, the Central Display and the multifunctional steering wheel.
The Panoramic Vision projects information across the width of
the entire windscreen using three integrated displays beneath
the dashboard. It creates a spatial image in the driver’s field of
view that can be personalised in line with individual wishes. The
3D Head-up Display offers integrated displays for navigation and
automated driving for the first time. These displays provide com-
plementary content and are designed for the BMW Panoramic
Vision. The Central Display with matrix backlight technology fea-
tures a refined menu structure and can display up to six cus-
tomisable widgets. The multifunctional steering wheel is the
main physical control element and provides active haptic feed-
back. These four elements combined offer a reinterpretation of
BMW’s typical driver-oriented focus of “hands on the wheel, eyes
on the road”.
BMW Operating System X represents a further development in
BMW’s current operating system. It is based on an Android Open
Source Project (AOSP) software stack and offers improved up-
date and upgrade capability. The state-of-the-art system is scal-
able and can be integrated in all vehicle segments.
Digitalisation for innovation and the customer experience
Digitalisation is a key element in keeping the vehicle up to date
for customers long after they have taken delivery of their new au-
tomobile. Since the launch of Operating System 7 in 2018, a re-
mote software upgrade (RSU – i.e. updating the vehicle’s soft-
ware without taking the vehicle for servicing) has been available
for BMW vehicles. At the end of 2024, over nine million BMW
vehicles worldwide were already fully updatable.* In other words,
these vehicles can be updated in every respect, including info-
tainment, the drivetrain, driver assistance, convenience and
safety.
Independent of RSUs, BMW ConnectedDrive upgrades also al-
low additional functions, such as apps or extended navigation, to
be either bought or simply booked for a specific period after the
vehicle has initially been purchased.
The vehicle as a digital experience
The latest generation of BMW Group vehicles offers customers a
maximum of interaction, infotainment and connectivity. State-of-
the-art on- and off-board technologies such as 5G connectivity
and cloud services make the vehicles an integral part of their us-
ers’ digital lives. The comprehensive connectivity enables a
whole host of digital services and functions, from smart and
learning navigation to in-car gaming and video streaming. The
vehicle is thus becoming another living space for its users.
Software expertise at the BMW Group
The BMW Group began developing its own software more than
20 years ago. Since then, the Group has expanded its network to
include teams of developers at key research centres worldwide.
Additional IT hubs were added to the network in the reporting
year in the form of BMW TechWorks in Romania and India.
↗ Locations
* The availability and contents of remote software upgrades depends on the country, model, equip-
ment and software version installed.
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Digital connectivity and automation
Automated functions and digitally connected vehicles can help to
reduce the risk of accidents, ease traffic congestion and cut emis-
sions. That’s why the BMW Group is consistently driving this is-
sue forward – with a sharp focus on customer convenience and
safety.
To ensure the safety of automated systems, the BMW Group is
promoting the development of industry-wide ISO standards for
partially, highly and fully automated driving functions. In prepa-
ration for innovations, work began in 2024 based on SAE clas-
sifications1 to revise the ISO standards for Level 1 and Level 2
functions, and the content of an ISO technical specification was
adopted for Level 3 and Level 4 functions, which will allow it to
be published in 2025. Moreover, an additional ISO PAS was ini-
tiated based on the ISO PAS standard published in 2023 on the
introduction of Level 2 systems with innovative driver integration.
The documents define uniform technical standards for safe as-
sisted and automated driving.
The BMW Group is testing automated driving and parking func-
tions and even fully automated driving (Level 4) at the Future
Mobility Development Center - a facility built specifically for this
purpose in Sokolov, Czech Republic. With the help of virtual sim-
ulations and real-life testing, all driving situations are covered,
whether in the city, in the country, on the highway or when park-
ing. The BMW Group’s research facilities in China and the USA
are also testing automated driving and gaining experience and
kilometres for later practical application in the largest automotive
markets.
Even today, customers can use the BMW Highway Assistant and
the Active Lane Change Assistant in the BMW 5 Series, the
BMW 7 Series and the BMW X52, X62, X72, XM2 and BMW iX2.
The Highway Assistant allows the driver to take their hands off
the steering wheel while driving longer distances. The innovative
Active Lane Change Assistant allows the vehicle to change lanes
automatically without the driver having to touch the steering
wheel, with the driver simply needing to look in the wing mirror to
confirm the manoeuvre. The prerequisites for this technology in-
clude high-precision sensors, a powerful computing platform and
connection to the BMW Cloud.
Take your hands off the steering wheel and temporarily turn your
attention away from the traffic situation – this is highly auto-
mated driving at Level 3 and has featured in new BMW 7 Series
models since 2024. BMW Personal Pilot L3 is the name of the
new function that relieves customers of the task of driving in de-
fined traffic situations and regulates speed, distance and lane
guidance for them. The innovative system enables drivers to en-
gage in secondary activities (such as writing messages or watch-
ing video streaming) on highways with structurally separated
lanes and at speeds of up to 60 km/h. The BMW Group is also
the first automobile manufacturer in the world to obtain approval
to combine the BMW Highway Assistant (Level 2) and BMW Per-
sonal Pilot L3 (Level 3) assistance systems in a single vehicle.
The new BMW 7 Series therefore represents a milestone in the
field of automated driving and presents a unique opportunity to
enjoy the benefits offered by both systems in the same vehicle.
Artificial intelligence
The use of artificial intelligence (AI) provides a number of oppor-
tunities for the BMW Group to improve its processes and provide
new impetus in its collaborations. Generative language models
(GPT) could play a key role here in particular. The use of AI can
speed up operational processes and also support creative activ-
ities, giving rise to significant opportunities to continuously im-
prove working methods, knowledge sharing, interaction with cus-
tomers and the customer experience.
The Company is committed to integrating and industrialising
generative AI in its own business processes. A self-service plat-
form also helps employees to integrate AI-based solutions
quickly and easily into their everyday work life.
Different application scenarios are implemented along the entire
value chain, including:
—
Image-generating AI for end-to-end support of design and
vehicle construction processes
—
Large language models, such as those on which ChatGPT
is based, for voice applications within the vehicle
—
Text and image generation applications, as well as
knowledge management based on large language models
for exploration for all employees
—
Application of generative AI in various processes at the
BMW Group, such as: market and sales communication, e.g.
generated marketing texts
—
Customer car: AI-supported customer chat to respond to
product and service queries in selected markets (BMW/MINI
Assistant)
—
Knowledge management for customer interaction in call
centres
—
Knowledge management or comparison of offers in pur-
chasing
—
Testing and comparison of vehicle specifications
—
Coding support for IT and vehicle development
1 SAE levels categorise the degree of automation from manual to autonomous driving in five
stages.
2 ↗ Consumption and Carbon Disclosures.
2
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Products consistently focused on customer needs
The BMW Group’s product portfolio is fully focused on custom-
ers’ needs. It serves the growing demand for electrified vehicles
while also taking account of the varying conditions and require-
ments in different markets. In addition to all-electric models, the
Group also offers a wide range of plug-in hybrids and vehicles
with efficient combustion engines. The range of technologies
used in our vehicles gives customers numerous options to
choose from when selecting the right drivetrain for them.
Flexible production systems and a scalable modular vehicle sys-
tem are a visible expression of the BMW Group’s customer focus,
with the BMW X1*, BMW X3*, BMW 3 Series, BMW 5 Series and
BMW 7 Series now available across all three drive systems.
The Group is also working to advance the development of fuel
cell technology with a view to reducing carbon emissions even
more quickly. Depending on the segment, the Group sees hydro-
gen-powered electric vehicles as an important complement to
battery-powered electric cars. The BMW Group plans to intro-
duce the first fuel cell electric vehicle (FCEV) manufactured in se-
ries production to the market in 2028.
New generation of battery cells
High-performance, innovative and sustainably produced battery
cells are the key to success for individual electromobility. With the
NEUE KLASSE, as of 2025 the BMW Group will be using newly
developed battery cells for the first time, which are explicitly co-
ordinated to suit the new vehicle architecture. The energy density
in the sixth generation of our lithium-ion cells is around 20%
higher than in previous generations, with charging speed im-
proved by up to 30% and range by around 30%.
Making conventional drivetrains more efficient
The BMW Group works continuously to improve the high effi-
ciency of its conventional drivetrains and will continue to do so in
future, while also meeting the most stringent standards in effect
worldwide.
In Europe, the Group offers numerous model series that feature
a 48-volt recuperation system, in addition to its all-electric mod-
els and modern plug-in hybrids. The refinement of energy man-
agement in vehicles and the adoption of further measures, such
as the use of state-of-the-art tyres with reduced rolling
resistance, have laid the technical foundations to achieve opti-
mised consumption values.
The level of nitrogen oxides is a crucial factor for air quality in
cities. For this reason, since 2018 the BMW Group has been us-
ing a highly effective combination of nitrogen oxide storage cat-
alytic converters (NSCs) and selective catalytic reduction (SCR)
systems that include urea injection (AdBlue) in almost all BMW
diesel vehicles as well as in the larger diesel-powered MINI mod-
els. The efficiency of exhaust gas aftertreatment has been further
raised by the use of an improved oxidation catalytic converter in
combination with a two-stage SCR system. This new technology
has been available since 2020 with the revised generation of six-
cylinder diesel engines and is expected to be in use in all models
by 2026. The technology has been continually rolled out in four-
cylinder diesel engines since 2021 and should be completed by
2027. There have already been signs of a reduction in NOx pol-
lution in German and European cities over the last few years.
Apart from various measures taken to reduce pollutants, the on-
going renewal of the vehicle fleets of all automobile manufactur-
ers has also contributed to the improvement.
Hydrogen drives – series offering planned for 2028
After trialling fuel cell technology in the BMW iX5 Hydrogen in a
pilot fleet worldwide, the BMW Group is taking the next steps to
prepare for series production of hydrogen-powered cars from
2028. This will be an additional all-electric and locally emissions-
free drivetrain option for the customers of the BMW Group. The
next generation of fuel cell drive technology is being developed
in collaboration with the Toyota Motor Corporation. Both coop-
eration partners are advocating for framework conditions that will
facilitate the early expansion of hydrogen mobility and ensure its
economic viability. In supporting the requisite infrastructure, the
two companies aim to establish the FCEV market as an addi-
tional pillar to other drive technologies. They are also involved in
regional and local projects that serve to advance the develop-
ment of hydrogen infrastructure through joint initiatives.
* ↗ Consumption and Carbon Disclosures.
eFuels and HVO100 plant refuelling
The Group also supports the use of sustainably produced, low-carbon
fuels, which can effectively reduce the carbon emissions of combustion
engine vehicles. A specific example here is the paraffinic diesel HVO
(hydrotreated vegetable oil), which has been sold at fuel stations
throughout Germany and Europe since late May 2024. HVO100, a fuel
made entirely from renewable materials, can reduce greenhouse gas
emissions by up to 90% throughout the entire life cycle, as compared
to the fossil fuel diesel.
In December, the BMW Group started to fill its current BMW diesel
models with HVO100 at plants in Germany, prior to delivery of these
models to dealer organisations. BMW Group diesel engines have been
approved on a series- and model specific basis to use the new fuel in
accordance with European fuel specification EN 15940 since the pro-
duction month March 2015.
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The BMW Group is also committed to promoting hydrogen tech-
nology at a supranational level and is involved in international
organisations and associations such as the ↗ Hydrogen Council. As
an associated partner of ↗ H2 Mobility Deutschland GmbH, the
BMW Group is also supporting the development of hydrogen in-
frastructure in Germany.
Reliable, comprehensive charging opportunities
An expanded, customer-friendly charging infrastructure will pave
the way for the rapid and widespread use of electric mobility. With
the adoption of the Alternative Fuels Infrastructure Regulation
(AFIR) in 2023, the EU resolved to set up a basic network of both
electric charging stations and hydrogen filling stations by the end
of 2030. From the BMW Group’s point of view, this is a first key
step towards providing a customer-friendly charging infrastruc-
ture.
The BMW Group remains committed to achieving standardised
framework conditions and develops and encourages offers that
enable comprehensive and customer-friendly charging opportu-
nities. Customers will be offered solutions for charging at home.
The BMW Group also supports the expansion of public charging
infrastructure through its cooperations. At its German locations,
the BMW Group offers its own large charging network for its em-
ployees.
Charging should be as convenient as possible. The BMW Group
is therefore also working on digital solutions. Up-to-date charg-
ing information can be found on the Connected Charging appli-
cation and the charging process can be managed with the push
of a button. The eRoute function also helps customers to plan
their charging stops on long-distance trips. With offers such as
the BMW eDrive Zone and suitable electricity tariffs for driving,
we are helping drivers of plug-in hybrids to drive electrically as
frequently as possible and over long distances.
Integrating electrified vehicles in the energy system
The BMW Group is conducting its own research and develop-
ment work with the aim of integrating electrified vehicles in the
power grid. Smart charging technologies such as load- or solar-
optimised charging are at the centre of this research. ↗ BMW
ChargeForward enables customers in the USA to synchronise their
charging behaviour with the current grid load and the use of re-
newable energy. The technology has been available to all drivers
of electrified vehicles in the USA since November 2023.
Our new joint venture ChargeScape LLC, USA, was founded in
this context in the reporting year with our partners Ford and
Honda. ChargeScape will provide an open software platform for
OEMs and energy providers that allows US customers to intelli-
gently charge their electric vehicles at home. This should opti-
mise the use of renewable energies and help to stabilise the grid.
At the same time, the customer can be compensated for their
contribution to reduced carbon equivalent emissions. Customers
in Europe can use the BMW Connected Home Charging service
to make use of solar- or load-optimised charging for their vehi-
cles at home in Germany, Italy, Austria, Denmark, Norway and
Sweden. The aim here is to establish a Europe-wide ecosystem
for smart charging at home by means of a strategic cooperation
with the grid operator E.ON. There are plans to steadily expand
the service offering over the next few years, with cost-optimised
charging introduced in the reporting year, at this point only in
Germany.
The next step forward: bidirectional charging
In developing its charging services, the BMW Group is also work-
ing on bidirectional charging. Bidirectional charging, which is to
be launched with the NEUE KLASSE, allows the all-electric vehi-
cle’s high-voltage battery to be used as an energy store and the
buffered energy to be used in the household or fed back to the
grid at a later time. Vehicle to Home, Vehicle to Grid and Vehicle
to Load will provide new functions that allow part of the battery’s
capacity to be made available externally on optimised terms (Ve-
hicle to Grid) or allow the energy stored in the vehicle to be used
for external electrical devices (Vehicle to Load). The NEUE
KLASSE can therefore be used as a mobile power bank, for ex-
ample to charge e-bikes or power electrical devices when camp-
ing.
Access to public charging networks
With BMW and MINI Charging, we offer attractive electricity tariffs
and convenient charging solutions – whether on the road, at
home or at work. Customers can use a large number of public
charging points via their BMW or MINI charging card and the My
BMW and/or MINI app. Digital Charging Solutions GmbH (DCS)
provides broad access to various charging networks throughout
Europe. DCS is one of Europe’s leading providers of digital charg-
ing solutions and a joint venture between the BMW Group, Mer-
cedes-Benz and bp.
BMW and MINI customers have access to 2.6 million charging
points worldwide* through the navigation system or the relevant
vehicle app. In Europe alone, we provide easy access to a net-
work with over 820,000 charging points through the public
BMW/MINI Charging service, covering over 90% of the region.
These also include fast-charging stations from IONITY, a com-
pany launched by the BMW Group, with a charging capacity of
350 kilowatts (kW). IONITY currently operates 720 stations with
more than 4,800 charging points in a total of 24 countries, which
are publicly accessible, brand-independent and designed in ac-
cordance with the European Combined Charging System (CCS)
charging standard.
* Total number of charging points displayed on BMW front-ends (vehicle and app). The network
can be accessed by registered customers wherever a local partner is available.
58
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Furthermore, they are all powered by 100% electricity from re-
newable sources1. In addition to the BMW Group, Mercedes-
Benz, Ford, Porsche, Volkswagen, Audi, Hyundai, Kia and
BlackRock are all involved in the long-established IONITY joint
venture. IONITY offers an efficient, high-power charging network
for electric vehicles right across Europe.
The BMW Group expanded its cooperation arrangements aimed
at expanding charging infrastructure in the USA and China in the
reporting year. In late 2023, the BMW Group jointly founded
IONNA together with General Motors, Honda, Hyundai, Kia, Mer-
cedes-Benz and Stellantis. The partners are working together
with the aim of establishing a public charging network in the USA
and Canada. Toyota joined IONNA as an additional partner in
July 2024. The aim is to install at least 30,000 charging points
in cities, towns and along major transport routes. The first charg-
ing stations opened in late 2024.
On 4 March 2024, BMW Brilliance Automotive Ltd. (BBA) and
Mercedes-Benz China founded Beijing IONCHI New Energy
Technology Ltd. with a view to developing the charging infra-
structure in the Chinese market. BBA will hold a 50% stake in the
founded entity. With the new charging infrastructure in the con-
text of the new Chinese joint venture, the BMW Group is meeting
its charging commitment in its three most important markets.
With this aim in mind, at least 1,000 charging stations with
around 7,000 charging points are to be installed by the end of
2026. The network will be open to drivers of all brands. The first
charging stations went into operation as early as 2024 in regions
with a high density of electrified vehicles.
A Plug&Charge function was added to other BMW models in the
reporting year for public charging in which both authentication
and billing are carried out automatically by connecting the vehicle
to the charging system. Using the so-called multi-contract func-
tionality, individual driving electricity tariff contracts from various
providers can also be stored digitally within the vehicle to facili-
tate the use of charging stations from different operators.
The BMW Group also promotes the use of renewable energy. For
each charging process conducted via BMW and MINI Charging,
the equivalent amount of energy consumed is fed into the power
grid as electricity from renewable sources, which is certified via
energy attribute certificates (EACs) as recognised proofs of
origin.
A thriving culture of inspiration and innovation
Good ideas often emerge when different partners work together.
According to this principle, we focus on collaborations in which
the BMW Group complements its strengths with those of estab-
lished partners and innovation drivers such as start-ups. The
global network of BMW Group Technology Offices is also making
an essential contribution in this regard, enabling the BMW Group
to expand its innovative strength on a continuous basis.
The Technology Offices are strategically positioned worldwide
and focus on key hotspots of technology and innovation. The po-
tential of new technologies is therefore being explored in pilot
projects and transferred to the Group’s centralised teams.
Whether manufacturing, developing smart city solutions or work-
ing on the mobility of the future, these Technology Offices are
driving forward innovations that benefit the Group in all its lines
of business.
Global dialogue with start-ups is an important means for the
BMW Group to gain impetus. ↗ BMW i Ventures invests in technol-
ogy start-ups and the ↗ BMW Startup Garage serves as the
BMW Group’s venture client unit and is tasked with searching for
innovations that represent a significant benefit for products, ser-
vices, systems and processes. The aim of the programme is to
evaluate and empower start-ups to become suppliers and part-
ners.
The trend research conducted by the technology offices enables
the BMW Group to anticipate the technological developments of
tomorrow. The results are made publicly available in the ↗ Trend
Radar where scientific institutions, start-ups, but also potential
partners can make use of them.
When it opened in Silicon Valley in 1998, the BMW Group Tech-
nology Office USA was the Group’s first research and develop-
ment facility to be established outside of Munich. Originally
based in Palo Alto, the tech office moved to its current location in
Mountain View in 2011. Today, the Mountain View team is part
of a global network of BMW tech offices strategically located in
key technology hotspots around the world. They all play a crucial
role in the BMW Group’s open approach to innovation. Apart
from the locations in Silicon Valley and Munich, the worldwide
network also includes Seoul, Shanghai, Tel Aviv and Tokyo.
1 See ↗ Glossary for a definition of electricity from renewable sources.
2 ↗ Consumption and Carbon Disclosures.
Vehicle footprint – transparent vehicle data
The BMW Group intends to use the ↗ Vehicle footprint to make its sustain-
ability performance more transparent at product level. Vehicle footprints
provide a quick and comprehensive insight into material sustainability
matters, including social sustainability. Vehicle footprint reports are now
available for ten BMW and five MINI models.
2
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Virtualisation
For the BMW Group, the virtualisation of products, processes
and interaction spaces are a catalyst for digitalisation, reflecting
the fact that the combination of rapidly developing technologies
such as Web 3.0, artificial intelligence, X-reality (virtual reality,
augmented reality, mixed reality) and spatial computing gener-
ates benefits across all areas of the value chain. Our activities
comprise the following three pillars and underline the
BMW Group’s commitment to innovation:
—
Corporate. The virtualisation of internal processes, methods
and products with real-time collaboration, regardless of lo-
cation
For example, as part of the BMW iFACTORY, planners can
use virtual reality to virtually assess buildings, systems, lo-
gistics and the assembly of new production areas and test
processes in 3D, long before construction is scheduled to
begin.
—
Commercial. Interaction with both new and existing tech-
savvy target groups in virtual spaces and virtual worlds.
Engagement on digital platforms enables experience-ori-
ented inter-action with young target groups (Gen Z) within
their digital ecosystems with the aim of enhancing brand im-
age and developing long-term customer loyalty. In dedi-
cated virtual worlds, innovative products can be experienced
in a new way and supported throughout the entire customer
journey.
—
In-car experiences. Enhancing the quality of experience with
a focus on infotainment, productivity and gaming.
With the M Mixed Reality approach, for example, a team of
engineers at BMW M GmbH has developed an immersive
driving experience for the BMW M2*, M4* and BMW i5 M60*,
which is made available to BMW M Driving Experience cus-
tomers. Wearing VR goggles, drivers can be immersed in a
virtual world while driving the real vehicle. In addition, the
BMW Group has set new standards in varied in-car enter-
tainment with the launch of the innovative casual gaming
platform Air Console in numerous current BMW and MINI
models, in particular with games such as UNO Car Party!.
Worldwide cooperations and partnerships
To ensure its long-term success, the BMW Group enters into tar-
geted cooperations and partnerships with companies from vari-
ous industries. Several of the Group’s largest collaborations and
investments are listed below:
Since 2022, the BMW Group and Qualcomm Technologies have
been working together to develop solutions for the next genera-
tion of automated driving. The companies aim to develop tech-
nologies ranging from New Car Assessment Programme (NCAP)
solutions and advanced Level 2 driving assistance systems to
the Level 3 functionalities of highly automated driving. The joint
development of software functions is based on BMW’s current
software toolkit for automated driving. Within the terms of the co-
operation, some 1,300 specialists will work together at various
locations worldwide, including sites in Germany, the USA, Swe-
den, China, Romania and the BMW Test Centre in Sokolov in the
Czech Republic.
Continuing their long-term supplier relationship, the BMW Group
has collaborated with Valeo Comfort and Driving Assistance SAS
since early 2023 on the joint development of highly automated
parking functions.
Since the launch of the first BMW voice assistant (BMW Intelli-
gent Personal Assistant) in 2018, voice interaction has become
an increasingly important part of the BMW iDrive display and op-
erating concept. The next generation of the voice assistant is
based on Alexa Custom Assistant technology. This new technol-
ogy has been included in vehicles ex-factory since 2024 and is
available for previously manufactured automobiles via a remote
software up-grade, facilitating an even more natural dialogue be-
tween drivers and vehicles.
The HERE mapping service was acquired by BMW, Mercedes-
Benz and Audi in 2015. Bosch, Continental, Intel, Mitsubishi
(MC), NTT (Nippon Telegraph and Telephone Corporation of Ja-
pan) and Pioneer are also current shareholders. The participa-
tion in HERE ensures access to scalable, high-resolution maps
for existing and new vehicles as well as geodata services and
navigation software.
Mobility services offered by the BMW Group
Together with Mercedes-Benz, the BMW Group offers mobility
services via the YOUR NOW joint venture. The range of services
provides customers with access to various modes of transport
other than their own vehicle.
Apart from taxi cabs and private ride services, various types of e-
scooters as well as car-sharing vehicles can also be booked via
the FREE NOW app in European cities. FREE NOW also pro-
motes the electrification of the vehicle fleet. Almost half of all
journeys taken in taxis and personal hire vehicles (PHVs) were in
vehicles with hybrid or all-electric drivetrains. The majority of
multi-mobility journeys (e-scooters, e-mopeds, e-bikes, car shar-
ing, car rentals) in the past year were emissions-free.
The BMW Group offers a range of additional mobility services in
the My BMW or MINI app. Through its cooperation with SIXT, for
example, customers can access mobility services with exclusive
special benefits. This BMW add-on mobility offering is currently
available to BMW and MINI customers in a growing number of
markets.
* ↗ Consumption and Carbon Disclosures.
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PRODUCTION NETWORK 1
» The BMW Group has a highly flexible production network. Con-
sequently, the BMW Group is capable of manufacturing vehicles
with both all-electric and plug-in hybrid drive systems as well as
conventional combustion engines on one single line, making it far
easier to tailor the product range to suit a wide variety of cus-
tomer wishes and needs.
The production system is based on the strategic vision of the
BMW iFACTORY, with a keen focus on sustainability, electrifica-
tion, digitalisation and profitability. The BMW iFACTORY utilises
innovative technologies that facilitate flexible, efficient production
with the aim of minimising the use of resources, and uses digital
solutions in the fields of data science, AI, virtual planning and de-
velopment to this end. «
Component production for electrified vehicles
» The Competence Centre at the BMW Group’s Dingolfing plant
plays a central role in the manufacture of the current fifth-gener-
ation electrified drivetrains. as battery modules, high-voltage
batteries and electric motors are all produced at the site. The
Group produces fifth-generation high-voltage batteries at four
other sites worldwide.
At the same time, we are preparing the network to produce next-
generation electrified drivetrains. The sixth-generation electric
motors will come from the engine manufacturing plant in Steyr,
Austria, and will expand the local production of diesel and petrol
engines.
In line with the “local for local” principle, the BMW Group’s high-
voltage battery assembly facilities worldwide are set up in or
close to the Group’s vehicle plants. ↗ Expanding resilient supply chain.
Five assembly facilities are currently being developed for the next
generation of the high-voltage battery on three continents.
These are located in Irlbach-Straßkirchen (Germany), Debrecen
(Hungary), Woodruff near Spartanburg (USA), San Luis Potosí
(Mexico) and Shenyang (China).
The new Cell Manufacturing Competence Centre (CMCC) in Pars-
dorf near Munich plays a key role for the BMW Group. In a pilot,
it enabled the BMW Group to accurately replicate the value-
added processes involved in manufacturing battery cells. The
BMW Group will take the findings of this pilot scheme and apply
them in close collaboration with its mass production partners for
battery cells at a later stage. The strategy enables the
BMW Group to set new standards regarding the quality, perfor-
mance, cost and ecological sustainability of battery cells. «
Electromobility in the production network
» Electromobility has been growing in importance for the
BMW Group for many years. Production of the BMW i5 Touring2
(Dingolfing) and the electric MINI Countryman2 (Leipzig) started
in German plants in the reporting period. Internationally, produc-
tion started on two electric vehicles, the MINI Aceman2 and the
MINI Cooper in Zhangjiagang at the Spotlight plant, a plant man-
aged jointly with Great Wall Motors in China. The Group therefore
produces
automobiles
and
motorcycles
with
electrified
drivetrains worldwide at 17 ↗ Locations and at two partner plants.
In 2024, all-electric automobiles were produced in Dingolfing,
Munich, Regensburg, Leipzig, Goodwood (UK), Oxford (UK),
Chennai (India), Shenyang (China) and Zhangjiagang (China).
Moreover, all-electric motorcycles are manufactured both in Ber-
lin and at our partner plant in Hosur (India).
From 2025, the next vehicle generation will feature a vehicle ar-
chitecture geared to suit all-electric drivetrains. The vehicle is due
to be manufactured initially at the new Debrecen plant in Hun-
gary and then in Munich starting in 2026. We aim to gradually
transfer the new vehicle architecture to the global production net-
work over the next few years. The BMW Group plans to produce
all-electric vehicles at its plant in Spartanburg (USA), And at least
six all-electric X models are scheduled to be manufactured there
by 2030. «
1 This chapter contains disclosures in line with ESRS 2 SBM-1.42a)-c).
2 ↗ Consumption and Carbon Disclosures.
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BMW Group vehicle plants
Location
Country
Production programme 2024
Drivetrain portfolio
Araquari
Brazil
BMW 3 Series, BMW X12, BMW X32, BMW X4, BMW X5
ICE, PHEV
Berlin
Germany
BMW motorcycles
ICE, BEV
Chennai
India
BMW 2 Series, BMW 3 Series, BMW 5 Series, BMW 6
Series, BMW 7 Series, BMW X12, BMW iX12, BMW X32,
BMW X5, BMW X7
ICE, BEV
Debrecen1
Hungary
BMW pre-series
BEV
Dingolfing
Germany
BMW 4 Series, BMW 5 Series, BMW i52, BMW 6 Series,
BMW 7 Series, BMW i72, BMW 8 Series, BMW M, BMW
iX2
ICE, BEV, PHEV
Goodwood (Rolls-Royce Manufacturing)
UK
Rolls-Royce Cullinan, Ghost, Phantom, Spectre
ICE, BEV
Leipzig
Germany
BMW 1 Series, BMW 2 Series, MINI Countryman2
ICE, BEV, PHEV
Manaus
Brazil
BMW motorcycles
ICE
Munich
Germany
BMW 3 Series, BMW 4 Series, BMW i42, BMW M
ICE, BEV, PHEV
Oxford
UK
MINI, MINI Clubman, MINI Cooper SE2, MINI Cooper2,
MINI Cooper Convertible2
ICE, BEV
Rayong
Thailand
BMW 2 Series, BMW 3 Series, BMW 5 Series, BMW 7
Series, BMW X12, BMW X32, BMW X5, BMW X6, BMW
X7, MINI Countryman2
BMW motorcycles
ICE, PHEV
Regensburg
Germany
BMW X12, BMW iX12, BMW X22, BMW iX22
ICE, BEV, PHEV
Rosslyn
South Africa
BMW X32
ICE, PHEV
San Luis Potosí
Mexico
BMW 2 Series, BMW 3 Series, BMW M
ICE, PHEV
Shenyang (Dadong)
China
BMW 5 Series, BMW X32, BMW iX32, BMW X5
ICE, BEV
Shenyang (Tiexi)
China
BMW 2 Series, BMW 3 Series, BMW i3, BMW X12, BMW
iX12
ICE, BEV
Spartanburg
USA
BMW X32, BMW X4, BMW X5, BMW X6, BMW X7, BMW
XM2, BMW M
ICE, PHEV
Jointly controlled vehicle plants
Location
Country
Production programme 2024
Drivetrain portfolio
Zhangjiagang (Spotlight)
China
MINI Cooper2, MINI Aceman2
BEV
Production sites in the Group’s markets
» The BMW Group plants in Europe, South Africa, the USA and
Mexico manufacture for the global market. Production started on
the all-electric MINI Cooper2 in March 2024 and the all-electric
MINI Aceman2 in August 2024 at the jointly managed Spotlight
plant in China. Both models are also produced there for the
global market. The BMW Brilliance plants in China mainly man-
ufacture for the local market. The BMW Group plants in Araquari
(Brazil), Rayong (Thailand) and Chennai (India) primarily serve
their respective regional markets and produce BMW and MINI
brand models. The same applies to the BMW Group’s automo-
tive partner plants in Jakarta (Indonesia), Cairo (Egypt), Kulim
(Malaysia) and Chu Lai (Vietnam). The BMW Group also awards
contracts for the series production of automobiles and motorcy-
cles to external partners (contract manufacturers). During the
year under report, Magna Steyr Fahrzeugtechnik produced the
BMW Z42 in Graz (Austria). The production of the MINI Cooper
Cabrio2 and the MINI Countryman2 at VDL Nedcar3 in Born (the
Netherlands) was discontinued in February 2024.
The BMW Group manufactures BMW motorcycles, scooters and
components at its Berlin plant as well as at two international lo-
cations in Manaus (Brazil) and Rayong (Thailand). BMW motor-
cycles and scooters are also produced by the partner companies
TVS Motor Company in Hosur (India) and Loncin Motor Co., Ltd
in Chongqing (China).
The BMW Group’s production network also includes engine
plants in Hams Hall (UK), Steyr (Austria) and Shenyang (China),
as well as component plants at sites in Eisenach, Landshut and
Wackersdorf (all in Germany) and Swindon (UK). The production
network currently comprises a total of 33 plants in 16 coun-
tries. «
1 Pre-series production only in 2024, opening in 2025.
2 ↗ Consumption and Carbon Disclosures.
3 Contract manufacturing.
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Production of electrified vehicles at record levels
» The BMW Group manufactured a total of 2,513,830 BMW,
MINI and Rolls-Royce brand vehicles in the reporting year (2023:
2,661,922 units; -5.6%). BMW brand models accounted for
2,229,009 units (2023: 2,340,547 units; -4.8%), MINI for
278,897 units (2023: 315,196 units; -11.5%), and Rolls-Royce
Motor Cars for 5,924 units (2023: 6,179 units; -4.1%). Produc-
tion of electrified vehicles increased to a new high level in 2024
of 650,324 units (2023: 613,640 units; +6.0%), of which
481,794 were all-electric (2023: 415,692 units; +15.9%). The
number of motorcycles produced by BMW Motorrad decreased
by 2.8% to 215,727 units (2023: 221,988 units) over the 12-
month period. «
BMW Group automobile production by plant
in units
2024
2023
Change
in %
Spartanburg (USA)
396,117
410,793
– 3.6
Dadong (China)
343,973
420,586
– 18.2
Regensburg (Germany)
342,521
238,301
43.7
Dingolfing (Germany)
297,761
291,907
2.0
Tiexi (China)
284,045
307,972
– 7.8
Leipzig (Germany)
246,195
188,199
30.8
Munich (Germany)
200,590
217,480
– 7.8
Oxford (UK)
110,939
185,400
– 40.2
San Luis Potosí (Mexico)
95,236
117,576
– 19.0
Rosslyn (South Africa)
55,516
68,238
– 18.6
Chennai (India)
14,568
15,264
– 4.6
Araquari (Brazil)
11,472
10,608
8.1
Rayong (Thailand)
8,666
13,044
– 33.6
Goodwood (UK)
5,924
6,179
– 4.1
Debrecen (Hungary)*
92
–
–
Zhangjiagang - Spotlight (China)
67,561
2,871
2,253.2
Born - VDL Nedcar (The Netherlands)
7,515
120,235
– 93.7
Graz - Magna Steyr (Austria)
10,463
26,461
– 60.5
Partner plants
14,676
20,808
– 29.5
Total
2,513,830
2,661,922
– 5.6
* Pre-series production only in 2024, opening in 2025.
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PURCHASING AND SUPPLIER NETWORK 1
Supply chains and supplier network
» The BMW Group’s Purchasing and Supplier Network is respon-
sible for the global procurement and quality assurance of produc-
tion materials, raw materials, components, capital goods and
services. as well as the in-house production of vehicle compo-
nents.
The division’s strategic areas of focus are as follows:
—
Ensuring security of supply to the production plants
—
Expanding resilient supply chains within a challenging
geopolitical environment
—
Procuring high-quality components at competitive prices
—
Identifying and implementing innovative products and
solutions at an early stage
—
Further digitalising all processes within the supplier network
—
Integrating social and ecological standards within the
supplier network
—
Integrating in-house component production profitably and
sustainably and empowering the supplier network
—
Continuing to improve and adapting flexibly to a constantly
changing environment and changing conditions «
Expanding resilient supply chains2
» Global supply chains are exposed to various challenges. In ad-
dition to competition and procurement challenges such as secur-
ing raw materials, also regulatory influences such as trade re-
strictions, security, digitalisation and sustainability requirements
as well as environmental and extreme weather events increas-
ingly affect supply chains.
The BMW Group RiskHub3 plays a key role in making our global
supply chains more resilient to external factors. For example, ar-
tificial intelligence (AI) can be used to recognise risks early on and
take countermeasures. Moreover, the BMW Group sees the de-
velopment of the Catena-X digital ecosystem as the key to stand-
ardised data exchange across the relevant parts of the value
chain and is in the process of gradually integrating its partners in
the supply chain.
The BMW Group follows the approach of procuring vehicle com-
ponents close to its production sites, where reasonable. To this
end, there are local purchasing units in all key markets so that
the Group can respond to regional risks and opportunities imme-
diately. Geostrategic aspects are taken into account in forecasts,
and award decisions are consistently aligned with them. «
Security of supply
» Maintaining supplies and deliveries to BMW Group plants is a
key target of the purchasing strategy. The BMW Group antici-
pates potential risks in supply security in advance and protects
itself against these.
Supply chains have stabilised in the last three years. The
measures taken by the Group have had their desired effect. For
example, the semiconductor situation improved thanks to sound
mitigation strategies that allowed the BMW Group to react
quickly and flexibly to changes, in addition to a general easing of
the situation on the global market.
As in the previous year, there were shortages in 2024 owing to
delivery failures caused by a rise in extreme weather events such
as floods and storms. The BMW Group was able to manage the
effects of this with targeted inventory coverage plans, spare parts
supply, alternative supply channels as well as early crisis man-
agement and the RiskHub’s warning systems. «
Regional distribution of BMW Group purchasing volume4
in %
Quality assurance
» As a leading manufacturer of premium automobiles, our aim is
to provide vehicles of the highest quality to customers. The
BMW Group has comprehensive measures in place for quality
control and assurance that are constantly being improved. A
broad quality programme has been set up with defined work
packages in order to respond to the growing challenges arising
in the supply chain, with a focus on quality improvement, net-
working and communication, stabilising the supply chain and
making the best use of digitalisation. We systematically monitor
the quality of the products provided by our suppliers in order to
improve processes.
In 2024 we also carried out an extensive requalification cam-
paign to improve quality in the BMW Group, with audits under-
taken at more than 500 of our suppliers’ and sub-suppliers’ pro-
duction sites. «
1 This chapter contains disclosures in line with ESRS 2 SBM-1.42a)-c).
2 This section contains disclosures in line with ESRS 2 SBM-3.48f).
3 BMW Group IT system.
4 Direct and indirect purchasing.
Germany
33.1
Eastern Europe
19.6
North America
15.3
China
17.3
Other Western
Europe
10.7
Other
4.0
Total
€ 91.8 bn.
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Overview of the BMW Group
» The training for suppliers was also amended to include specific
competencies, such as problem solving and risk assessment. «
Risk management in purchasing
» Forward-looking risk management is essential for a stable co-
operation with our supplier network. The BMW Group takes a
preventive approach to new project nominations. Moreover, we
identify and assess the threat of supply bottlenecks responsively
in order to minimise risks. To this end, the BMW Group’s RiskHub
analyses information from external, publicly available data
sources with regard to potential risks such as natural disasters or
financial risks. The BMW Group also uses efficient methods de-
rived from the fields of AI and big data analytics. Risk assessment
extends to the locations of sub-suppliers in the supply chain,
where required.
In order to avoid cyber risks and deal effectively with an increas-
ing number of supplier-related incidents, the BMW Group contin-
ues to rely on supplier certification in accordance with the TISAX
automotive standard. When it comes to purchasing materials
both directly and indirectly, TISAX is an integral part of the pro-
curement process and an inherent component of contracts with
suppliers that meet the specific relevance criteria. The initiative
to jointly analyse IT security and existing emergency processes
in production also enables us to make the supplier network more
resilient.
Training courses and informational events are being organised
both internally and externally for suppliers to raise awareness of
the rapidly growing level of cyber risk. «
Raw materials security and strategy1
» The BMW Group pursues an integrated raw materials strategy
to reduce price and supply risks, as well as risks arising from ge-
opolitical influences and regulations in the supply chain through
to the end product.
The long-term supply of critical raw materials remains a strategic
challenge in view of trade and geopolitical developments. The
BMW Group relies on its close cooperation with partners in the
supply chain and can also secure raw materials such as lithium
and cobalt itself directly, where required, in order to increase its
security of supply, boost resilience in the supply chain and en-
courage the purchasing of raw materials from responsible
sources.
Furthermore, the BMW Group analyses the development of raw
materials prices and hedges against price fluctuations – provided
the capital market offers the opportunity to do so – or concludes
fixed-price agreements.
To guarantee ↗ Social and Environmental Responsibility in the Supplier
Network, the processes required to satisfy due diligence obliga-
tions have been further developed and the requisite measures
have been implemented. The further development of risk anal-
yses, for example in the context of biodiversity, and new regula-
tory requirements were all taken into account in this process.
The BMW Group Supplier Code of Conduct contains provisions
on the handling of critical raw materials. The BMW Group is also
involved in the development and implementation of environmen-
tal and social standards in the supply chain, including those at
the Initiative for Responsible Mining (IRMA) and the Responsible
Minerals Initiative (RMI), and the implementation of the same by
suppliers.
Moreover, the BMW Group has set itself the goal of generating a
positive impact for selected raw materials through our involve-
ment in local development projects. This currently applies to the
raw materials mica, cobalt and natural rubber.
In light of the key role secondary raw materials play in reducing
carbon equivalent emissions and the positive contribution to the
preservation of diversity, the BMW Group focuses on the requi-
site technologies, market processes and extended applications
of secondary raw materials. The BMW Group continues to press
ahead with the further expansion of the ↗ Circular Economy and
Resource Use. «
Purchasing battery cells2
» The BMW Group plans to deploy a new generation of battery
cells in the NEUE KLASSE. To this end, production capacities in
Europe, China and the USA have been contractually agreed with
strategic partners ahead of production. The BMW Group pursues
a “local for local” approach as set out in its purchasing strategy
and is establishing supply chains for battery cells close to its pro-
duction sites.
To strengthen this resilience even further, the Group considers
the upstream value chain for critical components by assessing
geopolitical risks and economic efficiency in the relevant regions,
with a view to reducing geopolitical dependencies and the asso-
ciated risks.
The use of secondary materials and the use of electricity from
renewable sources3 in particular in battery cell production signif-
icantly reduce the Group’s carbon equivalent footprint. The
measures taken in this regard were either agreed upon sepa-
rately in sustainability agreements or taken into account in the
award of projects. «
In-house production as a strategic competitive advantage
» The BMW Group regularly reviews the profitability and strategic
importance of its product range. The focus here is on electromo-
bility, digitalisation and sustainability, taking into account struc-
tural conditions and additional opportunities in the supplier net-
work. In these key areas of transformation, the BMW Group is
expanding its in-house expertise on a targeted and long-term
basis on matters relating to strategically important components.
The Group would like to use in-house production to increase its
security of supply and innovative strength, such as with the con-
trol unit of the high-voltage storage system or components in the
electric powertrain. At the same time, process expertise is to be
expanded in relevant technologies to secure the quality and pro-
ficiency of the supplier network. «
1 This section contains disclosures in line with ESRS 2 SBM-3.48f).
2 This section contains disclosures in line with ESRS S2-1.16-17.
3 See ↗ Glossary for a definition of electricity from renewable sources.
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Digitalisation in the supply chain*
» For the BMW Group, digitalisation throughout the supply chain
is an essential prerequisite for establishing sustainable, resilient
and flexible supply chain management.
The targeted use of digitalisation solutions applicable across the
supply chain helps to continually improve component quality and
enhance the robustness of the value chain. The Group relies on
new technologies and in particular artificial intelligence to allow
it, for example, to carry out camera-based quality checks effi-
ciently when managing the shop floor and to safeguard key value
creation processes in its in-house component production. The
BMW Group applies these approaches to its supplier network so
that the Group and its partners alike can benefit from the techno-
logical advances found in digitalisation.
A further example is the use of generative AI, which is used ef-
fectively in the BMW Group in interdivisional processes from de-
velopment to purchasing and production. Digital assistants use
this technological basis to support employees in their daily work
– primarily ancillary activities such as document and data analy-
sis and information procurement – and thereby allow employees
to devote their focus to value-adding activities in personal, direct
collaboration with our suppliers.
Catena-X is the pioneering initiative within the automotive indus-
try for digitalising the supply and value chains between automo-
bile manufacturers, suppliers, sub-suppliers and, in the future,
recycling companies. The digital platform enables partners
within value chains to tackle key issues facing the industry, such
as enhancing resilience, meeting sustainability goals and regu-
latory matters through digital collaboration. After two years of de-
velopment work, including a significant contribution from the
BMW Group as consortium leader, the first use cases have been
live since December 2023 and Catena-X is focused on connect-
ing other partner companies along the entire value chain.
It is important for the BMW Group to be able to trace components
along international, multi-level supply chains. Another key ad-
vancement is the provision of digital product passports, which
will be required for many products in future. They contain prod-
uct-specific data for components such as batteries, steel, alumin-
ium and wheels. Catena-X makes data from sub-supplier chains
available, especially regarding origin, material composition and
recycling. The BMW Group and other international partners in the
automobile supply chain have founded the software brand
Path.Era for this purpose. Path.Era is an IT service for partners
in the automobile industry that aims to create the first industry-
recognised ecosystem for digital product passports and to sup-
port partners in the creation of product passports by offering dig-
ital solutions and services. «
Contribution to profitability
» Within the scope of its responsibility for material costs, the Pur-
chasing Division makes a significant contribution to the
BMW Group’s earnings and therefore also its profitability. Reduc-
ing material costs is an important part of the Purchasing Divi-
sion’s regular activities and can be achieved by way of efficiency
gains in ongoing series production, synergy effects from award-
ing new contracts for future projects and negotiations on addi-
tional costs caused by inflation.
The Purchasing Division made a significant contribution to the
BMW Group’s profitability in 2024. This contribution stems from
an additional programme to reduce material costs, undertaken
jointly by Purchasing and Development, in addition to regular
purchasing activities. Technical and commercial measures have
been developed and implemented together with suppliers with a
broad focus on the sustainable optimisation of the cost positions
in vehicle projects. The effect on earnings will extend beyond
2024. «
Further development in Purchasing
» The Purchasing Division also assumes a key role in the inter-
disciplinary matrix of technology clusters and BMW vehicle pro-
duction lines, working with other areas to optimise material costs.
To this end, several initiatives led by the Purchasing Division are
currently driving forward the consistent focus on optimal cost po-
sitions for vehicle projects before and after the start of series pro-
duction, the effective management of supplier performance, in
particular with regard to quality optimisation, and new, collabo-
rative working models with various interface partners. Success
factors from previous programmes have been consolidated in
line functions and processes. «
Innovations
» Working closely with technology partners and establishing new
business relationships has allowed the BMW Group to integrate
innovations in its vehicles quickly. In this context, the Group
works closely with internal creative units created especially for
this purpose such as BMW Startup Garage and BMW i Ventures.
In-house component production also focuses on innovations that
it can drive forward in pilot projects and roll out across the net-
work. The different departments also cooperate in technology
clusters to sharpen the focus on identifying innovative technolo-
gies. This takes the form of strategic dialogue formats with sup-
pliers (Future Vision Deep Dive), among other things. Findings
from the supplier network are systematically incorporated and
processed within the technology clusters. The BMW Group ben-
efits from new technologies in the process that are developed
through its partnerships and networks. These partners also show
a great willingness to establish new fields of development to-
gether, according to a recent survey. The BMW Group also relies
on exchanges with its strategic suppliers across various for-
mats. «
* This section contains disclosures in line with ESRS 2 SBM-3.48f).
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Financial Performance
F I N A N C I A L P E R F O R M A N C E
66
Overall Assessment by Management of the
Financial Year
67
General and Sector-specific Environment
69
Comparison of Forecasts with Actual
Outcomes
70
Financial Position
79
Course of Business and Segments
87
Comments on the Financial Statements of
BMW AG
BMW Group stays on course and maintains its leading
position in the global premium segment
The BMW Group maintained its strong market position in the
global premium segment in 2024 with sales up in both Europe
and the USA. The BMW brand gained further market share in
Europe, grew sales in the USA and maintained its leading posi-
tion in China. Globally, the BMW brand was the leader in the pre-
mium segment. While model changeovers at MINI and Rolls-
Royce led to an expected downturn in delivery figures, the
BMW Group’s all-electric automobiles (BEV) continued to per-
form well and accounted for 17.4% (2023: 14.7%) of total de-
liveries. The BMW Group is therefore pressing ahead with the
ramp-up of electric mobility as planned. BMW Motorrad achieved
a new record for deliveries in 2024. The Financial Services seg-
ment saw a solid increase in the number of new contracts signed
during the reporting period.
The BMW Group adjusted its full-year forecast in September
2024. The adjustment was due to delivery stops and recalls
linked to the Integrated Brake System (IBS) that is provided by a
supplier, as well as ongoing muted demand in China. The sub-
sequent significant decline in vehicle sales in the third quarter
also had a considerable impact on earnings. The measures re-
quired for the IBS were initiated in the third quarter and largely
completed by the end of the year. The Chinese automotive mar-
ket remains weak despite the government’s support measures,
with consumers still very hesitant to spend.
The BMW Group achieved its revised targets for 2024. At 6.3%,
the EBIT margin of the Automotive segment was within the ad-
justed target range of 6 to 7%. As in previous years, the carbon
emissions generated by the EU new vehicle fleet continued to
decrease and, at 99.5 g/km, remained well below the limits set
for 2024. Maintaining a consistent focus on technology open-
ness allows the BMW Group to develop innovative drive technol-
ogies and to respond in a flexible manner to market develop-
ments. The BMW Group believes it is well positioned on the basis
of its robust strategy, balanced product range and continuous in-
vestment in research and development.
FINANCIAL PERFORMANCE
OVERALL ASSESSMENT BY MANAGEMENT OF THE
FINANCIAL YEAR
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GENERAL AND SECTOR-SPECIFIC ENVIRONMENT *
The global economy showed stable growth in 2024 and ex-
panded by 3.2% overall. Significant impetus came from the USA,
China and India. In Europe, the economy grew slightly compared
to the previous year but remained below expectations.
The eurozone’s gross domestic product (GDP) rose by 0.7% in
2024. The reasons for this subdued growth included higher in-
terest rates and the restrained decline in consumer spending. In
Germany, the situation was exacerbated by a 0.2% decline in
export demand. Economic performance in France (+1.1%), Italy
(+0.5%) and Spain (+3.2%) was more robust in 2024. The UK
economy also grew by 0.9% compared to the previous year.
The US economy proved very resilient despite high interest rates
and grew by 2.8% in the reporting period. Low unemployment
and rising wages gave private consumption a boost. China’s
economy expanded by 5.0% in 2024, exactly in line with the
country’s economic targets. Nevertheless, China’s economy con-
tinues to be impacted by weak domestic demand and an ongoing
crisis in the real estate sector.
In Japan, GDP just grew by 0.1% compared to the previous year.
Here, too, economic growth was slowed by persistently weak
consumer demand and relatively high inflation.
Declining inflation and interest rate cuts in many markets
Amid falling inflation rates, many central banks began gradually
lowering their benchmark interest rates from mid-2024 on-
wards.
The euro fluctuated between 1.04 and 1.12 US dollars to the
euro, with an average annual exchange rate of 1.08 US dollars
to the euro. The British pound strengthened slightly in 2024
compared to the previous year, trading between 0.82 and 0.86
pounds to the euro, with an average rate of 0.85 pounds to the
euro.
China’s central bank lowered some key benchmark interest rates
during the reporting year with the aim of strengthening the weak-
ening economy and supporting the crisis-hit real estate market.
The Chinese renminbi fluctuated between 7.62 and 7.88
renminbi to the euro in 2024 and averaged 7.79 renminbi to the
euro over the year.
The Japanese yen fluctuated between 159 and 172 yen to the
euro in 2024. With an average exchange rate of 164 yen, the
Japanese currency continued to fall in value against the euro
compared to the previous year. The South Korean won weak-
ened slightly year on year and traded between 1,437 and 1,508
won to the euro, with an average rate of 1,475 won to the euro.
The currencies of the major emerging markets changed little in
some cases against the euro. While the Indian rupee depreciated
by approximately 1% against the euro on average, the South Af-
rican rand strengthened by 0.6%. By contrast, the Brazilian real
recorded a significant decline against the euro and traded 8%
lower on average.
Energy and raw materials prices continue to fall
The price of energy and raw materials continued to fall in 2024
in many areas, particularly for steel and the raw materials used
to produce batteries. Prices for cobalt and lithium were even be-
low the long-term average. By contrast, copper and aluminium
prices rose slightly during the reporting period.
Despite the crisis in the Middle East, average crude oil prices con-
tinued to fall in 2024. US WTI crude fluctuated between 69 and
85 USD per barrel, while Brent crude traded between 73 and 91
USD per barrel.
* Growth rates: Source: Focus Economics.
Exchange rates: Source: ECB.
Energy and raw material prices: Sources: CRU, LME, Fastmarkets.
Oil price: Source: Weltbank.
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Financial Performance
International automobile markets up slightly
International automobile markets performed well in 2024 and
grew by 3.3% overall. Worldwide, the number of new registra-
tions went up to 79.7 million vehicles. However, market dynam-
ics varied across regions. In China, growth in the automobile sec-
tor was primarily driven by local providers in the entry-level seg-
ment.
Key automobile markets developed as follows during the report-
ing period:
International automobile markets
Change compared to
previous year in %
Europe
+ 1.1
thereof Germany
– 1.0
thereof France
– 3.2
thereof Italy
– 0.8
thereof Spain
+ 8.5
thereof UK
+ 2.6
USA
+ 2.5
China
+ 4.6
Japan
– 6.9
South Korea
– 4.2
Total
+ 3.3
International motorcycle markets (500 cc plus) record
growth
In 2024, international motorcycle markets in the 500 cc plus
class developed positively year on year (+8.3%). European mar-
kets recorded a significant overall growth of 11.7%. Among the
major motorcycle markets, Germany (+18.4%) and Spain
(+18.1%) made strong contributions to this performance. Italy
also recorded a significant increase of 12.7% year on year. The
US market grew by 0.8% compared to the previous year. The
Chinese motorcycle market saw a significant contraction
(–10.6%). In Brazil, motorcycle registrations were up sharply,
with year-on-year increase of 12.7%. Registration figures for in-
ternational motorcycle markets developed as follows in the re-
porting year 2024:
International motorcycle markets
Change compared to
previous year in %
Europe
+ 11.7
thereof Germany
+ 18.4
thereof France
+ 1.7
thereof Italy
+ 12.7
thereof Spain
+ 18.1
Americas
+ 5.8
thereof USA
+ 0.8
thereof Brazil
+ 12.7
Asia
+ 1.4
thereof China
– 10.6
Total
+ 8.3
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COMPARISON OF FORECASTS WITH ACTUAL OUTCOMES
After a strong first half of 2024 in line with expectations, the
BMW Group adjusted its forecast for the full year in September.
The adjustment was due to delivery stops linked to the Inte-
grated Brake System (IBS) that is provided by a supplier, as well
as still muted demand in China. By the end of the year, the
BMW Group’s actual business performance was in line with the
adjusted outlook. Overall, volumes were slightly below the previ-
ous year’s level. Selling prices were also down slightly. Personnel
and supply chain costs continued to rise in 2024 due to the high
level of inflation in recent years.
The carbon emissions of the new EU vehicle fleet were signifi-
cantly below the mandatory thresholds applicable for the report-
ing year. Due to the decline in production volumes, the reduction
in carbon emissions per vehicle produced (Scope 1 and 2 emis-
sions of the BMW Group sites) was less than initially planned at
the beginning of the year.
The following table summarises the development of the
BMW Group’s key performance indicators in the financial year
2024 compared to the forecasts made in the BMW Group Report
2023.
Detailed information on the BMW Group’s key performance indi-
cators is provided below in conjunction with the analysis of the
Group’s results of operations, financial position and net assets.
The development of the most significant performance indicators
is described in the relevant chapters on the Automotive, Motor-
cycles and Financial Services segments. An explanation of the
development of other non-financial performance indicators is in-
cluded in the ↗ Sustainability Statement.
BMW Group: Comparison of the forecast for 2024 with actual outcomes in 2024
Forecast for 2024
in 2023 Group Report
Forecast revision
during the year
Actual
outcome in 2024
G R O U P
Profit before tax
Slight decrease
Q3: Significant decrease
€ million
10,971 (–35.8%)
Significant decrease
Workforce at year-end1
Slight increase
159,104 (+2.7%)
Slight increase
Share of women in management positions1
Slight increase
%
21.7 (+4.3%)
Slight increase
A U T O M O T I V E S E G M E N T
EBIT margin
Between 8 and 10
Q3: Between 6 and 7
%
6.3 (–3.5% points)
Return on capital employed (RoCE)
Between 15 and 20
Q3: Between 11 and 13
%
11.4 (–8.8% points)
Deliveries
Slight increase
Q3: Slight decrease
units
2,450,854 (–4.0%)
Slight decrease
Share of all-electric cars in deliveries
Significant increase
%
17.4% (+18.4%)
Significant increase
CO₂ emissions EU new vehicle fleet1, 2
Slight reduction
g/km
99.5 (–2.5%)
Slight reduction
CO₂e emissions per vehicle produced (scope 1
and 2 of BMW Group locations)1, 3
Moderate reduction
Q3: Slight reduction
tonnes
0.27 (–3.6%)
Slight reduction
M O T O R C Y C L E S S E G M E N T
EBIT margin
Between 8 and 10
Q3: Between 6 and 7
%
6.1 (–2.0% points)
Return on capital employed (RoCE)
Between 21 and 26
Q3: Between 14 and 16
%
15.5 (–6.6% points)
Deliveries
Slight increase
Q3: In line with last year's
level
units
210,385 (+0.6%)
In line with last year's level
F I N A N C I A L S E R V I C E S S E G M E N T
Return on equity (RoE)
Between 14 and 17
Q2: Between 15 and 18
%
15.1 (–2.1% points)
1 Definition of performance indicators in line with the outlook for 2024. From the financial year 2025 onwards, changes will result from the switch to ESRS reporting and new strategic targets relating to
CO2e emissions, see ↗ Performance Indicators and Performance Management.
2 EU-27 countries including Norway and Iceland; with effect from 2021, figures are calculated in line with WLTP (Worldwide Harmonised Light Vehicles Test Procedure). This is a preliminary internal
calculation with a potential variation of +/– 0.5 g CO2/km, as official registration figures from the authorities are not available for all EU states. Figures officially published by the European Commission are
not expected to be available until November of the following year. Including an allowance for eco-innovations (amounts of minor significance).
3 See ↗ Glossary and Explanation of Key Figures for the definition.
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FINANCIAL POSITION
EARNINGS PERFORMANCE OF THE BMW GROUP
BMW Group Condensed Income Statement
in € million
2024
2023
Change in %
Revenues
142,380
155,498
– 8.4
Cost of sales
– 119,485
– 125,809
5.0
Gross profit
22,895
29,689
– 22.9
Selling and administrative expenses
– 11,296
– 11,025
– 2.5
Other operating income and expenses
– 90
– 182
50.5
Profit before financial result
11,509
18,482
– 37.7
Financial result
– 538
– 1,386
61.2
Profit before tax
10,971
17,096
– 35.8
Income taxes
– 3,293
– 4,931
33.2
Net profit
7,678
12,165
– 36.9
Earnings per share of common stock in €
11.62
17.67
– 34.2
Earnings per share of preferred stock in €
11.64
17.69
– 34.2
in %
2024
2023
Change
in % points
Gross profit margin1
16.1
19.1
– 3.0
Pre-tax return on sales2
7.7
11.0
– 3.3
Post-tax return on sales3
5.4
7.8
– 2.4
Effective tax rate4
30.0
28.8
1.2
1 Gross profit as a percentage of Group revenues.
2 Group profit before tax as a percentage of Group revenues.
3 Group net profit as a percentage of Group revenues.
4 Income taxes as a percentage of Group profit before tax.
Group revenues by region were as follows:
BMW Group revenues by region
in %
2024
2023
Europe
42.7
37.7
Asia
32.7
36.4
Americas
22.4
23.9
Other regions
2.2
2.0
Group
100.0
100.0
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Financial Performance
Moderate decline in Group revenues*
» Group revenues in the financial year 2024 were moderately
lower than in the previous year (2024: € 142,380 million; 2023:
€ 155,498 million; –8.4%, adjusted for currency effects:
–7.8%). The main reasons for this were lower sales volumes and
a decline in selling prices in the Automotive segment. The pricing
measures brought forward from the previous year partially com-
pensated for the impact of increased competition on vehicle
prices. The situation in China was particularly challenging during
the financial year 2024. Although the market grew as a whole,
the BMW Group’s sales volume decreased and fell short of ex-
pectations. One of the reasons for this was the continued slow-
down in consumer spending on vehicles in higher price seg-
ments, which did not improve noticeably despite government
support measures. Sales were also affected by vehicle delivery
stops for vehicles linked to the supplied IBS. In the Financial Ser-
vices segment, the upturn in revenues from credit financing for
dealerships and retail customers was largely driven by a rise in
contract values and expanded dealership inventories. The
amount of revenues eliminated on consolidation rose due to the
upturn in new leasing business. This development had a consid-
erable negative impact on Group revenues.
The cost of sales decreased in the reporting year due to lower
manufacturing costs as a result of the lower production volumes.
Warranty expenses went down in the reporting year. Both the
lower sales volumes and increased eliminations in connection
with the rise in new leasing business reduced additions to war-
ranty provisions compared to the previous year. The previous
year was affected by increased additions in connection with air-
bags with inflators from the supplier ARC and the remeasure-
ment of the provision for the exhaust gas recirculation cooler
(EGR). Although increased additions were required in 2024 for
recalls linked to the supplied IBS, additions to warranty provi-
sions were lower than in the previous year as expected. Further-
more, the provision relating to the supplier ARC was reversed,
which resulted in a higher level of reversals compared to the pre-
vious year. By contrast, increased expenses in connection with
the supplier network had a negative impact compared to the pre-
vious year. In the Financial Services segment, the cost of sales
increased due to portfolio growth and a rise in refinancing costs.
The Group’s research and development expenses increased
slightly by 1.4% year on year.
The BMW Group’s research and development expenditure to-
talled € 9,078 million, as expected well above the previous
year’s level (2023: € 7,755 million; +17.1%). The increase was
primarily related to the cross-series digitalisation and electrifica-
tion of the vehicle fleet. In addition, new models are being devel-
oped, such as the successors to the BMW X3 and X5 models as
well as further models in the NEUE KLASSE. As a consequence
of the related higher costs in combination with lower revenues,
the research and development expenditure ratio also increased.
The capitalisation rate rose by 5.2 percentage points to 38.8%
(2023: 33.6%) due to model-related factors.
Selling and administrative costs increased slightly by 2.5% year
on year, mainly due to increased administrative costs related to
IT projects and software licences as well as higher personnel
costs. The ratio of selling and administrative expenses to reve-
nues rose to 7.9% (2023: 7.1%).
Depreciation and amortisation on property, plant and equipment
and intangible assets recorded in cost of sales as well as in sell-
ing and administrative expenses totalled € 8,650 million (2023:
€ 8,974 million).
The negative net amount of other operating income and ex-
penses improved year on year, mainly due to gains arising on
foreign currency transactions.
Profit before financial result fell to € 11,509 million (2023:
€ 18,482 million; –37.7%), mainly due to the various factors de-
scribed above.
The financial result improved significantly to a net negative
amount of € 538 million (2023: net negative amount of
€ 1,386 million). The negative financial result was attributable to
fair value measurement losses on interest rate hedging transac-
tions, which, however, had less of a negative impact in the re-
porting period than in the previous year. «
* This section contains disclosures in line with ESRS 2 SBM-1.42b); ESRS 2 SBM-3.48d).
in € million
2024
2023
Change
in %
Manufacturing costs
75,680
82,549
– 8.3
Cost of sales relating to financial services business
30,277
27,764
9.1
thereof interest expense relating to financial services business
4,902
3,554
37.9
Research and development expenses
7,642
7,538
1.4
thereof amortisation of capitalised development costs
2,089
2,387
– 12.5
Expenses for service contracts, telematics and roadside assistance
2,885
2,780
3.8
Warranty expenditure
1,964
3,782
– 48.1
Other cost of sales
1,037
1,396
– 25.7
Cost of sales
119,485
125,809
– 5.0
BMW Group cost of sales
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Financial Performance
» Overall, Group profit before tax amounted to € 10,971 million
and – in line with the most recent forecast – was significantly
down year on year (2023: € 17,096 million).
At € 3,293 million (2023: € 4,931 million; –33.2%), income tax
expense in the reporting year was significantly lower than in the
previous year due to the downturn in pre-tax profit. The effective
tax rate was 30.0% (2023: 28.8%). «
The size of the workforce on the reporting date was slightly
higher than one year earlier at 159,1043, which was in line with
expectations (2023: 154,950; +2.7%).
Share buyback programme continued as planned
At the Annual General Meeting of BMW AG held on
11 May 2022, the shareholders authorised the Board of Man-
agement to acquire treasury shares via the stock exchange, up
to a maximum of 10% of the share capital in place at the date of
the resolution or – if this value is lower – of the share capital in
place at the time that the authorisation is exercised, and to re-
deem those shares without any further action required by the An-
nual General Meeting. The buyback authorisation remains valid
until 10 May 2027.
Based on this authorisation, BMW AG decided on a first share
buyback programme in July 2022. The programme had a volume
of up to € 2.0 billion (total purchase price excluding incidental ac-
quisition costs), comprising up to € 1.85 billion for shares of
common stock and up to € 0.15 billion for shares of preferred
stock. The programme was launched on 1 July 2022 and ended
on 30 June 2023. BMW AG repurchased a total of 22,199,529
shares of common stock for € 1,850 million and 1,923,871 pre-
ferred shares for € 150 million. All shares from the first pro-
gramme were redeemed in the third quarter 2023.
On 3 May 2023, the Board of Management decided to initiate a
second share buyback programme, which commenced on 3 July
2023. The programme has a volume of up to € 2 billion (total
purchase price excluding incidental acquisition costs). The buy-
back programme pertains to common and preferred stock. The
volume of preferred stock is limited to a maximum of € 350 mil-
lion.
The first tranche of the second share buyback program was suc-
cessfully completed on 1 December 2023. As part of this first
tranche, a total of 4,218,363 shares of common stock and
942,892 shares of preferred stock were acquired between
3 July 2023 and 1 December 2023. A total purchase price (ex-
cluding incidental acquisition costs) of around € 500 million was
paid for the shares repurchased as part of this tranche.
The second tranche of the second share buyback program was
successfully completed on 3 June 2024. As part of this second
tranche, a total of 4,075,525 shares of common stock and
975,717 shares of preferred stock were acquired between
2 January 2024 and 3 June 2024. A total purchase price (ex-
cluding incidental acquisition costs) of around € 500 million was
paid for the shares repurchased as part of this tranche.
The third tranche of the second share buyback programme was
successfully completed on 25 October 2024. As part of this third
tranche, a total of 5,069,724 shares of common stock and
1,174,535 shares of preferred stock were acquired between 5
June 2024 and 25 October 2024. A total purchase price (exclud-
ing incidental acquisition costs) of around € 500 million was paid
for the shares repurchased as part of this tranche.
As at 31 December 2024, BMW AG held a total of 16,456,756
treasury shares, corresponding to a nominal amount of
€ 16,456,756. Based on the authorisation granted by the An-
nual General Meeting on 11 May 2022, BMW AG has acquired
shares equivalent to 6.35% of the share capital in place at
31 December 2024.
The fourth and final tranche of the second share buyback pro-
gramme will be carried out in the period from 2 January 2025 to
30 April 2025 at the latest.
1 Research and development expenditure as a percentage of Group revenues.
2 Capitalised development costs as a percentage of research and development expenditure.
3 Performance indicator according to previous definition for 2024.
in € million
2024
2023
Research and development expenditure
9,078
7,755
Capitalised development costs
– 3,525
– 2,604
Amortisation
2,089
2,387
Research and development expenses
7,642
7,538
in %
2024
2023
Change
in % points
Research and development expenditure ratio1
6.4
5.0
1.4
Capitalisation rate2
38.8
33.6
5.2
BMW Group performance indicators relating to research and development expenses
BMW Group research and development expenses
73
BMW Group Report 2024
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Other Information
Financial Performance
FINANCIAL POSITION OF THE
BMW GROUP
The consolidated cash flow statements for the Group and the
Automotive and Financial Services segments show the sources
and applications of cash flows for the 2024 and 2023 reporting
years, classified according to operating, investing and financing
activities. Cash and cash equivalents in the cash flow statements
correspond to the amounts disclosed in the balance sheet.
Cash flows from operating activities are determined indirectly,
starting with Group/segment profit before tax. By contrast, cash
flows from investing and financing activities are based on actual
payments and receipts.
Net cash inflow from operating activities totalled € 7,566 million
for the BMW Group and primarily consists of profit before tax plus
depreciation and amortisation of total tangible, intangible and in-
vestment assets. Income taxes paid and the rise in leased prod-
ucts and receivables from sales financing reduce the cash inflow.
The decrease in cash inflow from operating activities compared
to the previous year was largely due to the lower profit before tax
as well as a largely volume-related increase in leased products
and the change in provisions. The corresponding lower amount
of income taxes paid and the favourable development of working
capital only partially offset the overall decrease.
Net cash outflow from the BMW Group’s investing activities
amounted to € 11,369 million, a significant portion of which was
related to investments made by the Automotive segment.
The cash inflow from financing activities totalled € 5,766 million
and was largely related to changes in financial liabilities.
The year-on-year increase in cash inflow from financing activities
mainly reflected increased borrowing. Repayments of financial li-
abilities were in line with the previous year.
The payment of dividends to other shareholders (non-controlling
interests), the acquisition of treasury shares and the payment of
dividends to BMW AG shareholders (2024: € 3,781 million,
2023: € 5,430 million) reduced the cash inflow from financing
activities.
Free cash flow for the Automotive segment was as follows:
in € million
2024
2023
Change
Cash inflow (+)/outflow (–) from operating activities
7,566
17,542
– 9,976
Cash inflow (+)/outflow (–) from investing activities
– 11,369
– 9,548
– 1,821
Cash inflow (+)/outflow (–) from financing activities
5,766
– 6,859
12,625
Effects of exchange rate and changes in composition of segment
– 3
– 678
675
Change in cash and cash equivalents
1,960
457
1,503
in € million
2024
2023
Change
Cash inflow (+)/outflow (–) from operating activities
16,791
17,675
– 884
Cash inflow (+)/outflow (–) from investing activities
– 11,100
– 9,373
– 1,727
Adjustment for net investment in marketable securities and investment funds
– 839
– 1,360
521
Free cash flow Automotive segment
4,852
6,942
– 2,090
BMW Group cash flows
Free cash flow Automotive segment
74
BMW Group Report 2024
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Financial Performance
The Automotive segment generated a net cash inflow from op-
erating activities amounting to € 16,791 million, which consisted
of primarily profit before tax plus depreciation and amortisation
of tangible, intangible and investment assets and interest re-
ceived. Income taxes paid reduced the cash inflow.
The decrease in cash inflow from operating activities compared
to the previous year was largely due to the lower profit before tax
and the change in provisions. The decrease in income taxes paid
as well as positive changes in working capital had an offsetting
effect. Inventories were in line with the previous year, while the
reduction in trade payables was largely offset by the reduction in
trade receivables. In the previous year, by contrast, an increase
in inventories and a simultaneous reduction in liabilities led to a
negative change in working capital.
Net cash outflow from investing activities amounted to € 11,100
million, a significant portion of which was related to investments
in property, plant and equipment and intangible assets, particu-
larly in connection with the Group’s continued expansion of elec-
tric mobility and NEUE KLASSE models. The sale of marketable
securities reduced cash outflows from investing activities.
The Automotive segment generated a free cash flow totalling
€ 4,852 million (2023: € 6,942 million) at 31 December 2024.
Automotive-related net financial assets comprised the following:
Cash and cash equivalents held by the Financial Services seg-
ment changed as follows:
In the Financial Services segment, the net cash outflow from op-
erating activities amounted to € 8,387 million, and primarily re-
sulted from the increase in leased products and receivables from
sales financing. Profit before tax reduced net cash outflow.
The stronger volume-related increase in leased products com-
pared to the previous year had a particularly noteworthy impact
on the cash outflow from operating activities.
The cash inflow from financing activities totalled € 8,538 million.
Compared to the previous year, intragroup refinancing increased
particularly in connection with the financing of the higher level of
leased products and receivables from sales financing. Proceeds
from the issue of external financial liabilities and repayments of
external financial liabilities were in line with the previous year.
1 The 2024 Half-Year Report was the first report in which disclosures of the net financial assets of
the Automotive segment were expanded in scope. For comparison purposes, the figures as at 31
December 2023 have been adjusted accordingly.
2 Excluding derivative financial instruments.
in € million
2024
2023
Change
Cash and cash equivalents
14,882
13,682
1,200
Marketable securities and investment funds
1,001
1,782
– 781
Intragroup net financial assets
33,844
32,832
1,012
Financial assets
49,727
48,296
1,431
Less: external financial liabilities2
– 3,948
– 2,794
– 1,154
Net financial assets Automotive
45,779
45,502
277
in € million
2024
2023
Change
Cash inflow (+)/outflow (–) from operating activities
– 8,387
488
– 8,875
Cash inflow (+)/outflow (–) from investing activities
– 81
6
– 87
Cash inflow (+)/outflow (–) from financing activities
8,538
– 750
9,288
Effects of exchange rate and changes in composition of segment
– 57
– 184
127
Change in cash and cash equivalents
13
– 440
453
Cash flows Financial Services segment
Net financial assets – Automotive1
75
BMW Group Report 2024
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Financial Performance
FINANCING ACTIVITIES
A broad range of instruments on international money and capital
markets is used to finance worldwide operations. The funds
raised are used almost exclusively to refinance the BMW Group’s
Financial Services business. The overall objective of Group fi-
nancing is to ensure the solvency of the BMW Group at all times,
focusing on three areas:
1. The ability to act through permanent access to strategically
important capital markets
2. Autonomy through the diversification of refinancing instru-
ments and investors
3. A focus on value through the optimisation of financing costs
Financing measures undertaken at corporate level ensure ac-
cess to liquidity for the Group’s operating subsidiaries at stand-
ard market conditions and consistent credit terms. Funds are ac-
quired in line with a target liability structure, comprising a well-
balanced mix of financing instruments. The use of longer-term
instruments to refinance the Group’s Financial Services business
and the maintenance of a sufficiently high liquidity reserve serves
to rule out any liquidity risk intrinsic to the portfolio. This con-
servative financial approach also has a favourable effect on the
Group’s rating. Further information is provided in the section Li-
quidity Risks under ↗ Risks and Opportunities.
Focused capital market management, good ratings and the high
level of acceptance enjoyed by the BMW Group on the world’s
debt capital markets enabled it to refinance itself on those mar-
kets on favourable terms during the 12-month period under re-
port. In addition to bonds, the BMW Group also issued commer-
cial paper.
Furthermore, retail customer and dealership financing receiva-
bles, rights and obligations from leasing contracts, as well as col-
lateral interests in the financed vehicles, were transferred to
structured entities that securitise them and place them as collat-
eralised securities on the capital market as part of the Group’s
asset-backed securities financing arrangements (ABS financ-
ing).
Specific banking instruments, such as the customer deposits at
the Group’s own banks in Germany and the USA, were also de-
ployed for financing purposes. In addition, loans were taken out
from international banks.
During the reporting period, the BMW Group issued bonds total-
ling approximately € 19.0 billion. The BMW Group refinanced it-
self by means of 144A transactions with a total volume of
USD 7.0 billion on the US capital market and by means of so-
called Panda bonds with a volume of CNY 7.0 billion on the Chi-
nese capital market. Furthermore, the BMW Group issued,
among others, three euro benchmark bonds totalling € 6.2 bil-
lion, as well as a pound sterling benchmark bond of GBP 0.4 bil-
lion, a Swiss franc bond of CHF 0.5 billion and two Canadian
bonds of CAD0.9 billion on the international capital markets.
ABS transactions with a total financing volume equivalent to
€ 14.7 billion were executed in 2024, including both new and
rolled-over ABS transactions. During the reporting period, the
BMW Group was party to ABS transactions in the following mar-
kets: Australia, Canada, China, France, Germany, Japan, South
Africa, South Korea, Switzerland, the USA and the UK.
The following table provides an overview of amounts utilised at
31 December 2024 in connection with the BMW Group’s money
and capital market programmes:
Programmes
Programme
volume
Amount
utilised
in € billion
Euro medium-term notes
50.0
27.2
Commercial paper*
13.7
4.1
* Measured at the exchange rate as of 31 December 2024.
The BMW Group continued to deploy robust liquidity-related
measures throughout 2024 to ensure its ability to act flexibly and
independently at all times.
As at 31 December 2024, the liquidity reserve amounted to
€ 20.8 billion, which was above the previous year’s level (2023:
€ 19.5 billion).
The BMW Group also has access to a syndicated credit line,
which was renewed in June 2023. The syndicated credit line of
€ 8 billion has a term without exercising extension options until
June 2028 and is provided by a consortium of 43 international
banks.
As at the reporting date, the credit line has not been used. Fur-
ther information with respect to financial liabilities is provided in
↗ note [37] to the Group Financial Statements.
76
BMW Group Report 2024
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Financial Performance
NET ASSETS POSITION OF THE BMW GROUP
BMW Group Condensed Balance Sheet at 31 December
in € million
2024
2023
Change
in %
Currency-adjusted
change* in %
Proportion of
balance sheet total
in %
A S S E T S
Intangible assets
20,220
20,022
1.0
– 0.4
7.6
Property, plant and equipment
39,581
35,266
12.2
10.4
14.8
Leased products
48,838
43,118
13.3
11.2
18.2
Investments accounted for using the equity method
553
443
24.8
24.8
0.2
Other investments
1,099
1,197
– 8.2
– 12.0
0.4
Receivables from sales financing
93,718
87,355
7.3
4.7
35.0
Financial assets
3,399
5,518
– 38.4
– 39.1
1.3
Deferred and current tax
4,560
3,630
25.6
23.4
1.7
Other assets
9,256
9,133
1.3
0.8
3.5
Inventories
24,387
23,719
2.8
1.1
9.1
Trade receivables
2,834
4,162
– 31.9
– 33.2
1.1
Cash and cash equivalents
19,287
17,327
11.3
10.4
7.2
Total assets
267,732
250,890
6.7
4.8
100.0
E Q U I T Y A N D L I A B I L I T I E S
Equity
95,003
92,923
2.2
0.7
35.5
Pension provisions
222
427
– 48.0
– 48.7
0.1
Other provisions
16,373
17,037
– 3.9
– 5.2
6.1
Deferred and current tax
3,752
4,198
– 10.6
– 10.9
1.4
Financial liabilities
111,261
95,010
17.1
14.3
41.6
Trade payables
14,126
15,547
– 9.1
– 10.6
5.3
Other liabilities
26,995
25,748
4.8
3.1
10.1
Total equity and liabilities
267,732
250,890
6.7
4.8
100.0
* The adjustment for exchange rate factors is calculated by applying the relevant current exchange rates to the prior-year figures.
The Group’s total assets were slightly higher year on year at the
end of the reporting year 2024 on a currency-adjusted basis.
Positive currency effects, particularly those related to the US dol-
lar and the Chinese renminbi, led to a 6.7% increase in total as-
sets.*
As at the reporting date, intangible assets were at the same level
as the previous year when adjusted for currency effects. The
main reason for this was the amortisation of the reacquired rights
and dealership relationships from the acquisition of BMW Bril-
liance. These effects were offset by higher additions to capital-
ised development costs.
Adjusted for currency effects, property, plant and equipment was
up by 10.4% year on year. This rise was largely due to higher
investments in the sixth generation of electric drivetrains, as well
as for NEUE KLASSE vehicle projects such as the new BMW X3
and X5 Series. The capital expenditure ratio reached 6.4%
(2023: 5.7%); excluding right-of-use assets, it stood at 5.7%
(2023: 4.9%).
Leased products were significantly higher than in the previous
year on a currency-adjusted basis, driven by the rise in new leas-
ing business and the increase in the average financing volume.
The number of contracts in place increased slightly to a total of
1,740,720 contracts (2023: 1,712,330 contracts; +1.7%).
Receivables from sales financing were up slightly at the end of
the reporting period on a currency-adjusted basis. This was pri-
marily due to the growth in retail customer financing, which in-
cluded a higher average financing volume, as well as the in-
crease in dealership financing, which reflected the rise in the
number of contracts as well as higher contract values, particularly
in the USA and the UK. In China, the lower volume of retail cus-
tomer financing held down the increase in receivables. The main
reason for this was the ongoing strong competition with local
banks.
77
BMW Group Report 2024
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Financial Performance
The managed contract portfolio of financed vehicles fell by 3.2%
compared to the Group Financial Statements 2023 to
3,485,273 contracts.
Group equity rose to € 95,003 million, with the increase resulting
primarily from the Group net profit of € 7,678 million (2023:
€ 12,165 million).
Equity attributable to shareholders of BMW AG rose to € 92,315
million. This increase was mainly due to the net profit for the year
attributable to shareholders of BMW AG amounting to
€ 7,290 million. The dividend payout amounting to € 3,781 mil-
lion reduced Group equity and, to an equal extent, equity attribut-
able to BMW AG shareholders. The continued share buyback
programme also reduced equity attributable to shareholders of
the BMW Group.
Pension obligations stood at € 222 million, significantly down on
the previous year (2023: € 427 million). The decrease was due
in particular to actuarial gains as a result of higher discount rates.
Other provisions decreased moderately year on year on a cur-
rency-adjusted basis. This was due to the lower level of person-
nel-related obligations, in particular for profit-sharing payments
and long-service awards.
Currency-adjusted financial liabilities went up year on year due
to the higher level of bonds and liabilities to banks. The backdrop
to this was the increased financing requirement resulting from
business growth in the Financial Services segment.
BMW Group equity ratio*
in %
31.12.2024
31.12.2023
Change
in % points
Group
35.5
37.0
– 1.5
Automotive segment
40.5
43.1
– 2.6
Financial Services segment
10.3
11.0
– 0.7
* Equity in each case as a percentage of corresponding balance sheet total.
78
BMW Group Report 2024
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Financial Performance
VALUE ADDED STATEMENT
The value added statement shows the value of work performed
by the BMW Group during the financial year, less the value of
work bought in. Depreciation and amortisation, cost of materials,
and other expenses are treated as bought-in costs in the net
value added calculation. The allocation statement applies value
added to each of the participants involved in the value added pro-
cess. The bulk of the net value added benefits the employees.
The proportion remaining in the Group is retained to finance fu-
ture operations. The gross value added amount treats deprecia-
tion and amortisation as a component of value added which, in
the allocation statement, would be treated as internal financing.
Net value added by the BMW Group declined in 2024 due to
lower year-on-year earnings.
BMW Group value added statement
2024
in € million
2024
in %
2023
in € million
2023
in %
Change
in %
W O R K P E R F O R M E D
Revenues
142,380
99.2
155,498
100.1
– 8.4
Financial income
– 325
– 0.2
– 1,227
– 0.8
–
Other income
1,411
1.0
1,045
0.7
35.0
Total output
143,466
100.0
155,316
100.0
– 7.6
Cost of materials*
83,572
58.3
82,527
53.1
1.3
Other expenses
14,232
9.9
22,609
14.6
– 37.1
Bought-in costs
97,804
68.2
105,136
67.7
– 7.0
Gross value added
45,662
31.8
50,180
32.3
– 9.0
Depreciation and amortisation of total tangible, intangible and investment
assets
14,628
10.2
14,565
9.4
0.4
Net value added
31,034
21.6
35,615
22.9
– 12.9
A L L O C A T I O N
Employees
15,122
48.7
14,721
41.3
2.7
Providers of finance
5,061
16.3
3,665
10.3
38.1
Government/public sector
3,173
10.2
5,064
14.2
– 37.3
Shareholders
2,677
8.6
3,802
10.7
– 29.6
Group
4,613
14.9
7,488
21.0
– 38.4
Non-controlling interests
388
1.3
875
2.5
–
Net value added
31,034
100.0
35,615
100.0
– 12.9
* Cost of materials comprises all primary material costs incurred for vehicle production plus ancillary material costs (such as customs duties, insurance premiums and freight).
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COURSE OF BUSINESS AND SEGMENTS 1
AUTOMOTIVE SEGMENT
BMW Group maintains strong market position
» The BMW Group confirmed its strong market position in the re-
porting year 2024 with sales growth in Europe and the Americas.
The BMW brand gained additional market share in European
markets in particular, while also maintaining its leading market
position in China. Globally, BMW was the leader in the premium
segment. The systematic ramp-up of electric mobility was also a
further driver of growth in 2024. In particular, BEV deliveries
across all brands saw a significant increase of 13.5%.
The BMW, MINI and Rolls-Royce brands provide a broad yet cus-
tomised range of premium automobiles to meet different cus-
tomer needs. The BMW Group’s openness to technology is re-
flected in the drivetrain systems available, encompassing all-
electric models (BEV), state-of-the-art plug-in hybrids (PHEV)
and highly efficient combustion engines.
Deliveries2 of BMW Group vehicles totalled 2,450,854 units in
the reporting year, representing a slight decrease on the previous
year (2023: 2,554,183 units; -4.0%) and in line with the Group’s
expectations as adjusted in the third quarter of 2024. This de-
crease was largely due to delivery stops in the third quarter linked
to the Integrated Brake System (IBS) provided by a supplier, as
well as the challenging market situation in China.
The BMW brand delivered a total of 2,200,217 automobiles to
customers in the reporting year (2023: 2,252,793 units;
–2.3%). For MINI, 2024 was a year for renewing its entire prod-
uct portfolio. In this context, deliveries fell to 244,925 automo-
biles (2023: 295,358 units; –17.1%). Rolls-Royce, the prestig-
ious luxury brand, delivered 5,712 automobiles to customers,
down on the previous year in line with expectations, owing to
planned model changeovers and subdued demand in China
(2023: 6,032 units; –5.3%). «
Significant growth for all-electric vehicles
» The BMW Group has at least one electrified model in each of
its segments. Demand for all-electric automobiles across all
three brands generated significant growth in sales in 2024, with
a total of 426,536 vehicles sold (2023: 375,716 units;
+13.5%). The number of electrified vehicles (BEV and PHEV)
delivered to customers in the reporting year rose to a total of
593,150 units (2023: 565,875 units; +4.8%).
The share of all-electric automobile deliveries increased in 2024
to 17.4% (2023: 14.7%), while electrified vehicles accounted for
a total share of 24.2% (2023: 22.2%). The increasing electrifi-
cation of the product portfolio had a positive effect on the devel-
opment of fleet carbon emissions. ↗ Climate change mitigation and
adaptation as a key part of the corporate strategy «
BMW Group deliveries of electrified models
in units
2024
2023
Change
in %
BEV
426,536
375,716
13.5
BMW
368,475
330,197
11.6
MINI
56,171
45,193
24.3
Rolls-Royce
1,890
326
479.8
PHEV
166,614
190,159
– 12.4
BMW
164,172
173,878
– 5.6
MINI
2,442
16,281
– 85.0
Total
593,150
565,875
4.8
1 This section contains disclosures in line with ESRS 2 SBM-1.40a) i.; 42b).
2 See ↗ Glossary for definition of deliveries. Retail vehicle deliveries during a given reporting period
do not correlate directly to the revenues that the BMW Group recognises in respect of such report-
ing period.
3 ↗ Consumption and Carbon Disclosures.
3
3
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BMW Group deliveries of vehicles by region and market
in 1,000 units
2024
2023
2022
2021
2020
Europe
948.5
943.0
878.5
949.1
913.6
thereof Germany
265.7
272.6
254.3
266.8
285.0
thereof UK
168.8
159.2
157.3
164.3
163.2
Americas
482.7
482.0
441.5
451.7
379.7
thereof USA
399.3
397.3
363.5
368.0
307.9
Asia
963.6
1,073.1
1,031.0
1,067.9
986.5
thereof China
715.2
826.3
793.5
847.9
778.4
Other markets
56.1
56.1
48.6
52.8
45.4
Total
2,450.9
2,554.2
2,399.6
2,521.5
2,325.2
BMW Group – largest automobile markets in 2024 (2023)
in % of sales
Sales growth for BMW in Europe and the Americas
» The core BMW brand recorded sales growth in 2024 in Euro-
pean markets and the USA. The brand expanded its market
share primarily in Europe and confirmed its leading position in
the global premium segment. In particular, sustained high de-
mand for all-electric automobiles counteracted the overall down-
ward trend recorded during the reporting year, with the brand’s
BEV sales rising to 368,475 vehicles (2023: 330,197 units;
+11.6%). In total, the brand delivered 2,200,217 units to cus-
tomers (2023: 2,252,793 units; –2.3%). The X Family models
were one again among the most popular BMW models over the
course of the year. The BMW X1* in particular achieved double-
digit growth rates. Demand for the all-electric version of this suc-
cessful model accounted for more than one in five of the vehicles
delivered. The BMW iX1* was also the BMW brand’s most suc-
cessful BEV model in the reporting year. «
New BMW products
» 2024 was a year of significant new products for the BMW
brand. The launch of the new BMW X2* – which is also available
for the first time as the all-electric model BMW iX2* – kicked off
the year in March. The new BMW 5 Series Touring* is now avail-
able across all drivetrain types following the introduction of the
all-electric variant in May 2024 and exemplifies the technology
openness that characterises the BMW Group. The brand also
presented further revisions to the successful BMW 3 Series and
4 Series in the first half of the year. Now in their fourth generation,
two successful models – the new BMW X3* and the new BMW 1
Series – celebrated their launch in autumn, which also marked
the 20-year anniversary of the successful BMW 1 Series. The
new BMW 2 Series Gran Coupé* was presented to the public in
October and is set to launch in spring 2025. The remainder of
2025 will be dominated by the NEUE KLASSE. The first NEUE
KLASSE model will have its world premiere in the second half of
2025, with production starting towards the end of the year. «
* ↗ Consumption and Carbon Disclosures.
China
29.2 (32.3)
USA
16.3 (15.6)
Germany
10.8 (10.7)
UK
6.9 (6.2)
South Korea
3.5 (3.3)
France
3.4 (3.4)
Italy
3.3 (3.1)
Other
26.6 (25.4)
*
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Deliveries of BMW vehicles by model series
in units
2024
2023
Change in %
Share of BMW
deliveries 2024 in %
BMW 1 Series/BMW 2 Series
198,226
225,827
– 12.2
9.0
BMW 3 Series/BMW 4 Series
519,228
558,462
– 7.0
23.6
BMW 5 Series/BMW 6 Series
250,674
273,877
– 8.5
11.4
BMW 7 Series/BMW 8 Series
56,542
59,763
– 5.4
2.6
BMW Z4
10,482
10,957
– 4.3
0.5
BMW X1/X2
413,386
318,051
30.0
18.8
BMW X3/X4
370,198
405,562
– 8.7
16.8
BMW X5/X6
275,318
280,684
– 1.9
12.5
BMW X7
59,949
61,117
– 1.9
2.7
BMW iX
38,365
50,989
– 24.8
1.7
BMW XM
7,813
6,749
15.8
0.4
BMW i3/i8
36
755
– 95.2
–
BMW total
2,200,217
2,252,793
– 2.3
100.0
thereof BEV
368,475
330,197
11.6
16.7
thereof PHEV
164,172
173,878
– 5.6
7.5
BMW M sets new sales record
» BMW M ended the reporting year with another sales record.
With a total of 206,587 performance and high-performance ve-
hicles delivered, BMW M exceeded the record figure from the
previous year (2023: 202,431 units; +2.1%). This means that
almost one in ten BMW brand vehicles delivered in 2024 was a
BMW M model. The most sought-after model was again the all-
electric BMW i4 M50*.
Electrified vehicles continued to make inroads within the high-
performance class in 2024, with the new version of the
BMW M5* and the BMW M5 Touring* launching at the end of the
year. Both models are available for the first time as electrified
PHEVs and had already received positive feedback in the inter-
national trade press ahead of their launch. BMW M also pre-
sented updates to the BMW M2*, BMW M3* and BMW M4* in the
course of the year. Another special highlight was the presenta-
tion of the special edition BMW M4 CS*, which will only be in pro-
duction for a limited period of twelve months. «
* ↗ Consumption and Carbon Disclosures
*
*
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Deliveries of MINI vehicles by model variant
in units
2024
2023
Change in %
Share of MINI
deliveries 2024 in %
MINI Hatch (3- and 5-door)
128,635
155,607
– 17.3
52.5
MINI Convertible
18,994
32,141
– 40.9
7.8
MINI Clubman
10,693
24,207
– 55.8
4.4
MINI Countryman
80,971
83,403
– 2.9
33.1
MINI Aceman
5,632
–
–
2.3
MINI total
244,925
295,358
– 17.1
100.0
Deliveries of Rolls-Royce automobiles by model variant
in units
2024
2023
Change
in %
Phantom
413
505
– 18.2
Ghost
808
1,510
– 46.5
Wraith/Dawn
11
168
– 93.5
Cullinan
2,590
3,523
– 26.5
Spectre
1,890
326
479.8
Rolls-Royce total
5,712
6,032
– 5.3
New MINI Family launched
» The MINI brand began the reporting year by renewing its entire
product portfolio and therefore, as expected, delivered fewer ve-
hicles than in the previous year (2024: 244,925 units; 2023:
295,358 units; –17.1%). Significant impetus for growth again
came from the ongoing electrification of the brand’s portfolio,
with all-electric models representing 22.9% of the brand’s total
deliveries (2023: 15.3%). The MINI Cooper SE* was the brand’s
best-selling model again in 2024. The share of electrified MINI
models (BEV and PHEV models) was 23.9% (2023: 20.8%).
This means that almost one in four MINI vehicles delivered was
electrified.
The MINI Aceman joined the MINI Family in 2024. The all-elec-
tric crossover model has been available since autumn and has
delighted customers with the go-kart feeling synonymous with
MINI. The next member of the family will excite fans of fresh air,
with the popular MINI Convertible* leaving the production line in
Oxford again from the end of 2024 and available to purchase
from early 2025. «
Rolls-Royce – Bespoke sales at record level
» The luxury brand Rolls-Royce delivered a total of 5,712 auto-
mobiles to clients in the reporting year (2023: 6,032 units;
–5.3%). The moderate reduction was in line with the marque´s
planning and was attributable to model changeovers ahead of
the launch of the new models Cullinan Series II* and Ghost Se-
ries II*. Rolls-Royce was also somewhat affected by muted de-
mand in the luxury segment of the Chinese market. The
marque´s Bespoke programme, centred on creating value for cli-
ents through highly individualised products, enjoyed great suc-
cess. Bespoke content reached a new record level in 2024. In
terms of the average value per motor car, Bespoke content value
increased 10% year-on-year, reaching the highest level in the
history of the marque.
The most sought-after models in 2024 were the Rolls-Royce
Cullinan* and the all-electric Rolls-Royce Spectre*. The Spectre*
had a highly successful first full year of sales, with high demand
worldwide. In Europe, it was the most requested model. The year
2025 will mark a high point in the history of the luxury brand, with
the marque´s flagship, the Rolls-Royce Phantom, celebrating its
centenary. «
* ↗ Consumption and Carbon Disclosures.
*
*
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Automotive segment earnings performance in line with
expectations
» Automotive segment revenues decreased moderately year on
year to € 124,917 million (2023: € 132,277 million; –5.6%,
currency-adjusted: –4.8%) against the backdrop of lower sales
volumes and falling selling prices. Pricing measures brought for-
ward from the previous year partially compensated for the impact
of increased competition on vehicle prices. The situation in China
was particularly challenging in the financial year 2024. Although
the Chinese market grew as a whole, the BMW Group’s sales
there went down and fell short of expectations. One of the rea-
sons for this was the continued slowdown in consumer spending
on vehicles in higher price segments, which did not improve no-
ticeably despite government support measures. Sales were also
affected in the reporting year by vehicle delivery stops linked to
the supplied IBS.
The segment’s cost of sales totalled € 107,729 million, slightly
down on the previous year (2023: € 109,920 million; –2.0%).
The decrease in manufacturing costs in the reporting period was
largely due to volume-related effects, with lower warranty ex-
penses also playing a role. The lower level of warranty expenses
in 2024 reflects the reduction of additions to warranty provisions
in light of lower sales volumes. The previous year was also af-
fected by increased additions in connection with airbags with in-
flators from the supplier ARC and the remeasurement of the pro-
vision for the exhaust gas recirculation cooler (EGR). Although in-
creased additions were required in the reporting year for recalls
linked to the IBS, additions to warranty provisions were lower
than in the previous year as expected. Furthermore, the provision
relating to the supplier ARC was reversed, which resulted in a
higher level of reversals compared to the previous year. By con-
trast, increased expenses in connection with the supplier network
had a negative impact compared to the previous year.
The purchase price allocation of BMW Brilliance resulted in de-
preciation and amortisation amounting to € 1.3 billion.
The anticipated increase in research and development expendi-
ture related largely to the cross-series digitalisation and electrifi-
cation of the vehicle fleet. In addition, development work took
place on new models such as the successors to the BMW X3 and
X5 models as well as further in the NEUE KLASSE.
Selling and administrative expenses rose slightly to € 9,357 mil-
lion in the reporting period (2023: € 9,195 million; +1.8%),
mainly due to higher personnel costs and, above all, IT costs, pri-
marily for projects and software licences.
The net amount of other operating income and expenses im-
proved year on year, mainly due to gains arising on foreign cur-
rency transactions.
The various factors described above had a corresponding impact
on earnings. At € 7,893 million, profit before financial result in
the Automotive segment was significantly down on the previous
year (2023: € 12,981 million; –39.2%).
1 Gross profit as a percentage of segment revenues.
2 Profit before financial result as percentage of segment revenues.
At 6.3%, the EBIT margin for the segment was within the ad-
justed target range of 6 to 7% in the reporting year (2023: 9.8%;
–3.5 percentage points).
The financial result of the Automotive segment was a net nega-
tive amount of € 349 million, slightly down on the previous year
(2023: net negative amount of € 339 million). The deterioration
was mainly due to the downturn in the net interest result, largely
as a consequence of higher expenses related to unwinding the
discounting of provisions. Impairment losses recognised in the
previous year on investments accounted for using the equity
method had an offsetting impact.
Profit before tax remained significantly lower in 2024 than in the
previous year at € 7,544 million (2023: € 12,642 million).
The Automotive segment’s return on capital employed (RoCE)
for 2024 finished at 11.4% and was therefore within the forecast
target range of 11 to 13% (2023: 20.2%; –8.8 percentage
points). The decrease was primarily due to the lower profit before
financial result. «
in %
2024
2023
Change
in % points
A U T O M O T I V E
Gross profit margin1
13.8
16.9
– 3.1
EBIT margin2
6.3
9.8
– 3.5
M O T O R C Y C L E S
Gross profit margin1
15.5
17.4
– 1.9
EBIT margin2
6.1
8.1
– 2.0
BMW Group margins by segment
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MOTORCYCLES SEGMENT
BMW Motorrad sets new record
» Deliveries* in the Motorcycles segment rose to a new high of
210,385 units (2023: 209,066 units; +0.6%). However, the
subdued economic development was also felt in the Motorcycles
business, particularly in China, but also in other regions. «
Deliveries worldwide – solid sales growth in Germany and
Brazil
» Germany and markets in North and South America in particular
contributed to the positive sales performance in the reporting pe-
riod. A total of 118,704 motorcycles were delivered in Europe in
2024, slightly up on the previous year (2023: 116,011 units;
+2.3%). In Germany, sales volume grew solidly by 8.3% to
26,177 units (2023: 24,176 units). While France finished the re-
porting year down on 2023 with a total of 20,693 units
(2023: 21,668 units; –4.5%), slight growth was recorded in Italy
(2024: 16,617 units; 2023: 16,179 units; +2.7%) and Spain
(2024: 13,009 units; 2023: 12,716 units; +2.3%).
Deliveries of motorcycles also rose in the Americas to 47,692
units (2023: 46,184 units; +3.3%), with Brazil the main driver
of growth. Solid growth was recorded in that country in 2024
with 15,267 units delivered (2023: 14,106 units; +8.2%). In the
USA, deliveries reached 17,272 units, exceeding the previous
year’s level (2023: 17,017 units; +1.5%). In Asia, sales on the
Chinese market, in contrast, fell to 13,872 units (2023: 15,832
units; –12.4%). «
Market launches during the reporting year
» BMW Motorrad continued to renew its product portfolio in
2024, also adding another electric vehicle in the form of the
CE 02
eParkourer.
Other
highlights
included
the
new
BMW R 1300 GS Adventure, which has been available since No-
vember 2024, and the addition of the BMW M 1000 XR to the M
Family.
Three models in the Adventure segment – the F 900 GS,
F 900 GS Adventure and the F 800 GS – were revised and
launched in the first half of the year. The S 1000 XR was revised
in the Sport segment. In the Heritage segment, the new versions
of the R 12 nineT and the R 12 were added to the successful
R nineT Family. «
Deliveries of BMW motorcycles
in 1,000 units
BMW Group – largest motorcycle markets 2024 (2023)
in % of sales
* See ↗ Glossary for a definition of deliveries. Retail vehicle deliveries during a given reporting pe-
riod do not correlate directly to the revenues that the BMW Group recognises in respect of such
reporting period.
169.3
194.3
202.9
209.1
210.4
0
2020
2021
2022
2023
2024
Germany
12.4 (11.6)
France
9.8 (10.4)
USA
8.2 (8.1)
Italy
7.9 (7.7)
Brazil
7.3 (6.7)
China
6.6 (7.6)
Spain
6.2 (6.7)
Other
41.6 (41.8)
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New products unveiled by BMW Motorrad
» BMW Motorrad presented six model updates during the report-
ing year 2024. Three model updates were announced for the
Roadster segment, namely the F 900 R (November), S 1000 R
and M 1000 R (both December), which will be introduced to the
market in 2025. Two highly dynamic Sport motorcycles followed
with the presentation of the BMW S 1000 RR (October) and the
M 1000 RR.
The updated scooters C 400 GT and C 400 X, which are ideal for
urban mobility, were launched in early 2025. «
Motorcycles segment earnings performance within forecast
target
» The EBIT margin of the Motorcycles segment came in at 6.1%
(2023: 8.1%) and therefore within the adjusted forecast range
of 6 to 7%.
Profit before tax in the reporting period amounted to € 198 mil-
lion (2023: € 258 million; –23.3%). Favourable pricing and
product mix effects were offset by higher material and develop-
ment costs.
The return on capital employed (ROCE) in the Motorcycles seg-
ment for the reporting year came in at 15.5% and therefore
within the adjusted expected range of 14 to 16% (2023: 22.1%;
–6.6 percentage points). The year-on-year change reflected
mainly the downturn in profit before tax on the one hand and the
increase in net working capital due to a rise in average inventory
levels on the other. «
FINANCIAL SERVICES SEGMENT
Solid increase in new business in reporting period
» The number of new credit financing and leasing contracts went
up by a robust 9.8% in the reporting period to a total of
1,693,876 (2023: 1,542,514 contracts). In addition to the at-
tractive product portfolio, the growth was achieved through the
seamless integration of the segment’s customer-oriented finan-
cial services products and its close cooperation with dealerships.
The share of new BMW Group vehicles either leased or financed
by the Financial Services segment in the year under review stood
at 42.6%* (2023: 38.2%; +4.4 percentage points).
Out of the new contracts concluded in 2024, 352,807 contracts
were for the credit financing and leasing of pre-owned
BMW Group vehicles, 8.4% more than in the previous year
(2023: 325,320 contracts).
New leasing business increased significantly by 19.6% year on
year and accounted for 36.6% of all new business in the report-
ing year 2024. Credit financing also went up (+4.9%) and ac-
counted for 63.4% of new business.
The total new business volume of all credit financing and leas-
ing contracts increased by a significant 12.5% year on year,
reaching € 64,519 million (2023: € 57,333 million). In addition
to the higher number of new contracts, a higher financing volume
per vehicle also contributed to this growth. «
New BMW Group vehicles leased or financed by the
Financial Services segment*
in %
*The calculation only includes automobile markets in which the Financial Services segment is rep-
resented by a consolidated entity.
Contract portfolio of leased or financed vehicles in the
Financial Services segment in 2024
in 1,000 units
28.4
29.7
24.8
22.1
22.6
21.4
20.8
16.2
16.1
20.0
49.8
50.5
41.0
38.2
42.6
0
2020
2021
2022
2023
2024
Financing
Leasing
5,592
5,577
5,210
4,952
4,850
0
2020
2021
2022
2023
2024
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» At 31 December 2024, a total of 4,850,121 contracts for
credit financing and vehicle leasing were in place (31 December
2023: 4,952,318 contracts; –2.1%). In the Americas region, the
number of contracts managed by the Financial Services segment
remained similar to the previous year (–0.2%). While the number
of contracts went up slightly in Oceania (+6.4%) and Europe
(+1.0%), a downward trend was observed in Africa (–5.3%) and
particularly in Asia (–12.6%). The significant drop in the number
of contracts in Asia can be attributed to the continued strong
competition in the Chinese financial services sector and lower
sales by the Automotive segment in China. «
Contract portfolio of leased or financed vehicles in the
Financial Services segment in 2024 (2023)
in % by regions
Slight increase in fleet business
» Under the brand name Alphabet, the Financial Services seg-
ment offers credit financing and leasing contracts, as well as re-
lated services, mainly to commercial customers as part of its fleet
management business. As at the end of the reporting period, the
segment had contracts in place for a fleet of 741,935 vehicles
(2023: 720,094 units; +3.0%).
Alphabet has been responsible for the management and mar-
keting of part of the Group’s own fleet since the second quarter
2024. The purpose of this move is to optimise the utilisation and
remarketing of the vehicles involved. These volumes will be con-
tinuously expanded as part of the transition to the direct sales
model in Europe. At the end of the reporting period, the segment
had a total of 21,152 vehicles under its management. «
Dealership financing up significantly on previous year
» The total business volume of dealership financing at 31 De-
cember 2024 stood at € 21,273 million significantly up com-
pared to the end of the previous financial year (2023:
€ 18,941 million; +12.3%). The main driver of this growth was
the higher average financing volume per vehicle. «
Financial Services segment profit before tax down on
previous year
» Profit before tax reported by the Financial Services segment for
the financial year 2024 totalled € 2,538 million (2023:
€ 2,962 million; –14.3%) and was therefore significantly down
on the previous year. The main reason for the decline in earnings
was lower results achieved on the remarketing of lease returns.
Earnings were also impacted in the fourth quarter 2024 due to
additions to provisions for legal risks in the UK and higher ex-
penses for credit risk provisioning, particularly as a result of the
challenging nature of the Chinese automobile market.
The credit loss ratio for the entire financing portfolio was 0.26%
in 2024 (2023: 0.18%). Business volume in balance sheet
terms stood at € 151,117 million and was therefore solidly
higher than one year earlier (2023: € 137,910 million;
+9.6%). «
Slight decline in earnings performance of Financial Services
segment
» Return on equity for the Financial Services segment was lower
than in the previous year, finishing at 15.1% for the reporting
year (2023: 17.2%; –2.1 percentage points). The RoE for 2024
was within the adjusted forecast of between 15 and 18%. «
THE OTHER ENTITIES SEGMENT
AND ELIMINATIONS
The profit before tax of the Other Entities segment amounted to
€ 837 million (2023: loss before tax of € 100 million). The main
reason for the improvement was the lower negative impact of the
remeasurement of interest rate hedging transactions compared
to the previous year.
At the level of profit/loss before tax, eliminations fell to a net neg-
ative amount of € 146 million (2023: net positive amount of
€ 1,334 million). In comparison to the previous year, higher elim-
inations in 2024 due to the increased level of new leasing and
credit financing business had a negative impact on the profit/loss
before tax.
Europe
55.5 (53.8)
America
24.5 (24.1)
Asia
17.8 (19.9)
Africa
1.2 (1.2)
Oceania
1.0 (0.9)
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Financial Performance
COMMENTS ON THE FINANCIAL STATEMENTS OF BMW AG
Bayerische Motoren Werke Aktiengesellschaft (BMW AG), based
in Munich, Germany, is the parent company of the BMW Group.
The comments on the BMW Group and Automotive segment
provided in earlier sections apply to BMW AG, unless presented
differently in the following section. The Financial Statements of
BMW AG are drawn up in accordance with the provisions of the
German Commercial Code (HGB) and the relevant supplemen-
tary requirements contained in the German Stock Corporation
Act (AktG).
The key financial performance indicator for BMW AG is the divi-
dend payout ratio. This corresponds to the unappropriated profit
of BMW AG in accordance with HGB in relation to the profit at-
tributable to shareholders of BMW AG, based on the
BMW Group’s net profit for the year. The key non-financial per-
formance indicators are identical and concurrent with those of
the BMW Group. These are described in detail in the ↗ Comparison
of Forecasts with actual Outcomes section of the Combined Manage-
ment Report.
Differences in accounting treatments based on HGB (used for
the Company Financial Statements) and the International Finan-
cial Reporting Standards (IFRS) as adopted by the European Un-
ion (used for the Group Financial Statements) are mainly to be
found in connection with the capitalisation of intangible assets,
the measurement of property, plant and equipment and invento-
ries, the creation of valuation units, the recognition and measure-
ment of financial instruments and provisions as well as the
recognition of deferred tax. Differences also arise in the presen-
tation of assets and liabilities and of items in the income state-
ment.
Business environment and review of operations
The general and sector-specific environment of BMW AG is the
same as that of the BMW Group and is described in the ↗ General
and Sector-specific Environment section of the Combined Manage-
ment Report.
BMW AG develops, manufactures and sells automobiles and
motorcycles as well as spare parts and accessories manufac-
tured in house, by foreign subsidiaries and by external suppliers,
and performs services related to these products. Sales activities
are carried out primarily through branches, subsidiaries, inde-
pendent dealerships, agents and importers. Automobile deliver-
ies decreased by 73,330 units to 2,547,590 units in the finan-
cial year 2024. This figure includes 586,016 units relating to se-
ries sets supplied to BMW Brilliance Automotive Ltd., Shenyang,
a decrease of 106,251 units compared with the previous year.
As at 31 December 2024, BMW AG had 87,823 employees,
plus 5,942 apprentices, interns and thesis students (31 Decem-
ber 2023: 85,168 employees, plus 5,733 apprentices, interns
and thesis students).
The BMW Group had a strong first half of 2024 in line with ex-
pectations. Business then slowed over the remainder of the year
due to delivery stops and recalls linked to the Integrated Brake
System (IBS) provided by a supplier, as well as ongoing muted
demand in China.
Maintaining a consistent focus on technology openness allows
the BMW Group to develop innovative drive technologies and to
respond in a flexible manner to market developments. BMW AG
believes it is well-positioned on the basis of its robust strategy,
balanced product range and continuous investment in research
and development.
BMW AG’s solid financial condition is reflected in the results of
operations, financial position and net assets reported for the fi-
nancial year 2024. Business developed in line with manage-
ment’s adjusted expectations. This assessment also takes into
account events after the end of the reporting period.
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Financial Performance
Results of operations
BMW AG Income Statement
in € million
2024
2023
Revenues
105,317
107,874
Cost of sales
– 88,214
– 90,865
Gross profit
17,103
17,009
Selling expenses
– 4,261
– 4,123
Administrative expenses
– 4,068
– 3,824
Research and development expenses
– 8,315
– 6,924
Other operating income
2,062
1,872
Other operating expenses
– 1,953
– 2,067
Result on investments
3,917
3,592
Financial result
– 378
– 84
Income taxes
– 566
– 1,067
Profit after income tax
3,541
4,384
Other taxes
– 17
– 18
Net profit
3,524
4,366
Transfer to revenue reserves
– 847
– 564
Profit from the reduction of the share capital
–
24
Transfer to capital reserves according to § 237 V AktG
–
– 24
Unappropriated profit available for distribution
2,677
3,802
Revenues decreased by € 2,557 million compared to the previ-
ous year to € 105,317 million, largely as a result of a downturn
in sales volumes. The contraction was mainly due to the Chinese
market, where revenues fell by € 2,773 million. A positive devel-
opment was recorded in Europe, where revenues grew by
€ 1,056 million. Revenues totalled € 105,317 million (2023:
€ 107,874 million), of which Group internal revenues accounted
for € 81,138 million (2023: € 83,231 million) or 77.0% (2023:
77.2%).
The € 2,651 million decrease in cost of sales to € 88,214 million
was largely due to lower volumes and was almost proportional
to the change in revenues. This line item also includes expenses
for statutory and non-statutory warranty and product guarantee
obligations, which decreased by € 510 million year-on-year due
to remeasurements.
Gross profit rose by € 94 million to € 17,103 million.
Overall, selling expenses increased slightly, while general ad-
ministrative costs recorded a solid increase.
A large proportion of research and development expenses re-
lated to NEUE KLASSE models, new vehicle models (including
the successors to the BMW X3* and BMW X5*), the ongoing dig-
italisation across different series and the electrification of the
fleet. Research and development expenses rose accordingly by
20.1% year on year.
Other operating income increased to € 2,062 million (2023:
€ 1,872 million), and comprised mainly gains arising on financial
transactions and income from the reversal of other provisions.
Other operating expenses decreased to € 1,953 million (2023:
€ 2,067 million) and mainly included expenses from financial
transactions and additions to other provisions.
Income from profit and loss transfer agreements with Group
companies, reported in the line item Result on investments, in-
creased significantly. This was essentially due to the increase in
the profits of BMW INTEC Beteiligungs GmbH, Munich, which re-
ceived a higher level of distributions from its subsidiaries, includ-
ing BMW Holding B.V., The Hague.
The financial result deteriorated by € 294 million compared to
the previous year. The previous year mainly included higher
gains arising on the fair value measurement of plan assets offset
against pension obligations.
Income taxes resulted primarily from the current tax calculation
for the financial year.
* ↗ Consumption and Carbon Disclosures.
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Financial Performance
After deducting the expense for taxes, the Company reported a
net profit of € 3,524 million, compared to € 4,366 million in the
previous year.
Subject to the shareholders’ approval of the appropriation of re-
sults at the Annual General Meeting, the unappropriated profit
available for distribution amounts to € 2,677 million (2023:
€ 3,802 million). This translates to a payout ratio of 36.7% cal-
culated based on the BMW AG shareholders’ portion of the
BMW Group’s consolidated net profit in accordance with IFRS.
The payout ratio thus remains within the forecast range of 30 to
40%, as in 2023 (33.7%).
The payout ratio takes into account the number of shares entitled
to dividends at 31 December 2024 and may change prior to the
Annual General Meeting due to the ongoing share buyback pro-
gramme.
Financial and net assets position
BMW AG Balance Sheet at 31 December
in € million
2024
2023
in € million
2024
2023
A S S E T S
E Q U I T Y A N D L I A B I L I T I E S
Intangible assets
1,606
1,823
Subscribed capital
639
639
Property, plant and equipment
16,623
15,560
Nominal amount of own shares
– 17
– 5
Investments
12,020
12,077
Capital reserves
2,450
2,450
Tangible, intangible and investment assets
30,249
29,460
Revenue reserves
10,926
11,046
Inventories
7,766
8,505
Unappropriated profit available for distribution
2,677
3,802
Trade receivables
1,005
1,349
Equity
16,675
17,932
Receivables from subsidiaries
13,546
16,398
Registered profit-sharing certificates
23
24
Other receivables and other assets
3,845
3,120
Pension provisions
1,848
2,231
Marketable securities
1,912
2,705
Other provisions
10,660
11,537
Cash and cash equivalents
8,142
6,145
Provisions
12,508
13,768
Current assets
36,216
38,222
Liabilities to banks
–
35
Prepaid expenses
105
142
Trade payables
6,892
7,552
Liabilities to subsidiaries
23,949
22,648
Other liabilities
1,794
1,364
Liabilities
32,635
31,599
Deferred income
4,729
4,501
Total assets
66,570
67,824
Total equity and liabilities
66,570
67,824
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Financial Performance
Capital expenditure on intangible assets and property, plant and
equipment in the year under report totalled € 3,699 million
(2023: € 4,571 million) and was directed towards the electrifica-
tion of the vehicle portfolio and models in the NEUE KLASSE,
among other projects. Depreciation and amortisation amounted
to € 2,766 million (2023: € 2,607 million). Investment assets
remained in line with the previous year’s level and totalled
€ 12,020 million (2023: € 12,077 million).
Inventories went down to € 7,766 million (2023: € 8,505 mil-
lion), primarily due to a reduction in inventories of finished and
unfinished goods, including a decrease in plant inventories and
the intragroup transfer of part of the Group’s own fleet.
Receivables from subsidiaries decreased to € 13,546 million
(2023: € 16,398 million). In particular, trade receivables were
down as a result of the overall decline in sales volumes in China
compared to the previous year.
The increase in other receivables and other assets to
€ 3,845 million (2023: € 3,120 million) was due in particular to
repurchase agreements for financial instruments reported under
other assets.
Liquidity within the BMW Group is ensured by means of a liquid-
ity concept applied uniformly across the Group. This involves
concentrating a significant part of the Group’s liquidity at the level
of BMW AG. An important instrument in this context is the cash
pool based at BMW AG.
Cash and cash equivalents increased by € 1,997 million to
€ 8,142 million, mainly due to the higher net cash inflow from
operating activities as a result of reduced receivables from sub-
sidiaries compared to the previous year. This was offset by vari-
ous factors, in particular the cash outflows from financing activi-
ties due to the payment of the dividend for the financial year
2023.
Equity fell by € 1,257 million to € 16,675 million, mainly due to
lower unappropriated profit available for distribution and lower
revenue reserves as a result of the share buyback programmes.
The dividend payment for the financial year 2023 totalled
€ 3,781 million. The equity ratio deteriorated from 26.4% to
25.0%.
In order to secure pension obligations, cash funds totalling
€ 446 million (2023: € 430 million) were transferred to BMW
Trust e. V., Munich, in conjunction with a Contractual Trust Ar-
rangement (CTA), to be invested in plan assets. Plan assets
amounting to € 13,390 million (2023: € 12,528 million) have
been offset against the related guaranteed obligations.
After offsetting pension plan assets against pension obligations,
provisions for pensions decreased from € 2,231 million to
€ 1,848 million.
Other
provisions
decreased
from
€ 11,537 million
to
€ 10,660 million. This was mainly due to the lower level of per-
sonnel-related provisions as well as provisions for statutory and
non-statutory warranty and product guarantee obligations.
The rise in liabilities to subsidiaries to € 23,949 million (2023:
€ 22,648 million) was mainly due to the increase in financial lia-
bilities in conjunction with the overall increase in the size of the
cash pool.
Deferred income went up by € 228 million to € 4,729 million
and included primarily amounts for services still to be performed
relating to service and maintenance contracts.
Risks and opportunities
BMW AG’s performance is essentially dependent on the same
set of risks and opportunities that affect the BMW Group and
which are described in detail in the ↗ Risks and Opportunities chapter
of the Combined Management Report. As a general rule,
BMW AG participates in the risks entered into by Group compa-
nies in proportion to the respective shareholding percentage. At
the same time, the result on investments has a significant impact
on the earnings of BMW AG.
BMW AG is integrated in the Group-wide risk management sys-
tem and internal control system of the BMW Group. Further in-
formation is provided in the ↗ Internal Control System chapter of the
Combined Management Report.
Outlook
For the financial year 2025, BMW AG expects an unchanged div-
idend payout ratio (unappropriated profit of BMW AG in accord-
ance with HGB in relation to the Group net profit attributable to
shareholders of BMW AG in accordance with IFRS) within the
targeted range of between 30 and 40% (2024: 36.7%).
Due to its significance in the Group and its close ties with Group
companies, expectations for BMW AG with respect to its non-fi-
nancial performance indicators correspond largely to the BMW
Group’s outlook. This is described in detail in the ↗ Outlook chapter
of the Combined Management Report.
PricewaterhouseCoopers
GmbH
Wirtschaftsprüfungsgesell-
schaft, Frankfurt am Main, Munich branch, has issued an unqual-
ified audit opinion on the Company Financial Statements of
BMW AG, of which the balance sheet and the income statement
are presented here. For the purposes of their inclusion in the
Company Register, the Company Financial Statements of
BMW AG will be submitted electronically to the body that main-
tains the Company Register and may be obtained via the Com-
pany Register website. The financial statements are also availa-
ble on the BMW Group website at ↗ www.bmwgroup.com/ir.
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Sustainability Statement
FOREWORD TO THE SUSTAINABILITY STATEMENT*
The BMW Group is committed to making continuous progress.
Its innovative expertise aims to systematically reduce resource
requirements. Taking a 360° approach to sustainability is a cen-
tral pillar of the BMW Group Strategy.
The BMW Group believes that its ability to create value and per-
form at a high level lies in balancing its economic, environmental
and social responsibilities. The BMW Group has a long tradition
of being responsible and forward-thinking when it comes to en-
vironmental protection, our people and our commitment to soci-
ety. It is only natural, then, that in recent years we have expanded
our focus beyond our own operations to our entire value chain,
including our upstream supply chains and the lifecycle of our
products after they have been delivered to our customers.
The Company pioneered sustainable business practices by ap-
pointing the first environmental officer in the German automotive
industry over fifty years ago. Today, its robust environmental
management systems and approach to corporate responsibility
continue to uphold the BMW Group’s high standards.
The BMW Group is making its contribution to Europe's overarch-
ing goal of climate neutrality by striving to achieve net zero car-
bon emissions across its entire value chain by 2050 at the latest.
The BMW Group’s ambitious sustainability targets are aligned
with the 1.5°C pathway of the Paris Agreement for its CO2e emis-
sions (Scope 1 and Scope 2) and the Well-Below-Two-Degree
(WB2C) approach for CO2e emissions from the supply chain and
the use phase of automobiles (Scope 3 categories Purchased
Goods and Services, Downstream Transportation and Distribu-
tions, Use of Sold Products). The Group’s holistic, science-based
approach involves This is built on
—
permanent reduction of energy requirements (Scope 1 and
2 emissions of BMW Group locations),
—
making greater use of renewable energy (Scope 1 and 2
emissions of BMW Group locations),
—
using the latest technology to improve efficiency (Scope 3
Use of Sold Products),
—
using electricity from renewable sources as a criterion when
awarding contracts to suppliers (Scope 3 Purchased Goods
and Services), and
—
a continuously increasing secondary raw material quota
(Scope 3 Purchased Goods and Services).
The BMW Group offers its customers state-of-the-art drive tech-
nology, regardless of the drivetrain type. The Company recog-
nised the challenges now facing the entire automotive industry
at an early stage and is taking the initiative to find solutions. The
BMW Group has been reducing fuel consumption for many years
by using innovative EfficientDynamics technologies to develop
highly efficient engines, thus ensuring the increasingly efficient
use of fossil fuels at an early stage. The expansion of the PHEV
fleet marked a significant step towards drivetrain electrification
and reduced the carbon emissions of the Group’s own vehicle
fleet even further. The BMW Group’s entry into electromobility
began over 15 years ago with the development of the all-electric
BMW i3. The extensive experience gained since then continues
to shape the BMW Group’s manufacturing processes for all-elec-
tric models, which have become a success story for the
BMW Group. In 2024, they accounted for 17.4% of total deliver-
ies, making the BMW Group one of the world's most successful
suppliers of all-electric vehicles. This robust strategy has deliv-
ered measurable success, with the BMW Group regularly surpas-
sing EU carbon targets for its fleet. Consistently strong rankings
in prestigious rating schemes highlight the priority that the
BMW Group places on sustainability.
The NEUE KLASSE, a new model generation, will be launched in
2025. It was developed with a strong emphasis on efficiency and
sustainability throughout the supply chain. At the same time, with
the NEUE KLASSE, the BMW Group is vigorously pursuing its
strategic approach to close material cycles and thus gradually
move closer to circularity. The BMW Group intends to introduce
a second all-electric and locally emission-free variant to be pow-
ered by hydrogen fuel cells in 2028.
Climate change mitigation is a top priority for the BMW Group.
Between 1995 and 2020, the BMW Group halvedthe CO₂ emis-
sions of its new car fleet in Europe, thanks in no small part to an
unwavering commitment to EfficientDynamics technologies. The
EfficientDynamics approach brings together highly efficient
drivetrains, intelligent lightweight construction and optimised ve-
hicle energy management systems.
* Not part of ESRS reporting.
SUSTAINABILITY STATEMENT
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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.
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Sustainability Statement
P R I N C I P L E S A N D G E N E R A L D I S C L O S U R E S
95
General Basis for Preparation of the Sustainability Statement
96
Sustainability Strategy
97
Materiality Assessment
103 Material Impacts, Risks and Opportunities and their Interaction
with Strategy and Business Model
105 Stakeholder Engagement
108 Principles of Governance by the Board of Management and
Supervisory Board
113 Renumeration of the Board of Management and the Supervisory Board
114 Internal Control System for Sustainability Reporting
115 Statement on Due Diligence
E N V I R O N M E N T A L I N F O R M A T I O N
117 Climate Change Mitigation and Adaptation
127 Holistic Environmental Management within the BMW Group
128 Energy Efficiency and renewable Energy
131 Reduction of Environmental Pollution
133 Responsible Use of Water Resources
137 Commitment to protecting Biodiversity
140 Circular Economy and Resource Use
147 EU Taxonomy
S O C I A L I N F O R M A T I O N
161 Social Responsibility
163 Own Workforce
175 Social and Environmental Responsibility in the Supplier Network
181 Consumers and End-Users
G O V E R N A N C E I N F O R M A T I O N
189 Combating Corruption and Bribery
191 Political Involvement and Lobbying Activities
O T H E R E S G I N F O R M A T I O N
195 Other Environmental Information
199 Glossary and Explanation of Key Figures
228 List of material Impacts, Risks and Opportunities
234 List of phased-in Disclosure Requirements
234 List of Datapoints that derive from other EU Legislation
237 ESRS-Index
SUSTAINABILITY STATEMENT IN ACCORDANCE WITH ESRS
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Sustainability Statement
PRINCIPLES AND GENERAL DISCLOSURES
95
General Basis for Preparation of the Sustainability Statement
96
Sustainability Strategy
96
Operating segments
96
Employees
96
Business model and value chain
96
Strategic position – Sustainability-related goals
97
Materiality Assessment
97
Procedure and methodological basis for the materiality assessment
99
Comparison with previous period and next review of results
99
Procedures for identifying and assessing material climate-related
and environmental impacts, risks and opportunities
103
Material Impacts, Risks and Opportunities and their Interaction with
Strategy and Business Model
103
Description of material impacts, risks and opportunities and their link to
strategy and business model
104
Current financial effects of material risks and opportunities
105
Stakeholder Engagement
108
Principles of Governance by the Board of Management and
Supervisory Board
108
Board of Management – Duties, diversity, expertise
110
Supervisory Board – Composition, diversity, expertise
111
Supervisory Board – Duties and committees
113
Renumeration of the Board of Management and the Supervisory Board
113
Board of Management
114
Supervisory Board
114
Internal Control System for the Sustainability Reporting
115
Statement on Due Diligence
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Sustainability Statement
GENERAL BASIS FOR PREPARATION OF
THE SUSTAINABILITY STATEMENT
This Sustainability Statement fulfils the requirements for the
combined non-financial statement (NFS) in accordance with §§
289b (1) and 315b (1) to 315c of the German Commercial Code
(HGB). It therefore represents the Combined Non-financial
Statement of the BMW Group and BMW AG. Unless stated oth-
erwise, all information relates to both the BMW Group and
BMW AG.
We have adopted the delegated act outlined in Article 29b of Di-
rective 2013/34/EU on sustainability reporting standards (the
European Sustainability Reporting Standards [ESRS]) in full for
the first time. Contrary to expectations, the ESRS are not cur-
rently mandatory due to the fact that the Corporate Sustainability
Reporting Directive was not adopted into German law by 31 De-
cember 2024. Due to the future mandatory application, the
ESRS are nevertheless already used as a framework for the NFE
for the 2024 financial year on a voluntary basis.
Because Group-level information is of relevance for our stake-
holders, the NFS for BMW AG will not use a different framework.
In principle, the policies, measures and targets described for the
Group also apply to BMW AG.
This Sustainability Statement also takes the following legal
frameworks into account:
—
Taxonomy Regulation (Regulation (EU) 2020 /852 of the
European Council and of the European Parliament on the
Establishment of a Framework to Facilitate Sustainable In-
vestment, and amending Regulation (EU) 2019 /2088) and
its delegated acts
—
Book IX of the German Social Code: Rehabilitation and Par-
ticipation of People with Disabilities (SGB IX) § 154
The Sustainability Statement also draws on the SASB standards
published by the Sustainable Accounting Standards Board. They
provide information about sector-specific disclosures. Footnotes
are used to identify these disclosures as additional disclosures.
An overview is available in the ↗ SASB Index.
Some of the data points in this report refer to the 2021 GRI
Standards of the Global Reporting Initiative (GRI).
This Sustainability Statement is prepared on a consolidated ba-
sis for the entire BMW Group. The Sustainability Statement co-
vers all companies that are included in the reporting entity for the
BMW Group’s Financial Statements. Subsidiaries are incorpo-
rated in full, while joint operations are included on a proportion-
ate basis. Similar to the Group Financial Statements, individual
companies are not included in the Sustainability Statement if
they are deemed immaterial. An overview of the companies that
have been included is available in the ↗ List of Investments. Devia-
tions from the Group reporting entity have been noted for the rel-
evant disclosures.
The Sustainability Statement covers the BMW Group’s own busi-
ness activities along with its upstream and downstream value
chain.
The BMW Group’s ESRS-based materiality assessment has
identified the impacts, risks and opportunities that are consid-
ered material in accordance with ESRS. A detailed description of
this materiality assessment is provided in the ↗ Materiality
Assessment section. Whenever the identified material impacts,
risks and opportunities can be assigned to the upstream or
downstream value chain, the policies used to address them, the
targets defined in relation to the material sustainability matters,
and the measures that have been taken or planned to achieve
strategic targets and objectives also apply across the upstream
or downstream value chain.
The parameters that have been determined and applied in this
Sustainability Statement also include the value chain to the ex-
tent that this is required by law or useful for the purpose of pre-
senting and explaining a material sustainability-related issue.
The BMW Group is making use of the option to omit certain in-
formation relating to intellectual property, expertise or the results
of innovations for the 2024 financial year (§ 289e HGB). The
safeguard clause applies to the disclosures specified in ESRS
E1-1.16c) and E1-3.29c). The safeguard clause referenced in
ESRS 2 BP-1.5e) has not been used for the 2024 financial year.
The timeframes for collecting and assessing material impacts,
risks and opportunities are aligned with our long-term corporate
planning. The short-term period corresponds to the reporting
year. In terms of material impacts, risks and opportunities, the
medium-term time horizon covers the period from 2025 to
2030. Accordingly, the long-term time horizon extends to the pe-
riod after 2030. For the main climate-related impacts, risks and
opportunities, the period from 2025 to 2035 is considered to be
medium-term. The long-term period begins after 2035. The pe-
riods for the material climate-related impacts, risks and opportu-
nities correspond to the periods previously used in the Group’s
internal assessment and external reporting.
A complete list of disclosure requirements and referenced data
points is available in the ↗ ESRS Index.
Due to the voluntary first-time application of ESRS, the previous
year’s figures are not disclosed in this Sustainability Statement,
with a few exceptions. Figures reported in the Group Financial
Statements that enable a better understanding of the non-finan-
cial statement are disclosed and explained.
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SUSTAINABILITY STRATEGY
The aim of the BMW Group Strategy is to find the right balance
between business, the environment and society. The key areas
of focus within the strategy are electrification, digitalisation and
sustainability or circularity. Sustainability encompasses the stra-
tegic organisation of the entire value chain. Sustainability consid-
erations are therefore integrated in corporate structures and pro-
cesses in a comprehensive and holistic manner. » The BMW Group
Strategy
Operating segments
The BMW Group’s business model comprises the Automotive,
Motorcycles and Financial Services segments. A detailed de-
scription of the segments along with their products, services and
key markets can be found in » Organisation and Business Model and
» Segments. Information about relevant BMW Group products that
were introduced in 2024 is also provided in » New BMW products,
» New MINI Family launched, » Motorcycles Segment and » Strategic approach
– where is the BMW Group heading?.
Employees
At 31 December 2024, the BMW Group employed a workforce
of 158,441 people worldwide. The distribution of the workforce
by region is presented in ↗ Own workforce characteristics.
Business model and value chain
The BMW Group develops and manufactures premium automo-
biles and motorcycles, in addition to providing financial services.
General information about the factors that impact its business
model and management is provided in » The BMW Group Strategy.
The BMW Group’s upstream value chain comprises a multi-lay-
ered network of suppliers who provide production material, raw
materials, components, capital goods and services to the BMW
Group for the purpose of producing vehicles and parts. For a de-
scription of the Purchasing and Production departments and the
role that they play in the value chain, please refer to » Purchasing
and Supplier Network and » Production Network. The BMW Group’s
global sales network functions as a downstream value chain and
serves to sell the vehicles produced, provide customer care, and
carry out maintenance and repair work on vehicles owned by
customers. An explanation of the BMW Group’s sales system
and the relevant customer groups and markets is available in
» Segments, » Organisation and Business Model. » Strategic approach – Where
is the BMW Group heading? provides an insight into the sales strategy
and the shift to direct sales. The recycling and reprocessing of
parts and the recycling of vehicles is covered in ↗ Measures for the
responsible use of resources. Thousands of vehicles are dismantled
and recycled using efficient methods every year at the
BMW Group’s recycling and dismantling centre. The BMW
Group’s Financial Services segment focuses on credit financing,
leasing BMW Group brand automobiles and motorcycles to pri-
vate customers, and the fleet business. It plays a key role in the
sales system. Further details are available in » Segments – Financial
Services. Regardless of how the contracts are categorised for fi-
nancial reporting purposes, the use of vehicles leased in the Fi-
nancial Services segment and the associated environmental im-
pacts are allocated in full to the downstream value chain.
For information on financial performance and the course of busi-
ness, please refer to » Financial Performance and » Course of Business
and Segments. An overview of actual and potential material im-
pacts, risks and opportunities, and how they relate to the BMW
Group’s business model, strategy and value chain, can be found
in ↗ Material Impacts, Risks and Opportunities and their Interaction with
Strategy and the Business Model. This also provides information about
the resilience of the BMW Group’s corporate strategy and busi-
ness model with regard to management of material impacts and
risks as well as utilisation of material opportunities.
Strategic position - Sustainability-related goals
Key sustainability-related goals are described as integral com-
ponents of the BMW Group strategy in ↗ Position – what does the
BMW Group stand for? and ↗ Climate Change Mitigation and Adaptation,
↗ Energy Efficiency and renewable Energies, ↗ Circular Economy and Resource
Use and ↗ Own Workforce.
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MATERIALITY ASSESSMENT
Procedure and methodological basis for the materiality
assessment
After many years of applying the GRI materiality methodology,
the BMW Group conducted its first materiality assessment based
on the European Corporate Sustainability Reporting Directive
(CSRD) and the ESRS. This assessment followed the double ma-
teriality approach outlined in ESRS 1, which considers two key
perspectives:
Impacts (inside-out perspective): this perspective assesses the
positive and negative impacts of the BMW Group’s business ac-
tivities on the environment and society. It encompasses all rele-
vant stakeholders of the BMW Group.
Risks and Opportunities (outside-in perspective): this perspective
assesses how external sustainability factors influence the
BMW Group’s business model. It focuses on risks and opportu-
nities that could arise from external developments and have a
financial impact on the BMW Group.
The BMW Group uses the steps outlined below to identify, as-
sess and prioritise impacts, risks and opportunities as part of the
materiality assessment process. The approach outlined in
ESRS 1 is used for all sustainability topics, including aspects of
business conduct (ESRS G1), biodiversity and ecosystems
(ESRS E4) and resource use and circular economy (ESRS E5).
Additional descriptions of the identification and assessment of
material climate and environmental impacts, risks and opportu-
nities follow this general overview.
1.
Identification and assessment of relevant sustainability
topics (identification of impacts, risks, and opportunities)
for the BMW Group
2.
Transparency regarding expectations and interests of key
internal stakeholders and dialogue with relevant and af-
fected stakeholders external to the BMW Group
3.
Assignment of material sustainability topics to the corre-
sponding disclosures in the topical ESRS
4.
Validation of outcomes and finalisation of the materiality
assessment.
Additional analyses for specific sustainability topics are some-
times performed before the materiality assessment itself.
Scenario analyses are used to identify climate-related physical
and transitory risks and opportunities ↗Procedures for identifying and
assessing material climate-related and environmental impacts, risks and
opportunities. The results of these analyses are incorporated into
the materiality assessment to identify potential and actual mate-
rial risks and opportunities and their scale. Analysis of opportu-
nities and risks takes place in the three defined time horizons
↗ General Basis for Preparation of the Sustainability Statement.
The following methodology is used for the inside-out as well as
the outside-in perspective.
Step 1
The first step in identifying and assessing relevant sustainability
topics is to review the relevant sustainability topics identified on
the basis of the BMW Group’s materiality assessments in previ-
ous years, taking into account the extended requirements of
ESRS. This step also involves determining the extent to which
new or additional sustainability-related topics need to be added,
for example in the areas of strategy, Board of Management re-
muneration, competition, or environmental analysis. The out-
come of this review is assigned to the sustainability topics spec-
ified in ESRS 1 “General requirements”.
Next, negative or positive impacts on the environment and soci-
ety are formulated for each sustainability topic (e.g. water con-
sumption at production sites) along the entire BMW Group value
chain*. The starting point is the Company’s established environ-
mental, social and governance due diligence processes. When
needed, these are supplemented by new impacts that have not
yet been subject to detailed monitoring (e.g. in the area of biodi-
versity). The impacts form the basis for deriving potential risks
and opportunities (e.g. regulatory risks to curb water consump-
tion in water-sensitive areas) for the BMW Group’s business
model. There are also sustainability-related risks and opportuni-
ties that may affect the BMW Group regardless of their impact.
Risks and opportunities of this kind are compared with the out-
comes of the company-wide risk management process (infor-
mation about the risk management process is provided in ↗ Risk
and opportunity management, while the definition of non-financial
risks in accordance with Section 289c HGB is provided in
↗ Non-financial risks as reported in the non-financial statement (NFS)). Each
impact or opportunity and each risk is placed in a temporal con-
text with three different categories: short-term (2024 financial
year), medium-term (2025 to 2030 inclusive; up to and including
2035 for climate-related risks or opportunities) and long-term (>
2030 or > 2035 for climate-related risks/opportunities). The re-
sulting list of impacts, risks and opportunities is validated in
workshops with internal and external experts. Risks and oppor-
tunities are derived at the level of sustainability sub-topics and
sub-sub-topics whenever possible so that their materiality can
be assessed on a differentiated basis within a topic-specific
ESRS.
Both the upstream value chain (supply chain) and the down-
stream value chain are considered as part of the materiality as-
sessment. The impact on the environment and people along the
supply chain is addressed in the impacts, risks and opportunities
that relate to environmental or social sustainability topics.
* This encompasses all of the BMW Group’s operations, including all of its locations and regions, as
well as its business relationships.
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The business conduct-related impacts, risks and opportunities in
the context of the supply chain, on the other hand, focus exclu-
sively on the management of relationships with suppliers, includ-
ing payment practices.* This includes, for example, fair behaviour
towards suppliers, transparent selection process criteria, and ad-
equate payment practices.
The subsequent tool-supported assessment of all formulated
impacts, risks and opportunities is carried out by internal experts.
Each assessment parameter is rated on a scale of 1 to 4. The
range in the overall assessment can therefore be between 0.1
and a maximum of 4.0 when multiplied by a probability of occur-
rence. If an impact, risk or opportunity exceeds 2, it is considered
material. The severity of a negative or positive impact is deter-
mined by multiplying its scope (how widespread is the impact?)
by its scale (how grave or beneficial is the impact?). For negative
impacts, the extent to which the impact can be remedied is also
taken into account. In the case of a potential (positive or negative)
impact, the assessment is assigned a probability of occurrence.
Risks and opportunities are assessed on the basis of financial
materiality. Potential risks and opportunities are the product of
their financial scale and their probability of occurrence. The fol-
lowing categories are used to specify the financial scale of a risk
or opportunity: financial performance, strategic targets, reputa-
tion effect, supply chain and compliance. Not all evaluation cate-
gories necessarily have to be evaluated and the highest value
from the five evaluation categories is always decisive.
The assessment process is also based on the following assump-
tions:
—
Mitigating actions that have already been implemented and
are effective for the BMW Group during the reporting period
are taken into account when assessing impacts and risks.
—
In cases where assessment results are provided by multiple
assessors due to segment-specific differences, an average
valuation is applied.
—
An additional detailed review of the outcomes is carried out
in threshold cases where a rating is exactly or just below 2,
as well as in extreme cases.
—
Assessment results are backed up using external sources or
empirical studies whenever possible.
Outcome: The sustainability sub-topics and sub-sub-topics
specified in ESRS 1 are in line with the sustainability matters that
the BMW Group has considered to date. On the basis of the sus-
tainability sub-topics and sub-sub-topics specified in ESRS 1
and the mitigating action which has been implemented, a total of
almost 800 impacts, risks and opportunities along the
BMW Group value chain were available for assessment pur-
poses. Of these, 85 impacts, risks and opportunities were as-
sessed as material for the BMW Group via the internal analysis
for the 2024 financial year. These can be assigned to 31 sus-
tainability sub-topics and sub-sub-topics (for details, see ↗ List of
material Impacts, Risks and Opportunities).
Step 2
In the second step, the BMW Group involves affected stakehold-
ers and users of sustainability statements in assessing the ma-
terial sustainability topics. The following stakeholder groups
were consulted in order to draw opinions from as wide a circle as
possible: investors, the Works Council of BMW AG as employee
representatives, customers, suppliers and other business part-
ners, network partners, representatives from civil society, NGOs,
and representatives from politics and science. Stakeholders are
placed in E, S or G groups based on their expertise, and asked
for their individual opinion of the assessment results. Opinions
are gathered using structured interview formats, e.g. virtual
stakeholder forums with external moderators. The BMW Group
is also in continuous dialogue with a large number of external
stakeholders in Germany and abroad regarding all sustainability
matters listed below. These are involved in the materiality as-
sessment process as part of the stakeholder management pro-
cess. ↗ Stakeholder Engagement
Outcome: The material sustainability sub-topics and sub-sub-
topics identified by BMW Group’s internal materiality assess-
ment were confirmed by the stakeholder groups surveyed. Infor-
mation on adjusting the relevance of sustainability topics was
taken into account as part of a validation of the assessment re-
sults.
Step 3
In the third step, the relevant sustainability topics for the BMW
Group are assigned to the individual disclosure requirements of
the topical ESRS. As the European Commission has yet to issue
a final mapping matrix for the 2024 financial year, the BMW
Group mapped sustainability topics independently and arranged
for its mappings to be validated by two external consulting firms.
For the mapping of a material sustainability sub-topic or sub-
sub-topic to disclosure requirements in the area of strategies,
measures and targets, the minimum disclosure requirements ac-
cording to ESRS 2 and the disclosure requirements of the rele-
vant topical standard are taken into account.
Material sustainability sub-topics or sub-sub-topics are linked to
quantitative disclosure requirements via the specific formulation
of a material impact, a material risk or a material opportunity. By
way of example, the material impact on “Social dialogue” makes
the sustainability sub-sub-topic “Social dialogue” material. The
material sustainability sub-topics and sub-sub-topics are then
assigned to the disclosure requirements pursuant to ESRS.
Outcome: The 31 material sustainability sub-topics and sub-
sub-topics, which are distributed across 85 impacts, risks and
opportunities, are associated with over 500 individual disclosure
requirements (data points) for the BMW Group for the 2024 fi-
nancial year in accordance with the respective ESRS.
* Approach adopted by the BMW Group for ESRS G1 sustainability topic “Management of relation-
ships with suppliers, including payment practices”.
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Step 4
In the fourth step, all outcomes of the materiality assessment are
explained in detail to the relevant bodies, in particular the Board
of Management and the Audit Committee of BMW AG. The re-
sulting conclusions are discussed with the relevant decision mak-
ers. If necessary, this is used to adjust selected results of the as-
sessment.
Outcome: The result of the materiality assessment for the
BMW Group was confirmed by the committees of BMW AG after
the entire process, including adjustments, was completed.
Comparison with previous period and next review of results
The materiality assessment in accordance with the ESRS was
performed for the BMW Group for first time in the 2024 financial
year. This means that a comparison with the prior year cannot
be made. There will be a review of the results of the assessment
of material sustainability topics following the publication of the
2024 BMW Group Report during the 2025 financial year, and on
an ongoing basis in the financial years ahead.
Procedures for identifying and assessing material climate-
related and environmental impacts, risks and opportunities
Climate-related impacts
The BMW Group directly and indirectly generates greenhouse
gas emissions worldwide through upstream processes, the pro-
curement and processing of raw materials, products and services
for development and production, and the supply and use of its
own products and services. ↗ Climate Change Mitigation and Adaptation
These emissions are assessed, recorded, measured and re-
ported in accordance with the requirements of the Greenhouse
Gas Protocol and the relevant scopes in terms of their signifi-
cance.
As
an
automobile
manufacturer,
most
of
the
BMW Group’s emissions are generated during the production of
purchased components and during the use of its products (Scope
3). The supply chain’s relevance is growing steadily due to rising
emissions caused by the increasing electrification of the
BMW Group’s vehicle fleet. Despite their lower volume compared
to absolute values, the emissions from our own sites (Scopes 1
and 2) are measured and steered because of their direct influ-
ence. The procedure for measuring all scopes or categories clas-
sified as relevant is firmly established in the BMW Group’s non-
financial reporting process ↗ CO2e footprint, ↗ Materiality of the various
Scope 3 categories. These metrics are reviewed internally in the
event of significant changes and adjusted if necessary. It is also
checked whether there are any changes or additions to the rele-
vant categories with reference to the requirements of the Green-
house Gas Protocol.
To assess the impact of its own business activities on green-
house gas emissions, the BMW Group has made these analyses
an integral part of its long-term corporate planning. The CO2e
emissions resulting from sales planning (with a focus on the sup-
ply chain and the use phase, as well as own production) are sim-
ulated based on current assumptions and checked against the
reduction targets. This is used to derive the measures required
to achieve the objectives and to initiate their implementation.
Variables that do not correlate to the volume and drivetrain mix
are also controlled – for example, the infrastructure of non-man-
ufacturing sites.
Procedure and methodological basis for climate-related risks and
opportunities
Climate change may also impact the BMW Group business
model in different ways. As a result, the company analyses a
wide range of climate scenarios, identifies and measures cli-
mate-related risks and opportunities and adopts the relevant
measures.
During the 2024 reporting year, all material risks and opportuni-
ties for the BMW Group were analysed in terms of their sensitivity
regarding three different climate scenarios. For the medium-term
period until 2036, it is distinguished between transitory and
physical climate risks. For the long-term period until 2050, the
assessment focuses on the physical climate risks. Examples of
physical climate risks include an increasing frequency and inten-
sity of acute extreme weather events such as heavy rain, hail,
storms and floods, along with longer-term changes in tempera-
ture and total rainfall. Transitory risks, by contrast, arise from the
transition to a low-emissions economy. These include, among
others, regulatory risks, technology risks, capital and financial
market risks, and market risks.
The BMW Group uses three scenarios to identify and measure
climate-related risks, which are based on the scenarios of the
Shared Socioeconomic Pathways (SSP) of the Intergovernmen-
tal Panel on Climate Change (IPCC). The 2014 IPCC Report was
used for the scenario analyses in 2023, while the 2023 IPCC Re-
port was used for 2024. These climate scenarios range from a
low-emissions scenario with global warming of <+1.5 °C (Paris
Agreement, SSP1-1.9), a medium scenario with an average
warming of +2.5 °C (intermediate, SSP2-4.5) to a >+4 °C (fos-
sil-fueled development, SSP5-8.5) scenario.
The wide range of scenarios which could occur over the long-
term planning period and beyond covers plausible risks and un-
certainties. Physical as well as transitory risks and opportunities
are taken into account in internal management and in the prep-
aration of the Group Financial Statements.* » Accounting policies,
assumptions, judgments and estimations
Physical climate risks
The three IPCC climate scenarios set out above form the basis
for the BMW Group’s risk model for physical climate risks in the
entire value chain. To assess these scenarios, site-specific risk
data provided by an external insurance company are used for all
relevant BMW Group and supplier sites for the medium and long
term.
* The attainment of the Paris Agreement targets is part of the BMW Group’s long-term corporate
planning, meaning that the low-emission scenario is incorporated into the assumptions for the
Group Financial Statements in accordance with ESRS E1 AR 15.
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Risk-specific data, such as global weather and climate data, a
digital elevation model and registered historical events, are used
for the various physical risks. The spatial resolution is defined by
the finest available representation of the relevant output data.
In terms of physical climate-related risks, the periods mentioned
above cover the long-term strategic corporate planning period as
well as the expected service life of buildings and facilities.
For the BMW Group, physical climate risks may result in damage
to assets such as buildings, vehicles or parts. Climate-related
events may also lead to downtime at BMW Group’s own or at
suppliers’ sites. Physical climate risks are analysed on a location-
specific basis, for example based on geo-coordinates of the rel-
evant BMW Group sites and supplier sites. The average annual
expected damage loss is calculated for each BMW Group or sup-
plier site using the underlying location-related hazard situation,
its exposure, and site-related vulnerabilities.
The risk posed by climate change at the respective BMW Group
or supplier site is modelled both in the medium and long term
(time dimension) in accordance with the scenarios (intensity di-
mension) of the globally recognized IPCC Report. Physical cli-
mate risks also increase for the BMW Group particularly in the
long-term period for 2050 and beyond within the context of the
>+4°C scenario (SSP5-8.5). This affects both BMW Group pro-
duction sites and supplier sites. Were such an event to occur, it
could lead to production interruptions at individual sites. Updates
on risks identified in climate scenarios are always taken into ac-
count when planning new construction and conversion
measures.
After considering the physical climate risks in the various scenar-
ios, the materiality of the risks was assessed in the overarching
materiality analysis. The BMW Group has implemented a wide
range of measures to mitigate these risks, so that no physical cli-
mate risks as defined by the sense of the ESRS are categorised
as material. All material climate-related risks are transitory risks.
Transitory climate risks and opportunities
Transitory risks arise from the transition to a low-emissions
economy and are assessed for the medium-term using climate-
related risk drivers and qualitative expert assessments. These
risks become particularly apparent when conditions change
more quickly or differently than expected.
The potential short-term effects of climate change are already
included in the short-term risks. All short-term risks from the
BMW Group’s own operations and from the upstream and down-
stream value chain are assessed for their transitory climate risks.
Risks identified as being both material and climate-relevant are
included in the scenario analysis. The potential development of
climate-related transitory risks is assessed, as described above,
for a medium-term period (2036) and for three global warming
scenarios. It is assumed that measures to combat climate
change will be less effective in higher scenarios than in a 1.5°C
scenario, for example. An assessment is performed based on
this premise.
The BMW Group also recognises economic opportunities in the
orientation towards the 1.5°C path. These arise from adjust-
ments to products, production processes and the value chain.
The opportunities are derived from the climate risk analysis for
the medium-term period in the three different scenarios and
evaluated as part of the materiality assessment. Opportunities
for the BMW Group are arising particularly from the demand for
low-emission products generated by the goal of slowing down
climate change, efficiency and transport potential in the carbon
footprint in the upstream value chain, as well as the increasing
range of BMW Group drivetrain variants and the resulting grow-
ing market share among environmentally conscious buyers.
The potential transitory risks are deemed the highest over the
medium-term as a result of the rapid, potentially unforeseeable
developments in the Paris Agreement global warming scenario.
It cannot be ruled out that more decisive measures will have to
be taken globally in the next few years in order to achieve the
<+1.5°C target. As the scenario analysis demonstrates, regula-
tory requirements introduced at short notice may enter into force,
which could have an impact on products, production and supply
chains. This also includes changes to calculation and disclosure
requirements, which may change the target contribution of
measures taken. In addition, competition and demand, especially
for electric vehicles, may change in a 1.5°C scenario.
At present, the BMW Group’s strategy is consistent with the tran-
sition to a carbon-neutral economy in accordance with
ESRS E1 AR 12(d).
Impact, risks and opportunities in relation to environmental pollu-
tion
The identification of significant impacts, risks and opportunities
for the topic of environmental pollution takes place at a overarch-
ing level as part of the materiality analysis ↗ Materiality Assessment.
Information on strategies, targets, measures and metrics is de-
scribed in ↗ Reduction of Environmental Pollution.
Specifically with regard to the issue of environmental pollution,
sites with a particular influence on the BMW Group’s business
activities are examined more closely. A risk assessment is per-
formed for each site identified as having a particular influence.
For example, the Company’s sites are generally subject to an en-
vironmental impact assessment and, depending on the risks in-
volved, certification on a case-by-case basis. Sites with a high
risk and a high level of damage are subject to measures to re-
duce potential damage. New sites are assessed for impacts and
risks using environmental due diligence, environmental impact
analysis, climate risk assessments and, where required, baseline
assessments of biodiversity. Risk mitigation measures derived
from these assessments are implemented as required. Further-
more, the BMW Group Environmental Statement includes both a
qualitative assessment of the environmental impact of manufac-
turing technologies at the various sites and, where available, the
inclusion and assessment of topics concerning other emissions.
By taking this systematic approach, the BMW Group ensures
that the impacts, opportunities and risks are recorded in full and
assessed accordingly.
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This includes all sites that require an environmental assessment
and approval under national law (for example the Federal Immis-
sion Control Act [BIMSchG] in Germany). In practice, this includes
all production sites, component production, the Research and In-
novation Centre (FIZ), test tracks and distribution centres. Other
sites such as offices or branches may require country-specific
environmental assessments, but are usually examined only as
part of building permits due to their lower environmental rele-
vance. These building permits also include environmental impact
assessments in accordance with country-specific laws.
A list of the material environmental effects is provided for all tech-
nologies and indirect environmental effects (for example em-
ployee commuting) in the ↗ BMW Group Environmental Statement.
Water-related impacts, risks and opportunities
The materiality assessment also encompasses the identification
and assessment of the impacts, risks and opportunities relating
to water and marine resources. The LEAP approach1 is applied
in this context. For additional environmental information, please
refer to ↗ Holistic Environmental Management within the BMW Group, and
specifically regarding the topic of water, ↗ Responsible Use of Water
Resources.
Water and marine resources were identified in the first phase. Im-
pacts related to water and marine resources that have been as-
sessed include:
—
Water: consumption of surface and groundwater as well as
withdrawals and discharges
—
Marine resources: extraction and use of these resources and
related economic activities
In this phase, the Aqueduct tool2 was used to identify the geo-
graphic areas affected by water-related risks, along with the ar-
eas where there is an interface with marine resources that could
lead to significant impacts and dependencies. The following
were considered:
—
BMW Group sites and the associated upstream and down-
stream activities along the value chain
—
Sites in areas subject to high water stress
—
Sectors or business lines that interface with water or marine
resources at these priority locations
In the second phase, the materiality of the impacts and depend-
encies were assessed using river basins as the relevant level for
the site assessment and combining this with an operational risk
assessment. The Company took into account the criteria of the
Water Framework Directive 2000/60/EG and its guidelines.
The following steps were undertaken with regard to the sites se-
lected in the first phase:
—
Identification of business processes and activities that lead
to impacts and dependencies on water and marine re-
sources
—
Assessment of the severity and probability of occurrence of
positive and negative impacts
In the third phase, risks and opportunities were assessed. The
basis is created from the results of the first two phases, including:
—
Transitory risks and opportunities: legal and political
changes, technological progress, shifts in the market and
reputational risk
—
Physical risks: water scarcity, water stress and deterioration
in water quality
—
Opportunities: resource efficiency, market diversification
and financing opportunities
The analysis concluded that the consumption of water is material
both in the BMW Group’s own operations and in the upstream
supply chain. Measures to reduce water consumption and use
alternative sources of water, such as rainwater, were developed
specifically for the Company’s own facilities as early as 2009,
when sustainability targets were first introduced. Please refer to
↗ Social and Environmental Responsibility in the Supplier Network for infor-
mation on water withdrawal and concepts for the sustainable use
of water.
The BMW Group’s production sites, vehicle test facilities and
joint ventures located in areas subject to water stress are indi-
cated in the table.
1 The LEAP approach is an integrated environmental assessment process comprising four steps:
Locate, Evaluate, Assess and Prepare.
2 The Aqueduct tool is a database maintained by the World Resources Institute (WIR) to map data
on water risks and ESG risks, among other things. The database was used to compare the BMW
Group’s sites with locations subject to water risk.
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Sites by water stress level*
Water stress level
Site(s)
Country
Extremely high water stress
Granada
Oxnard
Chennai
Rosslyn
Spain
USA
India
South Africa
High water stress
Berlin
Leipzig
Miramas
Oxford
Swindon
Spartanburg
Dadong
Tiexi
Rayong
Germany
Germany
France
UK
UK
USA
China
China
Thailand
Medium to high water stress
Eisenach
Wackersdorf
Goodwood
San Luis Potosí
Zhangjiagang
Germany
Germany
UK
Mexico
China
Low to medium water stress
Hams Hall
UK
Low water stress
Munich
Dingolfing
Landshut
Regensburg
Eching
Aschheim
Steyr
Arjeplog
Araquari
Manaus
Germany
Germany
Germany
Germany
Germany
Germany
Austria
Sweden
Brazil
Brazil
* The share of water consumption at non-production-related sites in areas subject to water stress
excluding vehicle testing facilities is relatively low, which is why the other non-production-related
sites are not listed separately.
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MATERIAL IMPACTS, RISKS AND
OPPORTUNITIES AND THEIR
INTERACTION WITH STRATEGY AND
BUSINESS MODEL
Description of material impacts, risks and opportunities and
their link to strategy and business model
As part of the preparation of the 2024 Sustainability Statement,
the material impacts, risks and opportunities were evaluated for
the first time in accordance with the double materiality require-
ments for sustainability topics. A total of 85 material impacts,
risks and opportunities were identified. These can be assigned to
the BMW Group’s business model and economic activities, as
well as to the upstream or downstream value chain. The material
impacts, risks and opportunities can be categorised under the 31
sustainability sub-topics and sub-sub-topics defined in ESRS 1
(see figure).
A full outline and explanation of all material sustainability-related
impacts, risks and opportunities identified can be found in the
↗ List of material Impacts, Risks and Opportunities. The overview also in-
cludes a representation of the effect that material negative and
positive impacts have on people and the environment, or could
have in the case of potential impacts. For each impact, risk and
opportunity listed, it also indicates whether or not they are also
addressed by company-specific disclosures. The time horizons
in which the material impacts, risks and opportunities are ex-
pected to occur are also included. Most of the material impacts
have already materialised.
Because the methodology for the materiality assessment has
been adjusted to reflect the first-time application of the ESRS re-
quirements, it is not possible to make a comparison of the mate-
rial impacts, risks and opportunities with the previous year.
Material sustainability topics of BMW Group for Financial Year 2024 following ESRS
E (Environmental)
S (Social)
G (Governance)
E1 Climate Change
S1 Own Workforce
G1 Business Conduct
Climate change adaptation
Health and safety
Political engagement and
lobbying activities
Climate change mitigation
Gender equality and equal pay for
work of equal
Energy
Corruption and bribery – Prevention
and detection including training
Diversity
E2 Pollution
Training and skills development
Pollution of water
Secure employment
Pollution of soil
Social dialogue
Microplastic
S2 Workers in the value chain
E3 Water and Marine Resources
Working time
Water consumption
Freedom of association, including
the existence of work councils
Water withdrawals
Health and safety
E4 Biodiversity
Training and skills development
Direct exploitation
Measures against violence and
harassment in the workplace
E5 Circular Economy
Child labour
Resources inflows, including
resource use
Forced labour
Resource outflows related to
products and services
S4 Consumers and EndUsers
Access to (quality) information
Waste
Privacy
Health and safety
Protection of children
Upstream material Own Operations material Downstream material Materiality assessment requires the consideration of the total value chain.
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Sustainability Statement
As part of the environmental analysis, material sustainability-re-
lated impacts, risks and opportunities are also evaluated in terms
of their effect on the strategy and business model, underlying as-
sumptions are reviewed, and strategic goals are aligned accord-
ingly » Environmental Analysis. The BMW Group’s strategy forms the
baseline for its consistent focus on sustainability » Cornerstones of
the Strategy. With its products, the BMW Group is contributing to
sustainable development and, with its business activities, aims
to create a connection between business, the environment and
society. The strategy’s key areas of focus take into account ma-
terial impacts, risks and opportunities across the entire value
chain. This involves, in particular, all drivetrain technologies with
a strong focus on electromobility, digitalisation to strengthen
customer interaction and products, and increasing sustainability
along the entire value chain, including circularity. The heteroge-
neous nature and increasing complexity of the regulatory re-
quirements and the material impacts, risks and opportunities
that arise as a result are incorporated into the BMW Group’s po-
sition and strategy development process. An overview of how the
BMW Group takes the current and expected future effects of key
material impacts, risks and opportunities into account in its busi-
ness model, value chain and corporate strategy can be found in
» Position - What does the BMW Group stand for?, » Direction –What drives the
BMW Group?, » Strategic approach –Where is the BMW Group heading? and
» Collaboration –How does the BMW Group achieve this?.
Only in certain cases do material impacts arise out of the
BMW Group’s strategy and its business model. They arise pri-
marily from the business activities and relationships of the BMW
Group. This applies particularly to material impacts in the up-
stream and downstream value chain. The chapters » Position -
What does the BMW Group stand for?, » Direction –What drives the
BMW Group?, » Strategic approach –Where is the BMW Group heading? and
» Collaboration –How does the BMW Group achieve this? discuss the key
strategic priorities and areas of focus relating to material im-
pacts, risks and opportunities. The BMW Group directly and indi-
rectly generates greenhouse gas emissions worldwide through
upstream processes, the procurement and processing of raw
materials, products and services for development and produc-
tion, and the supply and use of its own products and services. By
offering electrified vehicles (BEV, PHEV, FCEV) and expanding
the use of cost-effective CO2e-free energy, including through
PPAs, the BMW Group is contributing to progressive decarboni-
sation ↗ Position – What does the BMW Group stand for?. Strategic
measures to reduce direct and indirect greenhouse gas emis-
sions worldwide may necessitate adjustments within the supply
chain and exert pressure on suppliers to adapt.
The circular economy is a key component of the BMW Group’s
strategy. Incorporating the principles of the circular economy into
business models and products may be an important step to-
wards reducing the use of natural and limited resources. Reduc-
ing the use of primary materials contributes to the reduction of
CO2 emissions and the preservation of biodiversity, and mitigates
the impacts on the environment and society that are associated
with the extraction and processing of primary materials. For
these reasons, the BMW Group is taking further steps to increase
the proportion of recycled materials in its products » Strategic
approach – Where is the BMW Group heading?.
With regard to its own workforce, diversity is an important ele-
ment of the BMW Group’s competitiveness. The proportion of
women in management positions is a strategic target variable.
The BMW Group consistently supports its employees to acquire
new professional qualifications and to achieve their personal de-
velopment goals. The BMW Group supports the training and fur-
ther education of its employees and helps them to remain pro-
ductive by providing initial and further training at all locations
» Collaboration – How does the BMW Group achieve this?, ↗ Own workforce.
All other material impacts identified do not arise from the strat-
egy or business model of the BMW Group and also do not have
a material effect on their future development. » The BMW Group
Strategy
Strengthening the resilience of its strategy and business model
in terms of managing material impacts and risks and making use
of material opportunities is a key concern of the BMW Group.
Therefore, it is important to recognise changes in the environ-
ment early on, consider alternative development scenarios, ef-
fectively manage risks and take advantage of opportunities that
may arise from such changes » Risks and Opportunities. For this rea-
son, the resilience analysis is conducted across the organisation
and includes all topics of relevance to the BMW Group. This also
includes sustainability topics and related risks and opportunities.
A regularly updated analysis of the environment based on se-
lected and relevant topics also forms the basis for this
» Environmental Analysis. This also includes an assessment of politi-
cal and regulatory framework conditions » Economy, » Politics.
The BMW Group aims to reduce the influence of exogenous fac-
tors, particularly those related to sustainability, by expanding the
resilience of its global supply chains. » Expanding resilient supply
chains, » Purchasing battery cells. Forward-looking risk management
helps to strengthen the resilience of the supplier network. » Risk
management in purchasing. Digitalisation across the entire supply
chain provides the basis for sustainable and resilient supply
chain management. » Digitalisation in the supply chain.
The resilience analysis relating to biodiversity and ecosystems is
discussed in ↗ Resilience analysis.
Current financial effects of material risks and opportunities
Competition in the electrified vehicle market intensified in the re-
porting year. The financial effects of this development are dis-
cussed in » Earnings Performance of the BMW Group.
Regulatory restrictions mean that certain energy sources, such
as biogas, can no longer be used for emission reduction
measures. Hedging activities ensured that financial effects for
the BMW Group were completely avoided.
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Other Information
Sustainability Statement
No material risks or opportunities have been identified for which
there is a significant probability of occurrence in 2025 that would
result in a material adjustment to the carrying amounts of the as-
sets and liabilities recognised in the corresponding financial
statements.
STAKEHOLDER ENGAGEMENT
The BMW Group attaches great importance to regular, frank and
transparent dialogue with its stakeholders. The goal is to build
trust, increase transparency and awareness, and facilitate the
transfer of knowledge by providing information and opportunities
for dialogue.
To this end, the Company revised its ↗ Stakeholder Engagement Policy
in 2024, and in doing so also reviewed and redefined its key
stakeholders. A distinction is made between affected stakehold-
ers and users of sustainability statements. In addition, the indi-
vidual stakeholders are summarised in stakeholder groups.
Stakeholders are affected directly or indirectly by our business
activities, while users of sustainability statements mainly include
consumers of general reporting – for example, investors or busi-
ness partners.
The BMW Group promotes the exchange of ideas and infor-
mation with stakeholders in all of its business activities and main-
tains an ongoing dialogue with them in individual discussions, at
conferences, or in response to specific queries. Material sustain-
ability-related topics such as climate change, biodiversity or the
transition to a circular economy, as well as working conditions in
their own business area or other employee-related topics, are
also discussed. The form of engagement taken depends on the
initial situation. In addition to specific dialogues and interactions
with stakeholders, for example during London Climate Week, the
BMW Group also regularly participates in public and political dis-
cussions and engages in intensive dialogue with capital market
participants. This approach helps to establish lasting relation-
ships, to inform the BMW Group about its impacts on (affected)
stakeholders and to enhance processes for future stakeholder
engagement activities. Incorporating a range of external view-
points and expectations helps further develop the strategy » The
BMW Group Strategy and promotes the innovative strength of the
BMW Group.
The BMW Group uses the feedback and results from its stake-
holder engagement in its environmental and trend analyses,
which are in turn incorporated into the development of its
corporate and business department strategies. To this end, the
HR strategy is reviewed annually using a comprehensive internal
and external analysis of the environment and the company, and
adjusted accordingly as and when required. Market research, a
component of the corporate strategy, is conducted in the form of
global surveys to determine customer needs and expectations.
The findings from these and other surveys and analyses, includ-
ing input from experts, form the basis for strategic recommenda-
tions for the entire Company, individual departments and
BMW Group brands.
The Board of Management keeps itself regularly informed at its
meetings on feedback from stakeholders and their views, either
by means of separate documents or via direct dialogue with
stakeholders such as investors or political decision makers. Brief-
ings by in-house departments supplement the information pro-
vided to the Board of Management, especially before attending
major events such as OECD conferences or Annual General
Meetings. The Chairman of the Supervisory Board of BMW AG
also maintains regular contact with stakeholders. Moreover, the
members of the Supervisory Board of BMW AG attend the An-
nual General Meeting of BMW AG, and also interact with stake-
holders as part of their other activities and mandates.
The BMW Group also takes account of its most important exter-
nal stakeholders in its materiality assessment. For further infor-
mation, see ↗ Procedure and methodological basis for the materiality
assessment.
As one of its most important stakeholder groups, the
BMW Group’s workforce plays an active role in shaping the Com-
pany’s future direction. The BMW Group conducts a company-
wide employee survey every two years to measure the perfor-
mance of the organisation and the general mood among its
workforce. Employees also have a key opportunity to participate
through the company ideas management system, which can be
used to submit ideas outside of their area of responsibility. The
due diligence processes for respecting human rights and related
environmental standards apply to our own business, our suppli-
ers, and our other business partners. ↗ Collective bargaining coverage
and social dialogue
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Likewise, the BMW Group works either directly with the affected
communities or with their local representatives. For example, lo-
cal stakeholders are closely involved in the planning of the new
assembly plant for high-voltage batteries in Irlbach-Strasskir-
chen. Through a variety of measures, the Company has created
transparency and opportunities for dialogue and has therefore
attached great importance to taking the interests of local resi-
dents and communities fully into account and working together
to find a solution. In addition, BMW Group locations have desig-
nated contacts who are responsible for maintaining relations
with local stakeholders. They serve as the first point of contact
between the Company and its neighbours. Maintaining an ongo-
ing dialogue with civil society, affected communities and other
relevant stakeholders in the supply chain is another key compo-
nent in our approach to dealing with critical raw materials. The
↗ BMW Group Supplier Code of Conduct stipulates that affected (local)
communities, and indigenous peoples especially, must also be
taken into account and protected across the supply chain. As part
of the responsible management of raw materials and with a view
to mitigating social impacts, specific areas of focus have been
identified that, for example, justify local involvement. To help en-
sure compliance with social and environmental standards, we
have put due diligence processes in place, both across the or-
ganisation and in our relationships with suppliers and other busi-
ness partners. The Purchasing and Supplier Network depart-
ment is responsible for developing the procedures and imple-
menting due diligence processes in the supply chain. In 2024,
this responsibility was firmly embedded in our purchasing strat-
egy and strengthened by the establishment of a dedicated de-
partment. ↗ Social and Environmental Responsibility in the Supplier Network
The BMW Group stays abreast of the latest scientific findings
and, to this end, engages in a targeted dialogue with scientists
about sustainability targets in a range of different formats. The
International Sustainable Mobility Research Platform (ISMO) is
an international research partnership established in 2024. In ad-
dition to the BMW Group, it includes four internationally re-
nowned universities: the University of Cambridge in the UK, the
Friedrich-Alexander-Universität Erlangen-Nürnberg in Germany,
Harvard University in the USA, and Tsinghua University in China.
The objective of the collaboration is to conduct research into sus-
tainability and develop scientifically sound approaches that will
help develop our strategy. The Board of Management of
BMW AG plays an active role in the partnership and will be in-
volved in discussing the research results twice a year from 2025.
The first meeting took place in 2024. The ISMO makes a signif-
icant contribution by keeping management informed about im-
portant changes in the operating environment and supporting
the development of business strategies in line with the latest sci-
entific insights.
The BMW Group is also actively engaged in both industry-spe-
cific and cross-industry initiatives. These include the Branchen-
dialog Automobilindustrie, the Supply Chain Sustainability Work-
ing Group of the German Association of the Automotive Industry
(VDA), the Responsible Business Alliance (RBA), and Drive Sus-
tainability. Some of these are multi-stakeholder initiatives involv-
ing companies as well as trade unions and NGOs that represent
the interests of value chain workers. The BMW Group’s involve-
ment in these initiatives is ongoing. The BMW Group is involved
in RBA Voices, a standardised, cross-industry grievance mecha-
nism available for download from the Apple App Store and the
Google Play Store.
All stakeholders - from customers to scientists to affected com-
munities – have the opportunity to connect with the BMW Group
through various communication channels. In addition to using
the Group’s main email addresses, stakeholders can report com-
pliance-related concerns through the ↗ BMW Group Compliance
Contact or the ↗ BMW Group SpeakUP Line. The BMW Group SpeakUP
Line can be reached in all countries in which BMW Group em-
ployees work via local, toll-free telephone numbers in more than
30 languages. All reports received by the BMW Group through
these communication channels are carefully reviewed in compli-
ance with applicable regulations. In particular, the BMW Group
observes the prohibition on penalising whistleblowers acting in
good faith.
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Dummy 2
Politics
Media
Networks
Civil society
Suppliers
Dummy 1
Dummy 2
Dummy 3
Employees
Partners
Financial world
Customers
Science
Stakeholder groups and exemplary forms of dialogue
* Affected stakeholders.
BMW Group in
dialogue
Supplier theme days
BMW Group award for social responsibility
Participation of company experts in committees and working
groups, memberships in initiatives and associations
Trade fairs/ press conferences, press information/
press releases, presentations
Discussions with consumer bodies,
customer satisfaction surveys and market research
(e.g. Corporate Reputation Study), My BMW App
Conferences for/with investors and analysts,
financial statement press conference
Various dialogue formats
Internal communication, dialogues with managers,
idea management process, employee survey, BMW Group
Academy, works council meeting, collective agreements and
employment contracts with trade unions
Dialogues with dealership organizations of the markets and
importers, partner academy
Discussion rounds/ round tables, working groups/mobility council,
association meeting
Lectures at and cooperation with schools and universities/chairs,
mobility council, ISMO
Dialogue tools for all stakeholder groups:
Dialogues, one-to-one meetings,
BMW Welt/BMW museum/plant tours,
events, general meeting
press releases, company website,
brand website, Social Media, rankings,
conferences, industry/sector dialogues, studies
Speak-up Hotline,
policies und statements, quarterly and annual report
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PRINCIPLES OF GOVERNANCE BY THE
BOARD OF MANAGEMENT AND
SUPERVISORY BOARD
BMW AG is a stock corporation (Aktiengesellschaft) within the
meaning of the German Stock Corporation Act. It has an execu-
tive Board of Management and a Supervisory Board that moni-
tors how the Company is managed by the Board of Manage-
ment.
Board of Management – Duties, diversity, expertise
The Board of Management has overall responsibility for the
management of BMW AG. It defines the strategy and resource
framework and takes actions to implement the strategy. The
Board of Management decides on product and customer-related
issues of particular importance and consequence to the BMW
Group, as well as on automobile product strategy. The Board of
Management incorporates various sustainability matters into the
decisions taken at its meetings and addresses the material im-
pacts, risks and opportunities associated with the Company’s
course of business. It also monitors the key sustainability-related
indicators and targets as well as department-specific sustaina-
bility activities and developments. Details are available in the
↗ Rules of Procedure of the Board of Management of BMW AG.
As at 31 December 2024, 14% of the seven members of the
Board of Management were female and 86% were male based
on the composition principles and taking into account the ESRS
reporting obligations.
In addition to the overall responsibility of the Board of Manage-
ment, each member of the Board of Management is inde-
pendently responsible for the material impacts, risks and oppor-
tunities in their respective department.
To ensure that the Board of Management has the necessary
level of competence and diversity, the Supervisory Board has
adopted a competency and diversity policy for the composition of
the Board of Management, which is also aligned with the recom-
mendations contained in the German Corporate Governance
Code (DCGK). In view of the fact that the Board of Management
is a representative body of the Company, the Supervisory Board
is careful to consider diversity-related issues when assessing
which candidates are most suitable for a seat on the Board of
Management. “Diversity” in the context of the decision-making
process is understood by the Supervisory Board to encompass
various complementary individual profiles and work and life ex-
periences at both national and international level, as well as the
appropriate representation of genders. In reaching its decisions,
the Supervisory Board also considers the following factors:
—
Board of Management members need to have a long-
standing track record of management experience, ideally in
a variety of professional fields. An adequate mix of different
professional and management skills is sought here.
—
At least two members should have international manage-
ment experience.
—
At least two members of the Board of Management should
have a technical background.
—
Collectively, the Board of Management should have exten-
sive experience in the fields of individual mobility, develop-
ment, production, sales, finances and personnel manage-
ment.
The Board of Management must comprise at least one man and
one woman. The Board of Management deals with the impacts,
risks and opportunities arising from business development on a
continuous basis. In addition to addressing reports related to the
latest business developments, the Board of Management regu-
larly discusses the current market environment, financial and
non-financial risks, the Group risk strategy and the effectiveness
of the risk management system and the internal control system.
The Board of Management also deals with the development of
the workforce, diversity, and ongoing qualification and retraining
measures several times a year as part of the transformation pro-
cess ↗ Just Transition - Developing expertise for the future. The Board of
Management is kept up to date about ongoing compliance activ-
ities and potential risks at regular intervals via the Chief Compli-
ance Officer’s compliance reports. In addition to discussing the
audit results regarding the appropriateness and effectiveness of
the Compliance Management System (CMS), the Board of Man-
agement also discusses the structural and organisational devel-
opment of the Group Compliance Management System (CMS)
and the implementation status of corporate due diligence re-
quirements relating to respect for human rights and associated
environmental standards along the value chain. In addition, the
Board of Management holds regular discussions on the pro-
cesses and actions involved in implementing new regulatory re-
quirements and ensuring compliance with external reporting re-
quirements in the area of sustainability, including the extent to
which CSRD/ESRS requirements have been implemented.
Sustainability considerations are therefore integrated into the
BMW Group’s corporate structures and processes in a compre-
hensive and holistic manner which involves decision makers at
various levels. A decentralised approach is taken to integrate the
Company’s strategic objectives. Defined specialist functions in
each of the Board departments are responsible for anchoring the
targets within the respective organisational structure, measuring
their achievement, and ensuring compliance with the strategy.
The strategy is translated into an annually revised, long-term
corporate plan using a control loop-based planning and man-
agement system. A target system monitors their progress, and
reports on the targets and performance indicators agreed for the
reporting year are submitted to the Board of Management and
Supervisory Board on a regular basis. The Board of Manage-
ment defines the BMW Group’s strategic objectives related to the
sustainability topics. The Sustainability and Mobility function en-
sures the high level management of sustainability topics as part
of the Group strategy. It identifies areas where the Company po-
tentially needs to take action, defines the targets to be achieved,
and prepares corresponding resolutions to the Board of Man-
agement. The function is also responsible for ensuring that sus-
tainability issues and all relevant material impacts, risks and op-
portunities are considered in all material decisions made by the
Company, including at the level of the Board of Management.
This includes significant transactions. The function submits pro-
gress reports on the BMW Group’s overarching sustainability tar-
gets to the Board of Management at least three times a year. The
targets and measures with regard to reducing CO2e emissions in
all scopes, the circular economy, environmental and social stand-
ards and social sustainability are presented, and the strategic
and operational implementation status is discussed. When tar-
gets are not met, suitable actions are discussed and approved if
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
necessary. In addition, the Board of Management and the Super-
visory Board regularly discuss the further development of the
various key topics from the sustainability strategy. The identified
material impacts, risks and opportunities are also taken into con-
sideration. Even though these discussions are informative in na-
ture, they also include decision papers, each orientated towards
current thematic developments. The results of the materiality as-
sessment, including the material impacts, risks and opportuni-
ties, are presented to the Board of Management by the Group
Reporting function for discussion. ↗ Materiality Assessment, ↗ List of
material Impacts, Risks and Opportunities. Material impacts, risks and
opportunities are also discussed by the Board of Management
on a regular basis when updating the environmental analysis.
The Board of Management sets the organisational, structural
and content-related framework for business conduct, ensures
that it is dovetailed with and integrated into the Company’s man-
agement and governance systems, and receives reports on their
implementation. This is also true for the topics of Combating cor-
ruption and bribery and Political engagement and lobbying activ-
ities ↗ Governance Information. The Supervisory Board receives re-
ports on business conduct as part of its monitoring activities.
In addition, the Board of Management of BMW AG has estab-
lished the following committees with the participation of Board of
Management members to address selected topics of particular
importance in greater depth and across departments:
—
The Board of Management’s Digitalisation Committee
(VA-D): The VA-D advises and makes cross-departmental
decisions on all material issues related to improving and dig-
italising the BMW Group’s corporate processes, and thereby
makes a decisive contribution to ensuring that the Group’s
performance is guided by its strategy. In this context, the
VA-D deals with overarching IT projects, IT platforms and IT
initiatives, in addition to process-specific and digital perfor-
mance levers and key performance indicators (KPIs). The
VA-D also consistently addresses obstacles to transfor-
mation within the Company and defines the transformation
focus, timing and resources, as well as the financial control
model for platforms/data. Moreover, the VA-D is responsi-
ble for prioritising/financing innovations in the area of digi-
talisation as well as strategic recruiting measures and qual-
ification programmes to ensure our employees have rele-
vant skills.
—
The Board of Management’s Senior Executives Committee
(VA-F): The VA-F deals with issues affecting managers of
the BMW Group, either in their entirety or individually, such
as the management structure, employees with particularly
high levels of potential, and the appointment of senior exec-
utives (OFK). The relevant specialist functions present infor-
mation about general HR-related issues and developments
to the VA-F so that the future direction of the Company’s
personnel can be set as early as possible. In this context, the
VA-F can act as a decision-making body, issue advice, make
recommendations, or act in a preparatory function, depend-
ing on the circumstances.
—
The Board of Management’s Operations Committee
(VA-O): The VA-O provides advice and makes cross-depart-
mental decisions related to automobile product projects fol-
lowing confirmation by the Board of Management. In this
context, the VA-O deals with the operational implementa-
tion of vehicle projects, strategic modules from the develop-
ment process to the start of production/market launch, on-
going series production and further development. In addi-
tion, the VA-O monitors the objectives set for focus and
quality topics for automobile product projects and shapes
the procedural framework for its area of responsibility across
departments.
Experience
(Access to) expertise
In relevant markets
In relevant areas of competence
Sustainability
Europe
Individual mobility
Climate change
US
Corporate strategy
Pollution
China
Technologies
Water and marine resources
Other
Production
Biodiversity and ecosystems
Sales
Circular economy and resource use
Finance
Own workforce
Personnel management
Workers in the value chain
Digitalisation
Consumers and end-users
Supply chain
Business conduct
Development
Skills matrix Board of Management
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
In December 2024, members of the Board of Management were
surveyed for the first time on their specific sustainability skills re-
lating to the key sustainability topics. The skills matrix for the
Board of Management provides an overview of its sustainability-
related expertise. This covers all sustainability topics for which
material impacts, risks and opportunities were identified in the
↗ Materiality Assessment. Responsibility for completing the question-
naires lies with each individual member of the Board of Manage-
ment. The Legal, Patents and Group Compliance Management
department of BMW AG verifies the plausibility of the information
provided by the members of the Board of Management.
If it transpires that the Board of Management does not have its
own detailed expertise in certain areas, it can draw directly on the
expertise and experience of the relevant departments that have
knowledge of the material sustainability matters. The Board of
Management is also permitted to use external resources such as
training courses and experts at any time. Reviews are performed
on a regular basis to ensure the availability of relevant expertise
and necessary skills. If necessary, structural adjustments are
made and relevant expertise is added or deepened.
The skills matrix also indicates the experience of the Board of
Management that is of relevance given the BMW Group’s sec-
tors, products and geographical locations.
Supervisory Board - Composition, diversity, expertise
BMW AG’s Supervisory Board is composed of ten shareholder
representatives (elected by the Annual General Meeting) and ten
employee representatives (elected in accordance with the Ger-
man Co-Determination Act). In the event of an early departure
from the Board – for example, if a member resigns – the respon-
sible court will appoint a new member of the Supervisory Board
for the remainder of the term of office on request. The Supervi-
sory Board members representing employees comprise seven
Company employees, including one senior executive staff repre-
sentative, and three members elected following nomination by
trade unions.
The DCGK recommends that more than half of the shareholder
representatives should be independent, i.e. independent of the
Company and its Board of Management, as well as of a control-
ling shareholder. To be independent, a member of the Supervi-
sory Board cannot have any personal or business relationship
with the Company or its Board of Management that could give
rise to a material and lasting conflict of interest. Eight of the ten
shareholder representatives (80%) on the Supervisory Board of
BMW AG are classified as independent.
The Supervisory Board must be composed in such a way that its
members collectively possess the knowledge, skills and experi-
ence required to perform its tasks in a proper manner. To this
end, BMW AG’s Supervisory Board passes annual resolutions
specifying objectives regarding its composition, including a com-
petency profile and a diversity policy.
—
The Supervisory Board is required to include at least six in-
dependent shareholder representatives within the meaning
of the recommendations of the GCGC.
—
The chairs of the Supervisory Board, the Audit Committee
and the Personnel Committee – which is involved in prepar-
ing decisions on Board of Management remuneration –
should be independent of BMW AG and of the Board of
Management. The chairperson of the Supervisory Board
may not serve as the chair of the Audit Committee.
—
When seeking suitably qualified individuals for the Supervi-
sory Board whose specialist skills and leadership qualities
are most likely to be an asset to the Board as a whole, con-
sideration also needs to be given to diversity. When prepar-
ing nominations, the extent to which the work of the Super-
visory Board will benefit from diverse professional and per-
sonal backgrounds (including international experience) and
appropriate gender representation should be considered on
a case-by-case basis. It is the joint responsibility of all those
participating in the nomination and election process to en-
sure that qualified women are considered for Supervisory
Board membership.
—
If possible, the Supervisory Board should have at least four
members that have international experience or specialised
knowledge of one or more non-German markets important
to the BMW Group.
—
Furthermore, if possible, the Supervisory Board should in-
clude seven members who have in-depth knowledge and
experience within the BMW Group, no more than two of
whom may be former members of the Board of Manage-
ment.
—
Three members of the Supervisory Board should preferably
have previous experience in the management or supervision
of another medium-sized or large company.
—
The Supervisory Board should ideally have expertise in the
areas relevant to the Company, namely corporate strategy,
technology, purchasing/supply chains, production/manu-
facturing, sales/customer needs, finance/accounting/audit-
ing, capital markets, individual mobility, human re-
sources/personnel management, compliance, IT/digitalisa-
tion/artificial intelligence, change management/business
transformation. Each member of the Supervisory Board
should have expertise in at least one of these areas.
—
Three members of the Supervisory Board should preferably
have expertise in the sustainability issues that are of key im-
portance to the Company.
The gender ratio on the Supervisory Board is in line with statu-
tory requirements. Since the Act on Equal Participation of
Women and Men in Management Positions in the Private and the
Public Sector (“Act on Equal Gender Participation”) came into ef-
fect in 2016, a minimum of 30% of the members of the Super-
visory Board of BMW AG have been female and a maximum of
70% have been male. Female members made up 30% of the
Supervisory Board at the end of 2024.
BMW AG surveys the members of the Supervisory Board on an
annual basis regarding their individual skills and expertise. BMW
AG began surveying the members of the Supervisory Board in
2022 to determine their experience in the areas of relevance to
the BMW Group on the basis of the DCGK. The results of the sur-
vey are published in the form of a matrix. This survey includes
questions about expertise in the areas of environmental and so-
cial sustainability.
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
December 2024 marked the first time that Supervisory Board
members were asked about their specific sustainability expertise
in the sustainability matters of relevance to the Company within
the meaning of the ESRS. The results of the survey and the ex-
perience of Supervisory Board members in relation to the sec-
tors, products and geographical locations that are material for
the BMW Group are shown in the matrix below. The sustainabil-
ity-related expertise of the Supervisory Board, including access
to such expertise, covers all of the sustainability topics for which
material impacts, risks and opportunities were identified in the
↗ Materiality Assessment.
Responsibility for completing the questionnaires in accordance
with the GCGC and ESRS lies with each individual member of the
Supervisory Board. The Legal Affairs, Patents, Group Compli-
ance Management department of BMW AG verifies the plausibil-
ity of the information provided by respondents.
The experience and expertise of the Supervisory Board members
regarding key aspects of corporate policy and their expertise re-
lated to the sustainability matters of relevance to the Company
are primarily derived from their professional training or academic
education, their main professional roles, and management or su-
pervisory mandates at other companies. They are also able to
access expertise of this nature through training sessions, expert
consultations, and specialized articles.
BMW AG provides training events for the members of the Super-
visory Board on a regular basis. This training regularly covers
sustainability matters. In 2023, training topics included an in-
depth exploration of electromobility and hydrogen technology, an
update on non-financial reporting and the EU Taxonomy, and a
detailed discussion of processes for implementing carbon reduc-
tion targets in the supply chain. In 2024, the circular economy
was a focus topic. During a tour of the Tiexi plant on a trip to
China in June 2024, Supervisory Board members received an
overview of the production footprint. The circular economy was
also highlighted in a presentation by an external speaker at
Tsinghua University in Beijing. A guided tour of the BMW Group’s
Cell Manufacturing Competence Centre in Parsdorf near Munich
gave the members a deeper insight into battery production and
technology. Following the election of a new Supervisory Board
member, the BMW Legal Affairs, Patents, Group Compliance
Management department informs the new member of the prin-
cipal legal issues affecting their duties as well as corporate gov-
ernance aspects. Moreover, the organisation submits various
onboarding plans to introduce new members to topics that are
important for the work of the Supervisory Board. The introduction
to the corporate strategy provided to members of the Supervi-
sory Board covers the strategic approach to material sustainabil-
ity topics.
Supervisory board – Duties and committees
The Supervisory Board monitors the activities of the Board of
Management and advises the Board of Management on im-
portant matters relating to the management and the strategic
development of the Group. Sustainability issues and their asso-
ciated material impacts, risks and opportunities are of key im-
portance to the Supervisory Board.
—
At each of its meetings, the Board of Management pre-
sents the material impacts, risks and opportunities re-
lated to the latest business developments in its report
on the current business situation.
—
The Supervisory Board monitors significant selected
material impacts, risks and opportunities of the Board of
Management’s plans as part of its handling of the cor-
porate strategy, long-term corporate planning, taking
into account sustainability matters, in particular environ-
mental and social aspects and objectives, and the
Experience
(Access to) expertise
In relevant markets
In relevant areas of competence
Sustainability
Europe
Individual mobility
Climate change
US
Corporate strategy
Pollution
China
Technologies
Water and marine resources
Other
Production
Biodiversity and ecosystems
Sales
Circular economy and resource use
Finance
Own workforce
Personnel management
Workers in the value chain
Digitalisation
Consumers and end-users
Supply chain
Business conduct
Skills matrix Supervisory Board
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
planning of business development for the following fi-
nancial year. The Supervisory Board addresses all stra-
tegically significant plans, transactions and measures
for the Group, especially if these fundamentally change
the Group’s prospects for success or risk position. The
results of the materiality assessment are presented to
the Supervisory Board by the Member of the Board of
Management responsible for Finance
↗ Materiality
Assessment. The approval of the Supervisory Board is re-
quired for material changes to the corporate and prod-
uct strategy as well as important transactions that are of
fundamental strategic importance. Long-term corporate
planning and business development planning for the
upcoming financial year are submitted to the Supervi-
sory Board on an annual basis for approval.
—
In the annual risk report, the Board of Management pro-
vides the Supervisory Board with a detailed overview of
the current risk situation, as well as the risk manage-
ment system and risk strategy. This includes sustaina-
bility matters.
In accordance with its rules of procedure, the Supervisory Board
of BMW AG has a number of committees with different duties
(see in particular the ↗ Rules of Procedure of the Supervisory Board of
BMW AG). Sustainability topics play an integral part in this struc-
ture.
In the 2024 financial year, the Supervisory Board had a Presid-
ing Board and four committees, namely the Personnel Commit-
tee, the Audit Committee, the Nomination Committee and the
Mediation Committee.
The Supervisory Board passed a resolution to restructure its
committees and implemented the resolution on 1 January 2025.
Instead of the Personnel Committee a Remuneration Committee
was created, which focuses exclusively on the remuneration of
the Board of Management and the Supervisory Board. The Pre-
siding Board was transferred to a Presiding Committee, which,
in
addition
to
preparing
Supervisory
Board
meetings,
addresses non-remuneration-related personnel matters. The
Remuneration Committee has seven members, strengthening
both its independence and its diversity.
As the report on the activities of the Supervisory Board and its
committees primarily focuses on the 2024 financial year, the fol-
lowing disclosures are based on the committee structure that
was in place in 2024.
The committees are involved as follows in the monitoring of ma-
terial impacts, risks and opportunities:
—
The Presiding Board prepares the Supervisory Board meet-
ings, assuming the subject matter to be discussed does not
fall within the remit of any of the Committees. This includes
preparatory work on the following topics and their associ-
ated impacts, risks and opportunities, including sustainabil-
ity matters: corporate strategy, long-term corporate plan-
ning and business development planning for the following
financial year; changes related to corporate governance;
and the declaration of compliance with the recommenda-
tions of the DCGK in accordance with § 161 of the German
Stock Corporation Act .
—
The Audit Committee reviews the financial reporting and
oversees the financial reporting process, including reporting
on sustainability matters. It prepares the Supervisory
Board’s resolution relating to the Company and Group Fi-
nancial Statements, and discusses the combined manage-
ment report and the Sustainability Statement with the Board
of Management. The Committee also reviews interim re-
ports with the Board of Management before their publica-
tion. Moreover, the Audit Committee is responsible for over-
seeing the external audit. In connection with the Company’s
and the Group’s sustainability reporting, the Audit Commit-
tee prepares the internal audit for the Supervisory Board,
decides on an external audit and commissions an external
auditor. The Audit Committee is responsible for monitoring
the effectiveness of the internal control system, including the
internal audit system and the internal Compliance Manage-
ment System, as well as the internal risk management sys-
tem, and is therefore deeply involved in monitoring material
impacts, risks and opportunities. The Committee receives
detailed reports every six months on risk management and
risk strategy, the current risk situation, and the extent to
which the risk cover funds have been utilised. ESG risks are
included in these reports. The Chief Compliance Officer re-
ports to the Audit Committee on compliance matters and
changes to the Compliance Management System twice a
year while taking the Board of Management’s due diligence
responsibilities into consideration. He also reports to the Su-
pervisory Board once a year.
—
The Personnel Committee prepares decisions with regard to
the appointment and, where applicable, revocation of the
appointment of members of the Board of Management. Its
preparatory activities also extend to remuneration of the
Board of Management and regular review of the remunera-
tion system for the Board of Management in light of sustain-
ability targets. The Personnel Committee also monitors the
extent to which the targets established in this area have
been achieved.
—
The Nomination Committee prepares election proposals for
shareholder representatives on the Supervisory Board for
the Annual General Meeting while taking the objectives re-
garding its composition into account, as outlined in
↗ Supervisory Board - Composition, diversity, expertise.
Over the course of the 2024 financial year, the Presiding Board
and the Supervisory Board addressed sustainability matters,
with a particular focus on the progress being made in electromo-
bility and the prospects for hydrogen technology and the circular
economy. A report to the Presiding Board and Supervisory Board
at the end of the year addressed key strategic personnel topics
and the status of diversity in the Company. The Audit Committee
explored the responsible use of water, along with the associated
material impacts, risks and opportunities.
Every September, the Supervisory Board receives a report from
the Chairman of the Board of Management and the Board of
Management member responsible for Finance on the extent to
which key ESG targets have been achieved. These include tar-
gets for reducing carbon emissions, the proportion of all-electric
vehicles to total deliveries, the fulfilment of sustainability
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Group Financial Statements
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Remuneration Report
Other Information
Sustainability Statement
requirements by suppliers, the proportion of women in manage-
ment positions, and the amount of spending on employee train-
ing and development. The Audit Committee accords special at-
tention to the audit of the non-financial statement. The achieve-
ment of material ESG targets is also discussed as part of the re-
porting on the annual and Group Financial Statements. These
are also part of the remuneration system for the Board of Man-
agement. The Board of Management’s remuneration targets for
each year are set in December of the previous year. A meeting is
held in March to review the extent to which the targets for the
past financial year have been achieved and to pass a resolution
on the Board of Management’s remuneration.
Information about the Company’s Governing Constitution is pro-
vided in the ↗ Corporate Governance Statement. This is prepared by the
Presiding Board and is adopted by resolution of the Supervisory
Board.
REMUNERATION OF THE BOARD OF
MANAGEMENT AND SUPERVISORY
BOARD
Board of Management
The total remuneration provided to the members of the Board of
Management consists of fixed and variable components. The
fixed, non-performance-related remuneration comprises the
base salary, fringe benefits and contributions to the company
pension scheme. The variable remuneration consists of the bo-
nus and the long-term share-based remuneration. Variable re-
muneration accounts for 58-66% of the total target remunera-
tion. At 100% target achievement, the bonus accounts for 27-
30% of the total target remuneration, while the share-based re-
muneration accounts for 31-36%.
Overview of total target remuneration for members of the
Board of Management1
1 The remuneration structure as defined in the remuneration system for total target remuneration is
depicted.
2 Excluding a possible payment to new members of the Board of Management to compensate for
salary losses from a previous employment relationship and/or to cover relocation costs.
The bonus consists of an earnings component and a perfor-
mance component. If 100% of the target is achieved for both the
performance and the earnings component, the share of the bo-
nus attached to each component is 50% of the individual target
amount of the bonus. The earnings component of the bonus re-
wards the performance of the business in the vesting year, as
measured by financial indicators. The performance component
of the bonus rewards the achievement of certain non-financial
performance criteria defined by the Supervisory Board. These
criteria are divided into individual targets for the individual mem-
bers of the Board of Management (departmental targets) and
collective targets for the entire Board of Management (interde-
partmental targets). Departmental targets account for 10% of
the target amount for the performance component, with interde-
partmental targets accounting for the remaining 90%. The inter-
departmental targets include sustainability-related performance
criteria and other non-financial criteria. With regard to the inter-
departmental targets, 50% of the weighting is for sustainability-
related targets, and 40% is for other non-financial targets, in
each case in relation to the target amount of the performance
component of the bonus. As part of the share-based remunera-
tion as a variable long-term component of remuneration, the
members of the Board of Management receive a cash payment
earmarked for investment (the “personal cash investment
amount”). The amount depends on the target achievement level
for a financial indicator (return on capital employed (RoCE) in the
Automotive Segment) and for defined non-financial indicators
(“strategic focus targets”) in the vesting year. If 100% of the tar-
get is achieved, the RoCE component and the strategic focus tar-
gets component each account for 50% of the individual target
amount.
The remuneration system also provides for sustainability-related
matters to be assessed for the purposes of the variable remuner-
ation component. As part of the performance component of the
bonus, at least 50% of the target amount is dependent on sus-
tainability-related targets that have been defined as interdepart-
mental targets. These may include targets relating to resource-
efficient and climate-friendly products, gender diversity, em-
ployee satisfaction and reputation. The Supervisory Board de-
cides which indicators are used to assess performance against
each criterion before the start of the financial year. Sustainability-
related indicators may be related to measures such as the reduc-
tion of CO2e emissions or further training. Performance criteria
for the reporting year are environmental innovation performance
(indicators: proportion of all deliveries accounted for by electrified
vehicles and proportion of all deliveries accounted for by all-
Variable
Remuneration
58-66%
Base salary
25-30%
Contributions
Retirement
benefits
7-12%
Fringe benefits²
1-4%
Bonus
27-30%
Share-based
Remuneration
31-36%
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
electric vehicles), reputation (indicator: Corporate Reputation In-
dex), adaptability (indicators: Sustainability index and spending
on employee training and development) and attractiveness as an
employer (indicator: placement in rankings). Also taken into ac-
count are leadership performance (indicator: assessment of
management performance) and the achievement of diversity tar-
gets (indicator: diversity targets), as well as preventive activities
in ensuring compliance (indicator: actions taken to strengthen
compliance). In terms of the share-based remuneration, the Su-
pervisory Board adopts strategic focus targets each year. Some
or all of these may be related to sustainability matters. Strategic
focus targets for the reporting year were the reduction of carbon
fleet emissions (EU) and sales of all-electric vehicles (BEV).
The remuneration system stipulates that at least 50% of the per-
formance component of the bonus is dependent on sustainabil-
ity-related matters. In relation to the total variable target remu-
neration, the proportion is around 12%. Depending on the spe-
cific annual targets for the individual departmental targets of the
performance component of the bonus and for the strategic focus
targets of the long-term variable remuneration component, the
proportion of the variable target remuneration that is dependent
on sustainability-related aspects can be as high as around 41%
of the variable target remuneration.
The Supervisory Board is responsible for defining and reviewing
the remuneration system of the Board of Management and for
determining the individual remuneration of the members of the
Board of Management. It submits the remuneration system to
the Annual General Meeting for approval in the event of signifi-
cant changes, but at least every four years.
The Supervisory Board adopted the current remuneration sys-
tem for the members of the Board of Management for financial
years starting on or after 1 January 2021 and submitted it to the
Annual General Meeting for approval. The Annual General Meet-
ing approved it on 12 May 2021 with a majority of 91.60% of
the valid votes cast.
The Supervisory Board set climate-related targets for the varia-
ble remuneration of the Board of Management in the 2024 fi-
nancial year. These were related to the reduction of GHG
emissions. Target achievement levels were determined after the
end of the financial year. The climate-related targets for the per-
formance component of the bonus were the performance crite-
rion “environmental innovation performance” based on the indi-
cator of the proportion of electrified and all-electric vehicles sold.
The targets for the long-term variable remuneration were tied to
the reduction of carbon fleet emissions in the EU and global sales
of all-electric vehicles (BEV).
Climate-related remuneration accounted for around 17-18% of
the total remuneration granted and owed for the 2024 financial
year.
Supervisory Board
The regulation governing remuneration for the Supervisory
Board is set out in § 16 of the Articles of Incorporation of
BMW AG, and specifies both the remuneration system to be used
and the precise framework for calculating the remuneration due
to the members of the Supervisory Board.
To ensure that the Supervisory Board monitors and advises the
Board of Management as an independent body, the remunera-
tion of the Supervisory Board is structured as fixed remuneration
plus an attendance fee and is not dependent on sustainability
matters.
The remuneration of the Supervisory Board is determined by the
Annual General Meeting. The regulation currently in effect was
confirmed by the Annual General Meeting on 12 May 2021 with
a majority of 99.40% of the valid votes cast.
INTERNAL CONTROL SYSTEM FOR
SUSTAINABILITY REPORTING
The BMW Group’s Internal Control System (ICS) covers, among
other things, risks and controls relating to sustainability report-
ing. A general description of the ICS, including the aspects of the
system related to sustainability reporting, is provided in » Internal
Control System.
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
STATEMENT ON DUE DILIGENCE
Core elements of Due Diligence
Paragraphs in the sustainability statement
a) Embedding due diligence in governance, strategy
and business model
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
↗ Principles of Governance by the Board of Management and Supervisory Board
↗ Renumeration of the Board of Management and Supervisory Board
b) Engaging with affected stakeholders in all key steps
of the due diligence
↗ Procedure and methodological basis for the materiality assessment
↗ Stakeholder Engagement
↗ Principles of Governance by the Board of Management and Supervisory Board
c) Identifying and assessing adverse impacts
↗ Procedure and methodological basis for the materiality assessment
↗ Climate-related impacts
↗ Impact, risks and opportunities in relation to environmental pollution
↗ Water-related impacts, risks and opportunities
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
d) Taking actions to address those adverse impacts
↗ Transition plan to achieve Net-Zero emissions by 2050
↗ Climate change mitigation and adaptation as a key part of the corporate strategy
↗ Measures for the responsible use of resources
↗ Due Diligence in the supplier network
↗ Responsible raw material management
↗ Measures to protect biodiversity
↗ Health management on a holistic basis
↗ Customer data protection
e) Tracking the effectiveness of these efforts and
communicating
↗ Path to achieving the CO2e reduction targets in 2030
↗ Implemented actions and metrics for a holistic CO2e reduction
↗ Preparing for Net Zero
↗ Greenhouse gas emissions along the entire value chain
↗ Use of an internal carbon price to assess vehicle projects
↗ Reduction of Environmental Pollution
↗ Due Diligence in the supplier network
↗ Health management on a holistic basis
↗ Prevention and care
↗ Qualification
↗ Dealing with the opportunities and risks associated with digitalisation
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Remuneration Report
Other Information
Sustainability Statement
ENVIRONMENTAL INFORMATION
117
Climate Change Mitigation and Adaption
118
Climate resilience of the business model
118
Climate change mitigation and adaptation as a key part of the corporate
strategy
119
Transition plan to achieve Net Zero emissions by 2050
121
Path to achieving the CO2e reduction targets in 2030
122
Implemented actions and metrics for a holistic CO2e reduction
127
Holistic Environmental Management within the BMW Group
128
Energy Efficiency and renewable Energy
129
Energy management
129
Energy targets
130
Efficiency measures and energy mix
131
Reduction of Environmental Pollution
133
Responsible Use of Water Resources
134
Water management and water protection
135
Water consumption in production reduced again
135
Measures to reduce water usage
137
Commitment to protecting Biodiversity
138
Great importance of intact ecosystems
138
Holistic approach to sustainability goals
138
Measures to protect biodiversity
139
Resilience analysis
140
Circular Economy and Resource Use
142
Holistic approach for the transition to a circular economy
142
Milestones along the road to the circular economy
143
Measures for the responsible use of resources
146
Effective waste management
147
EU Taxonomy
CO2 EMISSIONS
EU NEW CAR FLEET
CO2e EMISSIONS SCOPE 1 AND 2
CO2e EMISSIONS SCOPE 3
0.8 million t
130.3 million t
99.5 g/km
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CLIMATE CHANGE MITIGATION AND ADAPTATION
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
By emitting greenhouse gas emissions worldwide through upstream processes, sourcing and procuring raw
material, products and services for the production, development and offering of its own products and services
(Scope 3, Upstream), the BMW Group contributes to climate change.
Negative
Impact
− BMW Group Climate Strategy
− Reduce Scope 1, Scope 2 and
Scope 3 emissions by at least 40
million tonnes CO2e in 2030 com-
pared to 2019 levels
− Production and BMW locations: en-
ergy efficiency measures and in-
creased use of renewable energies
− Supply chain: use of electricity from
renewable sources* and secondary
materials
− Logistics: expanded innovation and
infrastructure management process
for logistics actions
− Use phase: consistent electrification
of the vehicle fleet and efficiency im-
provements for conventional
drivetrains
− Continuous increase in the use of
charging electricity from CO2e-free
generation
By emitting greenhouse gas emissions worldwide through downstream processes, mainly through use of
sold products (Scope 3 downstream), BMW Group contributes to climate change.
Negative
Impact
The BMW Group emits greenhouse gas emissions (GHG) worldwide through processes in own operations
(Scope 1 and 2) and thus contribute to climate change.
Negative
Impact
Worldwide adaptation efforts by the BMW Group may require (disruptive) adjustments to the supply chain
with negative effects on suppliers or local communities.
Negative
Impact
New or changing worldwide government regulation including carbon tax could require to adjust operations in
the supply chain (increasing costs).
Risk
Reputational risks can arise if the BMW Group fails to adhere to stakeholders expectations regarding the re-
duction of CO2e emissions in the supply chain.
Risk
Ambitiously reducing CO2e emissions (Scope 3 downstream, e.g. by high efficient combustion engines and
production of BEVs/PHEVs) can increase the market share in the customer segment of environmentally con-
scious buyers.
Opportunity
Catena-X provides standardized calculation methods and exchange formats for scope 3 upstream GHG emis-
sions. This allows the BMW Group to report comparable emissions along the actual supply chain in order to
better identify reduction potentials and to define targeted reduction measures with suppliers.
Opportunity
By offering battery electric, hydrogen and plug-in hybrid electric vehicles, the BMW Group enables the society
to more environmentally friendly alternatives to traditional combustion engines (use of electricity from re-
newable sources implied).
Positive
Impact
− Drivetrain strategy
− None
− Expansion of the drivetrain portfolio
− Increase in the proportion of battery
electric vehicles (BEVs) and effi-
ciency increases in the wide range of
drivetrain technologies
Risk through increased competition in the field of electrified vehicles.
Risk
The currently very ambitious fleet legislation, which may become more stringent in some markets, can only
be met with high additional marketing costs given weaker EV demand.
Risk
Upstream material Own Operations material Downstream material
* See ↗ Glossary for a definition of electricity from renewable sources.
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Climate resilience of the business model
The BMW Group actively works on improving the resilience of its
business model with the aim of meeting the challenges posed by
climate change. Through comprehensive consideration in Strat-
egy and Planning, Development (products and production tech-
nologies), Purchasing (raw materials and global procurement
markets), Production (locations and cooperations), Sales, Fi-
nance (profitability and liquidity) and Personnel (training), the
BMW Group is able to identify and assess the short-, medium-
and long-term adjustments to its business model that are re-
quired in response to climate change while taking the necessary
actions in all areas of its operations. To this end, the Company
regularly reviews and updates its underlying climate scenarios
and assumptions in order to make the effects its own business
model visible. The BMW Group’s approach to assessing resili-
ence extends to the entire value chain (own locations, supplier
locations and sales locations) and is based on internal risk re-
porting. Corporate planning (twelve-year planning period) is up-
dated annually and takes the risks and opportunities arising from
climate change into account. The scenario analyses are per-
formed to assess physical and transitory climate risks. Further
details related to the climate risk analysis process are available
in the ↗ Materiality Assessment.
The BMW Group takes steps to ensure the long-term viability of
its business model by implementing operational measures, con-
tinuously updating its sustainability strategy, and following the
overarching corporate strategy. Uncertainties in underlying as-
sumptions (primarily regulatory requirements, customer expec-
tations, technological developments, macroeconomic trends) are
recorded on an ongoing basis and any adjustments are made
promptly. The results of scenario analyses are incorporated into
operational measures and the further development of the sus-
tainability strategy as an integral part of the corporate strategy.
Sustainability targets are integrated into corporate planning on
the basis of current premises and scenarios (including Interna-
tional Energy Agency scenarios for energy generation, CO2e
emissions from upstream value creation). Starting with sales and
volume planning, all subsequent processes are interlinked in a
coordinated procedure. Simulating the possible effects of this
planning makes it possible for the BMW Group to take the nec-
essary actions at an early stage. Assumptions about technolo-
gies, customer behaviour and demand trends are taken into ac-
count as planning premises. In particular, there are remaining
uncertainties in the area of customer behavior and demand.
These areas are reviewed on a regular basis in order to reduce
this level of uncertainty. The same applies to planned actions re-
lated to CO2e reduction, such as further efficiency improvements
or the progressive electrification of the product portfolio. These
are also included as planning premises. Global market sales
forecasts and the planned product and drive portfolio are taken
into account as key factors. This means that the resilience anal-
ysis assesses the entire planning period based on the latest as-
sumptions and forecasts as part of the annual planning process.
Resulting actions are identified and taken into account in the fi-
nancial planning process. Based on these assumptions, the
BMW Group's business model is resilient to the impacts and ad-
justments resulting from climate change and climate change ad-
aptation.
Climate change mitigation and adaptation as key parts of
the corporate strategy
The BMW Group regards its balance of economic, ecological and
social interests as the basis for its economic success. The Com-
pany has therefore anchored the material impacts, risks and op-
portunities related to climate change mitigation and adaptation
in its corporate strategy ↗ Cornerstones of the Strategy. The strategic
fields of action of electrification, digitalisation and sustainability/
circular economy are geared towards achieving the sustainability
targets. As a global Company, the BMW Group is also in contin-
uous dialogue with a large number of external stakeholders in
Germany and abroad regarding aspects of climate change. This
includes affected communities and indigenous peoples. Stake-
holder feedback is taken into account and contributes to the con-
tinuous development of the corporate strategy ↗ Stakeholder
Engagement, ↗ Social and Environmental Responsibility in the Supply Network.
The BMW Group’s Strategy, including topic-specific strategies
such as the sustainability strategy, is confirmed by the Board of
Management. The CO2e strategy draws on the Greenhouse Gas
Protocol, science-based targets and implementation pathways,
as well as all relevant regulatory changes. Progress towards
achieving these targets is reviewed on a regular basis. All neces-
sary actions are discussed in the relevant committees and by the
Board of Management. These bodies also reach decisions on the
relevance and effectiveness of the actions. Specific decisions,
such as overarching targets for reducing CO2e emissions and cir-
cular economy initiatives, are addressed in topic-specific meet-
ings of the Board of Management. Strategic aspects are imple-
mented in the respective departments such as Purchase, Devel-
opment, Production, HR and Sales on the basis of defined target
processes. In line with established target-setting processes and
target achievement monitoring systems, targets are broken
down within the organisation to the individual implementation
levels. The targets are further detailed as needed with specific
requirements (for example within vehicle projects and down to
the component level).
Taking a coordinated approach and integrating all external and
internal requirements enables the BMW Group to develop, im-
plement and continuously update detailed guidelines and in-
structions based on the strategies. This approach integrates cli-
mate change mitigation and adaptation as well as energy use
and efficiency. This extends from development guidelines (such
as Design for Circularity) through to process specifications for
procurement and CO2e reduction requirements for the supplier
network*. Internal premises are established on the basis of cor-
responding requirements with the aim of implementing the stra-
tegic targets.
* The BMW Group includes measures that reduce carbon emissions, such as the use of electricity
from renewable sources, the use of secondary raw materials, new manufacturing processes for
raw materials, and product and material innovations such as biomaterials. Accordingly, compen-
sation measures are not included.
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Company-wide requirements related to climate change adapta-
tion are continuously developed and implemented including with
the help of infrastructure planning guidelines. One example is the
planning premise that new sites will be operated without the use
of fossil fuels, which has been approved by the Board of Man-
agement. The implementation process is defined on the basis of
relevant frameworks and guidelines, such as the Greenhouse
Gas Protocol and science-based approaches for reducing CO2e
emissions. The long-term corporate planning workflow was ex-
panded in the 2024 reporting year to include the assessment
and simulation of the impact on the BMW Group's absolute CO2e
emissions. This was done to make the interactions between vol-
ume, drivetrain mix, and supply chain more transparent within
planning processes, and is achieved by integrating the impact on
CO2e emissions directly into the scenarios used for volume and
financial planning.
In addition to the CO2e strategy, the BMW Group analyses the
current and future regulatory requirements for emissions and
drivetrain technologies as part of its long-term corporate plan-
ning. This includes detailed strategic market and drivetrain fore-
casts that are performed as part of volume planning. These fore-
casts monitor and anticipate fleet carbon emissions limits, pollu-
tants (including brake/tyre abrasion), quotas for electrified vehi-
cles, and bans on registration of individual drivetrain technolo-
gies. As part of the process for updating the BMW Group’s long-
term corporate planning, vehicle volume plans, and the drivetrain
mix of the BMW Group portfolio are updated on an annual and
ongoing basis. The aim is to continue reducing emissions during
the use phase of vehicles while also meeting changing market
requirements. The consistent enhancement of the drivetrain
portfolio therefore remains one of the BMW Group’s main levers
for reducing carbon emissions in the use phase. ↗ Cornerstones of
the Strategy
Additionally to regulatory requirements, the BMW Group also
factors regional and market-specific conditions into its strategic
planning. This includes, in particular, the availability and expan-
sion of the charging infrastructure for electrified vehicles, the pro-
portion of renewable energies in the energy mix and the availa-
bility of alternative low-carbon fuels. The analyses also include
customer acceptance of different drivetrain options in different
markets. Total-cost-of-ownership considerations, such as pur-
chase incentives for electrified vehicles, vehicle taxation or the
cost of the energy used to power a vehicle have a significant im-
pact on customer acceptance. The findings are carefully as-
sessed and incorporated into the process of designing the opti-
mum drivetrain mix for the respective market.
The BMW Group fulfils the regulatory requirements for fleet car-
bon emissions in the main sales markets of the EU, USA and
China while taking all of the relevant regulatory flexibilities into
account, such as to the purchase of carbon credits. If regulatory
carbon requirements change, the Company will determine
whether the current planning needs to be adjusted as part of the
annual strategic drivetrain forecast or whether additional action
needs to be taken. This approach ensures that the regulatory re-
quirements are met.
Transition plan to achieve Net Zero emissions by 2050
The BMW Group aims to achieve net zero CO2e emissions across
the entire value chain by latest 2050. This means that the una-
voidable CO2e emissions remaining after the reduction measures
will be equivalent to a maximum of 10% of the absolute emis-
sions in the base year 2019. The Scope 3 emissions will account
for around 99% of the remaining total emissions. The remaining
1% of the emissions are Scope 1 and 2 emissions. ↗ Preparing for
Net Zero. This methodology is based on recognised definitions
and specifications, including the ESRS. The transition plan for cli-
mate change mitigation which will be used to achieve net zero
consists initially of the CO2e reduction targets for 2030, which
also relate to the base year 2019. These near-term targets
(NTT) for the target year 2030 provide the guiding framework
used to define the actions needed. These targets are in line with
the climate targets set out in the Paris Agreement to limit global
warming.1 From the 2024 reporting year onwards, the CO2e tar-
gets will be converted from relative values to absolute values. By
deriving guidelines for 2035, the time horizon of the target corri-
dor will be extended.
Science-based, cross-sectoral methods were used for each
scope to derive CO2e reduction targets for 2030 in line with the
approach of the Science Based Targets initiative (SBTi). Targets
were assessed based on the source of the emissions according
to the relevant categories of the Greenhouse Gas Protocol. Per-
centage-based annual CO2e reduction targets relative to the
base year 2019 were used. This is a representative base year
that provides reliable and comparable values with regard to
framework conditions such as sales volumes, emissions in each
scope, and available technologies. By taking a systematic ap-
proach, the BMW Group ensures that the climate targets for
2030 have been developed on the basis of solid data and have
taken all relevant factors into consideration. The CO2e targets are
integrated into the BMW Group's steering system.
The Company has derived a 1.5°C-aligned pathway for Scope 1
and 22 emissions and integrated it in the corporate strategy. The
BMW Group has defined a combined target for its Scope 3 emis-
sions (including Purchased goods and services, Logistics, and
the Use phase) in the Automotive segment due to the close in-
terdependencies between the supply chain and use phase. The
targets are based on the standards of a science-based Well-Be-
low-Two-Degree approach in accordance with SBTi. The
BMW Group uses a holistic approach for this purpose that con-
siders the CO2e emissions of vehicles over their entire life cycle.
1 According to ESRS E1-1-16.g, the BMW Group is not exempt from the EU Paris-aligned bench-
marks, as this only applies to financial services companies.
2 The combined Scope 1 and 2 target includes all of the categories reported. At present, sites with-
out operational control are not included in the target. The base year 2019 also includes emis-
sions from contract manufacturing (”insourcing”). In the base year 2019 and the target year
2030, the biogenic share of emissions is included in the figure for the category Company Vehicles
(Scope 1), while the biogenic share of the average electricity mix supplied to the BMW Group is
included in the Electricity/Heating/Cooling Procurement for BMW Group Locations category.
Emissions under Scope 2 are included in the target using the market-based calculation.
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CO2e steering logic
At the time of target derivation for Scope 3 target, the target
value for 2030 fully meets the requirements of the SBTi Well Be-
low Two Degrees pathway, but is approximately 30% higher
than these theoretical targets with reference to an ideal 1.5°C
pathway according to the requirements and methodology of in-
dependent organisations. As part of the development of corridors
up to 2035, the demand for an increasing acceleration of decar-
bonization is being increasingly taken into account.
To achieve the CO2e targets, specific decarbonisation levers are
identified, assessed, approved and implemented specifically for
each scope.
The expected CO2e emissions from the corporate planning are
compared with the scope-specific targets. Measures are derived
from this process to ensure that the Company’s CO2e targets are
achieved by 2030 by means of annual target paths. A structured
process – in which the planned emissions are continuously com-
pared with the targets and appropriate measures are defined –
makes a significant contribution to the Company meeting its cli-
mate targets as planned.
These transitional measures are an integral part of the climate
strategy, which is an integral part of the BMW Group Strategy.
The planned product and infrastructure measures will provide a
short-term outlook for the avoided or reduced CO2e emissions
over a period of six years. The expected Scope 1, 2, and 3 emis-
sions (Purchased goods and services, Logistics, Use phase in
each case for the Automotive segment) are updated annually on
the basis of volume and sales plans and long-term corporate
planning. Sustainability matters of relevance to the product port-
folio, such as the electrification strategy and the integration of
these matters into the continuous strategic process, are pre-
sented annually as part of corporate planning, which is approved
by the Board of Management and the Supervisory Board. The
ongoing implementation of these processes ensures that the
corporate strategy and emissions reduction targets are harmo-
nised and can be implemented.
Monitoring und Reporting–
Governance
(Group reporting,
publications)
CO2e
Steering logic
Corporate
strategy
Consistency with the objectives
of the Paris Agreement
Targets for product projects and
anchoring in the periodic targets
(t CO2/vehicle) of the Purchasing,
Development, and Production depart-
ments
Measures
to meet targets and implementation
in the technology clusters
for all scopes
Target guidance and
target control
(avoidance of CO2e emissions)
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The BMW Group's long-term corporate planning is based on the
Company’s target system. In this way, the targets set out in the
planning are regularly compared with the BMW Group’s strategic
targets. Decisions related to the implementation of sustainability
targets – particularly in connection with sales planning and the
product portfolio – are confirmed in specific draft proposals or by
the decision making bodies of the BMW Group.
The BMW Group is drawing up a CapEx plan for capital expendi-
ture and operating expenditure that expands Taxonomy-aligned
economic activities or allows Taxonomy-eligible economic activ-
ities to become taxonomy-aligned. This plan is being drawn up
on the basis of the long-term planning of the BMW Group.
↗ EU Taxonomy. The level of investment required to achieve the
CO2e targets is derived from this CapEx plan. Specific measures
are also financed, such as the development of technologies that
contribute directly to the implementation of the transition plan.1
The progress of the implementation plan, based on the
measures for each scope, is reflected in the emissions reductions
achieved and forms the basis for its further development.
Path to achieving the CO2e reduction targets in 2030
The BMW Group is fully committed to the Paris Agreement and
contributes to decarbonisation efforts by pursuing its own ambi-
tious targets. To achieve this, the BMW Group promotes the re-
duction of CO2e emissions throughout the whole life cycle of its
products as well as the principles of the circular economy with a
verifiable track record of continuous improvement – from the
supply chain to production, the use phase and the recycling of its
products.
The relative targets introduced in 2021 (expressed as reduction
per vehicle) for Scope 1 and 2 (BMW Group locations) and Scope
3 (Purchased goods and services, Logistics, Use phase in each
case for the Automotive segment) will be replaced with absolute
values measured in tonnes CO2e from reporting year 2024 on-
wards. The BMW Group’s overall target claim remains un-
changed with this adaptation and take account of growth fore-
casts and interaction between the scopes. No future develop-
ments, (for example changes in sales volumes or new
technologies) were assumed as premises as part of the target
setting process.
The BMW Group aims to reduce its CO2e emissions by at least
40 million tonnes CO2e compared to the 2019 base year by
2030 - from 150.1 million tonnes CO2e to 108.6 million tonnes
CO2e. The targets are based on scientific, cross-sector methods
aligned with the approach of the SBTi. The BMW Group is com-
mitted to proceeding exclusively according to scientifically recog-
nised methods. For this reason, the BMW Group joined the SBTi
and validated its relative decarbonisation targets in 2020. Ongo-
ing revisions to the SBTi guidelines, which are expected to con-
tinue until at least the end of 2025, and interim requirements
valid until then (including the mandated commitment to phase
out combustion engine technology by 2035) mean that it is cur-
rently preventing the validation of the absolute targets.
The BMW Group actively incorporated stakeholder expectations
into the methodology used for its reduction pathways when de-
fining targets for a 1.5°C-aligned CO₂e reduction pathway for
Scope 1 and 2 emissions, as well as the Well-Below-Two-De-
grees approach for Scope 3 emissions in the Automotive seg-
ment (covering Purchased goods and services, Logistics, and the
Use phase). Additionally, the fleet CO2 regulations in the respec-
tive markets are applicable during the use phase.
Scope 3 categories are considered for both current reporting and
target-setting purposes based on the requirements of the Green-
house Gas Protocol. In addition to the absolute volume of emis-
sions and the proportion of total emissions, the most important
criterion being the extent to which the BMW Group is able to in-
fluence the emissions directly.
Based on this approach, the categories Purchased goods and
services, Upstream transportation and distribution (Logistics),
and Use of sold products (Use Phase) are both reported and fac-
tored into the target-setting process for the Automotive segment.
These target-relevant categories account for more than 95% of
all reported Scope 3 emissions. Additional reported categories
(Business travelling and Employee commuting) are excluded
from the target Scope because the volumes in question are
relatively small (Business travelling and employee commuting)
or because of the lack of direct influence by the BMW Group
(End-of-Life treatment of sold products [Disposal]).
An absolute target of 0.635 million tonnes of CO2e by 2030 has
been set for direct (Scope 1) and indirect (Scope 2) emissions.2
This is equivalent to a 46.3% reduction in emissions compared
to the base year 2019 (1.182 million tonnes of CO2e). The Scope
2 target derivation is based on the market-based method. This
factors in the actual emissions of the electricity used instead of
the values of regional electricity mixes. Approximately three
quarters of the emissions are allocated to Scope 1 and approxi-
mately one quarter to Scope 2.
An absolute target of 108 million tonnes of CO2e for 2030 was
defined for Scope 3 emissions in the Automotive segment, based
on Purchased goods and services, Logistics and the Use phase.
This is equivalent to a 27.5% reduction in emissions compared
to the base year 2019 (148.9 million tonnes of CO2e).
Energy efficiency measures and the use of renewable energy in
particular should contribute to achieving the targets in the own
production of the BMW Group. Fossil fuels are increasingly being
replaced by alternative technologies, particularly site-specific ge-
othermal energy, renewable district heating and power-to-heat
systems. At the new plant in Debrecen, Hungary, all paint line
processes are powered by electricity instead of natural gas.
1 In accordance with ESRS 1-106, significant monetary amounts related to CapEx and OpEx nec-
essary for the implementation of current or planned measures outside the CapEx plan are not
quantified for confidentiality reasons.
2 The combined Scope 1 and 2 target includes all of the categories reported. At present, sites with-
out operational control are not included in the target. The base year 2019 also includes emis-
sions from contract manufacturing (”insourcing”). In the base year 2019 and the target year
2030, the biogenic share of emissions is included in the figure for the category Company Vehicles
(Scope 1), while the biogenic share of the average electricity mix supplied to the BMW Group is
included in the Electricity/Heating/Cooling Procurement for BMW Group Locations category.
Emissions under Scope 2 are included in the target using the market-based calculation.
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This significantly reduces CO2e emissions, even if it increases
electricity consumption. The plant in Debrecen sources all of its
production-related electricity needs from electricity from renew-
able sources. These decarbonisation levers are helping the
BMW Group to achieve its overall targets in a manner which is
proportionate to the total volume of emissions allocated to each
scope.
In the supply chain, the biggest lever for CO2e-reducing
measures is the use of electricity from renewable sources, while
the second biggest lever is the use of secondary materials and
raw materials from CO2e-reduced production processes (for ex-
ample steel and aluminium). Expanded innovation and infra-
structure management process for logistics measures are reduc-
ing emissions related to logistics. During the use phase, the big-
gest lever is the electrification of the product portfolio across all
brands. In addition, other drive technologies such as hydrogen
are being further developed and will be gradually integrated into
the product range. The BMW Group is also implementing effi-
ciency improvements for conventional drivetrains and continu-
ously increasing the use of electricity from CO2e-free sources for
vehicle charging.
The BMW Group expects the largest contribution to achieving the
2030 CO2e emissions reduction target – approximately 65% in
absolute terms – to come from the electrification of the vehicle
fleet (automobiles), which is allocated to the Scope 3 category
Use phase. The majority of the remaining reductions will be
achieved by implementing measures in the supply chain and lo-
gistics.
The LCA (Life Cycle Assessment) comparison of current all-elec-
tric vehicles shows improvements that have already been real-
ised. The next generation of battery technology in the NEUE
KLASSE vehicles is expected to reduce emissions in the supply
chain for the battery cell approximately by another third. By using
electricity from renewable sources in selected process steps,
CO2e emissions can be reduced further over the entire life cycle.
Compared to comparable vehicle concepts with an internal com-
bustion engine, Scope 3 CO2e emissions can be reduced by up
to three quarters.
Regardless of the drivetrain technology, the decarbonisation of
the supply chain in particular makes significant contributions to
achieving the target. The continuously growing proportion of
electric vehicles in the BMW Group’s range may cause emissions
in the supply chain to increase in the short to medium term. The
main reason for this is the higher product carbon footprint (PCF)
of the high-voltage battery compared to conventional drivetrain
concepts. In the supply chain and in the component manufactur-
ing process, the BMW Group therefore relies on electricity from
renewable sources at selected stages of the process, in addition
to using recycled materials and technical measures that have
been developed to limit the increase in CO2e in the supply chain.
High reduction contributions result from agreements with raw
material suppliers for aluminium and precious metals as well as
from suppliers of high-voltage battery cells. These measures are
already being implemented with the current battery generation.
With the use of upcoming battery generations, these effects are
to be further expanded. For example, by using materials with
CO2e-reduced manufacturing processes or higher proportions of
recyclates, CO2e emissions can be reduced by up to 80% for al-
uminium and up to 70% for steel. This includes the use of direct
reduction processes in steel production. For other material
groups such as glass and plastics, the use of electricity from re-
newable sources has a particularly beneficial effect on the CO2e
footprint of the supply chain.
The BMW Group takes into account the trends in key customer
segments, drivetrain technologies, and forecasts for the decar-
bonisation of supply chains and energy generation when opera-
tionalising emission targets across all three scopes. CO2e credits
(certificates) are not factored in when these targets are set and
monitored - Only actual reduction measures are counted.
The target achievement is subject to uncertainties, some of
which cannot partially or cannot be completely influenced by the
BMW Group. For example, future deliveries of battery electric ve-
hicles (BEV) as a proportion of total sales may not be in line with
current assumptions. The availability of appropriate infrastruc-
ture and incentives to purchase BEVs will have an impact on de-
mand. It became clear in the reporting year that the BEV market
remains fragmented worldwide. Different markets are develop-
ing at different speeds. External factors such as the removal of
incentives are having a significant impact. The flexibility of the
BMW Group’s production network puts it in a position to react ef-
fectively to these developments. Higher overall sales volumes or
a higher proportion of combustion-engine vehicles would make
additional supply chain decarbonisation measures necessary in
order to achieve the CO2e targets. Geopolitical risks can also
have a significant impact on the BMW Group’s ability to achieve
climate targets.
External market-specific developments in the supply chain may
also lead to the decarbonisation of energy-intensive upstream
stages in particular taking a different course than planned. Not
all factors that impact decarbonisation can be directly influenced,
particularly in the production of CO2e-intensive raw materials
such as steel and aluminium and the subsequent value creation
stages in the supply chain. Furthermore, the ambitious forecasts
of the International Energy Agency (IEA) – which are used to cal-
culate emissions in the use phase of electrified vehicles – may be
missed if, for example, the use of renewable energy does not pro-
gress quickly enough. In contrast, additional actions, such as the
provision of CO2e-free charging for customers, may result in an
improvement in downstream Scope 3 emissions (Use phase). Fi-
nally, changes in legally prescribed measurement and assess-
ment procedures may have an impact on the BMW Group's tar-
gets and their achievement.
Implemented actions and metrics for a holistic CO2e
reduction
The overarching CO2e targets for all scopes are the basis for the
specific actions that are an integral part of the corporate, product
and topic-specific strategies (including Purchasing, Develop-
ment, Production and Sales). Specific targets and implementa-
tion steps are derived from the overarching goals of the Com-
pany.
The actions taken to reduce emissions are identified, assessed,
approved and implemented individually for each scope. Particu-
larly as regards the own locations (Scope 1 and 2), these actions
involve the gradual substitution of fossil fuels and making contin-
uous increase in energy efficiency to reduce energy require-
ments. To this end, emissions related to production are primarily
reduced through energy efficiency actions and the use of
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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.
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In 2024, the BMW Group’s CO2e emissions, excluding biogenic
CO2 emissions, totalled 836,963 t CO2e in Scope 1 and 2 and
130,297,238 t CO2e in Scope 3.
These absolute CO2e emissions are set in relation to net sales
revenue in accordance with the ESRS requirements. For the re-
porting year 2024, this so called ↗ Greenhouse gas intensity is 933 t
CO2e/€ million according to the market-based method and 941 t
CO2e/€ million according to the location-based method. The
BMW Group expects that the targets that have been set will re-
duce this figure over the next few years. In the 2024 reporting
year, the relative reporting metrics for CO2e emissions from
BMW Group locations (Scope 1 and 2) are 0.27 t CO2e per vehi-
cle produced,1 and 13.55 t CO2e per vehicle produced for CO2e
emissions from the supply chain.1
With regard to Scope 3 emissions, the assessment criteria of the
Greenhouse Gas Protocol were used to determine the relevant
categories. The decision of which categories to disclose was
made on the basis of volumes and proportion, measurability, the
ability of the BMW Group to influence the emissions volumes,
and the degree of risk. ↗ Materiality of the various Scope 3 categories
Emissions in Scope 3 categories 2 (Capital goods), 3 (Fuel and
energy-related activities), 5 (Waste generated in operations), 8
(Upstream leased assets), 10 (Processing of sold products), 13
(Downstream leased assets) and 15 (Investments) are not re-
ported for reasons of materiality, as they account for around 3%
of total emissions and are not significant. The BMW Group is
therefore focusing on the emissions that are considered relevant
in terms of the absolute volumes involved (category 1, Purchased
goods and services, categories 4 and 9, Logistics, and category
11, Use of sold products) and those that can be directly or indi-
rectly influenced by the BMW Group ↗ Materiality of the various
Scope 3 categories. The significant categories included in the report
cover 97% of the BMW Group’s total Scope 3 emissions.
The BMW Group's greenhouse gas emissions are calculated us-
ing recognised data sources and methods. These include the
specialised software LCA for Experts, which is used to analyse
the value chain and calculate the Global Warming Potential
(GWP) values of the Intergovernmental Panel on Climate Change
(IPCC). Until reliable primary data is available, for example based
on emission measurements performed in the supply chain by the
suppliers themselves, values from databases are used instead of
primary data (0%). These values are adjusted in certain cases
using more precise secondary data, provided that measures to
reduce the CO2e emissions of relevant suppliers are verifiable.
CO2e emissions of the BMW Group2
in t
Developing generally recognised standards for the automotive
industry, and ideally across industries, is a crucial step in ensur-
ing that emissions data can be compared properly across com-
panies.
It is currently not possible to compare this data across compa-
nies. The BMW Group has a long-term objective of developing a
CO2e accounting system based on real data. The first steps have
already been taken with the Catena-X project. Information about
the system boundaries (upstream and downstream value chain),
information on evaluation using market- and location-based
methods and the data gathering methods can be found in the
↗ CO2e footprint and is explained in the glossary.
The metrics for the Motorcycles segment were included in the re-
porting metrics for Scope 3 supply chain (upstream) and the use
phase (downstream) for the first time in the 2024 financial year.
These values were initially collected as an extrapolation in line
with the processes for the Automotive segment.
CO2e emissions per vehicle produced (automotive)1
in t
1 Assurance level: reasonable assurance. Additional information is available in ↗ Glossary and Ex-
planation of Key Figures.
2 Scope 2 emissions according to the market-based method. According to the location-based
method, the Scope 2 emissions amount to 1,304,971 t CO2e. Additional information is available
in ↗ Glossary and Explanation of Key Figures.
672,542
164,421
35,103,222
95,194,016
Scope 1
Scope 2
Scope 3
Upstream
Scope 3
Downstream
0
13.55
13.91
13.13
0.27
0.28
0.40
0
2024
2023
2019
BMW Group
locations
Supply Chain
125
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From the 2025 financial year onwards, the BMW Group’s sus-
tainability reporting will be expanded to include Scope 3 category
14 (Franchise). This category comprises the global retail network
for the BMW and MINI brands (excluding own branches). The
global retail network of the BMW Group’s Automotive segment
currently comprises around 4,800 sales locations. As the retail
network is considered part of the downstream value chain, the
associated activities are also included in the BMW Group's Scope
3 emissions. In tandem with the data gathering process, the
preparation ofCO2e targets for the global retail network and the
development of a pathway for achieving these targets began in
2024. The BMW Group plans to prepare measures by the end of
2025 that align the sales organisation's CO2e targets with the
BMW Group’s overarching targets.
This ensures that emissions from significant emission sources
along the entire value chain, including the sales organisation, are
fully documented and reduced in a targeted manner from 2025
onwards.
In addition to absolute CO2e emissions, the BMW Group also as-
sesses its fleet carbon emissions limits in the use phase. Despite
a slowdown in the upwards sales trend for electrified vehicles in
the 2024 reporting year, the BMW Group was able to further re-
duce its fleet carbon emissions in the main sales markets of the
EU, USA, and China by increasing the BEV share.
Within the EU1, average fleet carbon emissions, taking into ac-
count regulatory requirements2 and in accordance with WLTP,
were 99.5 g CO2/km2. This is equivalent to reducing the
↗ CO2 emissions of the new vehicle fleet EU by a further 2.6 g compared
to the previous year (2023: 102.1 g CO2/km). In the reporting
year, the BMW Group remained significantly below the legal ap-
plicable limit of approximately 130.1 g CO2/km by 30.6 g
CO2/km. This continues the trend seen in recent decades, driven
by the electrification of the vehicle fleet and the fleet-wide de-
ployment of innovative technologies ↗ EfficientDynamics technologies.
In the US market, the BMW Group once again met the regulatory
GHG fleet consumption requirements during the reporting year.
This was achieved using self-generated credits as well as credits
carried over from previous years. The BMW Group did not pur-
chase any credits from other manufacturers for the reporting
year. The requirements were therefore met without exception by
using self-generated, existing credits. The volume-weighted
↗ CO2 fleet carbon emissions (US market)3 averaged 114.6 g CO2/km2
(model year 2023: 126.5 g CO2/km). The increasing proportion
of electric vehicles had a particularly significant effect in terms of
reducing emissions.
The volume-weighted ↗ CO2 fleet carbon emissions in China were
141.9 g CO2/km2 according to the WLTC test cycle (2023:
146.4 g CO2/km WLTC). The BMW Group has also met the ap-
plicable regulatory CAFC fleet consumption requirements in that
market.
The BMW Group’s ↗ global fleet carbon emissions in the reporting year
averaged 185.0 g CO2e/km2 (2023: 191.8 g CO2e/km4). These
metrics correspond to a decrease of 18.4% compared to the
base year 2019 (2019: 226.8 g CO2e/km4). As in previous years,
when calculating the emissions metrics, the BMW Group takes
into account volume-weighted fleet carbon emissions (including
upstream emissions for fuel and electric charging) in the EU, the
USA, and China and standardises them in accordance with the
WLTP. With a share of more than 80% of BMW Group deliveries,
these three core markets and regions form a reliable basis for
calculating global average fleet carbon emissions.
The BMW Group is involved in associations and also participates
independently in political debates on future requirements related
to carbon legislation in individual markets. The Company sup-
ports the development of harmonised national and international
regulations. Establishing comparable requirements creates a re-
liable and predictable framework which can make an important
contribution to effectively countering the effects of climate
change. We provide information on the BMW Group’s most im-
portant climate policy positions and activities in our ↗ Climate
Engagement Report.
Use of an internal carbon price to assess vehicle projects
An ↗ internal carbon price is used as a shadow price in the develop-
ment phase of vehicle projects (automobiles) to assess the
measures taken to reduce carbon emissions in the use phase.
This carbon price was determined on the basis of fleet regula-
tions in the EU. These regulations stipulate a penalty of 95 € per
gram of CO2 for each unit sold if the target is not met. The value
is converted over an assumed mileage of 200,000 km to a price
of 475 € per tonne of CO2. Vehicle projects are managed directly
based on impacts in g CO2/km while drawing on expected vehicle
emissions and their impact on the BMW Group fleet.
The penalties that may be imposed are appropriate when as-
sessing measures as they directly represent the costs that would
be incurred if the targets were not met. The costs of carbon
measures can therefore be directly compared to potential pen-
alty payments and used as a basis for assessing emissions from
the use phase. The BMW Group’s internal carbon price is applied
to 100% of Scope 3 CO2e emissions from the use phase of the
automobile sector. In the 2024 reporting year, this price was ap-
plied to 90,667,226 t CO2e. This is equivalent to 69.1% of the
total CO2e emissions of the BMW Group.
1 EU-27 countries including Norway and Iceland.
2 Assurance level: reasonable assurance.
3 Converted from g/mi to g/km for comparison purposes.
4 The calculated emissions include upstream emissions from supplying fuel. In the current data set
provided for this purpose, Sphera uses the new IEA Methane Tracker. This determined that me-
thane flaring was significantly more frequent during crude oil production than in previous years.
Due to the significant influence that this effect has on the aforementioned indicator, the previous
years were re-baselined back to 2019. Excluding this effect, the previous year's value was
185.4 g CO2e/km and the value in 2019 was 218.5 g CO2e/km.
126
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In the supply chain, however, the actions taken to achieve targets
for each material group are managed based on the required level
of carbon reduction and the necessary avoidance costs. The pro-
cess is carried out annually with the involvement of the Purchas-
ing and Supplier Network, Development and Finance depart-
ments. Similarly, the actions taken to achieve Scope 1 and 2 tar-
gets are managed based on the specific avoidance costs. A con-
tinuous coordination process ensures that requirements arising
from changing conditions are reliably taken into account and that
mitigation measures in the supply chain are optimised.
Internal carbon prices are not used for financial reporting pur-
poses. They are not used when assessing the duration of use
and residual value of assets, assessing the possible impairment
of assets or measuring the fair value of assets acquired through
corporate takeovers. However, the BMW Group’s corporate
planning does incorporate volume- and price-related assump-
tions for emission allowances under the EU Emissions Trading
System (ETS). These premises are also factored into the impair-
ment testing process for assets in the Automotive segment.
Preparing for Net Zero
The BMW Group intends to achieve Net Zero by 2050, which
means reducing CO2e emissions across all scopes within the
value chain by at least 90% compared to the base year. To
achieve this target at this point in time, the BMW Group focuses
within the preparation of Net Zero on the decarbonization of its
value chain. All emissions that cannot be technically reduced fur-
ther at the point of Net Zero (maximum 10% of total base year
CO2e emissions) must be neutralised from that point onwards
using permanent carbon sinks.
The BMW Group has been supporting the development of new
permanent CO2e sequestration methods since 2024 to drive the
development of these carbon sinks. These efforts have included
purchasing certificates from biochar projects.
* Additional information is available in ↗ Glossary and Explanation of Key Figures.
The BMW Group is financing the permanent storage of initial vol-
umes equivalent to 25,000 t of CO2e in cooperation with partners
including Atmosfair and Firstclimate. By this means, it is intended
to foster the scaling of promising Carbon Dioxide Removal (CDR)
technologies at an early stage in order to also prepare for the
BMW Group’s sub-target of neutralising a maximum 10% of its
base year CO2e emissions at the point of Net Zero by 2050 at
the latest.
The BMW Group supports these projects voluntarily, which
means their yields are not counted towards the Group's CO2e tar-
gets. The projects are certified by independent institutions in line
with international standards (for example CSI/EBC C-Sink) and
have to meet a set of strict quality criteria as for instance perma-
nence and additionality of the CO2e storage effects.
2024
Total (in t CO2e)
25,000
Share from removal projects (in %)
100
Share from reduction projects (in %)
–
Sink-type biochar (in %)
100
Recognised quality standards CSI/C-Sink (in %)
100
Share of projects within the EU (in %)
–
Share of projects with corresponding adjustments (in %)
–
CO2e certificates planned to be cancelled in the future (in t CO2e)
Until and including reporting year 2026
46,000 – 57,500
CO2e certificates cancelled in the reporting year*
127
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HOLISTIC ENVIRONMENTAL
MANAGEMENT WITHIN THE
BMW GROUP
Protecting the environment is an important pillar of the
BMW Group’s sustainability strategy. The BMW Group takes ac-
tion to protect the environment at every stage of the vehicle life
cycle, from the supply chain through to production and the end of
the use phase. The BMW Group incorporates ecological effects
into its planning and activities at an early stage and assesses en-
vironmental impacts, risks and opportunities.
Within the BMW Group’s global production network, energy and
resource efficiency as well as the control of resource consump-
tion have been integral parts in the environmental management
system for decades. Alongside CO2e emissions, the other indica-
tors are energy and potable water consumption, waste for dis-
posal, and solvent emissions. Biodiversity is also analysed for
each site individually.
The environmental policy addresses the impacts, risks and op-
portunities identified as material at the properties of the
BMW Group in the areas of water, energy and climate change
↗ List of material Impacts, Risks and Opportunities. All of the actions we
take are in compliance with legislation, regulations and stand-
ards. A certified environmental management system in accord-
ance with ISO 14001 has been implemented at all BMW Group
production sites. Moreover, all the BMW Group’s German plants
are certified under the EMAS environmental management sys-
tem. The requirements of these regulations are specified in bind-
ing specifications such as the BMW Group working instructions
and guidelines, the BMW Group Management Manual (for qual-
ity, environmental protection, occupational safety, ergonomics,
health management and corporate security including information
protection), in process descriptions and procedural instructions,
as well as in work orders and standard operating procedures.
The monitoring process of the environmental policy is based on
annual audits which are required in order to meet the aforemen-
tioned regulations.
By providing information and training, we promote and develop
a sense of responsibility for the environment among our employ-
ees. The BMW Group’s environmental policy requires and facili-
tates environmentally friendly conduct throughout the entire or-
ganisation. This helps our workforce to play their part in improv-
ing the environmental performance of the BMW Group. Manag-
ers act as role models and the BMW Group provides targeted
training and further education in this area. Proposals and ideas
for improving operational processes and improving our environ-
mental performance are assessed internally in the “cre8” idea
management programme.
The Board of Management is responsible for the implementation
of the environmental policy. Managers bear particular responsi-
bility for implementing and living out the environmental and en-
ergy policy and motivating their employees accordingly. Environ-
mental protection training is mandatory for managers. The dele-
gation chain assigns operator responsibility to site management.
Each facility, each building and each area is allocated to a re-
sponsible operator who is responsible for the products, pro-
cesses, facilities and technical systems in their area. Environ-
mental protection units support and advise operators and em-
ployees at each site. These units consist of the environmental
management officers and the officers for waste, water protection
and immission control. These individuals are responsible for
making production processes as environmentally friendly as pos-
sible in line with the environmental objectives. The BMW Group
uses a number of tools to help operators fulfil their responsibili-
ties, including operator inspections, regular meetings and an
emergency communication system.
At company level, the department for Strategy, Planning, Envi-
ronmental protection and Energy Management advises the net-
work of environmental protection units. This department heads
up regular meetings involving the plants’ environmental man-
agement officers in the Environmental Protection Steering Com-
mittee. The steering committee coordinates environmental pro-
tection activities in the area of production throughout the Group.
The sites of the BMW Group also have cross-technology energy
groups which are tasked with continuously optimising the energy
consumption of production processes. The purpose of these
groups is to minimise impacts on the environment accordingly.
The BMW Group is committed to protecting people and the envi-
ronment by acting responsibly beyond the confines of its plants.
It is therefore expanding its influence throughout the value chain
by establishing partnerships and dialogue formats with policy-
makers, business partners and external partners such as cus-
tomers, suppliers, contractual partners and non-governmental
organisations (NGOs). As a global company, the BMW Group is
in continuous dialogue with a large number of external stake-
holders in Germany and abroad regarding environmental mat-
ters. These include affected communities and indigenous people.
↗ Stakeholder Engagement, ↗ Social and Environmental Responsibility in the
Supplier Network
We inform the public about our environmental objectives and
measures in a variety of ways. We also use events, conferences,
presentations and plant tours to engage in dialogue with differ-
ent target groups. Publications, brochures and environmental
statements from the individual plants, the BMW Group Report
and the websites of the BMW Group and its plants provide addi-
tional transparency about our activities.
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ENERGY EFFICIENCY AND RENEWABLE ENERGY
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Globally, the network of sales partners consumes energy - and thereby uses natural resources and contrib-
utes to climate change.
Negative
Impact
− None
− None
− None
Concluding power purchase agreements support the development of more renewable energy capacity and
saving resources and emissions.
Positive
Impact
− Energy policy
− Environmental policy
↗ Holistic Environmental Manage-
ment within the BMW Group
− Reduction of energy consumption by
25% by 2030
− Energy efficiency measures to opti-
mise production technology and
building services
− Replacement of old and inefficient
systems with new systems that are
more efficient
− Development of new processes that
are more efficient and more envi-
ronmentally friendly
− Replacement of fossil fuels with re-
newable energy sources
Risk of limitations in the use of certain energy sources due to regulatory restrictions, which may confine their
application to specific sectors or require physical delivery. As a result of these limitations some energy
sources cannot be used for emission reduction measures.
Risk
Globally, the network of supplier locations consumes energy - and thereby uses natural resources and con-
tributes to climate change.
Negative
Impact
− BMW Group Climate Strategy
↗ Climate change mitigation and
adaptation as a key part of the
corporate strategy
− Reduce Scope 1, Scope 2 and
Scope 3 emissions by at least 40 m
tonnes CO2e by 2030
↗ Path to achieving the CO2e reduc-
tion targets in 2030
− Supply chain: use of electricity from
renewable sources* and secondary
materials
↗ Implemented actions and metrics
for a holistic CO2e reduction
New or changing worldwide government regulations on energy use could require to adjust operations in the
supply chain.
Risk
Upstream material Own Operations material Downstream material
* See ↗ Glossary for a definition of electricity from renewable sources.
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The BMW Group attaches great importance to energy consump-
tion and energy efficiency throughout the company. Our targets
and the actions we take to reduce energy consumption are am-
bitious. Instead of focusing exclusively on our energy costs, we
give the same level of emphasis to reducing CO2e emissions
through the increased use of renewable energy sources. The
Group’s direct responsibility for its production processes is the
starting point for these efforts. One of the criteria which we look
at when awarding contracts is the use of electricity from renew-
able sources by direct suppliers (Tier 1 suppliers) and in energy-
intensive processes of pre-production stages (N-tier suppliers)
involved in the manufacture of CO2e-intensive components and
materials. Energy is a material topic for the BMW Group at all
stages of the value chain. The effects of energy consumption in
the supply chain and in the downstream value chain are pre-
sented separately in ↗ Climate change mitigation and adaptation as a key
part of the corporate strategy.
Energy management
The BMW Group’s energy management system includes a
Group-wide energy policy which assigns clear roles – each with
corresponding responsibilities, targets and reporting obligations
– to central strategy departments, regional management units
and sites at the local level. This facilitates the mitigation of the
direct impacts and risks identified in relation to energy at the
BMW Group’s own operations. The energy management system
covers structural planning, system design, the procurement of
energy and technical equipment as well as the management of
the property portfolio.
Energy management regulations apply to all important energy-
related processes and properties throughout the BMW Group.
The requirements therefore apply to all geographical areas and
all locations under the operational control of the BMW Group.
Overall responsibility for energy management lies with the Board
of Management and extends across all organisational levels.
The BMW Group uses electricity from renewable sources at the
majority of its properties, including its own photovoltaic systems
(PV). Additional PV systems were installed at the plants in Berlin
(Germany), Leipzig (Germany) and Rosslyn (South Africa) in
2024. The Group also began the process of getting additional
photovoltaic systems set up at other locations. The BMW Group
sources energy (electricity, heating, steam, and cooling) exter-
nally using direct supply contracts for regenerative energy
(23%), including Power Purchase Agreements (PPAs) as well as
from Energy Attribute Certificates (62%). These guarantees cer-
tify that the energy we procure comes from renewable sources.
Clear internal guidelines ensure that biomethane is procured and
used in line with regulatory requirements. The BMW Group is
progressively transitioning to using alternative sources for heat-
ing purposes, including biomass, geothermal energy, and power-
to-heat technologies. Boreholes are being drilled for a geother-
mal plant at the Shenyang plant in China, while the foundations
have already been laid for a wood chip heating plant at the Din-
golfing (Germany) plant.
By implementing and continuously monitoring environmental
and energy policies, the BMW Group can mitigate risks, such as
stricter environmental regulations or rising energy prices, while
improving its environmental performance.
A certified energy management system is in place for energy-in-
tensive processes and locations to ensure the accuracy and
completeness of CO₂e and energy data, as well as the effective-
ness of our energy management processes. The BMW Group
also uses regular reporting and mandatory internal and external
audits for this purpose.
The BMW Group has signed up to a number of initiatives, high-
lighting its commitment to climate and environmental protection.
The BMW Group adheres to the quality criteria of the RE100
standard when purchasing electricity from renewable sources.
Since 2020, all of the external electricity used for production at
all of the BMW Group’s plants worldwide has come from renew-
able sources. The majority of our non-production sites are also
powered by electricity from renewable sources.
We foster close relationships with stakeholders - including local
businesses, politicians and all relevant internal parties - to en-
sure that their interests are taken into account when we imple-
ment energy- and location-specific projects. A detailed descrip-
tion of the strategy development process and our approach to
engaging with external and internal stakeholders can be found in
↗ The BMW Group Strategy and ↗ Stakeholder Engagement.
Energy targets
The BMW Group is committed to continuously implementing en-
ergy efficiency measures. It has set itself the target of reducing
its energy consumption per vehicle produced by 25% by 2030
compared to the 2016 base year.* Progress toward these energy
targets is tracked in an ongoing monitoring process. Each year,
energy targets for internal management are set for the following
year. These are based on historical energy consumption, com-
pleted and planned measures, as well as factors like capacity
and utilisation rates. The target is a relative target per unit pro-
duced, measured in megawatt hours (MWh). The energy effi-
ciency target is directly linked to controlling absolute CO₂e emis-
sions in the context of the BMW Group’s planning processes.
The targets are established based on an analysis of the market
environment combined with an assessment of technical feasibil-
ity. The analysis of technically feasible measures incorporates in-
sights from technologic innovations.
The objective of saving energy and increasing the use of renew-
able energy primarily involves internal stakeholders, such as
plant managers, whose opinions and interests are incorporated
into the target-setting process. When it comes to using renewa-
ble energy, local stakeholders within the energy infrastructure
are engaged as needed.
* Target for global vehicle production (BMW Group plants and partner plants). The efficiency target
is based on internal historical data. It is specific to the Company and is not aligned with a science-
based approach.
130
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Sustainability Statement
Changes in production planning, the introduction of new produc-
tion plants and modifications to technical systems can have an
impact on our progress towards achieving these energy targets.
End-of-year forecasts are developed and monitored monthly for
all targets using an automated dashboard. Progress for 2024
was on track with the original plan. This same approach is used
to manage Scope 1 and Scope 2 CO₂e emissions targets.
Efficiency measures and energy mix
In 2024, the BMW Group undertook a broad range of initiatives
to meet carbon and energy efficiency targets at its locations.
The measures implemented to reduce energy consumption can
be summarised as follows:
—
Energy efficiency measures to optimise production technol-
ogy and building services
—
Replacement of old and inefficient systems with new sys-
tems that are more efficient
—
Development of processes that are more efficient and more
environmentally friendly
—
Replacement of fossil fuels with renewable energy sources
The measures implemented in these categories cover all proper-
ties under the BMW Group’s operational control and all key en-
ergy-related processes. A detailed breakdown of the contribu-
tions from each category is not provided due to the measures
having overlapping effects and due to external factors such as
seasonal weather. Financial resources are allocated annually for
energy efficiency measures so that the BMW Group can meet the
2030 energy efficiency target. Resources are made available for
Scope 1 and 2 CO₂e reduction efforts on a rolling basis to align
with the 1.5°C target pathway. These extensive measures un-
derscore the BMW Group’s commitment to meeting its energy
targets.
In the 2024 financial year, the BMW Group's total ↗ energy
consumption amounted to 6,205,004 MWh, with 48.5% sourced
from renewables. ↗ Energy consumption per vehicle produced was
1.94 MWh, lower than in the previous year (2023: 1.97 MWh).
In addition to fossil fuels and renewables, the average electricity
mix supplied to the BMW Group also included 12,037 MWh from
nuclear energy, which accounted for 0.2% of total energy con-
sumption.
Additionally, some of the fuel procured by the BMW Group was
used to generate 556,173 MWh of electricity in the Group’s
highly efficient combined heat and power plants in the reporting
year.
The BMW Group’s ↗ energy intensity for the 2024 financial year
(measured as total energy consumption in MWh per million euros
of net revenue) stood at 44.13 MWh/€ million.
Energy consumption per vehicle produced (automotive)3
in MWh
1 For more information, see ↗ Glossary and Explanation of Key Figures.
2 In the average electricity mix supplied to the BMW Group considered here, besides fossil shares,
renewable and nuclear components are also included.
3 Additional disclosure. Assurance level of the years 2023 and 2024: reasonable assurance. Addi-
tional information is available in ↗ Glossary and Explanation of Key Figures.
1.94
1.97
2.21
0
2024
2023
2016
in MWh
2024
Total energy consumption
6,205,004
Total fossil energy consumption
3,195,726
Fuel consumption from natural gas
2,673,521
Fuel consumption from crude oil and petroleum products
7,005
Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources2
515,200
Share of fossil sources in total energy consumption (in %)2
51.5
Total renewable energy consumption
3,009,278
Fuel consumption from renewable sources, including biomass
166,907
Consumption of self-generated non-fuel renewable energy
5,603
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources
2,836,768
Share of renewable sources in total energy consumption (in %)
48.5
Energy consumption and mix at BMW Group locations1
131
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Sustainability Statement
REDUCTION OF ENVIRONMENTAL POLLUTION
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Contamination with microplastics due to tyre wear particles.
Negative
Impact
− None yet
− None yet
− Collaboration in the development of
measurement methods for tyre
abrasion
Local pollution of water through unplanned discharges of polluting substances (e. g. leaks) at suppliers' pro-
duction sites.
Negative
Impact
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain (in-
cluding the BMW Group Supplier
Code of Conduct)
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
− Process for responsible raw mate-
rial management
↗ Responsible raw material man-
agement
− No targets that focus exclusively
and thematically on material im-
pacts, risks, and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Preventive and remedial
measures
↗ Complaints procedure
− Analysis of the effectiveness of the
processes and measures imple-
mented
↗ Due Diligence in the supplier net-
work
− Objectives for local projects
↗ Responsible raw material man-
agement
− Commitment to initiatives
− Risk analysis
− Sustainability questionnaire (online
assessment)
− On-site assessments of supplier lo-
cations (on-site assessment)
− Complaints procedure
− Certification and traceability of raw
materials supply chains
− Implementation of local projects
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier
network
↗ Risk analysis and control
mechanisms
↗ Preventive and remedial
measures
↗ Complaints procedure
↗ Responsible raw material man-
agement
Local pollution of soil through unplanned discharges of polluting substances (e. g. leaks) at suppliers' produc-
tion sites.
Negative
Impact
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with pollution of water.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with pollution of
water.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with pollution of soil.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with pollution of
soil.
Risk
Upstream material Own Operations material Downstream material
132
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Other Information
Sustainability Statement
The BMW Group has a comprehensive environmental manage-
ment system at its own operations. Detailed checks and inspec-
tions are carried out during the planning and construction of new
production and other sites with the aim of eliminating air, water,
and soil pollution from the outset or reducing it as much as pos-
sible. Extensive measures are implemented to ensure compli-
ance with limits. As a result, there are no significant impacts, risks
or opportunities related to pollution within the BMW Group’s own
operations.*
The BMW Group assumes responsibility within its supply chain
by monitoring processes and taking action to protect the environ-
ment. A materiality assessment identified risks and impacts in
the supply chain related to soil and water. All guidelines, actions
and targets for actively managing these material impacts and
risks in the supply chain are part of the due diligence process for
upholding environmental and social standards within the sup-
plier network. These are elaborated in ↗ Social and Environmental
Responsibility in the Supplier Network.
The BMW Group’s products themselves do not present any ma-
terial concerns related to air, water, or soil pollution. Further de-
tails about applicable emissions standards can be found in
↗ Consumption and Carbon Disclosures and additional information
about emission technologies in ↗ Innovations and Product Technologies.
During the use phase of the BMW Group’s products, tyre abra-
sion during driving produces microparticles which negatively im-
pact the environment. Ongoing discussions on standardised
methods for measuring tyre abrasion have yet to yield reliable
definitions that accurately and comparably reflect the actual im-
pact of vehicles. For this reason, the BMW Group has not yet es-
tablished specific policies or targets aimed at reducing micropar-
ticles from tyre wear.
Until relevant thresholds are laid down, the BMW Group will be
actively involved in developing measurement procedures for tyre
abrasion and reducing wear levels while working closely with in-
dustry associations. An obligation to meet any future thresholds
will also be included in specifications for tyre suppliers. Systems
are being implemented to establish internal processes for meas-
uring tyre wear. Tyre wear thresholds are expected to be pub-
lished in 2025 in line with the Euro 7 regulations, and will most
likely be mandatory for tire manufacturers from 2028 onwards.
The BMW Group will review these specifications and fully comply
with the resulting requirements concerning tyre abrasion values
through the manufacturers and then provide the disclosures re-
quired under ESRS regarding the quantification of microplastics
generated during driving.
* We have reported on volatile organic compounds (VOC) used in the production process in the
past. This metric is no longer reported due to the switch to ESRS reporting and the resulting cate-
gorisation of air, water and soil pollution as immaterial in connection with our own operations. The
BMW Group will continue to address this issue and monitor it internally. Information about site-
specific solvent emissions will continue to be published in the environmental statements of the
EMAS-certified plants.
133
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Sustainability Statement
RESPONSIBLE USE OF WATER RESOURCES
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Limiting the availability of water and/or harming the ecosystem through water withdrawals within the supply
chain especially in areas of high-water stress.
Negative
Impact
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain (in-
cluding the BMW Group Supplier
Code of Conduct)
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
− Process for responsible raw
material management
↗ Responsible raw material man-
agement
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Preventive and remedial
measures
↗ Complaints procedure
− Analysis of the effectiveness of the
processes and measures imple-
mented
↗ Due Diligence in the supplier net-
work
− Objectives for local projects
↗ Responsible raw material man-
agement
− Commitment to initiatives
− Risk analysis
− Sustainability questionnaire (online
assessment)
− On-site assessments of supplier lo-
cations (on-site assessment)
− Complaints procedure
− Certification and traceability of raw
materials supply chains
− Implementation of local projects
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier
network
↗ Risk analysis and control
mechanisms
↗ Preventive and remedial
measures
↗ Complaints procedure
↗ Responsible raw material
management
Local water scarcity and threat to water supply due to high water intensity in production processes of suppli-
ers and other preliminary products of BMW Group.
Negative
Impact
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with water, specifically water consumption.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with water, specifically water withdrawals.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with water, specifi-
cally water consumption.
Risk
New or changing worldwide government regulations regarding water consumption could require to adjust
operations and therefore increase dependencies and availability due to exclusion.
Risk
− BMW Group Water Strategy
− Environmental policy
↗ Holistic Environmental Manage-
ment within the BMW Group
− Reduce potable water consumption
by 25% by 2030
− Use of alternative water sources
− Water treatment and reuse
− Innovation and technologies for re-
ducing water use
− Risk-based water strategy and
monitoring
Upstream material Own Operations material Downstream material
134
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Sustainability Statement
Using water responsibly is a priority for the BMW Group. The
Company uses comprehensive water management policies and
advanced water-saving and treatment technologies to reduce
water consumption and minimise water stress1 along with the
associated risks. The BMW Group works together with local
stakeholders to ensure that it uses this valuable resource respon-
sibly.
Using potable water economically has long been an essential
component of the BMW Group’s environmental management
system. All of our production facilities are required to reduce wa-
ter consumption and use alternative sources of water, such as
rainwater. The management of and responsibilities for the
BMW Group’s own operations are an integral part of the BMW
Group’s environmental policy. ↗ Holistic Environmental Management
within the BMW Group
All guidelines, actions, and targets for actively managing these
material impacts and risks related to water withdrawal and water
consumption in the upstream value chain are part of the due dil-
igence process for upholding environmental and social stand-
ards within the supplier network. These are elaborated in ↗ Social
and Environmental Responsibility in the Supplier Network.
Water management and water protection
Water is a critical resource in various stages of vehicle production
including paint shop processes. Through the implementation of
water-saving processes and innovative technologies across its
global production network, the BMW Group successfully reduced
water consumption per vehicle by over 30% between 2006 and
2024.
As part of its environmental policy, the Group follows a water
strategy that begins with a detailed analysis of water risks. This
strategy addresses the risk deemed material in the Group’s own
operations. The BMW Group uses the Aqueduct Atlas to identify
sites in regions experiencing high or very high water stress
↗ Measures to reduce water usage. Water risks2 such as flooding are
taken into account in the site assessment process. ↗ Water-related
impacts, risks and opportunities.
The BMW Group’s process for selecting new production sites in-
corporates the responsible management of local water re-
sources. The BMW Group takes a holistic approach to ensure
that protecting water resources is a top priority from the outset.
Hydrological and hydrogeological conditions are analysed during
the site selection process alongside general water availability.
Key considerations include groundwater depth, potential rises in
groundwater and their consequences, groundwater extraction
and flows, and rainwater infiltration options. The geothermal po-
tential of the subsoil is also evaluated in this context.
Engaging in dialogue with affected residents and interest groups
is an important part of the site selection process for the BMW
Group. Insights gained from these discussions are carefully as-
sessed and factored into the BMW Group’s decisions. This ap-
proach helps us to identify potential impacts on communities or
farmers and mitigate them ahead of time with targeted
measures.
The BMW Group assesses water risks based on the potential ef-
fects of water scarcity on its entire production network. Priorities
are established and long-term measures are planned on the ba-
sis of these assessments. Detailed implementation plans are
created to support these measures. These plans detail the
amount of investment required. Location-based monitoring pro-
vides insights that allow us to continuously adjust our measures.
Assessing geographical conditions and collaborating with stake-
holders are an integral part of our planning process. The
BMW Group is planning to install a dry separation system in the
paint shop at the Leipzig plant by 2027 to further reduce water
consumption. The evaluation system we use for our sites is
based on the water stress index and updated as site conditions
change. This allows us to react immediately as situations
emerge. Locations in areas of water stress are identified and
listed in the ↗ Materiality Assessment. The production sites (exclud-
ing motorcycles) of the BMW Group are included in the target
management process as part of the BMW Group’s water strat-
egy.
The BMW Group’s water strategy focuses on both water con-
sumption and water quality. Uniform standards for wastewater
treatment technology apply across the Group in line with national
legislation and applicable limits. In Germany, these include the
Ordinance on Installations for the Handling of Substances Haz-
ardous to Water, the Water Resources Act, the Ordinance on the
Protection of Surface Waters, and the Groundwater Ordinance as
implemented under the Water Framework Directive. Regular in-
spections are performed to ensure that these requirements are
consistently met. Production sites without a connection to a pub-
lic water treatment plant operate their own water treatment facil-
ities.
1 Water stress refers to the ratio of water availability to demand at a given location. Additional infor-
mation is available in ↗ Glossary and Explanation of Key Figures.
2 Water risk includes flooding risks (coastal and surface water) and reputational risks related to en-
vironmental and social matters and compliance with the law. Water risk assessments look at the
quantity and quality of the water that is available, in addition to access to water. Additional infor-
mation is available in ↗ Glossary and Explanation of Key Figures.
135
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Sustainability Statement
The BMW Group is also committed to protecting the oceans.
However, as no material impacts, risks or opportunities have
been identified in this area, the BMW Group is not pursuing any
specific strategies or practices in order to protect marine waters.
Due to the uncertainty surrounding the environmental conse-
quences of deep sea mining, the BMW Group joined the World
Wildlife Fund (WWF) and other companies in 2021 to issue a
joint statement pledging not to extract raw materials from the
deep sea ↗ BMW Group Biodiversity Policy. This commitment extends
to the BMW Group's suppliers and their supply chains.
Water consumption in production reduced again
The BMW Group has set itself the target of reducing the amount
of potable water used in automobile production by 25% by 2030
compared to the base year 2016.1 In the reporting period, spe-
cific ↗ potable water consumption per vehicle in automobile production was
1.67 m3, lower than in the previous year (2023: 1.78 m3/
–6.2%). A continuous decrease in water consumption has been
recorded in line with the planning of the BMW Group.
The BMW Group places great emphasis on reducing water us-
age, and achieves this by using the latest technologies in its wa-
ter treatment and painting processes. Water-saving targets are
voluntarily set for the BMW Group’s own operations on the basis
of technological feasibility studies. Annual site-specific targets
for relative water consumption in vehicle production are defined
and monitored throughout the year to assess progress; this pro-
cess is particularly relevant for management and other on-site
stakeholders, whose opinions and interests are incorporated into
the target-setting process.
The BMW Group evaluates water stress in the areas where indi-
vidual plants are located in addition to its impact on its entire pro-
duction network. If existing measures have successfully allevi-
ated water stress, these findings are integrated into broader
planning and risk assessments. Water stress can thus be contin-
uously reduced and responsible use of water resources ensured.
Potable water consumption per vehicle produced
(automotive)2
in m3
The goal of sustainably decreasing (potable) water consumption
applies across all sites within the BMW Group, regardless of their
location. Targets in this area were defined on the basis of general
environmental conditions and relationships rather than any spe-
cific environmental thresholds. Measures and targets incorpo-
rate water stress analyses performed with the Aqueduct Atlas on
the basis of scientific insights into regional water availability.
Measures to reduce water usage
The BMW Group implements extensive measures to reduce wa-
ter consumption in regions experiencing high or very high water
stress, such as the use of rainwater at the Chennai (India) plant.
All measures are taken to support the BMW Group’s objective of
reducing potable water consumption by 2030. The water con-
sumption in stress-affected regions is also included in the metric
↗ Water consumption in water risk and stress areas. This figure comes to
3,079,270 m3 at the sites in question.
Water treatment and reuse are measures that can play a vital role
in the sustainable reduction of water consumption. Across the
BMW Group, the ↗ total water recycled and reused amounts to
4,778,429 m³. Modern circular systems, such as those used in
paint shops, and cascading systems, which reuse process water
multiple times before painting, significantly reduce freshwater
consumption. The efficient handling of freshwater, wastewater
treatment in paint shops and assembly wash stations, and the
use of slightly contaminated greywater as industrial or process
water decrease wastewater volumes notably. Insights from wa-
ter treatment processes and the targeted use of innovations and
technologies serve to enhance water efficiency. Cascade rinse
systems are being implemented alongside water recycling sys-
tems, while painting systems are being converted from wet
scrubbing to dry separation. During assembly, one of the most
important measures is the recirculation of water in leak test
chambers. This plays a key role in terms of the Group reducing
its water consumption by 2030.
In engine production, measures such as switching to water-
based cooling lubricants and washing baths, the recirculation of
emulsions and washing baths, extending service life through
bath maintenance, and waste water treatment systems for in-
dustrial waste water containing oil and heavy metals all contrib-
ute to the reduction of water consumption. Measures used at
motorcycle production sites include closed-loop treatment sys-
tems, vacuum distillation for recycling process water, and the use
of closed cooling systems and water-saving fixtures. Implemen-
tation of the measures is scheduled for target achievement by
2030.
1 Efficiency target for vehicle production (BMW Group plants, excluding partner plants and contract
manufacturing) based on internal historical data.
2 Additional disclosure. Additional information is available in ↗ Glossary and Explanations of Key
Figures.
1.67
1.78
2.00
0
2024
2023
2016
136
BMW Group Report 2024
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Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
The BMW Group moreover reduces freshwater usage in all pro-
duction areas by leveraging alternative water sources, including
rainwater, recycled process water, and surface water. In Chennai,
India, for example, rainwater is collected during the monsoon
season, which can cover up to 100% of the annual water de-
mand. Similar alternative water use policies are planned for other
BMW Group production facilities.
The BMW Group’s
↗ total water consumption amounted to
5,813,743 m³ in the reporting year. The ↗ water intensity (total wa-
ter consumption in m³ per million € net revenue) is currently
41.35 m³/million €. In addition, as at 31 December 2024, the
BMW Group had a total amount of 455,525 m³ of ↗ stored water
in systems including extinguishing water or rainwater tanks.
Water consumption*
in m3
2024
Total water consumption
5,813,743
Total water consumption in areas at water risk, including
areas of high water stress
3,079,270
Total water recycled and reused
4,778,429
Total water stored
455,525
Changes in storage during the year
333,720
The implementation of the water strategy and associated objec-
tives follows a risk-based approach that accounts for regional
specificities. The BMW Group takes particular care to implement
additional measures to reduce water consumption in regions ex-
periencing high or very high water stress. These measures in-
clude the extensive use of rainwater at the Chennai plant in India
and the process water-free paint shop at the San Luis Potosí pro-
duction site in Mexico.
The BMW Group ensures that the water strategy and its targets
are implemented by making sure that the necessary resources
are properly allocated. The investment planning of the Group in-
cludes drawing up a detailed plan of all of the measures which
are required and the necessary capital and operating expenses.
Continuous site-specific monitoring ensures that targets are met.
Close collaboration and regular communication with stakehold-
ers provide a forum for identifying potential water risks and tak-
ing appropriate countermeasures, particularly in regions with
high water stress. Water risks are also taken into account in the
early stages of the process of selecting sites.
The BMW Group performs water risk analyses using tools like the
Aqueduct Atlas to identify high-risk areas and derives priorities
for specific actions from these analyses. This process also in-
volves assessing the potential cost of forced downtime due to
water shortages. Implementing a coordinated set of measures to
conserve water and improve water quality contributes to mitigat-
ing water stress at affected sites. This approach also reduces the
amount of financial risk to which the Company is exposed.
* Additional information is available in ↗ Glossary and Explanation of Key Figures.
137
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Other Information
Sustainability Statement
COMMITMENT TO PROTECTING BIODIVERSITY
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Usage of primary raw materials impacts nature and biodiversity in extraction areas (e. g. mining).
Negative
Impact
− Biodiversity Policy
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain (in-
cluding the BMW Group Supplier
Code of Conduct)
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
− Process for responsible raw mate-
rial management
↗ Responsible raw material man-
agement
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Commitment to deforestation-free
procurement
− Commitment to initiatives
− Implementation of local projects
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
− Process for responsible raw mate-
rial management
↗ Responsible raw material man-
agement
Contribution to biodiversity loss through the direct exploitation and use of invasive resource extraction meth-
ods in the supply chain (clearing, building infrastructure around (deep sea) mining and producing sites).
Negative
Impact
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with direct impact
drivers of biodiversity loss, specifically direct exploitation.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with direct impact drivers of biodiversity loss, specifically direct exploitation.
Risk
Opportunities and financial benefits from increasing the supply chain resilience with respect to direct impact
drivers of biodiversity loss, specifically direct exploitation, including independence from volatile markets or
prevention of potentially supply-disrupting events.
Opportunity
Upstream material Own Operations material Downstream material
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Sustainability Statement
As part of its materiality assessment, the BMW Group identifies
and evaluates potential impacts, risks and opportunities related
to biodiversity. The assessment did not identify any negative im-
pacts related to land degradation, desertification, soil sealing, or
endangered species.
In terms of the BMW Group’s own operations, the assessment
found that the BMW Group’s environmental management sys-
tem is effective in ensuring that no material topics were identified
in direct connection with the Group’s operations. An analysis*
showed that the BMW Group's own operations do not have a sig-
nificant negative impact on nearby protected areas.
In the supply chain, however, the extraction of raw materials was
identified as a material topic. The BMW Group is currently as-
sessing whether any risks exist in this area and what actions may
be required to minimise negative impacts on biodiversity.
Great importance of intact ecosystems
The BMW Group acts in line with the aims of the EU Biodiversity
Strategy and the Kunming-Montreal Global Biodiversity Frame-
work. An internal guideline on protecting biodiversity and ecosys-
tems informs the actions of both the BMW Group and its supply
chain. This guideline refers to the material impacts, risks and op-
portunities that have been identified, and lays out the
BMW Group’s position on biodiversity. ↗ BMW Group Biodiversity
Policy
The department for Sustainability and Mobility is responsible for
the Group’s approach to biodiversity. Implementation of the rel-
evant topics relating to the supply chain is the responsibility of
the Supply Chain Sustainability department.
Holistic approach to sustainability targets
Climate change is impacting land and marine ecosystems
around the world and jeopardising the stability of natural habi-
tats. This ultimately represents a threat to biodiversity itself. Be-
cause of this, it is vital for the BMW Group to have targets for re-
ducing its CO2e emissions that are both measurable and science-
based, and to ensure that these targets are firmly integrated into
its strategy. The BMW Group has set itself the target of signifi-
cantly reducing the CO2e emissions of its products over their en-
tire life cycle by 2030. ↗ Climate change mitigation and adaptation as a
key part of the corporate strategy
The BMW Group has defined clear targets to counteract the main
causes of biodiversity loss. Particular attention is paid to climate
change mitigation, conserving resources, improving water effi-
ciency and environmental protection, and responsible land use.
A general framework related to issues like land use is provided in
an internal company document on the use of renewable raw ma-
terials in product components.
The use of marine resources was not considered to be a material
topic for the BMW Group. Further information on the statement
against the extraction of deep sea minerals can be found in the
↗ BMW Group Biodiversity Policy.
Unlike CO2e emissions, there is currently no standardised scale
for measuring biodiversity loss. This is probably due to the fact
that these factors are valued and assessed differently in different
parts of the world. Furthermore, there is no standard method for
adding up local impacts on biodiversity to arrive at a global im-
pact level. This makes it more difficult to set impact-based and
quantitative targets that can serve as a starting point for devel-
oping scenarios and assessing them from a business perspec-
tive, implementing actions, and finally measuring their progress.
The BMW Group believes that reducing our use of primary raw
materials puts us in a position to have a positive impact by low-
ering our consumption of natural resources and actively contrib-
uting to the preservation of biodiversity. The circular economy
strategy sets out clear principles in this area. In addition, the aim
is to strengthen the supply chain with regard to secured sources
of secondary raw materials and to examine the even more ex-
tensive use of secondary raw materials. For further information,
see ↗ Circular Economy and Resource Use.
The BMW Group's environmental management system has the
potential to influence the stability of ecosystems. Water use and
resource efficiency are key topics that are addressed in
↗ Responsible Use of Water Resources and the ↗ Holistic Environmental
Management within the BMW Group.
Measures to protect biodiversity
Compliance with environmental and social standards across the
BMW Group’s own operations and supply chain is a core element
of the Group’s corporate policy. The BMW Group's current
measures are based on the logic of the reduction hierarchy: avoid
– reduce – compensate. Priority is given to avoiding negative im-
pacts on biodiversity and ecosystems wherever possible. The
BMW Group considers compensation to mean restoration and
improvement, often in the form of on-site projects. Offsetting
measures are not used for biodiversity management purposes.
The BMW Group has implemented a multistage due diligence
process in the supply chain to minimise risks and negative im-
pacts. Internal guidelines and procedures, such as the BMW
Group Supplier Code of Conduct, address biodiversity and in-
clude clear provisions on the handling of critical raw materials.
Additional details as well as information on the monitoring pro-
cess are available in ↗ Social and Environmental Responsibility in the
Supplier Network and ↗ Responsible raw material management.
* Additional information is available in ↗ Glossary and Explanation of Key Figures.
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As part of its commitment to deforestation-free procurement, the
BMW Group adheres to EU regulations and relevant industry
standards. The Company takes a clear stance against deforesta-
tion and forest degradation in its supply chains in the ↗ BMW Group
Anti-Deforestation Policy. This policy addresses the extent of the
BMW Group’s commitment, the scope of the policy as well as due
diligence and traceability measures, complaint and monitoring
mechanisms, and material-specific requirements. Safeguarding
measures are used in the supply chains for relevant materials
such as natural rubber, leather, paper, and wood.
In addition to complying with legal requirements, the BMW Group
joined the Global Platform for Sustainable Natural Rubber
(GPSNR) multi-stakeholder initiative in 2019. The aim of the
GPSNR is to prevent deforestation and forest degradation as a
result of the cultivation of natural rubber. This commitment is set
out in the BMW Group's High Level Commitment for sustainable
natural rubber. The BMW Group is also part of the Leather Work-
ing Group (LWG). As a signatory to the “Deforestation Free Call
to Action for Leather” of the LWG, Textile Exchange and WWF
the BMW Group is committed to sourcing cowhide (including
stamped parts) and components containing cowhide from sup-
ply chains that are free from deforestation and land conversion
by 2030.
When selecting and assessing measures to protect biodiversity,
the BMW Group consults stakeholders such as local communi-
ties and indigenous people. It takes part in initiatives like the Liv-
ing Rubber natural rubber project in Indonesia to empower af-
fected communities. In order for the BMW Group’s projects in this
area to be effective, it is committed to actively involving local
communities in the design and subsequent implementation of
on-site projects. ↗ Social and Environmental Responsibility in the Supplier
Network, ↗ Stakeholder Engagement
Resilience analysis
In view of the importance of the protection of biodiversity and
ecosystems, the BMW Group performs a comprehensive as-
sessment of the resilience of its strategic and business model to
physical and transitory risks associated with biodiversity. This in-
volves a thorough evaluation of the entire value chain and metic-
ulous analyses.
The materiality assessment served as a key indicator for identi-
fying potential areas of action related to biodiversity. One of the
key concerns identified was the extraction of raw materials. Po-
tential short-term risks to individual stages of the supply chain
are identified as part of the resilience analysis. This approach
was used to assess the long-term resilience of the BMW Group’s
strategy and business model to these risks.
The guidelines of the Taskforce on Nature-Related Financial Dis-
closure (TNFD) provided the basis for the scenarios used for this
purpose. Various scenarios for the year 2035 were analysed
with different characteristics related to the decrease in biodiver-
sity and market coherence. The probability of occurrence of these
scenarios was very low, which is why they were not assessed in
the resilience analysis. In all other scenarios, the BMW Group’s
business model was resilient to physical and transitory biodiver-
sity risks. Uncertainties and factors were identified in collabora-
tion with internal and external stakeholders to serve as the basis
for the development of the scenarios.
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CIRCULAR ECONOMY AND RESOURCE USE
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Waste management of the increasing amounts of hazardous waste at Tier-1-Supplier sides (e.g. batteries)
and incorrect disposal in the supply chain, including e.g. battery and electronics production, imposes detri-
mental impacts of the environment and society.
Negative
Impact
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain (in-
cluding the BMW Group Supplier
Code of Conduct)
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Preventive and remedial
measures
↗ Complaints procedure
− Analysis of the effectiveness of the
processes and measures imple-
mented
↗ Due Diligence in the supplier net-
work
− Commitment to initiatives
− Risk analysis
− Sustainability questionnaire (online
assessment)
− On-site assessments of supplier lo-
cations (on-site assessment)
− Complaints procedure
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Due Diligence in the supplier net-
work
↗ Risk analysis and control mecha-
nisms
↗ Preventive and remedial
measures
↗ Complaints procedure
Circular economy business models and products slow down the usage of natural and limited resources and
reduce landscape and habitat disruption.
Positive
Impact
− BMW Group Circular Economy
Strategy
− None yet
− Increased share of secondary mate-
rials
− Improved recyclability
− Expansion of repair and repro-
cessing
− Investments in innovative recycling
technologies
New regulations could require BMW Group to design products which meet additional recyclability require-
ments (e.g. increased dismantling or restricting choice of certain materials) or incorporate recycled materials
which may be in short supply, leading to increased product costs.
Risk
A product made without circular principles and with high embodied Carbon footprint of materials might lead
to unfavorable market access, where regulatory requirements exist (for e.g. EU battery and End of Life Vehi-
cle regulations).
Risk
Non-compliance regarding the usage of non-regenerable resources due to increasingly stringent regulations
could lead to liabilities, penalties, fines, reputational damage or the loss of licenses and permits for BMW
Group.
Risk
Financial opportunites and competitive advantages through innovation, research and development with re-
spect to resources inflows, including resource use.
Opportunity
Possible policy instruments which favor use of low carbon footprint materials (carbon pricing) or favor recy-
cled content (e.g. US IRA) could make the products eligible for financial incentives.
Opportunity
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Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
The use of non-renewable primary raw materials impacts worldwide depletion of natural resources as well as
the nature and communities at the mining location.
Negative
Impact
− Process for responsible raw mate-
rial management
↗ Responsible raw material man-
agement
− Raw materials strategy
↗ Raw materials security and strat-
egy
− BMW Group Supplier Code of Con-
duct
↗ Due Diligence in the supplier net-
work
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Preventive and remedial
measures
↗ Complaints procedure
− Analysis of the effectiveness of the
processes and measures imple-
mented
↗ Due Diligence in the supplier net-
work
− Objectives for local projects
↗ Responsible raw material man-
agement
− Risk analysis
− Certification and traceability of raw
materials supply chains
− Commitment to initiatives
− Implementation of local projects
↗ Social and Environmental Re-
sponsibility in the Supplier Network
↗ Responsible raw material man-
agement
− Complaints procedure
↗ Complaints procedure
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with resources in-
flows, including resource use.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with resources inflows, including resource use.
Risk
Opportunities and financial benefits from increasing the supply chain resilience by direct purchasing of raw
materials.
Opportunity
Upstream material Own Operations material Downstream material
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Holistic approach for the transition to a circular economy
The circular economy is one of the strategic focus areas for the
BMW Group as an automobile manufacturer. Making greater use
of secondary material is therefore a pillar of ↗ The BMW Group
Strategy. The BMW Group is committed to reducing its use of pri-
mary materials and fostering the circular economy in order to re-
duce CO2e emissions as well as the environmental and social im-
pacts associated with the extraction and processing of primary
raw materials. At the same time, dependencies on critical pri-
mary raw materials will be reduced. In addition, using secondary
materials can provide economic advantages and hedge against
geopolitical risks and regional restrictions by reducing our reli-
ance on primary materials.
BMW Group vehicles are already manufactured with recycled
and reused materials. Against the backdrop of volatile raw ma-
terials markets and increasing global competition for limited re-
sources, the BMW Group is implementing further measures to in-
crease the proportion of recycled materials that it uses and
thereby promote the expansion of the circular economy. These
efforts are supported by guidelines for product, material and sup-
plier requirements. The circular economy necessitates holistic
thinking – from product development to vehicle recycling.
For the BMW Group, the responsible use of raw materials is an
important part of our daily activities as a manufacturing com-
pany. ↗ Responsible raw material management The material impacts,
risks and opportunities associated with the use of resources arise
primarily from their procurement markets, climate change miti-
gation targets, regulations relating to product or process require-
ments, and the opportunities related to a reduction in the de-
mand for raw materials. The BMW Group considers the use of
resources to be closely linked to the preservation of biodiversity,
particularly when it comes to land use and pollution. ↗ Commitment
to protecting Biodiversity Information on the supply chain, such as
due diligence in the supplier network (including waste manage-
ment), is available in ↗ Social and Environmental Responsibility in the
Supplier Network.
The BMW Group’s objective is to reduce its dependency on pri-
mary raw materials. The automotive industry uses a wide range
of raw materials, particularly steel, aluminium and thermoplas-
tics. Electrified vehicles use raw materials like lithium, nickel and
cobalt in their batteries. The BMW Group has introduced a raw
materials management system, including an annual risk analysis
for critical raw materials, for the responsible procurement of raw
materials. One approach is to reduce the use of critical virgin raw
materials. ↗ Responsible raw material management The BMW Group’s
secondary raw materials usage strategy (Secondary First) is of
vital significance in this context.
The waste disposal and recycling industry already recycles end-
of-life vehicles, but only together with other products. A large pro-
portion of the recycled materials obtained from these products
are therefore no longer suitable for use in automotive engineer-
ing. This results in downcycling in the material cycle. To reduce
the automotive industry's dependency on primary raw materials,
it is therefore vitally important to improve the quality and availa-
bility of recycled materials across the board. The complex chal-
lenges posed by the limited availability of high-quality secondary
materials and the need to make entire economies and busi-
nesses less dependent on the use of primary raw materials can
only be met by policy makers working together with industry, raw
material producers, recyclers and recycling companies.
The BMW Group’s Strategy in the area of sustainability therefore
has a particular focus on reducing its consumption of primary raw
materials. This is mainly achieved by making increased use of
secondary materials with lower CO2e emissions and the optimi-
sation of resource efficiency. The four strategic core elements
covered below have been approved by the Board of Manage-
ment.
The core elements relate to the material impacts, risks and op-
portunities related to resource use and the circular economy.
↗ List of material Impacts, Risks and Opportunities. The strategy has a di-
rect impact on suppliers and recycling companies in the up-
stream and downstream supply chain. The underlying material-
ity assessment is updated annually. The progress that has been
made with implementing the strategy is reviewed on a regular
basis. Information about how the concerns of different stake-
holder groups are taken into account can be found in ↗ Stakeholder
Engagement.
Milestones along the road to the circular economy
The BMW Group has set clear decarbonisation targets for itself
↗ Climate change mitigation and adaptation as a key part of the corporate
strategy. To achieve this, the BMW Group is reducing CO2e emis-
sions throughout the whole life cycle of its products. Increasing
the use of secondary materials and implementing new processes
in the production of primary raw materials, such as CO2e-reduced
steel production, are helping to achieve the BMW Group’s CO2e
emission reduction targets in the supply chain as planned.
Already today, BMW Group vehicles are manufactured using re-
cycled and reused materials to varying degrees. In line with the
Secondary First approach, we aim to increase the use of second-
ary materials going forward, starting with the NEUE KLASSE.
This approach will take both technical feasibility and market
availability into account. The BMW Group is currently working on
a data model and Group-wide metrics and targets that will make
the use of resources even more transparent and help to close
material cycles. The Group’s aim is to transparently map and
manage the complex relationships between market availability,
internal and legal requirements as well as the material flows of
secondary materials. A corresponding target is currently being
defined at the Group level. Expected new legislation, such as the
proposed regulation on the follow-up legislation to the current EU
End-of-Life Vehicles Directive, are taken into account alongside
international standards.
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The effectiveness of the defined strategies and actions in relation
to the material impacts, risks and opportunities associated with
resource use and the circular economy is currently measured and
tracked on the basis of the contribution to the CO2e reduction tar-
get for Scope 3 emissions (according to the Greenhouse Gas
Protocol). The progress made in achieving this target compared
to the 2019 base year is reported in ↗ Climate change mitigation and
adaptation as a key part of the corporate strategy. The BMW Group plans
to make the following internal targets components of a future
Group-wide target in accordance with ESRS.
Internal targets for the implementation of a circular economy will
be set for future models (from the NEUE KLASSE onwards) at
product level. Based on the four strategic core elements, the fo-
cus is on circular product development in accordance with Design
for Circularity, in which the use of secondary raw materials (Sec-
ondary First) is implemented as a guiding principle in the devel-
opment process.
At the component level, the Design for Circularity principle is be-
ing implemented by the “full Vehicle Development” corporate
function in an operational concept so that it can be systematically
applied in the development of new models (from the NEUE
KLASSE onwards). Within the framework of selected product,
material and supplier requirements, we have therefore decided
to give preference to secondary materials in our future vehicles.
The BMW Group has standards that define minimum require-
ments for the secondary material content for materials such as
steel, aluminium, plastic and copper. Secondary and primary ma-
terials must meet the same high standards of quality, safety and
reliability. However, the current availability of suitable secondary
materials is limited due to increasing demand and the high qual-
ity standards that need to be met for automotive applications.
Measures for the responsible use of resources
For the BMW Group, the responsible use of resources is an es-
sential part of our claim as a manufacturing company. See, for
instance, ↗ Responsible raw material management, ↗ Responsible Use of
Water Resources
The ↗ Resource inflows including process materials used to manufacture
automobiles amount to 14,804,645 t. The main materials used
by the BMW Group in its production processes are steel, alumin-
ium and thermoplastics.
Water, auxiliaries and operating materials are also relevant pro-
cess materials. Compared to the total volume of materials used,
biological materials play a minor role in terms of overall quantity.
Therefore, 0.0% of the total resource inflows are ↗ sustainably
sourced biological materials. ↗ Reused and recycled secondary components,
products and materials account for 37.0% (5,476,984 t). Automo-
biles are the main products of the BMW Group for this report. In
the future, motorcycles will also be included in the reporting pro-
cess. In terms of the total volume of materials used, motorcycles
represent a negligibly small share.
Ready for Circularity
Group-wide empowerment of automotive
production for the circular economy
across the entire value chain
Closing the Loop
Establishing and promoting closed loops for certain
components and materials in order to keep them as
a source of secondary
materials in various material loops
4
1
Secondary First
Increase the share of
secondary material in vehicles,
thereby reducing the share of primary
material in the value chain,
expanding the transparency for vehicle data
Design for Circularity
Consistent alignment of
product development with regard to
circularity
3
2
Key strategic elements for the transition to a circular economy
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The key actions driving the transition to a circular economy over
the next years are outlined below.
The BMW Group has launched some comprehensive prepara-
tory initiatives in line with the "Ready for Circularity" principle.
These will serve as a foundation for achieving closed material
loops within the Company and across its value chain. These ini-
tiatives span research and development, material procurement,
supplier qualification, production, sales, the product use phase,
and optimised use of materials and components at the end of a
product’s life cycle. These initiatives focus on continuously en-
hancing expertise and implementing measures related to vehicle
development with the aim of increasing the use of secondary ma-
terials and promoting circular economy-friendly product design.
To advance a circular approach to product development, the
BMW Group is committed to drawing up global strategies for ma-
terials and components, with a particular focus on key materials
such as steel, aluminium, battery materials, and thermoplastics.
The BMW Group is building up its expertise and technical capa-
bilities in the area of high-voltage storage (HVS) system recy-
cling. This includes planning dismantling processes, testing re-
cycling technologies, and integrating these insights into the bat-
tery development process. To maximise resource conservation,
the BMW Group is drawing up requirements for diagnosing and
reusing used components, including high-voltage storage sys-
tems.
Another key initiative involves creating a data model based on
digital twins, which is designed to facilitate material tracking from
the end of a product’s life cycle and to ensure that the circular
economy is transparent. This data model will also support the
verification of secondary raw materials by suppliers and the ful-
filment of disclosure requirements. We expect this data model to
facilitate cross-Company data exchange in the medium term.
Other examples of measures can be found at a vehicle project
level. The ambitions of the BMW Group are further exemplified in
the BMW i Vision Circular, which was unveiled at the IAA in 2021.
This concept vehicle is mostly made from recycled or renewable
raw materials. Some of the insights gained from this project are
also being incorporated into the NEUE KLASSE. Beginning in
2025 for example, requirements for the proportionate use of
secondary materials for battery cell materials such as cobalt, lith-
ium and nickel will be imposed as soon as the contract is
awarded. The NEUE KLASSE will also contain a higher propor-
tion of secondary materials in other material groups such as steel
and aluminium. Starting in 2023 with the BMW 5 Series, the
BMW Group has disclosed the share of secondary materials in its
new vehicles as part of life cycle assessments ↗ Vehicle footprint.
Since 2024, the MINI Countryman has used cast wheels contain-
ing 70% secondary aluminium, measured using the mass bal-
ance method.
For the BMW Group, circularity involves a comprehensive strate-
gic approach. The circular economy is considered in the develop-
ment of products, taking into account their recyclability at the end
of their use phase (Design for Circularity). This approach follows
key principles that promote the use of secondary materials and
make vehicles easier to dismantle and recycle.
With the “Design for Circularity” strategy, resource conservation
is addressed during the vehicle development phase. This en-
sures that circular economy principles are embedded in the prod-
uct development process from the outset. Design for Circularity
also lays the groundwork for recovering high-quality secondary
materials at the end of a vehicle’s life. Components are designed
and developed to include a defined proportion of secondary raw
materials whenever possible. This approach also focuses on se-
lecting recyclable plastic materials during the development pro-
cess that facilitate a high-quality recycling process at the end of
the vehicle's life. Improved dismantling concepts make it faster
and more cost-effective to disassemble parts and reintegrate
materials into the parts and materials cycle.
Used components need to be refurbished and materials recycled
to fully close the loop. A prime example of this holistic approach
is the BMW Group’s remanufacturing process, where used parts
are reconditioned and given a second life.
The BMW Group has held a 50% stake in the joint venture En-
cory GmbH since 2016. Encory provides comprehensive circular
economy solutions, processes, and products in the aftersales
sector. The company develops and implements logistics and
consulting solutions, particularly for the collection, recycling, and
refurbishment of spare parts. Whenever feasible and practical,
defective parts are retrieved in select European markets (in ad-
dition to some other markets, like China) in partnership with the
joint venture. All suitable parts undergo a refurbishment process
before being reintroduced into the spare parts cycle as remanu-
factured components. Worn or damaged parts are disassembled
by refurbishment partners instead of being completely replaced.
Selected components are then cleaned, mechanically processed
or replaced as needed, before being reassembled into a spare
part. This process provides high-quality replacement parts that
offer a number of advantages, such as reducing our use of valu-
able raw materials, cutting emissions and saving energy. reduc-
ing the environmental footprint of spare parts and helping the
Group to manage resources responsibly.
The BMW Group operates its own vehicle recycling facility at the
Recycling and Dismantling Centre in Lohhof near Munich (Ger-
many) to promote best practices in vehicle recycling while con-
tinuously learning about and implementing the latest recycling
technologies. Each year, thousands of vehicles are systemati-
cally dismantled and efficiently processed at this site. Most of
these vehicles are pre-production vehicle models that are no
longer required for testing purposes. The focus of the entire pro-
cess is on identifying reusable series components and disman-
tling components that are suitable candidates for recycling. The
disassembly process begins with deactivating restraint systems
and draining fluids. Functional components used in mass-pro-
duced models are then passed on to registered retail partners,
eliminating the need for disposal. During the mechanical disman-
tling of the remaining vehicle, materials like copper, which have
a significant impact on recyclability, are separated out. Once the
engine block and transmission have been removed, the rest of
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the vehicle structure is pressed and shredded. This method guar-
antees that today’s scrap becomes tomorrow’s raw materials.
Insights gained at the Recycling and Dismantling Centre regard-
ing the recyclability of components and materials are already be-
ing integrated into the BMW Group’s product development pro-
cesses.
The BMW Group actively promotes recycling waste, including
end-of-life vehicles, to keep materials in circulation for longer;
this includes reusing them to produce new automobiles. In the
reporting year, the materials from the vehicles (including motor-
cycles) taken back by the Munich Recycling and Dismantling
Center were 85% in material form1 and 95% including thermal
processing1 recycled. This corresponds to a total scrapping
weight for vehicles (including motorcycles) of 7,263 t1. In relation
to sold automobiles and motorcycles, 85%2 of materials are re-
cycled as stipulated by legal requirements (European End-of-
Life Vehicles Directive ELV 2000 /53 /EC). At least 95%1, 2 of
sold automobiles can be recycled (including thermal utilisation).
Together with its national sales companies and importers, the
BMW Group has already organised the return of end-of-life vehi-
cles for recycling at more than 2,800 collection points in 32
countries. Research in this area is being stepped up in terms of
the technology being used, processing efficiency, and costs in or-
der to drive forward improvements in the recycling of end-of-life
vehicles. The Car2Car project focuses on the recycling of alumin-
ium, steel, glass, copper and plastic from end-of-life vehicles.
This project began in January 2023 and is expected to run until
December 2025. Together with representatives of the recycling
industry, raw materials processors, and the scientific community,
the BMW Group is leading a project to improve the quality of sec-
ondary raw materials obtained from the recycling of end-of-life
vehicles. Innovative dismantling and automated sorting pro-
cesses will enable recyclable materials to be extracted to a far
greater extent than previously. As part of the funding project, the
BMW Group provided 433 end-of-life vehicles in 2023. In order
to cover a representative range, various models out of the
BMW Group’s own inventories are used from different
BMW Group brands with combustion engines, plug-in hybrid
systems, and all-electric drivetrains.
In order to increase resource efficiency, avoid waste, and keep
materials permanently and efficiently in the loop, the BMW Group
is expanding its closed loops to include materials to which the
Company has direct access. This includes recycled materials
from production and the sales organisation. Selected materials
from production and the sales organisation are returned to se-
lected material suppliers on an ongoing basis. Production resi-
dues generated during production can be on the one hand waste
that can be processed and fed back into the production cycle as
well as materials not considered as waste that can be reused di-
rectly without the need for processing. This approach makes it
possible to recover recyclable materials like steel or aluminium
and make them available as raw materials for new production
processes.
The Chinese subsidiary BMW Brilliance Automotive Ltd. estab-
lished a collection and recycling network for high-voltage storage
(HVS) systems in 2022 to reduce the amount of primary materi-
als used to produce new HVS systems. Work began on imple-
menting a network of this kind in the European Union in the re-
porting year. Similar networks will be gradually established over
the next years in the USA and elsewhere. The BMW Group plans
to use HVS materials as secondary material for the production of
new HVS cells.
In addition to actions in its own operations and in the value chain,
the BMW Group supports innovation within the ecosystem by in-
vesting in start-ups to test out new innovations with the aim of
bringing them to the mass market. Through BMW i Ventures, the
BMW Group has invested in a number of pioneering companies
which focus on resource use and resource efficiency. Cyclic Ma-
terials is developing a recycling process that reintegrates rare
earth elements (REEs) into manufacturing. This innovation helps
reduce the environmental impact of the global energy transition,
as REEs play an essential role in the production of electrified ve-
hicles. DeepDrive has created a cost-efficient, resource-efficient
dual-rotor electric motor for vehicles. This motor increases the
range of vehicles, delivers high torque density, and requires
fewer natural resources. Lilac Solutions is developing an ion-ex-
change lithium extraction technology with enhanced recovery
rates, reduced impurities, and lower acid consumption. Man-
grove Lithium is working on an electrochemical process for
producing high-purity, battery-grade lithium hydroxide more
cost-effectively. Our Next Energy is designing batteries with im-
proved range and lower production costs.
The BMW Group is also investing in research and innovation pro-
jects to implement closed material cycles for certain product
groups. The Circular Republic initiative, formed by the organisa-
tion UnternehmerTUM and the BMW Group in 2023, focuses on
the transfer of knowledge between the world of science and com-
panies to promote the circular economy. During the reporting
year, the BMW Group continued to promote various formats and
joint projects.
The BMW Group also focuses on the reparability of its manufac-
tured products. During the product development phase, the BMW
Group already places a strong emphasis on ensuring its products
can be repaired and that the components in its vehicles can be
disassembled in a non-destructive manner.
1 Additional disclosure, based on SASB ↗ SASB Index.
2 The percentages relate to the legal minimum requirements. In practice, higher recycling/recovery
rates are also possible due to differences between vehicle versions and/or recycling/recovery pro-
cesses.
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Extensive repair manuals and documentation are made availa-
ble to all specialist workshops. The BMW Group provides a
benchmark catalogue which can be used to categorise damage.
This provides guidance on whether and how repairs can be con-
ducted, including the tools required. This catalogue can be used
in combination with a visual inspection or measurement technol-
ogy. A comprehensive vehicle diagnostic system can be used to
pinpoint the cause of issues in connected electronic and electrical
components. This makes it possible to get vehicles back on the
road by replacing individual parts. Specialised spare parts for
motorcycles (such as pistons and connecting rods) are provided
to simplify complex repairs and significantly reduce repair times.
The ease with which products can be repaired also has an impact
on their ↗ expected durability. According to the BMW Group’s end-
of-life vehicle statistics, the average age of automobiles volun-
tarily returned to recycling centres is around 21.5 years. The in-
dustry average is around 18 years, according to an analysis by
the German Federal Environment Agency.
The longevity of the vehicles produced is based on a number of
pillars, which are described below:
In order to maximise the useful life of its products, the
BMW Group offers protection against the cost of unexpected re-
pairs, such as the BMW 2+1 warranty for 36 months and other
warranty services. BMW customers in Europe benefit from the
fact that defects can be fixed under warranty at the original retail
partner, or any other BMW Group recognised partner in the ser-
vice network. In addition to the statutory warranty obligations,
the BMW Group has given customers worldwide the right to have
defects rectified in the event of corrosion within twelve years of
the start of the quality period since 2004. The BMW Group also
attaches particular importance to ensuring the long-term availa-
bility of spare parts to keep customers’ cars on the road and
make sure that they retain their value over a long period of time.
The BMW Group currently offers several hundred thousand dif-
ferent spare parts for automobiles and motorbikes. In addition,
Condition Based Services (CBS) uses sensors and special algo-
rithms to monitor the condition of every BMW Group car. De-
pending on the customer's driving profile, the service life of
maintenance components can thus be optimally utilised.
Effective waste management
Waste management is part of the BMW Group’s holistic ap-
proach to a circular economy and the environmental manage-
ment system at its own production sites. Reducing the amount of
waste for disposal per vehicle produced is an objective of the
BMW Group’s environmental policy. The BMW Group intends to
reduce the amount of waste for disposal per vehicle produced by
25% by 2030 compared to the base year 2016. No material im-
pacts, risks or opportunities related to this topic have been iden-
tified for our own operations. The relevant disclosures are there-
fore provided in addition to ESRS on the basis of SASB, ↗ SASB
Index.
Waste for disposal per vehicle produced (automotive)1, 2
In the reporting period, a total of 868,084 t of the waste gener-
ated in production was recycled or recovered (2023:
922,554 t)1. Of the total volume of waste, 91.7%1 (800,582 t)
was recycled (material recovery) and 7.7%1 (67,502 t) was ther-
mally recovered. ↗ The amount of waste for disposal per vehicle produced
fell significantly by –20.8% year on year to 1.68 kg (2023:
2.12 kg).1
Waste generated by production1, 2
in t
2024
Total waste
872,976
Waste for recovery
868,084
Share of material recovery (in %)
91.7
Share of thermal recovery (in %)
7.7
Waste for disposal
4,892
Share of disposed waste (in %)
0.6
The BMW Group is also committed to the responsible use of re-
sources within the supply chain. Established processes and ac-
tions help to minimise the material impacts identified here. All
relevant policies, actions and targets for mitigating and manag-
ing impacts identified as material in the upstream value chain are
identified as part of the due diligence process for upholding en-
vironmental and social standards within the supplier network.
↗ Social and Environmental Responsibility in the Supplier Network
1 Additional disclosure, based on SASB ↗ SASB Index.
2 Additional information is available in ↗ Glossary and Explanation of Key Figures.
1.68
2.12
3.51
0
2024
2023
2016
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EU TAXONOMY
Within the framework of the implementation of the European
Green Deal and the Action Plan “Financing Sustainable Growth”,
the EU Taxonomy is a cornerstone of the EU’s aspiration to be-
come climate neutral by 2050. It aims to channel investment to-
wards activities that are required to achieve climate neutrality.
The EU Taxonomy is a classification system that defines eco-
nomic activities as environmentally sustainable based on fulfil-
ment of predetermined technical assessment criteria.
An economic activity can only be classified as sustainable if it
substantially contributes to one of the following six environmen-
tal objectives:
I.
Climate change mitigation
II. Climate change adaptation
III. Sustainable use and protection of water and marine re-
sources
IV. Transition to a circular economy
V. Pollution prevention and control
VI. Protection and restoration of biodiversity and ecosystems
Moreover, no other environmental objective may be significantly
harmed during performance of the activity and the company
must observe minimum safeguards, among them compliance
with human rights. Since the 2022 reporting year, the
BMW Group has reported on the Taxonomy-eligible and Taxon-
omy-aligned proportion of its revenues, capital expenditure and
operating expenditure for Environmental Objectives I and II.1 Fol-
lowing the publication of the Delegated Regulation 2023/2486,
the BMW Group reported the proportion of Taxonomy-eligible
revenue for Environmental Objective IV (Transition to a Circular
Economy) for the first time in the previous year. No economic ac-
tivities of relevance for the BMW Group have been defined for the
other environmental objectives. The BMW Group will be required
to report on Taxonomy alignment for all relevant environmental
objectives from reporting year 2024 onwards.
Our holistic understanding of sustainability
The BMW Group supports the overarching goal of the EU Tax-
onomy to promote the private financing of environmentally sus-
tainable economic activities in order to make Europe the world’s
first climate-neutral continent by 2050. The BMW Group aims to
achieve net zero carbon emissions across the entire value chain2
(Scope 1, 2 and 3) by no later than 2050. ↗ Transition plan to achieve
Net Zero emissions by 2050
The BMW Group developed a holistic approach for this purpose
that looks at the CO2e emissions of vehicles over their entire life
cycle. The CO2e targets are integrated into the BMW Group’s
control system.
Due to the continuously growing proportion of all-electric vehicles
in the BMW Group’s range, emissions in the supply chain will in-
crease in the short to medium term. The main reason for this is
the higher product carbon footprint of the high-voltage battery
compared to conventional drivetrain concepts. In the manufac-
turing process, the BMW Group therefore relies on electricity
from renewable sources3, recycled materials and technical
measures that have been developed to limit the increase in CO2e
in the supply chain.
However, for the economic activities that are relevant to the
BMW Group, the EU Taxonomy focuses exclusively on reducing
carbon emissions during the use phase that are attributable to
low-emission (until 2025) and emission-free drivetrain systems.
Indirect carbon emissions, for instance those produced when
generating charging current or during the energy-intensive pro-
duction of high-voltage batteries, are not taken into account in
the context of these economic activities. Moreover, the EU Tax-
onomy only reflects the impact of decarbonisation measures on
in-house production to the extent that they serve to manufacture
Taxonomy-aligned products or to the extent that they are explic-
itly included in the description of an activity. Increasing the energy
efficiency of paint-shop processes, for example, reduces carbon
emissions in in-house production, even if a purely combustion-
engine vehicle is painted. In light of the BMW Group’s previously
defined economic activities, its sustainability efforts in this regard
are not, or are only partially, taken into account in the EU Taxon-
omy. ↗ Climate Change Mitigation and Adaption
1 The definition of the three performance indicators and their differentiation from IFRS can be
found in the glossary ↗ Glossary and Explanation of Key Figures.
2 In this context the entire value chain is to be understood as Scope 1 and 2 as well as the Scope 3
categories (categories 1, 4 and 11 for the Automotive Segment) applicable to the BMW Group in
accordance with the Greenhouse Gas Protocol.
3 See ↗ Glossary for definition of electricity from renewable sources.
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Explanatory comments on reporting procedures
An economic activity is to be seen as Taxonomy-eligible if it is
described in the Delegated Acts relating to one of the six envi-
ronmental objectives, regardless of whether that economic activ-
ity meets the technical screening criteria stipulated in those Del-
egated Acts. Following an analysis, the BMW Group’s business
activities can be summarised under the following economic ac-
tivities*:
Overview of economic activities
Economic activities
Code(s)
Description
Environmental objectives
Reporting 2024
Comments
Manufacture of low carbon technol-
ogies for transport
CCM 3.3, CCA 3.3
The production of automobiles and motorcycles, excluding
- the sale of parts and components, such as after-sales business excluding the provi-
sion of repair services,
- the supply of components for production to third parties
I „Climate change mitigation“
II „Climate change adaptation“
Taxonomy alignment
Contribution to Environmental objec-
tives II is subsumed under Environ-
mental objective I
Transport by motorbikes, passen-
ger cars and light commercial vehi-
cles
CCM 6.5, CCA 6.5
The acquisition, financing, lease and operation of automobiles and motorcycles, ex-
cluding banking and insurance services performed by our non-automotive Financial
Services segment
I „Climate change mitigation“
II „Climate change adaptation“
Taxonomy alignment
Contribution to Environmental objec-
tives II is subsumed under Environ-
mental objective I
Sale of second-hand goods
CE 5.4
Sale of used third-party brand cars purchased by the BMW Group from external par-
ties and resold to external third parties at the end of the lease agreement
IV „Transition to a circular economy“
Taxonomy alignment
In contrast to the previous year, economic activity CE 5.4 only
includes the sale of used third-party brand automobiles that are
purchased by the BMW Group from third parties and resold to
external third parties at the end of the lease agreement. The sale
of lease returns from BMW Group brands, on the other hand, is
reported under CCM 6.5. While all lease and financing activities
are still reported under CCM 6.5 in their entirety, this change
draws a clear distinction between the remarketing of BMW Group
brand vehicles on the one hand (CCM 6.5) and the sale or trade
of second-hand automobiles on the other (CE 5.4).
Explanatory comments on reporting procedures
* The additional economic activities specified in Delegated Regulation (EU) 2022/1214 of 9 March
2022 (in particular with regard to nuclear energy and gaseous fossil fuels) are not relevant to the
BMW Group.
Economic activities
are described in one of the
Delegated Acts
Substantial contribution
to at least
one of the environmental
objectives
Taxonomy
eligibility
Substantial
Contribution
Do No
Significant
Harm (DNSH)
Economic
activity is
Taxonomy-aligned
+
+
+
=
Minimum
Safeguards
Economic activity does
not cause significant
harm to other environmental
objectives
Company establishes
minimum safeguard
procedures for human
rights, bribery and
corruption, taxation and
fair competition
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In order to determine the Taxonomy alignment of economic ac-
tivities CCM 3.3, CCM 6.5 and CE 5.4 in the reporting year, they
must be reviewed against the technical screening criteria rele-
vant to them:
5.
Substantial contribution to fulfilment of the environmental
objectives ”Climate change mitigation” and ”Climate
change adaptation” based on the specific carbon emis-
sions (CO2e) for the respective vehicles for economic ac-
tivities CCM 3.3 and CCM 6.5
6.
Substantial contribution to the fulfilment of the environ-
mental objective ”Transition to a circular economy” based
on the specific requirements for the vehicles under con-
sideration (“Substantial contribution”) for economic activ-
ity CE 5.4
7.
Do no significant harm (“DNSH”) to other environmental
objectives based on the specific requirements for each
relevant economic activity
It must also be ensured that the BMW Group has established
minimum safeguards.
Substantial contribution
The BMW Group has reviewed its contribution to the environ-
mental objectives “Climate change mitigation”, “Climate change
adaptation” and “Transition to a circular economy” for the report-
ing year. Economic activity CCM 3.3 and economic activity CCM
6.5 both make a substantial contribution to Environmental Ob-
jective I “Climate change mitigation” due to the manufacture as
well as financing and leasing of low-emission (PHEVs <50g
CO2/km WLTP by 2025) and zero-emissions vehicles (BEVs and
motorcycles with 0g CO2/km). Economic activity CCM 3.3 and
economic activity CCM 6.5 as undertaken by the BMW Group are
also described under Environmental Objective II “Climate change
adaptation”. There are, however, no identifiable values that can
be separated from Environmental Objective I “Climate change
mitigation”.
Environmental objectives of EU Taxonomy
VI
V
I
II
IV
Climate change mitigation
Climate change
adaptation
I
III
Protection and restoration
of biodiversity
and ecosystems
Sustainable use
and protection of water
and marine resources
Transition to a
circular economy
Pollution prevention
and control
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In order to identify the specific carbon emissions of PHEV that
are not determined in line with Regulation (EU) 2019/631
(among others USA and China), assumptions were made based
on the worst-case value for that vehicle model, even though
these emissions may have been lower in reality.
Economic activity CE 5.4 makes a substantial contribution to the
environmental objective “Transition to a circular economy”. Only
trading with used third-party brand automobiles will be reported
under CE 5.4 from the 2024 reporting year onwards.
Do no significant harm
It is not possible to fully verify compliance with the DNSH criteria
for economic activity CE 5.4 due to a lack of data on tyre catego-
ries and WLTP emissions values for third-party brands. As a re-
sult, no Taxonomy-aligned share can be reported for economic
activity CE 5.4. For this reason, economic activity CE 5.4 is not
included in the following analysis of the DNSH criteria.
Compliance with the DNSH criteria was reviewed in the reporting
year for the five additional environmental objectives, based in
each case on the specific requirements specifically for economic
activity CCM 3.3 “Manufacture of low carbon technologies for
transport” and economic activity CCM 6.5 “Transport by motor-
bikes, passenger cars and light commercial vehicles”.
The vehicle portfolio for economic activity CCM 6.5 includes
BMW Group vehicles and vehicles from other manufacturers
(third-party products). As no data are available regarding the rel-
evant attributes of these third-party products, it is not currently
possible to make a comprehensive assessment in relation to the
DNSH criteria. For this reason, these third-party products are not
currently reported as Taxonomy-aligned.
Climate change adaptation
A robust climate risk and vulnerability assessment is required for
both economic activity CCM 3.3 and economic activity CCM 6.5
to determine that they do not cause significant harm to Environ-
mental Objective II. To satisfy this requirement, the physical cli-
mate risks at all major BMW Group production sites are consid-
ered and an assessment of any damage that may occur as a re-
sult of climate change is carried out. We use long-term climate
scenarios* running up to 2035 and 2050 for this purpose. More-
over, we consider potential natural hazards at all of our direct
supplier locations in order to adequately take supply risks into
account when selecting and evaluating suppliers. Adaptive solu-
tions to mitigate risks are drawn up and implemented as appro-
priate based on the results of this risk analysis and in consulta-
tion with site representatives. Additional information is available
in ↗ Procedure and methodological basis for climate-related risks and
opportunities, ↗ Physical climate risks, ↗ Transitory climate risks and
opportunities.
The DNSH requirements for Environmental Objective II are ful-
filled for economic activities CCM 3.3 and CCM 6.5.
Sustainable use and protection of
water and marine resources and
protection and restoration of
biodiversity and ecosystems
In order to establish that no significant harm is caused to Envi-
ronmental Objectives III and VI, it is necessary to perform a com-
prehensive risk analysis that looks at the preservation and pro-
tection of environmental, water and marine resources for eco-
nomic activity CCM 3.3 (in both cases, not relevant for economic
activity CCM 6.5).
In this context, the BMW Group carries out environmental impact
assessments in accordance with Directive 2011/92/EU during
the construction of new and expansion of existing sites within the
EU that also take account of water and biodiversity. At locations
outside the EU, the BMW Group carries out an environmental im-
pact assessment based on EU requirements. Moreover, a certi-
fied environmental management system pursuant to ISO 14001
has been implemented at all BMW Group production sites and all
local statutory requirements are observed. ↗ Holistic environmental
Management within the BMW Group
The DNSH requirements for Environmental Objectives III and VI
are fulfilled for economic activity CCM 3.3.
Transition to a circular economy
The requirements for both economic activities of the BMW Group
to do no significant harm to Environmental Objective IV differ for
each stage of the value chain. We fulfil these requirements during
the manufacturing process for BMW Group vehicles (economic
activity CCM 3.3) by, for example, using secondary raw materials
in our products, designing products to facilitate their recycling,
managing waste at our production sites in a way that prioritises
recycling over disposal, and systematically registering sub-
stances of concern along the entire supply chain. With regard to
the utilisation phase and recycling of BMW Group vehicles (eco-
nomic activity CCM 6.5), we have set up appropriate processes
to comply with recycling requirements and established measures
for managing waste during maintenance and at the end of the
life cycle. All these criteria also form part of our comprehensive
approach to the ↗ Circular Economy and Resource Use.
The DNSH requirements for Environmental Objective IV are ful-
filled for economic activities CCM 3.3 and CCM 6.5.
* SSP1-1.9, SSP2-4.5, SSP5-8.5.
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Pollution prevention and
control
The requirements to do no significant harm to Environmental
Objective V differ considerably for economic activity CCM 3.3 and
economic activity CCM 6.5.
With regard to economic activity CCM 3.3, the BMW Group has
established corresponding processes which aim to monitor and
ensure legal compliance with any prohibitions and limits relating
to the use of chemical substances at the vehicle level. With regard
to the extended requirements for hazardous substances that ful-
fil the criteria of any of the classes or categories specified in Arti-
cle 57 of the REACH Regulation (EC) 1907/2006 in accordance
with the CLP Regulation (EC) 1272/2008 and which constitute
at least 0.1% of the mass of the final product, the BMW Group
has initialised a process to assess the extent to which these sub-
stances can be replaced with suitable alternatives.
Firstly, the points of the supply chain at which these substances
are used were identified and assessed in a further step against
the background of the state of the art and taking business, regu-
latory and technical concerns into account. If the use of these
hazardous substances cannot be avoided, the BMW Group uses
them under controlled conditions in accordance with hazardous
material regulations. However, it is not possible to meet all crite-
ria to do no significant harm to Environmental Objective V in the
case of economic activity CCM 6.5. Current PHEV models with air
pollutant emissions under 50 g CO2/km WLTP offered by the
BMW Group and other manufacturers may make a substantial
contribution as defined by the EU Taxonomy. However, manu-
facturer specifications for air pollutant emissions in real driving
conditions (real driving emissions [RDE]) can only be reduced for
selected models to 80% of the limit as required by the EU Tax-
onomy with reference to Table 2 in the Annex to the Clean Vehi-
cles Directive, due to potentially extreme driving situations. The
vast majority of PHEVs in the vehicle portfolio for economic ac-
tivity CCM 6.5 must therefore be considered not Taxonomy-
aligned.
For the remaining PHEV and BEV models in the BMW Group’s
vehicle portfolio, further deductions have to be made for individ-
ual models in the context of economic activity CCM 6.5 in light of
the requirements for rolling resistance coefficients for tyres and
in particular the external rolling noise of tyres. Owing to the lim-
ited availability of data, the eligibility of the models concerned is
calculated in a simplified manner based on the tyres approved
for these models, weighted by their purchase volumes and take
rates.
The DNSH requirements for Environmental Objective V are ful-
filled for economic activity CCM 3.3; however, not all are fulfilled
for economic activity CCM 6.5, due to the RDE and tyre label re-
quirements described.
Minimum safeguards
Additionally, companies that carry out economic activities as de-
fined by the EU Taxonomy are required to establish minimum
safeguards. They require the implementation of processes to en-
sure compliance with due diligence obligations both within an or-
ganisation and in stages of the upstream and downstream value
chain that have been outsourced. Specifically, this refers to com-
pliance with human rights and regulations on bribery, corruption,
taxation and fair competition. In its ↗ Policy statement on respect for
human rights and corresponding environmental standards, the BMW Group
has, among other things, committed to compliance with the fol-
lowing standards for minimum safeguards as defined in Arti-
cle 18 of the Taxonomy Regulation: Organization for Economic
Cooperation and Development (OECD) Guidelines for Multina-
tional Enterprises, the UN Guiding Principles on Business and
Human Rights and the Ten Principles of the UN Global Compact,
which we signed back in 2001. ↗ Purchasing and Supplier Network,
↗ Compliance
The minimum safeguard requirements are met.
EU Taxonomy performance indicators
Please refer to the remarks in the glossary for the definition and
calculation of the Taxonomy-specific performance indicators rev-
enues, capital expenditure and operating expenditure and their
differentiation from IFRS. ↗ Glossary and Explanation of Key Figures
The proportion of total revenues, capital expenditure and oper-
ating expenditure relating to eligible and non-eligible economic
activities are shown in each case as an aggregate percentage for
the BMW Group. All Taxonomy-eligible revenues, capital ex-
penditure and operating expenditure for economic activities CCM
3.3 and CCM 6.5 are disclosed under Environmental Objective I
“Climate change mitigation”, given that there are no identifiable
values for Environmental Objective II “climate change adapta-
tion” that can be separated from Environmental Objective I “Cli-
mate change mitigation”. This approach avoids double counting
of revenues, capital expenditure and operating expenditure when
determining the KPI in the numerator across multiple economic
activities.
In the case of capital expenditure and operating expenditure, all
Taxonomy-eligible expenditure is allocated to the two economic
activities CCM 3.3 and CCM 6.5. There is no independent Tax-
onomy-eligible capital expenditure and operating expenditure for
economic activity CE 5.4.
In most cases, values from financial data were allocated directly
to the economic activities for all three performance indicators,
based for example on the drivetrain or the vehicle model. In the
remaining cases, an allocation mechanism was used for each
economic activity and each performance indicator. For Taxon-
omy-eligible and Taxonomy-aligned capital expenditure for eco-
nomic activity CCM 3.3, the allocator is based on long-term Tax-
onomy-aligned revenues generated from the Automotive and
Motorcycles segments:
—
Allocator for economic activity CCM 3.3: Proportion (BEV +
PHEV [<50g CO2]) x Automotive segment revenues
(2025–2030)*
* PHEV volumes are only taken into account in the allocator until reporting year 2025 inclusive.
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The allocator is based on detailed long-term corporate planning
for the next six years, as approved each year by the Board of
Management and Supervisory Board. This formula is used for
capital expenditure on property, plant and equipment (including
right-of-use assets from lessee relationships), intangible assets
and expenditure on research and development for economic ac-
tivity CCM 3.3. For operating expenditure, the allocator is only
applied to non-capitalised development costs.
For other operating expenditure (non-capitalised right-of-use
assets (lessee), maintenance/repair expenses) relating to eco-
nomic activity CCM 3.3, the formula is based on the Taxonomy-
aligned revenues generated from the Automotive and Motorcy-
cles segments in the reporting period.
For Taxonomy-eligible and Taxonomy-aligned capital expendi-
ture for economic activity CCM 6.5, the allocator is based on the
Taxonomy-aligned financing volume for new customers in the
current financial year:
—
Allocator for economic activity CCM 6.5: DNSH alignment
factor x BEV proportion x financing volume attributable to
new customer contracts (2024)
It refers to capital expenditure on leased products.
Further increase in Taxonomy-aligned capital expenditure
and operating expenditure in the 2024 reporting year
The following overview tables summarise the performance indi-
cators revenues, capital expenditure and operating expenditure
from Taxonomy-eligible and Taxonomy-aligned economic activ-
ities of the BMW Group. Regardless of the Taxonomy require-
ments, the BMW Group regularly and comprehensively ad-
dresses risks arising from climate change and their potential im-
pact on its locations and supply chains. ↗ Climate change adaptation,
↗ Climate Change Mitigation and Adaptation
—
BMW Group perspective
Both performance indicators - capital expenditure and oper-
ating expenditure - continued to grow year on year at the
BMW Group level. This reflects the BMW Group’s increased
investment in sustainable products and plant infrastructure
as part of the ongoing electrification process. The Taxon-
omy-aligned proportion of capital expenditure was 29.1%,
which was 3.1% higher than in 2023 (€ 10,687 million).
Taxonomy-aligned capital expenditure as a proportion of
the BMW Group’s total capital expenditure is impacted sig-
nificantly by additions related to leased products. Conse-
quently, an examination of the proportion of Taxonomy-
aligned capital expenditure at the BMW Group level does not
reflect the huge investment in sustainable economic activi-
ties and products. Operating expenditure incurred for Tax-
onomy-aligned
economic
activities
amounted
to
€ 2,146 million, corresponding to over 32% of Taxonomy-
eligible operating expenditure (2023: 31%).
The Taxonomy-aligned proportion of the BMW Group’s rev-
enues fell slightly in 2024. They amounted to € 20,819 mil-
lion (2023: € 23,690 million), corresponding to 14.6% of
total Group revenues and a decrease on the previous year
of about half a percentage point. This was mainly driven by
changes in the pricing structure of the Taxonomy-aligned
BEV portfolio and negative elimination effects between the
Automotive segment and the Financial Services segment.
↗ Voluntary additional information on the Taxonomy-aligned share per
economic activity
—
Economic activity CCM 3.3, “Manufacture of low-carbon
technologies for transport”
The Taxonomy-aligned share of revenues generated by the
Automotive and Motorcycles segments corresponded to
13.4% (economic activity CCM 3.3 “Manufacture of low-
carbon technologies for transport”) of total Group revenues
(2023: 15.0%). As a percentage of third-party revenues of
the two segments, the Taxonomy-aligned share equaled to
20.3% (2023: 22.1%). ↗ Course of Business and Segments
The Taxonomy-aligned proportion of capital expenditure fell
slightly by just under 2 percentage points to 20.9% (2023:
22.7%). This is due to the disproportionate increase in total
capital expenditure relative to capital expenditure in the Au-
tomotive and Motorcycles segments. Looking only at the
Taxonomy-aligned additions to intangible assets and prop-
erty, plant and equipment in the context of additions rec-
orded by the Automotive and Motorcycles segments, how-
ever, the proportion of Taxonomy-aligned capital expendi-
ture went up by a percentage point to 61.5%.
↗ Voluntary additional information on the Taxonomy-aligned share per
economic activity
—
Economic activity CCM 6.5, “Transport by motorbikes,
passenger cars and light commercial vehicles”
The Taxonomy-aligned shares for the three performance in-
dicators are at a low single-digit level for the Financial Ser-
vices segment, but are on an upwards trajectory. This is due
to the fact that there is a time lag before the effects of the
vehicle fleet electrification ramp-up impact the financing and
leasing lines of business. A further reason is the varied,
stricter DNSH requirements for economic activity CCM 6.5,
in particular those relating to Environmental Objective V
“Pollution prevention and control”, which lead to the exclu-
sion of almost all PHEV and a significant restriction in the
recognition of BEV (for details see section ↗ Do no significant
harm). Third-party brands are not included in the vehicle port-
folio in the reporting on Taxonomy alignment for economic
activity CCM 6.5. A lack of available data regarding the tyre
categories or WLTP emission values of third-party products
makes it impossible to review compliance with the DNSH
criteria in full.
The Taxonomy-aligned proportion of capital expenditure in
the Financial Services segment rose by almost 250% on the
previous year to 8.2% (€ 3,006 million). Based on total cap-
ital expenditure in the Financial Services segment, the Tax-
onomy-aligned proportion more than doubled to 12.4%.
Taxonomy-aligned revenues increased more than four-fold
year on year to € 1,742 million.
153
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—
Economic activity CE 5.4, “Sale of second-hand goods”
As stipulated by Delegated Regulation 2023/2486, the
BMW Group is reporting on the Taxonomy-aligned propor-
tion of revenues for economic activity CE 5.4 for the first
time. This economic activity includes revenues from the sale
of used third-party brand passenger cars after their intended
use by clients in the Financial Services segment, but does
not include revenues from the sale of used third-party brand
motorcycles. Around 1.2% of total revenues are Taxonomy-
eligible in reporting year 2024 (20231: 1.1%). The Taxon-
omy-aligned share is zero due to a lack of data concerning
the DNSH criteria.
As the overview tables from Delegated Regulation (EU)
2023/2486 do not provide a detailed picture of the
BMW Group’s business model per economic activity, the follow-
ing table provides detailed information about the three perfor-
mance indicators as regards Taxonomy alignment, reported
separately for economic activities CCM 3.3, CCM 6.5 and CCM
5.4.
Voluntary additional information on the Taxonomy-aligned share per economic activity
1 Prior-year figures for revenues related to CE 5.4 are adjusted due to a change in the calculation
basis.
2 Taxonomy-aligned share calculated with denominator as third-party revenue from Taxonomy-
eligible values of the respective economic activity.
3 Taxonomy-aligned share calculated with the Taxonomy-eligible value of the respective economic
activity as denominator. See ↗ note [20] to the Group Financial Statements for details on the
BMW Group’s capital expenditure.
4 Only includes the operating expenditure defined in the EU Taxonomy.
5 Prior-year figures for revenues related to CE 5.4 and CCM 6.5 adjusted due to change in the cal-
culation basis.
2024
in € million
2024
in € million
2024
in %
2023⁵
in %
Revenues2
by activity
of which
Taxonomy-aligned
Proportion
Proportion
Manufacture of low carbon technologies for transport (CCM 3.3)
94,079
19,077
20.3
22.1
Transport by motorbikes, passenger cars and light commercial
vehicles (CCM 6.5)
32,116
1,742
5.4
1.1
Sale of second-hand goods (CE 5.4)
1,775
n/a
n/a
n/a
Taxonomy-non-eligible revenues
14,409
n/a
n/a
n/a
Total revenues BMW Group
142,379
20,819
14.6
15.2
Capital expenditure3
by activity
of which
Taxonomy-aligned
Proportion
Proportion
Manufacture of low carbon technologies for transport (CCM 3.3)
12,480
7,680
61.5
60.4
Transport by motorbikes, passenger cars and light commercial
vehicles (CCM 6.5)
24,198
3,006
12.4
5.4
Taxonomy-non-eligible capital expenditure
87
n/a
n/a
n/a
Total CapEx BMW Group
36,765
10,687
29.1
26.0
Operating expediture4
by activity
of which
Taxonomy-aligned
Proportion
Proportion
Manufacture of low carbon technologies for transport (CCM 3.3)
6,331
2,125
33.6
32.2
Transport by motorbikes, passenger cars and light commercial
vehicles (CCM 6.5)
305
21
6.9
4.2
Total OpEx BMW Group3
6,636
2,146
32.3
31.1
154
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Contextual KPI information related to Taxonomy-aligned economic activities
in € million
2024
2023
Revenues
Sales of products, related goods and revenue of service contracts
19,077
23,340
Revenues related to financial services
1,742
350
Total
20,819
23,690
Capital expenditure
Economic activity CCM 3.3
Property, plant and equipment*
5,668
5,391
Development costs
2,012
1,516
Leased products
–
–
Total
7,680
6,907
Economic activity CCM 6.5
Property, plant and equipment*
2
1
Development costs
–
–
Leased products
3,005
1,018
Total
3,006
1,018
Total
10,687
7,926
Operating expenditure
Economic activity CCM 3.3
Development costs – not capitalised
1,915
1,843
Right-of-use assets (lessee) – not capitalised
18
17
Maintenance/repair expenses
192
191
Total
2,125
2,051
Economic activity CCM 6.5
Development costs – not capitalised
18
9
Right-of-use assets (lessee) – not capitalised
–
–
Maintenance/repair expenses
3
2
Total
21
11
Total
2,146
2,062
Revenues for economy activity CCM 3.3 include small amounts
from Taxonomy-aligned activities related to the BMW Group’s
company car programme. These company cars are generally
transferred to the BMW Group’s external sales programme
within twelve months after a short period of in-house use.
* Including intangible assets and right-of-use assets from lessee relationships.
155
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Sustainability Statement
CapEx plan for Environmental Objective I “Climate change
mitigation”
A CapEx plan is required to be drawn up for capital expenditure
and operating expenditure that expand Taxonomy-aligned eco-
nomic activities or allow Taxonomy-eligible economic activities
to become Taxonomy-aligned. This plan has been approved by
the Board of Management of BMW AG and covers a seven-year
period (2024–2030). The CapEx plan covers capital expenditure
and operating expenditure for the reporting year and planned
capital expenditure and operating expenditure (only non-capital-
ised development costs) for 2024–2030 for economic activities
CCM 3.3 and CCM 6.5. The selected future period corresponds
to the detailed long-term corporate planning of the BMW Group
and contains various investment measures with different imple-
mentation times (e.g. electrification of the vehicle fleet, model re-
visions, structural investments in production sites). The CapEx
plan earmarks € 73,451 million for economic activity CCM 3.3
and € 25,324 million for economic activity CCM 6.5. The in-
crease in Taxonomy-aligned capital expenditure and operating
expenditure as compared to the previous year’s plan can largely
be attributed to generally higher capital expenditure and operat-
ing expenditure associated with electrification until the end of the
decade.
CapEx plan for expansion of or transformation into Taxonomy-aligned economic activities
in € million
2024
2023
Code(s)
2024–2030
2023–2029
Economic activities
Manufacture of low carbon technologies for transport
CCM 3.3
73,451
68,473
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5
25,324
24,847
Total
98,775
93,320
156
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Sustainability Statement
Revenues
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria
("Does not significantly harm")
2023
Code(s)1
Revenues
Proportion of Revenues3
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
revenues4
Category enabling activity
Category transitional activity
Economic activities
in € million
in % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N
in % E T
A . T A X O N O M Y - E L I G I B L E A C T I V I T I E S
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
19,077
13.4
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
15.0 E
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
1,742
1.2
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.2
T
Revenues of environmentally sustainable activities (Taxonomy-aligned) (A.1)
20,819
14.6
14.6%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
15.2
Of which enabling
19,077
13.4
13.4%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
15.0 E
Of which transitional
142
0.1
0.1%
Y
Y
Y
Y
Y
Y
Y
0.0
T
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
75,002
52.7
EL
EL
N/EL
N/EL
N/EL
N/EL
55.9
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
30,374
21.3
EL
EL
N/EL
N/EL
N/EL
N/EL
19.7
Sale of second-hand goods2
CE 5.4
1,775
1.2
N/EL
N/EL
N/EL
N/EL
EL
N/EL
1.1
Revenues of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
107,151
75.3
76.7
A. Revenues of Taxonomy-eligible activities (A.1+A.2)
127,970
89.9
91.9
B . T A X O N O M Y - N O N - E L I G I B L E A C T I V I T I E S
Revenues of Taxonomy-non-eligible activities
14,409
10.1
Total
142,380
100.0
1 With reference to Annex II of Delegated Regulation (EU) of 27 June 2023 (EU 2023/2486).
2 No Taxonomy-aligned value can be determined for economic activity CE 5.4 due to it not being possible to track whether all relevant DNSH criteria (pollution) have been met.
3 Taxonomy-aligned share of revenues per economic activity is 20.3% for CCM 3.3 and 5.4% for CCM 6.5, see ↗ Voluntary additional information on Taxonomy-aligned share per economic activity.
4 Previous year’s value for CCM 6.5 and CE 5.4 adjusted due to CE 5.4 being restricted to third-party brands.
157
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Sustainability Statement
Capital expenditure
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria
("Does not significantly harm")
2023
Code(s)1
CapEx
Proportion of CapEx2
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
CapEx
Category enabling activity
Category transitional activity
Economic activities
in € million
in % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N
in % E T
A . T A X O N O M Y - E L I G I B L E A C T I V I T I E S
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
7,680
20.9
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
22.7 E
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
3,006
8.2
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
3.3
T
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
10,687
29.1
29.1%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
26.0
Of which enabling
7,680
20.9
20.9%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
22.7 E
Of which transitional
354
1.0
1.0%
Y
Y
Y
Y
Y
Y
Y
0.6
T
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
4,800
13.1
EL
EL
N/EL
N/EL
N/EL
N/EL
14.9
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
21,192
57.6
EL
EL
N/EL
N/EL
N/EL
N/EL
58.9
CapEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
25,991
70.7
73.7
A. CapEx of Taxonomy-eligible activities (A.1+A.2)
36,678
99.8
99.8
B . T A X O N O M Y - N O N - E L I G I B L E A C T I V I T I E S
CapEx of Taxonomy-non-eligible activities
87
0.2
Total
36,765
100.0
1 With reference to Annex II of Delegated Regulation (EU) of 27 June 2023 (EU 2023/2486).
2 Taxonomy-aligned share of capital expenditure per economic activity is 61.5% for CCM 3.3 and 12.4% for CCM 6.5, ↗ Voluntary additional information on Taxonomy-aligned share per economic activity.
158
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Sustainability Statement
Operating expenditure
Financial year 2024
2024
Substantial contribution criteria
DNSH criteria
("Does not significantly harm")
2023
Code(s)1
OpEx
Proportion of OpEx2
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Climate change mitigation
Climate change adaption
Water
Pollution
Circular economy
Biodiversity
Minimum safeguards
Proportion of Taxonomy
aligned (A.1) or eligible (A.2)
OpEx
Category enabling activity
Category transitional activity
Economic activities
in € million
in % Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N;N/EL Y;N Y;N Y;N Y;N Y;N Y;N Y;N
in % E T
A . T A X O N O M Y - E L I G I B L E A C T I V I T I E S
A.1 Environmentally sustainable activities (Taxonomy-aligned)
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
2,125
32.0
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
30.9 E
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
21
0.3
Y
N
N/EL
N/EL
N/EL
N/EL
Y
Y
Y
Y
Y
Y
Y
0.2
T
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
2,146
32.3
32.3%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
31.1
Of which enabling
2,125
32.0
32.0%
0%
0%
0%
0%
0%
Y
Y
Y
Y
Y
Y
Y
30.9 E
Of which transitional
0
0.0
0%
Y
Y
Y
Y
Y
Y
Y
0.0
T
A.2 Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities)
EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL EL; N/EL
Manufacture of low carbon technologies for transport
CCM 3.3; CCA 3.3
4,206
63.4
EL
EL
N/EL
N/EL
N/EL
N/EL
65.1
Transport by motorbikes, passenger cars and light commercial vehicles
CCM 6.5; CCA 6.5
284
4.3
EL
EL
N/EL
N/EL
N/EL
N/EL
3.8
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
4,490
67.7
68.9
A. OpEx of Taxonomy-eligible activities (A.1+A.2)
6,636
100.0
100.0
B . T A X O N O M Y - N O N - E L I G I B L E A C T I V I T I E S
OpEx of Taxonomy-non-eligible activities
0
0.0
Total
6,636
100.0
1 With reference to Annex II of Delegated Regulation (EU) of 27 June 2023 (EU 2023/2486).
2 Taxonomy-aligned share of operating expenditure per economic activity is 33.6% for CCM 3.3 and 6.9% for CCM 6.5, ↗ Voluntary additional information on Taxonomy-aligned share per economic activity.
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Sustainability Statement
Nuclear and fossil gas-related activities
Nuclear energy-related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation
facilities that produce energy from nuclear processes with minimal waste from the fuel cycle.
No
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process
heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best
available technologies.
No
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat,
including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas-related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using
fossil gaseous fuels.
No
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
No
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce
heat/cool using fossil gaseous fuels.
No
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Sustainability Statement
SOCIAL INFORMATION
161
Social Responsibility
161
Basis for action
163
Own Workforce
166
Employer attractiveness and secure employment
167
Collective bargaining coverage and social dialogue
169
Competency development and performance management
170
Health and occupational safety
172
Diversity, equity and inclusion
175
Social and Environmental Responsibility in the Supplier Network
177
Due Diligence in the supplier network
180
Responsible raw material management
181
Consumers and End-Users
182
Customer orientation
183
Access to information
184
Data security and data protection
185
Health and safety
SHARE OF WOMEN IN
MANAGEMENT
SPENDING ON EMPLOYEE TRAINING
AND DEVELOPMENT
EMPLOYEES OF THE GROUP
158,441
21.6%
415 € million
161
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Sustainability Statement
SOCIAL RESPONSIBILITY
As a global company, the BMW Group takes social responsibility.
This includes, in particular, adherence with environmental and
social standards along the entire value chain. The BMW Group
works in close cooperation with the General Works Council to up-
hold fair working conditions and respect for human rights, not
only for our own employees, but also by suppliers and other busi-
ness partners, such as sales partners. The BMW Group pursues
a holistic approach in this regard. In addition to committing itself
to meeting high social standards, it also takes action to enable
that these are met along the entire value chain. In this way, the
BMW Group assumes responsibility in areas beyond its own op-
erations. As a global premium manufacturer of automobiles and
motorcycles with a multinational workforce on all continents, the
BMW Group has close ties with the societies in which it operates.
There, the Company also enters into local long-term voluntary
social commitments.
Encouraging employees and ensuring their development is a
core aspect of the BMW Group’s social responsibility. The Com-
pany fosters a forward-looking and inclusive working environ-
ment that offers individual training and further education oppor-
tunities ↗ Own Workforce.
Information about the multistage due diligence process regard-
ing respect for human rights in the supplier network can be found
in ↗ Social and Environmental Responsibility in the Supplier Network.
High-quality products and transparent behaviour are of central
importance to the BMW Group. The BMW Group focuses on
meeting the needs of its customers and providing them with a
unique experience. More information about this can be found at
↗ Consumers and End-Users.
Basis for action
The BMW Group is committed to respecting human rights and
the associated environmental standards. This applies not only to
our own business activities, but also to our relationships with
suppliers and other business partners. The BMW Group uses
clearly defined responsibilities and targeted actions to safeguard
these fundamental rights. In 2005, the BMW Group reaffirmed
its position in a joint declaration on human rights and working
conditions, which was signed by the Board of Management and
employee representatives. Multistage due diligence processes
enable that internationally recognised standards are met. In ad-
dition to country-specific requirements, the BMW Group takes
the following international standards into account in particular:
—
International Bill of Human Rights, consisting of the United
Nations Universal Declaration of Human Rights, as well as
the International Covenant on Civil and Political Rights (IC-
CPR) and the International Covenant on Economic, Social
and Cultural Rights (ICESCR)
—
UN Guiding Principles on Business and Human Rights
—
International Labour Organization (ILO) Declaration on Fun-
damental Principles and Rights at Work
—
ILO Tripartite Declaration of Principles concerning Multina-
tional Enterprises and Social Policy (MNE Declaration) and
ILO Convention 169
—
Organisation for Economic Cooperation and Development
(OECD) Guidelines for Multinational Companies and the,
—
Ten Principles of the UN Global Compact.
The Human Rights Officer assumes an overarching manage-
ment role within the BMW Group. In this role, the Human Rights
Officer monitors the implementation of the risk management
measures provided for in the German Supply Chain Due Dili-
gence Act. The Human Rights Officer liaises closely with the rel-
evant departments and reports directly to the Board of Manage-
ment on a regular basis as well as on an ad hoc basis. Within the
BMW Group, the Compliance function is responsible for the over-
arching concept to ensure compliance with human rights and the
associated environmental standards. In addition, the Compliance
function coordinates the due diligence processes not only within
its own business area, but also with other business partners,
such as the dealership organisations. The BMW Group’s Compli-
ance Management System (CMS) provides the organisational
framework for adhering to the significant requirements.
» Compliance and notification systems
In addition to the international standards, the ↗ BMW Group Code on
Human Rights and Working Conditions applies to our own business op-
erations as well as our suppliers and other business partners.
The respective responsible units (such as BMW Group depart-
ments or companies) and business partners are responsible for
complying with human rights due diligence obligations.
Within the BMW Group, managers are responsible for imple-
menting this Code and the ↗ BMW Group Code of Conduct in their own
areas. They are obliged to inform employees about the content
and significance of the Codes, in addition to advising them and
supporting them with the application of the Codes’ principles in
their daily work. Every employee must ensure that they are in
compliance with the requirements related to human rights and
working conditions and make sure that their professional conduct
is in alignment with those principles. The BMW Group has estab-
lished taking social responsibility as a prerequisite for prospec-
tive business partners. Human rights-related and environmental
due diligence obligations are incorporated into dealership and
agency contracts for example.
162
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Sustainability Statement
The BMW Group takes measures for prevention, control and re-
mediation on a risk-based and ad hoc basis. It uses a catalogue
of measures, questionnaires and an interlinked set of training
courses, contractual agreements, certifications and inspections
for this purpose. If actual or imminent violations of human rights
and/or related environmental standards are identified, the
BMW Group takes remedial action to prevent, end or minimise
them. The purpose of the control measures is to thoroughly in-
vestigate risks and indications and to check whether actual in-
fringements have occurred.
The issue of child labour is addressed by the BMW Group’s
Group-wide policies. According to this, child’s development must
not be hindered by undertaking any kind of work that keeps them
from receiving an education Their dignity must be respected and
their health and safety protected. In accordance with ILO Core
Labor Standards and national legislation, we adhere to minimum
employment ages and categorically reject child labour. This ap-
plies in particular to the worst forms of child labour for children
and young people under the age of 18, practices akin to slavery,
or activities that are dangerous or immoral. We therefore verify
whether applicants and employees have reached the minimum
age for employment, for example, as well as determining which
tasks may be performed by those under the age of 18.
In line with the ILO Core Labour Standards, the BMW Group also
does not tolerate forced or compulsory labour of any kind. In ac-
cordance with ILO Core Labor Standards, we strongly oppose
the use of forced or unlawful compulsory labour in our business
activities, from the very beginning of the supply chain. This also
includes all forms of modern slavery and human trafficking. All
employment contracts with the BMW Group or with enterprises
and suppliers commissioned by it must always be concluded on
a voluntary basis. All employment relationships may be termi-
nated by both parties, subject to reasonable or statutory notice.
There are no activities at the BMW Group for which a risk of
forced or child labour has been identified.
The BMW Group has established an appropriate complaints
mechanism as an integral part of its due diligence processes.
This enables the Company to effectively prevent human rights
and environmental violations and take immediate remedial ac-
tion. The complaints mechanism includes various whistleblower
systems, such as the ↗ BMW Group SpeakUP Line. Employees with
questions or concerns relating to compliance can discuss these
matters with their managers or relevant Compliance functions.
1 Department program design, prevention.
2 Performing duties for the Human Rights Officer.
All ↗ Compliance incident reporting channels are published on the
BMW Group website and are available to all internal and external
persons, provided the underlying issue is related to the Com-
pany. Reported cases are checked and remedial action is taken
promptly if necessary. In the reporting year, no customer-related
reports of human rights violations were received through the es-
tablished channels.
Human rights officer
acc. to the German Supply Chain Due Diligence Act
Group Compliance1
Program responsibility human rights compliance, design and monitoring2 of risk management and risk analysis, complaints mechanism, reporting
Nachhaltigkeit Lieferkette
Steuerung und Umsetzung von Sorgfaltspflichten-
prozessen (z. B. Risikoanalyse, Präventions- und
Abhilfemaßnahmen, Wirksamkeitsanalyse) für Ein-
kauf und Lieferantennetzwerk
Group Compliance1
Steuerung und Umsetzung von Sorgfaltspflichtenprozessen (z. B. Risikoanalyse, Präventions- und Abhilfemaß-
nahmen, Wirksamkeitsanalyse) für eigenen Geschäftsbereich sowie für weitere Geschäftspartner
Konzernweites Compliance Netzwerk sowie weitere unternehmensinterne Netzwerke
Prozessverantwortung (zu u. a. Arbeitsschutz, Umweltschutz, Personal, Konzernsicherheit) im eigenen Ge-
schäftsbereich sowie teilweise für weitere Geschäftspartner (z. B. Händler)
Implementation of risk management and further measures at operational level
The responsibility to comply with due diligence obligations resides with the responsible operating units of the BMW Group companies
Risk management and responsibilities
Group Compliance1
Steering and implementation of due diligence processes (e. g. risk analysis, prevention and remediation
measures, effectiveness analysis) for own business area and for other business partners
BMW Group-wide compliance network and further internal networks
Process responsibility (for occupational health and safety, environmental management, personnel, corporate
security among other topics) for own business area as well as partially for other business partners
(e. g. dealers)
Sustainability Supply Chain
Steering and implementation of due diligence
processes (e. g. risk analysis, prevention and re-
mediation measures, effectiveness analysis) for
purchasing and supplier network
163
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OWN WORKFORCE
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Workplace accidents resulting in physical injury reduce an employee's ability to live a fulfilling life, or may in
worst cases be fatal.
Negative
impact
− BMW Group-wide health and safety
management
− Occupational safety along the value
chain
− None
− Prevention and care through hazard
and stress analyses
− Qualification measures, quality au-
dits and certification of the occupa-
tional health and safety manage-
ment system
− Holistic health management system
with access to in-house health ser-
vices
Emplaced preventive measures through health standards and offerings for the employees (e.g. sports offer-
ings, health check-up) can improve the health and safety of the employees.
Positive
impact
Secure employment for own workers provides financial stability, contributing to mental health and well-being
to employees worldwide.
Positive
impact
− Long-term strategic human re-
sources planning
− Integrative Just Transition Approach
− Employer attractiveness
− Measures derived from the long-
term strategic human resources
planning, for example the use of dif-
ferent employment types
− Use of working time accounts at all
production sites where this is legally
possible
Promoting social dialogue can foster satisfaction and cooperation among workers globally, as it provides em-
ployees with a platform and mechanism to voice their concerns and share their ideas.
Positive
impact
− Change process of the BMW Group
− Employee representatives and col-
lective bargaining
− None
− Central opportunities to participate
and regular dialogue between em-
ployees and the Company
− Measurement of the organisation’s
performance using the High Perfor-
mance Organisation Index as part of
a biennial employee survey
− Up to two meetings per year be-
tween the BMW EURO Works Coun-
cil and corporate management. Em-
ployee representatives from produc-
tion sites outside Europe are also
invited to attend.
164
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Sustainability Statement
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Training and skill development of employees worldwide enhances qualification, allows for professional
growth and continued employability.
Positive
impact
− Integrative Just Transition approach
− Performance and career develop-
ment assessment processes
− Investment in vocational training
and further education
− Comprehensive training measures
determined using a system-sup-
ported Training Needs Analysis pro-
cess
− Qualification and development of
managers based on the Leadership
Competency Model
− BMW Group development pro-
grammes to retain top talent at an
early stage
Diversity measures (in the dimensions gender, age and experience, cultural background, sexual orientation
and identity, physical and mental ability) lead to a more diverse and inclusive work place and more integra-
tion worldwide.
Positive
impact
− Strategically integrated diversity
management
− Protection against discrimination
− BMW AG’s general operating and in-
clusion agreement
− Share of women in management po-
sitions
− Training and awareness-raising
measures to ensure a prejudice-free
working environment
− Points of contact for employees with
concerns about diversity and inclu-
sion
− Employee engagement and net-
working in Employee Resource
Groups
Increasing the proportion of women, particularly in management positions and including more women in
networking activities, trainings, and mentoring programs in the own workforce are important measures to
promote diversity and inclusion within the company.
Positive
impact
− Gender distribution at management
level
− Competitive and performance-re-
lated pay
− Share of women in management po-
sitions
− Early identification and develop-
ment of female high-potential can-
didates
− Regular review of remuneration
structures, gender equal pay fac-
tored into salary rounds and varia-
ble payments
Upstream material Own Operations material Downstream material
165
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Sustainability Statement
Own workforce characteristics
The BMW Group’s own workforce can be divided into two cate-
gories in accordance with the ESRS S1 standard: BMW Group
employees (ESRS S1-6) and non-employees (ESRS S1-7).
BMW Group employees include all persons with temporary or
permanent employment contracts with the BMW Group on
31 December of the reporting year. The total figure does not in-
clude employees in inactive early retirement phase, women on
maternity leave, employees who are absent for reasons including
sabbaticals, parental or family care leave, long-term illnesses,
military service or accompanying their partner abroad, other
BMW Group employees and temporary agency workers.
Using temporary employees contributes to the Company’s flexi-
bility and responsiveness in a volatile market environment. In ad-
dition to being assigned to specific projects, they also help to bal-
ance out fluctuations and utilisation peaks.
In addition to its own employees, the BMW Group also has non-
employees within the meaning of ESRS S1-7. These are mainly
temporary agency workers. The use of temporary agency work-
ers provides the Company with the flexibility needed to react to
short-term peaks in capacity utilisation, market or model-specific
fluctuations, unforeseeable economic changes and structural
and project-related issues.
The BMW Group defines temporary agency work in accordance
with the ILO Declaration on Fundamental Principles concerning
temporary agency work: an employee is hired by a temporary
employment agency and then hired out to perform their work un-
der the supervision and direction of the user company. There is
considered to be no employment relationship between the tem-
porary agency worker and the user company, although there
could be legal obligations of the user company towards the tem-
porary agency worker, especially with respect to health and
safety. The relevant labour contract is of limited or unspecified
duration with no guarantee of continuation. The user company
pays fees to the agency, and the agency pays the wages. The
Company complies with the locally applicable legal require-
ments, such as the German Temporary Employment Act, as well
as internal agreements with employee representatives that reg-
ulate the use of temporary agency workers.
The entire workforce of the BMW Group, including non-employ-
ees, was considered equally in the materiality assessment. All
employee groups were covered through the involvement of dif-
ferent stakeholder groups, including the Works Council
↗ Stakeholder Engagement. In addition, impacts resulting from the
various areas of activity, production and indirect employment
were taken into account.
Employees by contract type and gender1
in headcount
2024
Total number of employees2
158,441
Number of permanent employees
145,846
Male
117,156
Female
28,649
Other
–
Not disclosed
41
Number of temporary employees
12,595
Male
10,161
Female
2,431
Other
–
Not disclosed
3
Number of non-guaranteed hours employees3
–
Male
–
Female
–
Other
–
Not disclosed
–
Employees by geographical areas and country1, 4
in headcount
2024
Total number of employees2
158,441
Europe
107,408
thereof Germany
89,490
America
17,639
Asia
29,932
thereof China
27,330
Africa
3,165
Oceania
297
1 Assurance level: reasonable assurance.
2 Compared to the ↗ Key Performance Indicator, in accordance with ESRS only consolidated com-
panies are included. The Joint Operation Spotlight, on the other hand, is included proportionally.
3 In addition to the temporary and permanent contract types, non-guaranteed hours employees are
also reported in accordance with ESRS. This type of contract is not used by the BMW Group
↗ Glossary and Explanation of Key Figures.
4 Disclosed for each country in which the Company has at least 50 employees that account for at
least 10% of the Company’s total number of employees.
166
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Sustainability Statement
Overview of targets related to social sustainability
Targets and key figures in the area of social sustainability are
defined as part of the HR-related strategy and integrated into
BMW Group’s target system. Both the inclusion of new key fig-
ures and adjustments to existing ones are decided by the Board
of Management. The degree of target achievement is reviewed
as part of the target management process and discussed on a
regular basis by the Board of Management and then presented
to the joint Supervisory Board2. The annual review of target
achievement ensures that the annual interim targets and the
strategic targets for 2025 (and 2030 in future) are achieved.
Three strategic topics in the area of social sustainability have
been derived from the target management process:
—
Employer attractiveness ↗ Attractive employment conditions
—
Investment in vocational training and further development
↗ Just Transition - Developing expertise for the future
—
Increasing the share of women in management positions
↗ Breakdown by age and gender.
For the implementation of different target scenarios, a multi-year
assessment is carried out to analyse the impacts on the
BMW Group's employee structure. This includes assessing the
share of women in management positions in order to ensure
equality in terms of development opportunities. The strategic tar-
get for the share of women in management positions is calcu-
lated in a multi-year simulation on the basis of the gender distri-
bution in the workforce and the functional levels, as well as em-
ployees who join or leave.
Employer attractiveness and secure employment
Attractive employment conditions
The BMW Group is one of the most attractive employers world-
wide. Several factors ensure this: challenging work, individual de-
velopment and organisational opportunities for employees, per-
formance-related pay with attractive fringe benefits and a mod-
ern working environment.
Ensuring that the BMW Group is an attractive employer is a core
objective of the Group’s HR strategy. The BMW Group has set
itself the target3 of being among the Top 3 each year in a clearly
defined competitive environment in Germany. Its target groups
include pupils, specialists, academic professionals and students
in the fields of economics, engineering and IT. The target reflects
our positive image in relevant target groups based on rankings.
In order to maintain its attractiveness as an employer at a high
level, the BMW Group continuously analyses and adapts its re-
cruitment strategies for hard-to-fill positions and other areas.
This includes the local recruitment of talent and personnel allo-
cation in regions with available qualified workers. This approach
ensures the availability of the necessary skills and ensures the
competitiveness of the BMW Group despite the shortage of
skilled labour.
In 2024, the Trendence employer ranking system once again
named the BMW Group the most attractive employer across all
target groups within the defined competitive environment. The
Company also secured the top position in multiple target groups
including, for the thirteenth consecutive year, the no. 1 spot
among academic professionals. The BMW Group also monitors
employer attractiveness in individual markets on an international
basis in order to recognise trends at an early stage. Due to the
extremely varied international tool and provider landscape and
the specificity of market requirements, the target applies exclu-
sively to Germany. The underlying methodology is defined by the
Trendence Institute for Germany; there are no plans to change
the target.
The BMW Group’s attractiveness as an employer is also re-
flected in its low level of employee turnover worldwide:
Employee turnover rate1
2024
Employees, who have left the undertaking during the reporting
period (in headcount)
6,439
Attrition rate (in %)
4.1
1 Assurance level: reasonable assurance.
2 A joint supervisory board is a supervisory board which is composed of an equal number of share-
holder representatives (e.g. shareholders) and employee representatives.
3 Absolute metric according to ESRS.
in headcount
Europe
America
Asia
Africa
Oceania
Total
Total number of employees
107,408
17,639
29,932
3,165
297
158,441
Number of permanent employees
105,952
17,634
20,008
1,960
292
145,846
Number of temporary employees
1,456
5
9,924
1,205
5
12,595
Number of non-guaranteed hours employees
–
–
–
–
–
–
Employees by contract type and geographical areas 20241
167
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Sustainability Statement
Long-term and strategic personnel planning
The BMW Group’s long-term personnel planning forecasts per-
sonnel requirements for the next six years. This planning is up-
dated annually on the basis of the Company’s forecast perfor-
mance. The impacts of the identified staffing requirements on
new hires and leavers must be analysed in order to develop suit-
able measures. The BMW Group duly involves the relevant inter-
est groups in the structured and long-term process, in line with
country-specific and statutory conditions. This makes it possible
to identify restructuring requirements at an early stage and to or-
ganise them responsibly.
The Board of Management monitors the progress of personnel
measures on a regular basis as part of the personnel manage-
ment process during the year. A comparison is made between
the personnel planning and the current or forecast number of
employees for each Board of Management division at the end of
the year so that measures can be implemented if necessary. The
personnel requirements for each location are determined as part
of the annual planning processes. The Company utilises working
time accounts at its production sites where this is legally possi-
ble. These provide a flexible tool for adapting the amount of work
based on operational requirements and ensuring that employees
receive a consistent salary even if capacity utilisation levels fluc-
tuate.
Collective bargaining coverage and social dialogue
Central participation opportunities
The employees of the BMW Group are among the most im-
portant stakeholder groups, and are actively involved in shaping
the future direction of the Company ↗ Stakeholder Engagement. Every
two years, the BMW Group performs a company-wide employee
survey to measure the general mood in the workforce and the
performance of the organisation on the basis of the High Perfor-
mance Organisation Index (HPO-I). The next survey is planned
for 2025.
The HPO-I indicator reflects the BMW Group’s performance and
future viability and is an important key indicator for the long-term
management of the BMW Group. The questions are reviewed
before each employee survey and adapted to the current corpo-
rate and HR-related strategy as needed in order to take into ac-
count relevant new topics. In addition to collecting key indicators,
the employee survey aims to stimulate continuous dialogue.
Each manager receives a summarised result for their area, pro-
vided at least six responses have been received. Managers are
required to discuss the outcomes with their employees and iden-
tify improvements and concrete measures for organisational de-
velopment. The BMW Group’s change management team sup-
ports managers in this with various workshop formats and guide-
lines. In addition, the most recent employee surveys included
questions on the assessment of the quality of the follow-up to
the previous survey. Employees were asked whether they had
been informed about the outcomes and whether measures had
been identified and implemented. These outcomes are pre-
sented to the Board of Management and discussed. Changes in
the perceived effectiveness of the follow-up process can be as-
sessed by comparing the relevant responses with the previous
survey.
Another important opportunity for employees to get involved is
the idea management system, which is a valuable source of im-
provements for the BMW Group and emphasises the lived culture
of collaboration. Employees can suggest improvements also out-
side the direct scope of their task. Awards are given for ideas
which have positive impacts on the efficiency or sustainability of
the BMW Group. Numerous ideas were submitted in the report-
ing year. A noteworthy number of these were successfully imple-
mented and brought significant benefits to the BMW Group. The
proposals that were submitted focused on ideas with positive
sustainability effects in particular.
The ”HR Business and Talent Development” division is respon-
sible for defining the strategic alignment in the areas of pro-
cesses and change management. The HR departments at the
respective locations are responsible for implementing and real-
ising proposals, with the specific measures varying from location
to location.
Involvement of employees in change processes
The BMW Group is continuously developing on the basis of its
Corporate Development Framework (CDF). Our employees are a
central influencing factor within this Framework. According to the
CDF, affected employees and interest groups must be informed,
empowered, involved and communicated with throughout
change processes. The first step in the BMW Group’s estab-
lished change process is to actively involve the affected interest
groups. Depending on the project and its contextual parameters,
the employee representation, if present at the site, is also in-
volved as an important stakeholder.
The BMW Group involves its workforce both directly and indi-
rectly through employee representatives. The involvement of
employee representatives provides an important impetus for de-
cision-making processes as part of dialogue or negotiation pro-
cesses, which are taken into account in accordance with the ap-
plicable legal requirements. The nature and frequency of this in-
volvement depends on the local legal standards. The HR depart-
ment provides opportunities for involvement on an ad hoc, ongo-
ing or regular basis in the form of information, consultation or co-
determination. The level of the organisational units to be in-
cluded depends on whether a change project is implemented lo-
cally or across locations. Another factor is whether the Com-
pany’s own employees are informed on a central or local basis.
Cross-location initiatives are communicated with the involve-
ment of the responsible central departments. At a European
level, up to two meetings per year are held between the BMW
EURO Works Council and corporate management. Workers’ rep-
resentatives from production sites outside Europe are also in-
vited to attend. In addition to indirect involvement, employees
can address their concerns directly with their manager or HR de-
partment. The BMW Group promotes regular dialogue between
employees and the Company, particularly at locations where em-
ployees do not have representation.
168
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Sustainability Statement
The ”Corporate Human Resources” division is responsible for
representing human resources policy interests vis-à-vis em-
ployee representatives. It defines the strategic and conceptual
framework for labour, collective bargaining and social regula-
tions, which are then implemented locally. The “HR Business and
Talent Development” division manages operational HR-related
activities in Germany and at the international locations via the HR
regions and the HR network. Financial and human resources are
made available in accordance with the applicable legal require-
ments. The BMW Group uses a number of different formats to
keep its employees updated, such as Company meetings in Ger-
many, communication via the intranet, email and town hall meet-
ings. The most suitable channel is selected based on the nature
of the information involved ↗ Stakeholder Engagement.
Operational collaboration model
The BMW Group recognises the right of all employees to repre-
sentation and to conduct collective bargaining in order to negoti-
ate working conditions. Around 78%1 of employees in the
BMW Group are covered by collective bargaining agreements.
The corporate culture of the BMW Group is characterised by
trusting and constructive cooperation with the relevant employee
representatives. Even during discussions, the common goal re-
mains to maintain a strong cooperative relationship for the ben-
efit of the Company and its employees. Employees are neither
favoured nor disadvantaged on the basis of their membership or
non-membership of a trade union or a body that represents em-
ployees. The BMW Group respects the right to freedom of asso-
ciation and collective bargaining.
The BMW EURO Works Council has been in place since 1995. It
was established on the basis of an agreement reached with em-
ployee representatives. Group management communicates with
this Council on a regular basis so that the interests of employees
are effectively represented at the European level. The BMW
EURO Works Council serves as a central platform for dialogue
between employee representatives and Group management.
This body makes it possible to discuss topics of pan-European
relevance and develop solutions together. Through this institu-
tionalised cooperation, the BMW Group ensures that the inter-
ests of employees are taken into account in decision-making pro-
cesses at the Group level. The workplace representation metric
only looks at employees who are employed in a country in the
European Economic Area (EEA) and in which the number of em-
ployees is significant. For the BMW Group, this is only Germany
in the year under review:
The BMW Group is committed to maintaining the satisfaction
and performance of its employees at all times in the context of
social dialogue. Good operational collaboration at eye level is a
fundamental principle of the BMW Group’s corporate policy. This
is demonstrated by the percentage of employees covered by col-
lective bargaining agreements and by the regular interaction with
the BMW EURO Works Council. In addition, a wide range of par-
ticipation opportunities are offered worldwide so that the inter-
ests of the workforce are incorporated into the BMW Group’s de-
cision-making processes.
In 2024, work stoppages lasted a total of 01 days. The number
of days idle for 2024 was 01.
1 Additional disclosure, based on SASB ↗ SASB Index.
2 The ESRS table does not contain any information on collective bargaining coverage, due to non-
materiality.
Collective Bargaining Coverage2
Social Dialogue
Coverage rate in %
Employees - EEA
(for countries with >50 employees
representing >10% total employees)
Employees - Non-EEA
(estimates for regions with >50 em-
ployees representing >10% total
employees)
Workplace Representation
(EEA only)
(for countries with >50 employees
representing >10% total employees)
0-19%
–
–
–
20-39%
–
–
–
40-59%
–
–
–
60-79%
–
–
–
80-100%
–
–
Germany
Percentage of employees in European Economic Area (EEA) countries covered by employee representation
169
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Sustainability Statement
Competency development and performance management
Just Transition - Developing competencies for the future
Technological progress and the transformation of the automo-
tive industry constantly require the acquisition of new skills and
expertise, especially in the future-oriented fields of electrics and
electronics, electromobility, digitalisation with a focus on artificial
intelligence and agile working methods. The BMW Group proac-
tively addresses the resulting challenges for the employment
structure through targeted development and transformation of
competencies. As part of an integrative and Just Transition ap-
proach, the BMW Group is actively shaping a socially responsible
transformation process for its employees. The vocational training
for young people and the continuous development of all employ-
ees are fundamental beliefs at BMW Group. High-quality voca-
tional training and further education is the foundation for a suc-
cessful transition to electrified, digital and circular mobility. The
BMW Group considers qualification to be the key to its ability to
innovate and compete. It also opens up opportunities for employ-
ees in a changing world of work.
The BMW Group specifically develops the individual skills of its
employees through future-oriented vocational training and fur-
ther education offerings to ensure that they maintain a high level
of performance and employability over the long term. Besides
the professional qualification the personal development also has
a key role to play in this regard. During the reporting period, the
BMW Group provided in-depth training centred around develop-
ing the digital skills of its employees, this mainly focused on gen-
erative artificial intelligence, further training in the field of high-
voltage technology for NEUE KLASSE battery systems and train-
ing for the new direct sales model of the MINI brand in Europe
↗ The BMW Group Strategy. The BMW Group continues to drive elec-
tromobility forward. This approach is creating new jobs, such as
those at the new plant Debrecen in Hungary. Employment will
also be created at existing locations and through the establish-
ment of additional production sites for batteries in Germany and
abroad in the coming years.
The BMW Group uses a system-supported process called Train-
ing Needs Analysis to assess training requirements. It helps em-
ployees to identify their training needs together with their man-
agers. This ensures that employees are provided with targeted
training to address future requirements in the respective func-
tions. Based on the required competencies, the identified needs
are matched with specific training. The Training Needs Analysis
takes place on a regular basis and supports the targeted devel-
opment of skills in the workforce.
In 2024, the extensive training measures provided amounted to
an average of 20.2 hours per employee. The effectiveness of the
training measures is assessed using final tests and other meth-
ods. Evaluations provided by the participants also help to keep
the quality of the training courses at a high level.
The BMW Group has committed itself to investing an amount in
the mid three-digit million range per year in vocational training
and further education for all employee groups worldwide. In
2024, these investments totalled € 415.5 million. Expenditure
on vocational training and further education includes the central-
ised and decentralised expenses incurred by the BMW Group.
Leadership qualification
The development and training of leaders is of central importance
at BMW Group - especially in light of the transformation of the
automotive industry. This aspect plays a key role for successful
corporate management. The training programme for leaders is
based on the BMW Group’s understanding of leadership and the
BMW Group Leadership Competency Model, which forms the
basis for the BMW Group requirements and expectations of lead-
ership. A wide range of training and networking opportunities are
provided for leaders, in addition to special workshop formats for
management teams.
In future, the leadership qualification framework will be even
more modular, flexible and international in order to meet the
growing need for networking, globalisation and high perfor-
mance.
Attract and develop talent
In addition to an extensive range of training opportunities, the
BMW Group uses special development programmes to retain top
talent at an early stage. Participants in the ProMotion doctoral
programme write their dissertation in collaboration with the
BMW Group. The globally orientated Traineeship AcceleratiON
is aimed specifically at young people with leadership potential
and prepares them for the key roles of the future. As part of the
student support programme Fastlane, the BMW Group supports
students of STEM subjects during their master’s degree studies.
They also have extensive opportunities to enhance their exper-
tise.
Vocational training, further education and future talents pro-
grammes fall under the “HR Services, Recruiting, Qualification”
division. The HR departments at the respective locations are re-
sponsible for implementing these programmes locally, and, if
necessary, carry out additional individual and local training
measures.
Performance management
Every year, the BMW Group applies various performance and ca-
reer assessment processes based on defined conditions and cri-
teria. These are used on a regular and systematic basis to assess
and develop the performance and potential of our employees.
Depending on the specific process and the perspective role, both
professional performance as well as leadership and social skills
are assessed. The outcomes of these assessments play a vital
role in staff development and can have an impact on remunera-
tion. The aim of these processes is to strengthen the perfor-
mance and future viability of the BMW Group. The Company pur-
sues a holistic, Company-wide approach that combines perfor-
mance assessment and talent development while also incorpo-
rating regional differences. In the 2024 financial year, 81.3% of
the workforce took part in annual assessment processes.
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Sustainability Statement
Percentage of employees that participated in regular per-
formance and career development reviews
in %
2024
Percentage of total employees
81.3
Percentage of male employees
81.4
Percentage of female employees
81.2
Percentage of other employees
–
Percentage of not disclosed employees
13.6
Health and occupational safety
Health management on a holistic basis
The BMW Group attaches great importance to its employees be-
ing healthy and performing at a high level. The variety of tasks at
the Company’s sites places extensive demands on occupational
safety, which is controlled by the “Working Environment, Group
Safety, Group Data Protection” division. Every department is re-
sponsible for compliance with the standards. The central func-
tions provide these departments with support to assist with
health management and occupational safety measures. Corre-
sponding measures are implemented at the individual locations
based on internal specifications, although local adjustments are
possible. The BMW Group is committed to complying with the re-
spective national occupational safety laws worldwide. In Ger-
many, health services are managed on a centralised basis. Out-
side of Germany, this is the responsibility of the individual loca-
tions and is regulated in accordance with the applicable legal
provisions. The medical staff is made up of both BMW Group em-
ployees and employees of external service providers.
The BMW Group has launched the “Health Initiative” based on
global HR processes to prevent illness and maintain employee
performance. First aid is organised at the locations in accordance
with local regulations. In the absence of specific requirements,
the BMW Group applies German standards; these stipulate a first
aider quota of 10% in production areas and 5% in administrative
areas. It is important to the BMW Group that all employees have
access
to
the
Group’s
own
healthcare
services.
The
BMW Group’s medical professionals offer personalised advice
on preventive measures and assist with designing the working
environment to promote and maintain the health and perfor-
mance of employees in the long term.
Prevention and care
The BMW Group’s international health management project
groups are staffed by medical specialists and health experts.
Their knowledge and experience provide valuable input for pre-
ventive measures. During the reporting year, our preventive
measures focused on heart health. Health talks and dialogue for-
mats with experts were held in bilingual livestreams. Topics such
as exercise, heart-healthy eating and the handling of indul-
gences were covered in depth. Blood pressure measurements,
resuscitation exercises and healthy eating days were organised
to raise awareness of the factors that influence heart health.
These activities were adapted internationally to reflect local cir-
cumstances and needs.
The BMW Group focuses on low-threshold preventive measures
to raise employee awareness of the importance of a healthy life-
style. All available internal channels of communication are used.
Action days, dialogue events and training courses are held on a
regular basis to provide employees with information about and
raise their awareness of relevant health issues. The preventive
measures also focus on reducing the number of musculoskeletal
disorders that can be caused by a lack of exercise as well as met-
abolic disorders that can be caused by an unbalanced diet. The
reach and impact of these measures are analysed via participa-
tion rates. Specific preventive actions are also evaluated in order
to review and optimise their efficiency to the extent permitted by
data protection regulations.
The BMW Group conducts comprehensive risk and stress anal-
yses in order to identify potential risks in both production and of-
fice workplaces at an early stage. The aim is to take appropriate
protective measures to prevent the health of employees being
negatively impacted. Technical solutions take priority. All occu-
pational accidents are carefully documented. Analyses are per-
formed to identify the root cause of accidents. Findings are taken
from incidents of this kind and incorporated into the existing risk
and stress analyses with the intention of further improving pre-
ventive strategies and taking effective measures. Information
about these accidents is exchanged within the occupational
safety network. This exchange plays a vital role in preventing
similar accidents at other sites and ensuring that the BMW Group
makes continuous improvements in occupational health and
safety on a BMW Group-wide basis.
One example of the initiatives being used to promote safety at
work is the global “Watch your path!” campaign, which will run
until 2025. Analysis of accident black spots has shown that a
significant number of accidents are related to walking, climbing
stairs and cycling. The purpose of the “Watch your path!” cam-
paign is to raise awareness of these activities and provide infor-
mation on how to take precautions in order to reduce the number
of accidents. The BMW Group analyses the campaign’s effec-
tiveness by comparing the latest accident figures to the initial
metrics from the beginning of the campaign. This process not
only measures the success of the campaign but also helps us to
identify and implement further improvements when needed.
Qualification
The BMW Group uses a comprehensive, multi-layered pro-
gramme to ensure that high-quality health services are available.
Internal training and development initiatives keep medical spe-
cialists and occupational health assistants up to date with the
latest medical advancements. Annual quality audits are con-
ducted in accordance with ISO 9001 to assess this ongoing pro-
fessional development. Emergency and rescue paramedics also
participate in external training courses to enhance their skills and
expand their knowledge. Individual locations are responsible for
complying with country-specific statutory training requirements.
They organise training courses with local service providers and
are responsible for issuing certificates to document adherence to
training requirements. Monthly meetings are held to cover key
health topics through monthly discussions at a national and in-
ternational level. Annual workshops bring together medical spe-
cialists and health managers to share their experiences, deepen
their expertise, and contribute to keeping healthcare services at
a high level.
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As part of its training initiatives, the BMW Group provides occu-
pational health and safety training for employees at all locations.
Occupational safety trainings are assessed in consultation with
experts in occupational safety and ergonomics. The seminar cur-
riculum is drawn up in close collaboration with safety specialists,
the Health Management department and the BMW Group Acad-
emy. Continuous training is provided for safety specialists based
on the current state of the art as well as emerging specialist ar-
eas.
Occupational health and safety management
The BMW Group evaluates its international occupational health
and safety strategy on a regular basis, making adjustments as
needed. Suitable measures are developed, implemented and re-
viewed based on the defined vision. The BMW Group follows the
globally recognised ISO 45001 standard for occupational health
and safety. Occupational health and safety management sys-
tems are in place at all production sites and certified in accord-
ance with this standard or OHRIS*, which is based on ISO
45001. This means that 100% of BMW Group employees, other
BMW Group employees and temporary agency workers in the
BMW Group work at a location that has an occupational health
and safety management system. Employer and employee repre-
sentatives work together at nearly all locations to bring about a
continuous improvement in health and safety standards.
The BMW Group has established standards on various occupa-
tional safety topics to guide the implementation of safety
measures. Regular assessments of methods and tools used in
occupational health and safety ensure that internal requirements
are improved on a continuous basis. Employee representatives
are actively involved in this process and, where appropriate, with
representatives for employees with severe disabilities and the
HR department. The BMW Group conducts annual internal au-
dits to ensure the quality of its processes. These audits verify
compliance with occupational health and safety standards, and
ensure that legal health and safety requirements are complied
with. Audits and certifications of sites are conducted by external
service providers. All necessary audits were again successfully
carried out in 2024. The outcomes and the resulting measures
are made available to all BMW Group sites. This is done to en-
sure consistently high safety standards across the BMW Group.
Accident frequency
The BMW Group has found no evidence of systemic or wide-
spread physical injuries resulting from occupational accidents.
Occupational accidents refer to work-related accidents as speci-
fied by ESRS. All occupational accidents were isolated individual
incidents. In 2024, the accident frequency rate of the
BMW Group stood at 2.7, with 891 occupational accidents.
Number of work-related accidents and accident
frequency rate
2024
Total number of work-related accidents
891
Employees and other BMW Group employees
502
Temporary agency workers
389
2024
Total rate of work-related accidents
2.7
Employees and other BMW Group employees
1.8
Temporary agency workers
7.7
There were in total 2 fatal accidents in the reporting year 2024.
These involved two employees of external companies working
on BMW Group premises.
There were 0 reported fatalities due to work-related ill health
during the 2024 reporting year.
Number of fatalities from work-related injuries/accidents
and other work-related ill health
2024
Total number with fatalaties
2
Employees and other BMW Group employees
–
Non-employees
–
Workers working on the undertaking's site
2
Occupational safety along the value chain
The BMW Group regulates cooperation with contractual partners
on safety-related aspects at the sites by way of a separate con-
tractor declaration. At major BMW Group construction sites, all
external workers of partner companies receive safety briefings
from BMW Group experts. The contractor is responsible for
providing safety instructions in the case of smaller orders. The
department responsible for placing the order monitors compli-
ance with the occupational health and safety regulations, sup-
ported by the relevant occupational health and safety depart-
ment. Suppliers to the BMW Group are obligated to comply with
internationally recognised occupational health and safety re-
quirements via the BMW Group Supplier Code of Conduct, which
is an integral part of the Purchasing Terms and Conditions.
* Occupational Health and Risk Management System
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Sustainability Statement
Comprehensive preventive measures in occupational health and
safety
The BMW Group prioritises comprehensive preventive measures
in the field of occupational health and safety. By consistently im-
plementing occupational safety measures such as ISO 45001
certification, extensive training programmes, and the “Health In-
itiative”, we ensure that the frequency of workplace accidents
and health risks is minimised for our employees. These occupa-
tional safety measures are part of a continuous improvement
process, the effectiveness of which is reflected in a low accident
frequency rate.
Diversity, equity and inclusion
Promoting diversity
The BMW Group considers a working environment which en-
sures that all employees are appreciated, included and free from
prejudice to be a fundamental element of an open and inclusive
corporate policy and the basis for successful collaboration. Dis-
crimination has no place in the corporate culture of the
BMW Group. Every individual is entitled to a workplace that is
free from discrimination, preferential treatment or harassment
based on characteristics such as their gender identity, skin col-
our, religion, nationality, political or other beliefs, ethnicity, disa-
bility, age or sexual orientation. This principle extends to other
characteristics which are protected under local laws, including
national minority status or former military affiliation (veteran sta-
tus).
The aim of our strategic approach to diversity management is to
anchor the importance of diversity in the conduct of our employ-
ees. The BMW Group actively fosters a culture of appreciation
using initiatives to raise awareness about respectful interaction.
One such initiative is the BMW Group-wide training programme
combating workplace discrimination, which is mandatory for all
employees in Germany. During the reporting year, the
BMW Group’s engagement with regard to sexual orientation and
identity was externally analysed. This took place within the
framework of our membership with “PROUT AT WORK”, a foun-
dation and consultancy in Germany focusing on LGBTIQ+1 is-
sues in the workplace, aimed at promoting equal opportunities
for individuals within the queer community. This analysis led to
concrete actions, including the development of a transition guide.
This guide helps our employees, HR specialists and managers to
navigate issues related to gender identity. Additionally, a guide-
line regarding collaboration with Employee Resource Groups
(ERGs) was developed. As in the previous year, international Di-
versity Days were held by the BMW Group in 2024. These in-
volved a number of events throughout the year, including panel
discussions, workshops and hands-on activities held throughout
the year, including events for International Women's Day, the In-
ternational Day of Cultural Diversity and the International Day of
Persons with Disabilities.
BMW Group employees play a key role in fostering diversity, eq-
uity and inclusion within the Company. Employees can get in-
volved in ERGs to further these efforts. These groups include
family and women’s networks at numerous locations as well as
the BMW Group PRIDE association. This association advocates
for the interests of the LGBTIQ+ community. The spirit of coop-
eration and dialogue with the internal networks provides the
BMW Group with important impetus and support for the further
development of its commitment. Continuous communication on
our various channels contributes significantly to the success of
our diversity management approach. In addition to the percent-
age of female managers, we measure this success with a num-
ber of indicators as well as participation in training courses and
events and the associated feedback. We draw further conclu-
sions from the outcomes of our employee survey and participa-
tion in competitions.
In the reporting year, we continued to work on measures that
were adopted as part of the revised version of our general oper-
ating and inclusion agreement for employees with disabilities.
This included expanding the policy of training centres for the deaf
at BMW AG production sites. Individuals with severe disabilities
5.7%2 of the workforce of BMW AG, in excess of the minimum
threshold stipulated in the German Social Code. The inclusion
agreement also sets out requirements for dealing with and pro-
moting employees with severe disabilities, including the right to
an accessible working environment. Corresponding guidelines
are in place throughout the BMW Group.
At the beginning of each year, global measures are planned and
priority topics are defined under the various aspects of diversity.
Finally, the results are reviewed at the end of the year; these then
form the basis for planning initiatives and measures for the fol-
lowing year. There are several people whom employees can con-
tact regarding matters concerning diversity, equity and inclusion.
These include managers, the responsible departments, HR, the
Works Council and the representatives of severely disabled em-
ployees. In addition, the ↗ BMW Group SpeakUP Line offers a point of
contact available in more than 30 languages. All incoming cases
are reviewed and processed. Appropriate action, including disci-
plinary measures, is taken where necessary. Employees in Ger-
many also have access to the Zero Tolerance hotline, a free,
anonymous and professional advice centre, which provides sup-
port on issues such as discrimination, bullying and sexual har-
assment in the workplace.
The BMW Group is not currently engaged in any court or arbitra-
tion proceedings in connection with cases of discrimination and
related remedial action, which, in the Company’s estimation,
could have a material effect on its financial position.
1 Abbreviation commonly used internationally for lesbian, gay, bisexual, trans*, inter* and queer.
2 The share of employees with severe disabilities is based on the statutory requirements in accord-
ance with the German Social Code (SGB IX).
173
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Other Information
Sustainability Statement
The “HR Business and Talent Development” division is respon-
sible for defining the strategic alignment in the areas of diversity,
equity and inclusion. Together with the HR departments at the
individual locations, the unit manages and implements the cor-
responding measures. Departments at the locations are respon-
sible for implementation and develop additional programmes tai-
lored to local needs where required. The HR, Compliance and
Legal departments are responsible for ensuring adherence to the
principle of non-discrimination.
Breakdown by age and gender
The Company is committed to increasing the number of women
in management positions. In this context, initiatives such as the
“Women Rising” programme are key when it comes to the early
identification and development of talented individuals. Aware-
ness among managers and employees that diversity and a bal-
anced gender ratio contribute to the Company’s success is the
basis for achieving our gender goals. That is why there is a par-
ticular focus on actively communicating this topic and showcas-
ing positive role models. In addition, cooperation with our inter-
national networks helps to raise awareness among our employ-
ees. Another focus for 2024 involved promoting cultural diversity
and collaboration across mixed age groups. With the aid of in-
depth analyses, measures were devised to enhance the integra-
tion of international BMW Group employees within BMW AG.
Language plays a crucial role in this regard. Also, the need for
optimisation in the field of multi-generational management was
examined in detail and recommendations for action were drawn
up to promote cooperation and facilitate the transfer of
knowledge between the individual generations.
We regularly have the effectiveness of our activities evaluated by
external organisations. The results show that the BMW Group’s
position in the Women’s Career Index has consistently improved
from year to year, with the Company ranking third in 2024. The
Supervisory Board adopts composition targets once a year for
the Board of Management and Supervisory Board. These targets
incorporate a diversity policy.
The BMW Group is also aware of the need to achieve a high per-
centage of women in its future talents programmes. The aim is
to ensure that the share of women in the total workforce and in
management functions continues to rise in the future. Although
more male applicants apply for apprenticeships in technical oc-
cupations, there has been a steady increase in the share of
women in management positions in technical professions. The
BMW Group’s goal1 is to achieve a 22% share of women in man-
agement positions by 2025 and to work towards attaining a 23-
25% corridor by 2030. There are two main goals behind in-
creasing the share of women in management positions:
—
Increasing performance via diverse teams
—
Unlocking women’s earning potential.
In doing so, the Company also fulfils legal requirements.
The target indicator is determined on the basis of a comparison
with competitors, developments in previous years, planned staff-
ing ratios and the percentage of women in STEM subjects. The
HR department reviews the progress achieved and reports reg-
ularly to the Board of Management and the Supervisory Board,
and also within the scope of long-term corporate planning and at
the annual meeting of Works Council representatives. No adjust-
ments to these objectives are planned at present.
Number of employees by gender2
in headcount
2024
Total number of employees
158,441
Male
127,317
Female
31,080
Other
–
Not disclosed
44
Gender distribution at management level2
2024
in headcount
in %
Number of employees at management
level
12,755
100.0
Male
10,003
78.4
Female
2,752
21.6
Other
–
–
Not disclosed
–
–
The distribution of employees by age group2
2024
in headcount
in %
Total number of employees
158,441
100.0
Employees under 30 years
23,213
14.7
Employees between 30 and 50 years
99,954
63.0
Employees over 50 years
35,274
22.3
1 Joint Operation Spotlight Automotive Ltd. is not included in the target.
2 Assurance level: reasonable assurance.
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Combined Management Report
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Other Information
Sustainability Statement
Equal opportunities and equal pay for equal work
At the BMW Group, equal opportunities are also reflected in our
remuneration system, which applies irrespective of a person’s
sex, gender identity, skin colour, religion, national origin, social
background, political or other beliefs, ethnic origin, age, sexual
orientation or disability. Gender-equal pay plays a key role, spe-
cifically with regard to salary development and variable pay-
ments. Regular comparisons of women’s and men’s pay are an
integral part of this. The objective of the review is to ensure that
the remuneration structures result in fair pay. Uniform principles
form the basis for a fair and balanced remuneration system
throughout the Company. In terms of total remuneration, we aim
to ensure that our employees earn above median for the relevant
labour market. To ensure this, we participate in remuneration
studies each year on a worldwide basis. Uniform principles pro-
vide the basis for a fair and balanced remuneration system
worldwide. In addition, at all BMW Group locations, the level of
performance and the results achieved by employees are an im-
portant factor in determining their remuneration. The Company
remunerates employees for their individual and collective perfor-
mance in accordance with local labour laws. The measures re-
ferred to above to ensure gender-equal pay are applied on an
ongoing basis.
In the reporting year, the Company determined an unadjusted
↗ Gender Pay Gap for the first time. This takes into account total di-
rect remuneration plus key benefits. The gender pay gap in the
reporting year stood at –10.9%. The gender pay gap in favour
of female employees of the BMW Group is largely due to struc-
tural effects. As an automobile manufacturer, a large share of the
BMW Group's employees work in production, where a dispropor-
tionately large percentage of the workforce is male. Given that
wage levels are lower in production than for example for admin-
istrative or development roles, female employees benefit from an
advantage when it comes to pay.
175
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN THE SUPPLIER NETWORK
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Inadequate working time impacts workers’ income, well-being and living conditions at tier-1 supplier loca-
tions.
Negative
impact
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain BMW
Group Supplier Code of Conduct
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
− Analysis of the effectiveness of the
processes and measures imple-
mented
− Commitment to initiatives
− Risk analysis
− Sustainability questionnaire
(online assessment)
− On-site assessments of supplier lo-
cations (on-site assessment)
− Complaints procedure
The non-existence of works councils and consultation impacts workers rights at tier-1 suppliers - especially
when supplier locations are based in countries where such rights may be restricted in law and/or practice.
Negative
impact
Workplace accidents at tier-1 supplier locations resulting in physical injury reduces an employee ability to live
a fulfilling life, or may in worst cases be fatal.
Negative
impact
The tier-1 suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise),
may contribute to the development of chronic diseases and impairments among employees worldwide, e. g.
inadequate ergonomic considerations in the workstations.
Negative
impact
Lack of free choice of employment affects living and working conditions of workers at Tier-1 supplier loca-
tions worldwide.
Negative
impact
Violence, harassment (incl. inhumane treatment) and discrimination at the workplace affect the living and
working conditions for employees at supplier locations (tier-1).
Negative
impact
The non-existence of works councils and consultation impacts workers rights at n-tier suppliers - especially
when supplier locations are based in countries where such rights may be restricted in law and/or practice.
Negative
impact
− Process for the responsible man-
agement of raw materials
− Raw materials strategy
» Raw materials security and strat-
egy
− BMW Group Supplier Code of Con-
duct
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
− Analysis of the effectiveness of the
processes and measures imple-
mented
− Objectives for local projects
− Risk analysis
− Reduction of critical virgin raw ma-
terials
↗ Circular Economy and Resource
Use
− Certification and traceability of raw
materials supply chains
− Commitment to initiatives
− Implementation of
local projects
− Complaints procedure
Workplace accidents at n-tier supplier locations (exploitation of raw materials) resulting in physical injury re-
duces an employee ability to live a fulfilling life, or may in worst cases be fatal.
Negative
impact
The n-tier suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise),
may contribute to the development of chronic diseases and impairments among employees worldwide, e. g.
inadequate ergonomic considerations in the workstations.
Negative
impact
Lack of free choice of employment affects living and working conditions of workers at n-tier supplier locations
worldwide.
Negative
impact
The use of child labour at n-tier supplier locations deprives children of education and a normal childhood,
perpetuates poverty and inequality, and increases the likelihood of physical and emotional abuse.
Negative
impact
176
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Combined Management Report
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Other Information
Sustainability Statement
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Providing training and capacity building impact the skills and capabilities of the workers at suppliers' loca-
tions.
Positive
impact
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain
− BMW Group Supplier Code of Con-
duct
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Analysis of the effectiveness of the
processes and measures imple-
mented
− Objectives for local projects
− Training programme
− Implementation of
local projects
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working con-
ditions, specifically working time.
Risk
− Multistage due diligence process to
uphold environmental and social
standards in the supply chain
− Process for responsible raw mate-
rial management
− Raw materials strategy
» Raw materials security and strat-
egy
− BMW Group Supplier Code of Con-
duct
− No targets that focus exclusively
and thematically on material im-
pacts, risks and opportunities
− Overarching targets for the proce-
dures used to perform due diligence
in the supplier network
− Analysis of the effectiveness of the
processes and measures imple-
mented
− Objectives for local projects
− Commitment to initiatives
− Risk analysis
− Sustainability questionnaire (online
assessment)
− On-site assessments of supplier lo-
cations (on-site assessment)
− Complaints procedure
− Reduction of critical virgin raw ma-
terials
↗ Circular Economy and Resource
Use
− Certification and traceability of raw
materials supply chains
− Implementation of
local projects
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with working conditions, specifically working time.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working con-
ditions, specifically health and safety.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with working conditions, specifically health and safety.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with other work-
related rights, specifically forced labour.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with other work-related rights, specifically forced labour.
Risk
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working con-
ditions, specifically freedom of association, including the existence of work councils.
Risk
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controver-
sies in connection with working conditions, specifically freedom of association, including the existence of
work councils.
Risk
Upstream material Own Operations material Downstream material
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Remuneration Report
Other Information
Sustainability Statement
Compliance with environmental and social standards is a key
principle in the BMW Group’s purchasing and supplier network.
This includes, in particular, respect for human rights and, in this
connection, compliance with environmental standards and the
principles of business ethics. Particular emphasis is placed on the
responsible procurement of raw materials. The circular economy
also makes a significant contribution to environmental and hu-
man rights issues given that it reduces, among other things, the
need for virgin raw materials. ↗ Circular Economy and Resource Use
In the upstream value chain, the workforce employed by the
BMW Group’s suppliers could potentially be affected by material
negative impacts. This does not only affect the workforce in the
production plants of direct suppliers, but also people who work in
the extraction and processing of raw materials. In most cases,
actual significant negative social or environmental impacts are
the result of individual incidents. They are identified either via the
BMW Group’s control mechanisms, such as on-site assess-
ments, or via various grievance mechanisms for reporting poten-
tial violations. The material risks for the BMW Group depend on
the negative impacts identified. Negative impacts may result in
risks of shortages or delays in the supply chain or in damage to
the BMW Group’s reputation.
The BMW Group has a multistage due diligence process in place
that covers a range of topics related to environmental and social
standards in the supply chain. Among other things, it takes into
account the material impacts and risks in such areas as working
conditions, equal treatment and opportunities for all, as well as
other work-related rights. Environmental aspects such as pollu-
tion of water and soil, water, resource use and waste are also
included. ↗ List of material Impacts, Risks and Opportunities
The BMW Group maintains a holistic overview of environmental
and social standards within its supplier network, without narrow-
ing its focus on any specific issue. For this reason, the procedures
followed to perform due diligence in the supplier network are
connected with overarching targets. The targets apply to the cur-
rent financial year and are generally reviewed on a quarterly ba-
sis. They also have a direct impact on the remuneration of the
Board of Management and senior executives and are deter-
mined using a comprehensive internal consultation process. Due
consideration is also given to the concerns of external stakehold-
ers. This applies in equal measure to all of the targets for envi-
ronmental and social standards in the supply chain shown in the
following. There are no specific targets relating exclusively to ma-
terial sustainability topics, which is why no detailed information
is presented in this regard.
The Purchasing and Supplier Network division is responsible for
developing and implementing due diligence processes within the
supply chain. When integrating corporate due diligence into busi-
ness processes, the BMW Group relies as far as possible on
standardised procedures developed by industry-wide or cross-
sector initiatives. The company is committed to the view that
compliance with environmental and social standards in complex
and dynamic supplier networks can, as a rule, only be guaran-
teed by means of standardisation and concerted action. It is for
this reason that the BMW Group is involved in a number of indus-
try-wide and cross-sector initiatives. These include the Sector di-
alogue (Branchendialog Automobilindustrie), the Supply Chain
Sustainability Working Group of the German Association of the
Automotive Industry (VDA), the Responsible Business Alliance
(RBA), and Drive Sustainability. Some of these are multi-stake-
holder initiatives involving companies such as the BMW Group as
well as trade unions and NGOs which represent the interests of
workers in the value chain. The BMW Group is committed to this
on an ongoing, active and permanent basis.
The ↗ Due Diligence process for environmental and social standards in the
supplier network is presented in detail on the BMW Group Website.
Due Diligence in the supplier network
A multistage due diligence process firmly embeds responsibility
for environmental and social standards in the supply chain within
all relevant areas of the BMW Group. Environmental and social
standards have been, amongst others, integrated as mandatory
criteria to be observed during decision-making in the develop-
ment of components, commodity strategies, procurement pro-
cesses, supplier development and the target management pro-
cess.
The BMW Group sources components, materials and other ser-
vices from a large number of manufacturing and distribution sites
worldwide. The related social and environmental due diligence
requirements are specified as minimum requirements for suppli-
ers in the ↗ BMW Group Supplier Code of Conduct. The “BMW Group In-
ternational Terms and Conditions for the Purchase of Production
Materials and Automotive Components” (IPC) apply to suppliers
of production material and vehicle components. The General
Terms and Conditions for Indirect Purchasing (GTC) apply to
suppliers of non-production-related material.
Upon conclusion of the contract, suppliers who have a direct
business relationship with the BMW Group (direct suppliers) un-
dertake, on the basis of the BMW Group Supplier Code of Con-
duct, to ensure that the stipulated human rights and environmen-
tal requirements are met and that these requirements are also
extended to suppliers who do not have a direct business relation-
ship with the BMW Group (indirect suppliers).
The BMW Group Supplier Code of Conduct is based, among
other things, on the following external frameworks and guide-
lines and incorporates relevant requirements from them:
—
the German Supply Chain Due Diligence Act (Lieferketten-
sorgfaltspflichtengesetz [LkSG])
—
the International Bill of Human Rights, comprising the
United Nations (UN) Universal Declaration of Human Rights,
the International Covenant on Civil and Political Rights (IC-
CPR) and the International Covenant on Economic, Social
and Cultural Rights (ICESCR)
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Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
—
The UN Guiding Principles on Business and Human Rights
—
The International Labour Organization (ILO) Declaration on
Fundamental Principles and Rights at Work
—
The ILO’s Declaration of Principles concerning Multinational
Enterprises and Social Policy (MNE Declaration) and ILO
Standard 169
—
Guidelines for Multinational Companies issued by the Or-
ganisation for Economic Cooperation and Development
(OECD)
—
The Ten Principles of the UN Global Compact
The BMW Group Supplier Code of Conduct contains clear provi-
sions on responsible business practices, environmental respon-
sibility, social responsibility and the use of critical raw materials.
The “Social Responsibility” section of the BMW Group Supplier
Code of Conduct deals extensively with working conditions and
human rights. This includes, among other things, the issues of
child and forced labour, slavery and human trafficking. Freedom
of association and the right to collective bargaining, protection
against discrimination, and the right to health and safety in the
workplace are also discussed at length. The section on environ-
mental responsibility focuses on the reduction of air, water and
soil pollution, and addresses the topics of decarbonisation, re-
source conservation and the circular economy. This includes low-
ering the consumption of energy, water and raw materials. The
section also covers measures to protect biodiversity and the re-
sponsible handling of hazardous materials and waste. This in-
cludes, among other things, the application of the Minamata
Convention, the Stockholm Convention, the Basel Convention
and the REACH Regulation, in addition to other laws and provi-
sions on the handling of hazardous materials, chemicals and
substances.
Standardised procedures are embedded in the procurement pro-
cess. These include the industry-wide sustainability question-
naire developed by the Drive Sustainability initiative (online as-
sessment) and risk-based audits at supplier locations (onsite as-
sessments) in accordance with the standards of the Responsible
Business Alliance (RBA) and the Responsible Supply Chain Initi-
ative (RSCI). These procedures enable that expectations regard-
ing human rights and the environment are considered when di-
rect suppliers are selected.
A comprehensive analysis of the effectiveness of the due dili-
gence procedures in the supplier network was developed in ac-
cordance with the requirements of the German Supply Chain Due
Diligence Act (LkSG). It includes a functionality assessment and
a performance assessment, conducted regularly and refined on
an ongoing basis. The functionality assessment focuses on due
diligence instruments and procedures in the supply chain, such
as risk analysis, the complaints procedure, and preventive and
remedial measures. It can be used to identify weaknesses in the
process. The findings of the analysis are incorporated into an on-
going enhancement process. The performance assessment fo-
cuses in particular on preventive and remedial measures. The re-
sults and conclusions make it possible to implement targeted
measures to enhance the due diligence process effectively.
Risk analysis and control mechanisms
The BMW Group consistently monitors and assesses the sus-
tainability risks in its supplier network in business relationships at
both potential and active supplier locations. It uses a range of in-
ternal and external data sources, both its own and those com-
monly used in the industry, to identify and assess abstract envi-
ronmental and human rights risks. These include country- and
commodity-specific indicators, as well as media analyses at the
Group and location levels. The findings of the standardised
online and on-site assessments form the basis for a specific risk
analysis of direct suppliers, which is carried out annually and
when circumstances require it. The inspections of supplier sites
are generally carried out by external third parties or, to supple-
ment quality assurance, by BMW Group’s sustainability experts.
The online and on-site assessments are also used to establish if
the supplier is complying with the standards set out in the
BMW Group Supplier Code of Conduct. By signing a contract, di-
rect suppliers undertake to implement, expand or continue to im-
plement the necessary preventive or remedial measures, as well
as control measures such as ISO certifications (ISO 14001 and
ISO 45001), within a specified period. Depending on the risk, the
requirements are to be extended to their suppliers. The extent of
the preventive measures is based on the potential risks, the na-
ture and scope of the business activity and the size of the sup-
plier. These measures are queried, validated and evaluated as
part of the procurement process using the Drive Sustainability
online assessment. The aim is to minimise potential risks or to
eliminate any deficiencies. In the reporting year, 12,078 supplier
sites were assessed using the online assessment. If deviations
from the BMW Group’s requirements are identified, the Purchas-
ing department agrees preventive measures with the supplier
and monitors their prompt implementation. In the reporting year,
79% of the suppliers of production-related material imple-
mented the specified preventive measures at the time of award-
ing. In the reporting year, a further 17% of the suppliers of pro-
duction-related materials had agreed on specified preventive
measures at the time of awarding. Suppliers of production-re-
lated goods and services are required to successfully implement
the measures up to the start of production. As part of the internal
target management system, the implementation status of the
externally validated prevention measures is measured in the year
in which production starts.
The BMW Group has put additional control mechanisms in place
for direct suppliers in high-risk regions or high-risk commodities.
Key instruments in this respect are on-site assessments of envi-
ronmental and social standards at supplier locations using in-
dustry-wide or cross-industry assessment programmes, such as
the Validated Audit Programme (VAP) provided by the RBA and
the Responsible Supply RSCI. In the reporting year, the Company
inspected a total of 132 active and potential supplier sites. On-
site assessments also include interviews with the workforce at
the supplier sites being inspected to identify actual or potential
impacts.
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Other Information
Sustainability Statement
Preventive and remedial measures
Remedial or preventive measures are taken where risks or actual
or potential impacts are identified at direct suppliers and, when
circumstances require it, at indirect suppliers. These measures
form an integral part of our processes ↗ Risk analysis and control
mechanisms. They apply across all topics relating to due diligence
on environmental and social standards in the BMW Group supply
chain and are based on the requirements laid down by the LkSG.
The measures are not limited to individual issue-specific content.
In order to achieve positive impacts preventively, the BMW Group
provides mandatory training for its own purchasing staff on a
needs basis. The BMW Group also provides voluntary training for
purchasing staff, process partners and suppliers on the topic of
sustainability in the supply chain. In addition, training documen-
tation is reviewed by the direct suppliers for their own field of
business. The training courses explain how environmental and
social standards are interrelated and clearly communicate the
BMW Group’s expectations and due diligence measures. Partic-
ipants in the training programme are made aware of the im-
portance of due diligence in the supply chain and learn how to
identify and minimise risks. The BMW Group provides specific
training both as part of a comprehensive skills development pro-
gramme and in special seminars for suppliers, such as a certified
training course on the topic of sustainability. Moreover, suppliers
can access industry-wide training programmes run by initiatives
such as the RBA, in which the BMW Group is involved. These
training programmes are integrated into the process of conduct-
ing on-site assessments at supplier sites as, among other things,
an additional measure to increase their effectiveness.
Where risks or actual or potential impacts are identified during
on-site assessments, individual measures are put in place to pre-
vent or minimise them. This approach is a standard part of the
follow-up to the assessments. In these cases, the supplier draws
up an action plan to remedy the findings. The BMW Group mon-
itors the implementation of the measures in cooperation with the
RBA and the RSCI. Suppliers are provided with training to sup-
port their efforts. If the findings are categorised as severe, the
effectiveness of the agreed measures is verified in an on-site clo-
sure assessment.
The BMW Group has set itself the goal that all direct supplier
sites that have completed an on-site assessment shall meet lo-
cally applicable statutory requirements for sustainability as well
as international human rights standards (BMW Group minimum
requirements). In 2024, 22 of the 28 closure assessments car-
ried out found that all violations of the BMW Group's minimum
requirements (priority non-conformities) identified in the initial
assessments had been remedied. In 6 cases, the closure assess-
ment performed was not yet able to confirm that the agreed
measures had been implemented successfully. In these cases,
the BMW Group and suppliers jointly agreed on measures again,
some of which were already completed during the reporting year.
A further inspection in the form of another on-site assessment
has either been planned or already successfully carried out in all
of the cases. Two cases dating from 2023, where the closure
assessment initially was not able to confirm that the measures
had been implemented, have since been resolved by the suppli-
ers. The effectiveness of the remedial measures was confirmed
in further on-site assessments conducted in mid-2024.
Complaints procedure
The BMW Group’s objective is to protect its business operations
from negative impacts related to human rights and the environ-
ment, and to correct any substantiated (verified) evidence of en-
vironmental or human rights violations in the upstream supply
chain by arranging remedial measures.
To this end, both our own and existing standardised instruments
were established, some of which the BMW Group helped to de-
velop. The instruments are accessible to employees, suppliers
and other third parties alike. For more on the BMW Group Com-
pliance organisation’s notification system, see » Compliance and
notification systems.
In addition to established internal grievance mechanisms, the
BMW Group continuously monitors and tests new applications
developed by external organisations, such as the RBA. These
can be added to the existing complaints system as needed. In
addition, the BMW Group has been involved in a working group
of the sector dialogue (Branchendialog Automobilindustrie) on
establishing a Company-wide complaints mechanism in Mexico
and, since 2024, in piloting it. Information on the reporting
channels available can be found on the BMW Group website and
elsewhere. In the case of Company-wide channels, communica-
tion also takes place via the relevant initiatives. All notifications
received are checked and documented and processed using a
Group-wide electronic case management system. In the report-
ing year, 22 notifications of potential violations of the sustaina-
bility principles in the supply chain were received through the re-
porting channels. Of these, 16 were resolved in the reporting
year, with none of the reports turning out to be justified. If the
notifications are substantiated, we work with the supplier to initi-
ate suitable remedial and preventive measures. A target date is
agreed by which time the implementation of each measure is to
be completed. The measures undertaken are evaluated after the
deadline has passed.
If a supplier refuses to implement the necessary remedial
measures, an adjustment may be made to the supply chain. If
necessary, the business relationship will be suspended tempo-
rarily while efforts are made to mitigate the risk. A termination of
the business relationship will only be considered if no other ef-
fective means are available and the Company is unable to further
leverage its ability to exert influence. The BMW Group strives to
avoid this scenario by carefully selecting suppliers and providing
them with the skills and support they need to further improve
their own performance with regard to sustainability. In addition,
the Company plays an active role in cross-sector initiatives to ad-
dress systemic issues in a sustainable manner. In the reporting
year, no existing supplier relationship was terminated due to se-
vere sustainability violations.
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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
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
CONSUMERS AND END-USERS
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
The IT infrastructure used in the BMW Group could negatively impact personal data security, e.g., through
fraudulent use of personal data.
Negative
impact
− Systems-based incident manage-
ment as part of the information
security management system
(ISMS)
− Policies for the safe handling of cus-
tomer data in IT
− Securing departmental IT
− Data protection projects on the
rights of data subjects
− Strengthening customers’ personal
responsibility in relation to their
personal data
− Launch of the Passkey procedure
− Synchronised and automated imple-
mentation of data subject rights
By not providing transparency about data privacy practices (such as data collection, storage, use of customer
data) and how consumers can protect their data, customers could be prevented from making informed deci-
sions and protecting their sensitive data.
Negative
impact
Reputational risk in case of incidents concerning personal data security of consumers and end-users.
Risk
Access to information allows consumers to make informed decisions about products and services – both in
terms of performance and durability of products as well as for proper handling, such as environmental im-
pacts during the use phase and end-of-life.
Positive
impact
− Customer experience at the core of
the customer, brand and sales sys-
tem (sales strategy framework)
− Customer orientation (increasing
customer satisfaction)
− Training for employees in direct
contact with customers
− Review and optimisation of pro-
cesses and responsibilities
Information related to health & safety ensures that consumers can properly follow product and service in-
structions to safeguard their wellbeing.
Positive
impact
− Customer experience at the core of
the customer, brand and sales sys-
tem (sales strategy framework)
− Customer orientation (increasing
customer satisfaction)
− Enhanced transparency via the ve-
hicle footprint
− Owner’s manual and safety booklet
Increase of satisfaction, loyalty, and trust of existing customers through well informed decisions and satisfac-
tion with their purchase.
Opportunity
The BMW Group’s product portfolio can contribute to reduce risks to the health and safety of end-users, e. g.
through security systems for drivers and other road users.
Positive
impact
− Corporate quality ensures that the
highest quality and safety stand-
ards are met
− All BMW Group products and ser-
vices are required to meet the high-
est standards in terms of quality
and safety
− Adressing 100% of complaints re-
garding safety-related deficiencies
within one year
− Implementation of product quality
and product safety standards
− Management of hazardous materi-
als to exclude problematic sub-
stances as early as during the vehi-
cle design stage
− Sensitising and empowering cus-
tomers to drive safely
BMW Group has a positive impact on health and safety of children when important security information and
installations guidelines are made available to the public.
Positive
impact
Reputational risk in the event of of regular or extremely harmful accidents and risks caused by BMW Group
products and services.
Risk
Upstream material Own Operations material Downstream material
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
Customer orientation
Characteristics of consumers and end-users
ESRS S4 relates to a company’s consumers and end-users. The
BMW Group defines these stakeholders as all those who choose
its products and services. In the materiality assessment, all con-
sumers and end-users were considered on an equal footing, in
line with this definition. No differentiation was made between
specific groups of people.
At the BMW Group, consumers and end-users comprise, among
others, customers purchasing new and used vehicles of all
brands, products from the Financial Services segment or digital
services such as ConnectedDrive. The Company makes a dis-
tinction between customers purchasing new vehicles for private
or business use (corporate sales, B2B). Private customers pur-
chase a vehicle for their own personal use in their own name and
for their own account through purchase, financing or leasing. By
contrast, business customers purchase, finance or lease vehicles
on behalf of and for the account of their businesses.
As a global company, the BMW Group bears a social responsi-
bility across the entire value chain. This also includes ensuring
that fair working conditions and human rights are upheld in the
sales organisation. ↗ Social Responsibility
The BMW Group always focuses on the customer
The BMW Group’s consistent focus on the customer is the basis
for its endeavour to create the best customer experience for the
mobility of tomorrow. The BMW Group is entering the next era of
individual mobility with its NEUE KLASSE in 2025. The NEUE
KLASSE is an expression of the Company’s transformation
within the strategic areas of focus: electromobility, digitalisation
and circularity.
With the Customer, Brands and Sales (CBS) system adopted in
2021, the BMW Group is making customer experience the focus
of its marketing and sales activities. Key elements here include
the seamless linking of digital and physical contact points, as well
as addressing customers directly with a clear focus on their
needs through the consistent development of processes, sys-
tems and structures ↗ Access to information. Within the Company,
the CBS Strategy, Sales Management, Digitalisation department
is responsible for implementing the sales strategy. The relevant
departments are responsible for implementing the measures.
Analysing market trends and brand perception
To identify customer perceptions and needs in relation to the
Company, brands and products and design, specialist depart-
ments focus on monitoring and analysing market trends and the
changing dynamics of environmental conditions. The corporate
strategy unit is ultimately responsible for market research.
In addition, surveys are regularly conducted among new car buy-
ers with regard to the product portfolio of the BMW Group’s
brands. The perception of the individual brands BMW, MINI,
BMW Motorrad and Rolls-Royce among buyers and potential
buyers of premium and luxury vehicles is surveyed and analysed
in detail on a regular basis. The gained customer insights are in-
tegrated in brand and marketing strategies. These play a key role
in how we address our target groups, design our advertising and
our communications. In addition, these findings are taken into
account in specific strategies for sales, product design and com-
munication. All of this plays a major role in ensuring that the
BMW Group is closely aligned with customer needs. Further-
more, feedback from the general public and experts is incorpo-
rated into the process.
Ensuring customer satisfaction
Customer satisfaction and enthusiasm are at the core of the cus-
tomer relationship and form the basis for the long-term economic
success of the BMW Group and, consequently, the profitability of
the Company.
The Corporate Quality department continually collects and anal-
yses data to ensure a high level of customer satisfaction. Surveys
that collect feedback on product, sales and after-sales service
provide in-depth insights into the customer experience. Feed-
back on the BMW, MINI and BMW Motorrad brands and the ser-
vices provided is systematically collected after a purchase as part
of customer satisfaction surveys. Customers can submit their re-
sponses over a period of several weeks via a variety of touch-
points in sales and service processes. In addition, customers are
also asked about how they are using their vehicle and how
satisfied they are with it in the first few months after taking deliv-
ery of a new vehicle.
The results of the surveys contribute directly to further improving
processes. Together with the relevant departments, a catalogue
of measures is drawn up based on a detailed analysis of feed-
back from customers. This may include the following points:
—
Training for employees in direct contact with customers,
both within the company and the sales organisation
—
Review and optimisation of processes and responsibilities
To measure its success, the Company refers to a specific indica-
tor in its core markets each year. The survey includes feedback
from customers who interacted with BMW Group sales and ser-
vice operations during the period of the survey. The insights
gained are used to optimise processes and the product, sales
and service experience for customers.
Definition and implementation of sales targets at the BMW Group
Strategic sales targets are defined as part of the overall Com-
pany-wide strategy process. This provides for the permanent
and long-term monitoring of the variables and the management
of the measures geared towards achieving our ambitious goals.
In this context, the Board of Management decides each year on
the continuation of existing targets and the adoption of new
ones, or any necessary adjustments. Once approved by the Su-
pervisory Board, the results are integrated into the corporate tar-
get system. These targets are converted into specific require-
ments for the individual departments. This ensures that the im-
plementation of the targets is closely monitored and that success
in achieving them can be measured specifically. ↗ Performance
Indicators and Performance Management
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
The customer focus performance component (product and cus-
tomer service quality) was once again set as a non-financial tar-
get for the Board of Management in the reporting year. Customer
satisfaction serves as a performance indicator.
As part of the overall target management process, the Company
reviews the progress made in achieving targets over the course
of the year. The results, including any necessary adjustment
measures, are reported regularly to the Board of Management
and the Supervisory Board.
Access to information
Solutions-focused customer service
The BMW Group provides numerous ways for customers to con-
tact the Company. The Customer Interaction Centre (CIC), which
can be contacted over the phone, by email or letter and, in an
increasing number of countries, via a chat function, receives cus-
tomer concerns. These concerns are handled by CIC agents who
go through mandatory training to ensure a high standard of qual-
ity. ↗ BMW Group Code of Conduct
Once the CIC receives a customer request, the first step involves
a CIC employee logging and categorising it. For product-related
queries, vehicle data is recorded once the person has identified
themselves. Standardised intake processes ensure that they are
dealt with quickly and in a solutions-focused manner. At the end
of the process, customers are invited to assess how well the is-
sue was resolved. CICs operate on behalf of local companies.
This ensures that specific national or regional regulations relat-
ing to standards, systems and partner contracts are taken into
account.
Other means of contact can be used beyond the CICs. For exam-
ple, customers may reach out to the Company’s global network
of retail and service partners for direct and personal support. The
My BMW and MINI apps also provide assistance. Furthermore,
external social media channels operated by the BMW Group pro-
vide customers and other interested parties with the opportunity
to express their request.
Access to quality information
The BMW Group provides extensive documentation to ensure
the safe use and operation of its products and services, as well
as information on the broad range of options offered by (digital)
services. Subject areas range from product and data safety to
how to operate the product, health and safety, and information
on accessories and components. The documents are available
both in printed form, for example owner’s manuals and safety
booklets, and digitally, accessible via the vehicle or the Driver’s
Guide app.
Following the launch of the new all-electric MINI Cooper* in No-
vember 2023, the safety booklet will replace the printed owner’s
manual in all markets where the legal requirements are met.
Ongoing optimisation of access to information
During the reporting period, the BMW Group took additional
steps to maintain and ensure the high quality of the processing
of inquiries regarding products and services for its customers
across all touchpoints. To this end, a project focusing on optimis-
ing all aspects of the customer experience, processes, digitalisa-
tion and customer care structures holistically was set up in the
sales organisation.
In addition, the “Customer Channels, Digital Commerce, Con-
nected Company” unit was established as part of a strategic re-
alignment of the “CBS Management, Sales Strategy and Digital-
isation” department. The aim is to further enhance the provision
of information to customers. By combining content and channels
in such a targeted way, we can ensure that customers have ac-
cess to consistent, reliable and accurate information across all
touchpoints. In doing so, the needs of all customers are ad-
dressed equally.
Making sustainability transparent
In its communications on sustainability, the BMW Group focuses
on openness and transparency, which are backed up by targeted
measures and processes. This is also in response to greater ex-
pectations within society with regard to the environmental cre-
dentials of products and services, and tighter legal requirements.
To this end, the company has extended the disclosure of sustain-
ability information on product level. The vehicle footprint provides
a summary of key vehicle data, including information on fuel/en-
ergy consumption, CO2e emissions over the entire life cycle of the
vehicle, the use of secondary materials, and important social
sustainability factors. The vehicle footprint has been available for
numerous new BMW and MINI models at launch since it was in-
troduced in 2023.
BMW and MINI customers can also use the My BMW and MINI
apps to obtain access to detailed personal driving and efficiency
statistics, which can help them to analyse their driving behaviour
and their fuel consumption.
* ↗ Consumption and Carbon Disclosures.
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Data security and data protection
Customer data protection
A relationship with our customers built on trust is of great im-
portance to the BMW Group. In accordance with applicable laws,
priority is given to protecting privacy, maintaining confidentiality
and ensuring the integrity of personal data.
Within the Company, the Group Data Protection department per-
forms the role of data protection officer, who is responsible for
coordinating the global data protection network. To ensure that
personal data is processed in compliance with the law, their core
tasks include monitoring compliance with all data protection
laws. The department also provides training for employees.
In addition, the Group Data Protection department advises on
new projects, reviews compliance with data protection require-
ments and conducts process audits. In this capacity, it acts inde-
pendently and without being subject to outside or hierarchical di-
rection. It works closely together with the relevant data protection
authorities, especially when it comes to clarifying fundamental
data protection issues arising out of the growing connectivity of
vehicles.
Dealing with the opportunities and risks associated with
digitalisation
Advancing digitalisation and automation are opening up a wealth
of opportunities. Areas where artificial intelligence is applied, for
example in self-driving cars, the optimisation of production pro-
cesses or personalised customer experiences, offer great poten-
tial, but also entail risks, such as risks to data privacy and the
threat of cyberattacks ↗ Risks and Opportunities.
It is for this reason that the BMW Group continually develops its
processes and systems. Identified data protection risks that may
have both systemic and individual impacts are dealt with imme-
diately. In the reporting year, the following measures, among oth-
ers, were implemented or expanded to ensure data quality and
to increase data security:
—
The consolidation and revision of customer profiles helps to
ensure data consistency and accuracy.
—
The CIC and the local data protection officers help custom-
ers to take responsibility for how they manage their own
data.
—
The launch of the Passkey procedure is a new, even safer
way to register for online services.
—
A system-wide approach has been implemented for a syn-
chronised and automated exercise of data subjects’ rights in
accordance with the General Data Protection Regulation
(GDPR).
Furthermore, specific data protection guidelines have been de-
fined for digital communication channels, such as the BMW and
MINI websites and the My BMW and MINI apps. Among other
things, they include requirements on app development, define
terms such as ”personal data” and provide specific instructions
on the secure handling of customer data.
Organisation of and approach to preventing the misuse of data
Personal data obtained through contact with customers is col-
lected, processed and used in accordance with data protection
laws. The BMW Group collects data related to vehicles-, custom-
ers- and customer groups that could be linked to specific individ-
uals using a combination of different identifiers. To prevent this
and any possible negative repercussions for customers, the
Company implements various measures, from anonymisation to
solutions such as Privacy by Design.
In addition, all systems are regularly checked for compliance with
the latest IT security standards. Specialised teams of experts
systematically search for potential weak points. New findings are
integrated into the development of mandatory safety standards.
The BMW Group uses the term “customer trust” to denote trust
that data is processed correctly and securely, which is the cor-
nerstone of a sustainable business relationship. A systematic ap-
proach to incident management is essential in order to prevent,
detect and resolve possible incidents involving customer data. In-
cident management is an integral part of the information security
management system (ISMS) and operates worldwide in cooper-
ation with the Customer Data Delegates (CDDs). The CDD role is
firmly established within the sales companies, financial services
companies and corresponding central divisions.
The global CDD network ensures that tasks are carried out sys-
tematically and to a consistently high standard. The following on-
going measures and targets are being implemented and are due
to run until 2026:
—
internal auditing of sales companies
—
setting up of project teams to secure departmental IT
—
data protection projects on the rights of data subjects
—
regular global and regional CDD workshops
With the aim of minimising risks when customer data is pro-
cessed in various IT applications, the BMW Group takes a struc-
tured approach that gives equal consideration to all customer
groups.
The goal of minimising the Company risk associated with a cus-
tomer data breach is set out in the target management process
which applies throughout the organisation. Responsibility for this
lies with the CDDs. Those with functional responsibility in the
business and IT departments are also involved.
In the unlikely event of a customer experiencing a negative im-
pact, a structured incident response process is activated. Group
Data Privacy Protection, the subsidiary in question and the cor-
responding CIC are involved in this process. Together they inves-
tigate the incident and take steps to resolve it.
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Structured approach to minimizing risks when processing customer data
Protecting vehicle data
The BMW Group is responsible for protecting any vehicle data
transmitted. This includes the secure transmission and pro-
cessing of such data by BMW Group contractors. BMW Group
automobiles use internet connections or private networks to con-
nect to the ConnectedDrive backend or third-party services. A
special gateway controls access to the internet in accordance
with the extended vehicle approach, which is based on the ISO
20078 standard. This approach ensures compliance with data
protection and data security requirements at a high level, while
also fulfilling legal cybersecurity requirements, such as the UN
R155 regulation.
As part of the CarData service offering, customers purchasing
BMW, MINI and Rolls-Royce automobiles are provided with full
transparency and control over how their data is shared with third
parties. CarData meets the requirements of the EU General Data
Protection Regulation (EU GDPR) with regard to the right to ac-
cess information and data portability, while also providing a basis
for meeting the requirements of the Data Act in 2025. The roll-
out of this service in Europe in 2017 and in the USA in 2020 is
testament to the BMW Group’s commitment to complying with
country-specific data protection regulations. The California Con-
sumer Privacy Act (CCPA) that applies in the USA is another ex-
ample of this.
Health and safety
Product quality and product safety standards
All BMW Group products and services are required to meet the
highest standards in terms of quality and safety, People’s safety
has top priority, right from the vehicle development stage. The
Corporate Strategy unit bears overall strategic responsibility for
product quality. Responsibility for the vehicle safety strategy lies
with the development for the entire vehicle. The relevant depart-
ments are responsible for implementing the measures.
Data transparency is created by collecting metadata for every
IT application on a central platform. Monetary risk values are
calculated automatically.
The responsibilities for the respective
applications are defined within
the CDD network.
The implementation of the measures
is continuously measured and re-
ported internally.
Measures such as increasing IT security,
decommissioning systems or
adapting interfaces are carried out.
Risk minimization
in the processing of
customer data in
IT applications
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Optimum chassis tuning, highly effective braking systems and
stable passenger compartments are of key importance in this re-
gard. In addition, the vehicles are equipped with the latest safety
systems for active and passive driving safety, which both reduce
the risk of accidents occurring – for example, through collision
warning or lane departure warning systems – and mitigate the
consequences of an accident, for example via airbags or seat
belts. To this end, the responsible Company departments con-
tinuously monitor the latest research findings on health and
safety and take them into account in the requirements for vehicle
development.
Safety concepts for BMW Group vehicles
To protect occupants and other road users, the new vehicle mod-
els meet stringent internal safety standards and comply with
statutory requirements. The latest findings from in-house re-
search into accidents and product monitoring, involvement in na-
tional and international research projects, and analyses of exter-
nal accident databases are fed into the development process.
The growing demands of international consumer protection or-
ganisations, such as the New Car Assessment Programmes
(NCAP) worldwide, constitute an important element and are also
taken into account. With this in mind, our security concepts are
designed to be broadly applicable and consider, among other
things, factors such as height, build and gender. In addition, all
BMW Group automobiles worldwide have been equipped with an
automatic emergency braking system since the roll-out of the
most recent generation of on-board electrical systems.
In particular, child protection requires specific criteria to be ap-
plied in vehicle design. This is how the Company ensures that its
vehicles are compatible with all commonly available types of
child car seats. In addition, the safety of children is considered
both in terms of vehicle occupants and as road users. To this end,
crash tests are conducted for different age groups. Our automatic
emergency braking system is designed with children in mind, es-
pecially in challenging driving situations. The implementation of
these safety criteria is monitored as part of the internal target and
reporting system.
In the reporting year, the BMW Group again scored highly in in-
dependent tests conducted by consumer organisations. Follow-
ing top ratings in Europe, the USA and Korea, the BMW 5 Series
has now also been awarded by the Chinese C-NCAP and C-IASI
programmes1. The new MINI Countryman and the BMW X2 were
both awarded five stars by Euro NCAP and named “Top Safety
Pick” by the Insurance Institute for Highway Safety (IIHS) in the
USA. The BMW X5 achieved a Top SafetyPick+.
Percentage of vehicle models2 rated by NCAP programmes
with an overall five star safety rating3
in %
2024
European New Car Assessment Programme (Euro NCAP)
85.0
China New Car Assessment Programme (C-NCAP)
100.0
U.S. National Highway Traffic Safety Administration’s (NHTSA)
New Car Assessment Programme (NCAP)
33.0
Korean New Car Assessment Programme (KNCAP)
100.0
In 2024, the Company performed safety- and compliance-re-
lated technical operations that affected approximately 12.2 mil-
lion vehicles3.
All of these operations were voluntary and carried out in close
coordination with the authorities. The BMW Group works accord-
ing to the principle of prevention. To avoid technical operations
of this type going forward, the BMW Group has also developed a
comprehensive programme that has been in place since
2023. The Company works continuously to further improve the
safety of its vehicles.
Safeguarding quality standards
The problem management process is another component of the
quality strategy. It comprises all the elements required to identify,
process and resolve technical problems in a sustainable manner,
all the way from development and production to use by the cus-
tomer.
The logging of complaints regarding safety-related defects fulfils
a legal requirement. This involves the use of defined sensors that
collect and evaluate data relevant to products in series produc-
tion. The problem management process ensures that irregulari-
ties are identified reliably, forwarded for processing and that the
solution is followed up. The BMW Group has set itself the goal to
address 100% of these complaints within one year.
This indicator has been published since the 2022 financial year
and is compiled on an annual basis. The reference period is
1 December of the previous year to 30 November of the report-
ing year. The target has not changed since the indicator was es-
tablished, and the target has been met every year. In the report-
ing year 2024, 100% of the safety and compliance-related
problems were passed on to the responsible departments for
resolution.
In addition, the problem management process is continually
monitored using other internal metrics, with any weak points be-
ing identified and optimised.
Raising awareness of safe driving
The BMW Group is committed to road safety and, in this context,
offers a range of driver training courses. The options range from
the standard BMW Safety Training course to the compact half-
day Safety Compact programme and a tailored course for people
with disabilities. Each of these offerings aims to improve driving
skills, boost self-confidence behind the wheel and, as a result,
increase the safety of all road users.
1 China Insurance Automotive Safety Index.
2 Vehicle models that were listed in the BMW Group portfolio at the end of the 2024 reporting year.
3 Additional disclosure, based on SASB ↗ SASB Index.
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Exclusion of problematic substances
All substances used by the BMW Group are in compliance with
national and European laws. In addition, compliance with statu-
tory prohibitions and limits on the use of chemical substances is
monitored. Substitutes are sought for hazardous substances
that are categorised as being of very high concern in accordance
with Articles 57 and 59 of the REACH Regulation, provided they
are used with a proportion exceeding 0.1% by mass in a mixture
in the production processes, while taking factors such as eco-
nomic and technical requirements into account. If such sub-
stances cannot be avoided, they are used under controlled con-
ditions and in strict compliance with hazardous substance regu-
lations.
To the extent possible, the BMW Group excludes the use of prob-
lematic substances right from the vehicle design stage and sets
out corresponding stipulations for its suppliers. Guidance is pro-
vided in the form of the ↗ Global Automotive Declarable Substance List
(GADSL).
Furthermore, the Company is committed to reducing exposure to
emissions inside the vehicle to a minimum. All BMW, MINI and
Rolls-Royce brand Automobiles are equipped as standard with
interior air filters for pollutants and particles. Since 2020, the
BMW Group has been using interior air filters equipped with nan-
ofibre technology that not only trap fine dust, but also certain mi-
crobial particles and allergens.
Given that vulnerable people react particularly sensitively, the
statutory requirements for potentially hazardous substances in-
clude children in particular. Therefore, complying with threshold
values also regularly comprises the protection of children’s
health.
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GOVERNANCE INFORMATION
189
Combating Corruption and Bribery
189
Preventing, detecting and combating corruption and bribery
189
Avoiding conflicts of interest in compliance investigations
190
Reporting on compliance investigations
190
Communicating internal regulations
190
Training on governance matters
190
Scope of training on anti-corruption
190
Training rate of high-risk functions in relation to anti-corruption
190
Scope of anti-corruption training for the Board of Management and Super-
visory Board
191
Political Involvement and Lobbying Activities
191
Supervision of lobbying activities
191
The BMW Group’s approach to representing its interests
191
BMW Group positions and lobbying activities
193
Political contributions
193
Positions in public administration
193
Transparency register entries
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Sustainability Statement
COMBATING CORRUPTION AND BRIBERY
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Having a clear selection and communication of core values and beliefs for employees (e. g. the BMW Group
Code of Conduct) and trainings in place avoids negative environmental and social behaviour and strengthens
the individual sense of responsibility of the employees, especially with regard to corruption prevention.
Positive
Impact
− BMW Group Compliance Manage-
ment System (CMS)
» Compliance Management System
(CMS)
− Rate of completion of the manda-
tory “Compliance Essentials” web-
based training course
− Internal compliance regulations
− Internal communications activities
and case-by-case consultation by
Compliance
− Regular monitoring, including re-
porting to management
Upstream material Own Operations material Downstream material
Preventing, detecting and combating corruption and bribery
The BMW Group’s corporate culture is based on values and fun-
damental beliefs, founded on trust, mutual respect and tolerance.
The Code of Conduct transposes the BMW Group’s corporate
values into essential guiding principles for all employees. This
boosts employees’ sense of individual responsibility. In this con-
text, they are also supported by a Compliance organisation and
a regulatory framework to ensure that the Company acts within
the law at all organisational levels. The CMS comprises
measures to combat corruption and bribery, thereby reinforcing
a culture of integrity and compliance. In particular, it helps to re-
duce sanction and liability risks, as well as risks arising from other
(non-)financial disadvantages such as reputational risks. Clear
assignment of roles and responsibilities is also essential.
The CMS applies to all affiliated companies in which the
BMW Group holds a majority interest of more than 50%, in par-
ticular fully consolidated affiliated companies of the BMW Group,
whereby BBA maintains its own CMS with the same level of ef-
fectiveness as the Group’s CMS. Non-controlling interests and
50:50 joint ventures are not part of the BMW Group’s compli-
ance organisation and are not covered by the CMS. These com-
panies are required to set up and implement their own adequate
and effective compliance programmes, by taking a risk-based
approach, and to report on these to the BMW Group. This also
applies to joint operation Spotlight Automotive Ltd. In exercising
the rights as a shareholder of non-controlling interests with stra-
tegic relevance, BMW AG seeks to ensure effective compliance
(ongoing development of a risk-adequate CMS and its proper im-
plementation). As a shareholder, BMW AG receives reports on
CMS-related topics and information as required. Further infor-
mation on the CMS can be found in the Compliance section.
» Compliance Management System (CMS), » Compliance as a corporate function
The central Group Compliance function sets out the basic struc-
ture of the CMS, including the anti-corruption compliance pro-
gramme. The key components of the programme include a spe-
cific and Company-wide risk analysis, instructions containing
specific guidance on how to act in situations where there is a risk
of corruption, training courses, communications and case-by-
case consultations. In addition, employees are provided with
support in day-to-day situations via IT systems. Regular moni-
toring is also carried out to ensure compliance with requirements.
The BMW Group has set up a notification system to handle que-
ries and notifications on compliance-related issues, including
corruption and bribery. For more information on the notification
system, please refer to the Compliance section. » Compliance and
notification systems
As part of the Detect function of central Group Compliance, com-
pliance investigations are conducted on an ad hoc or non-ad hoc
basis and where necessary, action measures are derived. Any
infringements are immediately remedied, with an emphasis on
reducing the risk of repeat offences as far as possible. Where in-
fringements can be traced to an individual, that person will be
appropriately sanctioned, in accordance with the processes de-
fined for this purpose. This applies to all areas covered by the
CMS, including combating corruption. For information on the
monitoring and control mechanisms of the CMS, see the Compli-
ance section. » CMS monitoring and controls
Avoiding conflicts of interest in compliance investigations
Compliance investigations are generally performed by the local
Compliance functions in consultation with central Group Compli-
ance, provided the issues are not of a Company-wide nature and
there are no indications of conflicts of interest on the part of the
local function. Compliance investigations with a company-wide
impact are performed by Group Compliance. Should any suspi-
cion arise in connection with the central Group Compliance func-
tion, Group Corporate Audit assumes responsibility for investi-
gating the matter. This means that the committee conducting the
investigation is kept separate from the line management in-
volved.
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Reporting on compliance investigations
The Board of Management, the Supervisory Board and the au-
ditor are informed annually of the number of notifications of com-
pliance infringements, the number of audits conducted and the
results of these audits within the scope of compliance reporting.
In addition, more detailed half-yearly reports are prepared on the
basis of materiality criteria.
Communicating internal regulations
New or amended principles and instructions are published on the
intranet and communicated directly to all managers, who are re-
quested to distribute the information within their respective areas
of responsibility. Recently published internal regulations have a
direct impact on the Prevent pillar of the CMS and, as a result,
increase the likelihood that employees will act within the law. In
addition, separate communication measures are implemented
within the Company when there are compliance-specific modifi-
cations to principles and instructions (including newsletters,
communication formats and events to raise awareness among
employees).
In its internal regulations on anti-corruption, the BMW Group
takes into account the standards established by the United Na-
tions Convention against Corruption (UNCAC).
Training on governance matters
The key issues of combating corruption and bribery, as well as
the compliance aspects related to lobbying, form part of the web-
based Compliance Essentials training course, which the defined
group of employees is required to complete every two years. The
training course also covers information on notification systems,
including points of contact for information providers and the
BMW Group SpeakUp Line.
Scope of training on anti-corruption
The 30-minute Compliance Basics online training course primar-
ily teaches the basics of corruption prevention using explanatory
case studies and test questions. Information on the prohibition of
corruption and bribery, including the prohibition of bribery of pub-
lic officials and the prohibition of bribery and corruptibility in busi-
ness dealings (active and passive), is presented using specific
examples.
Training rate of high-risk functions in relation to anti-
corruption
With regard to corruption and bribery, from the BMW Group’s
perspective, those employees who are involved in indirect activi-
ties are potentially particularly relevant from a risk perspective.
Indirect activities include activities that do not primarily serve the
manufacture of products. However, the group of people affected
also includes senior employees from the direct areas, such as
“Meister” (master craftsmen).
The BMW Group strives to maintain a training rate of at least
95% at all times. This target is particularly relevant for the Pre-
vent pillar of the CMS because it aims to raise awareness among
a large number of employees. The overarching goal in this con-
text is to combat corruption and bribery in accordance with ap-
plicable national and international standards (e.g. UN Conven-
tions). Only central Group Compliance was involved in setting the
target. Compliance helps employees to meet the target using in-
ternal communications activities. Training and communication
measures play a crucial role in preventing corruption. Further-
more, the training rate is regularly reported to management.
Managers are responsible for monitoring the completion of re-
quired training by their employees and are supported in this task
by an IT escalation process. The percentage of valid training cer-
tificates for functions involving risk at the reporting date 11 De-
cember 2024 stood at 97%.
Scope of anti-corruption training for the Board of
Management and Supervisory Board
The members of the Board of Management of BMW AG also
complete the web-based Compliance Essentials training course.
In the reporting year, the members of the Supervisory Board of
BMW AG received training in the form of a written document on
the subject of anti-corruption and bribery. The relevant content
of the training, including the question-and-answer format, was
also the subject of a presentation given to the members of the
Supervisory Board by the Chief Compliance Officer as part of rou-
tine reporting.
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POLITICAL INVOLVEMENT AND LOBBYING ACTIVITIES
Material impacts, risks and opportunities
Type
Stage of the
value chain
Policies
Targets
Specific actions
Participation in political decision-making in an extensive manner leads to reputational damage and negative
publicity.
Risk
− The BMW Group’s approach to rep-
resenting its interests
− Targets and effectiveness are not
measured because lobbying activi-
ties are dependent on external fac-
tors.
− Disclosure of the BMW Group’s po-
sitions and lobbying activities
− Compliance aspects related to lob-
bying as part of the required web-
based Compliance Essentials train-
ing course.
Upstream material Own Operations material Downstream material
Supervision of lobbying activities
The BMW Group’s lobbying activities are coordinated in commit-
tees. The documents are fully recorded and made available us-
ing the BMW Group’s internal committee management system.
If new regulatory requirements and legislative proposals are
communicated to the BMW Group via external networks (e.g. by
industry associations or ministries) they are initially assessed
and the relevant assumptions are prepared together with internal
departments. The assumptions and lobbying positions which
form part of the BMW Group’s involvement in discussions within
associations are presented and adopted by the relevant commit-
tees.
Internal requirements are also derived from the BMW Group’s
positions and must be implemented by the BMW Group’s busi-
ness entities.
The BMW Group’s approach to representing its interests
The BMW Group’s strategy is developed from an analysis of the
global megatrends that are crucial to the transformation of the
automotive industry. As a global company with a complex value
chain, the business activities of the BMW Group impinge on the
interests of a range of stakeholders. Against this backdrop, the
BMW Group maintains a continuous dialogue with its stakehold-
ers and factors their different perspectives into its decision-mak-
ing process. In doing so, the relevant regulatory framework is
taken into account. The BMW Group is also increasing the
transparency of its decision-making processes by communi-
cating its BMW Group Strategy and positions on political, regula-
tory and social issues. At the BMW Group, the Corporate and
Governmental Affairs department is responsible for understand-
ing the values and aims of the people around us, managing rela-
tionships and communicating with relevant stakeholders. The
governmental affairs structures within the BMW Group are an in-
tegral component of this department and are responsible for its
relationships with political stakeholders. Given that lobbying ac-
tivities are dependent on external factors, the BMW Group ap-
proach to the representation of its interests does not include the
measurement of targets and effectiveness. Relevant measures
include the disclosure of the BMW Group’s positions and lobby-
ing activities, as well as raising the awareness of employees via
the required web-based Compliance Essentials training course.
The purpose and content of lobbying activities are described in
the eight defined core segments. ↗ Training on governance matters,
↗ Training rate of high-risk functions in relation to anti-corruption
BMW Group positions and lobbying activities
Sector-specific advisory opinions from companies can exert a
constructive
influence
on
political
decisions
from
the
BMW Group’s perspective and contribute to sustainable and ef-
fective legislation. It is with this in mind that the BMW Group ac-
tively engages in discussions on key strategic topics such as cli-
mate change mitigation, the circular economy, reducing its CO2e
footprint as part of its efforts to meet the climate targets set out
in the Paris Agreement, and transparent supply chain manage-
ment. Involvement in political decision-making processes carries
with it the risk of negative media coverage and a resulting loss of
reputation. For this reason, the BMW Group engages in trans-
parent dialogue and provides comprehensive information on its
political positions on its website and in relevant transparency
registers. ↗ Transparency register entries, ↗ Advocacy
Lobbying activities are related to and influence the material risks,
opportunities and impacts. Examples of how the main impacts,
risks and opportunities interact with lobbying activities are pro-
vided in the descriptions of the core segments. ↗ List of material
Impacts, Risks and Opportunities
Drivetrain policy
The BMW Group is calling for a revision of the EU legislation on
fleet-wide emissions targets from 2035 onwards. The aim is to
include all available drive technologies as possible solutions. Be-
sides battery-powered electric vehicles, these include plug-in hy-
brids, fuel cell vehicles and vehicles with internal combustion en-
gines. This is to be viewed within the context of the identified risk
of increasing competition in the market for electrified vehicles.
The increased use of renewable fuels (electricity-based fuels and
advanced second- and third-generation biofuels) such as
HVO100 is an effective way to reduce carbon emissions from
existing and new vehicles with internal combustion engines. The
BMW Group puts forward these proposals to the government
ministries of the Federal Republic of Germany and at the
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Remuneration Report
Other Information
Sustainability Statement
European level. From the BMW Group’s perspective, switching to
emission-free mobility calls for a holistic framework. An approach
that is open to technology with a diverse range of low- and zero-
emission drive options will also ensure that the Company is stra-
tegically resilient. Focusing on a single technology, with its indi-
vidual limitations, creates geopolitical dependencies and could
lead to bottlenecks, for example, in critical raw materials, which
could delay the transition to electromobility.
Climate and energy policy
In the transport sector, a swift transition to electromobility in new
vehicles is an important prerequisite on the road to achieving cli-
mate neutrality. The BMW Group is also pursuing a clear course
of reducing CO2e emissions holistically and across the entire
value chain of its vehicles, and is committed to meeting the cli-
mate targets set out in the Paris Agreement. In this context, the
BMW Group is in dialogue with the German Bundestag and the
German government with the aim to reduce CO2e emissions from
the implementation of the Renewable Energy Directive III (RED
III) in Germany. The measures are intended to help reduce CO2e
in the energy sector (including electricity, hydrogen and combus-
tion fuels) and achieve an effective reduction in overall sector
emissions. To reduce the CO2e footprint of energy-intensive ma-
terials, setting national and multinational CO2e limits and corre-
sponding trading systems, for example, could serve as key in-
struments for achieving a long-term decarbonisation goal across
all industries.
Furthermore, the BMW Group is committed to reliable recording
of CO2e footprints based on real data and supports the ongoing
international scientific and political discussions on effective car-
bon accounting. The Catena-X automotive data space is devel-
oping standardised global calculation methods and exchange
formats for CO2e emissions. This is in keeping with the oppor-
tunity defined for the BMW Group to report comparable emis-
sions along the actual supply chain in order to better identify ar-
eas with potential for reduction and to work with suppliers to de-
fine targeted reduction measures.
Based on its strategic focus on the circular economy, the
BMW Group is committed to an efficient legal framework for the
circular economy. The goal is to ensure high-quality recycling of
end-of-life vehicles and the supply of suitable recycled materials
for use in new vehicles. In this context, the BMW Group is not
convinced of the merits of statutory requirements governing the
use of recycled material or inefficient dismantling regulations.
The circular economy needs to help boost competitiveness. For
this reason, the focus needs to be on innovating the automation
of recycling technologies. The BMW Group operates its own Re-
cycling and Dismantling centre (RDC) near Munich for this pur-
pose. Experience gained here in vehicle recycling is passed on
directly to the development team. In addition, a number of pro-
jects are under way to promote the use of recycled materials in
vehicles. The BMW Group puts forward these proposals to the
government ministries of the Federal Republic of Germany and
at the European level.
Urban mobility
The increase in urban population is not only causing a housing
shortage, but also traffic congestion. As a result, many cities and
municipalities have introduced individual regulations and, to an
increasing extent, bans as a means of controlling traffic.
The BMW Group's goal is to work with cities and local authorities
to develop and implement joint solutions that address the issue
of increasing traffic volumes and related emissions. For example,
the BMW Group has regularly piloted a number of projects with
its partner city Rotterdam that increase the electrified driving
range of plug-in vehicles, thereby reducing their CO2e emissions.
The BMW eDrive Zones project has now been rolled out in more
than 150 cities. There is a great deal of potential to be found in
partnerships between cities, mobility service providers and vehi-
cle manufacturers. In this context, the focus is on two key areas:
measures to boost electromobility, such as the installation and
expansion of charging infrastructure or the creation of eDrive
zones where plug-in hybrids automatically switch to electric
drive, and traffic management measures to maintain traffic flow.
With regard to the German Act on Electromobility Infrastructure
in Buildings (GEIG), the BMW Group is committed to a more am-
bitious transposition in Germany of the EU requirements on
equipping car parks with charging points. The availability of suf-
ficient charging infrastructure at home, work, when shopping and
around public facilities is the basis for ramping up electromobility.
Geopolitics, trade and industrial policy
The BMW Group is committed to cooperating with political stake-
holders at the global level to promote free trade and unrestricted
market access. This includes, among other things, dialogue with
associations, NGOs and suppliers.
In addition, the BMW Group maintains a dialogue with legislators
(e.g. governments, opposition parties, various parliamentary
groups) to fulfil its global responsibility. In this context, the
BMW Group is particularly committed to the reduction of tariffs
and non-tariff barriers to trade as a means of utilising the bene-
fits of international partnerships and interlinked value chains.
This provides the Company with financial opportunities and com-
petitive advantages through innovation, research and develop-
ment.
In the EU’s anti-subsidy proceedings against China, the
BMW Group is calling for an open and rules-based trading sys-
tem that ensures a level playing field for domestic and foreign
companies. With this in mind, the BMW Group maintains a dia-
logue with the European Commission, EU Member States, polit-
ical groups in the European Parliament and industry associa-
tions.
Digital policy
Digitalisation affects all areas of the mobility sector. We continu-
ously offer our customers new ways to experience digital services
and automated driving features. However, advances in digital
technology have implications for our products: not only do they
create more possibilities, but also challenges, such as in the area
of cyber security, due to the increased connectivity of vehicles.
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In this context, the establishment of uniform global standards
and a statutory framework (e.g. EU Data Act, China cross-border
data transfer) is a key priority. This helps to offset, among other
things, risk to the Company’s reputation in the event of incidents
affecting the security of consumers’ or end-users’ personal data.
The BMW Group continues to engage with relevant authorities in
the EU, the corresponding Directorate General and the European
Parliament, and China, in particular with the relevant administra-
tive authority CAC and the free trade zones Lin-gang and Daxing.
These standards should be flexible and agile enough not to im-
pair innovation and to fully exploit the advantages provided by
digital progress. In this context, compliance with the respective
vehicle registration policies and the relevant cyber security regu-
lations must be ensured at all times.
The BMW Group is also in discussions with the German Federal
Ministry of Transport and Digital Infrastructure (BMDV) regard-
ing the law on establishing a national data trustee. This concerns
access rights and the management of consent within a data trus-
tee model that would supplement the EU Data Act.
Human resources and social policy
The BMW Group offers its employees a secure and attractive
place to work as well as extensive personal development and
professional training opportunities. Among other things, this has
a positive impact on the skills and expertise of its workforce. At
the same time, we are working with political stakeholders to up-
date social and labour policy and adapt it to the way we work
today.
In a letter addressed to members of the German parliament and
the German government, the BMW Group has called for a funda-
mental overhaul of working time legislation to bring it into line
with EU laws. In specific terms, this would involve creating
greater flexibility in working hours by switching to a maximum
weekly limit and making adjustments to break times. A potential
regulation on recording working hours should take into account
current Company practice and utilise the existing scope for ma-
noeuvre.
Political contributions
The BMW Group made political contributions to the following re-
cipient groups in the reporting year:
—
Dialogue events: Sponsoring of political events for collabo-
ration and exchange purposes
—
Collaborations: Sponsoring with reciprocal business (for ad-
vertising purposes) or lectures by representatives of the
BMW Group
The following table summarises significant political contributions
made in the reporting year.
Significant political contributions by recipient group
2024
by recipient group
in €
All recipients
Dialog events /
events
Cooperations
Europe
344,966
158,966
186,000
thereof Germany
327,261
141,261
186,000
Americas
273,155
69,798
203,357
thereof USA
268,514
65,157
203,357
Asia
15,136
15,136
–
thereof China
–
–
–
Total
633,257
Any political contributions made by the BMW Foundation Herbert
Quandt (BFHQ) are not included in the figures stated above. Due
to its close ties to the BMW Group, BFHQ was also incorporated
into the key performance indicators. As a result, BFHQ did not
make any political contributions for the BMW Group in 2024. Any
political contributions made by the BFHQ are independent of the
BMW Group and are made solely in pursuit of the interests of the
BFHQ, and without consideration of any interests of the
BMW Group.
Positions in public administration
There were no changes to the Board of Management in the
2024 reporting year. As a result, no members were appointed to
the Board of Management who held a comparable position in a
public administration (including regulatory authorities) in the two
years prior to their appointment. In the 2024 financial year, a
member was appointed to the Supervisory Board as part of the
employee representative elections. This member has held a
comparable position in public administration since the 2023 fi-
nancial year.
Transparency register entries
The BMW Group is listed in the EU Transparency Register and in
the equivalent registers of the EU Member States listed below.
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Entries in the EU Transparency Register and in
equivalent registers of the Member States
Register name
Identification number in
the register
BMW AG
EU Transparency Register
7193977808-18
Lobby register for the
representation of interests vis-à-
vis the German Bundestag and
the Federal Government
R002370
Bavarian lobby register
DEBYLT007F
BMW Motoren
GmbH
Lobbying and interest
representation register
LIVR-01130
BMW Automotive
(Ireland) Ltd.
Register of Lobbying maintained
by the Standards in Public Office
Commission
1373
BMW France S.A. Register of Lobbying maintained
by HAUTE AUTORITÉ POUR LA
TRANSPARENCE DE LA VIE
PUBLIQUE (HATVP)
5HABRCXV, ZV92LP1H,
YVIKRQAH, PVXASO43,
UVPUF1GH, GVTU7903,
EVJFE0PH, LV1DGNI3,
BHOB62A3, 0VE7PMF3,
Y3GQAMLH, DHMZCMYV,
Y3KG6M5V, 0V2ARJJV,
LV1C6E0V, C34BL90V,
Q36SB5KV
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OTHER ESG INFORMATION
OTHER ENVIRONMENTAL INFORMATION
CO2e footprint1
in t CO2e
2024
2023
Base year:
2019
Deviation to
previous year in
%
2025
2030
2050
Annual % of
target/base
year
Total emissions (market-based)2
131,134,201
– mainly guided
–
–
mainly guided
–
–
Total emissions (location-based)
132,274,751
–
–
–
–
–
–
–
S C O P E 1 : D I R E C T G R E E N H O U S E G A S E M I S S I O N S
Total emissions2
672,542
– mainly guided
–
–
mainly guided
–
–
BMW Group locations2
572,972
–
mainly guided
–
–
mainly guided
–
–
Company vehicles2, 3
95,087
–
mainly guided
–
–
mainly guided
–
–
Company-owned airplanes2
4,482
–
mainly guided
–
–
mainly guided
–
–
Percentage of Scope 1 GHG emissions from regulated ETS (in %)
53.5
–
–
–
–
–
–
–
S C O P E 2 : I N D I R E C T G R E E N H O U S E G A S E M I S S I O N S
Total emissions (market-based)2
164,421
– mainly guided
–
–
mainly guided
–
–
Electricity/heating/cooling purchased by BMW Group locations (market-based)2, 4
150,508
–
mainly guided
–
–
mainly guided
–
–
Electricity purchased for company vehicles (BEV) (market-based)2, 3, 4
13,913
–
mainly guided
–
–
mainly guided
–
–
Entries in the EU Transparency Register
1,304,971
–
–
–
–
–
–
–
S C O P E 1 + S C O P E 2 ( M A R K E T - B A S E D ) : R E D U C T I O N T A R G E T S D E R I V A T I O N 5
Total emissions scope 1+2
836,963
–
–
non-reduction-targeted scopes
– 35,490
–
–
share of biogenic emissions
8,324
–
–
Reduction path targeted scopes
809,7976
–
1,182,000
–
–
635,000
–
4.2
1 For more information, see ↗ Glossary and Explanation of Key Figures.
2 The marked categories are to a significant extent included in the reduction target.
3 Emissions from company vehicles (Scope 1 and 2) are also included on a pro-rata basis under Employee commuting and Use of sold products [Use phase]. A distinction in the systems is currently not possible.
4 Emissions from company vehicles (Scope 2) are also included on a pro-rata basis under the electricity/heat/cooling purchased by BMW Group locations. A distinction in the systems is currently not possible.
5 The combined Scope 1 and 2 target includes all of the categories reported. At present, sites without operational control are not included in the target. The base year 2019 also includes emissions from contract manufacturing (”insourcing”). In the base year 2019 and the target year 2030, the biogenic share of
emissions of the category Company vehicles (Scope 1), as well as of the average electricity mix supplied to the BMW Group in the category electricity/heat/cooling purchased by BMW Group locations is included. Emissions under Scope 2 are included in the target using the market-based calculation.
6 Assurance level: reasonable assurance.
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CO2e footprint1
in t CO2e
2024
2023
Base year:
2019
Deviation to
previous year in
%
2025
2030
2050
Annual % of
target / base
year
S C O P E 3 : I N D I R E C T G R E E N H O U S E G A S E M I S S I O N S
Total emissions2
130,297,238
– mainly guided
–
–
mainly guided
–
–
Purchased goods and services2, 3
31,892,268
–
mainly guided
–
–
mainly guided
–
–
Capital goods
–
–
–
–
–
–
–
–
Fuel and energy-related Activities (not included in Scope 1 or Scope 2)
–
–
–
–
–
–
–
–
Upstream transportation and distribution [Logistics]2, 4
2,931,346
–
mainly guided
–
–
mainly guided
–
–
Waste generated in operations
–
–
–
–
–
–
–
–
Business travelling
96,775
–
–
–
–
–
–
–
Employee commuting [Employees' commuter traffic]5
182,833
–
–
–
–
–
–
–
Upstream leased assets
–
–
–
–
–
–
–
–
Downstream transportation
–
–
–
–
–
–
–
–
Processing of sold products
–
–
–
–
–
–
–
–
Use of sold products [Use phase]2, 5
93,652,616
–
mainly guided
–
–
mainly guided
–
–
End-of-life treatment of sold products [Disposal]3
1,541,400
–
–
–
–
–
–
–
Downstream leased assets
–
–
–
–
–
–
–
–
Franchises
–
–
–
–
–
–
–
–
Investments
–
–
–
–
–
–
–
–
S C O P E 3 : R E D U C T I O N T A R G E T S D E R I V A T I O N 6
Total emissions scope 3
130,297,238
–
–
non-reduction-targeted scopes
– 5,337,394
–
–
share of biogenic emissions
99,229
–
–
Reduction path targeted scopes
125,059,0737
–
148,900,000
–
–
108,000,000
–
2.5
1 For more information, see ↗ Glossary and Explanation of Key Figures.
2 The marked categories are to a significant extent included in the reduction target.
3 Energy consumption (lower calorific value) of the purchased goods and services category and the end-of-life treatment of sold products [disposal] category are determined based on life cycle assessments of representative vehicles of the product lines in accordance with ISO 14040/44: 120 TWh in the
purchased goods and services category and 1.01 TWh in the end-of-life treatment of sold products [disposal] category.
4 Includes the downstream transportation category in accordance with the Greenhouse Gas Protocol.
5 Emissions from company vehicles (Scope 1 and 2) are also included on a pro rata basis under Employee commuting and Use of sold products [Use phase]. A distinction in the systems is currently not possible.
6 At present, only the emissions from the automotive core segment are being targeted. The Scope 3 target includes the categories Purchased goods and services, Upstream transport and distribution (Logistics), and Use of sold products (Use phase). In the base year 2019 and the target year 2030, the biogenic
share of emissions is included in the figure for the Purchased goods and services category.
7 Assurance level: reasonable assurance.
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Scope 3 categories are assessed for both current reporting and
target-setting purposes in accordance with the guidelines of the
Greenhouse Gas Protocol. Besides the absolute volume and
share in total emissions, the most important criterion is the extent
to which they can be influenced directly. Based on this approach,
the categories “Purchased goods and services”, “Upstream
transport and distribution [Logistics]”, and “Use of sold products
[Use phase]” are both reported and factored into the target-set-
ting process. In the target Scope, we therefore achieve coverage
of more than 95% of all Scope 3 emissions. Additional reported
categories are excluded from the reduction target because the
volumes in question are relatively small (Business travelling and
Employee commuting) or because the BMW Group is limited in
terms of how much it can influence them directly (End-of-Life
treatment of sold products [Disposal]).
Biogenic emissions1
in t CO2
2024
Total biogenic emissions
4,624,896
Scope 1
42,959
Scope 2 (market-based)2
21,942
Scope 3
4,559,995
1 For additional information, see ↗ Glossary and Explanation of Key Figures.
2 The biogenic Scope 2 emissions (location-based) amount to 187,517 t CO2e.
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Materiality of the various Scope 3 categories
Scope 3 categories
Assessment
Reason for significance
Reporting 2024
Purchased goods and services
Significant
Significant share of Scope 3 emissions,
measurable and influenceable
Reporting
Capital goods
Not significant
Minor share of Scope 3 emissions
No reporting
Fuel and energy-related activities (not included in Scope 1 or Scope 2)
Not significant
Minor share of Scope 3 emissions
No reporting
Upstream transportation and distribution [Logistics]
Not significant
Minor share of Scope 3 emissions,
but can be directly influenced
Reporting
Waste generated in operations
Not significant
Minor share of Scope 3 emissions
No reporting
Business travelling
Not significant
Minor share of Scope 3 emissions,
but can be directly influenced
Reporting
Employee commuting [Employees' commuter traffic]
Not significant
Minor share of Scope 3 emissions,
but can be directly influenced
Reporting
Upstream leased assets
Not significant
Minor share of Scope 3 emissions
No stand-alone reporting, leased infrastructure is recognised within the emissions
reported under BMW Group locations (Scope 1) or Electricity/heating/cooling purchased
by BMW Group locations (Scope 2)
Downstream transportation
Not significant
Minor share of Scope 3 emissions,
but can be directly influenced
Subsumed under Upstream transportation and distribution [Logistics]
Processing of sold products
Not significant
Minor share of Scope 3 emissions
No reporting
Use of sold products [Use phase]
Significant
Significant share of Scope 3 emissions,
measurable and influenceable
Reporting
End-of-life treatment of sold products [Disposal]
Not significant
Minor share of Scope 3 emissions,
but can be directly influenced
Reporting
Downstream leased assets
Not significant
Minor share of Scope 3 emissions
No stand-alone reporting. Emissions from the use of vehicles for which BMW Group is a
lessor as part of its Financial Services business are allocated in full to Use of sold
products [Use phase]
Franchises
Not significant
Minor share of Scope 3 emissions,
but can be indirectly influenced
No stand-alone reporting; reporting planned from reporting year 2025 onwards
Investments
Not significant
Minor share of Scope 3 emissions
No reporting
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GLOSSARY AND EXPLANATION OF KEY FIGURES
Where the data compiled has been validated by a second external party other than the auditor, this is indicated separately. In all other respects, it can be assumed that the metrics have not been validated
by any other external body.
ENVIRONMENTAL INFORMATION
A
Absolute weight of products, technical and biological
materials
The metric comprises the total weight of the resource inflows to
the BMW Group for the production of automobiles in the report-
ing period. The resource inflows contain the sum of the total
weight of the vehicles produced, the supplies used in in-house
production and other related process materials, as well as reused
production residues, the freshwater required along with reused
or recycled water.
Data from BMW Group plants and in-house production are used
to determine the quantity of other related process materials, re-
used production residues and water (freshwater and reused/re-
cycled water).
The total weight of the vehicles produced is calculated on the ba-
sis of the average values, adjusted for the number of units, of
representative BMW Group automobiles. The average values are
derived from the average total material tonnage for each vehicle
group. The material tonnage is determined on the basis of real
IMDS (International Material Data System) data and extrapo-
lated to the vehicle fleet (BMW Group automobile production vol-
ume).
The collection of additional related process materials, which are
required for the manufacturing process but do not form part of
the final product, is done by recording the relevant production
waste generated during BMW Group’s automobile production.
This category comprises, among other things, metal cuttings,
plastic film, wood, paper and glass, as well as relevant process
materials that accrue during production. The relevant waste
categories are determined from weighted and systemically rec-
orded data for waste documentation. The auxiliaries and operat-
ing materials data are gathered directly in BMW Group plants in
Germany and Austria. An average is calculated based on these
data and the BMW Group automobiles produced, and extrapo-
lated to the other plants with product-relevant production (auto-
mobile and component production) worldwide.
The water share of the metric comprises total consumption of
potable water, groundwater, surface water and rainwater, as well
as reused or recycled water. This does not include water that is
returned to the environment, reused on site or reused off site dur-
ing the reporting period.
The data on production waste and water, as well as the data for
the extrapolation of auxiliaries and operating materials reported
in the metric is derived from production sites that are certified ac-
cording to the Eco Management and Audit Scheme (EMAS), ISO
14001 and partly ISO 50001.
The unit of the metric is products and material tonnes [t]. The
metric is composed of the resource inflows stated above and re-
ported as a total mass in tonnes [t].
B
Beyond Value Chain Mitigation
Beyond Value Chain Mitigation (BVCM) refers to all measures
that a company takes in addition to its own value chain’s Science
Based Targets (SBTs) to reduce emissions outside its value
chain. This includes activities that avoid or reduce greenhouse
gas emissions as well as those that remove greenhouse gases
from the atmosphere and store them. The BMW Group supports
these initiatives voluntarily without taking them into account in
the calculation of the BMW Group’s CO2e reduction targets.
BVCM is strongly recommended by the Science Based Targets
initiative (SBTi) to validated companies in addition to CO2e re-
duction in their own value chain. One example of BVCM is the
purchasing of CO2e-sink certificates on the voluntary carbon
market. Criteria such as additionality, permanence, and certifica-
tion by independent institutions following international standards
(e.g. CSI/C-Sink) contribute to the quality of the certificates em-
ployed, and thus also to the impact of our commitment outside
our internal value chain.
In addition, it is important to the BMW Group that the projects
benefit society in accordance with the United Nations Sustaina-
ble Development Goals (UN SDGs). These include, for example,
initiatives and projects that result in generating income for the
relevant target groups from new jobs created by the projects or
that revitalise depleted soils.
Biochar
Biochar is a carbon-rich material obtained from the pyrolysis of
(waste) biomass in the absence of oxygen. The process stabi-
lizes the carbon over the long term and produces a versatile
product. Biochar is added to soil to improve its quality and for
water retention. It is also used to reduce erosion. Its porous struc-
ture provides a habitat for beneficial microorganisms, improving
soil health and contributing to carbon removal and sustainable
agriculture efforts.
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Biogenic CO2 emissions (Scope 1 to Scope 3)
Renewable fuels such as biogas, biomethane or wood are con-
sidered as carbon neutral. In the case of wood, for example, the
carbon released during combustion is previously absorbed from
the surrounding air and bound in lignin. Biogenic CO2 is therefore
part of a continuous cycle and does not contribute to any net in-
crease in greenhouse gas emissions. It is only the equivalents
released during combustion (e.g. N2O, soot, etc.) that contribute
to an increase.
The unit of the metrics is tonnes of CO2 [t CO2]. The BMW Group
reports biogenic emissions separately from CO2e emissions in a
stand-alone balance sheet.
Bundled instruments
For the BMW Group, bundling means the purchasing of Energy
Attribute Certificates (e.g. guarantees of origin) and physical
electricity from the same power plant. This includes, among other
things, so-called power purchase agreements (PPAs).
C
Cancellation of CO2e certificates outside the undertaking’s
value chain in the reporting year by removal type, per type
of recognised quality standard, as well as contractually
planned cancellations in the future
The metrics represent the amount of t CO2e permanently re-
moved from the atmosphere and stored in the reporting year,
which are achieved by biochar projects, the operation of which is
co-financed by the BMW Group to the amount of purchased
credits. These projects are operated by external partners (“Be-
yond Value Chain” – outside the BMW Group value chain). As
proof serve the CO2e certificates in t CO2e generated by the
BMW Group financing in the projects respectively their cancella-
tion statements. The quantity of CO2e certificates generated by
the projects is calculated and certified using the assumptions and
methodologies of the independent CSI C-Sink CO2e standard,
and confirmed annually by means of re-certifications by inde-
pendent third-party auditors. In this context, only the proportion
of the highly permanent PAC (Persistent Aromatic Carbon) frac-
tion of the financed biochar yields is counted.
The share of CO2e-negative emissions generated, which are re-
moved and stored within the EU, is also shown, along with the
share of projects that include corresponding adjustments (cur-
rently not relevant for the biochar projects financed because they
are not included in NDCs [Nationally Determined Contributions]).
Furthermore, the currently planned quantity of cancellation
statements of CO2e sink project results will be reported until
2026.
CO2e certificate
A transferable or tradeable instrument that represents the reduc-
tion of one tonne of CO2e emissions or the removal of one tonne
of CO2e from the atmosphere, which is issued and verified in ac-
cordance with recognised quality standards.
CO2 equivalents/CO2e
CO2e represents an order of magnitude for standardising the cli-
mate impact of different greenhouse gases (GHG). This is nec-
essary because the individual gases (for example, methane or
nitrous oxide [laughing gas]) do not all contribute equally to the
greenhouse effect. In addition, the expert committee at the
United Nations (Intergovernmental Panel on Climate Change,
IPCC) has defined “global warming potential” (GWP). This is an
index used to express warming impact compared with CO2 so
that all GHGs are aggregated. For example, over a period of 100
years, methane has 28 times the impact of CO2, while for nitrous
oxide the impact is 265 times higher. CO2e is measured in terms
of weight (tonnes).
CO2e emissions from BMW Group locations (Scope 1 and 2)
per vehicle produced (automotive)
This metric is derived from the direct and indirect CO2e emissions
of BMW Group plants relating to the number of automobiles pro-
duced in the reporting year. The CO2e emissions result from en-
ergy consumption in the BMW Group plants (excluding partner
plants, contract manufacturing and Spotlight Automotive Ltd.),
as well as non-manufacturing sites over which the BMW Group
has operational control, excluding supplies to third parties. Elec-
tricity from on-site renewable generation, Power Purchase
Agreements for electricity from renewable* sources and Energy
Attribute Certificates (e.g. guarantees of origin) are all taken into
account. Emissions are divided by the total number of vehicles
produced (BMW Group production sites, excluding motorcycles,
contract manufacturing and Spotlight Automotive Ltd.). Solvent
emissions (VOC) are not considered in the calculation.
The emissions data shown in the metric is derived from produc-
tion sites that are certified according to the Eco Management and
Audit Scheme (EMAS), ISO 14001 and partly ISO 50001. Mainly
the emissions factors of the VDA (most current valid version) are
used to calculate CO2e emissions. These are based on the latest
GWP values in accordance with IPCC AR6. For district heating
and cooling, local factors are occasionally applied instead of
country-specific factors to account for regional differences. The
Scope 2 emissions are considered with the market-based
method.
The unit of the metric is tonnes of CO2 equivalent [t CO2e] per
vehicle produced.
* See ↗ Glossary for a definition of electricity from renewable sources.
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CO2e emissions from the supply chain including transport
logistics (Scope 3 upstream) per vehicle produced
(automotive)
The total Scope 3 emissions of the automobile fleet determined
in ↗ Scope 3: CO2e emissions of purchased goods and services are added to
the upstream transport emissions of the automobile fleet from
↗ Scope 3: CO2e emissions from upstream transportation and distribution
[Logistics] and divided by the number of automobiles produced in
the reporting year. Motorcycles and aftersales products, nor their
related transport logistics (e.g. spare parts or merchandise
items), nor products purchased by the BMW Group that are not
components or raw materials for BMW Group automobile pro-
duction (e.g. parts for motorsport vehicles) are not included.
The unit of the metric is tonnes of CO2 equivalent [t CO2e] per
vehicle produced.
CO2 emissions of the new vehicle fleet in China (Scope 3
downstream, tank-to-wheel)
The average carbon emissions of a manufacturer’s fleet (use
phase) are calculated on the basis of the volume-weighted aver-
age of CO2 emissions across all new vehicles produced in China
and imported into China during the reporting period. The basis
for this are the individual vehicle-specific CO2 emissions in the
calendar year, which are determined using the WLTC type ap-
proval procedure (Worldwide Harmonised Test Cycle under
China-specific test conditions). The carbon emissions metric for
the BMW Group fleet calculated internally, includes legally per-
mitted offsetting of off-cycle technology, NEV multiplier and a
phase-in.
On the Chinese market, manufacturers receive positive credits for
an overachievement of regulatory CAFC (Corporate Average Fuel
Consumption) fleet limits. Failure to remain below the regulatory
limits results in debits. In addition, manufacturers receive positive
credits for meeting or an overachievement of the ZEV quota
specifications (Zero Emissions Vehicle quota). At the end of a cal-
endar year, a positive CAFC/ZEV credit balance must be
achieved in order to meet regulatory requirements. As
CAFC/ZEV credits are valid for three years on the Chinese mar-
ket, a short-term failure to meet fleet limit targets in one year can
be compensated by an overachievement in a previous year.
Moreover, it is possible to purchase credits from other manufac-
turers.
The metric is calculated based on GB 27999-2019 (Fuel Con-
sumption Evaluation Methods and Targets for Passenger Cars).
This metric is a preliminary internal calculation.
The unit of the metric is grams of CO2 [g CO2e] per kilometre
driven (after conversion from L/100km to CO2 g/km).
CO2 emissions of the new vehicle fleet in the EU (Scope 3
downstream, tank-to-wheel)
The average CO2 emissions of the BMW Group fleet (use phase)
are calculated on the basis of the volume-weighted average of
CO2 emissions across all vehicles newly registered during the re-
porting period. The calculation is based on all newly registered
vehicles of a given manufacturer in the EU, including Norway and
Iceland, during the calendar year, and the individual vehicle-spe-
cific CO2 emissions determined using the WLTP type test proce-
dure.
Average CO2 fleet emissions within the EU (including Norway
and Iceland) are required to be reported in accordance with the
new Worldwide Harmonized Light Vehicles Test Procedure
(WLTP) type test cycle as of 2021. This metric has been used by
the EU Commission as the basis for calculating CO2 fleet emis-
sions since 2021.
The CO2 emissions metric for the BMW Group fleet calculated in-
ternally, includes legally permitted offsetting of eco-innovations
of minor significance.
Disclosure in accordance with the provisions of EU Directive
2019/631, Article 7, in particular (1).
The metric is a preliminary internal calculation with a potential
variation of +/– 0.5 g CO2/km, as official registration figures from
the authorities are not available for all EU member states. Fig-
ures officially published by the EU Commission are not expected
to be available until November of the following year. Prior-year
figures have not been adjusted retrospectively.
The unit of the metric is grams of CO2 [g CO2] per kilometre
driven.
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CO2 emissions of the new vehicle fleet in the US (Scope 3
downstream, tank-to-wheel)
The average carbon emissions of a manufacturer’s fleet (use
phase) are calculated on the basis of the volume-weighted aver-
age of carbon emissions across all new vehicles produced in the
US model year period. The basis for this is the number of vehicles
produced and delivered for sale by the manufacturer in the US
market and the individual vehicle-specific carbon emissions,
which are determined according to the US combined type ap-
proval procedure. The CO2 emissions metric for the BMW Group
fleet calculated internally includes the legally permitted offsetting
of off-cycle technology, Advanced Technology Credits (BEV,
PHEV), and efficient air-conditioning systems.
In the US market, manufacturers receive positive credits for an
overachievement of regulatory GHG fleet limits. Failure to remain
below the regulatory limits results in debits. At the end of a model
year, a positive GHG credit balance must be achieved in order to
meet regulatory requirements. As GHG credits are valid for five
years on the US market, a short-term failure to meet fleet limit
targets in one year can be compensated by an overachievement
in a previous year. Moreover, it is possible to purchase credits
from other manufacturers.
The metric is calculated according to the EPA-420-F-21-060
(Environmental Protection Agency: Revised 2023 and Later
Model Year Light-Duty Vehicle Greenhouse Gas Emissions
Standards).
This metric is a preliminary internal calculation.
The unit of the metric is grams of CO2 [g CO2] per kilometre driven
(after conversion from miles to kilometres).
CO2e emissions of the new vehicle fleet worldwide (Scope 3
downstream, well-to-wheel)
This metric documents the progress made by the BMW Group in
its strategic objective of reducing CO2e emissions during the use
phase including upstream emissions (drivetrain energy supply)
by an average rate of at least 50% per kilometre driven by 2030
(base year 2019). For the purpose of calculating this metric, vol-
ume-weighted average fleet CO2e emissions are calculated for
the EU core markets (27 EU countries including Norway, Iceland,
Switzerland and UK) (driving cycle: Worldwide Harmonized Light
Vehicles Test Procedure; (WLTP) basis: vehicle registrations),
USA (driving cycle: United States Combined; basis: production
volume) and China (driving cycle: Worldwide Harmonized Test
Cycle (WLTC), subject to China-specific framework conditions for
testing; basis: import or local production volumes), in each case
prior to deduction of legally permitted credit factors (e.g. super-
credits and eco-innovations) and standardised in line with the
WLTP (European driving cycle). These core markets account for
more than 80% of the BMW Group’s sales. The calculated met-
rics are increased by 10% to account for possible discrepancies
between cycle values and real emissions, as required by the
SBTi. In line with the well-to-wheel approach, the upstream
emissions of the energy sources are included in the metric. The
corresponding emissions factors provided by Sphera are used to
calculate the upstream chain of fuel production (database ver-
sion 2024.2, IPCC AR6, kg CO2e/kg fuel). To reflect the CO2e
emissions resulting from the production of electricity in the re-
spective core markets, the BMW Group uses the energy report
published by the International Energy Agency (IEA; reference ba-
sis: previous year, g CO2/kWh) as a basis.
This covers the entire impact chain behind vehicle motion, i.e.
from the extraction and provision of fuels to their conversion into
drivetrain energy. This approach also includes the environmental
impacts associated with the generation of fuel and electricity.
The data collection method is based on the requirements of the
Greenhouse Gas Protocol (Scope 3 Calculation Guidance Ver-
sion 1.0, 2013).
The unit of the metric is grams of CO2 equivalent [g CO2e] per
kilometre driven.
CO2e reduction in the supply chain (Scope 3 upstream)
The metric expresses the absolute quantity of CO2e emissions
that were saved during the reporting year as a result of measures
taken to reduce CO2e emissions in the supply chain of the auto-
mobiles produced.
The saved CO2e emissions reductions are derived from the sum
of the measures taken to reduce CO2e in the supply chain that
were agreed upon with suppliers and demonstrably executed
during the reporting year, for example, by using electricity from
renewable sources and secondary materials. Agreements with
suppliers of raw materials for aluminium and precious metals, as
well as suppliers of high-voltage batteries, led to substantial re-
ductions.
The calculation is based on the same principles, methods and
parameters applied in ↗ Scope 3: CO2e emissions from purchased goods
and services.
In the first step, the CO2e emissions generated by these compo-
nents are calculated using the “LCA for Experts” database (sec-
ondary database for life cycle analysis (LCA) provided by Sphera)
without taking measures to reduce CO2e into account (secondary
data). In the second step, the calculation of CO2e emissions is
repeated including measures that have been directly agreed with
suppliers. The difference between the two calculations yields the
CO2e emissions saved.
This metric is calculated on the basis of all goods ordered for the
BMW Group and partner plants for which measures have been
agreed with suppliers. To be eligible for recognition, it must also
be possible to map the measures methodically in the calculation
models used in the calculation of metrics. In 2024, the categories
are: use of electricity from renewable sources in manufacturing
and the extraction of raw materials, as well as the use of second-
ary materials.
An external service provider commissioned by the BMW Group
conducts the verification of measures at affected suppliers and
their subcontractors at the impacted manufacturing sites. A de-
fined method is used to ensure that the contractually agreed
measures to reduce CO2e emissions are implemented unambig-
uously and without duplication in the reporting year. There are
some limitations regarding the clear and non-repetitive alloca-
tion of material flows with secondary raw materials. Due to the
lack of regulatory provisions, there is currently neither a require-
ment for the recording and documentation of material flows for
secondary materials across the supply chain (for example on
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delivery notes), nor is there a government-operated/regulatory
registry similar to that for Energy Attributes Certificates (e.g.
guarantees of origin) that facilitates the distinct allocation of sec-
ondary materials to specific customers without duplication.
Therefore, the secondary material quota is confirmed using sys-
tem extracts from the relevant suppliers’ Enterprise Resource
Planning systems, along with details and evidence of secondary
material procurement through mass balances. Furthermore,
written confirmation is obtained from suppliers and upstream
suppliers in the value chain to clearly attribute secondary mate-
rials to BMW Group products, preventing any possibility of dou-
ble-counting with other customers.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
D
Durability (expected product lifetime)
This non-financial metric is defined as the average expected ser-
vice life of vehicles, expressed as the average age of a vehicle.
The age of the vehicle is determined on the basis of the data pro-
vided by our end-of-life vehicle take-back points in the German
market for BMW Group vehicles taken back, excluding motorcy-
cles.
The vehicles recorded for the metric are those that have reached
the end of their useful life due to their age and irreparable condi-
tion, or that have been taken back because of irreparable dam-
age resulting from an accident.
The date of first registration, the time of return and the number
of vehicles taken back in a reporting year are used to calculate
the average vehicle age. The calculated age of all vehicles (dif-
ference between return and first registration date) is added up
and divided by the total number of vehicles taken back. The data
is based on information provided by partners in the end-of-life
take-back network for BMW Group vehicles in Germany. The
data originate from BMW Group take-back partners, represent-
ing around 10% of all dismantling companies licensed in Ger-
many. This is primary data. The partners provide the data once
a year. The metric is hence collected once every calendar year
and relates to the year prior to the reporting year.
Furthermore, the industry average vehicle age in Germany is
stated based on data supplied by the German Federal Environ-
ment Agency (Umweltbundesamt) (data as per 2021).
The unit of the metric is age indicated in years.
E
Energy consumption and mix
The metric results from the energy consumption generated by
BMW Group plants, in vehicle production, motorcycle and com-
ponent production as well as other BMW Group non-manufac-
turing sites (e.g. research centres, sales centres, office buildings).
Partner plants and contract manufacturing are not included be-
cause they are not consolidated financially. Starting in 2024, the
energy consumption of third parties on BMW production sites will
also be measured. This includes the energy consumed by third
parties on the site, provided production equipment is not owned
by the BMW Group, the employees work for third parties and the
equipment is either in a separate building or in a clearly sepa-
rated area within a building. This also includes energy consumed
by third parties on the site while construction work is being com-
pleted for future production up to the point when risk is trans-
ferred to the BMW Group.
The metric shows the energy consumption per energy source for
the entire BMW Group, including the supply of third parties at
BMW Group locations. Total energy consumption consists of the
fuel consumption from natural gas and petroleum products, as
well as the consumption of purchased or acquired electricity,
heat, steam or cooling derived from fossil sources. In addition,
renewable fuels, including wood fuel, landfill gas, biomethane
and the consumption of purchased heat, steam and cooling from
renewable sources, plus electricity from renewable sources, are
included. The electricity from renewable sources is generated by
the company itself via photovoltaic installations, or sourced from
power purchase agreements (PPA) and Energy Attributes Certif-
icates (e.g. guarantees of origin). The BMW Group generally
calculates the share of electricity from renewable sources con-
servatively, i.e. shares of renewable power generation in the
electricity mix are not used for the calculation. Electricity from co-
generation plants is counted as natural gas consumption.
Some of the electricity in the energy mix supplied to the
BMW Group may be sourced from nuclear power plants. From
the 2024 reporting year onwards, the corresponding percent-
ages will be derived from the statistical data for each country.
These are provided worldwide by the Association of the Automo-
tive Industry (VDA). The BMW Group uses the currently valid ver-
sion.
The metric also includes the non-manufacturing sites over which
the BMW Group has exclusive financial control. Energy con-
sumption for the sites is extrapolated based on the gross floor
area (GFA) and the type of use. The extrapolation is based on an
evaluation of the non-manufacturing sites for which primary data
are recorded. The extrapolated consumption metrics are then
added to the consumption of purchased electricity, heat, steam
or cooling from fossil sources. All other sites are recorded on the
basis of meter data or invoice values.
The data from production sites included in the metric is certified
by the Eco Management and Audit Scheme (EMAS), ISO 14001
and partly ISO 50001. Some of the non-manufacturing sites in-
cluded in the metric are certified.
All energy values stated in the report are based on the lower cal-
orific value. The BMW Group uses the currently valid version of
the conversion factors issued by the German Federal Office for
Economic Affairs and Export Control (BAFA).
The unit of the metric is megawatt hours (MWh).
Energy consumption per vehicle produced (automotive)
This metric is calculated based on the energy consumed by the
BMW Group in the production of its automobiles, including com-
ponent manufacturing (excluding partner plants, contract manu-
facturing and Spotlight Automotive Ltd.), in relation to the num-
ber of vehicles produced (excluding motorcycles, contract manu-
facturing and Spotlight Automotive Ltd.) in the reporting year.
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The energy data shown in the metric is derived from production
sites that are certified according to the Eco Management and Au-
dit Scheme (EMAS), ISO 14001 and partly ISO 50001.
The energy values shown in the metric are based on the higher
calorific value.
The unit of the metric is megawatt hours (MWh) per vehicle pro-
duced.
Energy intensity associated with activities in high climate
impact sectors
The BMW Group operates in NACE sectors C29.10 and C30.91.
This includes the manufacture of motor vehicles and their en-
gines, as well as the manufacture of motorcycles. As a vehicle
manufacturer and provider of leasing services, our business ac-
tivities therefore lie exclusively in climate-intensive sectors. In
terms of the energy intensity metric, the total ↗ Energy consumption
is included in the metric. The denominator is based on
BMW Group net revenues ↗ note [7]. These net revenues are ad-
justed by an item related to the Financial Services segment’s
third-party business. Since the energy consumption associated
with the production of vehicles sold under other brands is not in-
cluded in the numerator of this metric, related revenues are de-
ducted from the denominator.
The unit of the metric is megawatt hours per euro [MWh/€].
EU Taxonomy – capital expenditure (CapEx)
Capital expenditure is calculated on the basis of IAS 16.73(e)(i)
and (iii) for property, plant and equipment, IAS 38.118(e)(i) for
intangible assets and IFRS 16.53(h) for leases. In accordance
with the definition of capital expenditure provided in Annex I of
the Commission Delegated Regulation (EU) 2021/2178 and
taking into account the adjustments made by Delegated Regula-
tion (EU) 2023/2486, the KPI figure used for EU Taxonomy pur-
poses comprises additions to intangible assets, in particular cap-
italised development costs, additions to property, plant and
equipment as well as right-of-use assets in accordance with
IFRS 16, and leased-out products. Capital expenditure relating
to the sale of parts to external third parties or the delivery of parts
to cooperation partners are not taken into account.
EU Taxonomy – operating expenditure (OpEx)
Operational expenditure only comprises non-capitalised devel-
opment costs, maintenance and refurbishment costs for build-
ings, repairs to property, plant and equipment, relevant IT costs
in the Financial Services segment, non-capitalised expenses re-
lating to short-term lease contracts, expenditure for low value as-
sets, and purely variable remuneration. The KPI figure calculated
for Taxonomy purposes is not used by the BMW Group for finan-
cial reporting purposes.
EU Taxonomy – revenues
Revenues are calculated in accordance with Article 2(5) of Di-
rective 2013/34/EU. Revenues comprise the income and earn-
ings reported in accordance with IAS 1.82(a). Revenues relating
to the sale of parts and components (e. g. after-sales business
excluding the provision of repair services) and the supply of pro-
duction components to third parties, insurance premiums, and
interest income on deposit-taking and credit business and from
the end-of-lease business with motorcycles as third-party
brands were not included, as these economic activities are not
classified as Taxonomy-eligible.
G
Greenhouse gas intensity (market- and location-based)
The greenhouse gas intensity is calculated based on the total
greenhouse gas emissions of the BMW Group in tonnes of CO2e
↗ Scope 1 to Scope 3: CO2e emissions (total) (market- and location-
based). The denominator is based on BMW Group net revenues
↗ note [7]. These net revenues are adjusted by an item related to
the Financial Services segment's third-party business. Since the
emissions associated with the production of vehicles sold under
other brands are not included in the numerator of this metric, re-
lated revenues are deducted from the denominator.
The unit of the metric is CO2 equivalent per euro [CO2/€].
I
Internal CO2 price
The BMW Group calculates a CO2 price as a shadow price, which
is applied by the Research and Development department for
evaluation purposes in connection with decisions on vehicle pro-
jects (Scope 3 downstream, Category 11 – use phase in accord-
ance with the Greenhouse Gas Protocol). The CO2 price is based
on the carbon emissions limit set by the EU fleet regulations.
The EU fleet regulations set a value in euros per g of CO2 emitted
over the target for each unit sold. Multiplying this by the average
mileage of 200,000 km, as used in the life cycle analysis in ac-
cordance with the assumptions of the Association of the Auto-
motive Industry (VDA), yields the internal CO2 price for the
BMW Group.
A regular review (at least once a year) is carried out with regard
to the revision of the European fleet regulations or, when needed,
depending on potential amendments to the underlying regula-
tory system, by the Group Controlling and Emissions and Sus-
tainability Strategy units.
The unit of the metric is euro per tonne CO2 [€/t CO2].
L
Location-based method
A method to quantify Scope 2 CO2e emissions based on average
energy generation emissions factors for defined geographic lo-
cations, including local, subnational, or national boundaries
(Greenhouse Gas Protocol, Scope 2 Emissions Guidance, Glos-
sary, 2015).
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M
Market-based method
A method to quantify the Scope 2 CO2e emissions based on CO2e
emissions emitted by the generators from which the reporter
contractually purchases electricity ↗ bundled with contractual in-
struments, or contractual instruments ↗ unbundled (Greenhouse
Gas Protocol, Scope 2 Emissions Guidance, Glossary, 2015).
Material
Material is a collective term for substances and mixtures of sub-
stances that are intended for the manufacture of products. This
can include both ↗ raw materials and more highly processed sub-
stances and mixtures of substances. A differentiation is made
between ↗ primary and ↗ secondary materials.
N
Net Zero
Reduction of Scope 1, 2 and 3 emissions (based on the science-
based principles [SBTi]) to a residual level that corresponds with
achieving Net Zero emissions at global or sectoral level in recog-
nised 1.5°C scenarios or sectoral pathways. This means a re-
duction in CO2e emissions in the value chain of at least 90% from
the base year, while simultaneously neutralising a maximum of
10% of the (residual) emissions through the use of permanent
CO2e sinks by the net zero target date and beyond.
Number and area of sites in or near protected areas or key
biodiversity areas
Number and area of sites owned, leased, or managed by the
BMW Group that are located in or near protected areas (PA) or
key biodiversity areas (KBA) and on which the business activities
of the BMW Group have a material negative impact.
The metric is compiled by essentially performing two analytical
steps:
—
Identifying BMW Group sites that are located in or near pro-
tected areas or key biodiversity areas
—
Assessment of the identified sites in terms of negative im-
pacts on biodiversity-sensitive areas
The proximity of BMW Group sites to protected areas is deter-
mined using the platform Integrated Biodiversity Assessment
Tool (IBAT). IBAT was developed as a standard by the UN Envi-
ronment World Conservation Monitoring Centre and draws on
the three most important global biodiversity datasets: the World
Database on Protected Areas (WDPA), Key Biodiversity Areas
and the Red List of Threatened Species by the International Un-
ion for Conservation of Nature (IUCN).
In the analysis, a distance of 1 km to protected areas is used as
a reference. This distance reference makes it possible to assess
local environmental impacts on neighbouring protected areas,
such as direct exploitation of natural resources, local pollution
from air pollutants, noise or input into the soil, as well as loss and
fragmentation of habitats. Within this radius, localised adverse
effects on the environment can be recorded and assessed in a
plausible manner.
For all sites identified by the IBAT tool analysis as being near a
protected area or key biodiversity area, the second step is to
identify and assess the potential impacts of the BMW Group’s
sites on biodiversity-sensitive areas. To this end, the potential
impacts on protected areas are initially determined using the EN-
CORE (Exploring Natural Capital Opportunities, Risks and Expo-
sure) methodology developed by Global Canopy, UNEP FI
(United Nations Environment Programme – Finance Initiative)
and UNEP-WCMC (United Nations Environment Programme –
Word Conservation Monitoring Centre). A detailed analysis is car-
ried out for all identified sites that could have a significant poten-
tial impact. These analyses are conducted manually by experts
and take into account both the characteristics of the affected pro-
tected areas and the business activities at the sites under inves-
tigation (e.g. differentiating between production, development,
logistics or office sites).
Limitation to this approach is the assumption of regular opera-
tion in the respective business activity. Disasters or other unfore-
seeable and irregular events are not taken into account in the as-
sessment.
As a result, the metric shows the BMW Group sites that are lo-
cated in or near biodiversity-sensitive areas, insofar as a material
negative impact on this biodiversity is identified.
The units of the two sub-elements of the metric are number (of
sites) and hectares (total area of the sites).
Number of suppliers participating in CDP
CDP (formerly known as the Carbon Disclosure Project) is a non-
governmental organisation that runs a global disclosure system
to encourage companies, investors, cities, states and regions to
disclose their (harmful) environmental impact. CDP collects data
from participating organisations once a year using modular
questionnaires and evaluates them in a rating format. The BMW
Group encourages its suppliers to participate in the CDP rating,
inviting in particular its top-selling direct suppliers of production-
related materials, as well as well-known logistics service provid-
ers and suppliers of non-production-related materials to partici-
pate each year. The focus is on suppliers that generate more
than €30 million in revenues with the BMW Group. The
BMW Group uses the rating to derive measures for supplier de-
velopment and qualification. The metric comprises the number
of direct suppliers to the BMW Group that submitted assessable
responses after being invited by the BMW Group to do so via the
CDP platform.
The metric does not include any information on the supply chain
of the Chinese joint operation Spotlight Automotive Ltd. as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Number of suppliers with verified measures
This metric comprises all suppliers whose CO2e emissions-re-
ducing measures were reviewed and positively verified during
the reporting year. For corporations, all production sites of a sup-
plier are summarised and not counted individually. An external
service provider commissioned by the BMW Group is responsible
for reviewing the implementation of the agreed measures at the
suppliers’ production sites. A defined method is used to check
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that the contractually agreed measures to reduce CO2e emis-
sions are implemented clearly and without duplication in the re-
porting year. The successfully verified emissions-reducing
measures form the basis for calculation of the metric ↗ CO2e
reduction in the supply chain (Scope 3 upstream).
The metric includes no information on the supply chain of Spot-
light Automotive Ltd. as the BMW Group does not have this in-
formation for the reporting year. The BMW Group supports Spot-
light Automotive Ltd. with the implementation and further devel-
opment of management approaches and reporting structures on
due diligence obligations in the supply chain.
P
Percentage share of biological materials which are
sustainably sourced
The metric includes the biological materials used in the
BMW Group’s automobile production that were sustainably
sourced. The metric is compiled based on primary data.
Biological materials are defined in accordance with the German
Ordinance on the Deposit of Biological Material (BioMatHintV)
and the German Patent Act (PatG): “For the purposes of this Or-
dinance, ‘biological material’ means any material containing ge-
netic information and capable of reproducing itself or being re-
produced in a biological system”.
When assessing the criteria for sustainable sourcing, the
BMW Group is guided by the standards of the International So-
cial and Environmental Accreditation and Labelling (ISEAL) Alli-
ance. At present, suppliers can provide proof of certification by
the Forest Stewardship Council (FSC) and the Leather Working
Group (LWG). Only those quantities of biological materials for
which an accepted certificate is provided are considered. The
BMW Group understands the cascading principle to mean a
strategy for using raw materials or products made from them in
consecutive steps over time, and to use them for as long, as fre-
quently and as efficiently as possible, and only when the materi-
als can no longer be recycled, to use them for energy recovery.
The unit of the metric is percentage weight [%] and describes the
relative content of the sustainably sourced biological materials in
the total mass [t] of the BMW Group’s resource inflows in the re-
porting period. The metric denominator is ↗ Absolute weight of
products, technical and biological materials.
Potable water consumption per vehicle produced
(automotive)
Efficiency metric calculated from the potable water consumption
measured for automobile production (BMW Group plants, ex-
cluding partner plants, contract manufacturing and Spotlight Au-
tomotive Ltd.) divided by the number of vehicles produced
(BMW Group plants and partner plants, excluding contract man-
ufacturing and Spotlight Automotive Ltd.). Potable water con-
sumption refers to water purchased from external water suppli-
ers. If a BMW Group site does not purchase water from an exter-
nal supplier, the primary source of supply is counted as potable
water. This method of measurement applies to the BMW Group
plants in San Luis Potosí (Mexico) and Araquari (Brazil) where
groundwater is the main source of supply.
The data shown in the metric is derived from production sites
that are certified according to the Eco Management and Audit
Scheme (EMAS), ISO 14001 and partly ISO 50001.
The unit of the metric is cubic metres [m3] per vehicle produced.
Primary material
Primary material is a collective term for substances and mixtures
of substances that are intended for the manufacture of products
and are used in a production process for the first time. This can
include both ↗ primary raw materials and more highly processed sub-
stances and mixtures of substances.
Primary raw materials
Primary raw materials are substances sourced directly from na-
ture.
Q
Quantity of CO2e emissions covered by an internal carbon
pricing system (Scope 1, 2 and 3) and share of total
emissions per scope
As described in ↗ internal CO2 price, Scope 3 Category 11 use phase
emissions, in accordance with the Greenhouse Gas Protocol, are
affected by the internal CO2 price. This is limited to the Automo-
tive segment only. The pro-rata emissions are calculated as a
share of the total emissions and expressed as a percentage.
The unit of the metric is tonnes of CO2 equivalent [t CO2e] (for the
quantities) and percent [%] (for the share of total emissions).
R
Rates of recyclable content in the products (vehicles)
This metric reports the share of recyclable content in relation to
the entire vehicle programme (for all BMW Group vehicles world-
wide, including motorcycles).
Furthermore, the recyclable share is reported as an additional
disclosure based on SASB, TR-AU-440b.3 for BMW Group au-
tomobiles in accordance with the statutory requirements laid
down in the EU Directive on End-of-Life Vehicles (ELV
2000/53/EC). These percentages are based on vehicle weight.
These metrics apply to the individual product/type approval
scopes.
The quotas are verified as part of the European type approval
(certification authority: Société Nationale de Certification et d'Ho-
mologation (S.N.C.H), Luxcontrol S.A.)/Chinese type approval
(certification authority: Ministry of Industry and Information Tech-
nology (MIIT), Certification and Accreditation Administration of
China (CNCA)) in accordance with ISO 22628 and can also be
assumed to apply technically to all vehicles worldwide
(BMW Group automobiles). The consideration of the calculated
vehicles involves what is referred to as the “worst case” vehicle
for the corresponding type approval. This means that vehicles
within the same type approval may also have higher recycling/re-
covery rates, for example, if they contain more metal due to larger
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engines and/or transmissions. For BMW motorcycles, ISO
22628 certification has been demonstrated for five types of mo-
torcycles. It can also be assumed that the quotas are met for the
remaining motorcycle models.
The unit of the metric is percent [%]. The percentages relate to
the minimum required by law. In practice, higher recycling/recov-
ery rates are also possible due to differences between vehicle
versions and/or recycling/recovery processes.
Raw materials
A raw material describes an unprocessed or processed sub-
stance that is used as an input for the manufacture of materials
or intermediates or finished products. A differentiation is made
between ↗ primary and ↗ secondary raw materials. The term “raw ma-
terial” includes substances of a mineral and organic nature. It is
to be distinguished from ↗ resources and materials.
Resources/natural resources
The term refers to natural resources that occur in nature and can
be exploited for economic or consumption purposes. The defini-
tion excludes financial or human resources. Depending on the
context, the term “resource” also contains ↗ material, ↗ raw materials
or, for example, “air”, “water” or “soil”.
S
Scope 1 to Scope 3: CO2e emissions (total)
CO2e emissions generated by a company are categorised into
different scopes. The Greenhouse Gas Protocol, a partnership
between the World Resources Institute (WRI) and the World Busi-
ness Council for Sustainable Development (WBCSD), distin-
guishes between Scope 1, Scope 2 and Scope 3 emissions,
based on their various sources. Whereas direct emissions (Scope
1) are generated within a company through the combustion of
fossil fuels, Scope 2 refers to the indirect emissions caused by
the consumption of electricity and heat from externally generated
sources of energy. Additional indirect (Scope 3) emissions are
generated in the upstream and downstream stages of the value
chain, for instance in the supply chain (upstream) and in the use
of products and services. More details on the different categories
reported by the BMW Group within the individual scopes are pro-
vided below.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 1: CO2e emissions (total)
Scope 1 emissions are generated directly within a company, for
example, through the combustion of fossil fuels. The different
categories reported by the BMW Group are described in more
detail below.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 1: CO2e emissions from BMW Group locations
The metric includes all direct emissions from BMW Group loca-
tions that result from the combustion of a variety of fossil fuels at
all BMW Group locations.
In addition, the metric includes emissions from the operation of
test benches and the resulting CO2e from destroyed volatile or-
ganic compounds (VOC). These are produced, for example, by
the post-combustion of solvent residues in the painting process.
The CO2e emissions are calculated mainly by using the emis-
sions factors of the VDA (most current valid version). These are
based on the latest GWP values in accordance with IPCC AR6,
which take into account the composition of the various sources
of energy specific to each country. Renewable fuels such as
wood are considered carbon neutral, because its CO2 content is
absorbed from the surrounding air and bound in lignin. However,
they are reported together with their equivalents (e.g. N2O, soot).
Biogenic CO2 emissions from bio-based fuels are reported sepa-
rately.
The data from production sites included in the metric is certified
by the Eco Management and Audit Scheme (EMAS), ISO 14001
and partly ISO 50001. Some of the non-manufacturing sites in-
cluded in the metric are certified.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. The
emissions factors [t/MWh] are applied to energy consumption
[MWh].
Scope 1: CO2e emissions from Company vehicles
The metric includes all direct emissions from the BMW Group’s
vehicle fleet expressed in tonnes of CO2e.
The vehicle fleet includes personally and non-personally as-
signed company and multi-purpose vehicles. Personally as-
signed vehicles may be used for business and personal pur-
poses.
The metric is calculated based on consumption for all markets
where fleet consumption data can be obtained (#1 consumption-
based method). If consumption-based data cannot be obtained
for a market, the calculation is based on the mileage-based
method (#2).
When calculating CO2e emissions, the consumption-based
method is the most accurate because there is a direct correlation
between consumption and emissions.
#1 Consumption-based method
The data is sourced from aggregated fuel receipts (such as fuel
card data reports) and filling station data.
The following data is calculated over the period of a reporting
year:
—
Fuel quantities and types (diesel, petrol) including the unit of
measurement (e.g. litres)
—
Emissions factors for the relevant fuels including the unit of
measurement (e.g. CO2e kg/litre).
The calculation formula used in the consumption-based method
per country is:
CO2e emissions = Σ (quantity of fuel consumed x emissions fac-
tor for the respective fuel)
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#2 Mileage-based method
The mileage-based method consists of compiling activity data
(i.e. kilometres driven per vehicle type) multiplied by fuel con-
sumption factors (as a rule, the country-specific standard values
by vehicle type) and emissions factors for fuel types.
The data is sourced from fleet management systems and rec-
ords (such as Excel tables).
The following data is calculated over the period of a reporting
year:
—
Total distance driven by each vehicle in the reporting year,
including unit of measurement (e.g. kilometres, miles)
—
The specific vehicle type, including VINs
—
Vehicle-specific fuel consumption factor as per WLTP,
WLTC, US EPA, etc. (e.g. litre/100 km)
—
Emissions factors for the relevant fuels including the unit of
measurement (e.g. CO2e kg/litre)
The calculation formula used in the consumption-based method
per country is:
CO2e emissions = Σ (distance driven by the respective vehicle
type x fuel consumption specific to the vehicle and country x
emissions factor for the respective fuel)
The data for the respective countries resulting from calculation
methods #1 and #2 is ultimately added up to yield the total re-
ported Scope 1 CO2e emissions.
The metric includes all BMW Group Company vehicles and multi-
purpose vehicle emissions. Data is collected from all BMW Group
plants and its twelve major markets. Emissions are preferably
calculated based on tank refills. This is the case for the plants
and/or markets in Australia, Austria, Brazil, France, Germany,
Hungary, India, Japan, Mexico, South Africa, Thailand and the
UK. In the remaining cases, they are determined based on kilo-
metres driven. If the data was not complete at the time it was
compiled or did not cover the entire period, the metrics are ex-
trapolated for the country or legal entity in question. The data
compiled cover approximately 97% of all BMW Group employ-
ees. The metric is extrapolated based on the number of employ-
ees in order to factor in the entire BMW Group.
Emissions from company vehicles are also included on a pro rata
basis under ↗ Scope 3: CO2e emissions from employee commuting
[Employees’ commuter traffic] and ↗ Scope 3: CO2e emissions from use of sold
products [Use phase]. A distinction in the systems is currently not
possible. Due to the system used, refuelling of Company vehicles
include both business and private trips, with the exception of re-
fuelling paid for by employees themselves.
The VDA’s emissions factors for diesel and petrol (most current
valid version) are used to determine the CO2e emissions. The
VDA factors are based on the latest GWP values in accordance
with IPCC AR6. The values are used globally for all regions. Bio-
genic emissions are reported separately.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
Scope 1: CO2e emissions from Company-owned planes
The metric includes the emissions generated by Company-
owned planes on the basis of all flights operated worldwide.
Emissions from business travel undertaken on scheduled or
chartered flights are not included in the metric, rather, they are
reported under ↗ Scope 3: CO2 e emissions from business travelling.
Only those emissions that are generated directly as a result of
operating the respective aircraft itself in the air and on the ground
(turbine and auxiliary turbine) are taken into account.
Emissions generated by external factors (e.g. the potential use of
a ground power unit or aircraft tug) are not taken into account.
Fuel consumption, which forms the basis for calculating emis-
sions, is calculated using “Method B” as defined in Commission
Implementing Regulation (EU) 2018/2066 of 19 December
2018 on the monitoring and reporting of greenhouse gas emis-
sions pursuant to Directive 2003/87/EC of the European
Parliament and of the Council and amending Commission Regu-
lation (EU) No 601/2012 in the version dated 1 July 2024, which
is defined as follows:
Actual fuel consumption for each flight [t] = Amount of fuel re-
maining in aircraft tanks at block-on at the end of the previous
flight [t] + Fuel uplift for the flight [t] – Amount of fuel contained
in tanks at block-on at the end of the flight [t]
Fuels with biogenic content (sustainable aviation fuel [SAF]) are
treated in accordance with the DEHSt guidance on the use of fuel
mixtures with a biogenic content. The BMW Group applies the
simplified approach for reporting as set out in Section 6.4.2 of
the January 2024 version of the Guidelines for Aircraft Opera-
tors. At present, the BMW Group is not aware of any suppliers of
sustainable aviation fuel that are in a position to provide the nec-
essary documentation for the required acceptance by the Ger-
man Federal Ministry of Food and Agriculture’s NABISY system.
Given the intention to not only report CO2 emissions, but also to
take into account the impact of other greenhouse gases which
are produced through the combustion of kerosene, a combined
emissions factor for 2024 published by the UK Department for
Energy Security and Net Zero will be applied as of the 2024 re-
porting year. These factors are based on the GWP values over a
100-year time horizon stated in the IPCC’s Fifth Assessment Re-
port (AR5).
Other effects that are not based on the reported CO2e emissions,
such as condensation trails, are currently still subject to great un-
certainty in terms of their evaluation and calculation and, as a re-
sult, are not included in the calculations for the metric. The Euro-
pean Union Aviation Safety Agency (EASA) has been tasked by
the European Commission to establish the Aviation Non-CO2 Ex-
perts Network (ANCEN). The network’s inaugural conference
was held between 11 and 13 June 2024. Once results and a de-
fined calculation method for these non-CO2e emissions effects
are available at the European level, the results will be included in
the calculation of this metric. See also the ↗ Announcement by EASA.
It should be noted that the metric defined in this context (unit:
CO2e) deviates from the emissions to be calculated for the
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respective Emissions Trading System (e.g. EU-ETS, SWISS-
ETS, UK-ETS). These are determined in accordance with the
clearly defined requirements of the relevant authorities.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
Scope 2: CO2e emissions (total)
Scope 2 emissions relate to the indirect emissions from exter-
nally purchased electricity, heating and cooling. The BMW Group
distinguishes between two categories, which are described in
more detail below. The values are calculated using both the
↗ Market- and ↗ Location-based method.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 2: CO2e emissions from electricity/heating/cooling
purchased by BMW Group locations
The metric includes all indirect emissions from purchased elec-
tricity, heat and cooling at all BMW Group locations. For non-pro-
duction sites over which BMW Group does not have operational
control, it is assumed that non-renewable energy is used exclu-
sively.
This metric also includes partly the ↗ Scope 2: CO2e emissions from
Company vehicles from charging at BMW Group locations. A distinc-
tion in the systems is currently not possible at some locations.
As with Scope 1, country-specific emissions factors, primarily
VDA factors (most current valid version), are used to calculate
CO2e emissions in each country. The VDA factors are based on
the latest GWP values in accordance with IPCC AR6. In district
heating and cooling, local factors are occasionally applied in-
stead of country-specific factors to account for regional differ-
ences. Biogenic emissions are reported separately.
The data from production sites included in the metric is certified
by the Eco Management and Audit Scheme (EMAS), ISO 14001
and partly ISO 50001. Some of the non-manufacturing sites in-
cluded in the indicator are certified.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. The
emissions factors [t/MWh] are applied to energy consumption
[MWh].
Scope 2: CO2e emissions from Company vehicles
The metric includes indirect emissions (consumption of electric-
ity) from the BMW Group’s vehicle fleet expressed in tonnes of
CO2e.
The vehicle fleet includes personally and non-personally as-
signed Company and multi-purpose vehicles. Personally as-
signed vehicles may be used for business and personal pur-
poses.
The metric is calculated based on consumption for all markets
where fleet consumption data can be obtained (#1 consumption-
based method). If consumption-based data cannot be obtained
for a market, the calculation is based on the mileage-based
method (#2).
When calculating CO2e emissions, the consumption-based
method is the most accurate because there is a direct correlation
between consumption and emissions.
#1 Consumption-based method
Electricity consumption is made up of the @work charging op-
tions (charging stations at BMW Group locations), @public
(charging at public charging stations) and @home (charging at
employees’ homes). Consumption is relevant if the BMW Group
pays for it. Where a charging type relies on verified electricity from
renewable sources (as per the requirements under E1-5-AR32j),
the quantities are not included in the calculation of the metric.
Consequently, a conservative approach is taken in respect of the
classification of the consumption of electricity from renewable
sources. The data are sourced from aggregated fuel receipts
(such as fuel card data reports) and charging system data and
meter readings.
The following data is calculated over the period of a reporting
year:
—
Available charging options within a country/legal entity:
@work, @public and @home
—
Information on whether the charging type relies on electricity
from renewable sources (in accordance with local and BMW
Group requirements and taking into account ESRS criteria)
—
Quantity of electricity consumed (broken down by charging
option) in kWh
—
Emissions factors for electricity in the relevant country (ex-
pressed in t CO2e/MWh)
Calculation formula for the consumption-based method per
country:
Carbon emissions = Σ (quantity of energy consumed (kWh) x
country-specific emissions factor for electricity (t CO2e/MWh))
#2 Mileage-based method
The mileage-based method consists of compiling activity data
(i.e. kilometres driven by vehicle type) multiplied by energy con-
sumption factors (standard factors by vehicle type) and the coun-
try-specific emissions factors for electricity.
The country- and vehicle-specific energy consumption factor
must be specified by the respective market, stating the source
(e.g. WLTP weighted combined).
The data is sourced from fleet management systems, fleet man-
agement records (such as Excel tables) and meter readings, re-
ceipts and fuel card reports for electricity from renewable
sources.
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The following data is calculated over the period of a reporting
year:
—
Total distance driven by each vehicle in the reporting year,
including unit of measurement (e.g. kilometres, miles)
—
The specific vehicle type, including VINs
—
Vehicle-specific energy consumption factor including unit of
measurement (e.g. kWh/100 km or km/kWh)
—
Emissions factors for electricity in the relevant country (ex-
pressed in t CO2e/MWh)
Calculation formula for the mileage-based method per country:
CO2e emissions = Σ (distance driven by the respective vehicle
type x vehicle-specific energy consumption factor) x country-spe-
cific emissions factor for electricity (t CO2e/MWh)
The data for the respective countries resulting from calculation
methods #1 and #2 is ultimately added up to yield the total re-
ported CO2e emissions.
Includes all BMW Group Company vehicles and multi-purpose
vehicle emissions. Data is collected from all BMW Group plants
and its twelve major markets. Emissions are preferably calcu-
lated on the basis of tank refills. This is the case for the plants
and/or markets in Austria, France, Germany, India, Japan, South
Africa and the UK. In the remaining cases, they are determined
based on kilometres driven. If the data was not complete at the
time it was compiled or did not cover the entire period, the met-
rics are extrapolated for the country or legal entity in question.
The data compiled cover approximately 97% of all BMW Group
employees. The metric is extrapolated based on the number of
employees in order to factor in the entire BMW Group.
Emissions from Company vehicles are also partly included under
↗ Scope 3: CO2e emissions from employee commuting [Employees’ commuter
traffic], ↗ Scope 3: CO2e emissions from use of sold products [Use phase] and
↗ Scope 2: CO2e emissions from electricity/heating/cooling purchased by
BMW Group locations. A distinction in the systems is currently not
possible. For system-related reasons, the charging of Company
vehicles includes both business and private trips, except charg-
ing paid for by employees themselves.
The main basis for determining CO2e emissions is the VDA’s
emissions factors (most current valid version). The VDA factors
are based on the latest GWP values in accordance with IPCC
AR6. Biogenic emissions are reported separately.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
Scope 3: CO2e emissions (total)
Scope 3 emissions are generated in the upstream and down-
stream stages of the value chain. For details of the BMW Group’s
main categories in accordance with the Greenhouse Gas Proto-
col, see ↗ Materiality of the various Scope 3 categories.
Each of the reported categories is described in more detail below.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 3: CO2e emissions from purchased goods and services
The metric describes the absolute quantity of CO2e emissions re-
lated to the production of purchased goods and services which
are emitted during the production of BMW Group vehicles (auto-
mobiles and motorcycles). It therefore reflects Scope 3 Category
1 of the Greenhouse Gas Protocol. The following are currently
not considered in this category: racing vehicles and aftersales
products, as well as purchased IT cloud services and engineering
or development services.
A specific methodology has been developed for the BMW Group
to determine CO2e supply chain emissions. Due to the absence
of supplier-specific CO2e values across the entire supply chain, a
model based on industry averages and, where available, sup-
plier-specific data is used. This method draws upon components
of ISO 14040/44 and follows common practice in preparing life
cycle analyses (LCA). However, it should be noted that this ap-
proach may not be directly comparable with methods or values
employed by other companies. Due to the absence of data, vari-
ous estimates, assumptions and average values are used to de-
termine the metric. The aim is to improve the model quality for
calculating the metrics over the reporting years by increasing
transparency in the supply chains and by expanding the model
details, while maintaining a consistent methodology.
The methodology outlined in the following is used to calculate
the emissions data for BMW Group automobiles. Emissions data
for motorcycles produced by BMW Group is determined using a
simplified calculation.
BMW Group automobiles: the initial calculation of the supply
chain CO2e emissions for a representative selection of vehicles is
based on their bill of materials. This selection reflects the range
of vehicle classes (from premium compact to luxury) and drive
models (petrol, diesel, PHEV and BEV) produced during the pe-
riod under review. The bill of materials is configured in such a way
that it already contains engine and drive variants, along with op-
tional equipment.
For the representative vehicles, the CO2e emissions of all in-
stalled components are calculated on the basis of their material
composition and related processing steps. In each case, up to
around 60,000 individual entries are evaluated per vehicle. The
CO2e value of the relevant vehicle is calculated by adding up
these contributions.
For the vast majority of vehicle models produced that are not in-
cluded in the representative vehicles, there is no individual CO2e
calculation available on a bill of materials basis. A modular scal-
ing calculation method has been developed to include these in
the overall result: the bill of materials of the representative vehi-
cles is divided into sections (modules) according to functional cri-
teria, and these are assessed in terms of their total CO2e emis-
sions. Vehicle derivatives that have not yet been evaluated can
now be custom built using these basic components, with the
components selected being determined by the specific technical
features of the target vehicles, including engine type, all-wheel
drive or body style. Components that do not fit are scaled from
existing ones. The scaling techniques are based on calculations
as well as on expert evaluations. This encompasses the scaling
of detailed bodywork calculations ranging from sedans to touring
models with identical engine specifications.
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For example, a calculation would be available for a BMW 520i as
a vehicle evaluated on a bill of materials basis, but not for a BMW
520i Touring in this instance. To ensure that the latter is accu-
rately represented, the calculated CO2e emissions for compo-
nents such as the drivetrain, wheels and seats remain un-
changed, while the body values are multiplied by a scaling factor
when calculating the touring model. The methodology outlined
above draws on the established LCA for Experts database from
Sphera to ascertain CO2e factors for energy, raw materials and
manufacturing processes. In this process, the current datasets
are consistently used, starting with the 2023 reporting year. The
most recent Sphera database, which takes into account GWP
factors in accordance with IPCC (AR6), is used for 2024. Data
from 2019 is used to calculate CO2e emissions retrospectively
from 2019 until the release of the datasets at the end of Febru-
ary 2023.
The CO2e emissions of supply chains vary across different re-
gions of the world. Therefore, for reasons of simplicity, the pro-
duction sites of the vehicles are allocated to one of three regions:
Europe, Asia or the USA. Then the emissions are calculated for
the entire vehicle supply chain using the Sphera datasets that are
valid for that region. The design of the BMW Group calculation
method both facilitates and requires the use of a large number of
different materials, for which the secondary data of the emissions
factors must be provided for the calculation. This data is not
equally available for all regions of the world. The approach taken
by the BMW Group in this context involves closing gaps in the
required secondary data by means of scaling using VDA material
classes. The emission-intensive battery cells and catalytic con-
verter coating are specifically calculated based on their actual
production region, irrespective of the vehicle’s manufacturing lo-
cation.
Given the significant impact of battery cell production on the ve-
hicles’ total CO2e emissions, a detailed calculation model is used
to assess the cells. In addition to the actual assembly sites of the
battery cells, the material compositions and related production
processes, it also accounts for the unique characteristics of the
cell chemistry (anode and cathode) as well as the emissions as-
sociated with supplier-specific energy consumption.
This approach gives each vehicle (automobile) built during the
period under review its specific CO2e base value for supply chain
emissions (hereinafter referred to as the base value). The total
fleet value of CO2e supply chain emissions is calculated by add-
ing up the CO2e contributions of all automobiles produced in the
reporting year.
Since the method described is based primarily on the use of sec-
ondary data – i.e. industry average values – individually agreed
on CO2e-reducing measures must be deducted from the fleet
base value in a subsequent process step. The calculation of the
total quantities of CO2e emissions saved is described in the met-
ric ↗ CO2e reduction in the supply chain (Scope 3 upstream). Therefore, the
metric is derived from the base value described above, minus the
↗ CO2e reduction in the supply chain (Scope 3 upstream).
BMW motorcycles: the share of supply chain emissions at-
tributed to the motorcycle fleet is calculated using a simplified
method. In this case, a representative motorcycle (or scooter) is
selected for each family of vehicles (with the same drivetrain: in-
line or boxer, electric drive); the supply chain emissions are then
assessed for this derivative.
This also involves analysing the bill of materials at the compo-
nent level, with a focus on the materials used and the associated
manufacturing processes. Secondary data from “LCA for Ex-
perts” (Sphera) is used here. This method draws upon compo-
nents of ISO 14040/44 and follows common practice in prepar-
ing life cycle analyses (LCA). When scaling the emissions to the
entire motorcycle fleet, the CO2e values obtained for the supply
chain of the assessed vehicle are scaled to all other derivatives
of the same family using the vehicle mass. This value is then mul-
tiplied by the total number of vehicles (motorcycles) produced in
the reporting year.
This estimation method for motorcycles does not work by scaling
component elements and as a result is unable to model differen-
tiations within the individual vehicle families in as much detail as
is the case in the calculation for automobiles. CO2e-reducing
measures are not currently verified by motorcycle suppliers inde-
pendently and are therefore also not accounted for in ↗ CO2e
reduction in the supply chain (Scope 3 upstream).
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 3: CO2e emissions from upstream transportation and
distribution [Logistics]
The metric comprises the CO2e emissions generated by
transport logistics, which include inbound (production supply),
outbound (vehicle distribution) and customer support (spare
parts).
All modes of transport used within the BMW Group transport net-
work for BMW Group automobiles and motorcycles up to the
sales organisation are taken into account:
—
Road
—
Rail
—
Sea
—
Inland waterway
—
Air freight
In accordance with Scope 3 of the Greenhouse Gas Protocol,
transport emissions fall under Categories 4 (“Upstream trans-
portation and distribution”) and 9 (“Downstream transportation
and distribution”). Only the definition of Category 4 applies to the
BMW Group’s transport logistics because the BMW Group bears
the transport costs up to the point of sale. Emissions after the
point of sale are reported in Scope 3 under Category 11 in the
use phase because it is usually from this point onwards that the
automobile or motorcycle is put into operation by the customer.
Emissions from the BMW Group’s own warehouses and distribu-
tion centres are reported in Scopes 1 and 2.
The distance-based method (in accordance with the Greenhouse
Gas Protocol) is used to calculate the CO2e emissions of
transport logistics. First, the transport performance is calculated
(weight multiplied by distance) in tonne-kilometres [tkm]. The
relevant weight in tonnes [t] comprises the gross weight (com-
ponent/motorcycle weight including packaging and shipping ma-
terial) for inbound, customer support (spare parts) and motorcy-
cle outbound, while the vehicle mass is used for automobile out-
bound. Distance is the distance travelled in kilometres [km]. In
the second step, the transport volume is multiplied by specific
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emissions factors in grams of CO2e per tonne-kilometre
[g CO2e/tkm], depending on the technology used in the means of
transport and the carrier. The emissions factors used account for
the entire chain of emissions (well-to-wheel). This means they
include all greenhouse gas emissions generated over the entire
life cycle, from production and transport of the fuel/energy (well-
to-tank) to combustion of the fuel/use of the energy (tank-to-
wheel).
When it comes to specific emissions factors, the BMW Group
draws on primary data from logistics service providers wherever
possible. In case no primary data is available, the specific emis-
sions factors are modelled in line with ISO 14083 and IPCC AR6.
The main sources of information are GLEC (Global Logistics
Emissions Council) Framework (reporting year 2024: GLEC
V3.1) and shipping company-specific emissions data by
CleanCargo (reporting year 2024: published in October 2024).
In this context, “modelled” means that the default values defined
in the GLEC framework are converted using parameters specific
to the BMW Group (e.g. load factors for sea, freight and road
transportation). Standardised reference values (default values)
only need to be applied in individual cases.
For the calculation of CO2e emissions in inbound logistics, all
transport flows of component parts for automobile (BMW, MINI
and Rolls Royce) and motorcycle manufacturing are considered.
This includes transportation from the Tier 1 supplier’s shipping
location to the receipt of goods at the BMW Group production
plants worldwide, including partner plants and excluding contract
manufacturing sites. For this purpose, supported by internal IT
applications, the billing and movement data are entered. Due to
a time lag in the technical availability of data as of the reporting
date, correction factors are applied based on historical data from
previous years for certain transactions in the calendar months of
November and December. The relevant CO2e emissions are cal-
culated for each individual transport flow in line with the method-
ology described, and an average derivative-specific inbound
CO2e value is assigned to each vehicle produced, depending on
the production site and drivetrain variant.
The transport flows of new vehicles from the production sites to
warehouses and to points of sale worldwide are considered for
outbound automobile emissions. In this case, too, the billing and
movement data are recorded supported by internal IT applica-
tions. The associated CO2e emissions for each vehicle produced
are calculated using the methodology described above. An aver-
age derivative-specific outbound CO2e value is calculated for
each plant-market combination.
A simplified procedure is used to calculate motorcycle outbound
emissions in the 2024 reporting year. This involves calculating a
volume-weighted average weight including packaging and then
identifying the sales markets, which together account for 80% of
the retail volume. The main transport routes are analysed, the
corresponding distances travelled are determined and motorcy-
cle-specific emissions factors are modelled for these markets.
The CO2e emissions calculated on this basis are added up and
extrapolated to 100% by applying the retail volume. The
transport flows of transported new vehicles from the production
plants, including manufacturing sites, via warehouses to points
of sale worldwide are taken into account in a similar way to au-
tomobile outbound emissions.
The calculation of customer support (spare parts) emissions con-
siders the billing and movement data of transport flows for auto-
mobile (BMW, MINI, Rolls-Royce) and motorcycle spare parts
from the receipt of goods to markets worldwide. Due to time lags
and technical issues related to the availability of data as of the
reporting date, correction factors are applied for certain amounts
for the calendar months of November and December based on
historical data from previous years and industry averages. The
corresponding CO2e emissions are calculated for each transport
flow in accordance with the methodology described and pre-
sented together with inbound and outbound data in the Group
Report.
The unit of the metric is tonnes of CO2 equivalent [t CO2e]. Bio-
genic emissions are reported separately.
Scope 3: CO2e emissions of business travelling
The metric includes all BMW Group business travel. Business
travel using BMW Group-owned planes, Company vehicles and
privately owned vehicles is not included in the metric. The metric
reflects Scope 3 Category 6 of the Greenhouse Gas Protocol.
The CO2e emissions generated by business travel are calculated
based on real activity data relating to destinations, distances and
the means of transport used. The flight data are based on the
number of tickets sold per route booked at contract-based travel
agencies. Where flight route distances are not provided by indi-
vidual markets, these are calculated manually based on the point
of departure and the destination. To calculate CO2e emissions,
the flight routes are divided into short-haul or long-haul flights in
economy, premium economy, business or first class. Business
travel with rental cars is based on data from all bookings made
with BMW Group accounts with car rental companies and include
distance, fuel and vehicle class. The travel agencies also provide
distance data for rail travel. Exception: rail journeys undertaken
on Deutsche Bahn AG trains in Germany are carbon neutral be-
cause energy from 100% renewable sources is used for long-
distance and electrified commuter trains, and indirect emissions
and emissions from diesel transaction in commuter trains are off-
set by Deutsche Bahn AG. This means that these rail journeys
are included in the calculation as having zero emissions.
The calculation is made using the emissions factors published by
the UK Department for Environment, Food and Rural Affairs (DE-
FRA). These factors are based on the GWP values over a 100-
year time horizon stated in the IPCC’s Fifth Assessment Report
(AR5). The calculation is carried out in the same way as the met-
ric in ↗ Scope 1: CO2e emissions from Company-owned planes, without the
inclusion of radiative forcing. Biogenic emissions are reported
separately.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
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Scope 3: CO2e Emissions of employee commuting
[Employees’ commuter traffic]
The metric includes the CO2e emissions generated by
BMW Group employees commuting to work. The metric reflects
Scope 3 Category 7 of the Greenhouse Gas Protocol.
BMW Group employees are all persons with temporary or per-
manent employment contracts at the BMW Group as at 31 De-
cember of the reporting year. This does not include employees in
the inactive early retirement phase, women on maternity leave,
temporary agency workers and employees who are absent for
reasons including sabbaticals, parental or family care leave,
long-term sick leave, military service, or accompanying their part-
ner abroad and other BMW Group employees (apprentices, dual
students, interns, authors of theses, post-graduate students,
scholarship holders, assistants, working students and (journalist)
trainees). Commuting refers to the journey from home to the pri-
mary place of work and back. Only direct emissions generated
during commuting are included; emissions resulting from the
production of the means of transport are not accounted for.
A differentiation is made between the following modes of
transport: (1) motorised private transport (automobile, motorcy-
cle), (2) Company shuttle bus, (3) bicycle and pedestrian traffic
and (4) public transport.
For technical reasons, the emissions generated from the use of
Company cars for commuting purposes are included in this met-
ric as well as in ↗ Scope 1: CO2e emissions from Company vehicles and
↗ Scope 2: CO2e emissions from Company vehicles. The metric does not
include journeys between BMW Group locations or business
travel.
The data is calculated using real activity data for over 85% of
employees. The remaining 15% is extrapolated based on the to-
tal number of employees.
For each location, the CO2e emissions resulting from employee
commuting are calculated based on the number of employees,
the absence rate, the take-up of mobile working, the number of
production days and the average distance between the primary
place of work and home address. The distance is calculated per
employee. Residential location data at the postcode level is avail-
able and is taken as a basis for the calculation. The average per
capita values for the respective sites are used in subsequent cal-
culations. The average distance per mode of transport was cal-
culated separately for each site. The distance travelled by Com-
pany shuttle buses is calculated in kilometres.
To calculate the metric, a usage factor is attributed to each car-
rier, known as the modal split, on a site-specific basis. This indi-
cates the percentage of employees who use a particular means
of transport. The data for the usage factor is collected by external
providers via surveys or provided by the BMW Group’s plants and
non-manufacturing sites (in-house mobility departments) based
on their own data. The data is further validated by comparing it
with the use of parking spaces, the number of employees with
subsidised season tickets for public transport, the registration of
Company shuttle buses and the number of bicycle parking
spaces available. The automobile occupancy rate ranges be-
tween 1.05 and 1.1 people per vehicle. The figure is measured
directly (by counting) at some sites and estimated on the basis
of comparative figures at others.
Three different values are used to calculate CO2e emissions:
—
VDA’s emissions factors (most current valid version) based
on the most recent GWP values for emissions related to
work shuttle buses in accordance with IPCC AR6. The cal-
culation is based on kilograms of CO2e per litre of fuel
—
Emissions factors as per the TREMOD report published by
the German Environment Agency (Umweltbundesamt),
based on IPCC AR5 for personal vehicles. The calculation is
based on CO2e per kilometre
—
Values calculated in-house at BMW Group based on the
VDV 2019 statistics on public transport emissions. The cal-
culation is based on CO2e per passenger kilometre
The values are applied globally for all regions.
The kilometre distance is multiplied by the usage factor for each
mode of transport and subsequently by the allocated emissions
factor and the number of employees per location. The sum adds
up to the total CO2e emissions resulting from employee commut-
ing. Biogenic emissions are reported separately.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
Scope 3: CO2e emissions from use of sold products [Use
phase]
The metric describes the absolute quantity of CO2e emissions
calculated for the use phase of BMW Group vehicles (automo-
biles and motorcycles) delivered in the reporting year. The abso-
lute emissions in the use phase are based on the average CO2e
emissions by the global new vehicle fleet, including upstream
emissions (Scope 3 downstream, well-to-wheel, see ↗ CO2e
emissions of the new vehicle fleet worldwide (Scope 3 downstream, well-to-
wheel). The metric reflects Scope 3 Category 11 of the Green-
house Gas Protocol.
The total value in t CO2e is the result of multiplying the average
CO2e emissions per km for the EU, US and Chinese markets by
the number of BMW Group vehicles delivered worldwide in the
reporting period and an assumed average mileage over the en-
tire life cycle (Automotive segment: 200,000 km, as per VDA
900-100; Motorcycles segment: 40,000 - 100,000 km depend-
ing on the model, based on statistical analyses). These core mar-
kets account for more than 80% of the BMW Group’s sales. The
actual values may differ from the calculated values depending on
individual use and location.
This metric records the use phase emissions of all units sold in
the reporting period over their entire expected life cycle.
In addition to the emissions generated during the use of the ve-
hicles (tank-to-wheel), the emissions generated during provision
of the required drive energy (well-to-tank) are also taken into ac-
count.
A detailed description of the global average CO2e emissions per
kilometre of a new BMW Group car can be found at ↗ CO2e
emissions of the new vehicle fleet worldwide (Scope 3 downstream, well-to-
wheel). The calculation of the average value is based on the reg-
ulatory consumption values of the vehicles delivered in the major
core regions (EU, USA, China). BMW Motorrad uses certified
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consumption values according to the Worldwide Harmonized
Motorcycle Test Cycle (WMTC).
A factor of 10% is added to these values in order to reflect devi-
ations in customer driving behaviour compared to the statutory
reference cycles and thus meet the SBTi specification. This is
how the tank-to-wheel emissions are calculated. In line with the
well-to-wheel approach, the upstream emissions of the energy
sources are included in the metric. The corresponding emissions
factors from the company Sphera are used to calculate the up-
stream chain of fuel production (database version 2024.2, IPCC
AR6, kg CO2e/kg fuel). To calculate the CO2 emissions resulting
from electricity production in the respective markets, the
BMW Group uses the energy report published by the Interna-
tional Energy Agency (IEA) (reference basis: previous year,
g CO2/kWh) as a basis.
This covers the entire impact chain behind vehicle motion, i.e.
from the extraction and provision of fuels to their conversion into
drivetrain energy. This approach also includes the environmental
impacts associated with the generation of fuel and electricity.
The data collection method is based on the requirements of the
Greenhouse Gas Protocol (Scope 3 Calculation Guidance Ver-
sion 1.0, 2013). Biogenic emissions are reported separately.
The CO2e emissions of ↗ Scope 1: CO2e emissions from Company vehicles
and ↗ Scope 2: CO2e emissions from Company vehicles are also partly in-
cluded in this metric. A distinction in the systems is currently not
possible.
The unit of the metric is tonnes of CO2 equivalent [t CO2e].
Scope 3: CO2e emissions from end-of-life treatment of sold
products [Disposal]
The metric describes the absolute amount of CO2e emissions
from the end-of-life treatment of sold products [disposal] (Scope
3 downstream). The metric reflects Scope 3 Category 12 of the
Greenhouse Gas Protocol.
The CO2e emissions from recycling in tonnes of CO2e are based
on TÜV-certified life cycle assessments of vehicles that are
representative of the overall fleet. These were carried out at the
respective start of production between 2019 and 2024 (accord-
ing to ISO 14040/44) and form the basis for deriving the metric
by scaling to the production volume for the entire fleet.
Representative vehicles (automobiles and motorcycles) of the
vehicle variants produced in the reporting year are used for the
metric. The calculation is carried out via the established "LCA for
Experts" database provided by Sphera (taking into account,
among other things, the climate-impacting gases CO2, CH4, N2O,
SF6, NF3) in the database version available at the respective ac-
counting dates between 2018 and 2024 and in accordance with
IPCC AR5 and IPCC AR6. The modelling is based on conven-
tional procedures specified in the End-of-Life Vehicles Directive
(ELV Directive), covering draining and dismantling procedures.
Additionally, it includes the separation of metals during shred-
ding and the use of energy from the shredder’s light fraction,
which comprises non-metallic components. The average values
for the emissions generated by the disposal of existing vehicle
types are used and multiplied by the number of vehicles pro-
duced per vehicle type. The calculation provides both the CO2e
emissions and the energy consumption associated with the pro-
cesses.
The unit of the metric is tonnes of CO2 equivalent [t CO2e] for
emissions and gigawatt hours [GWh] for energy consumption.
Secondary material
Secondary material is a collective term for substances and mix-
tures of substances that are intended for the manufacture of
products and are obtained from waste or production residues.
Secondary material can be used as a substitute for ↗ primary raw
materials. This can include both ↗ secondary raw materials and more
highly processed substances and mixtures of substances.
Secondary raw materials
A secondary raw material is a raw material or material obtained
from waste or production residues. Secondary raw materials can
be used as a substitute for ↗ primary raw materials.
Share of coverage of production-related purchasing volume
from suppliers participating in CDP
The metric describes the degree of coverage of the production-
related purchasing volume of all reporting CDP suppliers of the
production-related purchasing volume of the BMW Group within
the reporting period. The metric is calculated based on the share
of the purchasing volume of suppliers in the data set provided by
CDP (formerly Carbon Disclosure Project) in the BMW sales vol-
umes derived from the purchasing system.
The metric does not include any information on the supply chain
of the Chinese joint operation Spotlight Automotive Ltd. as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
The unit of the metric is percent [%].
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T
Total volume of recycled and reused water
This metric includes water and wastewater (treated or untreated)
that has been reused more than once to reduce the water de-
mand before it is discharged beyond the boundaries of the Com-
pany sites or shared plants.
This may be within the same process (recycled) or another pro-
cess within the same plant (owned or shared with other compa-
nies) or another plant within the organisation (reused). Cooling
and hot water circuits are not included. This metric relates to wa-
ter (recycled and reused) from the BMW Group’s automobile pro-
duction, the BMW Group’s motorcycle production and the
BMW Group’s non-production sites. The volume of water is rec-
orded using meters or extrapolated from the data sheets of the
respective plants.
The unit of the metric is cubic metres [m3].
Total water stored and changes in storage
The metric comprises the total volume of water stored as well as
the changes in the storage volume at all production sites (includ-
ing automobile and motorcycle production) and non-production
sites.
The metric relates both to the size of the storage volume and to
any changes in it. All storage tanks with a minimum volume of
100 m³ and a storage time of > 1 day are taken into account.
The storage capacities are derived from data sheets and meas-
urements and then totalled across all storage systems. Changes
in volume are obtained by totalling all water inflows and con-
sumption throughout the reporting year. These are either meas-
ured or otherwise extrapolated based on the measurements car-
ried out in the plants or technologies.
The unit of the metric is cubic metres [m3].
U
Unbundled instruments
For the BMW Group, unbundling means the separate and inde-
pendent purchase of Energy Attributes Certificates and actual
physical quantities of electricity. The Energy Attributes Certifi-
cates may originate from generation plants and suppliers differ-
ent from the physical electricity quantities.
W
Waste (total quantity, breakdown and shares)
This metric includes the total quantity of waste generated by pro-
duction, along with a breakdown of the types and percentages. It
includes waste from the production of automobiles, motorcycles
and components at BMW Group plants, excluding partner plants
and contract manufacturing. Waste resulting from structural
changes is not taken into account.
The metric includes the following information: (1) total waste,
(2) waste for recovery (including both material and thermal recy-
cling), (3) share of material recovery in the total quantity,
(4) share of thermal recovery in the total quantity, (5) waste for
disposal, (6) share of disposed waste in the total quantity.
The data shown in the metric is derived from production sites
that are certified according to the Eco Management and Audit
Scheme (EMAS), ISO 14001 and partly ISO 50001. The waste
quantities are determined from weighed and systematically rec-
orded data for waste documentation. Quantities from the new
plant in Debrecen (Hungary) are currently not included due to the
fact that production has not yet started.
The unit of the metrics are tonnes [t] (for quantities) and percent
[%] (for shares). The metrics are additional disclosures based on
SASB, TR-AU-440b.1 (1, 3, 4) and calculated based on SASB,
TR-AU-440b.1 (2, 5, 6).
Waste for disposal per vehicle produced (automotive)
The metric is calculated from the waste for disposal generated
by automobile production (BMW Group plants, excluding partner
plants, contract manufacturing and Spotlight Automotive Ltd.) di-
vided by the number of vehicles produced (BMW Group plants
and partner plants, excluding contract manufacturing and Spot-
light Automotive Ltd.).
The data shown in the metric is derived from production sites
that are certified according to the Eco Management and Audit
Scheme (EMAS), ISO 14001 and partly ISO 50001. The waste
quantities are determined from weighed and systematically rec-
orded data for waste documentation.
The unit of the metric is kilograms [kg] per vehicle produced. The
metric is an additional disclosure calculated based on SASB, TR-
AU-440b.1 and the number of vehicles produced.
Water consumption (total)
The metric includes water consumption at all production plants
(automobiles and motorcycles) and non-manufacturing sites, in-
cluding test tracks, office buildings and branches of the BMW
Group.
The metric measures the amount of water that enters the Com-
pany's (or plant's) sites during the reporting period and is not dis-
charged into bodies of water or transferred to third parties. Total
consumption includes the consumption of potable water,
groundwater, surface water and rainwater. This does not include
water released back into the environment or returned to third
parties during the reporting period.
In general, the water in question is freshwater. This corresponds
to groundwater and surface water with an average annual salin-
ity of < 0.5% (limit mentioned in Annex II of the Water Frame-
work Directive).
All water that is below the saturation zone and in direct contact
with the ground or subsoil is referred to as groundwater. By con-
trast, surface water refers to inland waters, except groundwater,
as well as transitional and coastal waters. With regard to the
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chemical status, territorial waters are also included by way of ex-
ception.
Meters record water consumption at production plants and at
some non-manufacturing sites. The water consumption of the
remaining sites is extrapolated based on the number of BMW
Group employees, other BMW Group employees and temporary
agency workers and, in the case of the branches, also on the ba-
sis of the number of passes through car washes, which is deter-
mined by the sales figures and the number of services. This is
based on an average freshwater consumption of 20 litres per
employee per working day. A consumption of 50 litres per car
washing pass is estimated based on a car wash with circulation.
Furthermore, the metric is corrected by a value which results
from the average water consumption of all sites for which exact
measurement values are available. Since personal water con-
sumption in particular varies greatly between countries, water
consumption at international locations is adjusted for a country-
specific factor.
The underlying average consumption per employee per day for
German locations is based on the German Federal Ministry for
Sustainable Building (BNB) and the Federal Statistical Office.
The average consumption of car washes with circulation corre-
sponds to BMU/LAGA regulations for wastewater containing
mineral oil.
The data from production sites included in the metric is certified
by the Eco Management and Audit Scheme (EMAS), ISO14001
and partly ISO 50001. Some of the non-manufacturing sites in-
cluded in the metric are certified. Quantities from the new plant
in Debrecen (Hungary) are currently not included due to the fact
that production has not yet started.
The unit of the metric is cubic metres [m3].
Water consumption in areas affected by water risks or
water stress
The metric includes the total consumption of freshwater at the
production sites (automobiles and motorcycles) and test tracks
of sites located in areas with high or very high water stress or
high or very high water risk.
Water stress measures the ratio of total water demand of the
available renewable surface and groundwater resources in a re-
gion.
If the ratio of water demand to renewable water supplies is below
10%, this is referred to as low water stress. Other categories are
low-medium (10-20%), medium-high (20-40%), high (40-
80%) and extremely high (>80%). The metric includes all pro-
duction plants and test tracks in areas with a water stress level
of more than 40%. Other non-manufacturing sites are below the
materiality threshold and are therefore not taken into account.
In terms of water risk, in addition to water stress, flood risks as
well as regulatory and reputational risks are considered on the
basis of the ESG risk defined in the Aqueduct Atlas and RepRisk.
The ESG Risk Index measures the extent to which a country is
exposed to potential financial, reputational and compliance risks
related to environmental, social and governance (ESG) issues
that could jeopardise the quantity, quality and access to water.
The index values are relative to the highest index achieved in a
particular country in the previous two years. The higher the value,
the higher the risk. Risk classes vary from low (<25%) to low-
medium (25-50%), medium-high (50-60%), high (60-75%)
and extremely high (>75%), with only the last two categories be-
ing relevant for the metric.
The flood risk refers to river and coastal flooding. The risk is de-
termined by the hazard (flooding due to river overflow), the extent
to which the population is exposed to the risk, and vulnerability.
The index indicates the percentage of the population that is ex-
pected to be affected by flooding. Existing flood defences are
also taken into account. In contrast to reputational risk, the risk is
not determined for the entire country, rather at the regional level.
The index for flood risk is calculated on the basis of the hazard
(river flooding), the exposure (population in the floodplain) and
the actual risk of the risk occurring, taking into account existing
flood protection measures, where appropriate. Extreme but in-
frequent flood years are averaged with more frequent, less se-
vere flood years. The calculation for flood risk in coastal areas is
similar, though on a different scale.
The assessment thresholds for flood risks are as follows:
Assessment thresholds for flood risks
River flooding
Coastal
flooding
Low
< 1/1.000 < 9/1.000.000
Low-Medium
1 to 2/1.000
9/1.000.000 to
7/100.000
Medium-High
2 to 6/1.000
7/100.000 to
3/10.000
High
6/1.000 to
1/100
2/10.000 to
2/1.000
Extremely high
> 1/100
> 2/1.000
The unit of the metric is cubic metres [m3].
Water intensity
The water intensity is calculated based on the BMW Group's total
water consumption in m3 ↗ Water consumption (total). The denomi-
nator is based on BMW Group net revenues ↗ note [7]. These net
revenues are adjusted by an item related to the Financial Ser-
vices segment's third-party business. Since water consumption
associated with the production of vehicles sold under other
brands is not included in the numerator of this metric, related rev-
enues are deducted from the denominator.
The unit of the metric is cubic metres per euro [m3/€].
Weight and percentage of secondary reused or recycled
components, products, and materials
The metric comprises the weight [t] and the percentage [%] of
reused and recycled secondary components, products and ma-
terials of the resource inflows for the BMW Group’s automobile
production in the reporting period.
The following definition is applied in accordance with DIN EN ISO
14021 to determine the quantities that are reused and recycled.
Reused material is defined in DIN EN ISO 14021:2021-10 as
“reutilisation of materials such as rework, regrind or scrap gener-
ated in a process and capable of being reclaimed within the same
process that generated it”. It includes materials that accrue as
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production residue in the production process and are not de-
clared as waste.
Recycled material is defined in DIN EN ISO 14021:2021-10 as
“material that has been reprocessed from recovered [reclaimed]
material by means of a manufacturing process and made into a
final product or into a component for incorporation into a prod-
uct”. Only pre-consumer and post-consumer materials shall be
considered as recycled content according to DIN EN ISO
14021:2021-10. The material is declared as waste in these ma-
terial streams.
The metric describes the percentages of recycled and reused
materials, that is contained in the BMW Group’s automobile pro-
duction. It is composed of the total quantity of recycled material,
as well as the quantities of recycled auxiliaries and operating ma-
terials used in the in-house production of supplies, other associ-
ated process ma-terials and recycled water, as well as the quan-
tity of reused materi-als and reused water in in-house produc-
tion, which are required in automobile production in the reporting
period.
To determine the recycled material required for automobile pro-
duction in the reporting period, an allocation is carried out to as-
certain whether recyclate values are available for the compo-
nents, products and materials. This allocation is based on sev-
eral data sources. Primary data from the suppliers is used where
available. If not, material-specific data sets taken from the
Sphera database (based on average industrial values) are used.
Material-specific data sets are allocated according to the mate-
rial classification. The recyclate value is assumed to be zero if no
data is available from suppliers or the Sphera database. The cal-
culation is performed in accordance with DIN EN ISO14021*.
To calculate the quantity of recycled and reused materials, the
quantities are extrapolated across the entire fleet based on the
vehicle groups used to calculate the vehicle weight (BMW Group
automobile production volume).
Since there is no information available on the percentage of re-
cycled materials contained in the auxiliaries and operating mate-
rials, a recyclate value of zero is assumed for these quantities. A
recycled material content based on average industrial values can
be counted for the other process materials from the
BMW Group’s automobile production.
The material reused in in-house production is recorded and re-
ported by the sites with in-house production. Where there is no
data on reuses material in in-house production, the value is as-
sumed to be zero.
The categories of reused material and recycled material are allo-
cated in accordance with the definitions set out above and there
is no overlap, thus eliminating double counting.
The volume of reused or recycled water is recorded using meters
or extrapolated from the data sheets of the respective plants.
This metric records water and wastewater (treated or untreated)
that has been used more than once to reduce the water demand
before it is discharged beyond the boundaries of the Company
site or shared plants. This may be within the same process (re-
cycled) or another process within the same plant (owned or
shared with other companies) or another plant within the organ-
isation (reused).
The categories of reused water and recycled water are allocated
in accordance with the definitions set out above and there is no
overlap, thus eliminating double counting.
The unit of the metric is the total mass [t] of the BMW Group’s
secondary reused and recycled components, products and ma-
terials in the reporting period. Furthermore, the percentage value
is stated: the unit of the metric is the percentage weight [%] and
describes the relative content of secondary reused and recycled
components, products and materials in total mass [t] of the
BMW Group’s resource inflows in the reporting period. The met-
ric denominator is ↗ Absolute weight of products, technical and biological
materials.
Weight of materials recovered at the recycling and
dismantling centre
Weight of materials recovered at end of life, in tonnes: this metric
is calculated for vehicles (automobiles and motorcycles) taken
back and dismantled at the BMW Group’s recycling and disman-
tling centre (RDZ) in Munich (Germany) (as required by law in
Germany). Almost all of these vehicles have been used by the
Company, for example, as prototypes or pre-production vehicles.
When the vehicle arrives at the RDZ, a decision is made as to
which parts can be reused and which need to be recycled (includ-
ing the catalytic converter, high-voltage battery, etc.). The parts
that can be reused are weighed during the loading process and
then sold externally via selected retail partners. These parts form
the first component of the metric. The second component is the
metal waste (ferrous and non-ferrous metals) removed from the
automobiles, which is recycled rather than sold. The material is
weighed at the Munich (Germany) plant before the automobiles
are shredded. This is not included in the metal waste resulting
from production at the Munich (Germany) site. Some of the re-
maining waste is recycled (e.g. plastics) and included in the met-
ric.
This metric is an additional disclosure based on SASB, TR-AU-
440b.2.
The unit of the metric is tonnes [t] and/or percent [%]. The per-
centages relate to the minimum required by law. In practice,
higher recycling/recovery rates are also possible due to differ-
ences between vehicle versions and/or recycling/recovery pro-
cesses.
* DIN EN ISO 14021:2021-10. Environmental labels and declarations - Self-declared environ-
mental claims (Type II environmental labelling) (ISO 14021:2016 + Amd 1:2021); German ver-
sion EN ISO 14021:2016 + A1:2021.
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Well-to-wheel
The well-to-wheel method takes into account the entire impact
chain behind vehicle motion – from the generation and supply of
drivetrain power to its conversion into energy. This approach also
includes the environmental impacts associated with the genera-
tion of fuel and electricity. For example, the BMW Group uses the
current energy report from the International Energy Agency (IEA)
(reference basis: previous year) as the basis for calculating emis-
sions from electrified vehicles (provision of electrical energy). The
approach can be divided into the following two components:
The well-to-tank method takes into account the carbon emis-
sions from the supply chain as well as the upstream fuel supply
from the oil well or the energy generation source. As such, this
approach considers the causal chain that arises until the energy
is supplied to the vehicle, but does not include the vehicle itself.
By contrast, the tank-to-wheel method takes into account the
chain of effects from the absorption of energy consumed (fuel,
electricity) to its conversion into kinetic energy by the vehicle. As
such, this approach considers the impact chain that arises during
the use of the vehicle.
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SOCIAL INFORMATION
A
Accident frequency rate
↗ Number and rate of recordable work-related accidents
Apprentices
People who complete a multi-year vocational training pro-
gramme at a BMW Group company that includes practical and
theoretical stages.
Assistants
People with a temporary contract at a BMW Group company
working as temporary assistants for a contractually agreed, lim-
ited number of hours.
Authors of theses
Persons with a temporary contract who are writing a student re-
search project at a BMW Group company during their study. This
can also be a final-year thesis.
Average number of hours of training and further education
per employee
The average number of hours of training and further education
per employee is calculated on the basis of the total number of
training hours in the reporting year in relation to the average
number of employees in each month of the BMW Group in the
reporting year. The training hours taken into account include all
training and qualification measures carried out, including e-
learning.
B
BMW Group employees
The definition of BMW Group employees includes the number of
all persons with temporary or permanent employment contracts
at the BMW Group as at 31 December of the reporting year. The
figure does not include employees in the inactive early retirement
phase, women on maternity leave, employees who are absent
for reasons including sabbaticals, parental or family care leave,
long-term sick leave, military service or accompanying their part-
ner abroad, other BMW Group employees and temporary agency
workers.
BMW Safety Compact Training
In half a day, the BMW Safety Compact Training course gives
customers the confidence they need to enjoy everyday driving.
Under the guidance of experienced instructors, the course ena-
bles customers to feel more confident in handling their Automo-
bile.
BMW Safety Training
BMW Safety Training helps customers to react calmly in unex-
pected situations and to continue driving in a relaxed manner.
Experienced instructors guide participants through various exer-
cises in emergency and targeted braking, dynamic lane changes,
and understeering and oversteering.
C
CarData
CarData is an IT platform providing vehicle data to both private
and business customers, in particular to fulfil the requirements of
the GDPR (General Data Protection Regulation) and, in the fu-
ture, the EU Data Act. In this context, the BMW Group does not
pursue any business models that go beyond the legal require-
ments ↗ CarData.
Customer data breach
A customer data breach is an incident in which unauthorised third
parties gain access to sensitive customer data, or that data is
compromised or stolen.
Customer Data Delegate (CDD)
The Customer Data Delegate (CDD) is a central role within the
BMW Group that is responsible for the management and protec-
tion of customer data. The CDD acts as a point of contact for all
topics related to customer data governance and ensures that
measures for the secure and legally compliant handling of
customer data are implemented in the respective organisational
department.
Customer Interaction Centre (CIC)
A Customer Interaction Centre (CIC) serves as a central point of
contact for customer interaction and support for the BMW Group.
It enables the Company to coordinate and process customer re-
quests via various contact options, such as by telephone, email
or chat.
Customer Trust
Customer Trust is a central component of the BMW Group's cor-
porate culture and forms the basis for long-term customer rela-
tionships by ensuring security, reliability and integrity in interac-
tions ↗ BMW Group Code of Conduct.
D
Direct suppliers (Tier 1 suppliers)
Suppliers of products or services whose delivery is necessary for
the manufacture of our products and provision of our services,
and who maintain a direct contractual relationship with entities
of the BMW Group for the delivery and/or provision of services.
Distribution of employees by age group
The distribution of employees by age group in percentage terms
is calculated as the number of employees in the respective age
group in relation to the total number of employees as at 31 De-
cember of the reporting year.
Dual study students
People with a temporary contract who are combining a degree
programme with practical training/internships at a BMW Group
company.
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E
Employees accompanying partners abroad
Family members/partners who accompany their partner on an
international assignment if the family member/partner is also
employed by the BMW Group.
Employees by contract type and gender
The number of employees by contract type and gender is rec-
orded as at 31 December of the reporting year. Gender identities
are defined in line with the ESRS. In addition to the temporary
and permanent contract types, non-guaranteed hours employ-
ees are also reported in accordance with ESRS. This type of con-
tract is not used by the BMW Group.
Employees by contract type and geographical area
The number of employees by contract type and geographical
area is recorded in terms of the number of individuals as at
31 December of the reporting year. In addition to the temporary
and permanent contract types, non-guaranteed hours employ-
ees are also reported in accordance with ESRS. This type of con-
tract is not used by the BMW Group. The breakdown by geo-
graphical area is based on the division into six continents as de-
fined by the United Nations.
Employees by geographical area and country
The number of employees is recorded as at 31 December of the
reporting year. The breakdown by geographical area is based on
the division into six continents as defined by the United Nations.
Countries in which the headcount is at least 50 employees, rep-
resenting at least 10% of the Company’s total number of em-
ployees, are reported separately. For the BMW Group, these are
Germany and China in the reporting year.
Employees covered by collective bargaining agreements
This metric is an additional disclosure based on SASB, TR-AU-
310a.1. The percentage of employees covered by collective bar-
gaining agreements is calculated as the ratio of the number of
employees covered by collective bargaining agreements to the
number of employees as at 31 December of the reporting year.
Employees in the inactive early retirement phase
BMW Group employees who take advantage of the option of re-
tirement via the Company’s partial retirement working arrange-
ment and are in the phase of the scheme in which they no longer
work for the BMW Group.
Expatriates
Expatriates are employees who are temporarily sent by the
BMW Group to another country to fulfil a task there. These em-
ployees establish their primary residence in the destination coun-
try. The foreign assignment is usually limited in time, after which
the employee returns to the original place of work.
G
Gender distribution at the management level in number and
percentage
The gender distribution in management positions in percent is
calculated on the basis of the sum of employees in management
positions for each gender identity in relation to the total number
of employees in management positions as at 31 December of
the reporting year. Gender identities are defined in line with the
ESRS. In the BMW Group, management positions are those at
hierarchical functional levels I to IV below the Board of Manage-
ment.
Gender pay gap
According to the ESRS, the unadjusted gender pay gap between
female and male employees is calculated on the basis of average
gross hourly pay level. This is calculated on the basis of the sum
of the gross annual income as stated in the employee’s payslip
(including bonus payments, commissions, additional non-recur-
ring payments), Company car as a benefit, employer’s contribu-
tion to the Company pension and health insurance, divided by
the annual paid working hours less unpaid absences, on average
for all male and female BMW Group employees. Expatriates are
not taken into account.
The unadjusted gender pay gap is first calculated locally for each
company or location using the following formula:
Gender
Pay
Gap
=
Average gross
hourly pay level of
male employees
-
Average gross
hourly pay level of
female employees
×
100
Average gross hourly pay level of
male employees
To determine the total BMW Group gap, the weighted average of
the location gaps is calculated based on the number of male and
female employees as at 31 December of the reporting year. This
approach takes into account a fair consideration of different
wage levels and avoids annual volatility due to exchange rate
changes or varying purchasing power adjustments in countries
with high inflation.
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I
Identifiers
Identifiers are specific characteristics or data points that are used
to clearly identify a person or object and distinguish them from
others. In data processing, identifiers can take various forms,
such as names, telephone numbers or e-mail addresses.
Incident management
↗ Incident response procedure
Incident response procedure
The BMW Group's incident response procedure is a structured
approach to identifying, assessing and responding to security in-
cidents in order to minimise potential damage and ensure the in-
tegrity of IT systems.
Indirect suppliers (N-tier suppliers)
Suppliers who do not maintain a direct contractual relationship
with entities of the BMW Group, but whose deliverables are also
necessary for the manufacture of our products and provision of
our services.
Information Security Management System (ISMS)
The BMW Group’s information security management system
(ISMS) is a comprehensive framework. Its objective is to protect
the confidentiality, integrity and availability of information within
the Company. It is based on the international ISO/IEC 27001
standard and integrates specific requirements and best practices
from the automotive industry to meet the increasing threats and
regulatory requirements.
Interns
Persons who complete a mandatory or voluntary internship at
the BMW Group as part of their studies. They are usually enrolled
at a university.
Investment in vocational training and further education
This key figure comprises all costs incurred in the BMW Group
currency in the reporting year for vocational training within the
subsidiaries of the BMW Group (excluding Spotlight Automotive
Ltd). This extends to personnel costs for trainers and apprentices
as well as other costs and investments related to vocational
training. The investments in further training are calculated for all
consolidated subsidiaries of the BMW Group. This includes prep-
aration and implementation costs, opportunity costs and invest-
ments made in order to provide such further education. These
costs also include notional depreciation, measured on the basis
of inventory lists. The target is defined as absolute in accordance
with ESRS.
J
Journalist trainee
People with a temporary contract at a BMW Group company who
have recently completed a university degree (usually in commu-
nications or politics) and have two years of practical experience
in the field of corporate communications and politics.
N
Non-guaranteed hours employees
In addition to temporary and permanent contracts, metrics in the
tables on BMW Group employees also show non-guaranteed
hours employees in accordance with ESRS. This type of contract
is not used by the BMW Group. According to ESRS S1-6, non-
guaranteed hours employees are employed by the company
without a guarantee of a minimum or fixed number of working
hours. The employee may need to make themselves available for
work as required, but the company is not contractually obliged to
offer the employee a minimum or fixed number of working hours
per day, week, or month. This category includes for example cas-
ual employees, employees with zero-hour contracts and on-call
workers.
Number and rate of recordable work-related accidents
The accident frequency rate is calculated based on the total
number of accidents in the reporting year per million hours
worked. Accidents are only included in the total if they result in at
least one day of absence. This includes work-related accidents
in the employee’s own household (accidents in the home office).
Accidents that occur on the way to or from work are not included.
The analysis covers accidents involving BMW Group employees,
other BMW Group employees and temporary agency workers.
Occupational accidents refer to work-related accidents as speci-
fied by ESRS.
The metric includes Spotlight Automotive Ltd. with a share of
100%.
Number of closure assessments (in which the mitigation of
non-conformities was confirmed)
This metric refers to the closure assessments carried out at
BMW Group supplier locations that are directly linked to a previ-
ous initial on-site assessment. For all findings categorised as se-
rious during an initial assessment (for details see ↗ Number of
supplier assessments), the effectiveness of the agreed measures is
reviewed on-site as part of a closure assessment. This metric
considers the total number of closure assessments carried out in
the reporting year and the subset of these for which it was pos-
sible to confirm that the agreed measures had been successfully
implemented by the supplier location.
The metric is based on GRI 308-2 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
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Number of employees who have left the BMW Group and
rate of employee turnover
The turnover rate is based on the number of employees leaving
the Company in the reporting year in relation to the average num-
ber of employees in each month (annual value as a percentage).
Reasons for leaving include, in particular, resignations by em-
ployees and dismissals by employers, resignations by mutual
agreement (including ↗ Employees in the inactive early retirement phase)
and natural turnover due to retirement or death.
Number of fatalities as a result of work-related
injuries/accidents and work-related ill health
This metric covers all occupational accidents resulting in fatalities
suffered by BMW Group employees and other BMW Group em-
ployees, temporary agency workers and external workers work-
ing on BMW Group’s sites. Occupational accidents refer to work-
related accidents as specified by ESRS. This includes deaths due
to work-related accidents in the employee’s own household (ac-
cidents in the home office). Deaths that occur on the way to or
from work are not included. An accident is defined as a tempo-
rary event caused by an external influence that results in injury,
damage to health or death. Only accidents that occur on
BMW Group premises, or in the home office while performing an
activity in the interest of the employer which result in death, are
counted. The BMW Group’s “communication instruction” and its
health and safety policy ensure that the relevant people are in-
formed in the event of an accident resulting in death. This in-
cludes the occupational health and safety management officer
as the responsible point of contact.
Deaths resulting from work-related illnesses are included in this
figure. They include fatal health disorders for which a company
has been held responsible and successfully sued following a final
court ruling. This presupposes that an official investigation has
shown that the fatal illness or death is causally linked to the Com-
pany's working conditions.
The metric includes Spotlight Automotive Ltd. with a share of
100%.
Number of (justified) notifications that could be clarified
during the reporting year
This metric is a subset of the reported information in ↗ Number of
notifications of potential sustainability violations in the supply chain. The met-
ric includes all cases that were opened and closed during the re-
porting year.
The metric consists of two sub-indicators:
—
#1: Number of indications of potential violations that could
be clarified during the reporting year
—
#2: Number of justified notifications that were clarified dur-
ing the reporting year
Clarified means that the internal investigation has been finalised
and the case is closed in the case management system. A case
can be closed if the investigation has revealed that a case is un-
justified or, if the identified violation has been shown to be justi-
fied, it has already been remedied. Both scenarios lead to an in-
tegration of the cases into sub-indicator #1.
The subset of cases that can be assigned to the latter scenario
are also included in sub-indicator #2. The BMW Group carries
out a plausibility check to process the information received. If a
case turns out to be justified, a plan for elimination of the identi-
fied deficit is developed together with the supplier. Finally, the
conclusion of these cases is preceded by an individual assess-
ment by the BMW Group of the successful implementation of
measures by the supplier concerned. After the measures have
been implemented, the case is closed, archived, and docu-
mented in the case management system. The definition of justi-
fied cases is based, among other things, on the German Supply
Chain Due Diligence Act (LkSG) and the criteria for appropriate-
ness defined therein (severity, ability to influence, probability of
occurrence).
The metric is based on GRI 308-2 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Number of notifications of potential sustainability violations
in the supply chain
This metric includes the number of notifications of potential vio-
lations of our sustainability principles in the supply chain that
have been received through the BMW Group reporting channels.
It includes all notifications on suppliers along the entire supply
chain of all entities of BMW Group that were entered into the
Group-wide electronic case management system during the fi-
nancial year. The reference date for the period cut-off is therefore
the date on which a case was entered into the system.
The metric includes all personal notifications. Personal notifica-
tions are usually made through the following sources:
BMW Group SpeakUp Line, BMW Group Compliance Contact, lo-
cal Compliance Offices, Ombuds Office, BMW Group Human
Rights Contact Supply Chain, RBA Voices Complaint Mechanism,
internal and external letters to the Board of Management/exec-
utives, as well as other personal notifications to BMW Group
units and departments.
In addition, non-personal notifications, for example from media
reports, are entered into the case management system and are
thus included in the metric, provided that they are substantiated
following an initial review.
The metric is based on GRI 308-2 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
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Sustainability Statement
Number of supplier assessments
This metric includes the total number of on-site assessments
carried out at BMW Group supplier sites with a start date within
the reporting year. This includes on-site assessments of direct
suppliers and their surrounding facilities such as dormitories,
canteens and warehouses. Remote assessments and certifica-
tion audits such as ISO 14001, ISO 45001, ISO 50001 and sim-
ilar, which have been paid for by the supplier, are not included in
this metric. The number of assessments refers to initial assess-
ments (first assessments) and follow-up assessments (assess-
ments shortly before the certification expires). Closure assess-
ments (second assessments after initial auditing for successful
completion of certification), which are directly linked to an initial
assessment to provide evidence of corrective action for possible
deviations, are not included in the metric. The on-site assess-
ments are largely carried out in accordance with the standards of
RBA-VAP (Validated Assessment Program of the Responsible
Business Alliance) and VDA-RSCI (Responsible Supply Chain In-
itiative of the German Association of the Automotive Industry).
These assessments are carried out on behalf of the BMW Group
by external audit companies approved by the standard setter,
such as TÜV Rheinland, Intertek, SGS, Elevate, DNV, etc., in ac-
cordance with the requirements of the standards mentioned and,
in addition, by BMW Group sustainability experts for quality as-
surance purposes. The number and results of the assessments
are documented in a database of the standard-setting organisa-
tions and transmitted to the IT systems of the BMW Group via an
interface.
The metric is based on GRI 308-1, 308-2, 414-1 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Number of supplier locations assessed with self-
assessment questionnaire
The metric includes all sustainability questionnaires completed
by supplier locations (also referred to below as the online assess-
ment) that the BMW Group obtained and evaluated during the
reporting year. Both active and potential (new) supplier locations
from all purchasing areas of the BMW Group are taken into ac-
count.
The online assessments, which are based on the Drive Sustain-
ability initiative's industry-wide sustainability questionnaire, are
used as part of the awarding process. This is required for the pur-
chase of production-related material with a contract value of
more than €2 million. A risk-based analysis is carried out for non-
production-related purchasing processes, which currently in-
cludes all orders that are potentially exposed to a risk based on
the abstract risk analysis, and which have a master agreement
volume of over €2 million or an individual agreement volume of
over €10 million.
This metric only includes online assessments that were fully
completed by the supplier location, validated by an external ser-
vice provider and sent to the BMW Group for assessment via an
interface. Each supplier location is counted based on its site-spe-
cific online assessment, regardless of the number of times its as-
sessment was revised during the reporting year. This metric pri-
marily refers to all new questionnaires requested by the
BMW Group within the reporting year. Since the right to view a
questionnaire on the external service provider’s platform can
only be purchased for a period of twelve months, any question-
naires that are still required during the reporting year are also
added to the newly requested questionnaires.
The basis for the calculation of the total number of online assess-
ments in the reporting year are the monthly overviews of the ex-
ternal service provider’s invoices, which are provided on its plat-
form.
The metric is based on GRI 308-1, 308-2, 414-1 and 414-2.
The indicator includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Number of supplier relationships terminated due to severe
sustainability violations
This metric refers to all supplier relationships that were termi-
nated in the reporting year due to severe sustainability violations.
Only supplier locations with a clearly defined supplier ID that
were escalated due to severe sustainability violations and that
resulted in a suspension or temporary suspension of the respec-
tive supplier relationship are counted. This includes cases in
which the sustainability violations were identified and escalated
prior to the reporting year, but in which termination of the supplier
relationship was only initiated during the reporting year. Escala-
tion can, for example, be initiated on an event-driven basis in the
case of incidents with legitimate criticality (predefined "escalation
criteria" based, among other things, on the German Supply Chain
Due Diligence Act, LkSG), which are handled as part of the sup-
plier escalation process (ESPRO). This process is standardised
across the entire BMW Group and includes sustainability-related
criteria.
The metric is based on GRI 308-2 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Number of vehicles recalled
This metric is an additional disclosure based on SASB, TR-AU-
250a.3. The metric represents the total number of vehicles re-
called due to safety- and compliance-related technical
measures.
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Sustainability Statement
Number of work stoppages
This metric is an additional disclosure based on SASB, TR-AU-
310a.2. The BMW Group discloses the number of work stop-
pages (strikes and lockouts) that affected more than 1,000 em-
ployees and lasted an entire shift or longer. The length of a shift
varies depending on the type of shift and location, but usually co-
vers the daily working hours of a full-time employee. If a trigger
(e.g. a collective agreement negotiation) leads to several events
at different times, this is evaluated as one work stoppage based
on the same cause.
O
Other BMW Group employees
This includes apprentices, dual students, interns, authors of the-
ses, post-graduate students, scholarship holders, assistants,
working students and (journalist) trainees.
P
Parental leave
Parental leave is a period of absence from work granted to an
employee of the BMW Group before and/or after the birth of a
child or in the case of adoption, usually on the basis of national
legal regulations.
People on long-term sick leave
BMW Group employees who are absent due to illness for an ex-
tended period of time. According to the country-specific defini-
tions, the employee is no longer counted as an employee of the
BMW Group, but is expected to return to work after recovery.
Percentage of all employees who have participated in
regular performance and career development reviews
The percentage of employees who have received an annual per-
formance and career development assessment is calculated by
dividing the number of annual performance and career develop-
ment assessments conducted by the number of employees as at
31 December of the reporting year. The calculation broken down
by gender is calculated in the same way. Gender identities are
defined in line with the ESRS. Only the regular annual
performance and career development assessment agreed with
management and carried out by 31 December of the reporting
year is counted. Every employee who has been employed by the
BMW Group for at least six months during the assessment period
and is present when this process is applied in the respective
BMW Group company is entitled to it. If an individual has received
two assessments, for example due to a change of position or an
extraordinary interim assessment, only one per employee is
taken into account. In the international environment, team as-
sessments rather than individual assessments are common in
the production sector. These are not included in the indicator.
Percentage of employees in the European Economic Area
(EEA) covered by employee representation
The percentage is calculated as the number of employees who
have employee representation, divided by the number of all em-
ployees as at 31 December of the reporting year. Only employ-
ees who work in a country in the European Economic Area (EEA)
are considered. Reporting covers those EEA countries in which
BMW Group has significant employment, defined as at least 50
employees by head count representing at least 10% of its total
number of employees.
Percentage of employees who are covered by an
occupational health and safety management system
All BMW Group locations have an occupational health and safety
management system that is based on the globally applicable
ISO 45001 standard and the internal regulations of the
BMW Group’s occupational health and safety policy. Occupa-
tional health and safety management systems are in place at all
production sites and certified in accordance with this standard or
OHRIS, which is based on ISO 45001. This means that 100%
of BMW Group employees, other BMW Group employees and
temporary agency workers in the BMW Group work at a location
that has an occupational health and safety management system.
The metric includes Spotlight Automotive Ltd. with a share of
100%.
Percentage of safety and compliance problems investigated
This metric is an additional disclosure based on SASB, TR-AU-
250a.2 (2). The percentage of investigated safety and
compliance
problems
covers
all
technical
problems
in
BMW Group vehicles that are recorded as safety and/or compli-
ance-relevant in the internal problem management process. The
data are recorded by defined sensors that continuously analyse
relevant data from vehicles in series production and report any
anomalies. The number of problems that were processed in the
reporting year is compared with the total number of problems
recorded in the reporting year.
Percentage of vehicle models rated by NCAP programmes
with an overall safety rating of 5 stars by region
The metric is an additional figure based on SASB, TR-AU-
250a.1. The BMW Group reports the percentage of vehicle mod-
els by region that have received an overall safety rating of 5 stars
from NCAP programmes. The BMW Group focuses its reporting
on Europe, China, the USA and Korea. The percentage is calcu-
lated as the number of vehicle models rated by an NCAP pro-
gramme with an overall rating of 5 stars divided by the total num-
ber of vehicle models rated by an NCAP programme. The New
Car Assessment Programmes (NCAP) are assessments of the
safety level of a vehicle model by independent consumer protec-
tion organisations. The ratings shown are valid until the end of
the reporting year. The report lists models that will be produced
until the end of the reporting year.
Postgraduate students
People with a temporary contract at a BMW Group company who
are studying at a university and are working on their dissertation.
Privacy by Design
Privacy by Design is a concept that aims to integrate data pro-
tection and privacy into the development of products, services
and business processes from the very beginning. It is based on
the assumption that data protection should not be seen as an
afterthought, but as a fundamental element that must be built
into all phases of the life cycle of a system or application.
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Sustainability Statement
R
Raw materials supplier
A raw materials supplier is an economic operator in the raw ma-
terial supply chain.
Raw materials supply chain
All activities and processes in the raw material value chain up to
the point at which a raw material is used as input to produce ma-
terials, intermediate or final products.
S
Sabbatical
BMW Group employees who use the option to take an employee-
financed leave of absence for a specified period of time.
Scholarship holders
Persons with a temporary contract at a BMW Group company
who either regularly gain practical experience in the same
BMW Group company during their studies or who are completing
a trainee programme.
Share of employees with severe disabilities at BMW AG
The share of severely disabled employees is a special feature of
German legislation in accordance with Volume IX of the German
Social Code (SGB IX) and is to be determined for BMW AG with
all its German company locations and units.
In accordance with legal requirements, the share of severely dis-
abled employees is calculated from the ratio of the total number
of jobs at BMW AG to the number of mandatory jobs filled and is
expressed as a percentage. According to § 154 SGB IX, compa-
nies with more than 20 jobs must staff at least 5% of them with
severely disabled persons or persons with equivalent status.
People with a degree of disability of at least 50% are considered
severely disabled.
Further information on the calculation can be found in the Ger-
man legislation according to SGB IX. Exceptions to the total and
compulsory jobs defined in SGB IX can be viewed at the employ-
ment agency.
Share of suppliers of production-related material with
implemented or agreed preventive measures at the time of
awarding
The metric consists of two sub-indicators:
—
#1: Share of suppliers of production-related materials (di-
rect suppliers) who had already implemented preventive
measures at the time of awarding in the respective reporting
year
—
#2: Share of suppliers of production-related materials (di-
rect suppliers) with whom agreements on preventive
measures have been made in the respective reporting year
By signing a contract with the BMW Group, direct suppliers un-
dertake to implement, expand or continue the necessary preven-
tive or remediation and control measures by an agreed target
date. The measures, which are queried, validated and evaluated
as part of the procurement process using the Drive Sustainability
online assessment, serve to minimise potential risks or to elimi-
nate any deficiencies. For more details on the online assess-
ment, see the metric ↗ Number of supplier locations assessed with self-
assessment questionnaire.
This online assessment, which is validated by an external service
provider, is assessed in the BMW Group system with regard to
the minimum requirements defined by the BMW Group for sup-
plier sites along the entire global value chain. The metric is based
on supplier sites that were awarded a contract in the reporting
year. Each supplier's site is only counted once, regardless of the
number of times its online assessment was revised during the
reporting year.
If all measures that fulfil the minimum requirements of the BMW
Group have already been taken at a supplier site, the status is set
to "green" and it is included in sub-indicator #1.
If a supplier site and the purchasing department have agreed on
a date for implementing the necessary preventive measures as
part of the awarding process, the status is set to “yellow” and
included in sub-indicator #2.
The metric is based on GRI 308-1, 308-2, 414-1 and 414-2.
The metric includes no information on the supply chain of the
Chinese joint operation Spotlight Automotive Ltd., as the
BMW Group does not have this information for the reporting
year. The BMW Group supports Spotlight Automotive Ltd. with
the implementation and further development of management
approaches and reporting structures on due diligence obligations
in the supply chain.
Share of women in management positions
The BMW Group's strategic goal for women in management po-
sitions is both an absolute and a relative target according to
ESRS and is calculated in line with ↗ Gender distribution at the
management level in number and percentage.
226
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Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
T
Temporary agency workers
Temporary agency work is where a worker is employed by a tem-
porary work agency, and then hired out to perform his/her work
at and under the supervision and direction of the user company.
There is considered to be no employment relationship between
the temporary agency worker and the user company, although
there could be legal obligations of the user company towards the
temporary agency worker, especially with respect to health and
safety. The relevant labour contract is of limited or unspecified
duration with no guarantee of continuation. The user company
pays fees to the agency, and the agency pays the wages.
Total number of days idle
This metric is an additional disclosure based on SASB, TR-AU-
310a.2. The BMW Group reports on the total number of idle days
resulting from work stoppages (including strikes and lockouts).
This metric is calculated by multiplying the number of employees
affected by each work interruption by the duration of the respec-
tive interruption in days, and then adding up these results.
Turnover rate
↗ Number of employees who have left the BMW Group and rate of employee
turnover
W
Women on maternity leave
Maternity leave is a period of leave from work granted to an em-
ployee of the BMW Group before and/or after the birth of a child
or in the case of adoption, usually on the basis of national legal
regulations.
Working students
People with a temporary contract working at a BMW Group com-
pany during their studies for a contractually agreed, limited num-
ber of hours.
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Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
GOVERNANCE INFORMATION
P
Political contributions
In addition to financial benefits, political contributions include
benefits in kind. The conversion of the respective benefit in kind
is carried out as part of an equivalency calculation under the re-
sponsibility of the department providing the benefit and, if appli-
cable, the responsible divisional controlling department. The
Purchasing division is also included above a materiality threshold
of € 20,000.
Political contributions are recorded by means of a Group-wide
IT-supported enquiry. The feedback is analysed by the respon-
sible office, checked for plausibility, and broken down by type of
recipient. The reported metric includes all contributions above a
materiality threshold of € 2,000 per recipient.
The BMW Group made political contributions to the following re-
cipient groups in the reporting year:
—
Dialogue events: sponsoring of political events for collabo-
ration and exchange purposes
—
Collaborations: sponsoring of reciprocal businesses (for ad-
vertising purposes) or lectures by representatives of the
BMW Group
T
Training rate of high-risk functions in relation to anti-
corruption
The 30-minute Compliance Essentials online training course pri-
marily teaches the basics of corruption prevention using explan-
atory case studies and test questions. Information on the prohi-
bition of corruption and bribery, including the prohibition of brib-
ery of public officials and the prohibition of bribery and corrupti-
bility in business dealings (active and passive), is presented us-
ing specific examples.
With regard to corruption and bribery, from the BMW Group's
perspective, those employees who are engaged in indirect activ-
ities are potentially particularly relevant from a risk perspective.
Indirect activities include activities that do not primarily serve the
manufacture of products. However, the group of people affected
also includes senior employees from the direct areas, such as
supervisors or “Meister” (master craftsmen). The rate is calcu-
lated on the basis of the number of persons with a valid training
certificate in relation to the number of persons assigned to com-
plete the training.
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
LIST OF MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
E1
By emitting greenhouse gas emissions worldwide through upstream processes, sourcing and procuring raw material, products and services for the produc-
tion, development and offering of its own products and services (Scope 3, Upstream), the BMW Group contributes to climate change.
Negative Impact
Short term
ESRS/ESD
Climate change
mitigation
E1
The BMW Group emits greenhouse gas emissions (GHG) worldwide through processes in own operations (Scope 1 and 2) and thus contribute to climate
change.
Negative Impact
Short term
ESRS/ESD
Climate change
mitigation
E1
By emitting greenhouse gas emissions worldwide through downstream processes, mainly through use of sold products (Scope 3 downstream), BMW Group
contributes to climate change.
Negative Impact
Short term
ESRS
Climate change
mitigation
E1
Worldwide adaptation efforts by the BMW Group may require (disruptive) adjustments to the supply chain with negative effects on suppliers or local com-
munities.
Negative Impact
Short term
ESRS
Climate change
mitigation
E1
Globally, the network of sales partners consumes energy - and thereby uses natural resources and contributes to climate change.
Negative Impact
Mid term
ESRS
Energy
E1
Globally, the network of supplier locations consumes energy - and thereby uses natural resources and contributes to climate change.
Negative Impact
Short term
ESRS/ESD
Energy
E1
By offering battery electric, hydrogen and plug-in hybrid electric vehicles, the BMW Group enables the society to more environmentally friendly alternatives
to traditional combustion engines (use of electricity from renewable sources implied).
Positive Impact
Short term
ESRS
Climate change
mitigation
E1
Concluding power purchase agreements support the development of more renewable energy capacity and saving resources and emissions.
Positive Impact
Mid term
ESRS
Energy
E1
Risk through increased competition in the field of electrified vehicles.
Risk
Short term
ESRS
Climate change
mitigation
E1
New or changing worldwide government regulation including carbon tax could require to adjust operations in the supply chain (increasing costs).
Risk
Mid term
ESRS
Climate change
mitigation
E1
Reputational risks can arise if the BMW Group fails to adhere to stakeholders expectations regarding the reduction of CO2e emissions in the supply chain.
Risk
Mid term
ESRS/ESD
Climate change
mitigation
E1
The currently very ambitious fleet legislation, which may become more stringent in some markets, can only be met with high additional marketing costs
given weaker EV demand.
Risk
Mid term
ESRS
Climate change
mitigation
E1
New or changing worldwide government regulations on energy use could require to adjust operations in the supply chain.
Risk
Short term
ESRS
Energy
E1
Risk of limitations in the use of certain energy sources due to regulatory restrictions, which may confine their application to specific sectors or require physi-
cal delivery. As a result of these limitations some energy sources cannot be used for emission reduction measures.
Risk
Short term
ESRS
Energy
E1
Catena-X provides standardized calculation methods and exchange formats for scope 3 upstream GHG emissions. This allows the BMW Group to report
comparable emissions along the actual supply chain in order to better identify reduction potentials and to define targeted reduction measures with suppli-
ers.
Opportunity
Mid term
ESRS
Climate change
mitigation
E1
Ambitiously reducing CO2e emissions (Scope 3 downstream, e.g. by high efficient combustion engines and production of BEVs/PHEVs) can increase the
market share in the customer segment of environmentally conscious buyers.
Opportunity
Mid term
ESRS
Climate change
mitigation
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Combined Management Report
Group Financial Statements
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Remuneration Report
Other Information
Sustainability Statement
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
E2
Local pollution of water through unplanned discharges of polluting substances (e.g. leaks) at suppliers' production sites.
Negative Impact
Short term
ESRS/ESD
Pollution of water
E2
Local pollution of soil through unplanned discharges of polluting substances (e.g. leaks) at suppliers' production sites.
Negative Impact
Short term
ESRS/ESD
Pollution of soil
E2
Contamination with microplastics due to tyre wear particles.
Negative Impact
Short term
ESRS
Microplastics
E2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with pollution of water.
Risk
Short term
ESRS/ESD
Pollution of water
E2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with pollution of water.
Risk
Long term
ESRS/ESD
Pollution of water
E2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with pollution of soil.
Risk
Short term
ESRS/ESD
Pollution of soil
E2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with pollution of soil.
Risk
Short term
ESRS/ESD
Pollution of soil
E3
Local water scarcity and threat to water supply due to high water intensity in production processes of suppliers and other preliminary products of BMW
Group.
Negative Impact
Mid term
ESRS/ESD
Water consumption
E3
Limiting the availability of water and/or harming the ecosystem through water withdrawals within the supply chain especially in areas of high-water stress.
Negative Impact
Mid term
ESRS/ESD
Water withdrawals
E3
New or changing worldwide government regulations regarding water consumption could require to adjust operations and therefore increase dependencies
and availability due to exclusion.
Risk
Mid term
ESRS
Water consumption
E3
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with water, specifically water consumption.
Risk
Long term
ESRS/ESD
Water consumption
E3
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with water, specifically water
consumption.
Risk
Short term
ESRS/ESD
Water consumption
E3
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with water, specifically water
withdrawals.
Risk
Mid term
ESRS/ESD
Water withdrawals
E4
Contribution to biodiversity loss through the direct exploitation and use of invasive resource extraction methods in the supply chain (clearing, building infra-
structure around (deep sea) mining and producing sites).
Negative Impact
Mid term
ESRS
Direct exploitation
E4
Usage of primary raw materials impacts nature and biodiversity in extraction areas (e.g. mining).
Negative Impact
Mid term
ESRS
Direct exploitation
E4
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with direct impact drivers of
biodiversity loss, specifically direct exploitation.
Risk
Mid term
ESRS
Direct exploitation
E4
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with direct impact drivers of biodiversity loss, specifically direct
exploitation.
Risk
Mid term
ESRS
Direct exploitation
E4
Opportunities and financial benefits from increasing the supply chain resilience with respect to direct impact drivers of biodiversity loss, specifically direct
exploitation, including independence from volatile markets or prevention of potentially supply-disrupting events.
Opportunity
Mid term
ESRS
Direct exploitation
230
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
E5
The use of non-renewable primary raw materials impacts worldwide depletion of natural resources as well as the nature and communities at the mining
location.
Negative Impact
Mid term
ESRS
Resources inflows,
including resource use
E5
Waste management of the increasing amounts of hazardous waste at tier-1 supplier sides (e.g. batteries) and incorrect disposal in the supply chain, includ-
ing e.g. battery and electronics production, imposes detrimental impacts of the environment and society.
Negative Impact
Short term
ESRS/ESD
Waste
E5
Circular economy business models and products slow down the usage of natural and limited resources and reduce landscape and habitat disruption.
Positive Impact
Short term
ESRS
Resource outflows
related to products and
services
E5
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with resources inflows, in-
cluding resource use.
Risk
Mid term
ESRS
Resources inflows,
including resource use
E5
Non-compliance regarding the usage of non-regenerable resources due to increasingly stringent regulations could lead to liabilities, penalties, fines, repu-
tational damage or the loss of licenses and permits for BMW Group.
Risk
Mid term
ESRS
Resources inflows,
including resource use
E5
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with resources inflows, including resource use.
Risk
Mid term
ESRS
Resources inflows,
including resource use
E5
New regulations could require BMW Group to design products which meet additional recyclability requirements (e.g. increased dismantling or restricting
choice of certain materials) or incorporate recycled materials which may be in short supply, leading to increased product costs.
Risk
Mid term
ESRS
Resource outflows
related to products and
services
E5
A product made without circular principles and with high embodied Carbon footprint of materials might lead to unfavourable market access, where regula-
tory requirements exist (for e.g. EU battery and End of Life Vehicle regulations).
Risk
Mid term
ESRS
Resource outflows
related to products and
services
E5
Financial opportunities and competitive advantages through innovation, research and development with respect to resources inflows, including resource
use.
Opportunity
Mid term
ESRS
Resources inflows,
including resource use
E5
Opportunities and financial benefits from increasing the supply chain resilience by direct purchasing of raw materials.
Opportunity
Mid term
ESRS
Resources inflows,
including resource use
E5
Possible policy instruments which favour use of low carbon footprint materials (carbon pricing) or favour recycled content (e.g. US IRA) could make the
products eligible for financial incentives.
Opportunity
Mid term
ESRS
Resource outflows
related to products and
services
S1
Workplace accidents resulting in physical injury reduce an employee's ability to live a fulfilling life, or may in worst cases be fatal.
Negative Impact
Short term
ESRS
Health and safety
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Combined Management Report
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Remuneration Report
Other Information
Sustainability Statement
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
S1
Secure employment for own workers provides financial stability, contributing to mental health and well-being to employees worldwide.
Positive Impact
Short term
ESRS
Secure employment
S1
Promoting social dialogue can foster satisfaction and cooperation among workers globally, as it provides employees with a platform and mechanism to
voice their concerns and share their ideas.
Positive Impact
Short term
ESRS/ESD
Social dialogue
S1
Emplaced preventive measures through health standards and offerings for the employees (e.g. sports offerings, health check-up) can improve the health
and safety of the employees.
Positive Impact
Short term
ESRS
Health and safety
S1
Increasing the proportion of women, particularly in management positions and including more women in networking activities, trainings, and mentoring
programs in the own workforce are important measures to promote diversity and inclusion within the company.
Positive Impact
Short term
ESRS
Gender equality and
equal pay for work of
equal value
S1
Training and skill development of employees worldwide enhances qualification, allows for professional growth and continued employability.
Positive Impact
Short term
ESRS/ESD
Training and skills
development
S1
Diversity measures (in the dimensions gender, age and experience, cultural background, sexual orientation and identity, physical and mental ability) lead to
a more diverse and inclusive work place and more integration worldwide.
Positive Impact
Mid term
ESRS/ESD
Diversity
S2
Inadequate working time impacts workers’ income, well-being and living conditions at tier-1 supplier locations.
Negative Impact
Long term
ESRS/ESD
Working time
S2
The non-existence of works councils and consultation impacts workers rights at n-tier suppliers - especially when supplier locations are based in countries
where such rights may be restricted in law and/or practice.
Negative Impact
Mid term
ESRS/ESD
Freedom of association,
including the existence of
work councils
S2
The non-existence of works councils and consultation impacts workers rights at tier-1 suppliers - especially when supplier locations are based in countries
where such rights may be restricted in law and/or practice.
Negative Impact
Mid term
ESRS/ESD
Freedom of association,
including the existence of
work councils
S2
Workplace accidents at tier-1 supplier locations resulting in physical injury reduces an employee ability to live a fulfilling life, or may in worst cases be fatal.
Negative Impact
Short term
ESRS/ESD
Health and safety
S2
The tier-1 suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise), may contribute to the development of chronic
diseases and impairments among employees worldwide, e.g. inadequate ergonomic considerations in the workstations.
Negative Impact
Mid term
ESRS/ESD
Health and safety
S2
Workplace accidents at n-tier supplier locations (exploitation of raw materials) resulting in physical injury reduces an employee ability to live a fulfilling life,
or may in worst cases be fatal.
Negative Impact
Short term
ESRS/ESD
Health and safety
S2
The n-tier suppliers' workplace conditions (incl. exposure to hazardous substances and excessive noise), may contribute to the development of chronic
diseases and impairments among employees worldwide, e.g. inadequate ergonomic considerations in the workstations.
Negative Impact
Long term
ESRS/ESD
Health and safety
S2
Violence, harassment (incl. inhumane treatment) and discrimination at the workplace affect the living and working conditions for employees at supplier
locations (tier-1).
Negative Impact
Short term
ESRS/ESD
Measures against vio-
lence and harassment in
the workplace
S2
The use of child labour at n-tier supplier locations deprives children of education and a normal childhood, perpetuates poverty and inequality, and increases
the likelihood of physical and emotional abuse.
Negative Impact
Short term
ESRS/ESD
Child labour
232
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To Our Stakeholders
Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Sustainability Statement
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
S2
Lack of free choice of employment affects living and working conditions of workers at tier-1 supplier locations worldwide.
Negative Impact
Short term
ESRS/ESD
Forced labour
S2
Lack of free choice of employment affects living and working conditions of workers at n-tier supplier locations worldwide.
Negative Impact
Short term
ESRS/ESD
Forced labour
S2
Providing training and capacity building impact the skills and capabilities of the workers at suppliers' locations.
Positive Impact
Mid term
ESRS
Training and skills
development
S2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working conditions, specifically working time.
Risk
Short term
ESRS/ESD
Working time
S2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with working conditions,
specifically working time.
Risk
Short term
ESRS/ESD
Working time
S2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with working conditions,
specifically freedom of association, including the existence of work councils.
Risk
Short term
ESRS/ESD
Freedom of association,
including the existence of
work councils
S2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working conditions, specifically freedom of association,
including the existence of work councils.
Risk
Short term
ESRS/ESD
Freedom of association,
including the existence of
work councils
S2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with working conditions,
specifically health and safety.
Risk
Short term
ESRS/ESD
Health and safety
S2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working conditions, specifically health and safety.
Risk
Short term
ESRS/ESD
Health and safety
S2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with working conditions,
specifically health and safety.
Risk
Short term
ESRS/ESD
Health and safety
S2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with working conditions, specifically health and safety.
Risk
Short term
ESRS/ESD
Health and safety
S2
Risk and financial effect due to reputational damage to BMW Group's brand value with respect to controversies in connection with other work-related
rights, specifically forced labour.
Risk
Short term
ESRS/ESD
Forced labour
S2
Risk of supply chain shortages and delays in the BMW Group's supply chain in connection with other work-related rights, specifically forced labour.
Risk
Short term
ESRS/ESD
Forced labour
S4
The IT infrastructure used in the BMW Group could negatively impact personal data security, e.g., through fraudulent use of personal data.
Negative Impact
Mid term
ESRS
Privacy
S4
By not providing transparency about data privacy practices (such as data collection, storage, use of customer data) and how consumers can protect their
data, customers could be prevented from making informed decisions and protecting their sensitive data.
Negative Impact
Mid term
ESRS
Privacy
S4
Information related to health & safety ensures that consumers can properly follow product and service instructions to safeguard their wellbeing.
Positive Impact
Mid term
ESRS
Access to (quality)
information
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Sustainability Statement
Topic
Material impacts, risks and opportunities
Type
Time horizon*
Stage of the
value chain
ESRS/ Entity
specific disclo-
sures (ESD)
Sub-sub-topic
S4
Access to information allows consumers to make informed decisions about products and services – both in terms of performance and durability of products
as well as for proper handling, such as environmental impacts during the use phase and end-of-life.
Positive Impact
Mid term
ESRS
Access to (quality)
information
S4
The BMW Group’s product portfolio can contribute to reduce risks to the health and safety of end-users, e.g. through security systems for drivers and other
road users.
Positive Impact
Mid term
ESRS/ESD
Health and safety
S4
BMW Group has a positive impact on health and safety of children when important security information and installations guidelines are made available to
the public.
Positive Impact
Mid term
ESRS
Protection of children
S4
Reputational risk in the event ofregular or extremely harmful accidents and risks caused by BMW Group products and services.
Risk
Long term
ESRS/ESD
Health and safety
S4
Reputational risk in case of incidents concerning personal data security of consumers and end-users.
Risk
Mid term
ESRS
Privacy
S4
Increase of satisfaction, loyalty, and trust of existing customers through well informed decisions and satisfaction with their purchase.
Opportunity
Mid term
ESRS
Access to (quality)
information
G1
Having a clear selection and communication of core values and beliefs for employees (e.g. the BMW Group Code of Conduct) and trainings in place avoids
negative environmental and social behaviour and strengthens the individual sense of responsibility of the employees, especially with regard to corruption
prevention.
Positive Impact
Mid term
ESRS
Prevention and detection
including training
G1
Participation in political decision-making in an extensive manner leads to reputational damage and negative publicity.
Risk
Mid term
ESRS
Political engagement
Upstream material Own Operations material Downstream material
* The specified time horizon indicates when the material impacts, risks and opportunities can be expected for the first time.
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LIST OF PHASED-IN DISCLOSURE REQUIREMENTS
ESRS
Disclosure Requirement
Full name of the Disclosure Requirement
Complete/ partial use
ESRS 2
SBM-1 paragraph 40b
Breakdown of total revenue by significant ESRS sector
Complete use
ESRS 2
SBM-1 paragraph 40c
List of additional significant ESRS sectors
Complete use
ESRS 2
SBM-1 paragraph 40e
Anticipated financial effects
Complete use
ESRS E1
E1-9
Anticipated financial effects from material physical and transition risks and potential climate-related opportunities
Complete use
ESRS E2
E2-6
Anticipated financial effects from pollution-related impacts, risks and opportunities
Complete use
ESRS E3
E3-5
Anticipated financial effects from water and marine resources-related impacts, risks and opportunities
Complete use
ESRS E4
E4-6
Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities
Complete use
ESRS E5
E5-6
Anticipated financial effects from resource use and circular economy-related impacts, risks and opportunities
Complete use
ESRS S1
S1-7
Characteristics of nonemployee workers in the undertaking’s own workforce
Complete phase-in for KPI, qualitative
information as early as reporting year 2024.
ESRS S1
S1-11
Social protection
Complete use
ESRS S1
S1-13
Training and skills development
Partial use for “breakdown by gender”
ESRS S1
S1-14
Health and safety
Partial use for “Work-related illnesses and the
number of days lost due to work-related
accidents and due to work-related fatalities,
injuries and illnesses”
LIST OF DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION
Disclosure Requirement and related datapoint
Material / Not material
Location
ESRS 2 GOV-1 (ESRS 2.21 (d)) Board's gender diversity
Material
↗ Supervisory Board – Componsation, diversity, expertise
↗ Board of Management - Duties, diversity, expertise
ESRS 2 GOV-1 (ESRS 2.21 (e)) Percentage of board members who are independent
Material
↗ Supervisory Board – Componsation, diversity, expertise
ESRS 2 GOV-4 (ESRS 2.30) Statement on due diligence
Material
↗ Statement on Due Diligence
ESRS 2 SBM-1 (ESRS 2.40 (d) i) Involvement in activities
related to fossil fuel activities
Not material
ESRS 2 SBM-1 (ESRS 2.40 (d) ii) Involvement in activities related to chemical production
Not material
ESRS 2 SBM-1 (ESRS 2.40 (d) iii) Involvement in activities related to controversial weapons
Not material
ESRS 2 SBM-1 (ESRS 2.40 (d) iv) Involvement in activities related to cultivation and production of tobacco
Not material
ESRS E1-1.14 Transition plan to reach climate neutrality by 2050
Material
↗ Transition plan to achieve Net Zero emissions by 2050
ESRS E1-1.16 (g) Undertakings excluded from Paris-aligned Benchmarks
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Disclosure Requirement and related datapoint
Material / Not material
Location
ESRS E1-4.34 GHG emission reduction targets
Material
↗ Path to achieving the CO2e reduction targets in 2030
ESRS E1-5.38 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)
Material
↗ Efficiency measures and energy mix
ESRS E1-5.37 Energy consumption and mix
Material
↗ Efficiency measures and energy mix
ESRS E1-5.40-43 Energy intensity associated with activities in high climate impact sectors
Material
↗ Efficiency measures and energy mix
ESRS E1-6.44 Gross Scope 1, 2, 3 and Total GHG emissions
Material
↗ Greenhouse gas emissions along the entire value chain
ESRS E1-6.53-55 Gross GHG emissions intensity
Material
↗ Greenhouse gas emissions along the entire value chain
ESRS E1-7.56 GHG removals and carbon credits
Material
↗ Preparing for Net Zero
ESRS E1-9.66 Exposure of the benchmark portfolio to climate-related physical risks
no application 2024
ESRS E1-9.66(a) Disaggregation of monetary amounts by acute and chronic physical risk
no application 2024
ESRS E1-9.66 (c) Location of significant assets at material physical risk
no application 2024
ESRS E1-9.67(c) Breakdown of the carrying value of its real estate assets by energy-efficiency classes
no application 2024
ESRS E1-9.69 Degree of exposure of the portfolio to climate- related opportunities
no application 2024
ESRS E2-4.28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register)
emitted to air, water and soil
Not material
ESRS E3-1.9 Water and marine resources
Material
↗ Due Diligence in the supplier network
↗ Responsible raw material management
ESRS E3-1.13 Dedicated policy
Material
↗ Water management and water protection
ESRS E3-1.14 Sustainable oceans and seas
Not material
ESRS E3-4.28(c) Total water recycled and reused
Material
↗ Measures to reduce water usage
ESRS E3-4.29 Total water consumption in m3 per net revenue on own operations
Material
↗ Measures to reduce water usage
ESRS 2- IRO 1 - E4.16(a)i
Material
↗ Commitment to protecting Biodiversity
ESRS 2- IRO 1 - E4.16(b)
Material
↗ Commitment to protecting Biodiversity
ESRS 2- IRO 1 - E4.16(c)
Material
↗ Commitment to protecting Biodiversity
ESRS E4-2.24(b) Sustainable land / agriculture practices or policies
Not material
ESRS E4-2.24(c) Sustainable oceans / seas practices or policies
Not material
ESRS E4-2.24(d) Policies to address deforestation
Material
↗ Measures to protect biodiversity
ESRS E5-5.37(d) Non-recycled waste
Not material
ESRS E5-5.39 Hazardous waste and radioactive waste
Not material
ESRS 2- SBM3 - S1.14(f) Risk of incidents of forced labour
Material
ESRS 2- SBM3 - S1.14(g) Risk of incidents of child labour
Material
ESRS S1-1.20 Human rights policy commitments
Material
↗ Basis for action
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Disclosure Requirement and related datapoint
Material / Not material
Location
ESRS S1-1.21 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8
Material
↗ Basis for action
ESRS S1-1.22 Processes and measures for preventing trafficking in human beings
Material
↗ Basis for action
ESRS S1-1.23 Workplace accident prevention policy or management system
Material
↗ Occupational health and safety management
ESRS S1-3.32(c) Grievance/complaints handling mechanisms
Material
↗ Basis for action
ESRS S1-14.88(b)&(c) Number of fatalities and number and rate of work-related accidents
Material
↗ Accident frequency
ESRS S1-14.88(e) Number of days lost to injuries,
accidents, fatalities or illness
no application 2024
ESRS S1-16.97(a) Unadjusted gender pay gap
Material
↗ Equal opportunities and equal pay for equal work
ESRS S1-16.97(b) Excessive CEO pay ratio
Not material
ESRS S1-17.103(a) Incidents of discrimination
Not material
ESRS S1-17.104(a) Non-respect of UNGPs on Business and Human Rights and OECD
Not material
ESRS 2- SBM3 – S2.11(b) Significant risk of child labour or forced labour in the value chain
Material
↗ Social and Environmental Responsibility in the Supplier Network
ESRS S2-1.17 Human rights policy commitments
Material
↗ Due Diligence in the supplier network
ESRS S2-1.18 Policies related to value chain workers
Material
↗ Due Diligence in the supplier network
ESRS S2-1.19 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines
Material
↗ Due Diligence in the supplier network
ESRS S2-1.19 Due diligence policies on issues addressed by the fundamental International Labor Organisation Conventions 1 to 8
Material
↗ Due Diligence in the supplier network
ESRS S2-4.36 Human rights issues and incidents connected to its upstream and downstream value chain
Material
↗ Complaints procedure
ESRS S3-1.16 Human rights policy commitments
Not material
ESRS S3-1.17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines
Not material
↗ Commitment to protecting Biodiversity
ESRS S3-4.36 Human rights issues and incidents
Not material
ESRS S4-1.16 Policies related to consumers and end-users
Material
↗ Characteristics of consumers and end-users
ESRS S4-1.17 Non-respect of UNGPs on Business and Human Rights and OECD guidelines
Material
↗ Characteristics of consumers and end-users
ESRS S4-4.35 Human rights issues and incidents
Material
↗ Characteristics of consumers and end-users
ESRS G1-1.10 (b) United Nations Convention against Corruption
Material
↗ Communicating internal regulations
ESRS G1-1.10(d) Protection of whistle blowers
Not material
ESRS G1-4.24(a) Fines for violation of anticorruption and anti-bribery laws
Not material
ESRS G1-4.24(b) Standards of anti- corruption and anti- bribery
Not material
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Sustainability Statement
ESRS-INDEX
In the ESRS index, references to the general part of the Management Report or the Group Financial Statements are denoted with the symbol ». All other references refer to the Sustainability Statement.
Mandatory discosures pursuant to ESRS
BMW Group Report 2024
General information
BP-1 – General basis for preparation of sustainability statements
↗ General Basis for Preparation of the Sustainability Statement
BP-2 – Disclosures in relation to specific circumstances
↗ General Basis for Preparation of the Sustainability Statement
↗ Glossary and Explanation of Key Figures
GOV-1 – The role of the administrative, management and supervisory bodies
↗ Supervisory Board - Composition, diversity, expertise
↗ Supervisory Board - Duties and committees
↗ Board of Management - Duties, diversity, expertise
GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies
↗ Supervisory Board - Duties and committees
↗ Board of Management - Duties, diversity, expertise
GOV-3 - Integration of sustainability-related performance in incentive schemes
↗ Remuneration of the Board of Management and Supervisory Board
GOV-4 - Statement on due diligence
↗ Statement on Due Diligence
GOV-5 - Risk management and internal controls over sustainability reporting
↗ Internal Control System for Sustainability Reporting
» Internal Control System
SBM-1.40a) i. – Significant groups of products and services
↗ Operating segments
» Segments
» Strategic approach – Where is the BMW Group heading?
» Course of Business and Segments
SBM-1.40a) ii. – Significant markets and customer groups
↗ Operating segments
» Segments
SBM-1.40a) iii. – Number of employees by geographic region
↗ Own workforce characteristics
SBM-1.40e)-g) – Disclosure on sustainability-related strategy and goals
↗ Strategic position - Sustainability-related goals
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
↗ Climate change Mitigation and Adoption
↗ Circular Economy and Resource Use
» The BMW Group Strategy
SBM-1.42a) – Inputs
↗ Business model and value chain
» The BMW Group Strategy
» Production Network
» Purchasing and Supplier Network
SBM-1.42b) – Outputs
↗ Business model and value chain
» The BMW Group Strategy
» Production Network
» Purchasing and Supplier Network
» Course of Business and Segments
» Earnings Performance of the BMW Group
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
SBM-1.42c) – Main features of the upstream and downstream value chain and the undertakings position in the
value chain
↗ Business model and value chain
↗ Measures for the responsible use of resources
» Organisation and Business Model
» The BMW Group Strategy
» Production Network
» Purchasing and Supplier Network
SBM-2 – Interests and views of stakeholders
↗ Stakeholder Engagement
SBM-3.48a – Descriptions of material impacts, risks and opportunities
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
↗ List of material Impacts, Risks and Opportunities
SBM-3.48b - Effects of material impacts, risks and opportunities on business model, value chain, strategy and
decision-making
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
» Environmental Analysis
» Position – What does the BMW Group stand for?
» Direction – What drives the BMW Group?
» Strategic approach – Where is the BMW Group heading?
» Collaboration – How does the BMW Group achieve this?
SBM-3.48c -Impacts - Effects on people, environment, time horizons and their connection to strategy, business
model and business relationships
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
↗ List of material Impacts, Risks and Opportunities
» Position - What does the BMW Group stand for?
» Strategic approach – Where is the BMW Group heading?
» Collaboration – How does the BMW Group achieve this?
SBM-3.48d – Current financial effects of material risks and opportunities
↗ Current financial effects of material risks and opportunities
» Earnings Performance of the BMW Group
SBM-3.48f – Resilience of strategy and business model
» Environmental Analysis
» Expanding resilient supply chains
» Risk management in purchasing
» Purchasing battery cells
» Digitalisation in the supply chain
SBM-3.48g – Changes to material impacts, risks and opportunities compared to the previous reporting period
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
SBM-3.48h – Impacts, risks and opportunities that are covered by entity-specific disclosures
↗ List of material Impacts, Risks and Opportunities
IRO-1 - Description of the processes to identify and assess material impacts, risks and opportunities
↗ Procedure and methodological basis for the materiality assessment
↗ Comparison with previous period and next review of results
IRO-2 – Disclosure requirements in ESRS covered by the undertaking’s sustainability statement
↗ Procedure and methodological basis for the materiality assessment
↗ List of Datapoints that derive from other EU Legislation
↗ ESRS-Index
ESRS E1 – Climate change
Disclosure requirement related to ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
↗ Remuneration of the Board of Management and Supervisory Board
E1-1 – Transition plan for climate change mitigation
↗ Transition plan to achieve Net Zero emissions by 2050
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction
with strategy and business model
↗ Climate-related impacts
↗ Procedure and methodological basis for climate-related risks and opportunities
↗ Physical climate risks
↗ Transitory climate risks and opportunities
↗ Climate resilience of the business model
Disclosure requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
↗ Physical climate risks
↗ Procedure and methodological basis for climate-related risks and opportunities
↗ Physical climate risks
↗ Transitory climate risks and opportunities
E1-2 – Policies related to climate change mitigation and adaptation
↗ Climate change mitigation and adaptation as a key part of the corporate strategy
E1-3 – Actions and resources in relation to climate change policies
↗ Implemented actions and metrics for a holistic approach to CO2e reduction
E1-4 – Targets related to climate change mitigation and adaptation
↗ Transition plan to achieve Net Zero Emissions by 2050
E1-5 – Energy consumption and mix
↗ Efficiency measures and energy mix
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions
↗ Greenhouse gas emissions along the entire value chain
↗ Other Environmental Information
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits
↗ Preparing for Net Zero
E1-8 – Internal carbon pricing
↗ Use of an internal carbon price to assess vehicle projects
E1-9 – Anticipated financial effects from material physical and transition risks and potential climate-related
opportunities
n. a./phase-in
ESRS E2 – Pollution
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material
pollution-related impacts, risks and opportunities
↗ Impact, risks and opportunities in relation to environmental pollution
↗ Stakeholder Engagement
E2-1 – Policies related to pollution
↗ Reduction of Environmental Pollution
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E2-2 – Actions and resources related to pollution
↗ Reduction of Environmental Pollution
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E2-3 – Targets related to pollution
↗ Reduction of Environmental Pollution
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E2-4 – Pollution of air, water and soil
↗ Reduction of Environmental Pollution
E2-6 – Anticipated financial effects from pollution-related impacts, risks and opportunities
n. a./phase-in
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
ESRS E3 – Water and marine resources
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material
water and marine resources-related impacts, risks and opportunities
↗ Water-related impacts, risks and opportunities
↗ Stakeholder Engagement
E3-1 – Policies related to water and marine resources
↗ Water management and water protection
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E3-2 – Actions and resources related to water and marine resources policies
↗ Measures to reduce water usage
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E3-3 – Targets related to water and marine resources
↗ Water consumption in production reduced again
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E3-4 – Water consumption
↗ Measures to reduce water usage
E3-5 – Anticipated financial effects from water and marine resources-related risks and opportunities
n. a./phase-in
ESRS E4 – Biodiversity and ecosystems
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction
with strategy and business model
↗ Comittment to protecting Biodiversity
Disclosure Requirement related to ESRS 2 IRO-1 Description of processes to identify and assess material
biodiversity and ecosystem-related impacts, risks and opportunities
↗ Procedure and methodological basis for the materiality assessment
↗ Stakeholder Engagement
↗ Commitment to protecting Biodiversity
E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and business model
↗ Resilience analysis
E4-2 – Policies related to biodiversity and ecosystems
↗ Great importance of intact ecosystems
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E4-3 – Actions and resources related to biodiversity and ecosystems
↗ Measures to protect biodiversity
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E4-4 – Targets related to biodiversity and ecosystems
↗ Holistic approach to sustainability targets
E4-6 – Anticipated financial effects from biodiversity and ecosystem-related risks and opportunities
n. a./phase-in
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
ESRS E5 – Resource use and circular economy
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and opportunities
↗ Procedure and methodological basis for the materiality assessment
↗ Stakeholder Engagement
E5-1 – Policies related to resource use and circular economy
↗ Holistic approach for the transition to a circular economy
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
» Raw materials security and strategy
E5-2 – Actions and resources related to resource use and circular economy
↗ Measures for the responsible use of resources
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E5-3 – Targets related to resource use and circular economy
↗ Milestones along the road to the circular economy
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
E5-4 – Resource inflows
↗ Measures for the responsible use of resources
E5-5 – Resource outflows
↗ Measures for the responsible use of resources
E5-6 – Anticipated financial effects from resource use and circular economy-related impacts, risks and
opportunities
n. a./phase-in
ESRS S1 – Own workforce
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
↗ Stakeholder Engagement
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction
with strategy and business model
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
S1-1 – Policies related to own workforce
↗ Basis for action
↗ Operational collaboration model
↗ Occupational health and safety management
↗ Occupational safety along the value chain
↗ Promoting diversity
S1-2 – Processes for engaging with own workers and workers’ representatives about impacts
↗ Basis for action
↗ Central participation opportunities
↗ Involvement of employees in change processes
↗ Operational collaboration model
↗ Just Transition - Developing expertise for the future
↗ Promoting diversity
S1-3.32, 34 – Procedures for improving negative impacts and channels through which the company's workforce
can raise concerns
↗ Basis for action
↗ Promoting diversity
S1-3.33 – Procedures for improving negative impacts and channels through which the company's workforce can
raise concerns
» Compliance and notification systems
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
S1-4 – Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions
↗ Attractive employment conditions
↗ Long-term strategic personnel resources planning
↗ Central participation opportunities
↗ Just Transition - Developing expertise for the future
↗ Leadership qualification
↗ Attract and develop talent
↗ Health management on a holistic basis
↗ Prevention and care
↗ Qualification
↗ Occupational health and safety management
↗ Occupational safety along the value chain
↗ Comprehensive preventive measures in occupational health and safety
↗ Promoting diversity
↗ Breakdown by age and gender
↗ Equal opportunities and equal pay for equal work
S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
↗ Overview of targets related to social sustainability matters
↗ Attractive employment conditions
↗ Just Transition - Developing expertise for the future
↗ Breakdown by age and gender
S1-6 – Characteristics of the undertaking’s employees
↗ Own workforce characteristics
S1-7 – Characteristics of non-employee workers in the undertaking’s own workforce
↗ Own workforce characteristics
S1-8 – Collective bargaining coverage and social dialogue
↗ Operational collaboration model
S1-9 – Diversity metrics
↗ Breakdown by age and gender
S1-11 – Social protection
n. a./phase-in
S1-13 – Training and skills development metrics
↗ Just Transition - Developing expertise for the future
↗ Performance management
S1-14 – Health and safety metrics
↗ Occupational health and safety management
↗ Accident frequency
S1-16 – Compensation metrics (pay gap and total compensation)
↗ Equal opportunities and equal pay for equal work
ESRS S2 – Workers in the value chain
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
↗ Stakeholder Engagement
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction
of with strategy and business model
↗ Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model
↗ Social and Environmental Responsibility in the Supplier Network
S2-1.16-17 – Human rights policy commitments relevant to value chain workers
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
» Raw materials security and strategy
S2-1.18 - Human rights policy commitments relevant to value chain workers
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
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BMW Group Report 2024
S2-1.19 - Human rights policy commitments relevant to value chain workers
↗ Due Diligence in the supplier network
S2-2 – Processes for engaging with value chain workers about impacts
↗ Social and Environmental Responsibility in the Supplier Network
↗ Risk analysis and control mechanisms
↗ Responsible raw material management
S2-3.27-28 – Processes for improving negative impacts and channels through which workers in the value chain
can raise concerns
↗ Due Diligence in the supplier network
↗ Responsible raw material management
» Compliance and notification systems
S2-4 – Taking Action on material impacts, and approaches to mitigating material risks and pursuing material
opportunities related to value chain workers, and effectiveness of those actions and approaches
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
↗ Social and Environmental Responsibility in the Supplier Network
↗ Due Diligence in the supplier network
↗ Responsible raw material management
ESRS S4 – Consumers and end-users
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders
↗ Stakeholder Engagement
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction
with strategy and business model
↗ Description of material impacts, risks and opportunities and their link to strategy and business model
↗ Basis for action
↗ Characterisitics of consumers and end-users
↗ The BMW Group always focuses on the customer
↗ Analysing market trends and brand perception
↗ Ensuring customer satisfaction
↗ Access to quality information
↗ Dealing with the opportunities and risks associated with digitalisation
↗ Organisation of and approach to preventing the misuse of data
↗ Safety concepts for BMW Group vehicles
↗ Raising awareness of safe driving
↗ Exclusion of problematic substances
» Compliance and notification systems
S4-1.15-17 –Policies on consumer and end-user engangement
↗ Basis for action
↗ The BMW Group always focuses on the customer
↗ Customer data protection
↗ Organisation of and approach to preventing the misuse of data
↗ Protecting vehicle data
↗ Product quality and product safety standards
S4-1.16b) – Policies on consumer and end-user engangement
» Compliance and notification systems
S4-2 – Processes for engaging with consumers and end-users about impacts
↗ Analysing market trends and brand perception
↗ Ensuring customer satisfaction
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Other Information
Sustainability Statement
Mandatory discosures pursuant to ESRS
BMW Group Report 2024
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
↗ Solutions-focused customer service
↗ Access to quality information
↗ Ongoing optimisation of access to information
↗ Making sustainability transparent
↗ Customer data protection
↗ Dealing with the opportunities and risks associated with digitalisation
↗ Organisation of and approach to preventing the misuse of data
↗ Protecting vehicle data
↗ Product quality and product safety standards
↗ Safety concepts for BMW Group vehicles
↗ Exclusion of problematic substances
S4-4 – Taking action on material impacts on consumers and end-users, and approaches to managing material
risks and pursuing material opportunities related to consumers and end- users, and effectiveness of those actions
↗ Ensuring customer satisfaction
↗ Access to quality information
↗ Ongoing optimisation of access to information
↗ Organisation of and approach to preventing the misuse of data
↗ Safety concepts for BMW Group vehicles
S4-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities
↗ Ongoing optimisation of access to information
↗ Dealing with the opportunities and risks associated with digitalisation
↗ Safety concepts for BMW Group vehicles
↗ Safeguarding quality standards
ESRS G1 – Business conduct
Disclosure Requirement related to ESRS 2 GOV-1 – The role of the administrative, supervisory and management
bodies
↗ Supervisory Board - Composition, diversity, expertise
↗ Supervisory Board - Duties and committees
↗ Board of Management - Duties, diversity, expertise
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and assess material
impacts, risks and opportunities
↗ Procedure and methodological basis for the materiality assessment
G1-1.9 – Policies for establishing, developing and promoting Corporate Governance and Corporate Culture
↗ Preventing, detecting and combating corruption and bribery
↗ Avoiding conflicts of interest in compliance investigations
↗ Reporting on compliance investigations
G1-1.10 – Policies for establishing, developing and promoting Corporate Governance and Corporate Culture
↗ Communicating internal regulations
↗ Training on governance matters
↗ Scope of training on anti-corruption
↗ Training rate of high-risk functions in relation to anti-corruption
» Compliance and notification systems
G1-3.18a) – Procedures to prevent and detect corruption and bribery
↗ Preventing, detecting and combating corruption and bribery
» Compliance as a corporate function
» Compliance Management System (CMS)
» Compliance and notification systems
» CMS monitoring and controls
G1-3.18b) – Procedures to prevent and detect corruption and bribery
↗ Avoiding conflicts of interest in compliance investigations
G1-3.18c) – Procedures to prevent and detect corruption and bribery
↗ Reporting on compliance investigations
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Mandatory discosures pursuant to ESRS
BMW Group Report 2024
G1-3.20 – Procedures to prevent and detect corruption and bribery
↗ Communicating internal regulations
G1-3.21a) – Procedures to prevent and detect corruption and bribery
↗ Scope of training on anti-corruption
G1-3.21b) – Procedures to prevent and detect corruption and bribery
↗ Training rate of high-risk functions in relation to anti-corruption
G1-3.21c) – Procedures to prevent and detect corruption and bribery
↗ Scope of anti-corruption training for the Board of Management and Supervisory Board
G1-5 – Political influence and lobbying activities
↗ Supervision of lobbying activities
↗ BMW Group positions and lobbying activities
↗ Political contributions
↗ Positions in public administration
↗ Transparency registers entries
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Internal Control System
I N T E R N A L C O N T R O L S Y S T E M , R I S K S
A N D O P P O R T U N I T I E S , C O M P L I A N C E
246 Appropriateness and Effectiveness of the
Internal Control System and Risk
Management System
247 Internal Control System
248 Risks and Opportunities
257 Compliance
APPROPRIATENESS AND EFFECTIVENESS OF THE INTERNAL
CONTROL SYSTEM AND RISK MANAGEMENT SYSTEM *
The BMW Group complies with recommendation A.5 of the Ger-
man Corporate Governance Code and accordingly provided its
statement in accordance with § 161 of the Stock Corporation Act
↗ www.bmwgroup.com/ in December 2024 on the following basis:
The BMW Group has set up an Internal control system and a risk
management system in accordance with the German Corporate
Governance Code.
The Internal control system includes all the principles, instruc-
tions and measures introduced by the Board of Management to
ensure:
—
the effectiveness and efficiency of business operations
—
the propriety of accounting and financial reporting
—
compliance with the statutory regulations relevant to the
BMW Group
The BMW Group’s Internal control system comprises the follow-
ing: the Internal control system for accounting and financial re-
porting, the Internal control system for reporting non-financial
key figures ↗ Internal Control System (ICS in the narrower sense), the
Compliance Management System ↗ Compliance Management System
(CMS) and the Corporate Audit Function (IAF).
The Risk Management System (RMS) comprises the entire set of
organisational rules and measures in place to identify, assess,
manage and communicate risks, including system monitoring
↗ Risk and Opportunity Management.
The ICS (in the narrower sense), the RMS and the CMS are au-
dited independently on a risk-oriented basis by Corporate Audit
as part of the “Three Lines” model, with all systems intercon-
nected by overarching structural elements. Internal Audit’s find-
ings are reported to the Board of Management and the Supervi-
sory Board on a regular basis.
The design and implementation of the Internal control system
and the Risk management system take into account the size,
structure and complexity of the BMW Group in particular. These
systems are intended to detect, manage and mitigate material
risks. However, despite the comprehensive analysis of risks in
general, any Control and Risk management system has inherent
limitations. For this reason, the occurrence of risks cannot be
ruled out in all circumstances.
Taking this into account, the Board of Management is not aware
of any circumstances that give rise to doubts regarding the ap-
propriateness and effectiveness of the systems. In particular, no
material cases of non-compliance or systemic weakness were
identified that preclude such appropriateness and effectiveness.
* The information provided in this section is extraneous to management reports which are not cov-
ered by PwC’s audit.
INTERNAL CONTROL SYSTEM, RISKS AND
OPPORTUNITIES, COMPLIANCE
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Internal Control System
INTERNAL CONTROL SYSTEM 1
» The Internal Control System2 (ICS in the narrower sense) is part
of the BMW Group’s overall system of internal governance and
based on a set of measures and control activities that are inte-
grated in processes and organisational structures. Its purpose is
to ensure the accuracy of external financial and non-financial re-
porting. The requirements for the design and structure of ICS
procedures incorporated in accounting and financial reporting
processes as well as those used to generate non-financial infor-
mation are defined on a Group-wide basis. Non-financial infor-
mation comprises information from sustainability reporting as
well as other non-financial information.
The BMW Group’s ICS for financial reporting has the task of en-
suring that significant accounting and financial reporting pro-
cesses are both accurate and reliable. The ICS for non-financial
reporting focuses on the further development of data collection
processes and reporting processes for non-financial perfor-
mance indicators. As such, the ICS for non-financial reporting es-
sentially covers the risks relating to sustainability reporting. Sus-
tainability risks are reflected and managed in the BMW Group’s
risk management.
The ICS is based on the “three lines” model, including a clear def-
inition of how the various functions are required to interact with
one another in order to manage risks. As a component of the
second line, the ICS serves as the link between the operating
units (first line) and Corporate Audit (third line).
An appropriate and effective ICS aims to safeguard external fi-
nancial and non-financial reporting.
The design of the BMW Group’s Internal Control System is based
on internationally recognised standards such as the COSO
model3.
The principal features of the BMW Group’s ICS are a role-based
approach embedded throughout the organisation, a clearly de-
fined control environment that is underpinned by a combination
of risk assessment procedures, control activities, information and
communication, and monitoring activities.
Standardised methods are used to safeguard the reporting pro-
cesses for both the financial and non-financial ICS. On the basis
of an end-to-end process analysis, all potential risks are identi-
fied that essentially relate to the completeness and integrity of
data, data availability or partially automated processes. Based
on the classification of the risks identified, suitable control
measures to mitigate risks are prioritised and developed. The
controls, such as plausibility checks, validation and segregation
of duties, are intended to have a preventive or detective effect
depending on their appropriateness. They are specifically de-
signed and purposefully anchored within the Group reporting
process. The effectiveness and execution of the controls is en-
sured by systematic control tests, among other things. In addi-
tion, the ICS monitoring processes are supplemented by an in-
dependent assessment of the ICS maturity level.
Both the system itself and the methods applied are subject to
continuous improvement, with system functionality being as-
sessed on a regular basis. Notwithstanding the measures taken,
every control system is subject to inherent limitations, given that
it is not possible to prevent all incorrect disclosures or detect
them in a timely manner.
BMW Group working instructions and guidelines for recognising,
measuring and allocating items to accounts as well as definitions
of non-financial performance indicators are available to all em-
ployees via the BMW Group’s intranet system. New reporting
standards such as the European Sustainability Reporting Stand-
ards (ESRS) are assessed for their potential impact on the
BMW Group.
ICS requirements such as the segregation of duties are already
embedded in the IT systems that are relevant for accounting and
financial reporting and are also taken into account in their further
development. Furthermore, the BMW Group deploys IT or AI-
supported data analysis tools to identify and subsequently elim-
inate any weaknesses detected in its processes and/or control
systems.
Responsibilities for ensuring the appropriateness and effective-
ness of ICS procedures for accounting and financial reporting
processes as well as those relating to non-financial performance
indicators are defined in a role-based model and allocated to the
relevant line and process managers. They report annually on
their assessment of the ICS for accounting processes and the
processes for non-financial key figures. The assessment takes
into account the results of internal and external audits as well as
the results of continuous monitoring. The results are gathered
and documented in a centralised IT system. Both the Board of
Management and the Audit Committee are informed about the
status of the ICS on an annual basis. The Board of Management
and, where appropriate, the Supervisory Board are promptly in-
formed in the event of significant changes to the ICS. «
1 Contains disclosures pursuant to ESRS 2 GOV-5.
2 Disclosures pursuant to § 289 and § 315 HGB as well as ESRS 2, paragraphs 34-36 and AR
11.
3 Committee of Sponsoring Organizations of the Treadway Commission.
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Internal Control System, Risks and Opportunities, Compliance
RISKS AND OPPORTUNITIES
RISK AND OPPORTUNITY MANAGEMENT
The foundation of the BMW Group’s business success lies in ef-
fectively managing risks and making use of any opportunities.
This is based on an effective and efficient risk and opportunity
management strategy. A key prerequisite is the ability to react
quickly and flexibly to changes in geopolitical, economic, environ-
mental, social, technological or legal conditions. The general risk
and opportunity situation is regularly evaluated as part of this.
The aim of our risk management system (RMS) is to identify,
measure and manage risks, both individual and cumulative, that
could pose a threat to the success of the business.
Risks and opportunities (including risks to reputation and sus-
tainability-related risks) are reported for the current and subse-
quent financial year. ↗ Material Risks and Opportunities
Risks and opportunities relating to sustainability (including cli-
mate risks) are also considered for the medium and long term in
the non-financial statement in accordance with the ESRS.
↗ Sustainability Statement
Organisation of risk management
Risk management is organised globally as a decentralised net-
work and steered by a centralised risk management function.
The various BMW Group divisions are represented by Network
Representatives. The responsibilities and tasks of the centralised
risk management function and the Network Representatives are
documented and clearly assigned. All material risks are firstly
presented for review to the Risk Management Steering Commit-
tee, which is chaired by Group Controlling. Any material risks are
then reported to both the Board of Management and the Super-
visory Board’s Audit Committee.
Other functions such as Group Compliance and the Internal Con-
trol System (ICS) form key interfaces to the Risk management
system. In its capacity as an independent control body, Corporate
Audit reviews the RMS established by the Board of Manage-
ment.
According to Group-wide guidelines, all employees and manag-
ers have a duty to report risks through the designated reporting
channels. The key elements of the risk management processes
and an appropriate risk culture are embedded in the
BMW Group’s core values, the Group’s extensive rules and reg-
ulations on risk management and in its overall risk strategy. Fur-
thermore, the BMW Group’s risk management strategy is contin-
ually being refined in order to reflect new findings and require-
ments. Training programmes and informational events are reg-
ularly conducted throughout the BMW Group, particularly within
the risk management network.
The risk management process comprises the early identification,
analysis and measurement of risks, the use of appropriate risk
management tools and the monitoring and assessment of the
measures taken. If no specific reference is made, risks and op-
portunities relate to the Automotive segment.
Risk measurement
Risks relating to the current and subsequent financial year are
shown in the section ↗ Material Risks and Opportunities. The risks are
measured using value-at-risk models and assessed on the basis
of uniform loss distribution metrics, thereby enabling better com-
parability of risks for both internal and external reporting pur-
poses. Risks are evaluated net of any effective risk mitigation
measures (net basis).
Risks are classified according to the risk amount (average earn-
ings impact, taking into account the probability of occurrence).
However, the earnings impact may also be significantly higher if
the risk actually materialises (worst-case scenario, confidence
level: 99%).
The impact of risks and opportunities is presented separately
without offsetting against each other.
Group-wide effects and trends are identified by aggregating all
material risks at Group level. For this purpose, the potential earn-
ings impact of the risks is aggregated, taking correlation effects
into account. In order to assess the risk-bearing capacity of the
BMW Group, the aggregated amount of risks is compared with
the risk cover amount (i.e. the equity capital of the BMW Group
recognised for accounting purposes). A limit system for various
risks helps monitor the risk-bearing capacity.
Reputational risks
Quite apart from the financial consequences, risks can also have
an impact on the BMW Group’s reputation. For these purposes,
the BMW Group assesses all material risks with regard to their
impact on its reputation using a scoring model. Moreover, other
overarching topics are monitored by means of regular media
analysis. Any material reputational repercussions are described
in the section ↗ Material Risks and Opportunities.
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Risk Management in the BMW Group
Non-financial risks as reported in the non-financial
statement (NFS)
Alongside the maintenance of a comprehensive system of risk
management, sustainability constitutes a core strategic principle
of the BMW Group. Risks resulting from sustainability matters
are identified both via the Group-wide risk management network
and the materiality analysis process in accordance with ESRS.
In accordance with § 289c of the German Commercial Code
(HGB), risks that could have an impact on the non-financial as-
pects referred to in the relevant legislation are reviewed as part
of the reporting process. Material risks in this context are defined
as those stemming from business activities, business relation-
ships and products and services provided by the BMW Group
that are highly likely to have a seriously adverse impact. The ma-
terial sustainability risks identified in accordance with the ESRS
during the reporting year are presented in the ↗ Sustainability
Statement. Otherwise, no material non-financial risks were identi-
fied.
Opportunity management
Identifying opportunities is an integral part of the BMW Group’s
strategy and planning processes. The Group’s range of products
and services is continually reviewed on the basis of these anal-
yses. ↗ The BMW Group Strategy
The regular monitoring of key business processes and strict cost
controls are also key factors for ensuring high levels of profitabil-
ity and returns on capital employed.
The importance of opportunities for the BMW Group is classified
on a qualitative basis in the categories “material” and “immate-
rial”. Probable measures aimed at safeguarding profitability are
already considered in the outlook.
Board of
Management
Supervisory
Board
Internal
Control
System
Appropriateness
Effectiveness
Compliance
Management
System
Internal and external audit
Risk
Management-
System
Steering
Committee
Risk
Management
Measures
Steering
Analysis
and
Evaluation
Identification
Reporting/
Monitoring
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MATERIAL RISKS AND OPPORTUNITIES
Although interest rates in the reporting year were slightly lower
than in the previous year, the ongoing high interest rate level
could continue to restrain economic growth and have a negative
impact on sales volume. In general, there is also the risk that the
introduction of additional tariffs and corresponding counter-
measures could lead to trade disputes. A prolonged war between
Russia and Ukraine as well as further escalation in the Middle
East could also significantly strain the global economy.
The ongoing challenges in the sales markets have already been
taken into account in the outlook. Risks beyond this for the
BMW Group remain stable at a high level.
On balance, neither the Board of Management nor the Supervi-
sory Board see any threat to the BMW Group’s status as a going
concern at the balance sheet date or at the date on which the
Group Financial Statements were drawn up.
As in the previous year, the current set of risks to the BMW Group
are considered to be manageable. All risks and opportunities that
are expected to materialise have already been addressed in the
Outlook Report in terms of their impact as well as in the long-
term corporate planning and are accordingly not included in the
risk and opportunity assessment below. Liquidity requirements
are currently covered by existing liquidity as well as the various
financing instruments available.
The following sections illustrate potential future developments or
events that could result in a negative (risk) or a positive (oppor-
tunity) deviation from the outlook for 2025 and 2026 and indi-
cate their significance to the BMW Group.
In addition, unforeseen events could affect business operations
and hence the BMW Group’s results of operations, financial po-
sition and net assets as well as its reputation.
The following overview provides a summary of the material risks
and opportunities:
Risks
Opportunities
Classification
of the risk level1
Change compared
to prior year2
Classification
Change compared
to prior year
Macroeconomic risks and opportunities
Very high
–
Immaterial
–
Strategic and sector-specific risks and opportunities
Changes in legislation and regulatory requirements
High
–
Immaterial
–
Market developments
Very high
Increased
Immaterial
–
Risks and opportunities relating to operations
Production and technology
High
–
Immaterial
–
Purchasing
High
–
Immaterial
–
Sales network
Low
–
Immaterial
–
Information security, data protection and IT
High
–
Immaterial
–
Financial risks and opportunities
Foreign currencies
Medium
Decreased
Material
–
Raw materials
Medium
–
Material
–
Liquidity
Low
–
–
–
Other financial risks
Medium
–
Immaterial
–
Pension obligations
Medium
–
Material
–
Legal risks
Medium
–
–
–
1 For the purpose of further differentiation, the additional risk category “Very high” has been intro-
duced.
2 The change shown here relates to the classification of prior-year risks using the updated classifi-
cation.
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In order to further differentiate risks with the highest risk level, the
category "Very high" has also been introduced.
The following ranges thus apply for the purpose of classifying the
risk amount for material risks:
Class
Risk amount
Low
< € 200 million
Medium
> € 200–1,000 million
High
> € 1,000-2,000 million
Very high
> € 2,000 million
Due to the particular features of the business model, material
risks and opportunities relating to the Financial Services seg-
ment are presented separately in the section ↗ Risk management
system in the Financial Services segment.
Macroeconomic risks and opportunities
Economic conditions have an impact on business performance
and hence on the level of earnings generated by the BMW Group.
Unforeseen disruptions in global economic relations can have
highly unpredictable effects. The level of risk is classified as very
high.
With regard to the war in Ukraine, there is a risk of a further es-
calation and therefore of further sanctions on Russia as well as
possible counter-sanctions and/or retaliatory measures by Rus-
sia. A reduction in or even withdrawal of US support for Ukraine
could have significant ramifications for the course of the war.
Any further escalation in the Middle East could have a negative
impact on the oil price, which in turn would cause inflation to rise,
potentially leading to higher costs and lower profitability.
In the relationship between the US and China, the focus is cur-
rently shifting from simple tariff increases to further import and
export restrictions on specific technologies. These could also
lead to less favourable import and export conditions for the
BMW Group. In the meantime, the EU has also imposed punitive
tariffs on battery-powered vehicles from China. This harbours
significant risks, as it increases the likelihood of countermeasures
by China and could trigger a spiralling escalation.
Although there has been a turnaround in interest rates in the USA
and Europe due to the decrease in inflation rates, the persistently
high interest rate level is having a dampening effect on growth
and consumption. In particular, the current weakness of the Ger-
man economy could slow down growth in the eurozone as a
whole.
The current state of the Chinese economy also poses a risk to
sales. If the ongoing crisis in the real estate sector and a general
downturn in domestic demand were to further restrain growth,
the potential effects on the global economy would be clearly felt.
Economic risks are regularly assessed as part of the Group's in-
ternal strategy process and their impact identified. To enable
better management of potential negative effects, sales markets
are being monitored on an ongoing basis, and individual
measures are being defined by standardised processes and in-
ternal committees. These include changes to the allocation of
planned sales volumes. The aim is to achieve an overall optimum
between production, sales and inventories across all plants, mar-
kets and model series.
At the moment, macroeconomic opportunities that could posi-
tively influence the BMW Group's earnings situation are rather
immaterial. However, if significantly more positive economic de-
velopment were to occur in a market due to stronger fiscal or
monetary policy measures, this could also have a positive im-
pact.
Strategic and sector-specific risks and opportunities
Changes in legislation and regulatory requirements
The introduction of more stringent legislation and regulations,
particularly regarding emissions, safety and consumer protection
as well as regional vehicle-related purchase and usage taxes,
poses a significant risk for the automobile industry.
Country- and sector-specific trade barriers can be subject to
change at short notice. To mitigate the risks of climate change,
new regulatory requirements could be adopted. Any tightening
up of regulations could necessitate significantly increased invest-
ments and costs, influence customer behaviour, and lead to in-
terruptions in supply. The risk in this regard is categorised as
high.
The BMW Group is seeing increasingly stringent vehicle emis-
sions regulations for conventional and electrified drivetrain sys-
tems. In the EU, the new EU7 regulation was adopted in April
2024. Risks may arise from the details of the regulation still to
be finalised by the European Commission. In addition to pollutant
emissions, brake particle emissions, tyre abrasion, and high-volt-
age battery durability are being regulated for the first time. The
European Commission has the initial right to propose legislation.
Additional tightening measures are anticipated around 2030.
In China, legislators are planning to tighten emissions legislation.
Risks may arise from additional requirements.
The legally required fleet-wide carbon emissions target in the EU
has been reduced to 0 g/km for 2035, thus requiring complete
electrification of the passenger car new vehicle fleet by 2035.
Moreover, the European Commission is working on a proposal to
determine if and how vehicles powered exclusively by e-fuels can
be recognised as zero-emissions vehicles. In 2026, the EU will
conduct a review to analyse the framework conditions required
to meet the 0 g/km target for 2035. A possible adjustment of the
0 g/km target for 2035 depends on the results of this review.
Risks can arise from the non-availability of renewable energies,
inadequate private and public charging infrastructure as well as
limited access to resources for the construction of electric drives.
A discussion of consumption values and CO2e emissions may
have an impact on the Company’s reputation.
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Furthermore, the BMW Group maintains a dialogue with decision
makers and representatives of politics, trade unions, associa-
tions and non-governmental organisations (NGOs), with a view
to playing a constructive and transparent role in helping shape
the general political framework to the extent that it concerns the
Group’s business activities. ↗ Stakeholder Engagement
Changes in trade policies could also have a positive impact on
the BMW Group’s earnings in the short to medium term. Any re-
duction in tariff barriers, import restrictions or direct excise duties
could result in lower manufacturing costs or enable products and
services to be offered to customers at more attractive conditions.
Opportunities potentially arising from changes in legislation and
regulations are classified as immaterial.
Market developments
The constant change in customer preferences, an altered brand
perception, or a tense market and competitive situation harbour
risks as well as opportunities. For instance, the BMW Group
could continue to be confronted with short-term supply and de-
mand distortions in the transition from conventionally powered
vehicles to alternative drivetrain types. This effect could be exac-
erbated by subdued demand due to a reluctance to buy on the
part of customers in individual markets.
In China, consumer spending in particular remains subdued de-
spite the central government’s support measures. The challeng-
ing market environment and competition from Chinese manufac-
turers may have a corresponding impact on the BMW Group.
The likelihood of market risks occurring has increased year on
year and is currently classified as very high.
The BMW Group’s sales markets are continuously monitored in
order to minimise risks, meet changing customer needs and, at
the same time, capitalise on opportunities in terms of sales
growth and pricing. The BMW Group considers the resulting ad-
ditional opportunities to be insignificant.
Risks and opportunities relating to operations
Production and technology
Production interruptions are the main risk in the plants. These
can have various causes, such as system failures and tool break-
ages, supplier-related restrictions in logistics or in the supply of
parts, and in certain countries also failures in the energy supply.
Furthermore, IT disruptions caused by cyberattacks, for example,
play a significant role in disruptions to production. Damage to the
factory infrastructure, caused by fire or natural events such as
hail, storms or heavy rainfall, can lead to production downtime.
The effects of climate change that are already apparent, and
short-term future effects such as an increase in natural disasters,
are taken into account. The risk level for the occurrence of risks
from production and technology is considered to be high.
All BMW Group plants have implemented measures for risk
avoidance and reduction. These include, for example, preventive
maintenance. The risk of production downtime due to parts sup-
ply is reduced via measures related to logistics, purchasing and
the highly flexible production network.
A variety of measures are also being taken to prevent and coun-
teract downtimes of manufacturing equipment due to targeted
cyberattacks. These include the establishment of strict firewall
regulations, application whitelisting and the use of endpoint se-
curity software.
Potential natural hazards are already taken into account during
site selection and construction measures. The risk posed by the
potential effects of natural events or fire is mitigated thanks to
the use of on-site fire services and preventive employee training.
The risk resulting from property-related damage and damage
due to downtime in the production process, as well as transport
damage to vehicles already manufactured, is transferred to
highly solvent insurance companies. Due to the volatility of the
international insurance markets, the BMW Group itself bears sig-
nificant risks today. This solution may become increasingly rele-
vant if premiums and deductibles continue to rise.
Potential short-term changes to the relevant legislation and reg-
ulations or changes in their national interpretation by the author-
ities may jeopardise our ability to receive type approvals in good
time. In extreme cases, this could lead to the non-admission of a
vehicle derivative, sub-market or even a complete market. A de-
layed start of production for new models could also lead to sales
losses. Numerous control points have been implemented as part
of the homologation process in order to identify and mitigate
risks.
Product recalls can lead to additional costs. The BMW Group es-
tablishes appropriate provisions for statutory and non-statutory
warranty obligations. It cannot be ruled out, however, that addi-
tional costs could be incurred that are either not covered or not
fully covered by these provisions. Despite the deployment of
thorough quality assurance processes, such risks can always
arise if the materials and/or processing procedures used prove
insufficient – in some cases years after a product has been
launched. A high number of recalls could also have a negative
impact on the BMW Group’s reputation. Further information on
risks in conjunction with provisions for statutory and non-statu-
tory warranty obligations is provided in ↗ note [34] to the Group
Financial Statements.
If cost items such as expenses for warranty claims develop more
favourably than expected, this could lead to insignificant oppor-
tunities for financial performance.
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Purchasing
The main risk regarding purchasing relates to supply shortages
due to disruptions at the supplier level. Production problems at
the supplier level could lead to short or long-term increases in
costs and even production interruptions, prompting a reduction
in sales for the BMW Group. Furthermore, the Group could suffer
damage to its reputation if customer demand cannot be ade-
quately met.
Potential reasons for the failure of suppliers to deliver include
shortages of raw materials, energy and base products, natural
disasters and fires, security risks in certain countries, IT prob-
lems, and non-compliance with sustainability or quality stand-
ards. The BMW Group classifies this risk as high.
During the selection of suppliers, risk criteria such as location or
sustainability requirements are assessed as standard practice.
The effects of climate change that are already apparent, and
short-term future effects such as an increase in natural disasters,
are taken into account.
An increasingly complex supplier network, particularly with indi-
rect sub-suppliers, may jeopardise the delivery of supplies to
plants. A prevention programme was put in place by the
BMW Group in order to identify such developments early on and
to take suitable measures. Shifts in sales planning and thus also
in the product mix could lead to over- or under-utilisation by sup-
pliers. This in turn could result in subsequent claims due to ca-
pacity expansions, or to compensation claims due to residual
costs.
Additional risks arise from the high level of inflation in recent
years, prompting higher price demands from suppliers. Further-
more, the number of suppliers at risk of insolvency which the
BMW Group supports to maintain supplier operations is increas-
ing.
Cyberattacks along the entire value chain also represent risks to
the security of supply and the protection of expertise. The
BMW Group actively supports the supplier network by requiring
certificates (such as TISAX) when awarding projects and by
implementing other preventive measures, in some cases directly
at suppliers’ locations. ↗ Purchasing and Supplier Network
The BMW Group sees opportunities in the development of local
supplier structures and in innovative manufacturing technologies
that could lead to lower material expenses. These opportunities
are classed as insignificant.
Sales network
In order to sell its products and services, the BMW Group uses
various sales models and operates a global sales network com-
prising subsidiaries, importers, branches and independent deal-
erships. The insolvency of major dealerships may have a nega-
tive impact on global vehicle sales and the range of services
available to our customers. Developments in the dealerships are
monitored on an ongoing basis so that measures can be imple-
mented at an early stage if necessary.
Overall, the risks arising from the sales network can be catego-
rised as low.
The BMW Group is aligning its sales organisation with the needs
of the future and prioritising the expectations and needs of its
customers even more consistently. Additional opportunities aris-
ing as a result are classified as insignificant.
Information security, data protection and IT
Digitalisation and automation across all areas of the business
and its products offer numerous opportunities for the
BMW Group. Potential uses as well as risks are evaluated on a
continuous basis, especially in the field of Artificial Intelligence.
Any opportunities beyond this are classified as insignificant. At
the same time, information technology (IT) requirements regard-
ing the confidentiality, integrity and availability of information are
becoming increasingly strict. The threat level has continued to
rise over recent years. Increasing geopolitical conflicts are also
contributing to the rise in cyberattacks. Moreover, legal and reg-
ulatory requirements are becoming ever stricter worldwide,
which could also necessitate higher investments in hardware and
software.
Due to the continuing increase in the number of attacks ob-
served, the level of risk – despite extensive security measures –
is classified as high.
In order to protect IT systems, we have introduced processes
such as standardised safety assessments and regular penetra-
tion tests. However, in this environment, risks cannot be fully
ruled out due to the high complexity and increasing connectivity.
Information and data can also be compromised by a lack of risk
awareness and inappropriate behaviour. The main direct conse-
quences would be negative effects on business performance,
disruption in production or reputational damage. For this reason,
the BMW Group has launched a programme to increase em-
ployee awareness of information and IT security through appro-
priate measures and to establish a lasting security culture. The
BMW Group has implemented the known requirements of the EU
AI Act and set up corresponding processes.
Protecting information, for example from unauthorised access or
misuse, has the highest priority. In conjunction with risk manage-
ment requirements, risks relating to information security, data
protection and IT are systematically documented, provided with
measures by internal specialised departments, and continuously
monitored with regard to threat level and risk mitigation. Regular
analyses and controls as well as tight security management pol-
icies ensure an appropriate level of security.
However, despite continuous testing and preventive security
measures, it is impossible to completely eliminate risks in this
area. All authorised persons are required to treat information
such as confidential business, customer and employee data with
great care, use information systems securely and handle risks in
a transparent manner. Uniform requirements that apply through-
out the Group are documented in a comprehensive set of rules
and guidelines. A consistently applied policy of updating such
rules and regulations to the current situation, coupled with regu-
lar communication, awareness-raising and training measures,
form the basis for a high level of security and risk awareness in
general.
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Internal Control System, Risks and Opportunities, Compliance
Financial risks and risks relating to the use of financial
instruments
Currencies
As an internationally operating enterprise, the BMW Group con-
ducts business in a variety of currencies, thus giving rise to cur-
rency risks and opportunities. A high portion of revenues, produc-
tion, other purchases and funding occur outside the eurozone.
The BMW Group manages currency risks at both the strategic
(medium to long term) and operational level (short to medium
term). Over the medium and long term, it will be possible to ramp
up production or the purchase volume in foreign currency regions
(natural hedging). Currency risks are managed in the short to me-
dium term and for operational purposes by means of hedging on
financial markets, the primary objective of which is to improve
planning reliability for the BMW Group as a whole. Continually
updated cash-flow-at-risk models are used to limit currency
risks. Due to the relatively moderate volatility of exchange rates
in the recent past, the level of risk has fallen slightly compared
with the previous year and is now classified as moderate.
Depending on exchange rate fluctuations, opportunities may
also arise, which means they can be considered significant.
Raw materials
As a manufacturing company, the BMW Group is subject to price
risks, particularly in relation to the raw materials used in vehicle
production.
The analysis of raw materials price risks is based on planned pur-
chases of raw materials and components containing those prod-
ucts. A cash-flow-at-risk model is deployed to measure risks re-
lating to raw materials prices. Price fluctuations for raw materials
such as precious metals, non-ferrous metals, raw materials for
batteries and steel, and also energy, are hedged using financial
derivatives and supply contracts with fixed pricing arrangements.
The prices of many raw materials continue to be subject to un-
certainty on commodity markets. This entails a medium level of
risk as well as significant opportunities.
Liquidity
The major part of the Financial Services segment’s credit financ-
ing and leasing business is refinanced on capital markets. The
risk of restricted access to funds is deemed low.
The liquidity concept, based on experience gained during various
crises, is rigorously adhered to and continuously developed. In
the Financial Services segment, the use of the “matched funding
principle” ensures that liquidity risks are generally avoided.
The solvency of the BMW Group is assured at all times by adher-
ing to liquidity ratios and using a broadly diversified range of re-
financing sources.
The liquidity position is monitored continuously and managed
through the Group-wide planning of financial requirements and
funding. Further information on risks in conjunction with financial
instruments is provided in ↗ note [40] to the Group Financial State-
ments.
Other financial risks
Other financial risks worth mentioning include counterparty risks
as well as those arising in connection with investments in other
entities.
The BMW Group works together with banks to ensure that the
available liquidity is optimally invested in order to hedge against
financial market risks (particularly currency, commodity and in-
terest rate risks) using derivative financial instruments and to
protect payments made in advance. Counterparty risk denotes
the risk that the BMW Group will not receive, or not receive in full,
the payments due to it in connection with the investment and
hedging transactions referred to above. A value-at-risk model is
employed to measure counterparty risk, taking into account the
creditworthiness of the banks and the business volumes in-
volved. Risk is managed using a limit system, which includes
daily monitoring of the extent to which limits are being utilised at
the level of the individual counterparties.
The BMW Group holds equity investments of varying amounts in
numerous entities. The recoverability of these investments is
monitored on an ongoing basis as part of a standardised pro-
cess. However, risks from impairment losses could still arise.
The risk associated with other financial risks is classified as me-
dium. Potential opportunities resulting from the revaluation of in-
vestments are considered immaterial.
Pension obligations
Future pension obligations are financed largely via external pen-
sion funds or trust constructs that are legally separate from the
BMW Group. Externally managed funds are invested on capital
markets in a broadly diversified portfolio with a view to enabling
future pension payments to be disbursed out of pension assets.
These arrangements greatly reduce the need to fund pension
payments out of ongoing operations. Fluctuations in pension
provisions and the related pension assets give rise to risks that
may have varying effects due to the differences in accounting
standards between IFRS and HGB.
The risk associated with pension provisions based on IFRS val-
uations is categorised as medium. Material opportunities can
arise if the value of pension assets on the capital markets devel-
ops favourably or if pension provisions decreased at a more pro-
nounced rate than the related assets.
Pension obligations are chiefly measured by projecting future
payouts, gauged with a current discount rate derived from mar-
ket yields from top-rated corporate bonds. This discount rate is
subject to market fluctuations and therefore influences the level
of pension obligations in terms of present value. Changes in
other parameters, such as inflation rates and life expectancy,
also impact the amount as well as the duration of future pension
payments. Regulatory requirements may also affect the amount
of pension obligations.
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Internal Control System, Risks and Opportunities, Compliance
The fluctuation of pension assets reflects the volatility of various
asset classes on capital markets. Investments are broadly diver-
sified (interest-bearing securities, equities, real estate and other
asset classes).
Revaluations on the liabilities and assets sides are recognised
net of deferred taxes through other comprehensive income and
hence directly in equity of the BMW Group (within revenue re-
serves). Further information on risks in conjunction with pension
provisions is provided in ↗ note [33] to the Group Financial State-
ments.
Legal risks
Like all entities with international operations, the BMW Group is
confronted with legal disputes, alleged claims relating in particu-
lar warranty and product liability or intellectual property rights in-
fringements and proceedings initiated by government agencies.
Any of these could, amongst other consequences, have an ad-
verse impact on the Group’s reputation. Such proceedings are
typical for the sector, may result as a consequence of realigning
product or purchasing strategies to changed market conditions,
or are antitrust-related. Particularly in the US market and Great
Britain, class action lawsuits, group proceedings and product li-
ability risks can have substantial financial consequences and
cause damage to the Group’s reputation. More rigorous applica-
tion, interpretation of, or changes to, existing regulations could
result in a greater number of recalls.
The level of risk from legal risks is classified as moderate.
International movements of goods require compliance with ex-
tensive export control regulations. In addition to goods-related
restrictions, international trading may also involve personal,
country-specific and end-use-related restrictions. In particular,
non-compliance with applicable EU, US and Chinese export con-
trol regulations could result in significant legal consequences for
the BMW Group. In light of the BMW Group’s strong presence in
the USA and China, any intensification of the trade dispute be-
tween the countries could be a potential source of additional risk
exposure.
BMW Group companies are subject to governmental tax and
customs audits in each country where they operate, potentially
resulting in back taxes, retrospective customs duties, interest,
penalties and similar payments. Payments of this nature may, for
instance, result from the non-recognition of inter-company trans-
fer prices in the countries concerned. Further substantial legal
risks may emerge from contested interpretations of tax or cus-
toms legislation. In addition, the findings of the tax audit in the
countries are effective for the audit period and, if applicable, in
subsequent years. Risk management relating to tax and customs
legislation is enshrined in the BMW Group’s RMS. In order to
minimise material procedural tax and customs risks, the
BMW Group has set up a comprehensive Tax Compliance Man-
agement System (Tax CMS) that is already being applied in its
principal entities in Germany, China and Austria, and will be grad-
ually rolled out in other major countries.
The BMW Group recognises appropriate levels of provision for
lawsuits and risks. In addition, a part of these risks is insured to
an economically reasonable extent. Nevertheless, it cannot be
ruled out that damages may occur in excess of the insured
amounts. In accordance with IFRS, the required information is
not provided if the BMW Group concludes that disclosure of the
information could seriously prejudice the outcome of the relevant
legal proceedings.
Further information on contingent liabilities is provided in
↗ note [39] to the Group Financial Statements. The potential finan-
cial impact of the matters covered under contingent liabilities, in-
cluding those related to tax and customs risks as well as legal
and warranty risks, cannot be conclusively assessed at this
stage.
A Compliance Management System is in place across the
BMW Group to ensure, among other things, that its representa-
tive bodies, executives and employees worldwide consistently
act in a lawful manner. Further information on this can be found
in the ↗ Compliance chapter.
Risk management system in the Financial Services segment
Risk management in the Financial Services segment is divided
into various areas: the prevailing risk culture, the risk strategy,
and the defined risk appetite for the various types of risk. In ad-
dition to this, there are risk guidelines in place worldwide that are
implemented by the individual companies in the Group.
The central goal of risk management in the Financial Services
segment is the continuous assurance of risk-bearing capacity.
Limits are assigned depending on the type of risk, and various
value-at-risk models, which are regularly validated, are used for
quantification purposes. The confidence interval on which this
model is based is conservative. Care is always taken to ensure
that the coverage amounts based on the equity of the Financial
Services segment are sufficient.
Regular stress tests are carried out to support this model. These
are another indicator of potential risk management measures
and create a high degree of transparency with regard to extreme,
realistic events, particularly in volatile times.
In principle, risk management in the Financial Services segment
is based on the requirements of the supervisory authorities and
is implemented consistently worldwide.
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The following table provides an overview of the material short-
term risks and opportunities in the Financial Services segment:
Credit risks and opportunities
In the Financial Services segment, the risk of default is factored
into the interest rate when concluding an agreement. Further-
more, the credit portfolio is evaluated on an ongoing basis with
the aim of determining if any impairment allowances need to be
made for financial receivables. This evaluation is based on sta-
tistical methods and takes into account the following aspects,
among others: the creditworthiness of the customer, the cus-
tomer’s payment history and the economic context in the cus-
tomer’s region. The amount allocated to credit risks remains cat-
egorised as medium.
There may be positive effects in the ongoing assessment of the
portfolio’s creditworthiness that lead to a reduction of the overall
risk and therefore constitute an opportunity. The BMW Group
continues to classify potential opportunities in this area as imma-
terial. In order to take account of the volatile economic environ-
ment, parameters within the credit awarding process were re-
viewed and adjusted to factor in or not accept declining credit
ratings.
Residual value risks and opportunities
Residual value risks are classified as high in terms of their risk
level, while residual value opportunities are deemed material.
They arise primarily when leased vehicles are sold after they are
returned at the end of the leasing period. A negative deviation
from the residual value forecast results in a residual value risk,
while a positive deviation represents a residual value oppor-
tunity.
Each lease contract is assigned a forecasted sales value for the
vehicle at the end of the lease term. Contemporary market trends
are taken into consideration in the routine portfolio evaluation.
Changes relating to the portfolio composition (e.g. by drivetrain
type) and their impacts are also incorporated into the portfolio
evaluation. To this end, these developments are constantly ana-
lysed. The residual value calculation models, as well as the port-
folio evaluation models, are continuously being refined.
Interest rate risks and opportunities
To a limited degree, interest rate risks are deliberately accepted
in order to make use of the associated return potential. Risks
thereby result when there is a partial mismatch between fixed in-
terest rate periods, which means they are rated as low. Interest
rate risks are kept within a certain limit and are managed through
the use of derivatives. The associated opportunities are classed
as significant.
Operational risks
Operational risks result from any form of defective internal pro-
cesses and systems, external events or erroneous behaviour.
Because the risks arise in a wide range of areas of the Company,
such as IT security or supplier management, the close dovetail-
ing of these areas is very important and ensures that there is ad-
equate transparency regarding the current risk situation of the
entire division. All individual operational risks are recorded in a
system and measures are defined to limit the risks. The risk level
is categorised as medium.
SUMMARY AND OUTLOOK
The risks described highlight potential challenges for the
BMW Group. The BMW Group actively considers the risks and
corresponding opportunities and takes them into account in de-
cision-making and planning processes. Drawing on internal and
external momentum, the Risk management system is developed
on an ongoing basis.
Risks
Opportunities
Classification
of the risk level
Change
compared
to prior year
Classification
Change
compared
to prior year
Credit risk
Medium
–
Immaterial
–
Residual value
High
–
Material
–
Interest rate changes
Low
–
Material
–
Operational risks
Medium
–
–
–
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Compliance and Human Rights
COMPLIANCE
Compliance lays the foundation for the long-term success of the
BMW Group. Compliance builds trust in our products and brands
and shapes our public image. Compliance means much more to
the BMW Group than simply observing applicable laws and
Group directives around the globe. It forms part of our identity,
our understanding of leadership, and our living culture of integ-
rity. Compliance creates a binding framework for all our business
activities.
Compliance as a corporate function*
» Compliance is the managerial responsibility of the Board of
Management of BMW AG, executed by creating an appropriate
regulatory and supervisory framework, as well as through regular
and ad-hoc reporting, accompanied by clear communications.
This approach is based on the core belief that compliance with
applicable laws and related internal regulations is the responsi-
bility of all employees. As role models, managers are tasked with
anchoring compliance culture in their area of responsibility and
ensuring compliance requirements and processes are imple-
mented accordingly.
In addition to being responsible for the Group-wide Compliance
Management System, the BMW Group’s Chief Compliance Of-
ficer also manages the Group Compliance division and briefs the
Board of Management and Supervisory Board of BMW AG at
regular intervals. «
Compliance Management System (CMS)*
» The BMW Group’s Company-wide Compliance Management
System (CMS) reinforces the culture of compliance and integrity
and helps reduce sanction and liability risks, as well as risks aris-
ing from other (non-)financial disadvantages, such as reputa-
tional risks. The CMS focuses on adequacy and effectiveness
and is based on the Prevent, Detect, Respond model, which de-
fines specific preventive, monitoring, control and response
measures. Clear assignment of roles and responsibilities is also
essential.
The CMS is tailored to the Group’s risk situation and addresses
all relevant compliance topics. Group-wide, these include Anti-
Corruption and Fraud Prevention, Anti-Money Laundering, Anti-
trust and Human Rights Compliance, Export Control Compliance,
Data Privacy, Product Compliance, External Workforce Compli-
ance and Compliance for regulated Financial Services units. Re-
sponsibility for Data Privacy, Product Compliance, External Work-
force Compliance and Compliance for Regulated Financial Ser-
vices Units outside Group Compliance lies with independent de-
partments. «
Further development of CMS
The CMS is reviewed on a regular basis and refined as needed.
This primarily involves evaluating strategic focus topics, legal
and regulatory requirements and trends, best practices as well
as industry standards, all of which are taken into account from a
risk perspective. The objective is to consistently improve the
CMS. The BMW Group is an active member of various associa-
tions and interest groups, including the German Institute for
Compliance e. V. (DICO), at Board level.
Priority areas in the reporting period were export control due to
the war in Ukraine, and anti-money-laundering, due to the in-
crease in legislative initiatives.
One component of the CMS is the Data Privacy Protection com-
pliance programme, which is the responsibility of Group Data Pri-
vacy Protection. This is based on the Privacy Corporate Rules
and the Binding Corporate Rules, which contractually protect the
transfer of employee data within the Group. Implementation of
the programme is validated through regular reporting by affili-
ated companies and independent audits carried out by Group
Data Privacy Protection.
The Quality Management department is responsible for product
compliance as part of the CMS. with a focus on preventing in-
fringements of product-related laws and official regulations as
well
as
ensuring
compliance
with
directly
associated
requirements for products within the BMW Group’s Automotive
and Motorcycles segments. In the reporting year, the Product
Compliance Programme’s entire working method was specified
in terms of its self-image, systems and processes, and the Ger-
man Association of the Automotive Industry (VDA)’s Product
Compliance System was incorporated as a new external orienta-
tion framework. With a focus on prevention, product compliance
audits further strengthened the Detect processes, and extensive
communication measures strengthened compliance awareness.
As part of the CMS, the Group’s HR department oversees the Ex-
ternal Workforce Compliance programme. This is designed to
safeguard the Group from the repercussions of collaborations
with employees of external entities that are not compliant with
labour law. In the reporting period, External Workforce Compli-
ance was expanded with the aim of ensuring the requirements
for compliant contracts for work and labour are even more firmly
rooted in the Company with regard to the procurement of ser-
vices and cooperation with service providers.
The compliance programme for the specific requirements of reg-
ulated Financial Services Units takes into account the particular-
ities of the financial services business and the risks and regula-
tions involved. The specific focus of the programme – in addition
to the proper implementation of other compliance topics – is on
legislative and regulatory monitoring, consumer protection and
the implementation of financial services supervisory require-
ments.
* This section contains disclosures in line with ESRS G1-3.18a).
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Three-stage approach of the Compliance Management System
The Financial Services segment has established its own dedi-
cated risk management unit, which works closely with the central
Group Compliance function as part of the CMS. On the basis of
an annual analysis, it identifies the possible need for adjustments
and defines appropriate measures. Group-wide implementation
by the BMW Group’s financial services companies is continu-
ously reviewed and reported on to the management of the Fi-
nancial Services segment on a quarterly basis.
A management system also supports the early identification of
risks arising from non-compliance with internal and external reg-
ulations.
In 2024, an external audit of the CMS was conducted with a fo-
cus on the Anti-Corruption and Antitrust Compliance pro-
grammes in accordance with the auditing standard of the Insti-
tute of Public Auditors in Germany (IDW PS 980). This was con-
cluded with an unqualified audit opinion.
Group-wide compliance network
Relevant compliance risks are identified in the business depart-
ments on the basis of internal guidelines; an initial assessment
is then made and measures taken to mitigate them. Group-wide,
around 180 managers perform these tasks for their areas of re-
sponsibility as operational Compliance Responsibles.
Specialist departments worldwide are supported in their work by
the central Group Compliance function, as well as the network of
business unit and division Compliance Officers (heads of relevant
compliance functions), supplemented by around 80 local Com-
pliance Officers (heads of local compliance functions) at
BMW AG’s international subsidiaries. Every Compliance Officer
is tasked with implementing the CMS and compliance pro-
grammes for defined topics in their area of activity, as well as
identifying and realising division-specific compliance measures.
Compliance risk assessment
Code of Conduct and compliance
regulations
Risk-reducing compliance
measures including sanctions
Compliance communication
and training
1
2
3
4
5
6
7
8
10
Compliance IT systems and
processes
Compliance
reporting
9
Notification system
COMPLIANCE ORGANISATION
Compliance investigations
Compliance monitoring
Compliance consulting
COMPLIANCE
CULTURE
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Compliance training
Compliance training opportunities are continuously refined for
specific target groups. The online training courses with case
studies and test questions, repeated every two years, strength-
ens the compliance culture and reinforces compliant behaviour.
This offering is supplemented by target-group-specific class-
room training on antitrust compliance in addition to online train-
ing courses on data privacy and product compliance.
Digitalisation supports compliance
IT-based compliance systems are used for transparent and effi-
cient documentation, assessment and approval of compliance-
relevant matters Group-wide. This includes topics such as
money laundering and sanctions lists, exchange activities with
competitors, business partner due diligence and verifying the le-
gal admissibility of benefits in kind. The data collected in this way
forms the basis for the compliance risk assessment.
Compliance and notification systems1
» Employees with questions or concerns relating to compliance
can discuss these matters with their managers or relevant de-
partments and, specifically, with the Compliance functions. The
Compliance contact serves as a further point of contact for both
employees and external parties.
Reports of potential compliance violations can also be submitted
anonymously and confidentially in several languages via the
BMW Group SpeakUP Line notification system or via the ombud-
sperson. Incoming information is addressed in accordance with
the BMW Group guideline “Indications of compliance violations”.
The BMW Group protects information providers in two ways:
first, individuals may provide information without disclosing their
identity; second, no one providing information faces retaliatory
action. All queries and concerns relating to compliance are doc-
umented and processed using a Group-wide electronic case
management system. If necessary, Corporate Audit, Corporate
Security, the legal departments or the Works Council are brought
in. «
CMS monitoring and controls2
» The CMS provides differentiated monitoring levels for review-
ing observance and implementation of compliance rules and pro-
cesses at regular intervals. In addition to the direct checks per-
formed by Compliance Responsibles as business managers,
risks are further reduced by additional measures integrated into
business processes, which generally form part of the ↗ Internal
Control System.
Compliance investigations are carried out when the need arises
or ad hoc as part of the Detect function of central Group Compli-
ance. These include internal investigations in connection with of-
ficial investigations, which serve to clarify the facts internally.
Risk-based compliance audits aimed at identifying specific com-
pliance risks are focused on antitrust law as well as on the issues
of export control and money laundering prevention. Corporate
Audit also monitors adherence to compliance requirements by
business managers, as well as selected elements of the CMS.
All control checks are geared towards reducing compliance risks.
Any infringements are immediately remedied, with an emphasis
on reducing the risk of repeat offences as far as possible. Where
infringements can be traced to an individual, that person will be
appropriately sanctioned, in accordance with the processes de-
fined for this purpose.
As part of the annual internal review of the BMW Group CMS, its
appropriateness and effectiveness are assessed on the basis of
defined criteria. In addition to the assessment of the Compliance
Responsibles, the measurement also takes into account the as-
sessment of compliance and other governance functions. Our
overall statement on the adequacy and effectiveness of the In-
ternal Control and Risk Management System, including the CMS,
can be found in the section ↗ Adequacy and effectiveness of the Internal
Control System and Risk Management System. «
Regular compliance reporting to the Board of Management
and Supervisory Board
The Board of Management and Supervisory Board of BMW AG,
the Audit Committee (a committee of the Supervisory Board) and
the company’s other executive committees are briefed regularly
(at least twice a year), as well as on a case-by-case basis, by the
CCO.
1 This section contains disclosures in line with ESRS S1-3.33; ESRS S2-3.27; ESRS S4-1.16b);
ESRS G1-1.10a), e); ESRS G1-3.18a).
2 This section contains disclosures in line with ESRS G1-3.18a).
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Outlook
The outlook and ↗ Risks and Opportunities of the BMW Group pre-
sented in this report reflect the expected development in 2025
from the perspective of Group management. In line with the
Group’s performance management, the outlook covers a period
of one year.
The continuous forecasting process applied within the BMW
Group ensures that it is constantly ready to take advantage of
opportunities as they arise, but also to react appropriately to any
unexpected risks. The principal ↗ Risks and Opportunities are de-
scribed in detail in the section of the same name and concern all
performance indicators. Actual outcomes may, however, deviate
from the outlook due to unexpected events.
Economic outlook
The International Monetary Fund currently expects the global
economy to grow by 3.3% in 2025. The greatest risks include
geopolitical developments, trade conflicts and a more gradual
loosening of monetary policy. Further information on political and
global economic risks is available in the ↗ Risks and Opportunities
section.
In 2025, the eurozone could see somewhat stronger growth of
1.0% compared to the previous year. The reasons for this are
lower inflation, additional moderate cuts in key interest rates and
a slight increase in private consumer spending. However, higher
tariffs in some countries could weaken growth. Germany’s econ-
omy is also expected to expand, albeit at a very low level
(+0.3%). Some countries, such as France (+0.7%), Italy
(+0.7%) and Spain (+2.4%), are expected to see slightly lower
rates of GDP growth than in the previous year.
An uptick in economic output (+1.2%) is forecast for the UK due
to a fall in interest rates and increased government spending.
Bolstered by tax cuts for companies and households and by de-
regulation, the US economy is expected to grow by 2.2% in
2025. However, tariff increases and lower immigration could
slow the momentum.
In China, the government is expected to bolster the domestic
economy amid the ongoing real estate crisis and weak domestic
demand by instituting more expansive monetary and fiscal poli-
cies. Given these conditions, economic growth in 2025 is ex-
pected to reach 4.5%. At the People’s Congress, the Chinese
government announced a growth target of around 5% in con-
junction with further state support measures.
Forecasts for Japan’s economy have recently been revised
slightly upwards due to a strong fourth quarter in the previous
year. However, at +1.2%, overall growth in 2025 is still expected
to surpass the previous year’s level.
Currency markets and international interest rate
environment
Currencies of particular importance for the BMW Group’s inter-
national operations are the Chinese renminbi, the British pound,
the US dollar, the Japanese yen and the South Korean won.
In the Eurozone, it is currently assumed that inflation rates will
approach the 2% target again. This may lead to further moder-
ate key interest rate cuts during the outlook period. However,
higher tariffs in some countries could cause inflation to rise again.
Inflation in the USA is expected to remain above the target of
2.0% due to higher tariffs and a tight labour market resulting
from stricter immigration policies. The US Federal Reserve could
therefore lower key interest rates more slowly, which would likely
lead to an appreciation of the dollar against the euro.
In the UK, too, key interest rates are likely to continue to fall in
2025, and the pound/euro exchange rate is expected to remain
stable.
In Japan, interest rates are expected to rise slightly in 2025.The
yen is likely to remain weak but stable against the euro.
Low inflation in China could lead to a more expansionary mone-
tary policy on the part of the Chinese central bank, nevertheless,
the renminbi is expected to appreciate slightly against the euro.
The South Korean won is expected to recover somewhat from its
lower level and regain value in 2025.
General developments on international automobile markets
Global automobile markets could see slight growth in 2025
against the backdrop of favourable economic forecasts. Positive
momentum is expected to come mainly from the USA and China,
In China, growth in the lower price ranges is expected, as it was
in 2024. In Europe, the market for electrified vehicles is expected
to grow due to stricter CO2 regulations. However, the BMW Group
expects the overall market to decline.
International motorcycle markets
In 2025, the BMW Group expects the world’s motorcycle mar-
kets in the 500 cc plus class to remain stable overall. Europe is
likely to see slight growth, while the USA is expected to stabilise.
In China, the development of the motorcycle market in the 500 cc
plus class is forecast to remain in line with last year’s level. The
motorcycle market in Brazil is expected to remain stable in 2025,
as in the previous year.
OUTLOOK
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Remuneration Report
Other Information
Outlook
Expected consequences for the BMW Group
Developments on international automobile markets have a direct
impact on the BMW Group. A challenging competitive environ-
ment and macroeconomic, trade and geopolitical developments
could all have a significant impact on business performance. The
close cooperation between our sales network and our production
network and a flexible vehicle architecture allow the BMW Group
to respond even to unforeseeable developments. ↗ Risks and
Opportunities
Assumptions used in the outlook
The outlook contains forward-looking statements based on the
BMW Group’s expectations and assessments and may be influ-
enced by unforeseeable events. As a result, actual outcomes
may vary, either positively or negatively, from the expectations
described below due to changes in the political and economic en-
vironment and other factors.
The following outlook covers a forecast period of one year and is
based on the composition of the BMW Group during that time.
The outlook takes account of all information available at the time
of reporting that could have an impact on the BMW Group’s per-
formance.
The expectations contained in the outlook are based on the
BMW Group’s forecast for 2025 and reflect its status at the time
of preparing the Group Financial Statements. The basis for the
preparation of and the principal assumptions used in the fore-
casts – which consider the consensus opinions of leading organ-
isations, such as economic research institutes and banks – are
set out below.
The BMW Group is anticipating the following developments in
the 2025 financial year:
Demand is expected to increase in 2025 due to further stabilisa-
tion of inflation and additional moderate cuts in key interest rates
in many countries.
In China, the BMW Group expects the market environment to re-
main challenging as the level of competition continues to in-
crease. Vehicles in the lower price segments are likely to account
for the majority of growth. The price level in China is expected to
be the same as in the second half of 2024 and is therefore lower
than in the first half of the previous year. In the USA, the positive
market development is expected to continue in view of the robust
economic situation. In Europe, growth is expected to be driven by
electrified vehicles due to stricter CO2 regulations. Full-year rev-
enues per vehicle in the Automotive segment are expected to be
in line with last year’s figure.
The situation in the raw material markets is expected to improve
further in 2025. However, currency effects are having a negative
impact on earnings, leading to an overall negative impact on
earnings compared to the previous year.
The challenging situation in the supplier environment and the im-
pact of inflation in previous years are expected to continue to re-
sult in increased support measures for the supply chain.
The anti-subsidy tariffs imposed by the EU in 2024 on battery-
powered electric vehicles from China, against which the
BMW Group has submitted a legal challenge to the European
Commission, will have a negative impact in the mid three-digit
million euro range on the financial year 2025 results and are in-
cluded in the forecast. While the Chinese government could po-
tentially implement countermeasures as the year progresses,
they are not included in the forecast.
The tariff increases imposed by the new US administration on
imports from China (a 20% tariff on all products imported from
China) and the Chinese government’s countermeasures (includ-
ing a 10% tariff on imported vehicles with engine sizes over 2.5
litres) will have a negative impact on earnings in the low three-
digit million range and are included in the forecast. US tariffs will
have the biggest impact on vehicles exported from the United
States to China, as well as on production parts and components
imported from China to the United States.
On March 4, tariff increases by the US administration on imports
from Canada and Mexico of 25% came into effect. These will
have a negative mid-three-digit million impact on the results and
are included in the outlook.
The outlook also includes tariff increases on steel and aluminium
imported to the USA with a high-double-digit million negative im-
pact on earnings.
The BMW Group has thus factored into its outlook for the 2025
financial year the effects of all tariff increases that had come into
force as of 12 March. Given the volatile geopolitical situation, it is
possible that tariffs maybe be reduced or further increased dur-
ing the financial year.
The situation in the Middle East remained tense throughout
2024. However, in January 2025, Israel and Hamas reached an
agreement on the initial phase of a ceasefire with a six-week lull
in hostilities. Negotiations are currently underway to extend the
ceasefire. As in the 2024 financial year, this conflict does not
have a significant effect on the BMW Group’s operations at pre-
sent since the Group does not operate directly in the region. Our
outlook does not account for any further escalation of the situa-
tion.
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Remuneration Report
Other Information
Outlook
The war in Ukraine and the temporary suspension of US military
aid, and the resulting discussions in Europe about further sup-
port, are being closely monitored. All applicable restrictions have
been factored into the outlook.
In view of the growing unpredictability of macroeconomic and ge-
opolitical developments, actual economic growth in some re-
gions may deviate from expected trends and outcomes. Particu-
lar sources of uncertainty include trade and tariff policy, security
policy and a possible further escalation of international trade
conflicts.
New strategic targets for CO2e emissions have been established
for the upcoming financial year. These targets reflect the close
interconnection between the supply chain and the use phase, as
well as the requirements of ESRS reporting. The most significant
performance indicators have been defined in line with these new
targets. Starting in the 2025 financial year, the key performance
indicators CO2e emissions (Scope 1 and 2) will be reported at
Group level in millions of tonnes. Additionally, Scope 3 CO2e
emissions from the supply chain and the use phase will be re-
ported together within the Automotive segment in millions of
tonnes. This replaces the previously reported performance indi-
cators of CO2e emissions from the BMW Group locations for
Scope 1 and 2 per vehicle produced and the carbon emissions of
the EU new car fleet in g/km.
Outlook for the BMW Group – key performance indicators
The BMW Group expects the full availability of new models such
as the BMW 5 Series, the BMW X3* and the updated MINI model
range to boost deliveries. The launch of the BMW 2 Series Gran
Coupé* is also expected to provide positive momentum.
Deliveries of BMW, MINI and Rolls-Royce brand vehicles in the
Automotive segment are expected to rise slightly year-on-year
due to an increase in demand, full availability of new models and
the updated MINI model range. The share of all-electric cars rel-
ative to total deliveries will increase slightly compared to 2024.
Depreciation will increase due to investments and capitalised de-
velopment costs in previous years. The electrification and digital-
isation strategy will continue in 2025, although costs and invest-
ments are expected to decline after peaking in 2024. Expendi-
ture in the 2025 financial year is connected with preparations for
the launch of the NEUE KLASSE models, including the ongoing
development of the sixth generation of our battery technology.
Rising deliveries and easing tensions in the raw materials mar-
kets are having a positive impact in the financial year. By con-
trast, currency effects, the ongoing challenges in China, the ad-
ditional tariffs and the continued increased support measures for
the supply chain are weighing on earnings. Against this back-
drop, the EBIT margin is expected to be in the range of 5% to
7%. The RoCE for the Automotive segment is expected to finish
within a range between 9% and 13%.
A slight increase in absolute Scope 1 and 2 CO2e emissions is
forecast. Measures to reduce the company’s own CO2e emis-
sions are more than offset by a higher production volume com-
pared to the previous year.
The absolute Scope 3 CO2e emissions from the supply chain and
use phase in the Automotive segment are also expected to rise
slightly, but the increase will be disproportionately low compared
to the volume.
The stable demand situation can also be seen in the Motorcycles
segment, where deliveries are predicted to increase slightly ow-
ing to the full availability of models, including the BMW R 1300
GS Adventure. The EBIT margin is expected to range between
5.5% and 7.5% and the segment RoCE between 13% and
17%.
The RoE in the Financial Services segment is predicted to finish
within a range between 13% and 16%. The downward trend in
pre-owned vehicle markets is expected to continue, leading to a
further decline in revenues from remarketing lease returns com-
pared to 2024.
Group profit before tax will remain at the previous year's level
based on the developments mentioned above. For this specific
key performance indicator, beginning with the financial year
2025, this reflects a change compared to 2024 in the range of
between +/– 4.9%.
The aforementioned targets will be met with a number of em-
ployees that is in line with last year’s level. The share of women
in management positions in the BMW Group is expected to in-
crease slightly. From the 2025 financial year onwards, the per-
formance indicators related to employees will include fully con-
solidated subsidiaries in accordance with ESRS reporting re-
quirements.
The BMW Group’s actual business performance may also devi-
ate from current expectations due to the risks and opportunities
discussed below in the ↗ Risks and Opportunities section.
* ↗ Consumption and Carbon Disclosures.
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Other Information
Outlook
BMW Group key performance indicators
2024
Reported
2025
Outlook
G R O U P
Profit before tax1
€ million
10,971
At previous year's level
Employees at year-end2
157,457
At previous year's level
Share of women in management positions3
%
21.6
Slight increase
CO2e emissions scope 1 and 24
million tonnes
0.810
Slight increase
A U T O M O T I V E S E G M E N T
EBIT margin
%
6.3
Between 5 and 7
Return on capital employed (RoCE)
%
11.4
Between 9 and 13
Deliveries
units
2,450,854
Slight increase
Share of all-electric cars in deliveries
%
17.4
Slight increase
CO2e emissions scope 3 (supply chain and use phase)5
million tonnes
125.1
Slight increase
M O T O R C Y C L E S S E G M E N T
EBIT margin
%
6.1
Between 5.5 and 7.5
Return on capital employed (RoCE)
%
15.5
Between 13 and 17
Deliveries
units
210,385
Slight increase
F I N A N C I A L S E R V I C E S S E G M E N T
Return on equity (RoE)
%
15.1
Between 13 and 16
1 Beginning with the 2025 financial year, the range has been adjusted. For information on terminology and ranges, see ↗ Glossary.
2 According to ESRS reporting, fully consolidated companies will be reported from the financial year 2025 onwards (until 31.12.2024: all consolidated and non-consolidated companies in which the BMW
Group holds more than 50% of the shares).
3 The change in the number of employees from the financial year 2025 onwards (see footnote 2) also applies to the share of women.
4 Total Scope 1 and 2 CO2e emissions, excluding locations where the Group does not have operational control, including biogenic emissions.
5 CO2e emissions from the categories of purchased goods and services, transport logistics, and use phase for the Automotive segment, including biogenic emissions.
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Disclosures Relevant for Takeovers and Explanatory Comments
Composition of subscribed capital
As of 31 December 2024, the subscribed capital (share capital)
of
BMW AG
amounted
to
€
638,716,075
(2023:
€ 638,716,075) and, in accordance with § 5 of the Articles of
Incorporation, is subdivided into 579,795,667 shares of com-
mon stock (90.78%) (2023: 579,795,667/90.78%), each with
a par value of € 1 and 58,920,408 (9.22%) (2023:
58,920,408/9.22%) shares of non-voting preferred stock, each
with a par value of € 1. The Company’s shares are issued to the
bearer.
The rights and duties of shareholders derive from the German
Stock Corporation Act (AktG) in conjunction with the Group’s Ar-
ticles of Incorporation, the full text of which is available at
↗ www.bmwgroup.com. The right of shareholders to have their
shares evidenced is excluded in accordance with the Articles of
Incorporation. The voting power attached to each share corre-
sponds to its par value. Each € 1 of par value of share capital
represented in a vote entitles the holder to one vote (§ 19 no. 1
of the Articles of Incorporation).
The Company’s shares of preferred stock are shares as defined
in §§ 139 et seq. AktG, which carry a cumulative preferential
right in terms of the allocation of profit and for which voting rights
are excluded. These shares confer voting rights only in excep-
tional cases stipulated by law, in particular if the preference
amount has either not been paid or not been paid in full within
one year and the arrears are not paid in the subsequent year
alongside the full preference amount due for that year. With the
exception of voting rights, holders of shares of preferred stock
are entitled to the same rights as holders of shares of common
stock. In addition, § 25 (3) of the Articles of Incorporation confers
preferential treatment to the non-voting shares of preferred stock
with regard to the appropriation of the Company’s unappropri-
ated profit. Accordingly, the unappropriated profit is required to
be appropriated in the following order:
(a) subsequent payment of any arrears on dividends on non-
voting shares of preferred stock in the order of accruement,
(b) payment of an additional dividend of € 0.02 per € 1 par
value on non-voting preferred stock, and
(c) uniform payment of any other dividends on shares of com-
mon and preferred stock, provided the shareholders do not
resolve otherwise at the Annual General Meeting.
Restrictions affecting voting rights or the transfer of shares
In addition to shares of common stock, the Company has also
issued non-voting shares of preferred stock. Further information
can be found in the section ↗ Composition of subscribed capital.
As of 31 December 2024, the Company owned a total of
16,456,756 common and preferred stock (2023: 5,161,255),
from which the Company has no rights pursuant to § 71 b AktG.
The Company regularly provides information about the current
status of the share buyback on its website.
When the Company issues non-voting shares of common or pre-
ferred stock to employees in conjunction with its Employee Share
Programme, these shares are generally subject to a Company-
imposed blocking period of four years in compliance with private
law, calculated from the beginning of the calendar year in which
the shares were issued.
Contractual holding period arrangements also apply to shares of
common stock acquired by Board of Management members and
senior department heads in conjunction with share-based remu-
neration programmes. ↗ Remuneration Report (on shareholding periods
for members of the Board of Managers).
* Information according to § 289a and § 315a HGB.
DISCLOSURES RELEVANT FOR TAKEOVERS*
AND EXPLANATORY COMMENTS
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Disclosures Relevant for Takeovers and Explanatory Comments
Direct or indirect investments in capital exceeding 10% of
voting rights
Based on the information available to the Company, the follow-
ing direct or indirect holdings exceeding 10% of the voting rights
at the end of the reporting period were held at the stated report-
ing date:1
Shareholder
Direct share
of voting rights
Indirect share
of voting rights
Stefan Quandt, Germany
0.2
26.62
AQTON SE, Bad Homburg v. d. Höhe, Germany
9.4
17.23
AQTON Verwaltung GmbH, Bad Homburg v. d. Höhe, Germany
–
17.24
AQTON GmbH & Co. KG für Automobilwerte, Bad Homburg v. d. Höhe, Germany
17.2
–
Susanne Klatten, Germany
0.2
21.55
Susanne Klatten Beteiligungs GmbH, Bad Homburg v. d. Höhe, Germany
21.5
–
1 Based on voluntary notifications provided by the listed shareholders as at 31 December 2024.
2 Controlled entities, of which 3% or more are attributed: AQTON SE, AQTON Verwaltung GmbH, AQTON GmbH & Co. KG für Automobilwerte
3 Controlled entities, of which 3% or more are attributed: AQTON Verwaltung GmbH, AQTON GmbH & Co. KG für Automobilwerte.
4 Controlled entities, of which 3% or more are attributed: AQTON GmbH & Co. KG für Automobilwerte.
5 Controlled entities, of which 3% or more are attributed: Susanne Klatten Beteiligungs GmbH
The percentages of the share capital with voting rights disclosed
above may have changed subsequent to the stated date if these
changes were not required to be reported to the Company. As
the Company’s shares are issued to bearer, the Company is gen-
erally aware of changes in shareholdings only if such changes
are subject to mandatory notification requirements.
Shares with special rights that confer control rights
There are no shares with special rights that confer control rights.
Control of voting rights when employees participate in
capital and do not directly exercise their control rights
Like all other shareholders, employees exercise their control
rights pertaining to any shares they have acquired in conjunction
with the Employee Share Programme and/or the share-based
remuneration programme directly on the basis of relevant legal
provisions and the Company’s Articles of Incorporation.
Statutory regulations and provisions contained in the
Articles of Incorporation governing the appointment and
removal of members of the Board of Management and
changes to the Articles of Incorporation
The appointment or removal of members of the Board of Man-
agement is based on the rules contained in §§ 84 et seq. AktG
in conjunction with § 31 of the German Co-Determination Act
(MitbestG).
Amendments to the Articles of Incorporation must comply with
§§ 179 et seq. AktG. Amendments must be decided upon by the
shareholders at the Annual General Meeting (§ 119 (1) no. 6,
§ 179 (1) sentence 1 AktG). The Supervisory Board is authorised
to adopt amendments to the Articles of Incorporation that only
concern the wording (§ 179 (1) sentence 2 in conjunction with
§ 15 (3) of the Articles of Incorporation). Resolutions are passed
at the Annual General Meeting by a simple majority of shares
cast unless otherwise explicitly required by binding provisions of
law or, if a majority of share capital is required, by a simple ma-
jority of shares represented in the vote (§ 21 (1) of the Articles of
Incorporation).
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Disclosures Relevant for Takeovers and Explanatory Comments
Authorisations of the Board of Management, in particular
with respect to the issuing or buying back of shares
The Board of Management is authorised to buy back shares and
sell repurchased shares in situations specified in § 71 AktG, for
example to avert serious and imminent damage to the Company
and/or to offer shares to persons either currently or previously
employed by BMW AG or one of its affiliated companies.
In accordance with the resolution taken at the Annual General
Meeting on 11 May 2022, the Board of Management is author-
ised until 10 May 2027 to acquire treasury shares (shares of
common and/or preferred stock) representing a total of up to
10% of the share capital in place at the date on which the reso-
lution was adopted or – if lower – at the date on which the au-
thorisation is exercised.
Significant agreements of the Company taking effect in the
event of a change in control following a takeover bid
BMW AG is party to the following major agreements, which con-
tain provisions that would apply in the event of a change in con-
trol or the acquisition of control as a result of a takeover bid:
—
An agreement concluded with an international consortium
of banks relating to a syndicated credit line, which was not
being utilised at the balance sheet date, entitles the lending
banks to give extraordinary notice to terminate the credit
line, such that all outstanding amounts, including interest,
would fall due with immediate effect if one or more parties
jointly acquire direct or indirect control of BMW AG. The term
“control” is defined as the acquisition of more than 50% of
the share capital of BMW AG, the right to receive more than
50% of the dividend, or the right to direct the affairs of the
Company or appoint the majority of members of the Super-
visory Board.
—
BMW AG is the guarantor for all obligations under the agree-
ment regarding the joint venture BMW Brilliance Automotive
Ltd. in China. This agreement generally grants an extraordi-
nary right of termination to either joint venture partner in the
event of a change in control at either one of the parties, or if
more than 25% of the shares of the other party are acquired
by a third party – either directly or indirectly – or if the other
party is merged with another legal entity. Termination of the
joint venture agreement may lead to the dissolution of the
joint venture, with an optional purchase right for BMW AG
(or the partner) to acquire the shares of the other partner or
to the liquidation of the joint venture company.
—
BMW AG has entered into framework agreements with fi-
nancial institutions for trading in derivative financial instru-
ments (ISDA Master Agreements). In the event of a signifi-
cant deterioration in creditworthiness, the contracting par-
ties are entitled to terminate the agreement with immediate
effect if the deterioration in creditworthiness results from a
direct or indirect acquisition of the majority of the capital in a
contracting party, which confers the right to elect the major-
ity of the Supervisory Board members (or a comparable
body) on a contracting party, from any other transaction that
enables control over a contracting party or from a merger or
transfer of assets. In the event of extraordinary termination,
all current transactions will be settled.
—
BMW AG and Mercedes-Benz Group AG have entered into
a joint venture agreement relating to mobility services, which
includes the areas of ride-hailing and vehicle charging, and
entitles both Mercedes-Benz Group AG and BMW AG (here-
after referred to as “principals”) to initiate a bidding proce-
dure in the event that (i) the other principal receives notice in
accordance with § 33 of the German Securities Trading Act
(WpHG) that – including shares attributed pursuant to § 34
WpHG – a shareholding of more than 50% has been at-
tained or, in accordance with § 20 of the German Stock Cor-
poration Act (AktG) that a shareholding of more than 50%
has been attained or (ii) a shareholder or a third party – in-
cluding shares attributed pursuant to § 30 WpHG – holds
more than 50% of the voting rights or shares in the other
principal, or (iii) the other principal has concluded a control
agreement as a dependent company. The outcome of such
a bidding procedure is that the joint venture will go to the
principal making the highest bid.
—
Several supply and development contracts between
BMW AG and various industrial customers relating to the
sale of components for drivetrain systems, grant an
extraordinary right of termination to the relevant industrial
customer in specified cases of a change in control at
BMW AG (for example if BMW AG merges with a third party
or is taken over by a third party; an automobile manufacturer
acquires more than 50% of the voting rights or share capital
of BMW AG).
—
Together with AUDI AG, Mercedes-Benz Group AG and
other companies, BMW AG is party to the shareholder
agreement relating to There Holding B.V., which is the ma-
jority shareholder of the HERE Group, a provider of digital
maps. In accordance with the shareholder agreement, each
contracting party is required to offer its directly or indirectly
held shares in There Holding B.V. for sale to the other share-
holders in the event of a change in control. A change in con-
trol of BMW AG arises if a person takes over or loses control
of BMW AG, with control defined as (i) holding or having
control over more than 50% of the voting rights, (ii) the pos-
sibility to control more than 50% of voting rights exercisable
at Annual General Meetings on all or nearly all matters, or
(iii) the right to determine the majority of members of the
Board of Management or the Supervisory Board. Further-
more, a change in control occurs if competitors of the
HERE Group, or certain potential competitors of the
HERE Group from the technology sector, acquire at least
25% of the share capital or voting rights of BMW AG. If none
of the other shareholders acquire these shares, the other
shareholders are entitled to resolve that There Holding B.V.
be dissolved.
—
Together with Great Wall Motor Company Limited, BMW AG
has established Spotlight Automotive Ltd. in China as a joint
operation. The underlying agreement generally grants an
extraordinary right of termination to either joint operation
partner in the event that – either directly or indirectly – more
than 25% of the shares of the other party are acquired by a
third party or the other party is merged with another legal
entity. The termination of the agreement may result in the
sale of the shares to the other joint operation partner, or in
the liquidation of the entity.
267
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Disclosures Relevant for Takeovers and Explanatory Comments
—
The software license agreements concluded between
BMW AG and Google LLC for the use of “Projected Mode”
in BMW vehicles’ head units grant both parties the right to
extraordinary termination in the event of a change of control
(not further defined in the agreement).
—
The agreement concluded between BMW AG and Toyota
Motor Corporation to supply fuel cells can be extraordinarily
terminated by either party if the other party merges or is con-
solidated with another company.
Compensation agreements with members of the Board of
Management or with employees in the event of a takeover
bid
The BMW Group has not concluded any compensation agree-
ments with members of the Board of Management or with em-
ployees for situations involving a takeover offer.
GROUP FINANCIAL
STATEMENTS
03
268
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
269
Income Statement for Group and Segments
270
Statement of Comprehensive Income for Group
271
Balance Sheet for Group and Segments at 31 December 2024
273
Cash Flow Statement for Group and Segments
275
Statement of Changes in Equity for Group
277
Notes to the Group Financial Statements
277
Principles
289
Notes to the Income Statement
296
Notes to the Statement of Comprehensive Income
298
Notes to the Balance Sheet
319
Other Disclosures
346
Segment Information
349
List of Investments at 31 December 2024
269
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Income Statement for Group and Segments
Group
Automotive
Motorcycles
Financial Services
Other Entities
Eliminations
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
in € million
Note
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Revenues
7
142,380
155,498
124,917
132,277
3,220
3,214
38,562
36,227
14
11
– 24,333
– 16,231
Cost of sales
8
– 119,485
– 125,809
– 107,729
– 109,920
– 2,721
– 2,656
– 34,183
– 31,548
–
–
25,148
18,315
Gross profit
22,895
29,689
17,188
22,357
499
558
4,379
4,679
14
11
815
2,084
Selling and administrative expenses
9
– 11,296
– 11,025
– 9,357
– 9,195
– 296
– 303
– 1,675
– 1,559
– 41
– 34
73
66
Other operating income
10
1,411
1,045
1,335
967
4
6
59
63
23
13
– 10
– 4
Other operating expenses
10
– 1,501
– 1,227
– 1,273
– 1,148
– 9
– 2
– 252
– 128
– 21
– 3
54
54
Profit/loss before financial result
11,509
18,482
7,893
12,981
198
259
2,511
3,055
– 25
– 13
932
2,200
Result from equity accounted investments
24
– 14
– 159
– 14
– 159
–
–
–
–
–
–
–
–
Interest and similar income
11
655
701
1,363
1,389
5
7
10
5
4,593
3,403
– 5,316
– 4,103
Interest and similar expenses
11
– 573
– 656
– 1,572
– 1,502
– 5
– 8
– 20
– 11
– 3,214
– 2,372
4,238
3,237
Other financial result
12
– 606
– 1,272
– 126
– 67
–
–
37
– 87
– 517
– 1,118
–
–
Financial result
– 538
– 1,386
– 349
– 339
–
– 1
27
– 93
862
– 87
– 1,078
– 866
Profit/loss before tax
10,971
17,096
7,544
12,642
198
258
2,538
2,962
837
– 100
– 146
1,334
Income taxes
13
– 3,293
– 4,931
– 2,262
– 3,685
– 60
– 75
– 735
– 861
– 241
29
5
– 339
Net profit/loss
7,678
12,165
5,282
8,957
138
183
1,803
2,101
596
– 71
– 141
995
Attributable to non-controlling interests
388
875
392
857
–
–
– 5
17
1
1
–
–
Attributable to shareholders of the BMW AG
7,290
11,290
4,890
8,100
138
183
1,808
2,084
595
– 72
– 141
995
Basic earnings per share of common stock in €
14
11.62
17.67
Basic earnings per share of preferred stock in €
14
11.64
17.69
Dilutive effects
–
–
Diluted earnings per share of common stock in €
14
11.62
17.67
Diluted earnings per share of preferred stock in €
14
11.64
17.69
INCOME STATEMENT
FOR GROUP AND SEGMENTS
270
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of Comprehensive Income for Group
in € million
Note
2024
2023
Net profit/loss
7,678
12,165
Remeasurement of the net liability for defined benefit pension plans
33
302
– 142
Income taxes
– 50
24
Items not expected to be reclassified to the income statement in the future
252
– 118
Marketable securities (at fair value through other comprehensive income)
2
113
Derivative financial instruments
– 3,306
– 1,808
Costs of hedging
919
766
Other comprehensive income from equity accounted investments
7
26
Income taxes
678
281
Currency translation foreign operations
1,108
– 1,772
Items that can be reclassified to the income statement in the future
– 592
– 2,394
Other comprehensive income for the period after tax
19
– 340
– 2,512
Total comprehensive income
7,338
9,653
Total comprehensive income attributable to non-controlling interests
324
607
Total comprehensive income attributable to shareholders of BMW AG
7,014
9,046
TT
STATEMENT OF COMPREHENSIVE INCOME
FOR GROUP
271
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Balance Sheet for Group and Segments at 31 December 2024
Group
Automotive
Motorcycles
Financial Services
Other Entities
Eliminations
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
in € million
Note
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
A S S E T S
Intangible assets
21
20,220
20,022
19,630
19,439
220
216
369
366
1
1
–
–
Property, plant and equipment
22
39,581
35,266
38,909
34,639
588
533
84
94
–
–
–
–
Leased products
23
48,838
43,118
–
–
–
–
57,249
50,415
–
–
– 8,411
– 7,297
Investments accounted for using the equity method
24
553
443
553
443
–
–
–
–
–
–
–
–
Other investments
1,099
1,197
14,662
14,697
–
–
25
28
23,187
23,084
– 36,775
– 36,612
Receivables from sales financing
25
55,149
50,517
–
–
–
–
55,299
50,657
–
–
– 150
– 140
Financial assets
26
834
1,387
315
588
–
–
192
256
471
643
– 144
– 100
Deferred tax
13
3,244
2,431
3,336
3,216
–
–
597
506
57
22
– 746
– 1,313
Other assets
28
1,827
1,537
2,061
2,296
18
18
2,906
2,852
41,499
35,249
– 44,657
– 38,878
Non-current assets
171,345
155,918
79,466
75,318
826
767
116,721
105,174
65,215
58,999
– 90,883
– 84,340
Inventories
29
24,387
23,719
22,372
22,121
919
905
1,096
693
–
–
–
–
Trade receivables
30
2,834
4,162
2,449
3,875
132
102
252
184
1
1
–
–
Receivables from sales financing
25
38,569
36,838
–
–
–
–
38,569
36,838
–
–
–
–
Financial assets
26
2,565
4,131
1,561
2,888
–
–
613
558
423
692
– 32
– 7
Current tax
27
1,316
1,199
715
911
–
–
154
102
447
186
–
–
Other assets
28
7,429
7,596
23,152
24,925
17
7
4,375
3,753
64,227
57,638
– 84,342
– 78,727
Cash and cash equivalents
19,287
17,327
14,853
13,590
21
36
3,103
3,090
1,310
611
–
–
Current assets
96,387
94,972
65,102
68,310
1,089
1,050
48,162
45,218
66,408
59,128
– 84,374
– 78,734
Total assets
267,732
250,890
144,568
143,628
1,915
1,817
164,883
150,392
131,623
118,127
– 175,257
– 163,074
BALANCE SHEET FOR GROUP AND SEGMENTS
AT 31 DECEMBER 2024
272
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Balance Sheet for Group and Segments at 31 December 2024
Group
Automotive
Motorcycles
Financial Services
Other Entities
Eliminations
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
(unaudited supplementary
information)
in € million
Note
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
E Q U I T Y A N D L I A B I L I T I E S
Subscribed capital
31
639
639
–
–
–
–
–
–
–
–
–
–
Capital reserves
31
2,456
2,456
–
–
–
–
–
–
–
–
–
–
Revenue reserves
31
92,812
89,072
–
–
–
–
–
–
–
–
–
–
Accumulated other equity
31
– 2,090
– 2,071
–
–
–
–
–
–
–
–
–
–
Treasury shares
31
– 1,502
– 500
–
–
–
–
–
–
–
–
–
–
Equity attributable to shareholders of BMW AG
31
92,315
89,596
–
–
–
–
–
–
–
–
–
–
Non-controlling interests
2,688
3,327
–
–
–
–
–
–
–
–
–
–
Equity
95,003
92,923
58,562
61,971
–
–
16,954
16,573
61,550
56,031
– 42,063
– 41,652
Pension provisions
33
222
427
134
326
–
7
16
17
72
77
–
–
Other provisions
34
7,830
7,797
7,411
7,559
107
80
312
158
–
–
–
–
Deferred tax
13
2,621
2,797
2,500
2,601
–
–
2,099
2,603
92
226
– 2,070
– 2,633
Financial liabilities
36
66,770
52,880
3,145
2,726
1
2
21,205
18,003
42,563
32,249
– 144
– 100
Other liabilities
37
7,597
7,065
8,271
8,041
779
808
43,461
36,848
410
485
– 45,324
– 39,117
Non-current provisions and liabilities
85,040
70,966
21,461
21,253
887
897
67,093
57,629
43,137
33,037
– 47,538
– 41,850
Other provisions
34
8,543
9,240
7,813
8,547
130
128
549
558
51
7
–
–
Current tax
35
1,131
1,401
737
1,045
–
–
241
141
153
215
–
–
Financial liabilities
36
44,491
42,130
3,012
1,680
–
–
26,901
25,392
14,610
15,065
– 32
– 7
Trade payables
38
14,126
15,547
12,556
13,906
561
566
997
1,071
12
4
–
–
Other liabilities
37
19,398
18,683
40,427
35,226
337
226
52,148
49,028
12,110
13,768
– 85,624
– 79,565
Current provisions and liabilities
87,689
87,001
64,545
60,404
1,028
920
80,836
76,190
26,936
29,059
– 85,656
– 79,572
Total equity and liabilities
267,732
250,890
144,568
143,628
1,915
1,817
164,883
150,392
131,623
118,127
– 175,257
– 163,074
BALANCE SHEET FOR GROUP AND SEGMENTS
AT 31 DECEMBER 2024
273
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Cash Flow Statement for Group and Segments
Group
Automotive
Financial Services
(unaudited supplementary information)
(unaudited supplementary information)
in € million
2024
2023
2024
2023
2024
2023
Profit/loss before tax
10,971
17,096
7,544
12,642
2,538
2,962
Income taxes paid
– 3,794
– 5,049
– 2,043
– 3,472
– 1,059
– 698
Interest received*
644
683
1,342
1,417
10
3
Other interest and similar income/expenses*
– 433
– 515
– 135
– 350
9
5
Depreciation and amortisation of tangible and intangible assets
8,650
8,974
8,504
8,826
28
32
Other non-cash income and expense items
339
179
167
103
20
– 11
Result from equity accounted investments
14
159
14
159
–
–
Change in leased products
– 5,231
– 999
–
–
– 6,186
– 1,346
Change in receivables from sales financing
– 4,144
– 3,622
–
–
– 4,154
– 3,649
Changes in working capital
– 396
– 2,715
173
– 2,674
– 534
– 31
Change in inventories
– 128
– 4,135
270
– 3,835
– 385
– 179
Change in trade receivables
1,379
– 187
1,474
– 154
– 69
– 70
Change in trade payables
– 1,647
1,607
– 1,571
1,315
– 80
218
Change in provisions
– 726
1,616
– 698
1,471
132
53
Change in other operating assets and liabilities
1,672
1,735
1,923
– 447
809
3,168
Cash inflow/outflow from operating activities
7,566
17,542
16,791
17,675
– 8,387
488
Total investment in intangible assets and property, plant and equipment
– 12,205
– 10,881
– 12,006
– 10,688
– 16
– 9
Proceeds from subsidies for intangible assets and property, plant and equipment
192
–
192
–
–
–
Proceeds from the disposal of intangible assets and property, plant and equipment
21
116
19
115
2
1
Expenditure for investment assets
– 162
– 222
– 157
– 219
–
–
Proceeds from the disposal of investment assets and other business units
13
65
13
59
–
–
Investments in marketable securities and investment funds
– 1,062
– 583
– 913
– 530
– 149
– 14
Proceeds from the disposal of marketable securities and investment funds
1,834
1,957
1,752
1,890
82
28
Cash inflow/outflow from investing activities
– 11,369
– 9,548
– 11,100
– 9,373
– 81
6
CASH FLOW STATEMENT
FOR GROUP AND SEGMENTS
274
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Cash Flow Statement for Group and Segments
Group
Automotive
Financial Services
(unaudited supplementary information)
(unaudited supplementary information)
in € million
2024
2023
2024
2023
2024
2023
Payments out of equity
– 22
– 20
– 22
– 20
–
–
Treasury shares acquired
– 1,002
– 1,222
– 1,002
– 1,222
–
–
Payment of dividends to shareholders of BMW AG
– 3,781
– 5,430
– 3,781
– 5,430
–
–
Payment of dividends to non-controlling interests
– 1,013
– 1,485
– 1,013
– 1,485
–
–
Intragroup financing and equity transactions
–
–
2,001
2,076
5,148
– 2,961
Interest paid*
– 196
– 186
– 1,207
– 1,031
– 18
– 9
Proceeds from issue of non-current financial liabilities
30,025
20,633
10
34
11,752
11,614
Repayment of non-current financial liabilities
– 22,182
– 22,430
– 528
– 515
– 10,466
– 10,790
Change in other financial liabilities
3,937
3,281
1,125
247
2,122
1,396
Cash inflow/outflow from financing activities
5,766
– 6,859
– 4,417
– 7,346
8,538
– 750
Effect of exchange rate on cash and cash equivalents
– 3
– 705
– 11
– 502
– 57
– 184
Effect of changes in composition of Group on cash and cash equivalents
–
27
–
27
–
–
Change in cash and cash equivalents
1,960
457
1,263
481
13
– 440
Cash and cash equivalents as at 1 January
17,327
16,870
13,590
13,109
3,090
3,530
Cash and cash equivalents as at 31 December
19,287
17,327
14,853
13,590
3,103
3,090
* With the exception of interest for lease liabilities, interest relating to financial services business is classified as revenues/cost of sales.
The reconciliation of liabilities from financing activities is presented in ↗ note [36] to the Group Financial Statements.
CASH FLOW STATEMENT
FOR GROUP AND SEGMENTS
275
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of Changes in Equity for Group
Accumulated other equity
in € million
Note
Subscribed
capital
Capital
reserves
Revenue
reserves
Translation
differences
Marketable
securities
Derivative
financial
instruments
Costs of
hedging
Treasury
shares
Equity
attributable to
shareholders
of BMW AG
Non-
controlling
interests
Total
1 January 2024
31
639
2,456
89,072
– 2,083
– 29
699
– 658
– 500
89,596
3,327
92,923
Net profit
–
–
7,290
–
–
–
–
–
7,290
388
7,678
Other comprehensive income for the period after tax
–
–
252
978
1
– 2,085
578
–
– 276
– 64
– 340
Comprehensive income at 31 December 2024
–
–
7,542
978
1
– 2,085
578
–
7,014
324
7,338
Dividend payments
–
–
– 3,781
–
–
–
–
–
– 3,781
– 1,013
– 4,794
Treasury shares acquired
–
–
–
–
–
–
–
– 1,002
– 1,002
–
– 1,002
Treasury share redemption
–
–
–
–
–
–
–
–
–
–
–
Reclassification resulting from share redemption
–
–
–
–
–
–
–
–
–
–
–
Other changes
–
–
– 21
–
–
509
–
–
488
50
538
31 December 2024
31
639
2,456
92,812
– 1,105
– 28
– 877
– 80
– 1,502
92,315
2,688
95,003
STATEMENT OF CHANGES
IN EQUITY FOR GROUP
276
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Statement of Changes in Equity for Group
Accumulated other equity
in € million
Note
Subscribed
capital
Capital
reserves
Revenue
reserves
Translation
differences
Marketable
securities
Derivative
financial
instruments
Costs of
hedging
Treasury
shares
Equity
attributable to
shareholders
of BMW AG
Non-
controlling
interests
Total
1 January 2023
31
663
2,432
85,425
– 584
– 107
1,728
– 1,154
– 1,278
87,125
4,163
91,288
Net profit
–
–
11,290
–
–
–
–
–
11,290
875
12,165
Other comprehensive income for the period after tax
–
–
– 118
– 1,499
78
– 1,201
496
–
– 2,244
– 268
– 2,512
Comprehensive income at 31 December 2023
–
–
11,172
– 1,499
78
– 1,201
496
–
9,046
607
9,653
Dividend payments
–
–
– 5,430
–
–
–
–
–
– 5,430
– 1,485
– 6,915
Treasury shares acquired
–
–
–
–
–
–
–
– 1,222
– 1,222
–
– 1,222
Treasury share redemption
–
–
– 2,000
–
–
–
–
2,000
–
–
–
Reclassification resulting from share redemption
– 24
24
–
–
–
–
–
–
–
–
–
Other changes
–
–
– 95
–
–
172
–
–
77
42
119
31 December 2023
31
639
2,456
89,072
– 2,083
– 29
699
– 658
– 500
89,596
3,327
92,923
STATEMENT OF CHANGES
IN EQUITY FOR GROUP
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PRINCIPLES
01 Basis of preparation
The consolidated financial statements of Bayerische Motoren
Werke Aktiengesellschaft (BMW Group Financial Statements or
Group Financial Statements) at 31 December 2024 were drawn
up in accordance with International Financial Reporting Stand-
ards (IFRS), as endorsed by the European Union (EU), and the
supplementary requirements of § 315e (1) of the German Com-
mercial Code (HGB). Pursuant to § 325 HGB, the Group Finan-
cial Statements and the Group Management Report are required
to be submitted electronically to the operator of the Company
Register and made accessible via that agency’s website. Bayer-
ische Motoren Werke Aktiengesellschaft (BMW AG), which has
its seat in Germany, Munich, Petuelring 130, is registered in the
Commercial Register of the District Court of Munich under the
number HRB 42243. BMW AG manufactures automobiles and
motorcycles in the premium segment.
The Group Financial Statements have been drawn up in euros.
All amounts are disclosed in millions of euros (€ million) unless
stated otherwise.
Key figures presented in this report have been rounded in ac-
cordance with standard commercial practise. In certain cases,
this may mean that values do not add up exactly to the stated
total and that percentages cannot be derived from the values
shown.
The income statement for the BMW Group and segments is pre-
sented using the cost of sales method.
In order to provide a better insight into the results of operations,
financial position and net assets of the BMW Group, and going
beyond the requirements of IFRS 8, the Group Financial State-
ments also include an income statement and a balance sheet for
the Automotive, Motorcycles, Financial Services and Other Enti-
ties segments. The Group Cash Flow Statement is supple-
mented by a statement of cash flows for the Automotive and Fi-
nancial Services segments. Inter-segment transactions relate
primarily to internal sales of products, the provision of funds for
Group companies and the related interest. A description of the
nature of the business and the major operating activities of the
BMW Group’s segments is provided in ↗ note [46] (Explanatory
notes to segment information).
Approval for the publication of the Group Financial Statements
was granted by the Board of Management on 11 March 2025.
02 Group reporting entity and consolidation principles
The BMW Group Financial Statements include BMW AG and all
material subsidiaries over which BMW AG – either directly or in-
directly – exercises control. This also includes 58 structured en-
tities, consisting of asset-backed financing arrangements and
special purpose funds. In some cases, contractual agreements
are in place with the asset-backed securities companies to offset
their losses in connection with residual value risks arising from
the receivables sold to them.
In relation to fully consolidated companies, the following changes
took place in the Group reporting entity in the financial year
2024:
Germany
Foreign
Total
Included at 31 December 2023
20
187
207
Included for the first time in 2024
1
12
13
No longer included in 2024
–
18
18
Included at 31 December 2024
21
181
202
All consolidated subsidiaries have the same year end as BMW
AG with the exception of BMW India Private Ltd., Gurgaon, and
BMW India Financial Services Private Ltd., Gurgaon, whose year-
ends are 31 March in accordance with local legal requirements,
as well as BMW i Ventures SCS SICAV-RAIF, Senningerberg, BiV
Carry I SCS, Senningerberg, and BiV Carry II SCS, Senningerberg,
whose year-ends are 30 September. Interim financial state-
ments are prepared as at 31 December for the companies with
divergent reporting dates.
When assessing whether an investment gives rise to a controlled
entity, a joint operation, a joint venture or an associated com-
pany, the BMW Group considers contractual arrangements and
other circumstances, as well as the structure and legal form of
the entity. Discretionary decisions may also be required. If indi-
cations exist of a change in the judgement of (joint) control, the
BMW Group undertakes a new assessment.
NOTES TO THE GROUP FINANCIAL STATEMENTS
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An entity is deemed to be controlled if BMW AG – either directly
or indirectly – has power over it, is exposed or has rights to vari-
able returns from it and has the ability to influence those returns.
Joint operations and joint ventures are forms of joint arrange-
ments. Such an arrangement exists when a BMW Group entity
jointly carries out activities with a third party on the basis of a
contractual agreement.
In the case of a joint operation, the parties that have joint control
of the arrangement have rights to the assets, and obligations for
the liabilities, relating to the arrangement. The assets, liabilities,
revenues and expenses of one joint operation that is classified
as material are recognised proportionately in the Group Financial
Statements on the basis of the BMW Group entity’s rights and
obligations (proportionate consolidation). The impact of joint op-
erations on the Group Financial Statements is of minor signifi-
cance.
The BMW Group's largest joint operation is Spotlight Automotive
Ltd., Zhangjiagang, which has been operated together with the
Chinese automobile manufacturer Great Wall Motor Company
Limited since 2019, jointly developing and manufacturing elec-
tric vehicles for the MINI and Great Wall brands in China. The
BMW Group and Great Wall each hold 50% of the joint opera-
tion’s equity.
In the case of a joint venture, the parties which have joint control
only have rights to the net assets of the arrangement.
An entity is classified as an associated company if BMW AG –
either directly or indirectly – has the ability to exercise significant
influence over the entity’s operating and financial policies. As a
general rule, the Group is assumed to have significant influence
if it holds 20% or more of the entity’s voting power.
Interests in material associated companies and joint ventures
are accounted for using the equity method.
BMW Fleet GmbH, Munich, which acquired part of the Group's
own fleet and thus also assumed responsibility for the manage-
ment and marketing of these vehicles, was fully included in the
Group Financial Statements for the first time with effect from
31 March 2024.
On 19 July 2023, the BMW Group signed an agreement with the
companies of the Mercedes-Benz Group, the Stellantis Group,
the Honda Group, the Hyundai Motor Group and the General Mo-
tors Company Group to establish IONNA LLC, Torrance, in the
USA with the aim of developing charging infrastructure in North
America. Following approval by the relevant antitrust authorities,
the transaction was completed on 18 October 2023. The BMW
Group's stake in IONNA LLC was diluted from 16.67% to
14.29% in the financial year 2024 following the entry of Toyota
Motor Corporation. Although this is below 20%, the newly
founded entity is included in the BMW Group Financial State-
ments as an associated company using the equity method, re-
flecting the fact that the BMW Group is represented on the man-
agement board and therefore has significant influence.
On 6 November 2023, the BMW Group signed an agreement
with a company of the Mercedes-Benz Group to establish Beijing
Ionchi New Energy Technology Ltd., Beijing, in China with the
aim of developing the charging infrastructure there. Following
approval by the relevant antitrust authorities, the transaction was
completed on 4 March 2024. The BMW Group holds a 50% in-
terest in the newly founded entity, which is accounted for as a
joint venture using the equity method.
The other changes to the Group reporting entity do not have a
material impact on the results of operations, financial position
and net assets of the Group.
03 Other significant events
Russia-Ukraine war
Major uncertainties remained at 31 December 2024 with re-
spect to the ongoing Russia-Ukraine war. The current sanctions
and the countermeasures taken significantly restrict economic
activities with Russia and also have an impact on the Russian
companies of the BMW Group.
The restrictions currently in place for payments continue to re-
strict the transfer of liquid funds from Russia. Developments in
this area are reviewed by the BMW Group on a regular basis. In
total, the Russian companies hold around 4% (2023: 4%) of the
BMW Group's cash and cash equivalents.
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04 Foreign currency translation and measurement
The financial statements of consolidated companies which are
presented in a foreign currency are translated using the modified
closing rate method. Under this method, assets and liabilities are
translated at the closing exchange rate, while income and ex-
penses are translated at the average exchange rate. Differences
arising on foreign currency translation are presented in “Accu-
mulated other equity“. In the single entity accounts of BMW AG
and its subsidiaries, foreign currency receivables and payables
are measured on initial recognition using the exchange rate pre-
vailing at the date of first-time recognition. Advance payments to
suppliers or from customers in a foreign currency that result in
the addition of non-monetary assets or liabilities are recorded at
the exchange rate prevailing at the date of payment. At the end
of the reporting period, foreign currency receivables and paya-
bles are measured using the closing exchange rate. The resulting
unrealised gains and losses, as well as realised gains and losses
arising on settlement, are recognised in the income statement, in
line with the underlying substance of the transaction. Non-mon-
etary balance sheet line items denominated in foreign currencies
are rolled forward on the basis of historical exchange rates.
The exchange rates of currencies which have a material impact
on the Group Financial Statements were as follows:
Closing rate
Average rate
1 euro =
31.12.2024
31.12.2023
2024
2023
US dollar
1.04
1.11
1.08
1.08
Chinese renminbi
7.57
7.86
7.78
7.66
British pound
0.83
0.87
0.85
0.87
Japanese yen
162.74
156.58
163.84
151.98
South Korean won
1,530.75
1,435.44
1,475.62
1,412.98
Argentina has fulfilled the definition of a hyperinflationary econ-
omy since 1 July 2018. Since that date, International Accounting
Standard (IAS) 29 has therefore been applied to the BMW sub-
sidiary in Argentina. The price indices published by the Feder-
ación Argentina de Consejos Profesionales de Ciencias
Económicas are used to adjust non-monetary asset, liability and
income statement line items. The resulting effects are not mate-
rial for the BMW Group.
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05 Financial reporting rules
a Financial reporting standards applied for the first time in the
financial year 2024
Standards and Revised Standards applied for the first time in the
financial year 2024 did not have any significant impact on the
BMW Group Financial Statements.
b Financial reporting pronouncements issued by the IASB, but not
yet applied
In April 2024, the International Accounting Standards Board
(IASB) published IFRS 18 Presentation and Disclosure in Finan-
cial Statements. The Standard replaces IAS 1 and contains new
rules on the structure of the income statement, on key perfor-
mance indicators defined by management, and on the aggrega-
tion and disaggregation of items in the income statement. The
new rules are mandatory for financial years beginning on or after
1 January 2027. The BMW Group is analysing the impact of
IFRS 18 on the Group Financial Statements. Early adoption of
IFRS 18 is not currently intended.
In December 2024, the IASB also published Amendments to
IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent
Electricity. The targeted amendments contained therein deal
with the accounting treatment of nature-dependent electricity ar-
rangements, in particular to long-term energy supply contracts
(power purchase agreements). The amendments to IFRS 9 are
primarily intended to address current challenges in the applica-
tion of the “own-use” exception and hedge accounting. The
amendments to IFRS 7 include additional disclosure require-
ments for nature-dependent electricity contracts. Subject to their
implementation by the law-making bodies of the European Un-
ion, the new regulations are mandatory, at the latest, for financial
years beginning on or after 1 January 2026. A decision on
whether to apply the new regulations early will be made after tak-
ing into account the date of their transposition into European
Community law as well as an implementation cost analysis. The
BMW Group expects that the amended criteria for assessing the
applicability of the “own-use” exemption will make it possible to
apply it to a larger total volume of power purchase agreements,
thereby supporting the BMW Group's decarbonisation efforts.
With the exception of the additional disclosure requirements, this
does not result in any change to the accounting treatment of the
existing portfolio of power purchase agreements.
Other financial reporting standards and revised standards issued
by the IASB that have not yet been applied are not expected to
have any significant impact on the BMW Group Financial State-
ments.
06 Accounting policies, assumptions, judgements and
estimations
» The impact of climate change has been taken into account by
the Board of Management when preparing the Group Financial
Statements. As a matter of principle, the Group Financial State-
ments are prepared in accordance with the BMW Group's long-
term corporate plan, as approved by management, taking into
account issues – such as the expansion of electric mobility, reg-
ulatory requirements and changes in production conditions – that
are relevant for expected climate change. In this context, the
BMW Group incurs expenditure on research and development for
electrified models, invests in resource-saving production facilities
for the manufacture of electrified automobiles and, in particular,
is gradually converting its production processes from fossil fuels
to green energy by concluding power purchase agreements for
electricity and gas from renewable sources.
In order to reduce emissions of carbon dioxide equivalents
(CO2e), the BMW Group has set itself science-based, cross-sec-
tor targets for 2030, in line with the approach of the Science
Based Targets initiative (SBTi). Long-term corporate planning is
also geared towards achieving these targets. The target set for
the BMW Group’s Scope 1 and 2 emissions is in line with the
1.5°C-compliant pathway. The overarching target set for
Scope 3 Automobiles (purchased goods and services, transpor-
tation logistics, use phase) is in line with a well-below-two-de-
gree (WB2D) approach.
The targets set for the period up to 2030 envisage a reduction in
CO2e emissions of at least 40 million tonnes of CO2e compared
to the reference year 2019. This equates to an absolute target
for Scopes 1 and 2 CO2e emissions of 0.635 million tonnes, a
reduction of 46.3% compared to the reference year 2019. At the
level of Scope 3 emissions an absolute target of 108 mil-
lion tonnes of CO2e has been set for purchased goods and ser-
vices, transportation logistics and the use phase of automobiles,
a reduction of 27.5% compared to the reference year 2019.
Physical and transitory climate-related risks and opportunities,
as well as the targets set to reduce CO2e emissions (as explained
above) are taken into account both for internal performance
management as well as for financial reporting purposes. These
aspects, referred to below as “climate-related aspects”, are
highly relevant for the preparation of the Group Financial State-
ments, particularly in the case of assumptions, judgements and
estimations relating to future developments that impact the
BMW Group and its environment, and are therefore included in
their assessment.
More detailed information on how climate-related aspects are
taken into account for recognition and measurement purposes is
provided below, particularly in the comments on property, plant
and equipment, leased products and the performance of impair-
ment tests. This includes an indication of the extent to which cli-
mate-related aspects have been taken into account in the esti-
mations and assumptions for the recognition and measurement
of balance sheet items. « (Section contains information in line
with ESRS E1-1 AR 15.)
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Revenues from customer contracts include in particular reve-
nues from the sale of products (primarily new and pre-owned ve-
hicles and related products) as well as revenues from services.
Revenues are recognised when control of the product is trans-
ferred to the dealership or retail customer, whereby the point in
time of transfer is becoming increasingly important due to the
phased introduction of the direct sales model. In the case of sales
of products, control is transferred and revenue therefore recog-
nised as a general rule at the point in time when the risks and
rewards of ownership are transferred. Revenues are stated net
of settlement discount, bonuses and rebates as well as interest
and residual value subsidies. The consideration arising from
these sales is usually due for payment in advance, immediately
or within 30 days. In exceptional cases, a longer payment may
also be agreed. In the case of services, control is transferred over
time. Consideration for the rendering of services to customers
usually falls due for payment at the beginning of a contract and
is therefore deferred as a contract liability. The deferred amount
is released over the service period and recognised as revenue in
the income statement. As a general rule, amounts are released
on the basis of the expected expense trend, as this best reflects
the performance of the service. If the sale of products includes a
determinable amount for services (multiple-component con-
tracts), the related revenues are deferred and recognised as in-
come in the same way. Variable consideration components, such
as bonuses, are measured at the expected value, and in the case
of multiple-component contracts, allocated to all performance
obligations unless directly attributable to the sale of a vehicle.
Revenues from the sale of products, for which repurchase ar-
rangements are in place, are not recognised immediately in full.
Instead, revenues are either recognised proportionately or the
difference between the sales and repurchase price is recognised
in instalments over the term of the contract depending on the na-
ture of the agreement. In the case of vehicles sold to a dealership
that are expected to be repurchased in a subsequent period as
part of leasing business, revenues are not recognised at Group
level at the time of the sale of the vehicle. Instead, assets and
liabilities arising from rights of return are recognised in the bal-
ance sheet for these vehicles.
Revenues from leases of own-manufactured vehicles are recog-
nised at Group level in accordance with the requirements for
manufacturer or dealer leases. In the case of operating leases,
revenues from lease payments are recognised on a straight-line
basis over the lease term. Finance leases, on the other hand, are
accounted for as a sale. At the lease commencement date, rev-
enues are recognised at the amount of the fair value of the leased
asset and reduced by any unguaranteed residual value of vehi-
cles that are expected to be returned to the Group at the end of
the lease term. In addition, initial direct costs are recognised as
cost of sales at the lease commencement date.
Revenues also include interest income from financial services. In-
terest income arising on finance leases as well as on retail cus-
tomer and dealership financing is recognised using the effective
interest method and reported as interest income on credit financ-
ing within revenues.
The BMW Group offers various products that meet the definition
of an insurance contract in accordance with IFRS 17. However,
for the majority of these products, either an exemption applies
(e.g. for warranty agreements) or the insurance arrangements
qualify as fixed-fee service contracts, which continue to be ac-
counted for in accordance with IFRS 15 due to the option availa-
ble in IFRS 17. In some markets, however, products (e.g. com-
prehensive vehicle insurance) are offered that are required to be
accounted for in accordance with IFRS 17. These contracts are
recognised using the so-called premium allocation approach. In-
surance premiums arising on insurance contracts are presented
in other revenues.
Public sector grants are not recognised until there is reasonable
assurance that the conditions attaching to them have been com-
plied with and the grants will be received. The resulting income
is recognised in cost of sales over the periods in which the costs
occur that they are intended to compensate. Government grants
received for assets are deducted from the carrying amount of the
relevant assets, and recognised in profit or loss over the respec-
tive useful lives of the assets in the form of reduced deprecia-
tion/amortisation. For information on the accounting treatment
of government grants for assets granted before 31 Decem-
ber 2022, please refer to the disclosures provided in ↗ note [37].
Earnings per share are calculated as follows: basic earnings per
share are calculated for common and preferred stock by dividing
the net profit for the year (after non-controlling interests) that is
attributable to each category of stock, by the average number of
shares of each category in circulation. Net profit for the year is
accordingly allocated to the different categories of stock. The
portion of the net profit that is not being distributed is allocated
to each category of stock based on the number of outstanding
shares. Profits available for distribution are determined directly
on the basis of the dividend proposals or resolutions for common
and preferred stock. Diluted earnings per share are calculated
and separately disclosed in accordance with IAS 33.
Intangible assets are measured on initial recognition at acquisi-
tion or manufacturing cost. Subsequently, intangible assets with
finite useful lives are amortised on a straight-line basis over their
useful lives of between three and 20 years. Impairment losses
are recognised where necessary. Intangible assets with indefi-
nite useful lives are tested annually for impairment. Internally
generated intangible assets mainly comprise development costs
for vehicle, module and architecture projects.
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Development costs are capitalised if all of the criteria specified
by IAS 38 are met. They are measured on the basis of direct
costs and directly attributable overhead costs. Project-related
capitalised development costs are amortised on a straight-line
basis following the start of production over the estimated product
life (usually five to twelve years).
Goodwill arises when the cost of acquiring a business exceeds
the Group’s share of the net fair value of the assets, liabilities and
contingent liabilities identified during the acquisition.
Intangible assets also include emission allowances and similar
rights arising from programmes aimed at reducing carbon or
other climate-damaging emissions (for example in conjunction
with the EU Emissions Trading System or vehicle-related emis-
sions regulations in the USA or China). These allowances and
rights are carried at cost and, in the event that they are allocated
free of charge, recorded at a value of zero. Amounts are derec-
ognised when they are returned or, in exceptional cases, when
they are sold or expire. In parallel to the recognition of these al-
lowances and rights as assets, provisions are recognised in ac-
cordance with IAS 37 corresponding to the amount of obliga-
tions expected to arise in conjunction with the related emissions
regulations. Provisions are measured on the basis of the ex-
pected value of the allowances or rights that are to be returned.
If there is any indication of impairment of intangible assets, or
if an annual impairment test is required (i.e. intangible assets
with an indefinite useful life, intangible assets during the devel-
opment phase and goodwill), an impairment test is performed.
Each individual asset is tested separately unless the cash flows
generated by the asset are not sufficiently independent from the
cash flows generated by other assets or other groups of assets.
In these cases, impairment is tested at the level of a cash-gener-
ating unit, which is the norm for the BMW Group.
For the purpose of the impairment test, the carrying amount of
an asset (or a cash-generating unit) is compared with the recov-
erable amount. The first step of the impairment test is to deter-
mine the value in use. If the value in use is lower than the carrying
amount, the next step is to determine the fair value less costs to
sell and compare the amount so determined with the asset’s car-
rying amount. If the fair value is lower than the carrying amount,
an impairment loss is recognised, reducing the carrying amount
to the higher of the asset’s value in use or fair value less costs to
sell.
If the reason for a previously recognised impairment loss no
longer exists, the impairment loss is reversed up to the level of
the recoverable amount, but no higher than the amortised acqui-
sition or manufacturing cost. Impairment losses on goodwill are
not reversed. As part of the process of assessing recoverability,
it is generally necessary to apply estimations and assumptions –
in particular regarding future cash inflows and outflows and the
length of the forecast period – which could differ from actual
amounts. Actual amounts may differ from the assumptions and
estimations used if business conditions develop differently to ex-
pectations.
The BMW Group determines the value in use of intangible assets
on the basis of a present value computation. The cash flows used
for this calculation are derived from the long-term corporate plan
approved by management, corresponding to a forecast period of
six years.
For the purposes of calculating cash flows beyond the planning
period, a perpetual annuity return is assumed which does not
take growth into account. Forecasting assumptions are adjusted
to current information and regularly compared with external
sources. The assumptions used take account in particular of ex-
pectations of the profitability of the product portfolio, future mar-
ket share development, macroeconomic developments (such as
currency, interest rate and raw materials prices) as well as the
legal environment and past experience.
Assumptions also take into account the impact of climate-related
aspects and the influence of other sustainability factors on busi-
ness performance and the product portfolio, for example as a re-
sult of changes in demand patterns, regulatory requirements or
changes in production conditions. In line with the BMW Group’s
strategy process and the ongoing expansion of electric mobility,
the detailed forecast takes account of key assumptions such as
the planned increase in the share of electrified automobiles to
over 50%, the required level of expenditure on research and de-
velopment with regard to vehicle models with battery-powered
electric drives, the scale of investments in resource-saving pro-
duction facilities (including any expected efficiency improve-
ments) and the cost of converting production processes from fos-
sil fuels to renewable energy sources. Last but not least, the ex-
pected impact on the current leasing portfolio is also considered.
Amounts are discounted on the basis of a market-related cost of
capital rate. Impairment tests are performed for accounting and
financial reporting purposes and using a risk-adjusted pre-tax
cost of capital (WACC) for the Automotive excluding BMW Bril-
liance, BMW Brilliance and Motorcycles cash-generating units. In
the case of the Financial Services cash-generating unit, a pre-tax
cost of equity capital is used, as is customary in the sector. The
following pre-tax discount factors were applied:
in %
2024
2023
Automotive excluding BMW Brilliance
13.4
13.7
BMW Brilliance
13.6
15.6
Motorcycles
13.4
13.7
Financial Services
13.9
15.2
The risk-adjusted discount rate, calculated using a capital asset
pricing model (CAPM), also takes into account specific peer-
group information relating to beta-factors, capital structure data
and borrowing costs. No adjustments to the WACC were made
for environmental, social or governance (ESG) aspects.
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In conjunction with the impairment tests for cash-generating
units, sensitivity analyses are performed for the main assump-
tions in order to rule out that possible changes to the assump-
tions used to determine the recoverable amount would result in
the requirement to recognise an impairment loss. Even in the
case of a 10% deterioration in the individual measurement as-
sumptions, the need to recognise an impairment loss did not
arise.
All items of property, plant and equipment are measured at ac-
quisition or manufacturing cost less accumulated depreciation
and accumulated impairment losses.
The cost of internally constructed plant and equipment com-
prises all costs which are directly attributable to the manufactur-
ing process as well as an appropriate proportion of production-
related overheads. This includes production-related depreciation
and amortisation as well as an appropriate proportion of admin-
istrative and social costs. Financing costs are not included in ac-
quisition or manufacturing cost unless they are directly attributa-
ble to the asset. The carrying amount of items of depreciable
property, plant and equipment is written down according to
scheduled usage-based depreciation – as a general rule on a
straight-line basis – over the useful lives of the assets. Depreci-
ation is recorded as an expense in the income statement.
The following useful lives are applied throughout the BMW
Group:
in years
Factory and office buildings, residential buildings, fixed
installations in buildings and outside facilities
8 to 50
Plant and machinery
3 to 30
Other facilities, factory and office equipment
2 to 25
The useful lives of plant and equipment are reviewed regularly
and extended or shortened as necessary. This review also takes
account of the impact of climate-related aspects on useful lives,
for example due to changes in demand patterns or regulatory re-
quirements. In addition to the assumptions used for long-term
corporate planning as described above, product-relevant deci-
sions taken during the year are also considered. Climate-related
aspects have an indirect impact on the utilisation of property,
plant and equipment. Adjustments to the useful lives of items of
plant and machinery are avoided by means of by a combination
of flexible manufacturing arrangements (independent of
drivetrain type and capable of handling all vehicle generations)
as well as asset-preservation measures. The useful lives of plant
and machinery that are used exclusively for internal combustion
vehicle production are also covered by up-to-date planning as-
sumptions. For machinery used in multiple-shift operations, de-
preciation rates are increased to account for the additional utili-
sation. If there is any indication of impairment of property, plant
and equipment, an impairment test is performed as described
above for intangible assets.
A lease arises for IFRS 16 purposes either when an actual legal
rental/lease agreement for property, plant and equipment is
in place or when other contractual arrangements are in place that
are equivalent to a lease in substance. Depending on the specific
facts and circumstances of each individual case, power purchase
agreements and long-term supply contracts for battery cells may
also constitute a lease.
The BMW Group recognises a right-of-use asset and a liability
for the outstanding lease payments with effect from the date on
which the leased asset becomes available for use by the BMW
Group. The cost of the right-of-use asset is the sum of the
amount at which the lease liability is initially measured, any lease
payments made at or before the lease commencement date, any
initial direct costs incurred by the lessee and the estimated costs
of dismantling, removing or restoring the leased asset. Lease
incentives granted by the lessor are deducted. Right-of-use as-
sets are depreciated on a straight-line basis over the shorter of
the useful life of the leased asset and the expected lease term. If
ownership of the leased asset is automatically transferred at the
end of the lease term or the exercise of a purchase option is re-
flected in the lease payments, the right-of-use asset is depreci-
ated on a straight-line basis over the expected useful life of the
leased asset. Right-of-use assets are reported in the balance
sheet within the relevant line items for property, plant and equip-
ment. The depreciation expense on right-of-use assets is re-
ported in the income statement in cost of sales as well as in sell-
ing and administrative expenses.
The lease liability is measured on initial recognition at the present
value of the future lease payments. Subsequent to initial recog-
nition, the carrying amount of the lease liability is increased to
reflect interest on the lease liability and reduced, without income
statement impact, by the lease payments made. Lease liabilities
are reported within financial liabilities, while interest expense is
reported as part of net interest result. In the cash flow statement,
both the repayment portion and the interest portion of lease pay-
ments are shown as cash outflows from financing activities.
The lease payments to be taken into account to measure the
right-of-use asset and the lease liability comprise fixed pay-
ments, variable lease payments that depend on an index or an
interest rate as well as amounts expected to be payable under
residual value guarantees. If it is reasonably certain that a pur-
chase or lease extension option will be exercised, the relevant
payments are also included. Payments for periods for which the
lessee has an option to terminate a lease unilaterally are only in-
cluded in the lease payments if it is reasonably certain that the
termination option will not be exercised. For the purposes of as-
sessing options, the BMW Group takes account of all facts and
circumstances that create an economic incentive to exercise or
not to exercise the option.
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Remuneration Report
Other Information
Notes to the Group Financial Statements
IFRS 16 requires that lease payments are discounted as a gen-
eral rule using the interest rate implicit in the lease. However,
since the interest rate in leases entered into by the BMW Group
cannot readily be determined, amounts are discounted on the
basis of the incremental borrowing rate.
The incremental borrowing rate comprises the risk-free interest
rate in the relevant currency for matching maturities plus a pre-
mium for the credit risk. Specific risks attached to an asset are
generally not taken into account, given that collateral received in
the context of alternative financing arrangements is not relevant
within the BMW Group.
Determining which items are to be counted as lease payments –
including the issue of the lease term underlying those payments
– and which discount rate to apply involves using estimates and
assumptions that may differ from actual outcomes.
As lessee, the BMW Group makes use of the application exemp-
tions available for short-term leases and leases of low-value as-
sets.
Group products recognised by BMW Group entities as leased
products under operating leases are measured at manufactur-
ing cost and all other leased products at acquisition cost, in each
case including initial direct costs. All leased products are depre-
ciated over the period of the lease using the straight-line method
down to their expected residual value.
Where the recoverable amount of a lease exceeds the asset’s
carrying amount, changes in residual value expectations are rec-
ognised by adjusting scheduled depreciation prospectively over
the remaining term of the lease. If the recoverable amount is
lower than the asset's carrying amount, an impairment loss is
recognised for the shortfall. A test is carried out at each balance
sheet date to determine whether an impairment loss recognised
in prior years no longer exists or has decreased. In such cases,
the carrying amount of the asset is increased to the recoverable
amount, at a maximum up to the amount of the asset’s amor-
tised cost.
Assumptions and estimations are required regarding future re-
sidual values, since these represent a significant part of future
cash inflows. Relevant factors to be considered include the trend
in market prices and demand on the pre-owned automobile mar-
ket. The expected change in the drive-system mix going forward,
which is subject to regular analysis, is also taken into account.
The BMW Group has developed and implemented methods and
processes that enable sustainability aspects of residual value
risks, particularly climate-related aspects, to be appropriately as-
sessed and managed. A scenario-based approach is applied to
quantify the impact of the transition towards zero-emissions mo-
bility and factor in the technological progress of the products in-
volved, resulting potentially in the need to adjust the estimated
residual values of both internal combustion and electrified vehi-
cles. However, the transition to new drive systems will stretch
over a period of time. Under these circumstances, regulatory as-
pects, customer behaviour and the structure of the product range
all have to be taken into account. To varying degrees, the afore-
mentioned aspects will play a role in bringing about changes to
the existing product portfolio over the coming years. The nature
of these planned changes can already be anticipated today to
some extent, highlighting potential but calculable risks for future
operations. Disproportionate risks are only likely to arise in the
event of unexpected regulatory changes that would also be to the
detriment of customers. In addition to these various considera-
tions, the vehicle portfolio subject to residual value risks is re-
measured on a quarterly basis, allowing new aspects to be incor-
porated in the valuation at an early stage. In this case, valuations
relevant for new business which are subject to the same turn of
events would also be adjusted. The models used to determine
residual value are also subject to regular review and can be sup-
plemented where appropriate to include aspects relating to
changes in the market.
Using this approach, different scenario analyses can be used to
take into account upward or downward adjustments to esti-
mated values. The assumptions are based on internally available
historical data and current market data, as well as on data from
external institutions. Furthermore, assumptions are regularly val-
idated by comparison with external data. Certain types of con-
tracts require a high degree of judgement when deciding whether
they give rise to operating leases or receivables from sales fi-
nancing.
Investments accounted for using the equity method are
measured – provided no impairment has been recognised – at
cost of investment adjusted for the Group’s share of earnings
and changes in equity capital. If there is any indication that an
investment is impaired, an impairment test is performed on the
basis of the discounted cash flow method. An indicator exists, for
example, in the event of a serious shortfall compared to budget,
the loss of an active market or if funds are required to avoid in-
solvency.
With the exception of lease receivables, financial assets are
measured on initial recognition at their fair value. Financial as-
sets include, in particular, other investments, receivables from
sales financing, finance receivables, trade receivables and cash
and cash equivalents. As a general rule, initial recognition takes
place as soon as the BMW Group becomes a party to a contract.
In the case of so-called “regular way” purchases or sales of non-
derivative financial assets, initial recognition takes place at the
settlement date. Financial assets are derecognised when con-
tractual cash flows attached to them have expired or are trans-
ferred and all significant risks and rewards have been passed on
to the acquirer.
Depending on the business model and the structure of contrac-
tual cash flows, financial assets are classified as measured at
amortised cost, at fair value through comprehensive income or at
fair value through profit or loss. The category “measured at fair
value through comprehensive income” at the BMW Group com-
prises mainly marketable securities and investment funds used
for liquidity management purposes. In the BMW Group, selected
marketable securities, shares in investment funds, money mar-
ket funds and convertible bonds are measured at fair value
through profit or loss, as their contractual cash flows do not solely
represent payments of principal and interest.
285
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
The BMW Group does not make use of the option to measure
equity instruments at fair value through other comprehensive in-
come or debt instruments at fair value through profit or loss.
The market values of financial instruments measured at fair
value are determined on the basis of market information availa-
ble at the balance sheet date, such as quoted prices or using ap-
propriate measurement methods, in particular the discounted
cash flow method.
Items reported under other investments within the scope of
IFRS 9 are measured at fair value through profit or loss. Invest-
ments in subsidiaries, joint arrangements and associated com-
panies that are not material to the BMW Group are also included
in other investments.
Receivables from sales financing are measured as a general
rule at amortised cost using the effective interest rate method.
As part of its asset-backed securities (ABS) financing activities,
the BMW Group transfers some of its receivables from sales fi-
nancing – primarily retail customer and dealership financing re-
ceivables – to structured companies, which in turn securitise
them and place them on the capital market as collateralised mar-
ketable securities.
The transferred receivables are not derecognised and therefore
remain on the BMW Group’s balance sheet. For this reason, re-
ceivables from sales financing fulfil the criteria of the "hold" busi-
ness model.
Receivables from sales financing also include finance lease re-
ceivables which are measured at the amount of the net invest-
ment in the lease. This balance sheet line item also includes op-
erating lease receivables at the end of the reporting period. The
related vehicles are reported within the line item Leased prod-
ucts.
With the exception of receivables from operating leases and
trade receivables, the BMW Group applies the general approach
described in IFRS 9 to determine impairment of financial assets.
Under the general approach, loss allowances are measured on
initial recognition on the basis of the expected 12-month credit
loss (stage 1). If the credit loss risk at the end of the reporting
period has increased significantly since initial recognition, the im-
pairment allowance is measured on the basis of lifetime ex-
pected credit losses (stage 2 – general approach). The measure-
ment of the change in default risk is based on a comparison of
the default risk at the date of initial recognition and at the end of
the reporting period. The default risk at the end of each reporting
period is determined on the basis of credit checks, current key
economic performance indicators and any overdue payments.
The BMW Group applies the simplified approach described in
IFRS 9 to operating lease and trade receivables, whereby the
amount of the loss allowance is measured subsequent to the in-
itial recognition of the receivable on the basis of lifetime expected
credit losses (stage 2 – simplified approach). For the purposes of
allocating an item to stage 2, it is irrelevant whether the credit
risk of the assets concerned has increased significantly since in-
itial recognition.
As a general rule, the BMW Group assumes that a receivable is
in default if it is more than 90 days overdue or if there are objec-
tive indications of insolvency, such as the opening of insolvency
proceedings. Credit-impaired assets are identified as such on the
basis of this definition of default. In the case of credit-impaired
assets which had not been credit-impaired at the time they were
acquired or originated, an impairment allowance is recognised at
an amount equal to lifetime expected credit losses (stage 3). This
is the case regardless of whether the general or simplified ap-
proach is applied. In the case of stage 3 assets, interest income
is calculated on the asset’s carrying amount less any impairment
loss.
In addition, post-model adjustments are recorded if the risk is not
fully covered by the standard models.
The BMW Group derecognises financial assets when it has no
reasonable expectation of recovery. This may be the case, for in-
stance, if the debtor is deemed not to have sufficient assets or
other sources of income to service the debt.
Loss allowances relating to the balance sheet line item Receiva-
bles from sales financing are determined primarily on the basis
of past experience with credit losses, current data on overdue re-
ceivables, rating classes and scoring information.
Forward-looking information (for instance forecasts of key eco-
nomic performance indicators) is also taken into account if,
based on past experience, such indicators show a substantive
correlation to actual credit losses.
Loss allowances on trade receivables are determined primarily
on the basis of information relating to overdue amounts. Further-
more, both positive and negative economic scenarios are used
alongside the latest forecasts of key economic performance indi-
cators when determining the level of valuation allowances.
These scenarios are based on local analyses and take into ac-
count, for example, anticipated political and economic develop-
ments.
Input factors available on the market, such as ratings and prob-
abilities of default, are used to calculate valuation allowances for
cash and cash equivalents, financial assets, receivables from
subsidiaries and receivables from companies in which an invest-
ment is held. In the case of marketable securities and investment
funds, the BMW Group usually applies the option not to allocate
financial assets with a low default risk to different stages. Accord-
ingly, assets with an investment grade rating are always allo-
cated to stage 1.
286
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Financial assets include in particular marketable securities and
shares in investment funds as well as derivative financial instru-
ments.
Derivative financial instruments are used within the BMW
Group for hedging purposes in order to reduce currency, interest
rate, fair value and market price risks. Derivative financial instru-
ments are recognised as of the trade date, measured at their fair
value. Depending on their market value at measurement date,
these financial instruments are reported in the balance sheet line
items Financial assets or Financial liabilities.
Fair values are determined on the basis of valuation models. Ob-
servable market price, tenor and currency basis spreads are
taken into account in the measurement of derivative financial in-
struments. Furthermore, the Group's own credit risk and that of
counterparties is taken into account on the basis of credit default
swap values for market contracts with matching terms.
The BMW Group applies the option to recognise the credit risks
arising from the fair values of a group of derivative financial as-
sets and liabilities on the basis of their total net amount. Portfo-
lio-based valuation adjustments (credit valuation adjustments
and debit valuation adjustments) to the individual derivative fi-
nancial assets and financial liabilities are allocated using the rel-
ative fair value approach (net method).
Where hedge accounting is applied, changes in fair value of de-
rivative financial instruments are presented as part of other fi-
nancial result in the income statement or within other compre-
hensive income as a component of accumulated other equity,
depending on whether the hedging relationship is classified as a
fair value hedge or a cash flow hedge.
Fair value hedges are mainly used to hedge interest rate risks
relating to financial liabilities. The currency basis is not desig-
nated as part of the hedging relationship in the case of cross cur-
rency interest rate hedges accounted for as fair value hedges.
Accordingly, changes in the market value of such components
are recorded as costs of hedging within accumulated other eq-
uity. Amounts accumulated in equity are reclassified to other fi-
nancial result within the income statement over the term of the
hedging relationship.
In addition, for selected fixed-interest assets, a portion of the in-
terest rate risk is hedged on a portfolio basis in accordance with
IAS 39. The designated hedged items (underlying transactions)
are reported in the balance sheet as receivables from sales fi-
nancing or financial liabilities. Interest rate risks are hedged on
the basis of the present value of net cash flows relating to fixed
income assets (on the asset side) less cash flows relating to var-
iable-rate financing (on the liabilities side). The net cash flow de-
termined in this way is hedged by purchasing corresponding in-
terest rate swaps that have the effect of reducing the interest rate
risk. Hedge relationships are terminated and redesignated on a
monthly basis at the end of each reporting period, thereby taking
account of the constantly changing content of each portfolio.
Fair value hedge ineffectiveness is generally recognised in other
financial result.
The time values of option transactions and the interest compo-
nent – including the currency basis – of forward currency con-
tracts are not designated as part of the hedging relationship in
the case of currency hedges accounted for as cash flow hedges.
Changes in the fair value of such components are recorded as
costs of hedging on a separate line within accumulated other eq-
uity. Amounts recorded in accumulated other equity from cur-
rency hedges are reclassified to cost of sales when the related
hedged item is recognised in profit or loss.
In the case of raw materials hedges that are accounted for as
cash flow hedges, the hedging instruments are designated in full
as part of the hedging relationship. Amounts recorded in accu-
mulated other equity are included in the carrying amount of in-
ventories on initial recognition.
Ineffectiveness arising on cash flow hedges is recognised directly
in cost of sales, whereas the impact of prematurely terminated
hedging relationships is recognised in other operating income
and expenses.
Deferred income taxes are recognised for all temporary differ-
ences between the tax and accounting bases of assets and lia-
bilities, including differences arising on consolidation procedures,
as well as on unused tax losses and unused tax credits, when it
is probable that they can be utilised. As an exception to this, de-
ferred tax assets and liabilities resulting from the implementation
of the Organisation for Economic Co-operation and Develop-
ment (OECD) Pillar Two model rules are neither recognised nor
disclosed.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply to the period when the asset is real-
ised or the liability settled, based on tax rates and tax laws that
have been enacted or substantively enacted at the balance sheet
date.
The recoverability of deferred tax assets is assessed at each bal-
ance sheet date on the basis of planned taxable income in future
financial years. If with a probability of more than 50% future tax
benefits will not be realised, either in part or in total, a valuation
allowance is recognised on the deferred tax assets. The calcula-
tion of deferred tax assets requires assumptions to be made with
regard to the level of future taxable income and the timing of re-
covery of deferred tax assets. These assumptions take account
of forecast operating results, announced legislative changes in
connection with climate change and the impact on earnings of
287
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
the reversal of taxable temporary differences. Since future busi-
ness developments cannot be predicted with certainty and to
some extent cannot be influenced by the BMW Group, the meas-
urement of deferred tax assets is subject to uncertainty.
Deferred tax liabilities on taxable temporary differences arising
from investments in subsidiaries, branches and associated com-
panies as well as interests in joint arrangements are not recog-
nised if the Group is able to control the timing of the reversal and
it is probable that the temporary difference will not reverse in the
foreseeable future. This is particularly the case if it is intended
that profits will not be distributed, but rather will be used to main-
tain the substance and expand the volume of business of the en-
tities concerned.
Current income taxes are calculated within the BMW Group on
the basis of tax legislation applicable in the relevant countries. To
the extent that judgement was necessary to determine the treat-
ment and amount of tax items presented in the financial state-
ments, there is in principle a possibility that local tax authorities
may take a different position.
As a general rule, each income tax treatment is considered inde-
pendently when accounting for uncertainties in income taxes.
If it is not considered probable that an income tax treatment will
be accepted by the local tax authorities, the BMW Group uses the
most likely amount of the tax treatment when determining taxa-
ble profit and the tax base.
Inventories of raw materials, supplies and goods for resale are
stated at the lower of average acquisition cost and net realisable
value.
Work in progress and finished goods are stated at the lower of
manufacturing cost and net realisable value. Manufacturing cost
comprises all costs which are directly attributable to the
manufacturing process as well as an appropriate proportion of
production-related overheads. This includes production-related
depreciation and amortisation and an appropriate proportion of
administrative and social costs. Financing costs are not included
in the acquisition or manufacturing cost of inventories.
Inventories also include vehicles held for sale in the financial ser-
vices business, measured at their amortised cost or lower net re-
alisable value.
Cash and cash equivalents comprise mainly cash on hand and
cash at bank with an original term of up to three months. With the
exception of money market funds, cash and cash equivalents are
measured at amortised cost.
Financial liabilities, with the exception of lease liabilities, are
measured on first-time recognition at their fair value. For these
purposes, transaction costs are taken into account except in the
case of financial liabilities allocated to the category “measured at
fair value through profit or loss”. Subsequent to initial recognition,
liabilities are – with the exception of derivative financial instru-
ments – measured at amortised cost using the effective interest
method.
Provisions for pensions are measured using the projected unit
credit method. Under this method, not only obligations relating to
known vested benefits at the reporting date are recognised, but
also the effect of future expected increases in pensions and sal-
aries. The calculation is based on independent actuarial valua-
tions which take into account the relevant biometric factors.
In the case of funded plans, the pension obligation is offset
against plan assets measured at their fair value. If the plan as-
sets exceed the pension obligation, the surplus is tested for re-
coverability. In the event that the BMW Group has a right of reim-
bursement or a right to reduce future contributions, it reports
an asset (within Other financial assets), measured on the basis
of the present value of the future economic benefits attached to
the plan assets. For funded plans, in cases where the obligation
exceeds plan assets, a liability is recognised under pension pro-
visions.
The calculation of the amount of the provision requires assump-
tions to be made with regard to discount rates, pension trends,
employee fluctuation and the life expectancy of employees,
among other things. Discount rates are determined by reference
to market yields at the end of the reporting period on high-quality
fixed-interest corporate bonds.
Net interest expense on the net defined benefit liability or net in-
terest income on the net defined benefit assets are presented
separately within the financial result. All other costs relating to
allocations to pension provisions are allocated to costs by func-
tion in the income statement.
Past service cost arises where a BMW Group company intro-
duces a defined benefit plan or changes the benefits payable un-
der an existing plan. This cost is recognised immediately in the
income statement. Similarly, gains and losses arising on the set-
tlement of a defined benefit plan are recognised immediately in
the income statement.
Remeasurement of the net liability can result from changes in the
present value of the defined benefit obligation, the fair value of
the plan assets or the asset ceiling. Remeasurement can result,
amongst others, from changes in financial and demographic pa-
rameters, as well as changes following the portfolio develop-
ment. Remeasurements are recognised immediately through
other comprehensive income and ultimately in equity (within rev-
enue reserves).
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BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Other provisions are recognised when the BMW Group has a
present legal or factual obligation towards a third party arising
from past events, the settlement of which is probable and when
the amount of the obligation can be reliably estimated. The cur-
rent obligation is also recognised as a provision in the case of an
onerous contract. An onerous contract is a contract for which the
unavoidable expenditure necessary to fulfil the contractual obli-
gation exceeds the economic benefits expected to be received
from that contract. In principle, this cost-benefit analysis – which
is often subject to judgement – is carried out at the level of the
entire contract. Provisions with a remaining period of more than
one year are measured at their net present value.
The measurement of provisions for statutory and non-statu-
tory warranty obligations (statutory, contractual and volun-
tary) involves estimations. In addition to manufacturer warran-
ties prescribed by law, the BMW Group offers various further
standard (assurance-type) warranties depending on the product
and sales market. No provisions are recognised for additionally
offered service packages that are treated as separate perfor-
mance obligations.
Provisions for statutory and non-statutory warranties are recog-
nised at the point in time when control over the goods is trans-
ferred to the dealership or retail customer or when it is decided
to introduce new warranty measures. With respect to the level of
the provision, estimations are made in particular based on past
experience of damage claims and processes. Future potential re-
pair costs and price increases per product and market are also
taken into account. Provisions for warranties for all companies of
the BMW Group are adjusted regularly to take account of new
information, with the impact of any changes recognised in the in-
come statement. Further information is provided in ↗ note [34].
Similar estimates are also made in conjunction with the meas-
urement of expected reimbursement claims.
The recognition and measurement of provisions for litigation
and liability risks necessitate making assumptions in order to
determine the probability of liability, the amount of claim and the
duration of the legal dispute. The assumptions made, especially
the assumption about the outcome of legal proceedings, are sub-
ject to a high degree of uncertainty. The appropriateness of as-
sumptions is regularly reviewed, based on assessments under-
taken both by management and external experts, such as law-
yers. If new developments arise in the future that result in a dif-
ferent assessment, provisions are adjusted accordingly.
If the recognition criteria relevant for provisions are not fulfilled
and the outflow of resources on fulfilment is not unlikely, the po-
tential obligation is disclosed as a contingent liability.
Related party disclosures comprise information on associated
companies, joint ventures and non-consolidated subsidiaries as
well as individuals which have the ability to exercise a controlling
or significant influence over the financial and operating policies
of the BMW Group. This includes all persons in key positions of
the Company, as well as their close family members or interme-
diary companies.
In the case of the BMW Group, this also applies to members of
the Board of Management and the Supervisory Board. Details
relating to these individuals and entities are provided in ↗ note [41]
and in the list of investments disclosed in ↗ note [47].
Share-based remuneration programmes that provide for set-
tlement in shares or a cash payment with a direct obligation to
invest in shares of BMW AG common stock are measured at their
fair value at grant date. The related expense is recognised as
personnel expense in the income statement over the vesting pe-
riod and offset against capital reserves.
Share-based remuneration programmes expected to be settled
in cash are revalued to their fair value at each balance sheet date
between the grant date and the settlement date and on the set-
tlement date itself. The expense is recognised as personnel ex-
pense in the income statement over the vesting period and pre-
sented in the balance sheet as a provision.
The share-based remuneration programme for Board of Man-
agement members and senior heads of department entitles
BMW AG to elect whether to settle its commitments in cash or
with shares of BMW AG common stock. Based on the decision to
settle in cash, the share-based remuneration programmes for
Board of Management members and senior heads of depart-
ment are accounted for as cash-settled, share-based remunera-
tion programmes. Further information on share-based remuner-
ation programmes is provided in ↗ note [42].
289
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
NOTES TO THE INCOME STATEMENT
07 Revenues
Revenues by activity comprise the following:
in € million
2024
2023
Sales of products and related goods
103,984
118,769
Sales of products previously leased to customers
14,356
14,262
Income from lease instalments
12,523
11,664
Interest income on credit financing and
finance leases
6,092
5,279
Revenues from service contracts, telematics and
roadside assistance
3,822
3,648
Other income
1,603
1,876
Revenues
142,380
155,498
Revenues recognised from contracts with customers in accord-
ance
with
IFRS 15
totalled
€ 123,386 million
(2023: € 138,190 million), spread across the first, second and
fifth categories of the above table and proportionately to other
income.
Revenues by segment are shown in the explanatory comments
on segment information provided in ↗ note [46].
Revenues from the sale of products and related goods are gen-
erated primarily in the Automotive segment and, to a lesser ex-
tent, in the Motorcycles segment. Revenues from the sales of
products previously leased to customers, income from lease in-
stalments and interest income on credit financing and finance
leases are allocated to the Financial Services segment. Reve-
nues from service contracts, telematics and roadside assistance
are attributable mainly to the Automotive and Financial Services
segments, and, to a lesser extent, to the Motorcycles segment.
Other income relates mainly to the Automotive segment and the
Financial Services segment. This figure includes insurance pre-
miums relating to insurance contracts amounting to € 89 million
(2023: € 89 million).
The major part of revenues expected to arise from the Group’s
order book at the end of the reporting period relates to the sale
of vehicles. Revenues resulting from those sales will be recog-
nised in the next financial year.
The services included in vehicle sale contracts that will be recog-
nised as revenues in subsequent years represent an insignificant
portion of expected revenues. Accordingly, use has been made
of the practical expedient contained in IFRS 15, permitting an en-
tity not to disclose information on a quantitative basis due to the
short-term nature of items and the lack of informational value of
such disclosures.
Interest income on credit financing and finance leases includes
interest calculated on the basis of the effective interest method
totalling € 4,684 million (2023: € 4,081 million). This interest
income is not reported separately in the income statement as it
is not significant compared to total Group revenues.
08 Cost of sales
Cost of sales comprises:
in € million
2024
2023
Manufacturing costs
75,680
82,549
Cost of sales relating to financial services
business
30,277
27,764
thereof interest expense relating to
financial services business
4,902
3,554
Research and development expenses
7,642
7,538
Expenses for service contracts, telematics
and roadside assistance
2,885
2,780
Warranty expenditure
1,964
3,782
Other cost of sales
1,037
1,396
Cost of sales
119,485
125,809
Manufacturing costs are reduced by public-sector subsidies in
the form of reduced taxes on assets and reduced consumption-
based taxes amounting to € 111 million (2023: € 107 million).
Impairment losses recognised in the income statement in con-
nection with receivables from sales financing amounted to
€ 352 million (2023: € 168 million). In view of the fact that the
impairment losses are of minor importance compared to total
Group cost of sales, they have not been disclosed separately in
the income statement.
290
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Notes to the Group Financial Statements
Research and development expenses were as follows:
in € million
2024
2023
Research and development expenditure
9,078
7,755
New expenditure for capitalised
development costs
– 3,525
– 2,604
Amortisation
2,089
2,387
Research and development expenses
7,642
7,538
09 Selling and administrative expenses
in € million
2024
2023
Selling expenses
6,135
6,091
Administrative expenses
5,161
4,934
Selling and administrative expenses
11,296
11,025
Selling and administrative expenses relate mainly to expenses
for marketing and communication, personnel and IT.
10 Other operating income and expenses
Other operating income and expenses comprise the following
items:
in € million
2024
2023
Exchange gains
757
429
Income from the reversal of provisions
235
240
Income from the reversal of impairment
allowances and write-downs
18
2
Gains on the disposal of assets
26
58
Sundry operating income
375
316
Other operating income
1,411
1,045
Exchange losses
– 510
– 401
Expense for additions to provisions
– 228
– 399
Expense for impairment allowances and
write-downs
– 35
– 15
Loss on the disposal of assets
– 141
– 67
Sundry operating expenses
– 587
– 345
Other operating expenses
– 1,501
– 1,227
Other operating income and expenses
– 90
– 182
In 2024, exchange gains and losses include a net positive
amount of € 233 million arising primarily on the de-designation
of renminbi currency hedging transactions.
Income from the reversal of provisions includes income arising
on the reassessment of risks from legal disputes. The expense
for additions to provisions includes litigation and other legal risks.
Income from the reversal of and expenses for the recognition of
impairment allowances and write-downs relate mainly to impair-
ment allowances on receivables.
Impairment losses recognised on receivables from contracts with
customers amounted to € 35 million (2023: € 15 million).
11 Net interest result
Net interest result comprises the following:
in € million
2024
2023
Other interest and similar income
653
691
thereof from subsidiaries
35
37
Net interest income on the net defined benefit
liability for pension plans
2
10
Interest and similar income
655
701
Net interest impact on other long-term
provisions
– 330
– 467
Net interest expense on the net defined benefit
liability for pension plans
– 11
– 9
Other interest and similar expenses
– 232
– 180
thereof to subsidiaries
– 4
– 4
Interest and similar expenses
– 573
– 656
Net interest result
82
45
Interest expense from unwinding the discounting of other non-
current provisions on the one hand and interest income from ad-
justing the discount rate on the other are netted and, as in previ-
ous years, reported as a net interest effect within interest ex-
pense.
291
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12 Other financial result
in € million
2024
2023
Income from investments in subsidiaries
and participations
99
85
thereof from subsidiaries:
24
22
Expenses from investments in subsidiaries
and participations
– 248
– 142
thereof from subsidiaries:
– 6
–
Result on investments
– 149
– 57
Income (+) and expenses (–) from financial
instruments
– 457
– 1,215
Sundry other financial result
– 457
– 1,215
Other financial result
– 606
– 1,272
In addition to the investment result, the other financial result in-
cludes income and expenses arising on the measurement of
stand-alone derivatives and fair value hedge relationships, as
well as income and expenses from the measurement and sale of
marketable securities and shares in investment funds.
The negative sundry other financial result was attributable in par-
ticular to the unfavourable fair value development of interest rate
hedges as a consequence of the decline in yield curves and port-
folio effects.
13 Income taxes
Taxes on income of the BMW Group can be classified according
to their origin as follows:
in € million
2024
2023
Current tax expense
3,844
5,370
Deferred tax expense (+) / deferred tax income (–)
– 551
– 439
thereof relating to temporary differences
– 532
– 457
thereof relating to tax loss carryforwards and
tax credits
– 19
18
Income taxes
3,293
4,931
The tax expense was reduced by € 16 million (2023: € 33 mil-
lion) as a result of utilising tax loss carryforwards, for which de-
ferred assets had not previously been recognised and in conjunc-
tion with previously unrecognised tax credits and temporary dif-
ferences.
The tax income resulting from the change in the valuation allow-
ance on deferred tax assets relating to tax losses available for
carryforward and temporary differences amounted to € 42 mil-
lion (2023: € 19 million).
The BMW Group falls within the scope of the OECD Pillar Two
model rules aimed at ensuring a global minimum taxation rate of
15%. The income tax expense resulting from the first-time ap-
plication of the OECD Pillar Two model rules amounted to
€ 9 million in the financial year 2024. The BMW Group applies
the exemption relating to the recognition of deferred tax assets
and liabilities in connection with Pillar Two.
Deferred taxes are determined on the basis of tax rates which
are currently applicable or expected to apply in the relevant na-
tional jurisdictions when the amounts are recovered. After taking
account of an average municipal trade tax multiplier rate (Hebe-
satz) of 429% (2023: 430%), the underlying income tax rate for
Germany was as follows:
in %
2024
2023
Corporate tax rate
15.0
15.0
Solidarity surcharge
5.5
5.5
Corporate tax rate including
solidarity surcharge
15.8
15.8
Municipal trade tax rate
15.0
15.1
German income tax rate
30.8
30.9
Deferred taxes for non-German entities are calculated on the ba-
sis of the relevant country-specific tax rates. These ranged in the
financial year 2024 between 9.0% and 40.0% (2023: between
9.0% and 40.0%).
292
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Notes to the Group Financial Statements
The difference between the expected tax expense based on the
underlying tax rate for Germany and actual tax expense is ex-
plained in the following reconciliation:
in € million
2024
2023
Profit before tax
10,971
17,096
Tax rate applicable in Germany
30.8%
30.9%
Expected tax expense
3,379
5,283
Variances due to different tax rates
– 472
– 786
Tax increases (+) / tax reductions (-) due to:
Tax-exempt income
– 159
– 217
Non-deductible expenses
487
632
Equity accounted
4
44
Tax expense (+) / benefits (–) for prior years
– 16
– 284
Effects from tax rate changes
– 25
– 7
Other variances
95
266
Actual tax expense
3,293
4,931
Effective tax rate
30.0%
28.8%
The tax increases due to non-deductible expenses were mainly
attributable to withholding tax expenses.
Other variances included an amount of € 106 million (2023:
€ 304 million) attributable to deferred tax effects relating to prior
periods.
The allocation of deferred tax assets and liabilities to balance
sheet line items at 31 December is shown in the following table:
Deferred tax assets
Deferred tax liabilities
in € million
2024
2023
2024
2023
Intangible assets
21
18
4,866
4,674
Property, plant and equipment
183
263
1,985
1,987
Leased products
405
394
2,622
2,895
Other investments
6
3
–
–
Sundry other assets
1,938
1,478
3,152
3,334
Tax loss carryforwards and unused tax credits
178
182
–
–
Capital losses
484
461
–
–
Provisions
5,090
5,012
9
19
Liabilities
4,584
4,575
836
1,027
Eliminations
4,348
4,162
2,463
2,332
17,237
16,548
15,933
16,268
Valuation allowances on tax loss carryforwards and temporary differences
– 197
– 185
–
–
Valuation allowances on capital losses
– 484
– 461
–
–
Netting
– 13,312
– 13,471
– 13,312
– 13,471
Deferred taxes
3,244
2,431
2,621
2,797
Net
623
–
–
366
293
BMW Group Report 2024
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Other Information
Notes to the Group Financial Statements
Tax loss carryforwards relating to Germany and foreign opera-
tions amounted to € 575 million (2023: € 601 million). This in-
cludes tax losses available for carryforward amounting to
€ 321 million (2023: € 382 million), on which a valuation allow-
ance of € 106 million (2023: € 129 million) was recognised on
the related deferred tax asset. Of these loss carryforwards,
€ 264 million (2023: € 349 million) can be used indefinitely,
while € 35 million (2023: € 33 million) expires after one to three
years and € 22 million (2023: € 0 million) after more than three
years.
A net surplus of deferred tax assets over deferred tax liabilities
amounting to € 97 million (2023: € 95 million) is reported for
entities that have suffered tax losses in the financial year 2024
or the preceding year. The basis for the recognition of deferred
taxes is the BMW Group business model or management's as-
sessment that there is material evidence that the entities will
generate future taxable profit, against which deductible tempo-
rary differences can be offset.
Capital losses available for carryforward in the UK which do not
relate to ongoing operations changed due to currency factors to
a total of € 1,937 million (2023: € 1,845 million). As in previous
years, deferred tax assets recognised on these tax losses
amounting to € 484 million (2023: € 461 million) were fully writ-
ten down since they can only be utilised against future capital
gains.
Deferred tax assets and deferred tax liabilities are netted for each
relevant tax entity if they relate to the same tax authority.
The change in deferred taxes relating to amounts recognised
with income effect or without income effect is shown in the fol-
lowing reconciliation:
No deferred taxes are recognised on taxable temporary differ-
ences arising from investments in subsidiaries, associated com-
panies and joint ventures if the BMW Group is able to determine
the timing of the reversal of the temporary differences and it is
probable that the temporary differences will not reverse in the
foreseeable future, in particular in view of the fact that there is no
intention to distribute the profits, but rather to use them to main-
tain substance and reinvest in the companies concerned. Tem-
porary differences of this kind, for which no deferred taxes were
recognised, amounted to € 39,647 million (2023: € 36,081 mil-
lion). No computation was made of the potential impact of in-
come taxes on the grounds of proportionality.
Deferred tax liabilities on expected dividends amounted to
€ 131 million (2023: € 187 million) and related primarily to divi-
dends from foreign subsidiaries.
The tax returns of BMW Group entities are checked regularly by
German and foreign tax authorities. Taking account of numerous
factors – including interpretations, commentaries and legal deci-
sions relating to the various tax jurisdictions as well as past ex-
perience – adequate provision has been made, to the extent
identifiable and probable, for potential future tax obligations.
in € million
2024
2023
Deferred taxes at 1 January (assets (+) / liabilities (–))
– 366
– 1,007
Deferred tax expense (–) / income (+) recognised through income statement
551
439
Change in deferred taxes recognised directly in equity
392
227
thereof relating to fair value gains and losses on financial instruments and marketable securities recognised directly in equity
440
203
thereof relating to the remeasurements of net liabilities for defined benefit pension plans
– 70
24
thereof from currency translation
22
–
Exchange rate impact and other changes
46
– 25
Deferred taxes at 31 December (assets (+) / liabilities (–))
623
– 366
294
BMW Group Report 2024
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Notes to the Group Financial Statements
14 Earnings per share
2024
2023
Net profit attributable to the shareholders of BMW AG
€ million
7,290.0
11,290.3
thereof profit attributable to common stock
€ million
6,629.6
10,250.3
thereof profit attributable to preferred stock
€ million
660.4
1,040.0
Average number of common stock shares in circulation
number
570,599,065
579,941,360
Average number of preferred stock shares in circulation
number
56,741,178
58,776,197
Basic/diluted earnings per share of common stock
€
11.62
17.67
Basic/diluted earnings per share of preferred stock
€
11.64
17.69
Dividend per share of common stock
€
4.30*
6.00
Dividend per share of preferred stock
€
4.32*
6.02
* Proposal by the Board of Management.
As in the previous year, diluted earnings per share correspond to
basic earnings per share.
15 Personnel expenses
The income statement includes personnel expenses as follows:
in € million
2024
2023
Wages and salaries
12,394
12,170
Pension and welfare expenses
1,480
1,377
Social insurance expenses
1,248
1,174
Personnel expenses
15,122
14,721
Personnel expenses include € 54 million (2023: € 44 million) of
costs relating to workforce measures.
The total pension expense for defined contribution plans of the
BMW Group amounted to € 189 million (2023: € 179 million).
Employer contributions paid to state pension insurance schemes
totalled € 859 million (2023: € 806 million).
The average number of employees during the year was:
2024
2023
Average number of employees
157,110
152,111
Automotive
144,605
139,779
Motorcycles
4,043
3,794
Financial Services
8,367
8,440
Other
95
98
Of the average number of employees, 966 (2023: 995) are at-
tributable to one proportionately consolidated entity within the
Automotive segment.
16 Leases
a As lessee
In terms of accounting for leases as a lessee, the following ex-
penses are included in the income statement:
in € million
2024
2023
Expenses for leases of low-value assets and
short-term leases
79
81
Expenses relating to variable lease payments not
included in the measurement of lease liabilities
16
12
Interest expense arising on the measurement of
lease liabilities
66
66
Most of the expenses for leases of low-value assets and short-
term leases relate to low-value assets.
295
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Notes to the Group Financial Statements
The BMW Group is party to leases at the end of the reporting
period which have not yet commenced. These leases are ex-
pected to give rise to future cash outflows amounting to
€ 144 million (2023: € 480 million).
The BMW Group is also party to a number of long-term supply
contracts for battery cells and to one heat supply contract that
give rise to fixed and variable payment obligations. Based on the
current interpretation, these arrangements include a lease com-
ponent in accordance with IFRS 16. The fixed payment obliga-
tions arising from these contracts in accordance with IFRS 16
amounted to € 705 million (2023: € 749 million). The payments
for the supply of heat are required to be made from the beginning
of the financial year 2025, while the payment obligations under
the long-term supply contracts for battery cells will arise as from
the beginning of series delivery in the financial year 2026.
Cash outflows for leases in the financial year 2024 amounted to
€ 677 million (2023: € 675 million). In addition, cash outflows
for right-of-use assets paid in advance amounted to € 309 mil-
lion (2023: € 674 million).
Information on right-of-use assets, lease liabilities as well as fur-
ther explanatory comments are provided in ↗ note [6], ↗ note [20],
↗ note [22] and ↗ note [36].
b As lessor
in € million
2024
2023
Income from variable lease payments for
operating leases
141
110
Income from variable lease payments for
finance leases
8
4
Financial income on the net investment in
finance leases
1,324
1,127
Selling profit on the sale of vehicles leased to
retail customers under finance leases
1,650
1,919
Variable lease payments are based on distance driven. The
agreements have, in part, extension and purchase options.
17 Fee expense for the Group auditor
The fee expense pursuant to § 314 (1) no. 9 HGB recognised in
the financial year 2024 for the Group auditor and the PwC net-
work of audit firms amounted to € 22 million (2023: € 19 mil-
lion) and consists of the following:
Services provided during the financial year 2024 by the Group
auditor PricewaterhouseCoopers GmbH Wirtschaftsprüfungs-
gesellschaft, Frankfurt am Main, Munich branch, on behalf of
BMW AG and subsidiaries under its control relate to the audit of
financial statements and other attestation services. The audit of
financial statements comprises mainly the audit of the Group Fi-
nancial Statements and the separate financial statements of
BMW AG and subsidiaries, and all work related thereto, including
the review of the Interim Group Financial Statements. Other at-
testation services include mainly project-related audits, comfort
letters and statutorily prescribed, contractually agreed or volun-
tarily commissioned attestation work.
18 Government grants and government assistance
Income from asset-related and performance-related grants,
amounting to € 112 million (2023: € 98 million) and € 274 mil-
lion (2023: € 215 million) respectively, was recognised in the in-
come statement in 2024.
These amounts relate mainly to public sector grants aimed at the
promotion of regional structures as well as to subsidies received
for plant expansions and development.
PwC International
thereof PwC GmbH
in € million
2024
2023
2024
2023
Audit of financial statements
20
18
6
5
Other attestation services
2
1
2
1
Tax advisory services
–
–
–
–
Other services
–
–
–
–
Fee expense
22
19
8
6
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Notes to the Group Financial Statements
NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME
19 Disclosures relating to the statement of comprehensive
income
Other comprehensive income for the period after tax comprises
the following:
in € million
2024
2023
Remeasurement of the net liability for defined benefit pension plans
302
– 142
Income taxes
– 50
24
Items not expected to be reclassified to the income statement in the future
252
– 118
Marketable securities (at fair value through other comprehensive income)
2
113
thereof gains/losses arising in the period under report
12
33
thereof reclassifications to the income statement
– 10
80
Derivative financial instruments
– 3,306
– 1,808
thereof gains/losses arising in the period under report
– 1,571
– 507
thereof reclassifications to the income statement
– 1,735
– 1,301
Costs of hedging
919
766
thereof gains/losses arising in the period under report
72
– 102
thereof reclassifications to the income statement
847
868
Other comprehensive income from equity accounted investments
7
26
Income taxes
678
281
Currency translation foreign operations
1,108
– 1,772
Items that can be reclassified to the income statement in the future
– 592
– 2,394
Other comprehensive income for the period after tax
– 340
– 2,512
297
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Other Information
Notes to the Group Financial Statements
Income taxes on components of other comprehensive income
are as follows:
2024
2023
in € million
Before tax
Income taxes
After tax
Before tax
Income taxes
After tax
Remeasurement of the net liability for defined benefit pension plans
302
– 50
252
– 142
24
– 118
Marketable securities (at fair value through other comprehensive income)
2
– 1
1
113
– 35
78
Derivative financial instruments
– 3,306
941
– 2,365
– 1,808
536
– 1,272
Costs of hedging
919
– 262
657
766
– 220
546
Other comprehensive income from equity accounted investments
7
–
7
26
–
26
Currency translation foreign operations
1,108
–
1,108
– 1,772
–
– 1,772
Other comprehensive income
– 968
628
– 340
– 2,817
305
– 2,512
Other comprehensive income from equity accounted invest-
ments amounted to € 7 million (2023: € 26 million) and is re-
ported in the Group Statement of Changes in Equity within cur-
rency translation differences.
The hedging effects of derivative financial instruments that are
subsequently recycled to the acquisition cost of inventories are
not included in other comprehensive income after tax.
298
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Notes to the Group Financial Statements
NOTES TO THE BALANCE SHEET
20 Analysis of changes in Group tangible, intangible and investment assets 2024
Acquisition and manufacturing cost
Depreciation and amortisation
Carrying amount
in € million
1.1.2024
Translation
differences
Additions due
to changes in
consolidated
companies
Additions
Reclassifi-
cations
Disposals 31.12.2024
1.1.2024
Translation
differences
Current
year
Reclassifi-
cations
Value
adjustments1
Disposals 31.12.2024 31.12.2024 31.12.2023
Development costs
23,028
–
–
3,525
–
5,085
21,468
10,684
–
2,089
–
–
5,085
7,688
13,780
12,344
Goodwill
1,487
42
–
–
–
–
1,529
–
–
–
–
–
–
–
1,529
1,487
Other intangible assets
9,461
315
–
83
–
251
9,608
3,270
128
1,431
–
–
132
4,697
4,911
6,191
Intangible assets
33,976
357
–
3,608
–
5,336
32,605
13,954
128
3,520
–
–
5,217
12,385
20,220
20,022
Land, titles to land, buildings, including
buildings on third party land
21,957
388
–
1,066
1,664
185
24,890
8,709
131
999
–
–
150
9,689
15,201
13,248
thereof right-of-use assets from
leases
4,449
58
–
497
1
95
4,910
1,659
12
457
–
–
78
2,050
2,860
2,790
Plant and machinery
46,425
679
–
2,856
1,828
3,191
48,597
31,496
464
3,723
– 7
–
3,093
32,583
16,014
14,929
thereof right-of-use assets from
leases
1,717
4
–
300
167
52
2,136
444
1
395
–
–
23
817
1,319
1,273
Other facilities, factory and
office equipment
3,519
49
–
506
105
343
3,836
2,248
27
408
7
–
326
2,364
1,472
1,271
thereof right-of-use assets from
leases
156
7
–
79
–
33
209
67
2
46
–
–
28
87
122
89
Advance payments made and
construction in progress
5,818
142
–
4,5452
– 3,597
14
6,894
–
–
–
–
–
–
–
6,8943
5,818
Property, plant and equipment
77,719
1,258
–
8,973
–
3,733
84,217
42,453
622
5,130
–
–
3,569
44,636
39,581
35,266
Leased products
52,948
967
–
24,171
–
19,757
58,329
9,830
128
5,978
–
–
6,445
9,491
48,838
43,118
Investments accounted for using the
equity method
683
3
–
105
–
– 2
793
240
–
–
–
–
–
240
553
443
Investments in non-consolidated
subsidiaries
323
10
–
10
–
4
339
89
3
–
–
6
1
97
242
234
Participations
1,152
25
–
31
–
18
1,190
189
– 20
–
–
163
– 1
333
857
963
Other investments
1,475
35
–
41
–
22
1,529
278
– 17
–
–
169
–
430
1,099
1,197
1 Thereof expense amounting to € 169 million recognised in profit or loss.
2 Including advance payments for right-of-use assets amounting to € 38 million.
3 Including assets under construction amounting to € 5,963 million.
299
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Analysis of changes in Group tangible, intangible and investment assets 2023
Acquisition and manufacturing cost
Depreciation and amortisation
Carrying amount
in € million
1.1.2023
Translation
differences
Additions due
to changes in
consolidated
companies
Additions
Reclassifi-
cations
Disposals 31.12.2023
1.1.2023
Translation
differences
Current
year
Reclassifi-
cations
Value
adjustments1
Disposals 31.12.2023 31.12.2023 31.12.2022
Development costs
21,576
–
–
2,604
–
1,152
23,028
9,449
–
2,387
–
–
1,152
10,684
12,344
12,127
Goodwill
1,562
– 75
–
–
–
–
1,487
–
–
–
–
–
–
–
1,487
1,562
Other intangible assets
10,067
– 534
–
162
–
234
9,461
1,980
– 104
1,470
–
–
76
3,270
6,191
8,087
Intangible assets
33,205
– 609
–
2,766
–
1,386
33,976
11,429
– 104
3,857
–
–
1,228
13,954
20,022
21,776
Land, titles to land, buildings, including
buildings on third party land
21,442
– 413
112
998
356
538
21,957
8,147
– 74
996
– 1
–
359
8,709
13,248
13,295
thereof right-of-use assets from
leases
4,541
– 114
–
444
–
422
4,449
1,512
– 27
473
–
–
299
1,659
2,790
3,029
Plant and machinery
44,928
– 471
–
3,221
1,520
2,773
46,425
30,738
– 222
3,726
– 14
–
2,732
31,496
14,929
14,190
thereof right-of-use assets from
leases
979
– 3
–
701
43
3
1,717
141
–
303
–
–
–
444
1,273
838
Other facilities, factory and
office equipment
3,524
– 54
1
405
91
448
3,519
2,295
– 27
395
15
–
430
2,248
1,271
1,229
thereof right-of-use assets from
leases
154
– 4
–
49
–
43
156
63
– 1
47
–
–
42
67
89
91
Advance payments made and
construction in progress
3,412
– 81
405
4,0502
– 1,967
1
5,818
–
–
–
–
–
–
–
5,8183
3,412
Property, plant and equipment
73,306
– 1,019
518
8,674
–
3,760
77,719
41,180
– 323
5,117
–
–
3,521
42,453
35,266
32,126
Leased products
52,893
– 534
–
18,927
–
18,338
52,948
10,073
– 86
5,591
–
–
5,748
9,830
43,118
42,820
Investments accounted for using the
equity method
660
–
–
168
–
145
683
240
–
–
–
–
–
240
443
420
Investments in non-consolidated
subsidiaries
381
– 6
–
6
–
58
323
90
– 1
–
–
–
–
89
234
291
Participations
1,102
– 16
–
101
–
35
1,152
42
13
–
–
115
– 19
189
963
1,060
Other investments
1,483
– 22
–
107
–
93
1,475
132
12
–
–
115
– 19
278
1,197
1,351
1 Thereof expense amounting to € 115 million recognised in profit or loss.
2 Including advance payments for right-of-use assets amounting to € 79 million.
3 Including assets under construction amounting to € 4,565 million.
300
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
21 Intangible assets
Intangible assets mainly comprise capitalised development costs
on vehicle, module and architecture projects as well as rights re-
acquired in conjunction with a business acquisition. Also included
are subsidies for tool costs, licences, purchased development
projects, emissions allowances, software and purchased cus-
tomer bases.
Other intangible assets include brand-name rights amounting to
€ 98 million (2023: € 96 million) which are allocated to the Au-
tomotive segment and are not subject to scheduled amortisation
since their useful life is deemed to be indefinite. The brand-name
rights are, to an extent, subject to a limited right of ownership.
Intangible assets also include goodwill of € 33 million (2023:
€ 33 million) allocated to the Automotive excluding BMW Bril-
liance cash-generating unit (CGU) and goodwill of € 1,149 mil-
lion (2023: € 1,107 million) allocated to the BMW Brilliance
CGU. Goodwill amounting to € 347 million (2023: € 347 million)
related to the Financial Services CGU.
In addition, emission certificates and similar rights from pro-
grammes to reduce CO2e emissions with a carrying amount of
€ 74 million (2023: € 180 million) are included in other intangi-
ble assets.
As in the previous year, there was no requirement to recognise
impairment losses or reversals of impairment losses on intangi-
ble assets in 2024.
As in the previous year, no financing costs were recognised as a
cost component of intangible assets in 2024.
In 2024, government grants totalling € 3 million (2023: € 2 mil-
lion) were deducted from the acquisition cost of intangible as-
sets. These grants include public sector funds aimed at promot-
ing development.
22 Property, plant and equipment (including right-of-use
assets arising from leasing)
No impairment losses were recognised in 2024, as in the previ-
ous year.
As in the previous year, no financing costs were recognised as a
cost component of property, plant and equipment in 2024.
Right-of-use assets arising from leases of land and buildings re-
late primarily to logistics and office premises and, to a lesser ex-
tent, to selling and production premises. In order to secure these
premises and, in the interests of flexibility, the property rental
agreements concerned often contain extension and termination
options.
In 2024, government grants totalling € 195 million (2023:
€ 121 million) were deducted from the acquisition cost of prop-
erty, plant and equipment. These amounts relate mainly to public
sector grants aimed at the promotion of regional structures as
well as to subsidies received for plant expansions.
The regular review of the useful lives of items of property, plant
and equipment subject to systematic depreciation takes into ac-
count the assumptions contained in the long-term corporate
plan, and hence the progressive expansion of electric mobility as
well as the associated short- and medium-term impact on the
product portfolio. The review of useful lives did not lead to any
material adjustments in the financial year 2024.
23 Leased products
Minimum lease payments of non-cancellable operating leases
fall due as follows:
in € million
31.12.2024
31.12.2023
within one year
11,011
9,601
between one and two years
8,127
6,872
between two and three years
4,659
3,875
between three and four years
2,105
1,813
between four and five years
439
305
later than five years
72
52
Minimum lease payments
26,413
22,518
Impairment
losses
amounting
to
€ 533 million
(2023:
€ 553 million) were recognised on leased products in 2024 as a
consequence of changes in residual value expectations. Income
from the reversal of impairment losses amounted to € 292 mil-
lion (2023: € 274 million).
In 2024, public sector grants totalling € 355 million (2023:
€ 252 million) were deducted from the acquisition cost of leased
products. These amounts relate mainly to investment tax credits
in the form of tax credits for electric vehicles. It is expected that
the investment tax credits can be utilised. The actual utilisation
of investment tax credits will, however, depend on the extent to
which they can be offset against income tax liabilities and is
therefore subject to a degree of uncertainty.
301
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
24 Investments accounted for using the equity method
Investments accounted for using the equity method comprise in-
terests in the joint ventures YOUR NOW Holding GmbH, Munich
(YOUR NOW), and Beijing Ionchi New Energy Technology Ltd.,
Beijing (IONCHI), as well as interests in the associated compa-
nies IONITY Holding GmbH & Co. KG, Munich (IONITY), IONNA
LLC, Torrance (IONNA), Solid Power Inc., Wilmington, Delaware
(Solid Power), and THERE Holding B.V., Rijswijk (THERE).
YOUR NOW
Together with the Mercedes-Benz Group, the BMW Group offers
mobility services via the YOUR NOW joint venture.
The at-equity loss relating to YOUR NOW for the financial year
2024 amounted to € 14 million (2023: € 82 million).
IONCHI
In the financial year 2024, the BMW Group and the Mercedes-
Benz Group jointly founded the company IONCHI in China with
the aim of developing charging infrastructure there. The 50% in-
terest in the newly founded entity is accounted for as a joint ven-
ture using the equity method.
The at-equity loss relating to IONCHI in 2024 amounted to
€ 9 million.
IONITY
The BMW Group operates the entity IONITY in collaboration with
the Mercedes-Benz Group, the Ford Motor Company, the
Volkswagen Group and the Hyundai Motor Group. IONITY's busi-
ness model envisages the construction and operation of high-
performance charging stations for battery-powered vehicles in
Europe.
On 1 November 2021, IONITY signed a contract with GRP III
HPC Lux S.á.r.l. (Blackrock) for the provision of financing
amounting to € 500 million for the further expansion of the
charging network. In addition, the existing shareholders have
contributed € 200 million. With effect from 28 April 2022, on
completion of the transaction, Blackrock became IONITY’s larg-
est shareholder. As a result, the former joint venture became an
associated company of the BMW Group. The BMW Group has
significant influence as it is represented on IONITY's Supervisory
Board.
The at-equity profit relating to IONITY amounted to € 11 million
(2023: € 12 million). This includes remeasurement effects aris-
ing in conjunction with the transaction with Blackrock.
IONNA
In 2023, the BMW Group, together with the Mercedes-Benz
Group, the Stellantis Group, the Honda Group, the Hyundai Mo-
tor Group and the General Motors Company Group, founded the
company IONNA in the USA with the aim of developing a charg-
ing network in North America. Following the entry of Toyota Mo-
tor Corporation during the financial year 2024, the BMW Group’s
interest was diluted from 16.67% to 14.29%. The BMW Group
has significant influence as it is represented on IONNA’s Board
of Directors.
The at-equity loss relating to IONNA amounted to € 3 million
(2023: € 0 million).
Solid Power
The BMW Group holds shares in Solid Power, an industry-lead-
ing manufacturer of solid-state batteries for electric vehicles.
Joint development partnerships are in place with Solid Power
with a view to securing the supply of solid-state batteries for fu-
ture generations of electric vehicles. The BMW Group has signif-
icant influence as it is represented on Solid Power’s Board of Di-
rectors.
The at-equity profit relating to Solid Power for the financial year
2024 amounted to € 4 million (2023: at-equity loss of € 12 mil-
lion). An impairment loss was reversed in 2024, whereas an im-
pairment loss was recognised in the previous financial year.
in € million
2024
2023
D I S C L O S U R E S R E L A T I N G T O
T H E I N C O M E S T A T E M E N T
Profit/loss after tax
– 61
– 43
thereof from continuing operations
– 61
– 43
Other comprehensive income
1
–
Total comprehensive income
– 60
– 43
THERE
Together with AUDI AG, the Mercedes-Benz Group and other
companies, the BMW Group holds shares in THERE. HERE In-
ternational B.V. (HERE) is an associated company of THERE.
HERE's digital maps are laying the foundations for the next gen-
eration of mobility and location-based services, providing the ba-
sis for new assistance systems and, ultimately, fully automated
driving.
The at-equity loss relating to THERE for the financial year 2024
amounted to € 3 million (2023: at-equity loss of € 77 million). In
the previous year, impairment losses were recognised in relation
to THERE’s associated company HERE.
302
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Financial information relating to equity-accounted investments is
summarised in the following tables (from a 100% perspective):
YOUR NOW
IONCHI
IONITY
IONNA
THERE
in € million
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
D I S C L O S U R E S R E L A T I N G T O T H E B A L A N C E S H E E T
Non-current assets
60
68
94
–
750
574
22
–
1,104
1,109
Current assets
93
128
171
–
147
164
78
33
2
3
thereof cash and cash equivalents
56
77
168
–
87
96
78
33
1
3
Equity
66
77
166
–
725
573
90
31
959
973
Non-current financial liabilities, provisions and liabilities
23
28
80
–
109
41
3
–
146
137
Current financial liabilities, provisions and liabilities
64
91
19
–
63
124
7
2
1
2
R E C O N C I L I A T I O N O F A G G R E G A T E D F I N A N C I A L I N F O R M A T I O N
Assets
153
196
265
–
897
738
100
33
1,106
1,112
Provisions and liabilities
87
119
99
–
172
165
10
2
147
139
Net assets
66
77
166
–
725
573
90
31
959
973
Group’s interest in net assets
33
38
83
–
110
87
13
5
293
299
Carrying amount
33
38
83
–
110
87
13
5
296
299
D I S C L O S U R E S R E L A T I N G T O T H E I N C O M E S T A T E M E N T
Revenues
200
271
1
–
158
130
–
–
–
–
Scheduled depreciation
7
11
–
–
71
46
–
–
–
–
Profit/loss before financial result
– 12
– 131
– 20
–
– 59
– 27
– 22
– 2
– 1
– 1
Interest income
2
3
2
–
–
–
4
–
21
23
Interest expense
–
–
–
–
2
2
–
–
8
9
Income taxes
–
3
–
–
1
25
–
–
3
8
Profit/loss after tax
– 30
– 168
– 18
–
– 62
– 54
– 18
– 2
– 11
– 339
thereof from continuing operations
– 30
– 168
– 18
–
– 62
– 54
– 18
– 2
– 11
– 339
thereof from discontinued operations
–
–
–
–
–
–
–
–
–
–
Other comprehensive income
19
51
–
–
–
–
–
–
– 6
2
Total comprehensive income
– 11
– 117
– 18
–
– 62
– 54
– 18
– 2
– 17
– 337
303
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
25 Receivables from sales financing
Receivables from sales financing comprise the following:
in € million
31.12.2024
31.12.2023
Credit financing for retail customers and
dealerships*
70,121
65,733
Finance lease receivables
23,597
21,622
Receivables from sales financing
93,718
87,355
* Including operating leases.
As part of its ABS financing activities, the BMW Group transfers
some of its receivables from sales financing – primarily retail cus-
tomer and dealership financing receivables – to structured com-
panies, which in turn securitise them and place them on the cap-
ital market as collateralised securities.
For the purposes of ABS financing, only the senior tranches of
the issued securities are sold to external investors. Subordinated
tranches are retained by the BMW Group. Furthermore, the BMW
Group retains the exposure to interest rate risk in many transac-
tions for which it concludes corresponding interest rate deriva-
tives. The risk of delayed payments by debtors is reduced in the
majority of ABS financing agreements by cash reserves financed
by the BMW Group. Due to the risks remaining with the BMW
Group, the ABS financing arrangements did not result in the de-
recognition of the securitised financial assets.
The carrying amount of receivables from sales financing trans-
ferred but not derecognised at 31 December 2024 stood at
€ 15,758 million (2023: € 15,152 million). The fair value of
those receivables at that date was € 16,038 million (2023:
€ 15,332 million).
The carrying amount of the corresponding liabilities from asset-
backed financing transactions at 31 December 2024 stood at
€ 12,580 million (2023: € 12,089 million). The fair value of
these liabilities at that date was € 12,735 million (2023:
€ 12,148 million).
Impairment allowances on receivables from sales financing in
accordance with IFRS 9, which only arise within the Financial
Services segment, developed as follows:
Stage 1
Stage 2
Stage 3
in € million
General
Simplified
Total
Impairment allowances at 1 January 2024
581
929
36
643
2,189
Reclassification to Stage 1
7
– 75
–
– 3
– 71
Reclassification to Stage 2
– 23
253
–
– 43
187
Reclassification to Stage 3
– 5
– 72
– 2
302
223
Derecognition and origination of receivables
43
14
1
– 9
49
Write-off of receivables
– 1
– 30
– 1
– 184
– 216
Changes in risk parameters
– 9
7
–
9
7
Other changes
– 51
– 35
– 4
47
– 43
Impairment allowances at 31 December 2024
542
991
30
762
2,325
Stage 1
Stage 2
Stage 3
in € million
General
Simplified
Total
Impairment allowances at 1 January 2023
576
935
35
599
2,145
Reclassification to Stage 1
5
– 47
–
– 1
– 43
Reclassification to Stage 2
– 23
234
–
– 39
172
Reclassification to Stage 3
– 3
– 52
– 1
215
159
Derecognition and origination of receivables
54
26
2
– 20
62
Write-off of receivables
– 1
– 24
– 1
– 98
– 124
Changes in risk parameters
– 8
– 5
– 1
– 2
– 16
Other changes
– 19
– 138
2
– 11
– 166
Impairment allowances at 31 December 2023
581
929
36
643
2,189
304
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
In order to take into account the impact of the weaker macroeco-
nomic environment on its retail and dealership business, the
Group has recognised an additional risk allowance for expected
credit losses that are not fully reflected in the standard models
(post-model adjustments). The level of the risk allowance is re-
viewed regularly and has been reduced compared to the previ-
ous year across the countries concerned, as some of the weaker
overall economic development is now also taken into account in
the standard models. By contrast, the allowance for the Chinese
market was increased year on year and means – in combination
with the ongoing uncertainties and the overall subdued macroe-
conomic outlook – that the additional risk allowance remains
within the mid-three-digit million range.
Impairment allowances include € 133 million (2023: € 95 mil-
lion) on credit-impaired receivables relating to finance leases.
The estimated fair value of vehicles held as collateral for credit-
impaired receivables at the end of the reporting period totalled
€ 656 million (2023: € 488 million). The carrying amount of as-
sets held as collateral and taken back as a result of payment de-
fault amounted to € 83 million (2023: € 19 million).
Finance leases are analysed as follows:
in € million
31.12.2024
31.12.2023
due within one year
7,579
7,107
due between one and two years
7,168
6,560
due between two and three years
6,152
5,677
due between three and four years
4,987
4,134
due between four and five years
938
942
due later than five years
36
32
Gross investment in finance leases
26,860
24,452
due within one year
6,546
6,232
due between one and two years
6,376
5,857
due between two and three years
5,604
5,191
due between three and four years
4,670
3,935
due between four and five years
835
836
due later than five years
32
29
Net investment in finance leases without
loss allowances
24,063
22,080
Unrealised interest income
2,797
2,372
Loss allowances
466
458
Net investment in finance leases
23,597
21,622
26 Financial assets
Financial assets comprise:
in € million
31.12.2024
31.12.2023
Marketable securities and investment funds
1,470
2,170
Derivative instruments
1,497
2,926
Loans to third parties
22
18
Other
410
404
Financial assets
3,399
5,518
thereof non-current
834
1,387
thereof current
2,565
4,131
27 Income tax assets
Income tax assets totalling € 1,316 million (2023: € 1,199 mil-
lion) include claims amounting to € 26 million (2023: € 29 mil-
lion), which are expected to be settled after more than one year.
Claims may be settled earlier than this depending on the timing
of the underlying proceedings.
305
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
28 Other assets
Other assets comprise:
in € million
31.12.2024
31.12.2023
Return right assets for future
leased products
2,000
2,263
Collateral assets
892
455
Receivables from subsidiaries
684
642
Deposits
98
98
Receivables from companies in which an
investment is held
55
48
Other assets (financial instruments)
3,729
3,506
Other taxes
1,686
1,987
Advance payments
1,168
847
Expected reimbursement claims
818
819
Prepaid expenses
555
517
Other assets (non-financial instruments)
4,227
4,170
Sundry other assets
1,300
1,457
Other assets
9,256
9,133
thereof non-current
1,827
1,537
thereof current
7,429
7,596
Collateral assets comprise mainly customary collateral (banking
deposits) arising on the sale of asset-backed financing instru-
ments.
29 Inventories
Inventories comprise the following:
in € million
31.12.2024
31.12.2023
Finished goods and goods for resale
16,851
16,103
Work in progress, unbilled contracts
3,130
3,190
Raw materials and supplies
3,310
3,722
Vehicles held for sale in the
financial services business
1,096
693
Advance payments to suppliers
–
11
Inventories
24,387
23,719
Out of the total amount recognised for inventories at 31 Decem-
ber 2024, inventories measured at net realisable value
amounted to € 2,537 million (2023: € 1,346 million). Write-
downs to net realisable value in the financial year 2024
amounted to € 522 million (2023: € 189 million), while rever-
sals of write-downs amounted to € 15 million (2023: € 13 mil-
lion).
The expense recorded in conjunction with inventories during the
financial year 2024 amounted to € 75,333 million (2023:
€ 81,497 million).
At 31 December 2024, the carrying amounts of inventories ex-
pected to be realised after more than twelve months amount to
€ 54 million (2023: € 86 million).
30 Trade receivables
Trade receivables comprise the following:
in € million
31.12.2024
31.12.2023
Gross carrying amount
2,917
4,232
Allowances for impairment of Stage 2 –
simplified approach
– 11
– 18
Allowances for impairment of Stage 3
– 72
– 52
Net carrying amount
2,834
4,162
thereof non-current
3
3
thereof current
2,831
4,159
Impairment allowances on trade receivables in accordance with
IFRS 9 developed as follows:
in € million
2024
2023
Balance at 1 January
70
59
Allocated
22
17
Reversed
– 6
– 2
Utilised
– 3
– 3
Exchange rate impact and other changes
–
– 1
Balance at 31 December
83
70
In the case of trade receivables, collateral is generally held in the
form of vehicle documents and bank guarantees so that the risk
of bad debt loss is very limited.
Expenses for impairment losses and income from the reversal of
impairment losses are not significant for the BMW Group and are
therefore not reported separately in the income statement.
306
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Notes to the Group Financial Statements
31 Equity
Number of shares issued
BMW AG's issued share capital totalling € 638,716,075 com-
prises 579,795,667 shares of common stock, each with a par
value of € 1, and 58,920,408 shares of non-voting preferred
stock, each with a par value of € 1. The issued share capital and
the number of shares were reduced by € 24,123,400 in the pre-
vious financial year 2023 following the redemption of
22,199,529 shares of common stock and 1,923,871 shares of
preferred stock. These treasury shares had been acquired in con-
junction with the first share buyback programme 2022/2023.
The amount of the share capital reduction was reclassified to
capital reserves.
All Company stock is issued to bearer. Preferred stock bears an
additional dividend of € 0.02 per share.
Capital reserves
Capital reserves include mainly premiums arising from the issue
of shares, and totalled € 2,456 million (2023: € 2,456 million).
Revenue reserves
Revenue reserves include the non-distributed earnings of com-
panies consolidated in the Group Financial Statements. In addi-
tion, remeasurements of the net liability for defined benefit pen-
sion plans (and related income taxes) that are recognised
through other comprehensive income are also presented in rev-
enue reserves.
The Board of Management and the Supervisory Board propose
that the unappropriated profit of BMW AG for the financial year
2024 amounting to € 2,676,831,616.98 be utilised to pay a
dividend of € 4.32 for each share of preferred stock entitled to
receive a dividend, and a dividend of € 4.30 for each share of
common stock entitled to receive a dividend, and that the re-
maining amount be transferred to revenue reserves. Based on
the number of shares at 31 December 2024 entitled to receive
a dividend, the proposed distribution represents a total payout of
€ 2.7 billion.
The proposal for the appropriation of unappropriated profit takes
into account 13,363,612 treasury shares of common stock and
3,093,144 treasury shares of preferred stock held directly or in-
directly by the Company at 31 December 2024. In accordance
with § 71b of the German Stock Corporation Act (AKTG), these
shares are not entitled to receive a dividend.
The number of shares entitled to receive a dividend may change
prior to the Annual General Meeting. In this case, based on an
unchanged distribution per share of common and preferred stock
entitled to receive a dividend, a correspondingly amended reso-
lution concerning the appropriation of profit will be submitted to
the Annual General Meeting.
The proposed distribution was not recognised as a liability in the
Group Financial Statements.
Accumulated other equity
Accumulated other equity comprises amounts recognised
through other comprehensive income resulting from the transla-
tion of the financial statements of foreign subsidiaries, changes
in the fair value of derivative financial instruments and marketa-
ble securities, the cost of hedging measures as well as income
taxes relating to those items.
Treasury shares
At the Annual General Meeting of BMW AG held on
11 May 2022, the shareholders authorised the Board of Man-
agement to acquire treasury shares via the stock exchange, up
to a maximum of 10% of the share capital in place at the date of
the resolution or – if this value is lower – of the share capital in
place at the date of the respective exercise of the authorisation,
and to withdraw these shares from circulation without any further
resolution by the Annual General Meeting. The buyback authori-
sation remains valid until 10 May 2027.
In conjunction with this authorisation, on 3 May 2023, the Board
of Management approved a second share buyback programme
via the stock exchange. Under this programme, BMW AG is au-
thorised to acquire treasury shares of common and preferred
stock amounting to a maximum of € 1.65 billion and € 0.35 bil-
lion respectively. The second programme commenced immedi-
ately following completion of the first buyback programme and
will be completed by 31 December 2025 at the latest.
The acquisition serves the purpose of either redeeming the
shares at a later date and reducing share capital or using them
in conjunction with the Employee Share Programme.
Up to 31 December 2024, a total of 13,363,612 shares of com-
mon stock had been bought back via the stock exchange under
the second share buyback programme at an average price per
share of € 92.42 and a total acquisition cost of € 1,235 million.
This corresponds to 2.09% of share capital. The shares con-
cerned are held by BMW AG as treasury shares at the end of the
reporting period.
Preferred stock
Common stock
2024
2023
2024
2023
Shares in circulation at 1 January
57,977,516
59,395,329
575,577,304
586,683,189
Less: shares repurchased and withdrawn from circulation
2,150,252
1,417,813
9,145,249
11,105,885
Shares in circulation at 31 December
55,827,264
57,977,516
566,432,055
575,577,304
Treasury shares
3,093,144
942,892
13,363,612
4,218,363
Number of shares issued at 31 December
58,920,408
58,920,408
579,795,667
579,795,667
307
BMW Group Report 2024
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Up to 31 December 2024, a total of 3,093,144 shares of pre-
ferred stock had been bought back via the stock exchange under
the second share buyback programme at an average price per
share of € 85.67 and a total acquisition cost of € 265 million,
corresponding to 0.48% of share capital. The shares concerned
are held by BMW AG as treasury shares at the end of the report-
ing period.
Under the authorisation granted at the Annual General Meeting
in 2022, a total of 35,563,141 shares of common stock and
5,017,015 shares of preferred stock had been repurchased on
the stock exchange up to 31 December 2024, corresponding to
6.35% of share capital at the end of the reporting period.
On 10 September 2024 and on the basis of § 71 (1) no.2 AktG,
the Board of Management resolved a programme – carried out
during the period from 12 November to 29 November 2024 – to
buy back shares of common stock for employees. The acquisition
of shares under this programme was solely for the purpose of
fulfilling obligations arising from the existing Employee Share
Programme. Based on the applications received from eligible
employees, 1,352,000 shares of common stock were bought
back and subsequently sold to employees at a preferential price
of € 54.75 per share. These shares are entitled to receive divi-
dends for the first time with effect from the financial year 2024.
Capital management disclosures
The BMW Group’s objectives with regard to capital management
are to safeguard over the long-term the Group’s ability to con-
tinue as a going concern and to provide an adequate return to
shareholders.
The capital structure is managed in order to meet needs arising
from changes in economic conditions and the risks of the under-
lying assets.
The BMW Group is not subject to any unified external minimum
equity capital requirements. Within the Financial Services seg-
ment, however, there are a number of individual entities which
are subject to equity capital requirements of relevant regulatory
banking authorities.
In order to manage its capital structure, the BMW Group uses
various instruments, including the amount of dividends paid to
shareholders and share buybacks. Moreover, the BMW Group
actively manages debt capital, carrying out funding activities with
a target debt structure in mind.
A key aspect in the selection of financial instruments is the ob-
jective to achieve matching maturities for the Group’s financing
requirements. In order to reduce non-systematic risk, the BMW
Group uses a variety of financial instruments available on the
world’s capital markets to achieve diversification.
The capital structure at the end of the reporting period was as
follows:
in € million
31.12.2024
31.12.2023
Equity attributable to shareholders of BMW AG
92,315
89,596
Proportion of total capital
45.3%
48.5%
Non-current financial liabilities
66,770
52,880
Current financial liabilities
44,491
42,130
Total financial liabilities
111,261
95,010
Proportion of total capital
54.7%
51.5%
Total capital
203,576
184,606
Equity attributable to shareholders of BMW AG increased during
the financial year by 3.0%, primarily reflecting the increase in
revenue reserves.
32 Non-controlling interests
The 25% non-controlling interests of other shareholders in the
subsidiary BMW Brilliance represent a significant item in the
BMW Group’s balance sheet.
Total comprehensive income allocated to the other shareholders
of BMW Brilliance amounts to € 376 million (2023: € 615 mil-
lion). A dividend of € 984 million (2023: € 1,447 million) was
distributed to these shareholders during the financial year. At
31 December 2024, non-controlling interests in BMW Brilliance
amounted to € 2,415 million (2023: € 2,970 million).
Financial information relating to BMW Brilliance is summarised
in the following table (from a 100% perspective):
in € million
2024
2023
D I S C L O S U R E S R E L A T I N G T O T H E
I N C O M E S T A T E M E N T
Revenues
26,453
33,227
Profit after tax
1,413
3,262
Total comprehensive income
1,613
2,327
D I S C L O S U R E S R E L A T I N G T O T H E
B A L A N C E S H E E T
Non-current assets
15,826
16,352
Current assets
7,151
11,044
Non-current provisions and liabilities
3,314
3,601
Current provisions and liabilities
8,254
9,773
D I S C L O S U R E S R E L A T I N G T O T H E
C A S H F L O W S T A T E M E N T
Total cash flows
– 1,555
– 621
308
BMW Group Report 2024
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Combined Management Report
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Notes to the Group Financial Statements
33 Pension provisions
In the case of defined benefit plans, the BMW Group is required
to pay the benefits it has granted to present and past employees.
Defined benefit plans may be covered by provisions or pension
assets. In Germany, pension obligations of the BMW Group are
almost entirely covered by assets transferred to BMW Trust e.V.,
Munich (BMW Trust), in conjunction with a Contractual Trust Ar-
rangement (CTA) (funded plan). In addition, funded plans also
exist in the UK as well as in the USA, Switzerland, Belgium and
Japan. In the meantime, all of the main defined benefit plans
have been closed for new entrants and replaced by defined con-
tribution plans.
The assumptions stated below, which depend on the economic
situation in the relevant country, are used to measure the defined
benefit obligation of each pension plan. The following weighted
average values have been used for Germany, the UK and other
countries:
The following mortality tables are applied in countries in which
the BMW Group has significant defined benefit plans:
Germany
United Kingdom
Other
in %
31.12.2024
31.12.2023
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Discount rate
3.36
3.19
5.48
4.54
6.13
5.57
Pension level trend
2.01
2.24
2.28
2.17
–
–
Weighted duration of all pension obligations in years
13.0
13.8
12.1
13.1
12.2
12.8
Germany
Mortality Table 2018 G issued by Prof. K. Heubeck (with invalidity rates reduced by 70%)
United Kingdom
S4PA Tables and CMI_2023 model with improvement factor of 1.25%
309
BMW Group Report 2024
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Based on the measurement principles contained in IAS 19, the
following balance sheet carrying amounts apply to the Group’s
pension plans:
Germany
United Kindgom
Other
Total
in € million
31.12.2024
31.12.2023
31.12.2024
31.12.2023
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Present value of defined benefit obligations
13,255
12,721
4,847
5,306
892
891
18,994
18,918
Fair value of plan assets
13,391
12,528
5,560
6,079
752
740
19,703
19,347
Effect of limiting net defined benefit asset to asset ceiling
–
–
766
797
5
2
771
799
Carrying amounts
– 136
193
53
24
145
153
62
370
thereof pension provisions
3
193
72
77
147
157
222
427
thereof assets
– 139
–
– 19
– 53
– 2
– 4
– 160
– 57
The most significant of the BMW Group’s pension plans are de-
scribed below.
Germany
Employer-funded as well as employee-funded benefit plans exist
in Germany. In addition to retirement benefits, pension benefits
also include disability and surviving dependents' benefits. The
level of ongoing pension payments is adjusted in accordance with
§ 16 of the Company Pensions Act (Betriebsrentengesetz).
Two employer-funded pension plans are in place that are based
on defined contributions for which the level of benefits depends
on developments on the capital markets. Benefits granted by the
two plans are funded by a combination of the payment of fixed
monthly contributions by the Company, a deferred remuneration
option for employees and a matching contribution by the Com-
pany. Further contributions are made on the basis of the BMW
Group’s performance. A further plan is in place that is funded en-
tirely out of deferred remuneration. Due to the minimum interest
rate guaranteed by the BMW Group, these plans are all classified
as defined benefit plans in accordance with IAS 19. In addition to
the above plans, an employer-funded, defined benefit pension
plan with lifelong pension benefits remains in place which is now
closed to new entrants. The pension benefit is calculated by mul-
tiplying a fixed amount by the number of completed years of ser-
vice. Only employees who did not agree to a one-time option to
switch to the defined contribution system in 2021 and 2022 will
receive future increases in entitlements under this plan.
The assets of the German pension plans are invested by BMW
Trust (a German association) in accordance with a CTA. The rep-
resentative bodies of the association are the Board of Directors
and the Members' General Meeting. BMW Trust currently has
seven members and three members of the Board of Directors
elected by the Members' General Meeting. The Board of Directors
is responsible for investments, drawing up and deciding on in-
vestment guidelines as well as monitoring compliance with those
guidelines. The members of the association can be employees,
employee representatives, senior executives and members of the
Board of Management of BMW AG. An ordinary Members' Gen-
eral Meeting takes place once every calendar year, and deals with
a range of matters, including receiving and approving the associ-
ation's annual report, ratifying the activities of the Board of Direc-
tors and adopting changes to the association's statutes.
UK
Defined benefit plans exist in the UK which are closed for all plan
participants. Vested benefits remain in place. New benefits are
covered by contributions made to a defined contribution plan.
The defined benefit pension plans are administered by BMW
Pension Trustees Limited, Farnborough, and BMW (UK) Trustees
Limited, Farnborough, both trustee companies which act inde-
pendently of the BMW Group. BMW (UK) Trustees Limited is rep-
resented by ten trustees and BMW Pension Trustees Limited by
five trustees. A minimum of one-third of the trustees must be
elected by plan participants. The trustees represent the interests
of plan participants and decide on investment strategies. Funding
contributions to the funds are determined in agreement with the
BMW Group.
310
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Combined Management Report
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Other Information
Notes to the Group Financial Statements
The change in the net defined benefit liability for pension plans
can be derived as follows:
in € million
Defined
benefit obligation
Plan assets
Total
Effect of limitation of the
net defined benefit asset
to the asset ceiling
Net defined
benefit liability
1 January 2024
18,918
– 19,347
– 429
799
370
E X P E N S E / I N C O M E
Current service cost
382
–
382
–
382
Interest expense (+)/income (–)
677
– 711
– 34
43
9
Past service cost
41
–
41
–
41
R E M E A S U R E M E N T S
Gains (–) or losses (+) on plan assets, excluding amounts included in interest income
–
407
407
–
407
Gains (–) or losses (+) arising from changes in financial assumptions
– 906
–
– 906
–
– 906
Gains (–) or losses (+) arising from changes in demographic assumptions
– 48
–
– 48
–
– 48
Gains (–) or losses (+) arising from experience adjustments
277
–
277
–
277
Changes in the limitation of the net defined benefit asset to the asset ceiling
–
–
–
– 112
– 112
Transfers to fund
–
– 362
– 362
–
– 362
Employee contributions
111
– 111
–
–
–
Pensions and other benefits paid
– 742
743
1
–
1
Translation differences and other changes
284
– 322
– 38
41
3
31 December 2024
18,994
– 19,703
– 709
771
62
thereof pension provisions
222
thereof assets
– 160
311
BMW Group Report 2024
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
in € million
Defined
benefit obligation
Plan assets
Total
Effect of limitation of the
net defined benefit asset
to the asset ceiling
Net defined
benefit liability
1 January 2023
17,685
– 18,383
– 698
894
196
E X P E N S E / I N C O M E
Current service cost
366
–
366
–
366
Interest expense (+)/income (–)
704
– 748
– 44
43
– 1
Past service cost
27
–
27
–
27
R E M E A S U R E M E N T S
Gains (–) or losses (+) on plan assets, excluding amounts included in interest income
–
– 317
– 317
–
– 317
Gains (–) or losses (+) arising from changes in financial assumptions
458
–
458
–
458
Gains (–) or losses (+) arising from changes in demographic assumptions
– 174
–
– 174
–
– 174
Gains (–) or losses (+) arising from experience adjustments
329
–
329
–
329
Changes in the limitation of the net defined benefit asset to the asset ceiling
–
–
–
– 155
– 155
Transfers to fund
–
– 353
– 353
–
– 353
Employee contributions
107
– 107
–
–
–
Pensions and other benefits paid
– 673
667
– 6
–
– 6
Translation differences and other changes
89
– 106
– 17
17
–
31 December 2023
18,918
– 19,347
– 429
799
370
thereof pension provisions
427
thereof assets
– 57
Due to the fact that there is no right of reimbursement or right to
reduce future contributions, particularly to the fund of one pen-
sion plan in the UK, the amount of plan assets reported has been
limited to the amount of the obligations.
312
BMW Group Report 2024
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Other Information
Notes to the Group Financial Statements
Depending on the cash flow profile and risk structure of the pen-
sion obligations involved, plan assets relating to defined benefit
plans are invested in a diversified portfolio.
Plan assets in Germany, the UK and other countries comprised
the following:
In the financial year 2024, disbursements out of plan assets are
expected to exceed the employer's contributions to plan assets
by € 388 million. Plan assets of the BMW Group include own
transferable financial instruments amounting to € 11 million
(2023: € 17 million).
The BMW Group is exposed to risks arising both from defined
benefit plans and defined contribution plans with a minimum re-
turn guarantee. The discount rates used to calculate pension ob-
ligations are subject to market fluctuations and therefore influ-
ence the level of the obligations. Furthermore, changes in other
actuarial parameters, such as expected rates of inflation, also
have an impact on pension obligations. In order to reduce cur-
rency exposures, a substantial portion of plan assets is either in-
vested in the same currency as the underlying plan or hedged by
means of currency derivatives. As part of the internal reporting
procedures and for internal management purposes, financial
risks relating to the pension plans are reported using a value-at-
risk approach by reference to the pension deficit. The investment
strategy is also subject to regular review together with external
consultants, with the aim of ensuring that investments are struc-
tured to match the timing of pension payments and the expected
development of pension obligations. In this way, fluctuations in
pension provisions recognised in the balance sheet are reduced.
Germany
United Kingdom
Other
Total
in € million
31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023
Equity instruments
3,527
2,729
–
–
50
41
3,577
2,770
Debt instruments
6,479
6,561
3,592
4,237
58
53
10,129
10,851
thereof investment grade
5,789
5,479
3,592
4,237
58
53
9,439
9,769
thereof non-investment grade
690
1,082
–
–
–
–
690
1,082
Real estate funds
56
51
–
–
31
27
87
78
Money market funds
–
–
77
51
30
27
107
78
Other
272
289
–
–
4
1
276
290
Total with quoted market price
10,334
9,630
3,669
4,288
173
149
14,176
14,067
Debt instruments
345
341
962
682
1
1
1,308
1,024
thereof investment grade
341
336
–
–
–
–
341
336
thereof mixed funds
(funds without a rating)
4
5
962
682
–
–
966
687
thereof non-investment grade
–
–
–
–
1
1
1
1
Real estate
424
431
513
622
–
–
937
1,053
Cash and cash equivalents
142
73
–
–
–
–
142
73
Absolute return funds
409
466
2
52
–
–
411
518
Other
1,737
1,587
414
435
578
590
2,729
2,612
Total without quoted market price
3,057
2,898
1,891
1,791
579
591
5,527
5,280
Total plan assets
13,391
12,528
5,560
6,079
752
740
19,703
19,347
313
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
The defined benefit obligation relates to current employees, pen-
sioners and former employees with vested benefits as follows:
Germany
United Kingdom
Other
in %
31.12.2024
31.12.2023
31.12.2024
31.12.2023
31.12.2024
31.12.2023
Current employees
59.6
58.2
–
–
56.7
57.1
Pensioners
34.1
35.2
66.2
59.2
35.7
35.6
Former employees with vested benefits
6.3
6.6
33.8
40.8
7.6
7.3
Defined benefit obligation
100.0
100.0
100.0
100.0
100.0
100.0
The sensitivity analysis provided below shows the extent to
which changes in individual factors – independently of each other
– could influence the defined benefit obligation at the end of the
reporting period.
It is only possible to aggregate sensitivities to a limited extent.
Since the change in obligation follows a non-linear pattern,
estimates made on the basis of the specified sensitivities are only
possible with this restriction. The calculation of sensitivities using
ranges other than those specified could result in a dispropor-
tional change in the defined benefit obligation.
In the UK, the sensitivity analysis for the pension level trend also
takes account of restrictions due to caps and floors.
Change in defined benefit obligation
31.12.2024
31.12.2023
in € million
in %
in € million
in %
Discount rate
increase of 0.75%
– 1,238
– 6.5
– 1,418
– 7.5
decrease of 0.75%
1,455
7.7
1,671
8.8
Pension level trend
increase of 0.25%
299
1.6
325
1.7
decrease of 0.25%
– 285
– 1.5
– 319
– 1.7
Average life expectancy
increase of 1 year
445
2.3
515
2.7
decrease of 1 year
– 446
– 2.3
– 533
– 2.8
314
BMW Group Report 2024
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Notes to the Group Financial Statements
34 Other provisions
Other provisions changed during the year as follows:
in € million
1.1.2024
Additions due to
changes in
consolidated
companies
Translation
differences
Additions
Reversal of
discounting
Utilised
Reversed
31.12.2024
thereof due
within one year
Statutory and non-statutory warranty obligations, product guarantees
9,650
–
217
3,007
287
– 3,217
– 672
9,272
3,595
Obligations for personnel and social expenses
2,964
–
15
1,464
44
– 1,763
– 246
2,478
1,664
Bonus and price reductions
1,677
–
30
1,822
–
– 1,276
– 187
2,066
1,914
Other obligations
2,746
4
28
1,407
17
– 999
– 646
2,557
1,370
Other provisions
17,037
4
290
7,700
348
– 7,255
– 1,751
16,373
8,543
in € million
1.1.2023
Additions due to
changes in
consolidated
companies
Translation
differences
Additions
Reversal of
discounting
Utilised
Reversed
31.12.2023
thereof due
within one year
Statutory and non-statutory warranty obligations, product guarantees
8,251
–
– 235
4,243
391
– 2,674
– 326
9,650
4,333
Obligations for personnel and social expenses
3,249
–
– 12
1,782
47
– 2,061
– 41
2,964
1,979
Bonus and price reductions
1,443
–
– 44
1,144
–
– 761
– 105
1,677
1,545
Other obligations
2,818
–
– 44
1,399
38
– 932
– 533
2,746
1,383
Other provisions
15,761
–
– 335
8,568
476
– 6,428
– 1,005
17,037
9,240
Depending on when claims occur, it is possible that the BMW
Group may be called upon to fulfil the warranty or guarantee ob-
ligations over the whole period of the warranty or guarantee.
Warranty obligations decreased in the financial year 2024. Com-
pared to the previous year, lower sales volumes and increased
eliminations in connection with the rise in new leasing business
reduced additions to the provision. Warranty obligations in the
previous financial year were also impacted by increased addi-
tions in connection with airbags with inflators supplied by ARC
Automotive as well as by the remeasurement of the provision for
the exhaust gas recirculation cooler. Despite the recognition of
higher additions at 31 December 2024 for vehicle recalls in con-
nection with the Integrated Brake System, the expense for addi-
tions to warranty provisions was lower year on year.
Furthermore, reversals of provisions increased in 2024 due to
reversal of the provision relating to ARC Automotive. Expected
reimbursement claims at 31 December 2024 amounted to
€ 818 million (2023: € 819 million) and are disclosed within
other assets (see ↗ note [28]).
Provisions for obligations for personnel and social expenses
comprise mainly obligations relating to performance-related re-
muneration components, workforce measures as well as pre-re-
tirement part-time working arrangements and long-service
awards.
The provisions for other obligations cover numerous specific
risks and uncertain obligations, in particular for litigation and lia-
bility risks as well as risks relating to the order backlog.
35 Income tax liabilities
Current income tax liabilities totalling € 1,131 million (2023:
€ 1,401 million) include € 170 million (2023: € 50 million)
which are expected to be settled after more than twelve months.
Liabilities may be settled earlier than this depending on the tim-
ing of the underlying proceedings.
315
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
36 Financial liabilities
Financial liabilities of the BMW Group comprise the following:
31.12.2024
31.12.2023
in € million
Maturity within
one year
Maturity between one
and five years
Maturity later
than five years
Total
Maturity within
one year
Maturity between one
and five years
Maturity later
than five years
Total
Bonds
9,338
28,418
10,790
48,546
10,583
21,471
7,754
39,808
Asset-backed financing transactions
7,977
13,620
–
21,597
7,697
12,388
–
20,085
Liabilities from customer deposits (banking)
14,446
4,987
6
19,439
14,125
3,883
8
18,016
Liabilities to banks
5,711
2,171
808
8,690
3,868
1,272
684
5,824
Lease liabilities
520
1,399
634
2,553
484
1,367
688
2,539
Derivative instruments
1,566
2,825
816
5,207
1,349
2,124
927
4,400
Commercial paper
4,118
–
–
4,118
3,292
–
–
3,292
Other
815
102
194
1,111
732
108
206
1,046
Financial liabilities
44,491
53,522
13,248
111,261
42,130
42,613
10,267
95,010
Planned future cash outflows from variable lease payments,
which are not taken into account in the measurement of lease
liabilities, are expected to amount to € 39 million (2023:
€ 42 million).
Similarly,
potential
future
cash
outflows
amounting
to
€ 1,703 million (2023: € 1,639 million) (undiscounted) have not
been taken into account in the measurement of lease liabilities
as it is not reasonably certain that the leases will be renewed (or
not terminated). These cash outflows relate to periods of up to
89 years (2023: up to 90 years).
316
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Liabilities related to financing activities can be reconciled as
follows:
in € million
1.1.2024
Cash inflows/outflows
Changes due to
exchange rate factors
Basis adjustments from
hedge accounting
Other changes
31.12.2024
Bonds
39,808
6,985
1,485
328
– 60
48,546
Asset-backed financing transactions
20,085
1,021
483
–
8
21,597
Liabilities from customer deposits (banking)
18,016
937
464
4
18
19,439
Liabilities to banks
5,824
2,713
107
46
–
8,690
Lease liabilities
2,539
– 516
31
2
497
2,553
Commercial paper
3,292
693
131
–
2
4,118
Financial liabilities towards companies in which an investment is held
–
2
–
–
–
2
Other (excluding interest payable)
493
– 55
– 34
– 5
1
400
Liabilities relating to financing activities
90,057
11,780
2,667
375
466
105,345
in € million
1.1.2023
Cash inflows/outflows
Changes due to
exchange rate factors
Basis adjustments from
hedge accounting
Other changes
31.12.2023
Bonds
41,084
– 1,825
– 563
1,135
– 23
39,808
Asset-backed financing transactions
18,746
1,796
– 464
–
7
20,085
Liabilities from customer deposits (banking)
16,511
1,727
– 247
10
15
18,016
Liabilities to banks
7,255
– 1,201
– 279
49
–
5,824
Lease liabilities
2,764
– 516
– 64
–
355
2,539
Commercial paper
1,712
1,634
– 54
–
–
3,292
Financial liabilities towards companies in which an investment is held
–
–
–
–
–
–
Other (excluding interest payable)
662
– 131
– 38
–
–
493
Liabilities relating to financing activities
88,734
1,484
– 1,709
1,194
354
90,057
The total amount of interest payments received and interest pay-
ments made is comprised primarily of interest received and in-
terest paid in the Group Cash Flow Statement as well as the
cash-relevant portion of the interest income shown in Revenues
(see ↗ note [7]) and interest expense in Cost of sales respectively
(see ↗ note [8]).
317
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Bonds comprise the following:
Issuer
Interest
Issue volume
in relevant currency
(ISO Code)
Weighted average
maturity period
(in years)
Weighted average
nominal interest rate
(in %)
BMW Finance N.V.
variable
EUR 1,500 million
2.0
3.9
fixed
EUR 15,150 million
7.6
1.4
fixed
CNY 2,500 million
3.0
3.1
fixed
HKD 1,670 million
6.2
3.5
fixed
USD 500 million
10.0
2.9
fixed
AUD 273 million
10.0
3.2
BMW US Capital, LLC
variable
USD 2,800 million
2.4
6.0
fixed
USD 17,345 million
6.8
4.1
fixed
EUR 2,500 million
7.9
2.8
BMW International Investment B.V.
variable
EUR 1,200 million
2.0
3.7
variable
SEK 1,000 million
2.0
3.7
fixed
EUR 4,200 million
6.2
3.2
fixed
NOK 2,500 million
9.4
4.0
fixed
CHF 765 million
6.6
1.1
fixed
GBP 750 million
4.6
5.1
BMW China Capital B.V.
fixed
CNY 10,000 million
2.4
2.6
BMW Canada Inc.
fixed
CAD 1,550 million
3.2
4.0
BMW Japan Finance Corp.
fixed
JPY 20,000 million
3.0
0.8
Commercial paper comprises the following:
Issuer
Issue volume
in relevant currency
(ISO-Code)
Weighted average
maturity period
(in days)
Weighted average
nominal interest rate
(in %)
BMW US Capital, LLC
USD 1,921 million
27
4.4
BMW Finance N.V.
EUR 1,870 million
43
3.0
BMW International Investment B.V.
GBP 340 million
29
4.9
318
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
37 Other liabilities
Other liabilities comprise the following items:
in € million
31.12.2024
31.12.2023
Bonuses and sales aides
5,113
5,447
Refund liabilities for future leased products
2,803
2,963
Deposits received
1,239
1,079
Payables for supplier development cost*
1,079
380
Payables to subsidiaries
336
241
Payables to other companies in which an investment is held
21
38
Other liabilities (financial instruments)
10,591
10,148
Contract liabilities
8,644
7,998
Deferred income
3,568
3,359
Other taxes
1,409
1,613
Social security
145
130
Other advance payments received for orders
115
237
Other liabilities (non-financial instruments)
13,881
13,337
Sundry*
2,523
2,263
Other liabilities
26,995
25,748
* Presentation adjusted compared to previous year.
Liabilities arising from supplier development contracts include
development costs incurred during the series development
phase. In the financial year 2024 these liabilities were mainly at-
tributable to new vehicle models, in particular the NEUE KLASSE,
as well as expenses in connection with the further electrification
of the vehicle fleet.
Contract liabilities relate to obligations for service and repair work
as well as telematics services and roadside assistance agreed to
be part of the sale of a vehicle (in some cases multiple-compo-
nent arrangements). An amount of € 3,932 million (2023:
€ 4,239 million) was released from contract liabilities in the fi-
nancial year and recognised as revenues from contracts with
customers.
Deferred income includes down payments received on leases
with customers as well as deferred grants.
Grants comprise mainly public sector funds to promote regional
structures and which have been invested in the production plants
in Brazil, China, Germany, Mexico, Austria and South Africa
amongst others. The grants are partly subject to holding periods
for the assets concerned of up to five years and/or minimum em-
ployment figures or minimum production figures. Grants and
subsidies awarded before 31 December 2022 are released to
income over the useful life of the assets to which they relate.
Other non-financial liabilities also include insurance liabilities for
the remaining contractual terms of contracts accounted for in ac-
cordance with IFRS 17 amounting to € 331 million (2023:
€ 289 million).
38 Trade payables
Trade payables mainly have a remaining term of up to one year.
319
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Other Information
Notes to the Group Financial Statements
OTHER DISCLOSURES
39 Contingent liabilities and other financial commitments
Contingent liabilities
The following contingent liabilities existed at the balance sheet
date:
in € million
31.12.2024
31.12.2023
Taxes and customs duties1
1,701
1,707
Litigation
299
80
Investment subsidies
55
66
Guarantees
52
22
Other1
-
182
Contingent liabilities
2,107
1,8932
1 Presentation adjusted compared to previous year.
2 Prior year figures adjusted.
In the previous year, other contingent liabilities mainly included
obligations for irrevocable loan commitments. In the financial
year 2024, these amounts are reported in the following table as
other financial commitments.
The BMW Group determines its best estimate of contingent lia-
bilities on the basis of the information available at the date of
preparation of the Group Financial Statements. This assessment
may change over time and is adjusted regularly on the basis of
new information and circumstances. A part of the risks is covered
by insurance.
Since March 2019, the Chinese State Administration for Market
Regulation is conducting an antitrust proceeding against BMW
AG. In July 2024, the Brazilian antitrust authority launched an
antitrust proceeding against BMW AG and provided its prelimi-
nary statement of objections. The investigations each relate to
largely the same facts which were the subject of a proceeding
which was concluded by the European Commission in 2021 (see
↗ note [10] to the BMW Group Financial Statements for the finan-
cial year 2021 included in the BMW Group Report 2021).
Possible risks for the BMW Group in connection with the antitrust
proceedings in China and Brazil cannot be currently foreseen,
neither in terms of their outcome nor the amounts involved. In
relation to these allegations two individual customers’ lawsuits
have been pending in South Korea since June 2018. In addition,
claimants in a group litigation in England and Wales have
brought damages claims based on the European Commission’s
decision. Further civil lawsuits based on the allegations are pos-
sible going forward. Further disclosures pursuant to IAS 37.86
cannot be provided at present.
Beginning in 2014, regulatory authorities have ordered the BMW
Group to recall various vehicle models in conjunction with airbags
supplied by the Takata group of companies. Provision for the
costs involved has been recognised within warranty provisions.
In addition to the risks already covered by warranty provisions, it
cannot be ruled out that further vehicles of the BMW Group will
be affected by future recall actions. Further disclosures pursuant
to IAS 37.86 cannot be provided at present.
In May 2023, the National Highway Traffic Safety Administration
(NHTSA), an agency of the US federal government, requested a
recall of airbags in the USA that are equipped with airbag inflat-
ors produced by ARC Automotive. In the second half of 2024, the
NHTSA announced that it will continue its investigation before
deciding how to proceed and whether to issue a final decision.
Implications thereof for the BMW Group as well as implications
from class action lawsuits, which have been brought in this con-
text against the BMW Group in the USA and Canada, cannot be
estimated at present. Further disclosures pursuant to IAS 37.86
cannot be provided at present.
In March 2022, the European Commission (EC) conducted in-
spections at the premises of automobile manufacturers and as-
sociations located in several member states. In parallel, the EC
sent out formal requests for information to several automobile
manufacturers, including BMW AG. The inspections and
requests for information concern possible collusion in relation to
the collection, treatment and recovery of end-of-life vehicles and
light commercial vehicles. The inspections were conducted in co-
ordination with the UK Competition and Markets Authority, which
has initiated formal proceedings in respect of the UK market. The
competition authorities allege that car manufacturers (i) coordi-
nated the remuneration to be paid to dismantlers for the provi-
sion of their services and (ii) agreed that issues related to end-
of-life vehicles should be dealt with in a non-competitive way.
Appropriate risk provisions were recognised in the second quar-
ter 2022 in connection with these investigations. At the current
stage of the investigations, further risks for the BMW Group in
connection with the proceedings of the two authorities cannot be
quantified at present. In December 2023, the South Korean anti-
trust authority conducted an inspection at the premises of sev-
eral car manufacturers, including BMW Korea and opened formal
proceedings in March 2024. In June 2024, the Chinese Antitrust
Authority (SAMR) sent BMW AG a request for information, which
was answered within the set deadline. The investigation by the
South Korean antitrust authority and the request for information
by the Chinese Antitrust Authority have the same background as
the investigations of the European Commission and the UK Com-
petition and Markets Authority. Due to the relatively early stage
of these investigations, it is also not possible to provide further
information in this regard. Further disclosures pursuant to
IAS 37.86 cannot be provided at present.
Following a request for legal assistance from the Korean author-
ities in 2020 in connection with leaks in exhaust gas recirculation
modules in BMW Group vehicles, the Munich public prosecutor’s
office initiated an investigation and searched BMW Group offices
in Munich and Steyr in June 2022. The proceedings were finally
concluded in March 2024 and BMW Group agreed to pay a fine.
To the extent that aspects of this matter are under review by au-
thorities, the BMW Group continues to cooperate. Potential risks
for the BMW Group cannot be quantified at the present time.
320
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Further disclosures pursuant to IAS 37.86 cannot be provided at
present.
In several recent judgements, the European Court of Justice has
ruled on emission control systems in diesel vehicles and has sig-
nificantly tightened requirements pertaining to the justification of
these systems. As a result of these judgements by the European
Court of Justice, the interpretation of regulatory requirements for
emission control systems is evolving. This is reflected, amongst
other things, by the fact that established administrative practices
of type approval authorities are being questioned from numerous
sides. This development leads to a reassessment of civil pro-
ceedings pending in Germany due to the emissions performance
of BMW and MINI diesel vehicles. According to the previous es-
tablished case law of German national courts, damage claims
could only be asserted on the basis of intentional damage in-
flicted in a manner offending common decency. In its judgements
from 2023 linked to proceedings against other manufacturers
and taking into account the case law of the European Court of
Justice, the German Federal Court of Justice has ruled that a
manufacturer can also be held liable for negligent breach of EU
homologation standards and on the basis of a far-reaching re-
versal of the burden of proof to the detriment of the manufac-
turer. An increase in the effort and complexity of the defence in
individual cases, an increasing number of new court proceedings,
increased legal risks and increased financial expenditure are still
to be expected. Further disclosures pursuant to IAS 37.86 can-
not be provided at present.
In addition, the Kraftfahrt-Bundesamt (KBA) determined in Feb-
ruary 2024 that two functionalities of the emission control sys-
tem of the BMW vehicle model X3 with 2.0 litre diesel engine
(EU5), built between September 2010 and March 2014 do not
comply with legal requirements. The KBA views these function-
alities as prohibited defeat devices. The BMW Group has filed a
timely objection against this decision. Corrective measures are
currently being carried out after coordination with the responsible
type approval authorities.
Furthermore, the BMW Group is conducting an internal investi-
gation, supported by external legal advisers and technical ex-
perts, considering all relevant legal and factual aspects, to deter-
mine whether and to what extent functionalities of the emission
control systems of this and other past diesel vehicle models com-
ply with legal requirements and is in dialogue with responsible
authorities in this regard. In this context, the Munich public pros-
ecutor’s office has opened an investigation against unknown
(“Ermittlungsverfahren gegen Unbekannt”) in July 2024 and
conducted searches. Also, against the background of the devel-
opment in case law referred to above, it is possible that these
and further authorities, including type approval and law enforce-
ment authorities, and courts find fault with functionalities of the
emission control systems or deem them as non-compliant with
legal requirements. The investigation is complex and will still take
some time to complete. At this stage, it is not possible to make
any disclosures pursuant to IAS 37.86 with regard to the results
of the aforesaid investigation and the internal investigation and
possible measures to be taken as well as possible effects, includ-
ing administrative and court proceedings, and any financial risks
that may be related thereto.
Furthermore, several BMW Group entities have been facing a
number of diesel emissions-related court claims in England and
Wales since November 2021 as well as in Scotland since
March 2023. In November 2023, the High Court approved a
group litigation regarding the proceeding in England and Wales.
In addition to the BMW Group, several other OEMs are facing
similar proceedings in the same court. In March 2024, the court
selected the proceedings against five OEMs as lead proceedings;
BMW Group is not among them. In Scotland, the court also ap-
proved the combination of relevant claims in group proceedings.
In the course of 2024, the sued BMW Group entities filed their
defences in the two proceedings. Given that proceedings are still
at an early stage, the probability, amount or timing of any liability
cannot be determined at present. Further disclosures pursuant
to IAS 37.86 cannot be provided at present.
In the United Kingdom, motor finance customers file complaints
and civil lawsuits regarding commissions paid to motor dealers,
inter alia against BMW Financial Services (GB) Ltd., Farnborough
(BMW FS UK). In three cases not involving BMW FS UK but
brought against other lenders, the UK Court of Appeal (CoA)
handed down a single judgement on 25 October 2024. The CoA
concluded that motor dealers owe both a disinterested duty and
an ad hoc fiduciary duty to their customers (as borrowers) and
therefore are obligated to disclose the amount and nature of any
commission payments received and obtain informed customer
consent for such payments. Where the payment of commission
is not adequately disclosed, it is deemed "secret" and treated as
a civil bribe, which constitutes a breach of a motor dealer's fidu-
ciary duty. While the motor dealer is responsible for disclosing the
commission and obtaining informed consent, the CoA held that
where there is no disclosure of commission, the lender is also di-
rectly liable to the customer on the basis that the lender knew or
should have known that the commission payment was a civil
bribe. In the case of a partial disclosure of commission, the lender
is liable as an accessory to a claim for breach of fiduciary duty
against the motor dealer. As this ruling appears to conflict with
known market practice, it could have far reaching consequences
for the UK finance sector and potentially impact all of BMW FS
UK's finance products involving a commission paid to a motor
dealer. Accordingly, an application for permission to appeal the
judgment to the UK Supreme Court was made by the lenders in-
volved in the CoA cases with the written support of BMW FS UK,
various trade bodies, and the Financial Conduct Authority. That
application has been granted and due to the significance for the
UK finance sector, the expedited appeal is set to take place in
April 2025. An appropriate contingent liability is recognised and
reflected as litigation risk in the preceding table.
321
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Combined Management Report
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Other financial commitments
In addition to liabilities, provisions and contingent liabilities, the
following commitments exist for the BMW Group at the end of the
reporting period:
in € million
31.12.2024
31.12.2023
Purchase commitments for property, plant
and equipment
8,001
7,712
Purchase commitments for intangible assets
2,980
2,252
Obligations for irrevocable loan commitments
363
76
322
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
40 Financial instruments
The carrying amounts of financial instruments are assigned to
IFRS 9 categories in the following table:
31.12.2024
31.12.2023
in € million
At amortised cost
At fair value through
other comprehensive
income
At fair value through
profit or loss
Not allocated to an
IFRS 9 category
At amortised cost
At fair value through
other comprehensive
income
At fair value through
profit or loss
Not allocated to an
IFRS 9 category
A S S E T S
Other investments
–
–
802
297
–
–
911
286
Receivables from sales financing
69,523
–
–
24,195
65,092
–
–
22,263
Financial assets
Derivative instruments
Cash Flow Hedges
–
–
–
518
–
–
–
1,525
Fair Value Hedges
–
–
–
273
–
–
–
444
Other derivative instruments
–
–
706
–
–
–
957
–
Marketable securities and investment funds
–
1,366
104
–
–
2,127
43
–
Loans to third parties
19
–
3
–
17
–
1
–
Other
250
–
–
160
347
–
–
57
Cash and cash equivalents
17,214
–
2,073
–
16,055
–
1,272
–
Trade receivables
2,834
–
–
–
4,162
–
–
–
Other assets
Receivables from subsidiaries
684
–
–
–
642
–
–
–
Receivables from companies in which an
investment is held
55
–
–
–
48
–
–
–
Collateral assets
892
–
–
–
455
–
–
–
Remaining other assets
1,270
–
–
6,355
1,218
–
–
6,770
Total
92,741
1,366
3,688
31,798
88,036
2,127
3,184
31,345
323
BMW Group Report 2024
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Combined Management Report
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Other Information
Notes to the Group Financial Statements
31.12.2024
31.12.2023
in € million
At amortised cost
At fair value through
other comprehensive
income
At fair value through
profit or loss
Not allocated to an
IFRS 9 category
At amortised cost
At fair value through
other comprehensive
income
At fair value through
profit or loss
Not allocated to an
IFRS 9 category
L I A B I L I T I E S
Financial liabilities
Bonds
48,546
–
–
–
39,808
–
–
–
Liabilities to banks
8,690
–
–
–
5,824
–
–
–
Liabilities from customer deposits (banking)
19,439
–
–
–
18,016
–
–
–
Commercial paper
4,118
–
–
–
3,292
–
–
–
Assetbacked financing transactions
21,597
–
–
–
20,085
–
–
–
Derivative instruments
Cash Flow Hedges
–
–
–
1,978
–
–
–
1,598
Fair Value Hedges
–
–
–
1,953
–
–
–
2,073
Other derivative instruments
–
–
1,276
–
–
–
729
–
Lease liabilities
–
–
–
2,553
–
–
–
2,539
Other
1,111
–
–
–
1,046
–
–
–
Trade payables
14,126
–
–
–
15,547
–
–
–
Other liabilities
–
–
–
–
Payables to subsidiaries
336
–
–
–
241
–
–
–
Payables to other companies in which an
investment is held
21
–
–
–
38
–
–
–
Remaining other liabilities
9,023
–
–
17,615
8,171
–
–
17,298
Total
127,007
–
1,276
24,099
112,068
–
729
23,508
324
BMW Group Report 2024
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Disclosures relating to financial instruments measured at amortised
cost
The following table shows the fair values and carrying amounts
of financial assets and liabilities that are measured at amortised
cost and whose carrying amounts differ from their fair value.
The fair values are generally determined using the discounted
cash flow method, taking into account the relevant risk of default.
For the purposes of fair value measurement using the discounted
cash flow method, expected future cash flows are discounted on
the basis of up-to-date interest-rate curves observable on the
market.
The fair values of receivables from sales financing are measured
using the discounted cash flow method, taking into account
customer-specific credit risk. In view of the fact that these allow-
ances are calculated in part on the basis of internal information,
receivables from sales financing are allocated to Level 3 in the
level hierarchy in accordance with IFRS 13.
In the case of financial liabilities, own credit risk is taken into ac-
count based on credit default swaps available on the market, so
that the fair values of these items are allocated to Level 2.
For all other financial instruments not listed here that are meas-
ured at amortised cost, the carrying amount corresponds to the
fair value. For this reason, they are not presented separately.
31.12.2024
31.12.2023
in € million
Fair value
Carrying
amount
Fair value
Carrying
amount
Receivables from sales financing - credit financing
72,672
69,523
67,307
65,092
Receivables from sales financing - finance and operating leases
25,599
24,195
23,539
22,263
Financial liabilities
Bonds
49,977
48,546
40,919
39,808
Asset-backed financing transactions
22,220
21,597
19,951
20,085
Liabilities from customer deposits (banking)
19,149
19,439
17,591
18,016
Liabilities to banks
8,791
8,690
5,906
5,824
325
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Disclosures relating to financial instruments measured at fair value
The carrying amounts of financial instruments measured at fair
value are allocated to the measurement levels pursuant to
IFRS 13 as below:
31.12.2024
31.12.2023
Level hierarchy in accordance with IFRS 13
Level hierarchy in accordance with IFRS 13
in € million
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Marketable securities and investment funds
1,138
332
–
1,864
306
–
Other investments
91
–
711
146
–
765
Cash equivalents
2,073
–
–
1,272
–
–
Loans to third parties
–
–
3
–
–
1
Derivative instruments (assets)
Interest rate risks
–
276
–
–
794
–
Currency risks
–
525
–
–
1,278
–
Combined interest rate/currency risks
–
435
–
–
472
–
Raw material market price risks
–
197
–
–
324
–
Other risks
–
–
64
–
–
58
Derivative instruments (liabilities)
Interest rate risks
–
2,336
–
–
2,319
–
Currency risks
–
889
–
–
318
–
Combined interest rate/currency risks
–
594
–
–
373
–
Raw material market price risks
–
1,388
–
–
1,390
–
As a general rule, any transfers between fair-value hierarchy lev-
els are made at the end of the relevant reporting period.
There were no reclassifications within the level hierarchy in the
financial year 2024 or in the previous year.
326
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Financial instruments measured at fair value using input factors
not based on observable market prices are allocated to Level 3.
The fair values of these financial instruments are shown in the
following table:
in € million
Fair value
31.12.2024
Fair value
31.12.2023
Unquoted equity instruments
711
765
Convertible bonds
3
1
Options on unquoted equity instruments
64
58
Financial instruments allocated to Level 3 relate mainly to in-
vestments in a private-equity fund. The valuation of unlisted eq-
uity instruments is determined primarily using the market-based
approach. In particular, the financing rounds that take place
within the private equity sector (generally every 12–24 months)
represent a significant input factor for these purposes. In addi-
tion, the investment advisor provides the external fund manager
with relevant, investment-specific information on an ongoing ba-
sis (at least quarterly). The latter subsequently assesses the un-
derlying individual companies in accordance with the guidelines
for International Private Equity and Venture Capital Valuations
(IPEV).
As part of the process of analysing valuations, the external fund
manager reviews the investment-specific milestones, including
an analysis of financial, technical and liquidity-specific perfor-
mance indicators, among others. Based on this analysis, it is
considered whether the price of the most recent financing round
is acceptable as a reasonable market valuation, in particular for
early-stage or growth-phase investments. Key performance in-
dicators used for the purpose of milestone analysis are depend-
ent on the business model underlying the investment. Typical
technical key performance indicators relate to licenses and pa-
tents held, the stage of technology development such as evi-
dence of feasibility and prototypes, market entries, customer and
user growth and appointments to key management positions.
Key financial performance indicators used are revenues, EBITDA
and the corresponding growth rate and/or development of spe-
cific contribution margins. Key liquidity-specific performance
indicators are cash on hand, cash burn rates and prospects for
future financing rounds.
Since the pricing from the financing rounds is considered to be
the decisive input factor for the valuation, increases and de-
creases in valuation give rise to a similar change in the equity
instrument that is recognised in the income statement.
In addition, equity instruments that are held outside the private
equity fund are measured using the income approach. This in-
volves discounting cash flows on the basis of current business
cases using the weighted average cost of capital to determine
the fair value of the financial instrument. Changes in fair values
determined in connection with adjustments to significant input
factors are not material for the BMW Group.
The convertible bonds that have been classified to Level 3 are
primarily used as instruments in advance of future financing
rounds relating to private equity investments. Valuations are
therefore performed in accordance with the IPEV guidelines.
Mandatory conversions are usually structured in such a way that
the number of shares to be received depends on the future share
price. Due to the generally short maturities, the instruments are
subject to only insignificant fluctuations in value. Irrespective of
this fact, impairment tests are performed at regular intervals.
The fair value of the options that the BMW AG holds in shares of
such investee companies is measured primarily on the basis of a
binomial model, taking into account the respective conditions un-
der which the options were granted. The comments provided on
the income-based approach used to measure equity instruments
held outside the private equity fund apply analogously for the
purposes of determining the relevant share price that is taken
into account when measuring the fair value of the options. The
exercise price for share options arising in conjunction with the
private equity fund is generally low, verging towards zero. Con-
sequently, financing rounds have a direct impact on the fair value
of the options. In this respect, the valuation of options and as-
sessment of their impact on sensitivity is similar to the approach
taken to unquoted equity instruments, as described above.
327
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
The balance sheet carrying amount of Level 3 financial instru-
ments developed as follows:
in € million
Unquoted equity
instruments
Convertible bonds
Options on
unquoted equity
instruments
Financial
instruments
Level 3
1 January 2024
765
1
58
824
Additions
27
9
–
36
Disposals
– 11
–
–
– 11
Gains (+)/losses (–) recognised in
the income statement
– 113
– 7
5
– 115
Currency translation differences
43
–
1
44
31 December 2024
711
3
64
778
in € million
Unquoted equity
instruments
Convertible bonds
Options on
unquoted equity
instruments
Financial
instruments
Level 3
1 January 2023
839
8
2
849
Additions
99
–
–
99
Disposals
– 54
– 4
– 1
– 59
Gains (+)/losses (–) recognised in
the income statement
– 94
– 2
57
– 39
Currency translation differences
– 25
– 1
–
– 26
31 December 2023
765
1
58
824
Gains and losses recognised in the income statement are re-
ported within the line item Other financial result and included a
net negative amount of € 115 million (2023: net negative
amount of € 39 million) relating to unrealised items.
328
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Offsetting of financial instruments
Derivative financial instruments of the BMW Group are subject to
legally enforceable master netting agreements or similar con-
tracts. However, receivables and payables relating to derivative
financial instruments are not netted due to non-fulfilment of the
stipulated criteria. Offsetting would have the following impact on
the carrying amounts of derivatives:
31.12.2024
31.12.2023
in € million
Assets
Liabilities
Assets
Liabilities
Balance sheet amount as reported
1,497
5,207
2,926
4,400
Gross amount of derivatives which can be offset in case of insolvency
– 957
– 957
– 1,638
– 1,638
Cash collateral
– 233
– 19
– 1
– 95
Net amount after offsetting
307
4,231
1,287
2,667
Non-derivative financial assets and liabilities are only offset if a
legally enforceable right currently exists and it is actually in-
tended to offset the relevant amounts. No financial assets and
liabilities have been netted in the BMW Group due to the fact that
the necessary requirements for netting have not been met.
Gains and losses on financial instruments
The following table shows the net gains and losses arising on
financial instruments in accordance with IFRS 9:
in € million
2024
2023
Financial instruments measured at fair value through other comprehensive income
2
113
Financial instruments measured at fair value through profit or loss
– 122
– 161
Financial assets measured at amortised cost
– 349
– 482
Financial liabilities measured at amortised cost
– 71
– 67
329
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Net gains and losses arising on financial instruments measured
at fair value through other comprehensive income mainly relate
to changes in the fair value of marketable securities. Further de-
tails are provided in ↗ note [19]. Total interest income arising on
financial assets measured at fair value through other compre-
hensive income amounted to € 67 million (2023: € 82 million)
and total interest expense to € 0 million (2023: € 18 million).
Net gains and losses arising on financial instruments measured
at fair value through profit and loss mainly include results from
the fair value measurement of stand-alone derivatives, marketa-
ble securities and shares in investment funds, as well as other
financial assets.
Net gains and losses arising on financial assets measured at
amortised cost include mainly exchange rate gains/losses and
impairment losses/reversals.
Net gains and losses arising on financial liabilities measured at
amortised cost comprise mainly exchange rate gains/losses.
Financial instruments measured at amortised cost are some-
times subject to carrying amount adjustments that are recog-
nised through profit or loss as part of the application of hedge
accounting. These carrying amount changes are largely neutral-
ised by the offsetting changes in fair value arising on hedging
transactions and for this reason are not reported in the figures for
net gains and losses.
Total interest income arising on financial assets measured at
amortised cost relates mainly to the interest income earned on
credit financing and reported within revenues. Total interest ex-
penses arising on financial instruments measured at amortised
cost amounted to € 3,270 million (2023: € 2,505 million).
Credit risk
The BMW Group is exposed to counterparty credit risks if con-
tractual partners, for example a retail customer or a dealership,
are unable or only partially able to meet their contractual obliga-
tions. Information on the management of credit risk for receiva-
bles from financial services is provided in the Combined Manage-
ment Report (sections ↗ Outlook and ↗ Risks and Opportunities).
Notwithstanding the existence of collateral accepted, the carry-
ing amount of financial assets (with the exception of derivative
financial instruments) generally represents the maximum credit
risk. In addition, the credit risk is increased by additional unu-
tilised loan commitments in the dealership financing line of busi-
ness. Total dealership financing credit risk at the end of the re-
porting period therefore amounted to € 36,059 million (2023:
€ 32,149 million).
In the case of all relationships underlying non-derivative financial
instruments, in order to minimise the credit risk and depending
on the nature and amount of exposure, collateral is required,
credit information and references obtained or historical data
based on the existing business relationship, in particular pay-
ment behaviour, reviewed.
In the case of trade receivables, customers are regularly as-
sessed with regard to their credit risk. Depending on contractual
status, necessary measures, such as dunning procedures, are in-
itiated in good time.
The credit risk relating to cash deposits and derivative financial
instruments is minimised by the fact that the Group only enters
into such contracts with parties of first-class credit standing.
Within the financial services business, items financed for retail
customers and dealerships (such as vehicles, facilities and prop-
erty) serve as first-ranking collateral with a recoverable value.
Security is also put up by customers in the form of collateral asset
pledges, asset assignment and first-ranking mortgages, supple-
mented where appropriate by warranties and guarantees. Items
previously held as collateral that are subsequently acquired re-
late mainly to vehicles. As a rule, these assets can be converted
into cash at short notice through the dealership organisation.
Creditworthiness testing is an important aspect of the BMW
Group’s credit risk management. Every borrower’s creditworthi-
ness is tested for all credit financing and lease contracts entered
into by the BMW Group. In the case of retail customer financing,
creditworthiness is assessed using validated scoring systems in-
tegrated in the purchasing process. Transitory climate-related
risks are limited by the fact that customer financing can be re-
stricted if the customer is exposed to risks prevalent in a particu-
lar industry, and could therefore have an impaired credit rating.
In the area of dealership financing, creditworthiness is assessed
by means of ongoing credit monitoring and an internal rating sys-
tem that takes account not only of the material credit standing of
the borrower, but also of qualitative factors, such as past reliabil-
ity in business relations. At several group companies, part of the
creditworthiness assessment for dealership and importer financ-
ing also involves a classification with regard to physical and tran-
sitory climate-related risks, as well as risks relating to social and
governance factors. This approach will be rolled out worldwide in
2025.
The credit risk on trade receivables is assessed mainly on the
basis of information relating to overdue amounts. The gross car-
rying amounts of these receivables are allocated in accordance
with IFRS 9 to overdue ranges used for management purposes
as follows:
in € million
31.12.2024
31.12.2023
Not overdue
2,543
3,718
1–30 days overdue
170
339
31–60 days overdue
63
42
61–90 days overdue
16
29
More than 90 days overdue
125
104
Total
2,917
4,232
330
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Receivables from sales financing are allocated to internally de-
fined rating categories based on credit risk. The classification into
creditworthiness levels is based on default probabilities. The re-
lated gross carrying amounts in accordance with IFRS 9 are al-
located as follows:
31.12.2024
31.12.2023
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
in € million
General
Simplified
Total
Expected
credit loss
General
Simplified
Total
Expected
credit loss
Gross carrying amount of
financial assets with good
credit ratings
75,482
2,038
501
–
78,021
330
71,882
1,901
509
–
74,292
388
Gross carrying amount of
financial assets with medium
credit ratings
10,206
3,721
25
–
13,952
760
8,311
3,971
32
–
12,314
797
Gross carrying amount of
financial assets with poor
credit ratings
88
2,590
22
1,370
4,070
1,235
251
1,600
19
1,068
2,938
1,004
Total
85,776
8,349
548
1,370
96,043
2,325
80,444
7,472
560
1,068
89,544
2,189
Further disclosures relating to credit risk – in particular with re-
gard to the amounts of impairment losses recognised – are pro-
vided in the explanatory notes to the relevant categories of re-
ceivables in ↗ note [25] and ↗ note [30].
331
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Liquidity risk
The following table shows the maturity structure of expected
contractual cash flows (undiscounted) for financial liabilities:
31.12.2024
31.12.2023
in € million
Maturity within
one year
Maturity between
one and five years
Maturity later
than five years
Total
Maturity within
one year
Maturity between
one and five years
Maturity later
than five years
Total
N O N - D E R I V A T I V E F I N A N C I A L L I A B I L I T I E S
Bonds
10,800
31,872
12,412
55,084
11,308
23,450
9,150
43,908
Asset-backed financing transactions
8,526
14,057
–
22,583
8,161
12,996
–
21,157
Liabilities to banks
6,110
2,494
944
9,548
3,998
1,386
850
6,234
Liabilities from customer deposits (banking)
14,597
5,222
6
19,825
14,280
4,037
8
18,325
Trade payables
14,119
7
–
14,126
15,512
35
–
15,547
Lease liabilities
522
1,487
831
2,840
497
1,460
882
2,839
Commercial paper
4,133
–
–
4,133
3,298
–
–
3,298
Other financial liabilities
114
145
159
418
191
146
174
511
D E R I V A T I V E F I N A N C I A L L I A B I L I T I E S
With gross settlement
1,122
1,475
271
2,868
– 951
– 522
4
– 1,469
Cash outflows
21,234
30,650
4,643
56,527
18,145
12,650
598
31,393
Cash inflows
– 20,112
– 29,175
– 4,372
– 53,659
– 19,096
– 13,172
– 594
– 32,862
With net settlement
1,494
2,520
184
4,198
– 1,614
– 2,398
– 249
– 4,261
Cash inflows / outflows
1,494
2,520
184
4,198
– 1,614
– 2,398
– 249
– 4,261
Total financial liabilities
61,537
59,279
14,807
135,623
54,680
40,590
10,819
106,089
The cash flows from non-derivative liabilities comprise principal
repayments and the related interest. The amounts disclosed for
derivative financial liabilities comprise only cash flows relating to
derivatives that have a negative fair value at the balance sheet
date. It should be noted that, due to the various yield curves used,
an overall net positive cash flow may arise from inflows/outflows
relating to derivative instruments with negative fair values.
At 31 December 2024, credit commitments available at short
notice to dealerships which had not been called upon at the end
of the reporting period amounted to € 14,803 million (2023:
€ 13,218 million).
Solvency is assured at all times by managing and monitoring the
liquidity situation on the basis of a rolling cash flow forecast.
The resulting funding requirements are covered by a variety of
instruments placed on the world’s financial markets, with the aim
to minimise risk by matching maturities with financing require-
ments and in alignment with a dynamic target debt structure.
As a further reduction of risk, a syndicated credit line totalling
€ 8 billion (2023: € 8 billion) from a consortium of international
banks is available to the BMW Group. Intra-group cash flow fluc-
tuations are balanced out by the use of daily cash pooling ar-
rangements. Further information is provided in the Combined
Management Report.
332
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Market risks
The principal market risks to which the BMW Group is exposed
are currency risk, interest rate risk and raw materials market price
risk.
Protection against such risks is provided in the first instance
though natural hedging which arises when the values of non-de-
rivative financial instruments have matching maturities and
amounts (netting). Derivative financial instruments are used to
reduce the risk remaining after netting.
Currency, interest rate and raw materials market price risks of the
BMW Group are managed at a corporate level.
Further information is provided in the ↗ Outlook and ↗ Risks and
Opportunities sections of the Combined Management Report.
Currency risk
As an enterprise with worldwide operations, the BMW Group
conducts business in a variety of currencies, from which currency
risks arise. In order to hedge currency risks, derivative financial
instruments are in place at 31 December 2024, mostly in the
form of forward currency contracts and currency swaps.
As part of the implementation of the risk management strategy,
the extent to which risk exposures should be hedged is decided
at regular intervals. The economic relationship between the
hedged item and the hedging instrument is based essentially on
the fact that they are denominated in the same currency and
have the same maturities. Items are hedged on the basis of a
constant ratio of one to one between hedging instrument and risk
exposure.
Causes of hedge ineffectiveness are seen potentially only for
counterparty credit risk. However, in view of the processes that
have been established for credit risk management, ineffective-
ness is not expected to arise.
The BMW Group measures currency risk using a cash-flow-at-
risk model. The analysis of currency risk is based on forecast
foreign currency transactions which could result in exposures to
surpluses of foreign currency cash inflows and cash outflows. At
the end of the reporting period, the overall currency exposure –
in each case for the following year and determined by aggregat-
ing the individual currency exposures based on their absolute
amount – was as follows:
in € million
31.12.2024
31.12.2023
Currency exposure
34,979
39,157
Currency exposures include short positions amounting to
€ 5,354 million (2023: € 2,136 million).
The currency exposure is compared to all hedges that are in
place. The net cash flow surplus represents an uncovered risk
position. The cash-flow-at-risk approach involves showing the
impact of potential exchange rate fluctuations on operating cash
flows on the basis of probability distributions. Volatilities and cor-
relations serve as the main input factors to determine the rele-
vant probability distributions.
The potential negative impact on earnings is calculated at the re-
porting date for each currency for the following financial year on
the basis of current market prices and exposures with a confi-
dence level of 95%. The risk mitigating effect of correlations be-
tween the various currencies is taken into account when the risks
are aggregated.
The following table shows the potential negative impact for the
BMW Group for the following year resulting from unfavourable
changes in exchange rates, measured on the basis of the cash-
flow-at-risk approach.
in € million
31.12.2024
31.12.2023
Cash flow at risk
353
493
Interest rate risk
Interest rate risks arise when funds are borrowed and invested
with differing fixed-rate periods or differing terms. At the BMW
Group, all items subject to, or bearing, interest are exposed to
interest rate risk and can therefore affect both the assets and li-
abilities side of the balance sheet.
The fair value of the Group’s interest rate portfolios was as fol-
lows at the end of the reporting period:
in € million
31.12.2024
31.12.2023
Fair values of interest rate portfolios
68,725
73,510
Interest rate risk is managed through the use of interest rate de-
rivatives. As part of the implementation of the risk management
strategy, interest rate risks are monitored and managed at regu-
lar intervals. The interest rate contracts used for hedging pur-
poses comprise mainly swaps, which, if hedge accounting is ap-
plied, are accounted for as fair value hedges. The economic re-
lationship between the hedged item and the hedging instrument
is based on the fact that the main parameters of the hedged item
and the related hedging instrument (e.g. start date, term and cur-
rency), are the same. Items are hedged on the basis of a constant
ratio of one to one between hedging instrument and risk expo-
sure.
In view of the fact that own credit risk is excluded from the hedg-
ing relationship, ineffectiveness is expected to be low.
For selected fixed-interest assets, part of the interest rate risk is
hedged on a portfolio basis. In this case, swaps are used as the
hedging instrument. Hedge relationships are terminated and re-
designated on a monthly basis at the end of each reporting pe-
riod, thereby taking account of the constantly changing content
of each portfolio.
In light of the reform and replacement of certain benchmark in-
terest rates, some of the BMW Group’s hedging relationships
have been redesignated to take account of alternative bench-
mark interest rates.
333
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
The transition to the newly created or revised benchmark interest
rates is being managed, monitored and assessed with regard to
risk management implications as part of a multidisciplinary pro-
ject. The tasks of the conversion project include the continual
monitoring of regulatory developments, the initiation of neces-
sary changes to systems, processes, risk and measurement
models as well as the clarification of the associated accounting
and financial reporting implications. In the financial year 2024,
all contracts based on CAD CDOR were converted to alternative
benchmark interest rates (€ 34 million). In the prior year, all con-
tracts based on USD LIBOR were converted to alternative
benchmark interest rates (€ 412 million).
The BMW Group applies a value-at-risk approach throughout the
Group for internal reporting purposes and to manage interest
rate risk.
This approach is based on a historical simulation in which the
potential future fair value losses of the interest rate portfolios are
compared across the Group with expected amounts on the basis
of a holding period of 250 days and a confidence level of
99.98%. The risk mitigating effect of correlations between the
various portfolios is taken into account when the risks are aggre-
gated.
In the following table, the potential volumes of fair value fluctua-
tions – measured on the basis of the value-at-risk approach –
are compared with the expected value for the interest-rate-sen-
sitive exposures of the BMW Group:
in € million
31.12.2024
31.12.2023
Value at risk
1,921
1,967
Raw materials price risk
The BMW Group is exposed to market price risks on raw materi-
als. In order to hedge these risks, the Group mainly uses forward
commodity contracts. As part of the implementation of the risk
management strategy, the extent to which risk exposures should
be hedged is decided at regular intervals and the corresponding
hedging ratio defined. Items are hedged on the basis of a
constant ratio of one to one between hedging instrument and risk
exposure.
Causes of hedge ineffectiveness are seen potentially only for
counterparty credit risk. However, in view of the processes that
have been established for credit risk management, ineffective-
ness is not expected to arise.
The economic relationship between the hedged item and the
hedging instrument is based essentially on the fact that they
have the same basis and term. The BMW Group designates only
the commodity price index-linked raw materials surcharge, which
is specified in the purchase contracts of vehicle components, as
a hedged item. The proportion of the hedged risk component as
a percentage of the total fair value depends on the specific types
of vehicle component involved. Other price components con-
tained in the contract are not designated as being part of the
hedge relationship as no effective hedging instruments exist for
these components.
The starting point for analysing raw materials price risk is to iden-
tify planned purchases of raw materials or components contain-
ing raw materials, the so-called “exposure”. At each reporting
date, the exposure for the following financial year amounted to:
in € million
31.12.2024
31.12.2023
Raw material price exposures
8,303
9,033
This exposure is compared to all commodity hedging transac-
tions that are in place. The net cash flow surplus represents an
uncovered risk position. The cash-flow-at-risk approach involves
showing the impact of potential raw materials market price fluc-
tuations on operating cash flows on the basis of probability dis-
tributions. Volatilities and correlations serve as input factors to
assess the relevant probability distributions.
The potential negative impact on earnings is calculated at the re-
porting date for each raw materials category for the following fi-
nancial year on the basis of current market prices and exposure
with a confidence level of 95%. The risk mitigating effect of
correlations between the various categories of raw materials is
taken into account when the risks are aggregated.
The following table shows the potential negative impact for the
BMW Group resulting from fluctuations in prices across all cate-
gories of raw materials, measured on the basis of the cash-flow-
at-risk approach. The risk at each reporting date for the following
financial year was as follows:
in € million
31.12.2024
31.12.2023
Cash flow at risk
880
1,045
334
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Other Information
Notes to the Group Financial Statements
Disclosures on hedging measures
The following disclosures on hedging measures include deriva-
tives of fully consolidated companies that are designated as a
hedging instrument. The amounts shown in the table are stated
before deferred taxes and take account of additional effects aris-
ing from the application of the modified closing rate method.
The nominal amounts of hedging instruments were as follows:
31.12.2024
in € million
Maturity
within
one year
Maturity
between one
and five years
Maturity
later than
five years
Currency risks
15,804
18,452
283
Interest rate risks
7,299
18,614
8,232
Combined interest/currency
risks
–
4,759
4,045
Raw material price risks
3,236
4,466
–
Nominal amounts of
hedging instruments
26,339
46,291
12,560
31.12.2023
in € million
Maturity
within
one year
Maturity
between one
and five years
Maturity
later than
five years
Currency risks
22,648
18,328
–
Interest rate risks
7,055
19,169
8,626
Combined interest/currency
risks
908
961
791
Raw material price risks
3,519
5,329
–
Nominal amounts of
hedging instruments
34,130
43,787
9,417
The following table shows the average hedging rates of the fi-
nancial instruments used by the BMW Group to hedge significant
currency risk exposures:
Currency risks
31.12.2024
31.12.2023
EUR/CNY
7.37
7.40
EUR/GBP
0.89
0.87
EUR/KRW
1,453.03
1,405.05
The following table shows the average hedging rates of the fi-
nancial instruments used by the BMW Group to hedge significant
raw materials risk exposures:
Raw material price risks
31.12.2024
31.12.2023
Aluminium (EUR/t)
2,427
2,270
Copper (EUR/t)
8,201
7,398
Palladium (EUR/oz)
1,264
1,465
Lithium (EUR/t)
22,127
29,726
Due to the concentration on significant raw materials risk expo-
sures, nickel no longer represents a significant raw materials risk
exposure.
Information on average interest hedge rates is not provided,
since interest rate derivatives designated as hedging instru-
ments are used exclusively to hedge items in fair value hedges.
The hedge rates therefore correspond in each case to the current
market interest rate level.
Most of the hedges used in this context relate to variable yield
curves relating to the euro, US dollar and British pound currency
areas.
335
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Notes to the Group Financial Statements
The following table provides information on the nominal
amounts, carrying amounts and fair value changes of contracts
designated as hedging instruments:
31.12.2024
31.12.2023
Nominal amounts
Carrying amounts
Change in fair value
of designated
components
Nominal amounts
Carrying amounts
Change in fair value
of designated
components
in € million
Assets
Liabilities
Assets
Liabilities
Cash Flow Hedges
Currency risks
34,539
329
680
-679
40,976
1,200
211
1,654
Raw material price risks
7,702
189
1,298
-892
8,848
325
1,387
-2,161
Fair Value Hedges
Interest rate risks
54,325
183
1,650
582
49,236
288
1,956
1,414
Combined interest rate/currency risks
8,804
90
303
123
2,660
156
117
78
336
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Other Information
Notes to the Group Financial Statements
The following table shows key information on hedged items for
each risk category as well as the balances of designated compo-
nents within accumulated other equity:
31.12.2024
31.12.2023
Carrying amounts
Change in
value of
hedged items
Balances in accumulated
other equity
Carrying amounts
Change in
value of
hedged items
Balances in accumulated
other equity
in € million
Assets
Liabilities
Continuing
hedge
relationships
Terminated
hedge
relationships
Assets
Liabilities
Continuing
hedge
relationships
Terminated
hedge
relationships
Cash Flow Hedges
Currency risks
–
–
679
– 188
–
–
–
– 1,654
2,377
–
Raw material price risks
–
–
892
– 1,162
–
–
–
2,161
– 1,206
–
Fair Value Hedges
Interest rate risks
20,071
51,432
– 582
–
–
13,443
41,854
– 1,401
–
–
Combined interest rate/currency risks
–
31
– 120
–
–
–
2,605
– 75
–
–
The accumulated amount of hedge-related fair value adjust-
ments is a negative amount of € 60 million (2023: negative
amount of € 11 million) for assets and a negative amount of
€ 1,039 million (2023: negative amount of € 1,551 million) for
liabilities.
337
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Notes to the Group Financial Statements
Hedge relationships give rise to the following effects:
2024
2023
in € million
Change of designated
components in other
comprehensive income
Change in costs of
hedging in other
comprehensive income
Hedge ineffectiveness
recognised in
income statement
Change of designated
components in other
comprehensive income
Change in costs of
hedging in other
comprehensive income
Hedge ineffectiveness
recognised in
income statement
Cash Flow Hedges
Currency risks
– 2,565
946
–
351
765
–
Raw material price risks
44
–
–
– 1,868
–
–
Fair Value Hedges
Interest rate risks
–
–
–
–
–
13
Combined interest/currency risks
–
– 27
3
–
1
3
Designated components and costs of hedging within accumu-
lated other equity changed as follows:
2024
2023
Currency risks
Interest rate
risk
Combined
interest /
currency risk
Raw material price risk
Currency risks
Interest rate
risk
Combined
interest /
currency risk
Raw material price risk
in € million
Designated
component
Costs of
hedging
Costs of
hedging
Costs of
hedging
Designated
component
Costs of
hedging
Designated
component
Costs of
hedging
Costs of
hedging
Costs of
hedging
Designated
component
Costs of
hedging
Opening balance at 1 January
2,377
– 1,018
–
– 2
– 1,206
–
2,026
– 1,783
–
– 3
662
–
Change in fair value during the reporting period
– 679
99
–
– 27
– 892
–
1,654
– 103
–
1
– 2,161
–
Reclassification to profit or loss
for continuing hedge relationships
– 1,458
656
–
–
–
–
– 1,153
733
–
–
–
–
for terminated hedge relationships
– 428
191
–
–
151
–
– 150
135
–
–
2
–
Reclassification to acquisition costs for inventories
–
–
–
–
785
–
–
–
–
–
291
–
Closing balance at 31 December
– 188
– 72
–
– 29
– 1,162
–
2,377
– 1,018
–
– 2
– 1,206
–
338
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Other Information
Notes to the Group Financial Statements
The increase in prematurely terminated hedges of currency and
raw materials risk exposures was primarily due to the challenging
situation in the Chinese sales market. If, due to a change in ex-
pectations, an adequate hedging relationship no longer exists
with respect to a derivative currency or raw materials instrument,
the hedge accounting relationship is discontinued with immedi-
ate effect. All amounts recognised through other comprehensive
income up to this point in time are reclassified to the income
statement.
41 Related party relationships
The following individuals and entities are related parties in ac-
cordance with IAS 24:
—
Stefan Quandt and Susanne Klatten as well as companies
controlled by them
—
The Board of Management and the Supervisory Board of
the BMW Group
—
Associated companies, joint ventures, non-consolidated
subsidiaries, BMW Trust e.V., Munich, and BMW Founda-
tion Herbert Quandt, Munich
Transactions of the Group companies with related parties were
carried out, without exception, in the normal course of business
of each of the parties concerned and conducted at market condi-
tions, i.e. conditions that are also granted to other third-party
manufacturers.
No loans were granted by entities of the BMW Group to members
of the Board of Management and the Supervisory Board in the
financial year 2024, nor were any contingent liabilities entered
into on their behalf. During the year under report, members of the
Board of Management and the Supervisory Board concluded
contracts with BMW Group entities on customary market terms
and conditions for the purchase of vehicles, maintenance and re-
pair work, vehicle leasing and the investment of cash deposits in
the low single-digit million range.
Stefan Quandt is a shareholder and Deputy Chairman of the Su-
pervisory Board of BMW AG. He is also the sole shareholder and
Chairman of the Supervisory Boards of DELTON Health AG, Bad
Homburg v.d.H., and DELTON Technology SE, Bad Homburg
v.d.H., as well as the sole shareholder of DELTON Logistics
S.à r.l. Grevenmacher.
During the financial year 2024, DELTON Logistics S.à r.l. – via
its subsidiaries – performed logistic-related services for the BMW
Group. In addition, the DELTON companies held by Stefan
Quandt acquired vehicles from the BMW Group by way of leas-
ing.
Stefan Quandt is also the indirect majority shareholder of
SOLARWATT GmbH, Dresden. Cooperation arrangements are
in place between the BMW Group and SOLARWATT GmbH
within the field of electric mobility. The focus of this collaboration
is on the provision of complete photovoltaic solutions for rooftop
systems and carports of BMW Group customers. In addition,
SOLARWATT GmbH purchases battery cells and related com-
ponents for home battery storage applications as part of a supply
project. In addition to the deliveries of goods described above,
SOLARWATT GmbH also purchased vehicles from the BMW
Group by way of leasing during the financial year 2024.
Susanne Klatten is a shareholder and member of the Supervisory
Board of BMW AG and also the sole shareholder and Chair-
woman of the Supervisory Board of UnternehmerTUM GmbH,
Garching. In 2024, the BMW Group bought in services from
UnternehmerTUM GmbH mainly in the form of consultancy ser-
vices.
Due to the change in the indirect shareholding structure of
ALTANA AG, Wesel, with effect from 1 July 2024 the latter no
longer qualifies as a related party. For this reason, only the goods
and services provided and received up to that date are reported.
339
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Seen from the perspective of BMW Group entities, the volume of
significant transactions with the aforementioned entities was as
follows:
Supplies and services performed
Supplies and services received
Receivables at 31 December
Payables at 31 December
in € thousand
2024
2023
2024
2023
2024
2023
2024
2023
DELTON Health AG
1,993
2,058
–
–
3
16
–
–
DELTON Logistics S.à r.l.
689
753
9,642
9,698
22
29
1,188
986
SOLARWATT GmbH
32,680
21,452
146
60
–
3,083
50
–
UnternehmerTUM GmbH
–
–
3,294
3,387
–
–
66
71
ALTANA AG
1,125
2,900
–
1,066
–
361
–
118
In total, the following amounts of goods and services were sup-
plied to or received from joint ventures and associated compa-
nies:
Supplies and services performed
Supplies and services received
Receivables at 31 December
Payables at 31 December
in € million
2024
2023
2024
2023
2024
2023
2024
2023
Joint ventures and associated companies
18
4
33
86
55
-
7
17
Business relationships with non-consolidated entities are small
in scale.
BMW Trust e.V. administers assets on a trustee basis to secure
obligations relating to pensions in Germany and is therefore a
related party of the BMW Group in accordance with IAS 24. This
entity has no assets of its own. It had no income or expenses
during the period under report. BMW AG bears expenses on an
immaterial scale and performs services for BMW Trust e.V.
The BMW Foundation Herbert Quandt is an independent corpo-
rate foundation and, due to the BMW Group’s significant influ-
ence, qualifies as a related party according to IAS 24. The BMW
Group made donations to the BMW Foundation Herbert Quandt
during the financial year 2024 totalling € 5.9 million (2023:
€ 6.0 million) for ongoing foundation work and other services. No
other significant transactions arose.
340
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Notes to the Group Financial Statements
42 Share-based remuneration
The BMW Group has three share-based programmes: one for el-
igible employees, one for eligible senior department heads and
one for members of the Board of Management.
Employee Share Programme
Within the scope of the Employee Share Programme in the 2024
financial year, eligible BMW Group employees were granted
shares of BMW AG common stock on preferential terms (see
↗ note [31] for information on the number and price of the shares
of common stock issued). At their discretion, participants in the
programme were able to purchase packages of 10, 20, 30, 40
or 50 shares of common stock (2023: 10, 20, 30, 40 or 50
shares of common stock) at a discount of € 16.00 (2023:
€ 20.00) on each share as compared to the market price (aver-
age closing price in Xetra trading in the period from 4 to 7 No-
vember 2024: € 70.75). Employees who are currently employed
by BMW AG or a wholly owned subsidiary of BMW AG based in
Germany were able to partake in the programme, insofar as the
subsidiary’s management had decided to participate. Employees
were required to have been in their positions for at least one year
without interruption at the time the programme was announced,
and had to remain in their positions until the shares of common
stock were transferred.
The shares of common stock acquired within the scope of the
Employee Share Programme are subject to a vesting period of
four years calculated from 1 January of the year in which the
shares of common stock were acquired. These shares of com-
mon stock are eligible for dividends for the first time for the 2024
financial year.
A total of 1,352,000 shares of common stock were transferred
to employees in the reporting year (2023: 1,290,000). The
1,352,000 shares of common stock were acquired as part of the
Employee Share Programme. BMW AG’s Board of Management
decides each year anew whether to continue the programme.
As at 31 December 2024, the BMW Group recorded personnel
expenses resulting from the Employee Share Programme relat-
ing to the difference between the market price and the
discounted price for the shares of preferred stock purchased by
employees totalling € 18 million (2023: € 28 million).
Senior department head and Board of Management programme
Both the share-based remuneration programme for members of
the Board of Management that was in effect in the reporting year
and the share-based remuneration programme for eligible sen-
ior department heads serve to reward long-term entrepreneurial
conduct with sustainable business management in mind.
Board of Management members and eligible senior department
heads receive an earmarked cash amount (personal cash invest-
ment amount) that is, net of tax and deductions, to be invested
in shares of BMW AG common stock. This amount depends on
the attainment of specific financial and non-financial targets in
the previous financial year (vesting year).
Payment of the personal cash investment amount is made after
the Annual General Meeting at which the Financial Statements
are presented for the relevant financial year. The shares of com-
mon stock are purchased immediately after the personal cash in-
vestment amount has been paid out and are subject to a holding
period of four years from the date of purchase. The RoCE com-
ponent and the strategic focus target component each make up
half of the target amount for the personal cash investment
amount. For the RoCE component, an RoCE factor is determined
based on the RoCE achieved in the Automotive segment for the
grant year. For the strategic focus target component, a minimum
of two strategic focus targets are defined prior to the start of the
financial year. Minimum, target and maximum values are defined
and factors are assigned for the RoCE in the Automotive seg-
ment and for each strategic focus target. The relevant factors are
determined after the end of the financial year based on the extent
to which targets were achieved.
For financial years up to and including 2020, Board of Manage-
ment members received an earmarked cash amount (investment
component) corresponding to 45% of the gross amount of the
bonus that, net of tax and deductions, they were obliged to invest
in shares of the Company’s common stock. This amount was
also subject to a four-year holding period and on expiry thereof
the Board of Management members received one additional
share of the Company’s common stock or the equivalent value in
cash (matching component) for every three shares of common
stock held, at BMW AG’s discretion.
In the event of death or invalidity, special rules apply for early
payment of share-based remuneration components (matching
components) based on the target amounts, and the holding pe-
riod is also eliminated for shares of common stock that were ac-
quired with share-based remuneration components. Where the
service contract is terminated prematurely and the Company has
an extraordinary right of termination, or if the Board member re-
signs without the Company’s agreement, entitlements to
amounts as yet unpaid relating to share-based remuneration
(matching components) are forfeited; a personal cash invest-
ment amount will be settled based on the target amount.
Up to and including financial year 2021, eligible senior depart-
ment heads undertook to invest 26% of their earnings-related
bonus in shares of BMW AG common stock and to hold the ac-
quired shares for four years. For the investment obligation,
BMW AG granted an amount corresponding to the entire invest-
ment amount as a net subsidy.
Participants receive one additional share of common stock or the
equivalent value in cash for every three shares of common stock
held once the four-year holding requirement has been fulfilled, at
the Company’s discretion.
The members of the Board of Management in office on the bal-
ance sheet date hold 164,474 shares of BMW common stock
with a holding obligation arising from share-based remuneration
for financial years 2020 to 2023 (2023: 112,969).
The expenses and the corresponding allowance against the cash
reserve for the personal cash investment amount of the eligible
active Board of Management members and senior department
heads amount to € 4,682,583 (2023: € 21,776,062).
The share-based remuneration component is revalued at its fair
value at each balance sheet date between the grant date and the
341
BMW Group Report 2024
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Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
settlement date and on the settlement date itself. The expense
for such programmes is recognised in the income statement (as
personnel expense) on a straight-line basis over the vesting pe-
riod of the options and in the balance sheet as a provision.
The remuneration system does not provide for any further
matching components for the members of the Board of Manage-
ment from financial year 2021 or for the senior department
heads from financial year 2022.
The cash settlement of the share-based remuneration compo-
nent is measured at fair value on the balance sheet date (closing
price of BMW AG common stock in Xetra trading on 31 Decem-
ber 2024).
The total carrying amount of the provision for the share-based
remuneration component for eligible active and former Board of
Management members and senior department heads was 2024
€ 2,783,721 (2023: € 5,982,815).
The total income from the share-based remuneration compo-
nent for eligible active and former Board of Management mem-
bers and senior department heads amounted to € 65,186 in fi-
nancial year (2023: expense of € 1,598,368).
43 Declaration with respect to the Corporate Governance
Code
The Board of Management and the Supervisory Board of Bayer-
ische Motoren Werke Aktiengesellschaft have issued the pre-
scribed Declaration of Compliance with the recommendations of
the "Government Commission on the German Corporate Govern-
ance Code" required by § 161 AktG. The declaration has been
made permanently available on the Company's website
↗ www.bmwgroup.com.
44 Remuneration for members of the Board of Manage-
ment and the Supervisory Board
The expenses recorded in accordance with IFRS in financial year
2024 for remuneration for the active members of the Board of
Management and Supervisory Board are broken down as fol-
lows:
in € million
2024
2023
Remuneration for the members of the
Board of Management
Short-term benefits
19.1
32.9
Other long-term benefits
3.2
3.2
Benefits resulting from termination of the Board
mandate
–
5.4
Share-based remuneration
– 0.1
0.2
Remuneration for the members of the Supervisory Board
Short-term benefits
5.8
5.8
Total expense
28.0
47.5
The income for the active members of the Board of Management
arising from share-based remuneration, in effect up to and in-
cluding 2020, amounted to € 0.1 million (2023: expense
€ 0.2 million). The provision for the share-based remuneration
component amounted to € 0.3 million (2023: € 0.9 million).
The remuneration of former members of the Board of Manage-
ment and their dependants amounted to € 13.2 million (2023:
€ 11.9 million).
Provisions have been recognised for pension obligations to ac-
tive members of the Board of Management in accordance with
IAS 19 in the amount of € 22.7 million (2023: € 16.5 million).
Provisions have been recognised for pension obligations to for-
mer members of the Board of Management and their depend-
ants in accordance with IAS 19 in the amount of € 93.3 million
(2023: € 101.6 million).
The remuneration system for members of the Supervisory Board
does not include any stock options, value appreciation rights
comparable to stock options or any other share-based remuner-
ation components.
In accordance with the Articles of Incorporation, each member of
the Supervisory Board of BMW AG who does not exercise any
additional function relevant to remuneration receives fixed remu-
neration of € 200,000 p.a. in addition to the reimbursement of
his or her reasonable expenses, plus an attendance fee of
€ 2,000 for every plenary meeting that the member has at-
tended.
Members of the Supervisory Board who perform a function rele-
vant to remuneration such as the Chairman or Deputy Chairman
of the Supervisory Board or the chairmen or members of com-
mittees, provided these committees meet on at least three days
in the financial year, receive higher remuneration on account of
these additional requirements.
Overview of the remuneration of the Supervisory Board1
in € million
Factor
Amount in € p.a.3
Member of the Supervisory Board
1.00
200,000
Chairman of the Supervisory Board
3.00
600,000
Deputy Chairman of the Supervisory
Board
2.00
400,000
Chairman of the Audit Committee2
2.25
450,000
Chairman of another committee2
2.00
400,000
Member of the Audit Committee2
2.00
400,000
Member of another committee2
1.50
300,000
1 If a Supervisory Board member performs more than one of the functions referred to above, their
remuneration is measured only on the basis of the function that is remunerated with the highest
amount.
2 Provided that the committee has met on at least three days during the financial year.
3 Plus an attendance fee of € 2,000 per plenary session.
BMW Group companies did not grant any loans to members of
the Board of Management or the Supervisory Board in the 2024
financial year, nor did they enter into any contingent liabilities in
their favour. In the reporting year, members of the Board of Man-
agement and the Supervisory Board concluded contracts with
BMW Group companies for the purchase of vehicles, other ser-
vices (including maintenance and repair work), vehicle leasing
and cash deposits at arm’s length conditions.
342
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Other Information
Notes to the Group Financial Statements
The remuneration of members of the Board of Management is structured as follows:
COMPONENT
Parameters/measurement base, applicable amounts
FIXED REMUNERATION COMPONENTS
Base salary
Member of the Board of Management:
— € 0.90 million p.a. (first period of office = first remuneration level)
— € 1.05 million p.a. (from second period of office or fourth year of mandate = second remuneration level)
Chairman of the Board of Management:
— € 1.95 million p.a.
Base salary is paid monthly on a pro rata basis
Fringe benefits
Contractual agreement, main points: non-cash benefits from the use of company cars and the BMW chauffeur service, insurance premiums, contributions towards security systems, employee discounts
Compensation payments
The Supervisory Board may award payments to compensate for loss of salary from a previous employment relationship and to cover relocation costs in the case of new entrants
Retirement benefits
Defined contribution system with a guaranteed minimum return
Benefits based on amounts credited to individual savings accounts for contributions paid and interest earned, various forms of disbursement
Pension contribution p.a.:
Member of the Board of Management: € 400,000
Chairman of the Board of Management: € 700,000
Strategic relevance
— The base salary counteracts the temptation to take disproportionately high risks in order to achieve short-term goals, and thus contributes to the long-term development of the Company
— Fixed remuneration components are required for remuneration to be competitive in order to attract and retain qualified members of the Board of Management
VARIABLE REMUNERATION
COMPONENTS
Bonus
Bonus
(sum of earnings component and
performance component)
— Target amount p.a. (at 100% target achievement):
— € 0.95 million (first period of office = first remuneration level)
— € 1.15 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.10 million (Chairman of the Board of Management)
— Capped at 180% of target amount
— Payment as part of the next payroll run after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
Earnings component
(at 100% target achievement corresponds
to 50% of target amount)
— Assessment period one year
— Base amount p.a. (50% of target bonus amount):
— € 0.475 million (first period of office = first remuneration level)
— € 0.575 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.050 million (Chairman of the Board of Management)
— Formula: 50% of target amount x performance factor
— Earnings factor is derived from an allocation matrix determined in advance based on the parameters “profit attributable to shareholders of BMW AG” and “Group post-tax return on sales” in the vesting year
— The earnings factor is 1.0 e.g. in case of a profit attributable to shareholders of BMW AG amounting to € 7.0 billion and a Group post-tax return on sales of 6.0%
— The earnings factor is 1.5 e.g. in case of a profit attributable to shareholders of BMW AG amounting to € 8.6 billion and a Group post-tax return on sales of 7.7%
— The earnings factor is 0 in case of a profit attributable to shareholders of BMW AG below € 4.0 billion and/or a Group post-tax return on sales of below 3.2%
— Earnings factor may not exceed 1.8
— Maximum amount of earnings component p.a.:
— € 0.855 million (first period of office = first remuneration level)
— € 1.035 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.890 million (Chairman of the Board of Management)
343
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Other Information
Notes to the Group Financial Statements
COMPONENT
Parameters/measurement base, applicable amounts
Bonus (continued)
Performance component
(at 100% target achievement corresponds
to 50% of target amount)
— Assessment period one year
— Base amount p.a. (50% of target bonus amount):
— € 0.475 million (first period of office = first remuneration level)
— € 0.575 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.050 million (Chairman of the Board of Management)
— Formula: 50% of target amount x performance factor
— Non-financial criteria, expressed in terms of a performance factor, aimed at measuring the Board member’s contribution to sustainable and long-term performance and the
future orientation of the Company
— Relevant period is the vesting year
— Additional trend analysis over at least three financial years
— Composition of performance factor:
— 50% cross-divisional targets with ESG criteria
— 40% other cross-divisional targets
— 10% individual targets
— Criteria for cross-divisional targets with ESG criteria include in particular: Innovation performance (environmental, e.g. reduction of carbon emissions), development of the BMW Group’s reputation based on
ESG aspects (e.g. corporate culture, promotion of integrity and compliance), adaptability, attractiveness as an employer, leadership performance
— Criteria for the other cross-divisional targets include in particular: Market position compared to competitors, innovation performance (economic), development of the BMW Group’s reputation based on
non-ESG-related aspects (e.g. perception on capital markets, brand strength), customer orientation
— Measurement parameters and target values are determined before the start of the financial year
— Performance factor may not exceed 1.8
— Maximum amount of performance component p.a.:
— € 0.855 million (first period of office = first remuneration level)
— € 1.035 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.890 million (Chairman of the Board of Management)
Strategic relevance
— Earnings component of bonus rewards attainment of financial targets and is beneficial for earnings-related aspects of business strategy
— Performance component of bonus motivates the pursuit of non-financial strategic targets and is therefore beneficial for the long-term development of the BMW Group
Share-based remuneration
Personal cash investment amount
— Requirement for Board of Management members to invest an earmarked cash amount (personal cash investment amount), net of tax and deductions, in shares of BMW common stock immediately after
disbursement
— Payment as part of the next payroll run after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
— Requirement for Board of Management members to hold the acquired shares of common stock for at least four years; this requirement remains in effect for individuals who step down from the Board of
Management (share ownership guideline)
— Assessment period of five years in total (one year for determining the personal cash investment amount, four years holding requirement)
Calculation
— Target amount p.a. (at 100% target achievement):
— € 1.10 million (first period of office = first remuneration level)
— € 1.28 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.35 million (Chairman of the Board of Management)
— 50% of target amount depends on RoCE achieved in the Automotive segment (RoCE component)
— 50% of the target amount depends on the achievement of predefined strategic focus targets (strategic focus target component)
— Capped at 180% of target amount
— Payment after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
344
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Notes to the Group Financial Statements
COMPONENT
Parameters/measurement base, applicable amounts
Share-based remuneration (continued)
RoCE component
(at 100% target achievement corresponds
to 50% of target amount)
— Target amount of RoCE component p.a. (50% of target amount for personal cash investment amount):
— € 0.55 million (first period of office = first remuneration level)
— € 0.64 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.175 million (Chairman of the Board of Management)
— Formula: 50% of target amount x RoCE factor
— RoCE factor is derived from the RoCE achieved in the Automotive segment for the vesting year
— Minimum, target and maximum values for RoCE are defined before the start of the financial year
— RoCE factor may not exceed 1.8
— Maximum amount of RoCE component p.a.:
— € 0.990 million (first period of office = first remuneration level)
— € 1.152 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.115 million (Chairman of the Board of Management)
Strategic focus target component
(at 100% target achievement corresponds
to 50% of target amount)
— Target amount of strategic focus target component p.a. (50% of target amount for personal cash investment amount):
— € 0.55 million (first period of office = first remuneration level)
— € 0.64 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.175 million (Chairman of the Board of Management)
— At least two strategic focus targets derived from the strategic plan
— Weighting of the strategic focus targets is decided before the start of the financial year
— Formula in the event of two strategic focus targets with equal weighting p.a.:
25% of target amount for personal cash investment amount x factor for strategic focus target 1 + 25% of target amount for personal cash investment amount x factor for strategic focus target 2
— Minimum, target and maximum values are defined before the start of the financial year
— Factor for each strategic focus target may not exceed 1.8
— Maximum amount of strategic focus target component p.a.:
— € 0.990 million (first period of office = first remuneration level)
— € 1.152 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.115 million (Chairman of the Board of Management)
Strategic relevance
— 50% of the personal cash investment amount within the target structure depends on the RoCE and is therefore directly linked to a key target for the corporate strategy and reflects BMW AG’s aspiration to
generate a significant premium on the cost of capital
— The remaining 50% of the personal cash investment amount encourages achievement of strategic focus targets and therefore contributes to business performance in key strategic areas
— Commitment to purchase shares of the Company’s common stock and the four-year holding period provide additional motivation to support the Company’s long-term development
Malus and clawback rules
Malus
— Agreement to withhold variable remuneration in the event of specified serious compliance violations or (withholding amounts provisionally) in the event of reasonable suspicions of such
— Amounts may also be withheld in principle after a member has left the Board of Management
Clawback
— Agreement entitling the BMW Group to reclaim variable remuneration already paid out in the event of specified serious incidences of non-compliance, incorrect calculation bases or incorrect financial statements
— Amounts may also be clawed back in principle after a member has left the Board of Management
345
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Remuneration Report
Other Information
Notes to the Group Financial Statements
COMPONENT
Parameters/measurement base, applicable amounts
Maximum amounts p.a.
in € million p.a.
Bonus
Share-based remuneration (personal cash investment amount)
Maximum remuneration
Member of the Board of Management in the
first period of office
€ 1.710 million
€ 1.980 million
€ 4.925 million
Member of the Board of Management in the
second period of office or fourth year of
mandate
€ 2.070 million
€ 2.304 million
€ 5.500 million
Chairman of the Board of Management
€ 3.780 million
€ 4.230 million
€ 9.850 million
45 Events after the end of the reporting period
By March 12, 2025, the following tariff increases came into ef-
fect: tariff increases by the new US administration on imports
from China (+20% tariffs on all products imported from China),
on imports from Canada and Mexico of 25%, and on imported
steel and aluminum, as well as countermeasures from the Chi-
nese government (including +10% on imported vehicles with an
engine size greater than 2.5 litres).
These tariff increases are included in the outlook for the fiscal
year 2025 and will burden the results by a high three-digit million
amount.
No other events have occurred after the balance sheet date with
a particular significance for the results of operations, financial po-
sition or net assets of the BMW Group.
346
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Other Information
Notes to the Group Financial Statements
SEGMENT INFORMATION
46 Explanatory notes to segment information
Information on reportable segments
For the purposes of presenting segment information, the activi-
ties of the BMW Group are divided into operating segments in ac-
cordance with IFRS 8. The segmentation follows the internal
management and reporting system and takes account of the or-
ganisational structure of the BMW Group based on the various
products and services of the reportable segments.
The activities of the BMW Group are broken down into the oper-
ating segments Automotive, Motorcycles, Financial Services and
Other Entities.
Within the Automotive segment, the BMW Group develops, man-
ufactures, assembles and sells automobiles powered with all-
electric drive systems, plug-in hybrid systems and highly efficient
combustion engines, as well as spare parts, accessories and mo-
bility services under the BMW, MINI and Rolls-Royce brands.
BMW brand products are sold via the brand’s network of
branches as well as through independent authorised dealerships
and independent import companies. MINI brand products are
sold via the direct sales model operated by BMW AG and its sub-
sidiaries as well as through dealerships, branches and import
companies. Rolls-Royce brand products are sold via authorised
dealerships, import companies and subsidiary companies.
Activities relating to the development, manufacture, assembly
and sale of motorcycles as well as spare parts and accessories
are reported in the Motorcycles segment.
Automobile and motorcycle leasing, retail and dealership financ-
ing, multi-brand fleet business, customer deposit business and
insurance activities are the main activities allocated to the Finan-
cial Services segment.
Holding and Group financing companies are reported in the Other
Entities segment. This segment also includes the operating com-
pany BAVARIA-LLOYD Reisebüro GmbH, Munich, which is not
allocated to the other segments.
Internal management and reporting
Segment information is prepared as a general rule in conformity
with the accounting policies adopted for preparing and presenting
the Group Financial Statements. Exceptions to this general prin-
ciple include the treatment of inter-segment warranties, the earn-
ings impact of which is allocated to the respective segments on
the basis used internally to manage the business. In addition, in-
tragroup repurchase agreements between the Automotive and
Financial Services segments pursuant to IFRS 15, impairment al-
lowances on intragroup receivables and changes in the value of
consolidated other investments pursuant to IFRS 9 are also ex-
cluded. Intragroup leasing arrangements are not reflected in the
internal management and reporting system on an IFRS 16 basis
and therefore, in accordance with IFRS 8, do not give rise to any
changes in the presentation of segment information. Inter-seg-
ment receivables and payables, provisions, income, expenses
and profits are eliminated upon consolidation. Inter-segment rev-
enues are based on market prices. Centralised cost components
are included in the respective segments, without resulting in cash
flows.
The role of “chief operating decision maker” with respect to re-
source allocation and performance assessment of the reportable
segment is embodied in the full Board of Management. For this
purpose, different measures of segment performance as well as
segment assets are taken into account in the operating seg-
ments.
The Automotive and Motorcycles segments are managed on the
basis of return on capital employed (RoCE). The relevant meas-
ure of segment results used is therefore profit before financial re-
sult. Capital employed is the corresponding measure of segment
assets used to determine how to allocate resources. Capital em-
ployed is calculated as the sum of intangible assets, property,
plant and equipment and net working capital, the latter compris-
ing inventories as well as trade receivables less trade payables.
Further information is provided in the section “Managing opera-
tional performance at segment level” within the Combined Man-
agement Report.
The success of the Financial Services segment is measured on
the basis of return on equity (RoE). Profit before tax therefore rep-
resents the relevant measure of segment earnings. The measure
of segment assets in the Financial Services segment corresponds
to net assets, defined as total assets less total liabilities.
The success of the Other Entities segment is assessed on the ba-
sis of profit or loss before tax. The corresponding measure of seg-
ment assets used to manage the Other Entities segment is total
assets less asset-side income tax items and intragroup invest-
ments.
347
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Remuneration Report
Other Information
Notes to the Group Financial Statements
Segment information by operating segment is as follows:
Automotive
Motorcycles
Financial Services
Other Entities
Reconciliation
to Group figures
Group
in € million
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Revenues
124,917
132,277
3,220
3,214
38,562
36,227
14
11
– 24,333
– 16,231
142,380
155,498
thereof external revenues
103,524
118,266
3,259
3,255
35,595
33,976
2
1
–
–
142,380
155,498
thereof inter-segment revenues
21,393
14,011
– 39
– 41
2,967
2,251
12
10
– 24,333
– 16,231
–
–
Cost of sales
– 107,729
– 109,920
– 2,721
– 2,656
– 34,183
– 31,548
–
–
Selling and administrative expenses
– 9,357
– 9,195
– 296
– 303
– 1,675
– 1,559
– 41
– 34
Other operating income
1,335
967
4
6
59
63
23
13
Other operating expenses
– 1,273
– 1,148
– 9
– 2
– 252
– 128
– 21
– 3
Segment result Automotive and Motorcycles
7,893
12,981
198
259
–
–
–
–
Interest and similar income
10
5
4,593
3,403
Interest and similar expenses
– 20
– 11
– 3,214
– 2,372
Other financial result
37
– 87
– 517
– 1,118
Segment result Financial Services and Other Entities
2,538
2,962
837
– 100
Result from equity accounted investments
– 14
– 159
–
–
–
–
–
–
–
–
– 14
– 159
Capital expenditure on non-current assets
12,371
11,239
183
184
31,478
24,896
–
–
– 7,280
– 5,952
36,752
30,367
Depreciation and amortisation on non-current assets
8,504
8,826
118
116
10,705
9,759
–
–
– 4,699
– 4,136
14,628
14,565
Automotive
Motorcycles
Financial Services
Other Entities
Reconciliation
to Group figures
Group
in € million
31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023 31.12.2024 31.12.2023
Segment assets
70,804
66,168
1,298
1,190
16,954
16,573
108,181
95,145
70,495
71,814
267,732
250,890
Investments accounted for using the equity method
553
443
–
–
–
–
–
–
–
–
553
443
Write-downs on inventories to their net realisable value amount-
ing to € 522 million (2023: € 189 million) were recognised by
the Automotive segment in the financial year 2024. The reversal
of impairment losses had a positive impact of € 15 million
(2023: € 13 million) on the segment result of the Automotive
segment.
The result of the Financial Services segment was negatively im-
pacted by impairment losses totalling € 607 million (2023:
€ 616 million) recognised on leased products. Income from the
reversal of impairment losses on leased products amounted to
€ 311 million (2023: € 289 million).
Revenues with other segments result mainly from the sale of ve-
hicles, for which the Financial Services segment has concluded a
financing or lease contract.
348
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Combined Management Report
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Remuneration Report
Other Information
Notes to the Group Financial Statements
The information disclosed for capital expenditure and deprecia-
tion and amortisation relates to non-current property, plant and
equipment, intangible assets and leased products.
The total of the segment figures can be reconciled to the corre-
sponding Group figures as follows:
in € million
2024
2023
Reconciliation of segment result
Total for reportable segments
11,466
16,102
Financial result of Automotive segment
– 349
– 339
Financial result of Motorcycles segment
–
– 1
Elimination of inter-segment items
– 146
1,334
Group profit before tax
10,971
17,096
Reconciliation of capital expenditure
on non-current assets
Total for reportable segments
44,032
36,319
Elimination of inter-segment items
– 7,280
– 5,952
Total Group capital expenditure on
non-current assets
36,752
30,367
Reconciliation of depreciation and
amortisation on non-current assets
Total for reportable segments
19,327
18,701
Elimination of inter-segment items
– 4,699
– 4,136
Total Group depreciation and
amortisation on non-current assets
14,628
14,565
in € million
31.12.2024
31.12.2023
Reconciliation of segment assets
Total for reportable segments
197,237
179,076
Financial and other assets - Automotive
61,208
63,554
Trade payables - Automotive
12,556
13,906
Financial and other assets - Motorcycles
56
61
Trade payables - Motorcycles
561
566
Total liabilities – Financial Services
147,929
133,819
Non-operating assets – Other
Entities
23,442
22,982
Elimination of inter-segment items
– 175,257
– 163,074
Total Group assets
267,732
250,890
The reconciliation of segment figures to the corresponding total
Group figures shows the inter-segment items. Eliminations of in-
ter-segment items in the reconciliation to the Group profit before
tax, capital expenditure and depreciation and amortisation
mainly result from the sale of vehicles in the Automotive seg-
ment, which are subsequently accounted for as leased vehicles
in the Financial Services segment. In the reconciliation of seg-
ment assets to Group assets, eliminations relate mainly to in-
tragroup financing balances.
In the information by region, external sales are based on the lo-
cation of the customer. The information disclosed for non-current
assets relates to property, plant and equipment, intangible as-
sets and leased products. Eliminations disclosed for non-current
assets relate to leased products.
External revenues
Non-current assets
in € million
2024
2023
2024
2023
Europe
60,780
58,677
73,538
66,170
thereof Germany
19,845
18,829
47,051
44,012
Asia
46,558
56,522
16,819
17,216
thereof China
31,786
40,833
13,419
13,961
Americas
31,941
37,231
26,312
22,032
thereof USA
27,048
31,845
22,924
19,106
Other regions
3,101
3,068
381
285
Eliminations
–
–
– 8,411
– 7,297
Group
142,380
155,498
108,639
98,406
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Notes to the Group Financial Statements
LIST OF INVESTMENTS AT 31 DECEMBER 2024
47 List of investments at 31 December 2024
The list of investments of BMW AG pursuant to § 285 and
§ 313 HGB is presented below. Disclosures for equity and earn-
ings and for investments are not made if they are of "minor sig-
nificance" for the results of operations, financial position and net
assets of BMW AG pursuant to § 286 (3) sentence 1 no. 1 HGB
and § 313 (3) sentence 4 HGB. It is also shown in the list which
subsidiaries apply the exemptions available in § 264 (3) and
§ 264b HGB with regard to the publication of annual financial
statements and the drawing up of a management report and/or
notes to the financial statements (footnotes 5 and 6). The Group
Financial Statements of BMW AG serve as exempting consoli-
dated financial statements for these companies.
Affiliated companies (subsidiaries) of BMW AG at 31 December 2024
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
D O M E S T I C 1
BMW INTEC Beteiligungs GmbH, Munich3, 6
11,559
–
100
BMW Beteiligungs GmbH & Co. KG, Munich6
6,140
1
100
BMW Bank GmbH, Munich3
2,075
–
100
BMW Finanz Verwaltungs GmbH, Munich
282
32
100
BMW Vertriebszentren Verwaltungs GmbH, Munich
214
14
100
BMW Anlagen Verwaltungs GmbH, Munich3, 6
179
–
100
Parkhaus Oberwiesenfeld GmbH, Munich
141
12
100
Alphabet International GmbH, Munich4, 5, 6
140
–
100
BMW High Power Charging Beteiligungs GmbH, Munich4, 6
103
–
100
Alphabet Fuhrparkmanagement GmbH, Munich4
–
–
100
Bavaria Wirtschaftsagentur GmbH, Munich3, 5, 6
–
–
100
BMW Fahrzeugtechnik GmbH, Eisenach3, 5, 6
–
–
100
BMW Fleet GmbH, Munich4, 5, 6, 9
–
–
100
BMW Hams Hall Motoren GmbH, Munich4, 5, 6
–
–
100
BMW M GmbH Gesellschaft für individuelle Automobile, Munich3, 5, 6
–
–
100
BMW Vermögensverwaltungs GmbH, Munich
–
–
100
Bürohaus Petuelring GmbH, Munich
–
–
100
LARGUS Grundstücks-Verwaltungsgesellschaft mbH, Munich
–
–
100
Rolls-Royce Motor Cars GmbH, Munich4, 5, 6
–
–
100
BAVARIA-LLOYD Reisebüro GmbH, Munich
–
–
51
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Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
F O R E I G N 2 , 1 0
Europe
BMW Holding B.V., The Hague
33,515
5,667
100
BMW International Holding B.V., Rijswijk
13,665
2,207
100
BMW Österreich Holding GmbH, Steyr
4,499
350
100
BMW (Schweiz) AG, Dielsdorf
1,609
136
100
BMW España Finance S.L., Madrid
1,529
161
100
BMW (UK) Holdings Ltd., Farnborough
1,190
298
100
BMW Financial Services (GB) Ltd., Farnborough
1,130
23
100
BMW Motoren GmbH, Steyr
1,078
174
100
BMW i Ventures SCS SICAV-RAIF, Senningerberg
695
– 50
100
BMW (UK) Manufacturing Ltd., Farnborough
691
80
100
BMW Finance S.N.C., Guyancourt
643
60
100
BMW (UK) Ltd., Farnborough
466
197
100
ALPHABET (GB) Ltd., Farnborough
311
61
100
BMW France S.A., Montigny-le-Bretonneux
301
99
100
BMW Russland Trading OOO, Moscow
273
80
100
BMW Austria Leasing GmbH, Salzburg
266
–
100
Rolls-Royce Motor Cars Ltd., Farnborough
258
120
100
Alphabet France Fleet Management S.A.S., Saint-Quentin-en-Yvelines
251
54
100
BMW Austria Bank GmbH, Salzburg
205
16
100
BMW Financial Services Nederland B.V., Breda
196
43
100
BMW Finance N.V., The Hague
182
– 139
100
BMW International Investment B.V., The Hague
174
– 34
100
BMW Italia S.p.A., San Donato Milanese
174
84
100
BMW Finanzdienstleistungen (Schweiz) AG, Dielsdorf
170
13
100
BMW Vertriebs GmbH, Salzburg
135
45
100
Bavaria Reinsurance Malta Ltd., Floriana
130
18
100
BMW Manufacturing Hungary Kft., Debrecen
126
– 41
100
BMW Malta Ltd., Floriana
124
–
100
BMW Austria GmbH, Salzburg
107
37
100
351
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Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
BMW Iberica S.A., Madrid
105
40
100
Alphabet Belgium Long Term Rental N.V., Aartselaar
–
–
100
Alphabet España Fleet Management S.A.U., Madrid
–
–
100
Alphabet Fuhrparkmanagement (Schweiz) AG, Dielsdorf
–
–
100
Alphabet Italia S.p.A., Trento
–
–
100
Alphabet Luxembourg S.A., Leudelange
–
–
100
Alphabet Polska Fleet Management Sp. z o.o., Warsaw
–
–
100
BiV Carry I SCS, Senningerberg
–
–
100
BiV Carry II SCS, Senningerberg
–
–
100
BMW Automotive (Ireland) Ltd., Dublin
–
–
100
BMW Belgium Luxembourg S.A./N.V., Bornem
–
–
100
BMW Bulgaria EOOD, Sofia
–
–
100
BMW Central Medical Trustees Ltd., Farnborough
–
–
100
BMW China Capital B.V., The Hague
–
–
100
BMW Czech Republic s.r.o., Prague
–
–
100
BMW Danmark A/S, Copenhagen
–
–
100
BMW Distribution S.A.S., Vélizy-Villacoublay
–
–
100
BMW Financial Services (Ireland) DAC, Dublin
–
–
100
BMW Financial Services Belgium S.A./N.V., Bornem
–
–
100
BMW Financial Services Denmark A/S, Copenhagen
–
–
100
BMW Financial Services Polska Sp. z o.o., Warsaw
–
–
100
BMW Financial Services Scandinavia AB, Sollentuna
–
–
100
BMW Hellas Trade of Cars A.E., Athens
–
–
100
BMW Hungary Kft., Vecsés
–
–
100
BMW Italia Retail S.r.l., Rome
–
–
100
BMW Nederland B.V., The Hague
–
–
100
BMW Norge AS, Fornebu
–
–
100
BMW Northern Europe AB, Stockholm
–
–
100
BMW Portugal Lda., Porto Salvo
–
–
100
BMW Renting (Portugal) Lda., Porto Salvo
–
–
100
BMW Romania S.R.L., Bucharest
–
–
100
BMW Slovenia, distribucija motornih vozil, d.o.o., Ljubljana
–
–
100
352
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
BMW Slovenská republika s.r.o., Bratislava
–
–
100
OOO BMW Bank, Moscow
–
–
100
Oy BMW Suomi AB, Helsinki
–
–
100
Park Lane Ltd., Farnborough
–
–
100
Riley Motors Ltd., Farnborough
–
–
100
Swindon Pressings Ltd., Farnborough
–
–
100
Triumph Motor Company Ltd., Farnborough
–
–
100
Bavarian Sky Europe S.A., Compartment Swiss Auto Lease A, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment A, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment German Auto Leases 7, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment German Auto Leases 8, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment German Auto Loans 11, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment German Auto Loans 12, Luxemburg11
–
–
0
Bavarian Sky S.A., Compartment German Auto Loans 13, Luxemburg11
–
–
0
Bavarian Sky S.A., Luxemburg11
–
–
0
Bavarian Sky FTC, Compartment French Auto Leases 4, Paris11
–
–
0
Bavarian Sky UK 5 plc, London11
–
–
0
Bavarian Sky UK 6 plc, London11
–
–
0
Bavarian Sky UK A Ltd., London11
–
–
0
Bavarian Sky UK B Ltd., London11
–
–
0
Bavarian Sky UK C Ltd., London11
–
–
0
Bavarian Sky UK D Ltd., London11
–
–
0
The Americas
BMW Manufacturing Co., LLC, Wilmington, Delaware
2,666
474
100
BMW (US) Holding Corp., Wilmington, Delaware
2,642
1,855
100
BMW of North America, LLC, Wilmington, Delaware
1,860
914
100
BMW Bank of North America, Salt Lake City, Utah
1,666
258
100
BMW Financial Services NA, LLC, Wilmington, Delaware
1,054
735
100
BMW Canada Inc., Richmond Hill, Ontario
636
149
100
Financial Services Vehicle Trust, Wilmington, Delaware
607
– 282
100
BMW do Brasil Ltda., Araquari
526
51
100
BMW SLP, S.A. de C.V., Villa de Reyes
451
21
100
353
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
BMW US Capital, LLC, Wilmington, Delaware
234
– 79
100
BMW Acquisitions Ltda., São Paulo
–
–
100
BMW Auto Leasing LLC, Wilmington, Delaware
–
–
100
BMW Consolidation Services Co., LLC, Wilmington, Delaware
–
–
100
BMW de Argentina S.A., Buenos Aires
–
–
100
BMW de Mexico, S.A. de C.V., Mexico City
–
–
100
BMW Extended Service Corporation, Wilmington, Delaware
–
–
100
BMW Facility Partners, LLC, Wilmington, Delaware
–
–
100
BMW Financeira S.A. Credito, Financiamento e Investimento, São Paulo
–
–
100
BMW Financial Services de Mexico S.A. de C.V. SOFOM, Mexico City
–
–
100
BMW Floorplan Master Owner Trust, Wilmington, Delaware
–
–
100
BMW FS Funding Corporation, Wilmington, Delaware
–
–
100
BMW FS Receivables Corporation, Wilmington, Delaware
–
–
100
BMW FS Securities LLC, Wilmington, Delaware
–
–
100
BMW Insurance Agency, Inc., Wilmington, Delaware
–
–
100
BMW Leasing do Brasil, S.A., São Paulo
–
–
100
BMW Manufacturing Indústria de Motos da Amazônia Ltda., Manaus
–
–
100
BMW Manufacturing LP, Woodcliff Lake, New Jersey
–
–
100
BMW of Manhattan, Inc., Wilmington, Delaware
–
–
100
BMW Receivables 1 Inc., Richmond Hill, Ontario
–
–
100
BMW Receivables 2 Inc., Richmond Hill, Ontario
–
–
100
BMW Receivables Ltd. Partnership, Richmond Hill, Ontario
–
–
100
Rolls-Royce Motor Cars NA, LLC, Wilmington, Delaware
–
–
100
SB Acquisitions, LLC, Wilmington, Delaware
–
–
100
BMW 2023-A Lease Conduit, Wilmington, Delaware11
–
–
0
BMW 2024-A Lease Conduit, Wilmington, Delaware11
–
–
0
BMW Canada Auto Trust 2022-1, Richmond Hill, Ontario11
–
–
0
BMW Canada Auto Trust 2023-1, Richmond Hill, Ontario11
–
–
0
BMW Canada Auto Trust 2024-1, Richmond Hill, Ontario11
–
–
0
BMW Vehicle Lease Trust 2023-1, Wilmington, Delaware11
–
–
0
BMW Vehicle Lease Trust 2023-2, Wilmington, Delaware11
–
–
0
BMW Vehicle Lease Trust 2024-1, Wilmington, Delaware11
–
–
0
354
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
BMW Vehicle Lease Trust 2024-2, Wilmington, Delaware11
–
–
0
BMW Vehicle Owner Trust 2022-A, Wilmington, Delaware11
–
–
0
BMW Vehicle Owner Trust 2023-A, Wilmington, Delaware11
–
–
0
BMW Vehicle Owner Trust 2024-A, Wilmington, Delaware11
–
–
0
BMWCA 2023-A SMBC, Richmond Hill, Ontario11
–
–
0
Africa
BMW (South Africa) (Pty) Ltd., Pretoria
741
49
100
BMW Financial Services (South Africa) (Pty) Ltd., Midrand
198
19
100
SuperDrive Investments (RF) Ltd., Cape Town11
–
–
0
Asia
BMW Brilliance Automotive Ltd., Shenyang
6,040
2,458
75
BMW Automotive Finance (China) Co., Ltd., Beijing
2,269
51
100
BMW China Investment Ltd., Beijing
790
151
100
BMW Financial Services Korea Co., Ltd., Seoul
772
71
100
BMW Japan Finance Corp., Tokyo
398
62
100
BMW Japan Corp., Tokyo
355
129
100
Herald International Financial Leasing Co., Ltd., Tianjin
325
6
100
BMW Korea Co., Ltd., Seoul
245
89
100
BMW Leasing (Thailand) Co., Ltd., Bangkok
244
21
100
BMW India Financial Services Private Ltd., Gurgaon
116
10
100
BMW (Thailand) Co., Ltd., Bangkok
–
–
100
BMW Asia Pacific Capital Pte. Ltd., Singapore
–
–
100
BMW Asia Pte. Ltd., Singapore
–
–
100
BMW Asia Technology Centre Sdn Bhd, Kuala Lumpur
–
–
100
BMW China Automotive Trading Ltd., Beijing
–
–
100
BMW China Services Ltd., Beijing
–
–
100
BMW Credit (Malaysia) Sdn Bhd, Kuala Lumpur
–
–
100
BMW Holding Malaysia Sdn Bhd, Kuala Lumpur
–
–
100
BMW India Private Ltd., Gurgaon
–
–
100
BMW Lease (Malaysia) Sdn Bhd, Kuala Lumpur
–
–
100
BMW Manufacturing (Thailand) Co., Ltd., Rayong
–
–
100
BMW Tokyo Corp., Tokyo
–
–
100
355
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
PT BMW Indonesia, Jakarta
–
–
100
BMW Malaysia Sdn Bhd, Kuala Lumpur
–
–
51
2021-3 ABL, Tokyo11
–
–
0
2021-9 ABL, Tokyo11
–
–
0
2022-9 ABL, Tokyo11
–
–
0
2023-3 ABL, Tokyo11
–
–
0
2023-9 ABL, Tokyo11
–
–
0
2024-6 ABL, Tokyo11
–
–
0
Bavarian Sky China 2022-2, Beijing11
–
–
0
Bavarian Sky China 2023-1, Beijing11
–
–
0
Bavarian Sky China 2024-1, Beijing11
–
–
0
Bavarian Sky China Leasing 2023-1, Tianjin11
–
–
0
Bavarian Sky Korea 2022-A, Seoul11
–
–
0
Bavarian Sky Korea 2023-6, Seoul11
–
–
0
Bavarian Sky Korea 2023-7, Seoul11
–
–
0
Bavarian Sky Korea 2023-A, Seoul11
–
–
0
Bavarian Sky Korea 2024-8, Seoul11
–
–
0
Bavarian Sky Korea 2024-A, Seoul11
–
–
0
Oceania
BMW Australia Finance Ltd., Mulgrave
178
13
100
BMW Australia Ltd., Melbourne
165
28
100
BMW Financial Services New Zealand Ltd., Auckland
–
–
100
BMW Melbourne Pty. Ltd., Melbourne
–
–
100
BMW New Zealand Ltd., Auckland
–
–
100
BMW Sydney Pty. Ltd., Sydney
–
–
100
Bavarian Sky Australia Trust A, Mulgrave11
–
–
0
BMW Australia Trust 2011-2, Mulgrave11
–
–
0
356
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
BMW AG’s non-consolidated companies at 31 December 2024
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
D O M E S T I C 7
Automag GmbH, Munich
–
–
100
BMW Car IT GmbH, Munich4
–
–
100
BMW i Ventures GmbH, Munich
–
–
100
F O R E I G N 7
Europe
Alphabet Insurance Services Polska Sp. z o.o., Warsaw
–
–
100
BMW (GB) Ltd., Farnborough
–
–
100
BMW (UK) Pensions Services Ltd., Hams Hall
–
–
100
BMW Car Club Ltd., Farnborough
–
–
100
BMW Drivers Club Ltd., Farnborough
–
–
100
BMW Financial Services Czech Republic s.r.o., Prague
–
–
100
BMW Financial Services Slovakia s.r.o., Bratislava
–
–
100
BMW Group Benefit Trust Ltd., Farnborough
–
–
100
BMW Hellas Leasing Single Member Private Company, Kifissia
–
–
100
BMW Mobility Development Center s.r.o., Prague
–
–
100
BMW Motorsport Ltd., Farnborough
–
–
100
BMW Poland sp. z o.o., Warsaw
–
–
100
BMW Russland Automotive OOO, Kaliningrad
–
–
100
John Cooper Garages Ltd., Farnborough
–
–
100
John Cooper Works Ltd., Farnborough
–
–
100
OOO BMW Leasing, Moscow
–
–
100
BMW TechWorks Romania S.R.L., Cluj-Napoca
–
–
50
The Americas
217-07 Northern Boulevard Corporation, Wilmington, Delaware
–
–
100
BMW Experience Centre Inc., Richmond Hill, Ontario
–
–
100
BMW i Ventures, Inc., Wilmington, Delaware
–
–
100
BMW i Ventures, LLC, Wilmington, Delaware
–
–
100
BMW Mobility Services, LLC, Wilmington, Delaware
–
–
100
BMW Operations Corp., Wilmington, Delaware
–
–
100
357
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
BMW Shared Services, LLC, Wilmington, Delaware
–
–
100
BMW Technology Corporation, Wilmington, Delaware
–
–
100
Designworks/USA, Inc., Newbury Park, California
–
–
100
MINI Business Innovation, LLC, Wilmington, Delaware
–
–
100
Africa
BMW Automobile Distributors (Pty) Ltd., Midrand
–
–
100
BPF Midrand Property Holdings (Pty) Ltd., Midrand
–
–
100
Asia
BMW (China) Insurance Brokers Co., Ltd., Beijing
–
–
100
BMW Finance (United Arab Emirates) FZE, Dubai
–
–
100
BMW Financial Services Singapore Pte Ltd., Singapore
–
–
100
BMW Hong Kong Services Ltd., Hong Kong
–
–
100
BMW India Foundation, Gurgaon
–
–
100
BMW India Leasing Private Limited, Gurgaon
–
–
100
BMW Insurance Broker (Thailand) Co., Ltd., Bangkok
–
–
100
BMW Insurance Services Korea Co. Ltd., Seoul
–
–
100
BMW Middle East Retail Competency Centre DWC-LLC, Dubai
–
–
100
BMW Parts Manufacturing (Thailand) Co., Ltd., Rayong Province
–
–
100
BMW Technology Office Israel Ltd., Tel Aviv
–
–
100
Herald Hezhong (Beijing) Automotive Trading Co., Ltd., Beijing
–
–
100
Ling Yue Digital Information Technology Co., Ltd., Beijing
–
–
100
BMW Philippines Corp., Manila
–
–
70
BMW Financial Services Hong Kong Ltd., Hong Kong
–
–
51
BMW ArcherMind Information Technology Co., Ltd., Nanjing
–
–
50
BMW TechWorks India Private Ltd., Pune
–
–
50
358
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
BMW AG’s associated companies, joint ventures and joint operations at 31 December 2024
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
Joint ventures - equity accounted
D O M E S T I C
YOUR NOW Holding GmbH, Munich8
66
– 30
50
F O R E I G N
Beijing Ionchi New Energy Technology Ltd., Beijing8
166
– 18
50
Associated companies - equity accounted
–
–
-
D O M E S T I C
IONITY Holding GmbH & Co. KG, Munich8
725
– 62
15
F O R E I G N
THERE Holding B.V., Rijswijk8
959
– 11
31
IONNA LLC, Torrance
–
–
14
Solid Power, Inc., Wilmington, Delaware
–
–
6
Joint operations - proportionately consolidated entities
F O R E I G N
Spotlight Automotive Ltd., Zhangjiagang8
128
33
50
Not equity accounted or proportionately consolidated entities
D O M E S T I C 7
Encory GmbH, Unterschleissheim
–
–
50
The Retail Performance Company GmbH, Munich
–
–
50
IDEALworks GmbH, Munich
–
–
49
PDB - Partnership for Dummy Technology and Biomechanics GbR, Gaimersheim
–
–
20
F O R E I G N 7
BMW AVTOTOR Holding B.V., Amsterdam
–
–
50
Critical TechWorks S.A., Porto
–
–
50
BMW Albatha Finance PSC, Dubai
–
–
40
BMW Albatha Leasing, LLC, Dubai
–
–
40
ChargeScape, LLC, Wilmington, Delaware
–
–
33
Bavarian & Co Co., Ltd., Incheon
–
–
20
359
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
BMW AG’s participations at 31 December 2024
Companies
Equity in € million
Profit/loss in € million
Capital investment in %
D O M E S T I C 7
IVM Industrie-Verband Motorrad GmbH & Co. Dienstleistungs KG, Essen
–
–
28
SGL Carbon SE, Wiesbaden
–
–
18
Hubject GmbH, Berlin
–
–
16
Joblinge gemeinnützige AG Leipzig, Leipzig
–
–
16
Joblinge gemeinnützige AG Berlin, Berlin
–
–
10
Racer Benchmark Group GmbH, Landsberg am Lech
–
–
8
Joblinge gemeinnützige AG München, Munich
–
–
6
Deutsches Forschungszentrum für Künstliche Intelligenz GmbH, Kaiserslautern
–
–
5
GSB Sonderabfall-Entsorgung Bayern GmbH, Baar-Ebenhausen
–
–
3
F O R E I G N 7
Northvolt AB, Stockholm
–
–
3
1 The amounts shown for domestic affiliated companies correspond to the annual financial statements drawn up in accordance with German accounting rules (HGB).
2 The amounts shown for foreign affiliated companies correspond to the annual financial statements drawn up in accordance with uniform IFRS rules. Equity and earnings not denominated in euro are
translated into euro using the closing exchange rate at the balance sheet date.
3 Profit and Loss Transfer Agreement with BMW AG.
4 Profit and Loss Transfer Agreement with a subsidiary of BMW AG.
5 Exemption from drawing up a management report applied in accordance with § 264 (3) and § 264b HGB.
6 Exemption from publishing financial statements applied in accordance with § 264 (3) and § 264b HGB.
7 These entities are neither consolidated nor accounted for using the equity method due to their overall immateriality for the Group Financial Statements.
8 The amounts shown for entities accounted for using the equity method and for proportionally consolidated entities correspond to the annual financial statements drawn up in accordance with uniform IFRS
rules. Equity not denominated in euro is translated into euro using the closing exchange rate at the balance sheet date, earnings are translated using the average rate.
9 First-time consolidation.
10 Deconsolidation in financial year 2024: BMW (UK) Capital plc., Farnborough.
11 Control on basis of economic dependence.
360
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Notes to the Group Financial Statements
Munich, 11 March 2025
Bayerische Motoren Werke
Aktiengesellschaft
The Board of Management
Oliver Zipse
Jochen Goller
Ilka Horstmeier
Walter Mertl
Dr-Ing Milan Nedeljković
Dr-Ing Joachim Post
Frank Weber
RESPONSIBILITY STATEMENT
AND AUDITOR’S REPORT
04
361
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
362
Responsibility Statement by the Company’s Legal Representatives
363
Independent Auditor’s Report
370
Assurance Report of the Independent German Public Auditor
362
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Responsibility Statement by the Company’s Legal Representatives
Statement pursuant to § 117 No.1 of the German Securities
Trading Act (WpHG) in conjunction with § 297 (2) sentence 4
and § 315 (1) sentence 5 of the German Commercial Code
(HGB)
“To the best of our knowledge, and in accordance with the appli-
cable reporting principles, the Group Financial Statements give a
true and fair view of the assets, liabilities, financial position and
results of operations of the Group, and the Group Management
Report includes a fair review of the development and perfor-
mance of the business and position of the Group, together with a
description of the principal opportunities and risks associated
with the expected development of the Group.”
Munich, 11 March 2025
Bayerische Motoren Werke
Aktiengesellschaft
The Board of Management
Oliver Zipse
Jochen Goller
Ilka Horstmeier
Walter Mertl
Dr-Ing Milan Nedeljković
Dr-Ing Joachim Post
Frank Weber
RESPONSIBILITY STATEMENT BY THE COMPANY’S
LEGAL REPRESENTATIVES
363
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
To Bayerische Motoren Werke Aktiengesellschaft, Munich
Report on the audit of the consolidated financial
statements and of the group management report
Audit Opinions
We have audited the consolidated financial statements of Bay-
erische Motoren Werke Aktiengesellschaft, Munich, and its sub-
sidiaries (the Group), which comprise the balance sheet for
group as at 31 December 2024, and the income statement for
group, the statement of comprehensive income for group, state-
ment of changes in equity for group and cash flow statement for
group for the financial year from 1 January to 31 December
2024, and notes to the consolidated financial statements, in-
cluding material accounting policy information. In addition, we
have audited the group management report of Bayerische Mo-
toren Werke Aktiengesellschaft, which is combined with the
Company’s management report, for the financial year from 1
January to 31 December 2024. In accordance with the German
legal requirements, we have not audited the content of those
parts of the group management report listed in the "Other Infor-
mation" section of our auditor’s report.
In our opinion, on the basis of the knowledge obtained in the
audit,
—
the accompanying consolidated financial statements com-
ply, in all material respects, with the IFRS Accounting
Standards issued by the International Accounting Stand-
ards Board (IASB) (the IFRS Accounting Standards) as
adopted by the EU and the additional requirements of Ger-
man commercial law pursuant to § [Article] 315e Abs. [par-
agraph] 1 HGB [Handelsgesetzbuch German Commercial
Code] and, in compliance with these requirements, give a
true and fair view of the assets, liabilities, and financial po-
sition of the Group as at 31 December 2024, and of its fi-
nancial performance for the financial year from 1 January to
31 December 2024, and
—
the accompanying group management report as a whole
provides an appropriate view of the Group’s position. In all
material respects, this group management report is con-
sistent with the consolidated financial statements, complies
with German legal requirements and appropriately pre-
sents the opportunities and risks of future development.
Our audit opinion on the group management report does
not cover the content of those parts of the group manage-
ment report listed in the “Other Information” section of our
auditor’s report.
Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare
that our audit has not led to any reservations relating to the legal
compliance of the consolidated financial statements and of the
group management report.
Basis for the Audit Opinions
We conducted our audit of the consolidated financial statements
and of the group management report in accordance with
§ 317 HGB and the EU Audit Regulation (No. 537/2014, re-
ferred to subsequently as “EU Audit Regulation”) in compliance
with German Generally Accepted Standards for Financial State-
ment Audits promulgated by the Institut der Wirtschaftsprüfer
[Institute of Public Auditors in Germany] (IDW). Our responsibil-
ities under those requirements and principles are further de-
scribed in the “Auditor’s Responsibilities for the Audit of the Con-
solidated Financial Statements and of the Group Management
Report” section of our auditor’s report. We are independent of
the group entities in accordance with the requirements of Euro-
pean law and German commercial and professional law, and we
have fulfilled our other German professional responsibilities in
accordance with these requirements. In addition, in accordance
with Article 10 (2) point (f) of the EU Audit Regulation, we de-
clare that we have not provided non-audit services prohibited
under Article 5 (1) of the EU Audit Regulation. We believe that
the audit evidence we have obtained is sufficient and appropri-
ate to provide a basis for our audit opinions on the consolidated
financial statements and on the group management report.
INDEPENDENT AUDITOR’S REPORT
364
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
Key Audit Matters in the Audit of the Consolidated
Financial Statements
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the consoli-
dated financial statements for the financial year from 1 January
to 31 December 2024. These matters were addressed in the
context of our audit of the consolidated financial statements as
a whole, and in forming our audit opinion thereon; we do not
provide a separate audit opinion on these matters.
In our view, the matters of most significance in our audit were as
follows:
1/ Measurement of leased products
2/ Valuation of receivables from sales financing
3/ Valuation of provisions for statutory and non-statutory
warranty obligations as well as product guarantees
Our presentation of these key audit matters has been structured
in each case as follows:
1/ Matter and issue
2/ Audit approach and findings
3/ Reference to further information
Hereinafter we present the key audit matters:
1/ Measurement of leased products
1/ The BMW Group leases vehicles to end customers under op-
erating leases (leased products). At the balance sheet date, the
amount reported under the "leased products" line item for oper-
ating leases was EUR 48,383 million. Leased products are
measured at cost, which is depreciated on a straight-line basis
over the lease term to the expected residual value. A key esti-
mated value for subsequent measurement of leased products is
the expected residual. For the determination of the residual
value the BMW Group uses internally available data on historical
empirical values, current market data and market estimates as
well as data from external market research institutes. The resid-
ual value estimates also contain regulatory changes in the indi-
vidual markets and changes in the customer behavior, among
others including climate policy considerations. The estimation of
future residual values is subject to judgment due to the large
number of assumptions to be made by the executive directors
and the amount of data included in the determination.
Against this background and due to the resulting significant un-
certainties with regard to estimates in the context of measuring
the residual values of the leased products, this matter was of
particular significance in the context of our audit.
2/ As part of our audit we obtained an understanding of the de-
velopment of operating leases, the underlying residual value
risks as well as the business processes for the identification,
management, monitoring and measurement of residual value
risks, among other things by inquiries and inspection of docu-
ments related to the internal calculation methods. Furthermore,
we evaluated the appropriateness and effectiveness of the in-
ternal controls, particularly regarding the determination of ex-
pected residual values. This included the evaluation of the pro-
priety of the relevant IT systems as well as the implemented in-
terfaces therein by our IT specialists. In addition, we evaluated
the appropriateness of the methods, the model assumptions as
well as the parameters used for the measurement of the resid-
ual values based on the validations carried out by the BMW
Group. For this purpose, we inquired with the BMW Group's ex-
perts responsible for the management and monitoring of resid-
ual value risks and inspected the internal analysis on residual
value developments as well as the validation results. We exam-
ined the mathematical correctness of the residual values using
the key calculation steps.
Based on our audit procedures, we were able to satisfy our-
selves that the methods and processes for determining the ex-
pected residual values of leased products underlying the valua-
tion are appropriate and the assumptions and parameters in-
cluded in the residual values are appropriate as a whole.
3/ The Company's disclosures on the applied "Accounting poli-
cies, assumptions, judgments and estimations" are contained in
the notes to the consolidated financial statements under note 6
and on leased products are contained under note 23.
2/ Valuation of receivables from sales financing
1/ The BMW Group offers end customers, dealerships and im-
porters various financing models for vehicles. In this context,
current and non-current receivables from sales financing total-
ing EUR 93,718 million are reported in the consolidated state-
ment of financial position as at the balance sheet date. Impair-
ment losses amounting to EUR 2,325 million were recognized
on these receivables as at the balance sheet date. In order to
determine the amount of the necessary valuation allowances to
be recognized with respect to receivables from sales financing,
the BMW Group, among others, evaluates the creditworthiness
of the dealers, importers and end customers, as well as any loss
ratios, and risk provisioning parameters are derived based on
historical default probabilities and loss ratios.
The determination of the valuation allowances by the executive
directors is subject to a significant degree of judgment due to
several value-influencing factors such as the estimation of cre-
ditworthiness, the determination of probabilities of default and
loss ratios and was therefore of particular significance in the
context of our audit.
2/ As part of our audit we obtained a comprehensive under-
standing of the development of receivables from sales financing,
the associated default-related risks as well as the business pro-
cesses for the identification, management, monitoring and
measurement of default risks, among other things by inquiries
and inspection of documents on the internal calculation meth-
ods. Furthermore, we evaluated the appropriateness and effec-
tiveness of the internal controls regarding the determination of
365
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
the impairment loss to be recognized. In this context, we also
evaluated the relevant IT systems and internal processes. The
evaluation included an assessment by our IT-specialists of the
appropriateness of the systems concerned and associated in-
terfaces to ensure the completeness of data as well as the audit
of automated controls for data processing. As part of our audit
we assessed in particular the appropriateness of the risk classi-
fication procedures as well as the risk provisioning parameters
used. For this purpose, we analyzed in particular the validations
of parameters that are regularly conducted by the Company. To
assess the default risk, we also used targeted sampling of indi-
vidual cases to examine whether the attributes for assignment
to the respective risk categories were suitably available and the
impairment losses had been calculated using the parameters
defined for these risk categories.
In our view, the assumptions and parameters used in the meas-
urement of receivables from sales financing were appropriate
overall.
3/ The Company's disclosures on the applied "Accounting poli-
cies, assumptions, judgments and estimations" are contained in
the notes to the consolidated financial statements under note 6
and on "receivables from sales financing" are contained under
note 25.
3/ Valuation of provisions for statutory and non-statutory
warranty obligations as well as product guarantees
1/ Provisions for statutory and non-statutory warranty obliga-
tions as well as product guarantees are included in the consoli-
dated financial statements of BMW Group as a material amount
in other provisions. The obligations amounted to EUR 9,272
million as at 31 December 2024. The BMW Group is responsi-
ble for the legally required warranty and product guarantees in
the respective sales market. In order to estimate the liabilities
arising from statutory and non-statutory warranty obligations as
well as product guarantees for vehicles sold, information on the
type and volume of damages arising and on remedial measures
is recorded and analyzed at vehicle model level. The expected
amount of obligations is extrapolated from costs of the past and
recognized as a provision in the corresponding amount, if the
criteria of IAS 37 have been met. For specific or anticipated in-
dividual circumstances, for example recalls for vehicles sold, ad-
ditional provisions are recognized provided they have not al-
ready been taken into account.
The determination of provisions is associated with unavoidable
estimation uncertainties and is subject to a high risk of change,
depending on factors such as notification of detected defects as
well as claims made by vehicle owners. Against this background,
this matter was of particular significance during our audit.
2/ In order to assess the appropriateness of the valuation
method used for the determination of the provisions for statu-
tory and non-statutory warranty obligations as well as product
guarantees including the assumptions and parameters, we pri-
marily obtained an understanding of the process for determining
the assumptions and parameters through discussions with the
responsible employees of the BMW Group. We also evaluated
the appropriateness as well as effectiveness of controls for de-
termining the assumptions and parameters. With the involve-
ment of our IT specialists, we checked the IT systems used re-
garding their compliance. We compared the expenses for claims
and technical actions with actual costs incurred in order to draw
conclusions on the forecast accuracy. Based on a targeted sam-
ple of vehicle models, the mathematical correctness of the valu-
ation model used across the Group was examined. We exam-
ined and evaluated the assumptions used by the BMW Group
concerning the extent to which the past values were representa-
tive of the expected susceptibility of damage, the expected value
of damage per vehicle (comprising parts and labor input) as well
as the expected assertion of claims from statutory and non-stat-
utory warranties.
In our view, the method for the valuation of provisions for statu-
tory and non-statutory warranty obligations as well as product
guarantees is overall appropriate. Taking into consideration the
information available, we believe that, overall, the measurement
parameters and assumptions used by the executive directors
are appropriate.
3/ The Company's disclosures on the applied "Accounting poli-
cies, assumptions, judgments and estimations" are contained in
the notes to the consolidated financial statements under note 6
and on "Other provisions" are contained under note 34.
Other Information
The executive directors are responsible for the other infor-
mation. The other information comprises the following non-au-
dited parts of the group management report:
—
the non-financial statement to comply with §§ 289b to
289e HGB and with §§ 315b to 315c HGB included in
section “SUSTAINABILITY STATEMENT” of the group
management report
—
the section „APPROPRIATENESS AND EFFECTIVENESS
OF THE INTERNAL CONTROL SYSTEM AND THE RISK
MANAGEMENT SYSTEM“ of the group management re-
port
The other information comprises further
—
the statement on corporate governance pursuant to
§ 289f HGB and § 315d HGB
—
the remuneration report pursuant to § 162 AktG [Aktieng-
esetz: German Stock Corporation Act], for which the super-
visory board is also responsible
—
all remaining parts of the annual report – excluding cross-
references to external information – with the exception of
the audited consolidated financial statements, the audited
group management report and our auditor’s report
Our audit opinions on the consolidated financial statements and
on the group management report do not cover the other
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
information, and consequently we do not express an audit opin-
ion or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the
other information mentioned above and, in so doing, to consider
whether the other information
—
is materially inconsistent with the consolidated financial
statements, with the group management report disclosures
audited in terms of content or with our knowledge obtained
in the audit, or
—
otherwise appears to be materially misstated.
Responsibilities of the Executive Directors and the
Supervisory Board for the Consolidated Financial
Statements and the Group Management Report
The executive directors are responsible for the preparation of
the consolidated financial statements that comply, in all material
respects, with IFRS Accounting Standards as adopted by the EU
and the additional requirements of German commercial law pur-
suant to § 315e Abs. 1 HGB and that the consolidated financial
statements, in compliance with these requirements, give a true
and fair view of the assets, liabilities, financial position, and fi-
nancial performance of the Group. In addition, the executive di-
rectors are responsible for such internal control as they have de-
termined necessary to enable the preparation of consolidated
financial statements that are free from material misstatement,
whether due to fraud (i.e., fraudulent financial reporting and mis-
appropriation of assets) or error.
In preparing the consolidated financial statements, the execu-
tive directors are responsible for assessing the Group’s ability to
continue as a going concern. They also have the responsibility
for disclosing, as applicable, matters related to going concern. In
addition, they are responsible for financial reporting based on
the going concern basis of accounting unless there is an inten-
tion to liquidate the Group or to cease operations, or there is no
realistic alternative but to do so.
Furthermore, the executive directors are responsible for the
preparation of the group management report that, as a whole,
provides an appropriate view of the Group’s position and is, in
all material respects, consistent with the consolidated financial
statements, complies with German legal requirements, and ap-
propriately presents the opportunities and risks of future devel-
opment. In addition, the executive directors are responsible for
such arrangements and measures (systems) as they have con-
sidered necessary to enable the preparation of a group man-
agement report that is in accordance with the applicable Ger-
man legal requirements, and to be able to provide sufficient ap-
propriate evidence for the assertions in the group management
report.
The supervisory board is responsible for overseeing the Group’s
financial reporting process for the preparation of the consoli-
dated financial statements and of the group management re-
port.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements and of the Group Management Report
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error,
and whether the group management report as a whole provides
an appropriate view of the Group’s position and, in all material
respects, is consistent with the consolidated financial state-
ments and the knowledge obtained in the audit, complies with
the German legal requirements and appropriately presents the
opportunities and risks of future development, as well as to issue
an auditor’s report that includes our audit opinions on the con-
solidated financial statements and on the group management
report.
Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with § 317
HGB and the EU Audit Regulation and in compliance with Ger-
man Generally Accepted Standards for Financial Statement Au-
dits promulgated by the Institut der Wirtschaftsprüfer (IDW) will
always detect a material misstatement. Misstatements can
arise from fraud or error and are considered material if, individ-
ually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of
these consolidated financial statements and this group man-
agement report.
We exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
—
Identify and assess the risks of material misstatement of
the consolidated financial statements and of the group
management report, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our audit opinions. The risk of not de-
tecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may in-
volve collusion, forgery, intentional omissions, misrepre-
sentations, or the override of internal controls.
—
Obtain an understanding of internal control relevant to the
audit of the consolidated financial statements and of ar-
rangements and measures (systems) relevant to the audit
of the group management report in order to design audit
procedures that are appropriate in the circumstances, but
not for the purpose of expressing an audit opinion on the
effectiveness of the internal control and these arrange-
ments and measures (systems), respectively.
—
Evaluate the appropriateness of accounting policies used
by the executive directors and the reasonableness of esti-
mates made by the executive directors and related disclo-
sures.
—
Conclude on the appropriateness of the executive directors’
use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast signifi-
cant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists,
we are required to draw attention in the auditor’s report to
the related disclosures in the consolidated financial state-
ments and in the group management report or, if such dis-
closures are inadequate, to modify our respective audit
opinions. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However,
367
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
future events or conditions may cause the Group to cease
to be able to continue as a going concern.
—
Evaluate the overall presentation, structure and content of
the consolidated financial statements, including the disclo-
sures, and whether the consolidated financial statements
present the underlying transactions and events in a manner
that the consolidated financial statements give a true and
fair view of the assets, liabilities, financial position and fi-
nancial performance of the Group in compliance with IFRS
Accounting Standards as adopted by the EU and the addi-
tional requirements of German commercial law pursuant to
§ 315e Abs. 1 HGB.
—
Plan and perform the group audit to obtain sufficient appro-
priate audit evidence regarding the financial information of
the entities or business units within the Group as a basis for
forming audit opinions on the consolidated financial state-
ments and on the group management report. We are re-
sponsible for the direction, supervision and review of the
audit work performed for purposes of the group audit. We
remain solely responsible for our audit opinions.
—
Evaluate the consistency of the group management report
with the consolidated financial statements, its conformity
with German law, and the view of the Group’s position it
provides.
—
Perform audit procedures on the prospective information
presented by the executive directors in the group manage-
ment report. On the basis of sufficient appropriate audit ev-
idence we evaluate, in particular, the significant assump-
tions used by the executive directors as a basis for the pro-
spective information, and evaluate the proper derivation of
the prospective information from these assumptions. We
do not express a separate audit opinion on the prospective
information and on the assumptions used as a basis. There
is a substantial unavoidable risk that future events will differ
materially from the prospective information.
We communicate with those charged with governance regard-
ing, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant de-
ficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a state-
ment that we have complied with the relevant independence re-
quirements, and communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, actions taken to eliminate
threats or safeguards applied.
From the matters communicated with those charged with gov-
ernance, we determine those matters that were of most signifi-
cance in the audit of the consolidated financial statements of the
current period and are therefore the key audit matters. We de-
scribe these matters in our auditor’s report unless law or regu-
lation precludes public disclosure about the matter.
368
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
OTHER LEGAL AND
REGULATORY
REQUIREMENTS
Report on the Assurance on the Electronic Rendering of the
Consolidated Financial Statements and the Group
Management Report Prepared for Publication Purposes in
Accordance with § 317 Abs. 3a HGB
Assurance Opinion
We have performed assurance work in accordance with
§ 317 Abs. 3a HGB to obtain reasonable assurance as to
whether the rendering of the consolidated financial statements
and the group management report (hereinafter the “ESEF doc-
uments”)
contained
in
the
electronic
file
BMW_AG_KA+KLB_ESEF-2024-12-31.zip and prepared for
publication purposes complies in all material respects with the
requirements of § 328 Abs. 1 HGB for the electronic reporting
format (“ESEF format”). In accordance with German legal re-
quirements, this assurance work extends only to the conversion
of the information contained in the consolidated financial state-
ments and the group management report into the ESEF format
and therefore relates neither to the information contained within
these renderings nor to any other information contained in the
electronic file identified above.
In our opinion, the rendering of the consolidated financial state-
ments and the group management report contained in the elec-
tronic file identified above and prepared for publication purposes
complies in all material respects with the requirements of § 328
Abs. 1 HGB for the electronic reporting format. Beyond this as-
surance opinion and our audit opinion on the accompanying
consolidated financial statements and the accompanying group
management report for the financial year from 1 January to 31
December 2024 contained in the “Report on the Audit of the
Consolidated Financial Statements and on the Group Manage-
ment Report” above, we do not express any assurance opinion
on the information contained within these renderings or on the
other information contained in the electronic file identified
above.
Basis for the Assurance Opinion
We conducted our assurance work on the rendering of the con-
solidated financial statements and the group management re-
port contained in the electronic file identified above in accord-
ance with § 317 Abs. 3a HGB and the IDW Assurance Standard:
Assurance Work on the Electronic Rendering of Financial State-
ments and Management Reports, Prepared for Publication Pur-
poses in Accordance with § 317 Abs. 3a HGB (IDW AsS 410
(06.2022)) and the International Standard on Assurance En-
gagements 3000 (Revised). Our responsibility in accordance
therewith is further described in the “Group Auditor’s Responsi-
bilities for the Assurance Work on the ESEF Documents” sec-
tion. Our audit firm applies the IDW Standard on Quality Man-
agement: Requirements for Quality Management in the Audit
Firm (IDW QMS 1 (09.2022)).
Responsibilities of the Executive Directors and the
Supervisory Board for the ESEF Documents
The executive directors of the Company are responsible for the
preparation of the ESEF documents including the electronic ren-
dering of the consolidated financial statements and the group
management report in accordance with § 328 Abs. 1 Satz 4 Nr.
[number] 1 HGB and for the tagging of the consolidated finan-
cial statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2
HGB.
In addition, the executive directors of the Company are respon-
sible for such internal control as they have considered necessary
to enable the preparation of ESEF documents that are free from
material
non-compliance
with
the
requirements
of
§ 328 Abs. 1 HGB for the electronic reporting format, whether
due to fraud or error.
The supervisory board is responsible for overseeing the process
for preparing the ESEF documents as part of the financial re-
porting process.
Group Auditor’s Responsibilities for the Assurance Work on
the ESEF Documents
Our objective is to obtain reasonable assurance about whether
the ESEF documents are free from material non-compliance
with the requirements of § 328 Abs. 1 HGB, whether due to
fraud or error. We exercise professional judgment and maintain
professional skepticism throughout the assurance work. We
also:
—
Identify and assess the risks of material non-compliance
with the requirements of § 328 Abs. 1 HGB, whether due
to fraud or error, design and perform assurance procedures
responsive to those risks, and obtain assurance evidence
that is sufficient and appropriate to provide a basis for our
assurance opinion.
—
Obtain an understanding of internal control relevant to the
assurance work on the ESEF documents in order to design
assurance procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an assurance
opinion on the effectiveness of these controls.
—
Evaluate the technical validity of the ESEF documents, i.e.,
whether the electronic file containing the ESEF documents
meets the requirements of the Delegated Regulation (EU)
2019/815 in the version in force at the date of the consol-
idated financial statements on the technical specification
for this electronic file.
—
Evaluate whether the ESEF documents provide an XHTML
rendering with content equivalent to the audited consoli-
dated financial statements and to the audited group man-
agement report.
—
Evaluate whether the tagging of the ESEF documents with
Inline XBRL technology (iXBRL) in accordance with the re-
quirements of Articles 4 and 6 of the Delegated Regulation
(EU) 2019/815, in the version in force at the date of the
consolidated financial statements, enables an appropriate
and complete machine-readable XBRL copy of the XHTML
rendering.
369
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Independent Auditor’s Report
Further Information pursuant to Article 10 of the EU Audit
Regulation
We were elected as group auditor by the annual general meeting
on 15 May 2024. We were engaged by the supervisory board
on 27 June 2024. We have been the group auditor of the Bay-
erische Motoren Werke Aktiengesellschaft, Munich, without in-
terruption since the financial year 2019.
We declare that the audit opinions expressed in this auditor’s
report are consistent with the additional report to the audit com-
mittee pursuant to Article 11 of the EU Audit Regulation (long-
form audit report).
REFERENCE TO AN OTHER MATTER–
USE OF THE AUDITOR’S REPORT
Our auditor’s report must always be read together with the au-
dited consolidated financial statements and the audited group
management report as well as the assured ESEF documents.
The consolidated financial statements and the group manage-
ment report converted to the ESEF format – including the ver-
sions to be filed in the company register – are merely electronic
renderings of the audited consolidated financial statements and
the audited group management report and do not take their
place. In particular, the “Report on the Assurance on the Elec-
tronic Rendering of the Consolidated Financial Statements and
the Group Management Report Prepared for Publication Pur-
poses in Accordance with § 317 Abs. 3a HGB” and our assur-
ance opinion contained therein are to be used solely together
with the assured ESEF documents made available in electronic
form.
GERMAN PUBLIC AUDITOR
RESPONSIBLE FOR THE ENGAGEMENT
The German Public Auditor responsible for the engagement is
Michael Popp.
Munich, 12 March 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Ralf Räpple
Michael Popp
Wirtschaftsprüfer
Wirtschaftsprüfer
(German Public Auditor)
(German Public Auditor)
370
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Assurance Report of the Independent German Public Auditor
On an assurance engagement to obtain limited and
reasonable assurance in relation to the Group Sustainability
Report
To Bayerische Motoren Werke Aktiengesellschaft, Munich
Assurance Conclusions
We have conducted a limited assurance engagement on the
group sustainability report of Bayerische Motoren Werke Ak-
tiengesellschaft, Munich, (hereinafter the „Company“) taking into
account, as set forth in the subsequent paragraph, the reasona-
ble assurance engagement on the disclosures marked with the
footnote “Assurance Level: reasonable assurance” in the group
sustainability report included in section "Sustainability Report" of
the group management report, which is combined with the Com-
pany's management report, for the financial year from 1 January
to 31 December 2024 (hereinafter the "Group Sustainability Re-
port"). The Group Sustainability Report has been prepared to ful-
fil the requirements of Directive (EU) 2022/2464 of the Euro-
pean Parliament and of the Council of 14 December 2022 (Cor-
porate Sustainability Reporting Directive, CSRD) and Article 8 of
Regulation (EU) 2020/852 as well as §§ [Articles] 289b to
289e HGB [Handelsgesetzbuch: German Commercial Code]
and §§ 315b to 315c HGB to prepare a combined non-financial
statement.
Based on the particular engagement, we have conducted a rea-
sonable assurance engagement on the disclosures
—
CO2e footprint - Scope 1 and Scope 2 – Reduction path
guided scopes
—
CO2e footprint - Scope 3 - Reduction path guided scopes
—
CO2e emissions form BMW Group locations (Scope 1 and 2)
per vehicle produced
—
CO2e emissions in the supply chain (Scope 3) per vehicle
produced
—
BMW Group’s global fleet carbon emissions
—
CO2 emissions of the new vehicle fleet EU
—
CO2 fleet emissions in the US market (volume-weighted)
—
CO2 fleet emissions in China (volume-weighted)
—
Number of employees at the end of the year and break-
down by contract type, gender, geographical areas and
country, age group)
—
Gender distribution at management level
—
Employee turnover rate
marked with the footnote “Assurance Level: reasonable assur-
ance” (together hereinafter the “Disclosures marked with the
footnote “Assurance Level: reasonable assurance” ”) in the
Group Sustainability Report. A reasonable assurance engage-
ment on these disclosures fulfils the requirements for a limited
assurance engagement and, in accordance with Recital 60 to the
CSRD, thereby complies with the requirements of the CSRD re-
lating to assurance of the Group Sustainability Report.
Based on the procedures performed and the evidence obtained
as part of our limited assurance engagement, nothing has come
to our attention that causes us to believe that the accompanying
Group Sustainability Report, taking into account the Disclosures
in the Group Sustainability Report marked with the footnote “As-
surance Level: reasonable assurance” and subject to a reasona-
ble assurance engagement, is not prepared, in all material re-
spects, in accordance with the requirements of the CSRD and Ar-
ticle 8 of Regulation (EU) 2020/852, § 315c in conjunction with
§§ 289c to 289e HGB to prepare a combined non-financial
statement as well as with the supplementary criteria presented
by the executive directors of the Company. This assurance con-
clusion includes that no matters have come to our attention that
cause us to believe:
—
that the accompanying Group Sustainability Report does not
comply, in all material respects, with the European Sustain-
ability Reporting Standards (ESRS), including that the pro-
cess carried out by the Company to identify the information
to be included in the Group Sustainability Report (hereinafter
the “materiality assessment”) is not, in all material respects,
in accordance with the description set out in section "Proce-
dure and methodological basis for the materiality assess-
ment" of the Group Sustainability Report, or
—
that the disclosures set out in section "Environmental Infor-
mation" of the Group Sustainability Report do not comply, in
all material respects, with Article 8 of Regulation (EU)
2020/852.
In our opinion, on the basis of our reasonable assurance engage-
ment, the Disclosures marked with the footnote “Assurance
Level: reasonable assurance” in the Group Sustainability Report
were prepared, in all material respects, in accordance with the
requirements applicable to these disclosures and the supple-
mentary criteria presented by the executive directors of the Com-
pany.
Basis for the Assurance Conclusions
We conducted our limited assurance engagement in accordance
with the International Standard on Assurance Engagements
(ISAE) 3000 (Revised): Assurance Engagements Other Than
Audits or Reviews of Historical Financial Information, issued by
the International Auditing and Assurance Standards Board
(IAASB).
The procedures in a limited assurance engagement vary in na-
ture and timing from, and are less in extent than for, a reasonable
assurance engagement. Consequently, the level of assurance
obtained is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement
been performed.
ASSURANCE REPORT OF THE INDEPENDENT GERMAN PUBLIC AUDITOR
371
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Assurance Report of the Independent German Public Auditor
Our responsibilities under ISAE 3000 (Revised) are further de-
scribed in the "German Public Auditor's Responsibilities for the
Assurance Engagement on the Group Sustainability Report" sec-
tion.
We are independent of the Company in accordance with the re-
quirements of European law and German commercial and pro-
fessional law, and we have fulfilled our other German profes-
sional responsibilities in accordance with these requirements.
Our audit firm has complied with the quality management system
requirements of the IDW Standard on Quality Management: Re-
quirements for Quality Management in the Audit Firm (IDW QMS
1 (09.2022)) issued by the Institut der Wirtschaftsprüfer (Insti-
tute of Public Auditors in Germany; IDW). We believe that the ev-
idence we have obtained is sufficient and appropriate to provide
a basis for our assurance conclusions.
Responsibility of the Executive Directors and the
Supervisory Board for the Group Sustainability Report
The executive directors are responsible for the preparation of the
Group Sustainability Report in accordance with the requirements
of the CSRD and the relevant German legal and other European
regulations as well as with the supplementary criteria presented
by the executive directors of the Company. They are also respon-
sible for the design, implementation and maintenance of such in-
ternal controls that they have considered necessary to enable the
preparation of a Group Sustainability Report in accordance with
these regulations that is free from material misstatement,
whether due to fraud (i.e., manipulation of the Group Sustaina-
bility Report) or error.
This responsibility of the executive directors includes establish-
ing and maintaining the materiality assessment process, select-
ing and applying appropriate reporting policies for preparing the
Group Sustainability Report, as well as making assumptions and
estimates and ascertaining forward-looking information for indi-
vidual sustainability-related disclosures.
The supervisory board is responsible for overseeing the process
for the preparation of the Group Sustainability Report.
Inherent Limitations in the Preparation of the Group
Sustainability Report
The CSRD and the relevant German statutory and other Euro-
pean regulations contain wording and terms that are still subject
to considerable interpretation uncertainties and for which no au-
thoritative, comprehensive interpretations have yet been pub-
lished. Therefore, the executive directors have disclosed their in-
terpretations of such wording and terms in section “Materiality
Assessment” of the Non-Financial Group Reporting. The execu-
tive directors are responsible for the defensibility of these inter-
pretations. As such wording and terms may be interpreted differ-
ently by regulators or courts, the legal conformity of measure-
ments or evaluations of sustainability matters based on these in-
terpretations is uncertain.
These inherent limitations also affect the assurance engagement
on the Group Sustainability Report.
German Public Auditor's Responsibilities for the Assurance
Engagement on the Group Sustainability Report
Our objectives are
a)
to express a limited assurance conclusion, based on the as-
surance engagement we have conducted, on whether any
matters have come to our attention that cause us to believe
that the Group Sustainability Report, taking into account the
Disclosures in the Group Sustainability Report marked with
the footnote “Assurance Level: reasonable assurance” and
subject to a reasonable assurance engagement, has not
been prepared, in all material respects, in accordance with
the CSRD and the relevant German legal and other Euro-
pean regulations as well as with the supplementary criteria
presented by the executive directors of the Company, and to
issue an assurance report that includes our assurance con-
clusion on the Group Sustainability Report, taking into ac-
count the Disclosures in the Group Sustainability Report
marked with the footnote “Assurance Level: reasonable as-
surance” and subject to a reasonable assurance engage-
ment.
b)
to express a reasonable assurance opinion, based on the
assurance engagement we have conducted on whether the
Disclosures marked with the footnote “Assurance Level:
reasonable assurance” in the Group Sustainability Report
are prepared, in all material respects, in accordance with the
requirements applicable to these disclosures and the sup-
plementary criteria presented by the executive directors of
the Company.
As part of a limited assurance engagement in accordance with
ISAE 3000 (Revised), we exercise professional judgment and
maintain professional skepticism. We also:
a)
for the limited assurance engagement
—
obtain an understanding of the process to prepare the
Group Sustainability Report, including the materiality as-
sessment process carried out by the Company to identify the
information to be included in the Group Sustainability Re-
port.
—
identify disclosures where a material misstatement due to
fraud or error is likely to arise, design and perform proce-
dures to address these disclosures and obtain limited assur-
ance to support the assurance conclusion. The risk of not
detecting a material misstatement resulting from fraud is
higher than the risk of not detecting a material misstatement
resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misleading representations, or the
override of internal controls. In addition, the risk of not de-
tecting a material misstatement within value chain infor-
mation from sources not under the control of the company
(value chain information) is generally higher than the risk of
not detecting a material misstatement of value chain infor-
mation from sources under the control of the company, as
both the executive directors of the Company and we, as as-
surance practitioners, are ordinarily subject to limitations on
direct access to the sources of value chain information.
—
consider the forward-looking information, including the ap-
propriateness of the underlying assumptions. There is a
substantial unavoidable risk that future events will differ ma-
terially from the forward-looking information.
372
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Assurance Report of the Independent German Public Auditor
b)
for the reasonable assurance engagement
—
perform risk assessment procedures, including obtaining an
understanding of the internal controls that are relevant to
the assurance engagement on the Disclosures marked with
the footnote “Assurance Level: reasonable assurance” in
the Group Sustainability Statement in order to identify and
assess the risks of material misstatement at the assertion
level due to fraud or error, but not for the purpose of express-
ing an assurance opinion on the effectiveness of these inter-
nal controls of the Company. The risk of not detecting a ma-
terial misstatement resulting from fraud is higher than the
risk of not detecting a material misstatement resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or override of internal con-
trol. In addition, the risk of not detecting a material misstate-
ment in information obtained from sources in the value chain
not within the entity’s control (value chain information) is or-
dinarily higher than the risk of not detecting a material mis-
statement in information obtained from sources within the
entity’s control, as both the entity’s executive directors and
we as practitioners are ordinarily subject to restrictions on
direct access to the sources of the value chain information.
—
evaluate the appropriate derivation of the forward-looking
information from the significant assumptions and the appro-
priateness of these assumptions. We do not express a sep-
arate assurance opinion either on the forward-looking infor-
mation nor on the assumptions on which they are based.
There is a substantial unavoidable risk that future events will
differ materially from the forward-looking information.
Summary of the Procedures Performed by the German
Public Auditor
An assurance engagement involves the performance of proce-
dures to obtain evidence about the sustainability information.
The nature, timing and extent of the selected procedures are
subject to our professional judgement.
a)
In conducting our limited assurance engagement, we
have, amongst other things:
—
evaluated the suitability of the criteria as a whole presented
by the executive directors in the Group Sustainability Report.
—
inquired of the executive directors and relevant employees
involved in the preparation of the Group Sustainability Re-
port about the preparation process, including the materiality
assessment process carried out by the company to identify
the information to be included in the Group Sustainability
Report, and about the internal controls relating to this pro-
cess.
—
evaluated the reporting policies used by the executive direc-
tors to prepare the Group Sustainability Report.
—
evaluated the reasonableness of the estimates and the re-
lated disclosures provided by the executive directors. If, in
accordance with the ESRS, the executive directors estimate
the value chain information to be reported for a case in
which the executive directors are unable to obtain the infor-
mation from the value chain despite making reasonable ef-
forts, our assurance engagement is limited to evaluating
whether the executive directors have undertaken these esti-
mates in accordance with the ESRS and assessing the rea-
sonableness of these estimates, but does not include iden-
tifying information in the value chain that the executive di-
rectors have been unable to obtain.
—
performed analytical procedures and made inquiries in rela-
tion to selected information in the Group Sustainability Re-
port.
—
considered the presentation of the information in the Group
Sustainability Report.
—
considered the process for identifying taxonomy-eligible
and taxonomy-aligned economic activities and the corre-
sponding disclosures in the Group Sustainability Report.
b)
In conducting our reasonable assurance engagement,
we have performed the assurance procedures listed
under a) to a greater extent and, amongst other things:
—
evaluated the preparation process and the internal controls
relating to this process.
—
tested the operating effectiveness of selected internal con-
trols.
—
performed test of details on selected disclosures in the
Group Sustainability Report on a sample basis.
Restriction of Use
We draw attention to the fact that the assurance engagement
was conducted for the Company’s purposes and that the report
is intended solely to inform the Company about the result of the
assurance engagement. Accordingly, the report is not intended
to be used by third parties for making (financial) decisions based
on it. Our responsibility is solely towards the Company. We do not
accept any responsibility, duty of care or liability towards third
parties.
Munich, 12 March 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Ralf Räpple
Michael Popp
Wirtschaftsprüfer
Wirtschaftsprüfer
(German Public Auditor)
(German Public Auditor)
05
REMUNERATION
REPORT
373
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
374
Remuneration Report
374
I. Review of the 2024 Financial Year from a Remuneration
Perspective
376
II. Remuneration of the Members of the Board of Management
409
III. Remuneration of the Members of the Supervisory Board
411
IV. Comparison of Change in Remuneration and Earnings Pursuant
to § 162 (1) Sentence 2 No. 2 of the German Stock Corporation Act
(AktG)
415
V. Other Considerations
415
VI. Outlook for the 2025 Financial Year
417
VII. Auditor’s Report
374
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
I. Review of the 2024 Financial Year from a Remuneration Perspective
R E MUN ER A TI O N R E P O R T
374
I.
Review of the 2024 Financial Year from a
Remuneration Perspective
376
II.
Remuneration of the Members of the Board of
Management
376
1.
Principles of the remuneration system and the contribution
of remuneration to the promotion of the Company’s
business strategy and its long-term development
377
2.
Overview of the remuneration system
380
3.
Determination and review of the remuneration system and
individual remuneration
385
4.
Remuneration for the 2024 financial year
395
5.
Share ownership guideline
396
6.
Retirement benefits
396
7.
Malus and clawback provisions
396
8.
Premature termination of activities and post-contractual
non-competition clause
397
9.
Remuneration granted and owed to members of the Board
of Management pursuant to § 162 of the German Stock
Corporation Act (AktG)
405
10. Remuneration granted and owed to former members of
the Board of Management pursuant to § 162 of the
German Stock Corporation Act (AktG)
407
11. Maximum remuneration and remuneration vested in the
2024 financial year (vesting year)
409
III. Remuneration of the Members of the Supervisory
Board
409
1.
Articles of incorporation and procedure
409
2.
Principles and elements of remuneration
409
3.
Remuneration granted and owed to members of the
Supervisory Board pursuant to § 162 of the German Stock
Corporation Act (AktG)
411
IV. Comparison of Change in Remuneration and Earnings
pursuant to § 162 (1) Sentence 2 No. 2 of the German
Stock Corporation Act (AktG)
415
V.
Other Considerations
415
VI. Outlook for the 2025 Financial Year
417
VII. Auditor’s Report
The Board of Management and the Supervisory Board have pre-
pared this Remuneration Report in accordance with the require-
ments of § 162 of the German Stock Corporation Act (AktG). The
report shows and explains the remuneration granted and owed
to the individual current and former members of the Board of
Management and the Supervisory Board of Bayerische Motoren
Werke Aktiengesellschaft (BMW AG), Munich, in the financial
year 2024.1,2
In order to facilitate understanding, the basic features of the re-
muneration system applicable to the members of the Board of
Management and the Supervisory Board, as applied in the 2024
financial year, are also set out below. In view of the fact that indi-
vidual members of the Board of Management also received re-
muneration components from the remuneration system in effect
in the 2019 financial year during the 2024 financial year, ele-
ments of these systems are also explained to the extent neces-
sary for comprehension.
PricewaterhouseCoopers
GmbH
Wirtschaftsprüfungsgesell-
schaft, Frankfurt am Main, Munich branch, has audited the Re-
muneration Report beyond the requirements of § 162 (3) Sen-
tences 1 and 2 AktG. The Auditor’s Report is attached to this re-
port.
I.
REVIEW OF THE 2024 FINANCIAL YEAR
FROM A REMUNERATION PERSPECTIVE
The BMW Group maintained its strong market position in the
global premium segment in reporting year 2024 with sales
growth in Europe and the USA. The BMW brand gained further
market share in Europe, achieved an increase in sales in the USA
and maintained its leading position in China. Globally, BMW was
the leader in the premium segment. The company adjusted its
guidance for the year in September 2024. This was largely due
to delivery stops and recalls related to the supplied Integrated
Brake System (IBS) component and continued subdued demand
in China. The BMW Group achieved its revised targets for 2024.
Compared with the previous year, the BMW Group expanded
sales of both electrified and all-electric vehicles and remained
significantly below the regulatory CO2 limit for the new car fleet in
the EU.
The BMW Group achieved a net profit of € 7.7 billion in the 2024
financial year. € 7.3 billion was attributable to BMW AG share-
holders, while the Group post-tax return on sales amounted to
5.4%.
1 For reasons of simplicity, this report partially uses the masculine form in reference to persons. It is
intended to represent all genders.
2 Due to rounding, it is possible that individual figures in this report may not add up exactly to the
totals provided, and that the percentages presented here may not be an exact reflection of the
absolute values to which they relate.
REMUNERATION REPORT
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BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
I. Review of the 2024 Finacial Year from a Remuneration Perspectiver
The remuneration system applicable for the members of the
Board of Management in the 2024 financial year has been in ef-
fect since 1 January 2021. The Annual General Meeting ap-
proved it on 12 May 2021 with a majority of 91.60% of the valid
votes cast. The Supervisory Board did not resolve any changes
to the remuneration system or the target remuneration for the
2024 financial year.
In December 2023, the Supervisory Board set ambitious targets
linked to the variable remuneration of the members of the Board
of Management for the 2024 financial year. Of the total variable
target remuneration available, around 39% was linked to envi-
ronmental, social or governance (ESG) targets. As in previous
years, the Supervisory Board has set environmental targets as
part of the strategic focus targets, which account for 50% of
long-term variable remuneration (share-based payments) in the
target, linked to the reduction of fleet carbon emissions in the EU
and global sales of all-electric vehicles (BEVs), and has set am-
bitious indicators. The Supervisory Board has thus incorporated
the strategic importance of the Company’s transformation and
compliance with the external requirements for fleet carbon emis-
sions into the remuneration of the Board of Management.
Target achievement for variable remuneration reflects the chal-
lenging market environment. The financial and non-financial tar-
gets for the short-term variable remuneration (bonus) were
largely achieved thanks to the strong overall performance by the
Board of Management ↗ Bonus for the 2024 financial year. However,
in the context of long-term variable remuneration (share-based
remuneration), the ambitious RoCE targets in the Automotive
segment and the sales targets for all-electric vehicles were not
achieved. By contrast, the ambitious targets related to the reduc-
tion of fleet carbon emissions in the EU were exceeded ↗ Share-
based remuneration for the 2024 financial year.
The Board of Management’s total remuneration for the 2024 fi-
nancial year is significantly lower than in the previous year, re-
flecting appropriately the success and challenges involved in the
Company’s performance.
If necessary, and in the interest of the long-term success of
BMW AG, the Supervisory Board may temporarily deviate from
the remuneration system – as provided for in § 87a (2) Sentence
2 AktG. In accordance with G.11 of the German Corporate Gov-
ernance Code dated 28 April 2022 (“GCGC”), the Supervisory
Board has also reserved the right to make adjustments if extraor-
dinary developments occur, such as significant acquisitions and
disposals, or changes in accounting standards or tax regulations
that have a significant impact. After due examination, it did not
make use of these options for the 2024 financial year.
The composition of the Board of Management and the level of
remuneration applicable to the individual members of the Board
of Management did not change during the year.
The remuneration system for the members of the Supervisory
Board is set out in § 16 of the Articles of Incorporation and pro-
vides only for fixed remuneration. It was confirmed by the Annual
General Meeting on 12 May 2021 with a majority of 99.40% of
the valid votes cast, and implemented for the 2024 financial year
in accordance with the provisions of the Articles of Incorporation.
The composition of the Supervisory Board changed in the report-
ing year following elections held in accordance with the German
Co-Determination Act (Mitbestimmungsgesetz). Christiane Ben-
ner, Bernhard Ebner and Johann Horn left the Supervisory Board
with effect from the end of the Annual General Meeting on
15 May 2024. Ulrich Bauer, Horst Ott and Prof. Dr. Johanna
Wenckebach were elected as new members of the Supervisory
Board with effect from the same date. Due to retirement, Gerhard
Kurz stepped down with effect from 31 October 2024. His re-
placement, Dr. Michael Nikolaides, took his place with effect from
1 November 2024.
The composition of the Personnel Committee, which is responsi-
ble for the preparation of remuneration decisions, did not change
in the 2024 financial year. With effect from 1 January 2025, the
Supervisory Board revised the structure of the committees and
resolved to establish a Remuneration Committee. The Remuner-
ation Committee is responsible for the remuneration of the Board
of Management and the Supervisory Board. In this capacity, it
prepares the Remuneration Report and the decisions by the Su-
pervisory Board on the remuneration of the Board of Manage-
ment. The members of the Remuneration Committee acting as
shareholder representatives are Dr.-Ing. Dr.-Ing. E.h. Norbert
Reithofer, Stefan Quandt, Dr. Kurt Bock and Anke Schäferkordt,
and employee representatives are Dr. Martin Kimmich, Stefan
Schmid and Dr. Dominique Mohabeer. This increased the share
of independent shareholder representatives and enhanced di-
versity with regard to the handling of remuneration issues.
The Remuneration Report for the 2023 financial year was con-
firmed by the Annual General Meeting on 15 May 2024 with a
majority of 94.99% of the valid votes cast. In view of the high
level of approval, there was no reason to reconsider fundamental
aspects of the implementation of the remuneration system in
place during the past financial year or the manner of reporting.
Changes were made to the presentation to make certain issues
clearer.
376
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
II.
REMUNERATION OF THE MEMBERS
OF THE BOARD OF MANAGEMENT
1.
Principles of the remuneration system and the contribution of
remuneration to the promotion of the Company’s business
strategy and its long-term development
The remuneration system, which has been in place since the
2021 financial year, complies with the provisions of the German
Stock Corporation Act (AktG) and the recommendations and
suggestions of the GCGC. The Supervisory Board has applied the
following principles in designing the remuneration system for the
Board of Management:
—
The remuneration structure is geared towards the sustaina-
ble and long-term development of the Company. Therefore,
variable remuneration components are predominantly
granted on the basis of a multi-year assessment.
—
The remuneration system ensures that both positive and
negative developments are appropriately reflected in the re-
muneration (“pay for performance”).
—
It takes into account both the performance of the entire
Board of Management and the achievement of individual
targets.
—
The remuneration system observes the principle of con-
sistency in the Company’s remuneration systems: remuner-
ation systems for the Board of Management, executives and
employees of BMW AG are all designed in a similar way.
—
The total remuneration of the members of the Board of
Management is commensurate with their tasks and perfor-
mance as well as the Company’s situation. It is in line with
market practice both in terms of amount and structure, and
takes the size, complexity and economic situation of the
Company into account.
The BMW Group’s business strategy focuses on the customer
and the provision of sustainable individual mobility in the pre-
mium segment, taking into account high profitability, in order to
safeguard the Company’s independence in the future. The remu-
neration system contributes to the implementation of the busi-
ness strategy and the sustainable and long-term development of
the Company. It also takes into account the concerns of the Com-
pany’s important stakeholders (in particular shareholders, cus-
tomers and employees). The incentive effects of the various re-
muneration components have a complementary effect.
—
The fixed basic remuneration counteracts the taking of dis-
proportionately high risks in order to achieve short-term
goals, and thus contributes to the long-term development of
the Company. It ensures a minimum income appropriate to
the tasks and responsibilities of a member of the Board of
Management and is required for remuneration to be com-
petitive in order to attract and retain qualified members of
the Board of Management.
—
The variable bonus is divided into two parts which have dif-
ferent incentive effects. The earnings-related component of
the bonus rewards recipients for achieving the Company’s
financial targets in the vesting year, and promotes the earn-
ings-related parts of the business strategy. In contrast, the
performance component of the bonus is based on non-fi-
nancial performance criteria, which are also derived from the
business strategy. In this respect, the performance compo-
nent of the bonus also offers particular incentives to encour-
age individuals to pursue the goals of the business strategy
consistently for the long-term development of the Company.
These goals do not have to be directly reflected in the key
financial indicators for a given vesting year.
—
The amount of the variable share-based remuneration also
depends on the fulfilment of financial and non-financial tar-
gets derived from the business strategy, since 50% of the
target personal cash investment amount earmarked for
share purchases is linked to a financial key indicator (RoCE
in the Automotive segment), and 50% is linked to strategic
focus targets. The obligation to use the total net amount to
purchase shares of common stock in the Company and to
hold these shares for at least four years is a share ownership
guideline that strengthens the entrepreneurial long-term
orientation of the Board of Management. Implementing the
corporate strategy sustainably by taking appropriate deci-
sions also creates lasting value for the shareholders, and
thus regularly provides the basis for positive long-term cap-
ital market performance. Due to the substantial investment
and the four-year holding period, which continues to apply
even after the member has left the Board, members of the
Board of Management participate in the long-term positive
(and negative) development of the Company, as reflected in
the share price and dividend trends.
377
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the board of Management
2.
Overview of the remuneration system
The table below shows an overview of the current remuneration system.
COMPONENT
Parameters/measurement base, applicable amounts
FIXED REMUNERATION COMPONENTS
Base salary
Member of the Board of Management:
— € 0.90 million p.a. (first period of office = first remuneration level)
— € 1.05 million p.a. (from second period of office or fourth year of mandate = second remuneration level)
Chairman of the Board of Management:
— € 1.95 million p.a.
Base salary is paid monthly on a pro rata basis
Fringe benefits
Contractual agreement, main points: non-cash benefits from the use of company cars and the BMW chauffeur service, insurance premiums, contributions towards security systems, employee discounts
Compensation payments
The Supervisory Board may award payments to compensate for loss of salary from a previous employment relationship and to cover relocation costs in the case of new entrants
Retirement benefits
Defined contribution system with a guaranteed minimum return
Benefits based on amounts credited to individual savings accounts for contributions paid and interest earned, various forms of disbursement
Pension contribution p.a.:
Member of the Board of Management: € 400,000
Chairman of the Board of Management: € 700,000
Strategic relevance
— The base salary counteracts the temptation to take disproportionately high risks in order to achieve short-term goals, and thus contributes to the long-term development of the Company
— Fixed remuneration components are required for remuneration to be competitive in order to attract and retain qualified members of the Board of Management
VARIABLE REMUNERATION COMPONENTS
Bonus
Bonus
(sum of earnings component and
performance component)
— Target amount p.a. (at 100% target achievement):
— € 0.95 million (first period of office = first remuneration level)
— € 1.15 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.10 million (Chairman of the Board of Management)
— Capped at 180% of target amount
— Payment as part of the next payroll run after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
Earnings component
(at 100% target achievement corresponds
to 50% of target amount)
— Assessment period one year
— Base amount p.a. (50% of target bonus amount):
— € 0.475 million (first period of office = first remuneration level)
— € 0.575 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.050 million (Chairman of the Board of Management)
— Formula: 50% of target amount x performance factor
— Earnings factor is derived from an allocation matrix determined in advance based on the parameters “profit attributable to shareholders of BMW AG” and “Group post-tax return on sales” in the vesting year
— The earnings factor is 1.0 e.g. in case of a profit attributable to shareholders of BMW AG amounting to € 7.0 billion and a Group post-tax return on sales of 6.0%
— The earnings factor is 1.5 e.g. in case of a profit attributable to shareholders of BMW AG amounting to € 8.6 billion and a Group post-tax return on sales of 7.7%
— The earnings factor is 0 in case of a profit attributable to shareholders of BMW AG below € 4.0 billion and/or a Group post-tax return on sales of below 3.2%
— Earnings factor may not exceed 1.8
— Maximum amount of earnings component p.a.:
— € 0.855 million (first period of office = first remuneration level)
— € 1.035 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.890 million (Chairman of the Board of Management)
378
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the board of Management
COMPONENT
Parameters/measurement base, applicable amounts
Bonus (continued)
Performance component
(at 100% target achievement corresponds
to 50% of target amount)
— Assessment period one year
— Base amount p.a. (50% of target bonus amount):
— € 0.475 million (first period of office = first remuneration level)
— € 0.575 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.050 million (Chairman of the Board of Management)
— Formula: 50% of target amount x performance factor
— Non-financial criteria, expressed in terms of a performance factor, aimed at measuring the Board member’s contribution to sustainable and long-term performance and the
future orientation of the Company
— Relevant period is the vesting year
— Additional trend analysis over at least three financial years
— Composition of performance factor:*
— 50% cross-divisional targets with ESG criteria
— 40% other cross-divisional targets
— 10% individual targets
— Criteria for cross-divisional targets with ESG criteria include in particular: Innovation performance (environmental, e.g. reduction of carbon emissions), development of the BMW Group’s reputation based on
ESG aspects (e.g. corporate culture, promotion of integrity and compliance), adaptability, attractiveness as an employer, leadership performance
— Criteria for the other cross-divisional targets include in particular: Market position compared to competitors, innovation performance (economic), development of the BMW Group’s reputation based on
non-ESG-related aspects (e.g. perception on capital markets, brand strength), customer orientation
— Measurement parameters and target values are determined before the start of the financial year
— Performance factor may not exceed 1.8
— Maximum amount of performance component p.a.:
— € 0.855 million (first period of office = first remuneration level)
— € 1.035 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.890 million (Chairman of the Board of Management)
Strategic relevance
— Earnings component of bonus rewards attainment of financial targets and is beneficial for earnings-related aspects of business strategy
— Performance component of bonus motivates the pursuit of non-financial strategic targets and is therefore beneficial for the long-term development of the BMW Group
Share-based remuneration
Personal cash investment amount
— Requirement for Board of Management members to invest an earmarked cash amount (personal cash investment amount), net of tax and deductions, in shares of BMW common stock immediately after
disbursement
— Payment as part of the next payroll run after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
— Requirement for Board of Management members to hold the acquired shares of common stock for at least four years; this requirement remains in effect for individuals who step down from the Board of
Management (share ownership guideline)
— Assessment period of five years in total (one year for determining the personal cash investment amount, four years holding requirement)
Calculation
— Target amount p.a. (at 100% target achievement):
— € 1.10 million (first period of office = first remuneration level)
— € 1.28 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.35 million (Chairman of the Board of Management)
— 50% of target amount depends on RoCE achieved in the Automotive segment (RoCE component)
— 50% of the target amount depends on the achievement of predefined strategic focus targets (strategic focus target component)
— Capped at 180% of target amount
— Payment after the Annual General Meeting at which the Financial Statements are presented for the relevant vesting year
* See below for the targets set for the 2024 financial year ↗ Variable remuneration for the 2024 financial year.
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II. Remuneration of the Members of the board of Management
COMPONENT
Parameters/measurement base, applicable amounts
Share-based remuneration (continued)
RoCE component
(at 100% target achievement corresponds
to 50% of target amount)
— Target amount of RoCE component p.a. (50% of target amount for personal cash investment amount):
— € 0.55 million (first period of office = first remuneration level)
— € 0.64 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.175 million (Chairman of the Board of Management)
— Formula: 50% of target amount x RoCE factor
— RoCE factor is derived from the RoCE achieved in the Automotive segment for the vesting year
— Minimum, target and maximum values for RoCE are defined before the start of the financial year
— RoCE factor may not exceed 1.8
— Maximum amount of RoCE component p.a.:
— € 0.990 million (first period of office = first remuneration level)
— € 1.152 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.115 million (Chairman of the Board of Management)
Strategic focus target component
(at 100% target achievement corresponds
to 50% of target amount)
— Target amount of strategic focus target component p.a. (50% of target amount for personal cash investment amount):
— € 0.55 million (first period of office = first remuneration level)
— € 0.64 million (from second period of office or fourth year of mandate = second remuneration level)
— € 1.175 million (Chairman of the Board of Management)
— At least two strategic focus targets derived from the strategic plan
— Weighting of the strategic focus targets is decided before the start of the financial year
— Formula in the event of two strategic focus targets with equal weighting p.a.:
25% of target amount for personal cash investment amount x factor for strategic focus target 1 + 25% of target amount for personal cash investment amount x factor for strategic focus target 2
— Minimum, target and maximum values are defined before the start of the financial year
— Factor for each strategic focus target may not exceed 1.8
— Maximum amount of strategic focus target component p.a.:
— € 0.990 million (first period of office = first remuneration level)
— € 1.152 million (from second period of office or fourth year of mandate = second remuneration level)
— € 2.115 million (Chairman of the Board of Management)
Strategic relevance
— 50% of the personal cash investment amount within the target structure depends on the RoCE and is therefore directly linked to a key target for the corporate strategy and reflects BMW AG’s aspiration to
generate a significant premium on the cost of capital
— The remaining 50% of the personal cash investment amount encourages achievement of strategic focus targets and therefore contributes to business performance in key strategic areas
— Commitment to purchase shares of the Company’s common stock and the four-year holding period provide additional motivation to support the Company’s long-term development
Malus and clawback rules
Malus
— Agreement to withhold variable remuneration in the event of specified serious compliance violations or (withholding amounts provisionally) in the event of reasonable suspicions of such
— Amounts may also be withheld in principle after a member has left the Board of Management
Clawback
— Agreement entitling the BMW Group to reclaim variable remuneration already paid out in the event of specified serious incidences of non-compliance, incorrect calculation bases or incorrect financial statements
— Amounts may also be clawed back in principle after a member has left the Board of Management
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Other Information
II. Remuneration of the Members of the board of Management
COMPONENT
Parameters/measurement base, applicable amounts
Maximum amounts p.a.
in € million p.a.
Bonus
Share-based remuneration (personal cash investment amount)
Maximum remuneration*
Member of the Board of Management in the
first period of office
€ 1.710 million
€ 1.980 million
€ 4.925 million
Member of the Board of Management in the
second period of office or fourth year of
mandate
€ 2.070 million
€ 2.304 million
€ 5.500 million
Chairman of the Board of Management
€ 3.780 million
€ 4.230 million
€ 9.850 million
* Maximum remuneration as defined in section 87a (1) sentence 2 no. 1 AktG. The overall cap is lower than the sum of the maximum amounts for the individual components.
3.
Determination and review of the remuneration system and
individual remuneration
Determining the system and structure of Board of Management
remuneration, and reviewing it regularly, is a task of the full Su-
pervisory Board, as is determining the individual level of remu-
neration of members of the Board of Management. The respon-
sible Personnel Committee (Remuneration Committee since
1 January 2025) of the Supervisory Board assumes a prepara-
tory function.
The Supervisory Board reviews the remuneration system annu-
ally to ensure it is appropriate in terms of structure, target and
maximum remuneration, as well as actual remuneration. The Su-
pervisory Board also takes remuneration studies into account
when assessing the market conformity of the target and maxi-
mum remuneration, as well as when assessing actual remuner-
ation in horizontal terms. Due to the size and structure of the
BMW Group, DAX companies are used as a comparison group
while taking revenues, employee headcounts and market capi-
talisation into consideration. This ensures that the main compet-
itors of BMW AG and other global companies are factored in. In
addition, the reference to the DAX ensures that comparable reg-
ulatory requirements in respect of remuneration apply to the
companies listed on it. Vertically, the Supervisory Board com-
pares the remuneration of members of the Board of Manage-
ment with the remuneration of senior executives and with the av-
erage remuneration of employees employed by BMW AG in Ger-
many in areas inside and outside the scope of collective bargain-
ing agreements, including in terms of how they have changed
over a period of several years. Recommendations from inde-
pendent external remuneration experts, as well as suggestions
from investor and analyst circles, may also be included in the de-
liberations. For the 2024 financial year, the review has shown
that the target, maximum and actual remuneration are appropri-
ate. In accordance with the remuneration system, the Supervi-
sory Board – acting on the proposal of the Personnel Committee
(since 1 January 2025 the Remuneration Committee) – sets spe-
cific target remuneration for each individual member of the Board
of Management for the upcoming financial year, as well as the
performance criteria associated with the variable remuneration
components provided for in the remuneration system.
The total target remuneration is composed of the fixed remuner-
ation and the variable remuneration. Within the variable target
remuneration, the proportion of share-based remuneration as
long-term variable remuneration exceeds the share of the bonus
as short-term variable remuneration. The share of the individual
remuneration components is within the ranges specified by the
remuneration system.
Overview of total target remuneration for members of the
Board of Management1
1 The remuneration structure as defined in the remuneration system for total target remuneration is
depicted.
2 Excluding a possible payment to new members of the Board of Management to compensate for
salary losses from a previous employment relationship and/or to cover relocation costs.
Target remuneration for the 2024 financial year
The following tables show the individual target remuneration of
the members of the Board of Management and the relative share
of the respective remuneration component in the total target re-
muneration. The maximum remuneration and remuneration
vested in the 2024 financial year are shown in ↗ Maximum
remuneration and remuneration vested in the 2024 financial year (vesting year).
Variable
Remuneration
58-66%
Base salary
25-30%
Contributions
Retirement
benefits
7-12%
Fringe benefits²
1-4%
Bonus
27-30%
Share-based
Remuneration
31-36%
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Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Target remuneration for the 2024 (2023) financial year
OLIVER ZIPSE
JOCHEN GOLLER
Chairman of the Board of Management since 16 August 2019
Member of the Board of Management since 13 May 2015
Customer, Brands, Sales
since 1 November 2023
FY 2024
FY 2023
FY 2024
FY 2023
in €
in %
in €
in %
in €
in %
in €
in %
Fixed
remuneration
Fixed remuneration (base salary)
1,950,000
27
1,950,000
27
900,000
27
150,000
27
Fringe benefits (other remuneration)1
27,963
0.4
26,113
0.4
22,541
1
3,331
1
Contribution to the company pension scheme
700,000
10
700,000
10
400,000
12
66,667
12
Total fixed remuneration
2,677,963
38
2,676,113
38
1,322,541
39
219,998
39
Variable
remuneration
B O N U S
Earnings component
1,050,000
15
1,050,000
15
475,000
14
79,167
14
Performance component
1,050,000
15
1,050,000
15
475,000
14
79,167
14
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) ²
RoCE component
1,175,000
16
1,175,000
16
550,000
16
91,667
16
Strategic focus target component
1,175,000
16
1,175,000
16
550,000
16
91,667
16
Total variable remuneration
4,450,000
62
4,450,000
62
2,050,000
61
341,668
61
Total target remuneration
7,127,963
100
7,126,113
100
3,372,541
100
561,666
100
1 For more information about fringe benefits for the 2023 and 2024 financial years, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
2 Assessment period five years in total: one year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
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II. Remuneration of the Members of the Board of Management
Target remuneration for the 2024 (2023) financial year
ILKA HORSTMEIER
WALTER MERTL
Human Resources and Real Estate, Labour Director
since 1 November 2019
Finance
since 12 May 2023
FY 2024
FY 2023
FY 2024
FY 2023
in €
in %
in €
in %
in €
in %
in €
in %
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
27
1,050,000
27
900,000
27
570,652
26
Fringe benefits (other remuneration)1
65,693
2
66,981
2
27,273
1
111,981
5
Contribution to the company pension scheme
400,000
10
400,000
10
400,000
12
253,623
11
Total fixed remuneration
1,515,693
38
1,516,981
38
1,327,273
39
936,256
42
Variable
remuneration
B O N U S
Earnings component
575,000
15
575,000
15
475,000
14
301,178
13
Performance component
575,000
15
575,000
15
475,000
14
301,178
13
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) ²
RoCE component
640,000
16
640,000
16
550,000
16
348,732
16
Strategic focus target component
640,000
16
640,000
16
550,000
16
348,732
16
Total variable remuneration
2,430,000
62
2,430,000
62
2,050,000
61
1,299,820
58
Total target remuneration
3,945,693
100
3,946,981
100
3,377,273
100
2,236,076
100
1 For more information about fringe benefits for the 2023 and 2024 financial years, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
2 Assessment period five years in total: one year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
383
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II. Remuneration of the Members of the Board of Management
Target remuneration for the 2024 (2023) financial year
MILAN NEDELJKOVIĆ
JOACHIM POST
Production
since 1 October 2019
Purchasing and Supplier Network
since 1 January 2022
FY 2024
FY 2023
FY 2024
FY 2023
in €
in %
in €
in %
in €
in %
in €
in %
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
27
1,050,000
27
900,000
27
900,000
27
Fringe benefits (other remuneration)1
32,312
1
27,524
1
29,124
1
22,692
1
Contribution to the company pension scheme
400,000
10
400,000
10
400,000
12
400,000
12
Total fixed remuneration
1,482,312
38
1,477,524
38
1,329,124
39
1,322,692
39
Variable
remuneration
B O N U S
Earnings component
575,000
15
575,000
15
475,000
14
475,000
14
Performance component
575,000
15
575,000
15
475,000
14
475,000
14
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) ²
RoCE component
640,000
16
640,000
16
550,000
16
550,000
16
Strategic focus target component
640,000
16
640,000
16
550,000
16
550,000
16
Total variable remuneration
2,430,000
62
2,430,000
62
2,050,000
61
2,050,000
61
Total target remuneration
3,912,312
100
3,907,524
100
3,379,124
100
3,372,692
100
1 For more information about fringe benefits for the 2023 and 2024 financial years, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
2 Assessment period five years in total: one year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
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II. Remuneration of the Members of the Board of Management
Target remuneration for the 2024 (2023) financial year
FRANK WEBER
Development
since 1 July 2020¹
FY 2024
FY 2023
in €
in %
in €
in %
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
27
975,000
27
Fringe benefits (other remuneration)2
31,031
1
29,392
1
Contribution to the company pension scheme
400,000
10
400,000
11
Total fixed remuneration
1,481,031
38
1,404,392
39
Variable
remuneration
B O N U S
Earnings component
575,000
15
525,000
14
Performance component
575,000
15
525,000
14
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) ³
RoCE component
640,000
16
595,000
16
Strategic focus target component
640,000
16
595,000
16
Total variable remuneration
2,430,000
62
2,240,000
61
Total target remuneration
3,911,031
100
3,644,392
100
1 Second remuneration level since 1 July 2023.
2 For more information about fringe benefits for the 2023 and 2024 financial years, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock
Corporation Act (AktG).
3 Assessment period five years in total: one year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
385
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II. Remuneration of the Members of the Board of Management
4.
Remuneration for the 2024 financial year
In December 2023, the Supervisory Board determined the target
remuneration for the members of the Board of Management for
the 2024 financial year as well as the performance criteria for the
variable remuneration components provided for in the remunera-
tion system. In March 2025, the Supervisory Board set the
amount of the variable remuneration components for the mem-
bers of the Board of Management for the 2024 financial year af-
ter reviewing and assessing the extent to which the targets had
been achieved. The decision in March 2025 was prepared by the
Remuneration Committee established on 1 January 2025.
a) Fixed remuneration for the 2024 financial year
Each member of the Board of Management receives a fixed base
salary, which is paid monthly on a pro rata basis and the amount
of which depends on their function on the Board of Management
and remuneration level.
The fringe benefits include, in particular, non-cash benefits from
vehicle use and employee discounts and subsidies for safety
equipment. The Supervisory Board can approve payments to
newly appointed members of the Board of Management in order
to compensate them for loss of salary from a previous employ-
ment relationship and/or to cover relocation costs. No such ap-
provals were issued and no special allowances were made in the
2024 financial year.
Overview of fixed remuneration for the 2024 financial year
in €
Base salary
Fringe benefits
(other remuneration)
Total fixed
remuneration
Oliver Zipse
1,950,000
27,963
1,977,963
Jochen Goller
900,000
22,541
922,541
Ilka Horstmeier
1,050,000
65,693
1,115,693
Walter Mertl
900,000
27,273
927,273
Milan Nedeljković
1,050,000
32,312
1,082,312
Joachim Post
900,000
29,124
929,124
Frank Weber
1,050,000
31,031
1,081,031
b) Variable remuneration for the 2024 financial year
The variable remuneration for the 2024 financial year consists of
the bonus and the share-based remuneration. When determining
specific target values, the Supervisory Board takes into account,
in particular, long-term corporate planning and business devel-
opment planning for the following year as submitted to the Su-
pervisory Board for approval. For the strategic relevance of the
individual remuneration components, see also above ↗ Overview of
the remuneration system.
Overview of variable target remuneration 2024
* Incorporating the collective departmental targets for the performance component of the bonus.
.
Share-based
remuneration
RoCE component
Approx. 26-27%
Share-based
remuneration
Strategic
focus target
component
Approx. 26-27%
(of which ESG
targets: 100%)
Bonus Performance
component
Approx. 23-24%
(of which ESG
targets: 50%)
Bonus
Earnings component
Approx. 23-24%
Variable target remuneration
with ESG targets
Approx. 39 % in total*
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II. Remuneration of the Members of the Board of Management
(1) Bonus for the 2024 financial year
Overview
The bonus consists of an earnings component and a perfor-
mance component. If 100% of the target is achieved for both the
earnings and performance components, the share of the bonus
attached to each component is 50% of the individual target
amount of the bonus. The bonus amount is capped at 180% of
the individual target amount. The bonus for the financial year will
be paid as part of the next payroll run after the Annual General
Meeting in 2025.
Earnings component of the bonus
The earnings component of the bonus rewards the performance
of the business in the 2024 vesting year, as measured by the
financial indicators “Profit attributable to shareholders of
BMW AG” and “Group post-tax return on sales”. The Supervisory
Board adopted an allocation matrix for this purpose prior to the
start of the financial year in 2023, from which an earnings factor
is derived based on the values achieved. The Supervisory Board
approved an increase in the required level for the 2024 financial
year. For example, a target achievement of 100% is based on
profit attributable to shareholders of BMW AG amounting to
€ 7.0 billion (previous year: € 5.3 billion) and a post-tax return on
sales of 6.0% (previous year: 5.6%).
A minimum value, a target value and a maximum value were de-
fined for both key figures prior to the start of the 2024 vesting
year. If one of the minimum values is not reached, the earnings
factor is zero (corresponding to a target achievement of 0%).
When both minimum values are reached, i.e. a profit attributable
to shareholders amounting to € 4.0 billion and a post-tax return
on sales of 3.2%, the earnings factor is 0.135 (corresponding to
a target achievement of 13.5%). If both target values are
reached, the earnings factor is 1.000 (corresponding to a target
achievement of 100%). If both maximum values are reached, the
earnings factor is 1.800 (corresponding to a target having been
180% achieved, the highest possible percentage). For interme-
diate values, the earnings factor is derived from the allocation
matrix.
Overview of the composition of the bonus
EARNINGS COMPONENT
PERFORMANCE COMPONENT
50 % OF TARGET AMOUNT ×
EARNINGS FACTOR
+
50 % OF TARGET AMOUNT ×
PERFORMANCE FACTOR
=
BONUS
— Earnings factor is derived from an allocation matrix based on the
parameters “profit attributable to shareholders of BMW AG” and
“Group post-tax return on sales” in the vesting year
— Earnings factor may not exceed 1.8
— Performance factor is derived from
— 50 % cross-divisional targets with ESG criteria
— 40 % other cross-divisional targets
— 10 % individual departmental targets
— Performance factor may not exceed 1.8
— Capped at 180 %
of target amount
Earnings component of the bonus: allocation matrix1
1 Simplified depiction.
2 Earnings factor 2024.
Group return on sales
after tax in %
9.4
Maximum value
6.0
Target value
3.2
Minimum value
4.0
Minimum value
7.0
Target value
12.7
Maximum value
0.9092
1.000
0.135
Profit attributable to
Shareholders of BMW AG in € billion
1.800
5,4
7.3
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II. Remuneration of the Members of the Board of Management
Targets set and extent of achievement – earnings component of the
bonus for the 2024 financial year
The targets set and the extent to which they have been achieved,
as well as the specific amounts associated with the earnings
component of the bonus for the 2024 financial year, are shown
in the following tables. In the 2024 financial year, BMW AG’s
share of profit attributable to shareholders was € 7.290 billion,
and the Group post-tax return on sales was 5.4%. Based on the
allocation matrix approved by the Supervisory Board, this yields
an earnings factor of 0.909, which corresponds to a target
achievement level of 90.9%.
Performance component of the bonus
The performance component of the bonus rewards the achieve-
ment of certain non-financial targets. Before the beginning of the
financial year, the Supervisory Board sets these targets in the
form of various non-financial performance criteria and associ-
ated metrics. The performance criteria are derived primarily from
the corporate strategy, long-term corporate planning and the
business development planning done for the following year. The
targets are divided into individual targets for the individual mem-
bers of the Board of Management (departmental targets) and
collective targets for the entire Board of Management (interde-
partmental targets). The Supervisory Board has discretion in
weighting the performance criteria. Approximately 10% of the
target amount for the performance bonus is intended to be allo-
cated to the departmental targets. Departmental targets can be
department-specific targets or contributions to shared targets
measured individually for each department. The remainder of the
target amount for the performance bonus (amounting to approx-
imately 90%) should be associated with interdepartmental, non-
financial targets. In this regard, around 50% of the target amount
should be connected to the achievement of non-financial targets
relating to environmental, social and governance (i.e. ESG tar-
gets).
Targets set and extent of achievement – earnings component of the bonus for the 2024 financial year
Performance criteria
Minimum value
Target value Maximum value
Actual value
Extent to which
target achieved
Earnings
factor
Profit attributable to shareholders of BMW AG in € billion
4.0
7.0
12.7
7.3
90.9%
0.909
Group return on sales after tax in %
3.2
6.0
9.4
5.4
Overview of earnings component of the bonus for the 2024 financial year
Member of the Board of Management
Proportionate target bonus
amount in €
Earnings factor
Earnings component
of the bonus in €
Oliver Zipse
1,050,000
0.909
954,450
Jochen Goller
475,000
431,775
Ilka Horstmeier
575,000
522,675
Walter Mertl
475,000
431,775
Milan Nedeljković
575,000
522,675
Joachim Post
475,000
431,775
Frank Weber
575,000
522,675
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II. Remuneration of the Members of the Board of Management
Targets set and extent of achievement – performance component of
the bonus for the 2024 financial year
The targets set by the Supervisory Board for the 2024 vesting
year as part of the performance component of the bonus, the
weighting of the relevant criteria and the individual target
achievement are summarised in the tables below.
The Supervisory Board assessed the performance of the mem-
bers of the Board of Management in terms of the departmental
targets and the interdepartmental targets set for 2024, within a
target achievement corridor with a partial performance factor be-
tween 0 (corresponding to a target being 0% achieved) and 1.80
(corresponding to a maximum possible target achievement of
180%). The performance factor for the bonus was determined
from the partial performance factors, with a weighting of 10% for
the departmental targets and 90% for the interdepartmental tar-
gets, in each case in relation to the target amount of the perfor-
mance component of the bonus. With regard to the interdepart-
mental targets, 50% of the weighting is for non-financial envi-
ronmental, social and governance (ESG) targets, and 40% is for
other non-financial targets, in each case in relation to the target
amount of the performance component of the bonus.
The leadership performance of the individual members of the
Board of Management was assessed, along with the overall per-
formance of the Board of Management as a whole. With regard
to the departmental targets, the Supervisory Board assessed the
individual performance of each member of the Board of Manage-
ment. With regard to the interdepartmental targets, the Supervi-
sory Board considered the Board of Management as a team and
assessed the performance of all the members of the Board of
Management as a whole. The Supervisory Board’s decision-
making process is based on a detailed, documented analysis of
performance as measured against all the agreed criteria, as well
as in-depth discussions at the relevant Committee and full Su-
pervisory Board level.
In addition to a review of performance in 2024, the Supervisory
Board carried out a trend review covering several financial years.
In doing so, it assessed the effects of decisions, measures and
the overall course set in previous financial years on the 2024 fi-
nancial year and also estimated the significance of the
performance in 2024 for the future development of the Com-
pany. The results of comparative studies and calculations vis-à-
vis competitors were also used to assess individual metrics.
As a basis for the targets set in the previous year and the assess-
ment process following the financial year, the Supervisory Board
was guided, in particular, by the quantitative and qualitative met-
rics that were defined in the corporate planning for 2024 prior to
the beginning of the financial year.
These include key figures such as vehicle sales, segment shares,
the share of sales of electrified and all-electric vehicles, and the
connected customer rate indicator. Other metrics included as-
sessments of the quality of the customer experience compared
to competitors, the R&D ratio, spending on employee training
and development and diversity targets.
Overview of targets of the performance component of the
bonus for the financial year 20241
1 Based on the target amount of the performance component of the bonus.
2 Individual assessment for each member of the Board of Management.
3 Collective assessment of the Board of Management as a team.
10%
Departmental
targets²
50%
Interdepartmental
ESG targets³
40%
Other
interdepartmental
non-financial targets³
389
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II. Remuneration of the Members of the Board of Management
Targets set for the performance component of the bonus for financial year 2024
Target set
Interdepartmental
ESG targets
Entire Board of Management¹
Innovation performance (environmental, e.g. share of sales for all-electric vehicles (battery electric vehicle, BEV)) (E)
Reputation (corporate reputation) (G)
Adaptability (sustainability and spending on employee training and development) (E, S, G)
Attractiveness as an employer (e.g. placement in rankings) (S)
Leadership performance (employee satisfaction) (S)
Weighting 50%
Other interdepartmental
non-financial targets
Market position (e.g. BMW Group sales volumes)
Innovation performance (economic, e.g. connected customer rate)
Customer orientation (product and customer service quality, e.g. based on comparative studies)
Reputation (e.g. brand strength)
Weighting 40%
Joint departmental
targets
All members
of the Board of Management²
Contribution to meeting growth, profitability and sustainability targets
Leadership performance in the department and achievement of departmental and interdepartmental diversity targets)
Preventive activities in ensuring compliance in the department
Increased quality focus
Weighting 10%
Specific departmental
targets
Oliver Zipse
Coordinate the work of the Board of Management
Represent the Company’s interests, present new products
Progress with sustainability strategy and transformation process
Future portfolio of the brands, including hydrogen strategy
Jochen Goller
Plan sales and prices, realise potential in our sales markets, effective communication and launch of new products
Anticipate market requirements, manage the production network and safeguard the supply chain
Continue development of digital marketing and sales concepts and prepare regional direct sales models
Represent the Company’s interests in the Chinese sales market
Ilka Horstmeier
Ensure the BMW Group is an attractive employer and ensure labour availability
Manage personnel structures, capacities and costs; oversee skills transformation
Real estate portfolio management
Progress in terms of decarbonisation and energy supply strategies for each location
Walter Mertl
Capital market communication; changes in non-financial reporting and reporting structure
Risk management and Group financing; optimisation of capital structure; investment planning
Implementation of financial targets including digitalisation potential
Steering of investment management in China
Milan Nedeljković
Anticipate market requirements, manage the production network and safeguard the supply chain
Flexible alignment of production structure; enhancement of future-oriented production system
Enhancement and safeguarding of high quality standards
Progress in decarbonisation and energy supply strategy for each location
Joachim Post
Anticipate market requirements, manage the production network and safeguard the supply chain
Meet quality requirements and cost targets
Ensure access to technology and ability to innovate
Continue development of a CO2 management system in the supply chain
Frank Weber
Develop competitive products, strengthen leading position in innovation
Enhancement of technology cluster, mastering of innovative technologies
Hand over products ready for mass production on time; focus on new vehicle, drivetrain and digital architecture
Future portfolio of all brands
1 Collective assessment of the Board of Management as a team. 2 Individual assessment for each member of the Board of Management.
390
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II. Remuneration of the Members of the Board of Management
Overview of target achievement for the performance component of the bonus for the 2024 financial year
Targets
Weighting
in %
Average degree to which
target achieved in %
Performance factor
Proportionate target
bonus amount in €
Performance component
of bonus in €
Oliver Zipse
Interdepartmental targets – ESG
50
104.0
1.00
1,050,000
1,050,000
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
115.6
Jochen Goller
Interdepartmental targets – ESG
50
104.0
0.99
475,000
470,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
108.8
Ilka Horstmeier
Interdepartmental targets – ESG
50
104.0
0.99
575,000
569,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
110.0
Walter Mertl
Interdepartmental targets – ESG
50
104.0
0.99
475,000
470,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
111.3
Milan Nedeljković
Interdepartmental targets – ESG
50
104.0
0.99
575,000
569,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
110.0
Joachim Post
Interdepartmental targets – ESG
50
104.0
0.99
475,000
470,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
108.8
Frank Weber
Interdepartmental targets – ESG
50
104.0
0.99
575,000
569,250
Interdepartmental targets – Other non-financial
40
90.0
Departmental targets
10
110.6
(2) Share-based remuneration for the 2024 financial year
As part of the share-based remuneration as a variable long-term
component of remuneration, the members of the Board of Man-
agement receive a cash payment earmarked for investment in
BMW shares of common stock (the “personal cash investment
amount”). This amount depends on the achievement of certain
financial and non-financial targets in the past financial year (vest-
ing year). The members of the Board of Management are obliged
to invest their personal cash investment amounts (less taxes and
deductions) in BMW shares of common stock immediately after
disbursement, and to hold these shares for a period of at least
four years (share ownership guideline). The holding period re-
mains in effect even after the member leaves the Board of Man-
agement.
Personal cash investment amount
The personal cash investment amount for the 2024 financial
year will be paid as part of the next payroll run after the Annual
General Meeting in 2025. The size of this amount depends on
the target amount, the RoCE achieved in the Automotive seg-
ment and the degree to which certain strategic focus targets
were achieved in the vesting year. The personal cash investment
amount is limited to a maximum of 180% of the target amount
and is calculated as follows:
Personal cash investment amount =
RoCE component + strategic focus target component
391
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II. Remuneration of the Members of the Board of Management
Overview of share-based remuneration1
1 Simplified depiction.
2 At least two strategic focus targets and their proportion of the target amount are determined by the Supervisory Board.
3 Exemplary illustration of price development.
4 Payment of the personal cash investment amount, acquisition of shares and the start of the four-year holding period occur as part of the next payroll run after the Annual General Meeting at which the annual financial statements for the vesting year are presented.
Target amount for the personal cash investment amount
The target amounts for the individual members of the Board of
Management for the 2024 financial year are presented in the ta-
ble ↗ Overview of share-based remuneration for financial year 2024.
RoCE component of the personal cash investment amount
Prior to the beginning of the relevant vesting year, the Supervi-
sory Board sets minimum, target and maximum values for the
RoCE in the Automotive segment in the vesting year on the basis
of corporate planning, and assigns an RoCE factor to each of
these values. If the minimum value is not reached, the RoCE fac-
tor is 0. If the target value is reached, the RoCE factor is 1.00. If
the maximum value is reached or exceeded, the RoCE factor is
1.80. The RoCE component of the personal investment cash
amount is determined by multiplying the RoCE factor for the vest-
ing year by 50% of the individual target amount.
Strategic focus target component of the personal cash investment
amount
The Supervisory Board sets at least two strategic focus targets
before the start of the vesting year. It derives these targets from
the corporate strategy and corporate planning. It then sets a min-
imum, target and maximum value for each strategic focus target,
and assigns a factor to each of these values. If the minimum
value is not reached, the factor for that target is 0. If the target
value is reached, the factor for that target is 1.00. If the maximum
value is reached or exceeded, the factor for that target is 1.80.
The strategic focus target component of the personal cash
investment amount is determined in a two-step process. The
factor for the vesting year achieved for the relevant strategic fo-
cus target is multiplied by the share of the individual target
amount attributable to this target. The values determined for the
individual strategic focus targets using this calculation are then
added together. If two strategic focus targets are set, each stra-
tegic focus target accounts for 25% of the individual target
amount. If more than two strategic focus targets are set, the Su-
pervisory Board determines the weighting of each target.
Performance period: 1 year
50%
RoCE factor
Extent of target achievement for
RoCE in the Automotive segment
(Value between 0 and 1.80)
Target amount
Freely
available
shares
50%
Strategic focus target factor
Extent of target achievement
for strategic focus targets2
(Value between 0 and 1.80)
Target amount
Acquisition of shares4
(amounting to 100%
of the payment amount)
Taxes and deductions
Personal cash
investment amount
(capped at 180%
of the target amount)
Amount paid out
=
=
Total performance period: 5 years
Performance period: 4 years
FY n
FY n+1
FY n+2
FY n+3
FY n+4
FY n+5
Share performance over 4 years3
392
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II. Remuneration of the Members of the Board of Management
Targets set and extent of achievement for the RoCE component for
the 2024 financial year
RoCE in the Automotive segment for the 2024 financial year is
defined as segment profit before the financial result, divided by
the average capital employed in the segment. In December
2023, the Supervisory Board determined the following values
based on long-term corporate planning for the RoCE component
for the vesting year 2024: minimum value: 12% (50% target
achievement), target value: 17% (100% target achievement),
maximum value: 22% (180% target achievement). The RoCE
achieved in the Automotive segment for the 2024 financial year
is 11.4% and therefore under the minimum value. This means
the RoCE factor for calculating the personal cash investment
amount for this component is 0.
Targets set and extent of achievement for the strategic focus target
component for the 2024 financial year
In December 2024, the Supervisory Board set the following stra-
tegic focus targets for the vesting year 2023:
—
Reduce fleet carbon emissions in the EU in accordance with
WLTP (Worldwide Harmonised Light Vehicle Test Proce-
dure); weighting in relation to individual personal cash in-
vestment target: 25%.
—
Sales of all-electric vehicles (BEV); weighting in relation to
individual personal cash investment target: 25%.
Both strategic focus targets relate to environmental objectives
(ESG targets).
Targets set and extent of achievement – RoCE component
Targets set and extent of achievement – reduction of fleet carbon emissions (EU)
Extent to which target achieved
RoCE in Automotive segment in %
Extent to which target achieved: 0%
12
Minimum value
17
Target value
22
Maximum value
200%
100%
150%
50%
0%
180%
Actual value 2024
11.4
Extent to which target achieved
C02 g/km
Extent to which target achieved: 130%
97
Maximum value
101
Target value
125
Minimum value
200%
100%
150%
50%
0%
180%
Actual value 2024
99.5
393
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II. Remuneration of the Members of the Board of Management
With regard to reducing fleet carbon emissions in accordance
with WLTP, the Supervisory Board set the following values in
CO2 g/km under WLTP for fleet consumption in Europe as
threshold values relevant to remuneration for the vesting year
2024: minimum value: 125 CO2 g/km (50% target achieve-
ment), target value: 101 CO2 g/km (100% target achievement),
maximum value: 97 CO2 g/km (180% target achievement). The
actual value for the 2024 financial year is 99.5 CO2 g/km, result-
ing in a target achievement of 130%.
For sales of all-electric vehicles (BEVs), the Supervisory Board
set the following reference values in units for the vesting year
2024: minimum value: 460,000 units (50% target achieve-
ment), target value: 547,000 units (100% target achievement),
maximum value: 630,000 units (180% target achievement).
The actual value for the 2024 financial year is 426,536 units;
therefore, the minimum value has not been reached. This means
that the target achievement factor for this component is 0.
Targets set and extent of achievement – BEV sales
Extent to which target achieved
BEV sales in units
Extent to which target achieved: 0%
460,000
Minimum value
547,000
Target value
630,000
Maximum value
200%
100%
150%
50%
0%
180%
Actual value 2024
426,536
394
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II. Remuneration of the Members of the Board of Management
The following tables provide an overview of the targets set and
extent of achievement for share-based remuneration for the
2024 financial year.
Targets set and extent of achievement for share-based remuneration for financial year 2024
Performance criteria
Weighting
(in %) Minimum value
Target value Maximum value
Actual value
Extent to which
target achieved
Factor
RoCE component
RoCE in the Automotive
segment (in %)
50
12
17
22
11.4
0%
0.00
Strategic focus target
component
Reduction of fleet
CO2 emissions (in g/km)
25
125
101
97
99.5
130%
1.30
Sales of allelectric vehicles
(BEV) in units
25
460,000
547,000
630,000
426,536
0%
0.00
Overview of share-based remuneration for financial year 2024
RoCE component
Strategic focus target component (CO2)
Strategic focus target component (BEV)
Strategic
focus targets
total
Total
Member of the Board of Management
Proportionate
target amount
in €
RoCE factor
RoCE
component
in €
Proportionate
target amount
in €
Strategic
focus target
factor
(CO2)
Strategic
focus target
component CO2
in €
Proportionate
target amount
in €
Strategic focus
target factor
(BEV)
Strategic
focus target
component
BEV in €
in €
Personal cash
investment
amount
in €
Oliver Zipse
1,175,000
0.00
–
587,500
1.30
763,750
587,500
0.00
–
763,750
763,750
Jochen Goller
550,000
–
275,000
357,500
275,000
–
357,500
357,500
Ilka Horstmeier
640,000
–
320,000
416,000
320,000
–
416,000
416,000
Walter Mertl
550,000
–
275,000
357,500
275,000
–
357,500
357,500
Milan Nedeljković
640,000
–
320,000
416,000
320,000
–
416,000
416,000
Joachim Post
550,000
–
275,000
357,500
275,000
–
357,500
357,500
Frank Weber
640,000
–
320,000
416,000
320,000
–
416,000
416,000
395
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II. Remuneration of the Members of the Board of Management
5.
Share ownership guideline
The members of the Board of Management in office as at 31 De-
cember 2024 hold a total of 164,474 shares of BMW common
stock which they are required to hold in accordance with the
terms of the share-based remuneration programmes for the fi-
nancial years 2020–2023. The four-year holding period re-
mains in effect even if the member leaves the Board of Manage-
ment.
The share-based remuneration (personal cash investment
amount) for vesting year 2023 was disbursed after the Annual
General Meeting in 2024. The aforementioned members of the
Board of Management acquired a total of 60,157 shares of
BMW common stock immediately thereafter which must be held
until 2028. The share-based remuneration (personal cash in-
vestment amount) for vesting year 2024 will be paid as part of
the next payroll run after the Annual General Meeting in 2025.
The shares of BMW common stock will be acquired immediately
thereafter and must be held until 2029.
The value of the shares of common stock in BMW held by the
members of the Board of Management in office as at 31 Decem-
ber 2024 came to 227% for the Chairman of the Board of Man-
agement and up to 225% for the other members of the Board of
Management of the respective base salary for the 2024 financial
year 3,4.
Pursuant to Article 19 of the Market Abuse Regulation (EU)
No. 569/2014 (Managers’ transactions), any purchase or sale
of shares in BMW AG and related financial instruments by mem-
bers of the Board of Management must be reported, even after
the minimum holding period has expired. No member of the
Board of Management reported a sale of BMW AG shares or re-
lated financial instruments in the 2024 financial year.
Shares of BMW common stock subject to holding requirements in connection with share-based remuneration for
financial years 2020–20231
Share portfolio with
holding period as at
1 January 2024
Additions in the
financial year 2024²
End of the holding period
in the financial year 2024
Share portfolio with
holding period as at
31 December 2024
Value in € as at
31 December 2024³
Relation value in €/
base salary 2024 in %⁴
Oliver Zipse
45,868
16,890
6,696
56,062
4,427,777
227%
Jochen Goller
–
1,414
–
1,414
111,678
12%
Ilka Horstmeier
20,682
9,876
782
29,776
2,351,708
224%
Walter Mertl
–
5,013
–
5,013
395,927
44%
Milan Nedeljković
21,172
9,876
1,174
29,874
2,359,449
225%
Joachim Post
6,686
7,906
–
14,592
1,152,476
128%
Frank Weber
18,561
9,182
–
27,743
2,191,142
209%
Total
112,969
60,157
8,652
164,474
12,990,157
1 Includes only shares of BMW common stock acquired using the share-based remuneration programme for members of the Board of Management, for which the four-year holding period has not yet
expired.
2 Payment of the 2023 personal cash investment amount in May 2024 with subsequent acquisition of reported shares of BMW common stock (purchase date: 31 May 2024; purchase price: € 92.74).
3 Last trading day of 2024: 30 December 2024. XETRA closing price on 30 December 2024: € 78.98.
4 Value of share portfolio as at 31 December 2024 in relation to base salary paid in 2024. For more information about the base salary, please refer to ↗ Remuneration granted and owed to members of the
Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
396
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II. Remuneration of the Members of the Board of Management
6.
Retirement benefits
The retirement benefits system provides for the Company to
make annual contributions to a savings account for every year
that members of the Board of Management are appointed in of-
fice. Former members of the Board of Management are entitled
to retirement benefits at the earliest upon reaching the age of 62
and after leaving the Board; pension entitlements become
vested when the employment relationship has existed for one
year. The payment is made as a lump sum or in annual instal-
ments at the discretion of the member of the Board of Manage-
ment.* This amount paid out is in turn based on the annual con-
tributions and annual profit participation depending on the form
of investment. There is a guaranteed minimum interest rate on
the contributions made. Members of the Board of Management
whose employment relationship ends due to invalidity receive an
incapacity pension. If a member of the Board of Management
entitled to benefits dies before the occurrence of the insured
event, their surviving spouse or registered partner is entitled to a
survivor’s benefit; otherwise, surviving children are entitled to a
survivor’s benefit depending on their age and level of education.
The amount of the benefits paid in the event of death or invalidity
is determined on the basis of the amount accrued in each Board
member’s individual pension savings account.
Members of the Board of Management who retire immediately
after their service on the Board, or who are deemed to be in an
equivalent position, are entitled to use BMW Group vehicles.
Pension entitlements 2024
in €
Service cost in accordance
with IFRS for the
financial year 2024
Cash value of entitlements
to pension benefits
in accordance with IFRS
as at 31 December 2024
Oliver Zipse
711,077
6,946,128
Jochen Goller
406,330
2,639,148
Ilka Horstmeier
406,415
3,493,888
Walter Mertl
407,218
1,341,528
Milan Nedeljković
406,340
4,031,624
Joachim Post
407,167
1,758,065
Frank Weber
406,360
2,465,547
Total
3,150,907
22,675,928
7.
Malus and clawback provisions
The remuneration system provides for the possibility of withhold-
ing variable remuneration (malus) and reclaiming variable remu-
neration already paid out (clawback) under certain conditions.
The rules allow the Supervisory Board to withhold or reclaim var-
iable remuneration in the event of certain serious compliance-re-
lated violations (compliance malus and/or compliance claw-
back). These provisions can also be applied where variable re-
muneration components linked to the achievement of certain tar-
gets have been paid out on the basis of incorrect calculation ba-
ses or incorrect financial statements. Remuneration can also be
withheld or reclaimed after an individual’s departure from the
Board of Management.
The Supervisory Board has not identified any reason to withhold
or reclaim variable remuneration components in the 2024 finan-
cial year.
8.
Premature termination of activities and post-contractual
non-competition clause
Board of Management service contracts provide for severance
pay to be paid to the Board member in the event of premature
termination by the Company without due cause, the amount of
which is limited to a maximum of two years’ remuneration (sev-
erance payment cap). The member will not be compensated for
more than the remaining term of the service contract. If the re-
maining term of the contract is less than two years, the sever-
ance payment is reduced proportionately. The annual remuner-
ation paid generally includes the base salary, the target amount
of the bonus and target amount of the personal cash investment
amount, unless the relevant target amount was not achieved in
the previous year. In this case, the bonus that was actually
granted or the personal cash investment amount that was actu-
ally disbursed is used as a basis.
There are no specific severance arrangements covering early
termination of a Board member’s mandate due to a change of
control or in connection with a takeover offer.
In the event of death or invalidity, special rules apply for waiving
the holding period for shares of common stock that were ac-
quired with share-based remuneration components. Where the
service contract is terminated prematurely and the Company has
a right of termination for cause or if the Board member resigns
without the Company’s agreement, entitlements to matching
components as yet unpaid are forfeited. Entitlements to other
variable remuneration components (bonus, personal cash in-
vestment amount) are forfeited as soon as they exceed the target
amounts.
A one-year post-contractual non-competition clause has been
agreed with the Board members under specified circumstances
against payment of a remuneration amount. Service contracts
provide for the payment of a monthly waiting allowance in the
amount of the applicable monthly base salary for the duration of
the post-contractual non-competition clause. In accordance with
Recommendation G.13 of the GCGC, any severance payment is
offset against the waiting allowance. This also regularly applies
to other income from third parties. The Company may unilaterally
waive the requirement to comply with the post-contractual non-
competition clause.
* For commitments made prior to 2016, members may choose to receive their retirement benefits
upon reaching the age of 60, to have them paid out as a pension, or to opt for hybrid forms.
397
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
9.
Remuneration granted and owed to members of the
Board of Management pursuant to § 162 of the German Stock
Corporation Act (AktG)
The following tables ↗ Remuneration granted and owed show the re-
muneration granted and owed to the members of the Board of
Management in office during the reporting year in accordance
with § 162 AktG.
The tables include all amounts received by the individual mem-
bers of the Board of Management in the reporting period (“remu-
neration granted”) and all remuneration legally due but not yet
received (“remuneration owed”).
In addition to actual amounts received, “remuneration granted”
in the reporting year is also assumed to exist if the activity on
which the remuneration component is based has been fully per-
formed by the member of the Board of Management as of the
balance sheet date, and if all conditions for entitlement have
been met.
Thus, in addition to the fixed remuneration components, the fol-
lowing variable remuneration components are reported as remu-
neration granted for the 2024 financial year within the meaning
of § 162 AktG:
—
Bonus for the 2024 financial year (to be paid out in 2025),
—
Share-based remuneration (personal cash investment
amount) for the 2024 financial year (to be paid out in 2025),
—
Share-based remuneration component (matching compo-
nent) for the vesting year 2019, due to the expiry of the four-
year holding period in the financial year 2024 (paid out in
2024).
Thus, the remuneration granted and owed includes all remuner-
ation components earned through the activities of the members
of the Board of Management in the 2024 financial year. In addi-
tion, it includes remuneration components already earned as a
result of activity in previous financial years, but for which the re-
spective member of the Board of Management’s payment enti-
tlement only arose due to the occurrence of conditions in the
2024 financial year.
In addition to the absolute amount of remuneration, the relative
share of the relevant remuneration component in the total remu-
neration granted and owed is also shown. The individual service
cost under IAS 19 for the company pension scheme is also
shown, although this service cost is not classified as granted or
owed remuneration within the meaning of § 162 AktG.
398
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Overview of remuneration granted and owed in 2024 financial year with payout profile1
1 Simplified depiction.
2 Payment of 2019 cash remuneration component (investment component) in 2020, immediately following the acquisition of shares of BMW common stock subject to holding requirements for 2020–
2024.
a) Variable remuneration for the 2024 financial year
The variable remuneration for the 2024 financial year and the
extent to which targets were achieved are set out above in
↗ Variable remuneration for the 2024 financial year.
b) Share-based remuneration component (matching component)
2019
Share-based remuneration components have been included in
the remuneration of members of the BMW AG Board of Manage-
ment since 2011. In the 2024 financial year, the matching com-
ponent of the share-based remuneration for vesting year 2019
was paid out. Under the share-based remuneration programme
for financial year 2019, the members of the Board of Manage-
ment in office in 2019 received an amount equal to 45% of the
gross bonus in effect at the time as additional cash remuneration
from the Company for financial year 2019 (the investment com-
ponent), which they were each required to invest in shares of the
Company’s common stock after taking taxes and deductions into
account. Under a matching plan, the member of the Board of
Management receives from the Company – at the Company’s
discretion – either one additional share of common stock or the
equivalent
in
cash
(share-based
remuneration
compo-
nent/matching component) for every three shares of common
stock held after the four-year holding period expires. The invest-
ment component for financial year 2019 was paid out immedi-
ately after the 2020 Annual General Meeting on 14 May 2020,
and the shares of common stock were acquired on 15 May 2020
at a price of € 46.17. The holding period for the shares of
common stock acquired in 2020 expired on 14 May 2024. The
Company settled the matching component in cash based on a
reference price of € 103.35. A matching component will be paid
for the last time in 2025 for shares of common stuck purchased
in May 2021 with the investment component for the 2020 finan-
cial year.
c) Presentation of remuneration granted and owed
The following tables show the remuneration granted and owed
to the members of the Board of Management in office during the
reporting year.
2023
2019
2020
2021
2022
2025
2029
Four-year holding period for
acquired BMW AG shares
Share-based remuneration 20192
Four-year holding period for acquired BMW AG shares
End of the holding period and payout of matching component 2019
Payout personal cash invest-
ment amount 2024 after the
Annual General Meeting 2025,
Aquisition of BMW AG shares
Payout bonus 2024 after
the Annual General Meeting
2025
Basic remuneration and fringe benefits
Contribution to company pension scheme
14th May
2024
Bonus 2024
Personal cash investment amount 2024
399
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
OLIVER ZIPSE
Chairman of the Board of Management since 16 August 2019
Member of the Board of Management since 13 May 2015
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
1,950,000
–
39
1,950,000
–
24
Fringe benefits (other remuneration)
27,963
–
1
26,113
–
0.3
Total
1,977,963
40
1,976,113
24
Variable
remuneration
B O N U S
Earnings component of bonus
954,450
–
19
1,764,000
–
22
Performance component of bonus
1,050,000
–
21
1,081,500
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
230,6771
5
–
135,416
2
Personal cash investment amount2
RoCE component
–
–
–
1,962,250
–
24
Strategic focus target component
763,750
–
15
1,239,625
–
15
Total variable remuneration for vesting year 2024 or earlier vesting years
2,768,200
230,677
56 or 5
6,047,375
135,416
74 or 2
Total
2,998,877
60
6,182,791
76
Remuneration for vesting year 2024 or earlier vesting years
4,746,163
230,677
95 or 5
8,023,488
135,416
98 or 2
Total remuneration according to § 162 German Stock Corporation Act (AktG)
4,976,840
100
8,158,904
100
Service cost3
711,077
712,729
Total remuneration plus service cost4
5,687,917
8,871,633
1 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) for the financial year amounted to 6,696. The number of mathematical matching shares for calculating the cash equivalent amounts to 2,232.
2 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
4 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
400
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
JOCHEN GOLLER
Customer, Brands, Sales
since 1 November 2023
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
900,000
–
41
150,000
–
24
Fringe benefits (other remuneration)
22,541
–
1
3,331
–
1
Total
922,541
42
153,331
25
Variable
remuneration
B O N U S
Earnings component of bonus
431,775
–
20
133,000
–
22
Performance component of bonus
470,250
–
22
80,750
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
–
–
–
–
–
Personal cash investment amount1
RoCE component
–
–
–
153,083
–
25
Strategic focus target component
357,500
–
16
96,708
–
16
Total variable remuneration for vesting year 2024 or earlier vesting years
1,259,525
–
58 or 0
463,541
–
75 or 0
Total
1,259,525
58
463,541
75
Remuneration for vesting year 2024 or earlier vesting years
2,182,066
–
100 or 0
616,872
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,182,066
100
616,872
100
Service cost2
406,330
66,667
Total remuneration plus service cost3
2,588,396
683,539
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
3 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
401
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
ILKA HORSTMEIER
Human Resources and Real Estate, Labour Director
since 1 November 2019
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
–
40
1,050,000
–
24
Fringe benefits (other remuneration)
65,693
–
2
66,981
–
2
Total
1,115,693
42
1,116,981
25
Variable
remuneration
B O N U S
Earnings component of bonus
522,675
–
20
966,000
–
22
Performance component of bonus
569,250
–
21
586,500
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
26,8711
1
–
–
–
Personal cash investment amount2
RoCE component
–
–
–
1,068,800
–
24
Strategic focus target component
416,000
–
16
675,200
–
15
Total variable remuneration for vesting year 2024 or earlier vesting years
1,507,925
26,871
57 or 1
3,296,500
–
75 or 0
Total
1,534,796
58
3,296,500
75
Remuneration for vesting year 2024 or earlier vesting years
2,623,618
26,871
99 or 1
4,413,481
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,650,489
100
4,413,481
100
Service cost3
406,415
407,533
Total remuneration plus service cost4
3,056,904
4,821,014
1 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) for the financial year amounted to 782. The number of mathematical matching shares for calculating the cash equivalent amounts to 260.
2 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
4 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
402
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
WALTER MERTL
Finance
since 12 May 2023
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
900,000
–
41
570,652
–
23
Fringe benefits (other remuneration)
27,273
–
1
111,981
–
5
Total
927,273
42
682,633
28
Variable
remuneration
B O N U S
Earnings component of bonus
431,775
–
20
505,978
–
21
Performance component of bonus
470,250
–
22
307,201
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
–
–
–
–
–
Personal cash investment amount1
RoCE component
–
–
–
582,382
–
24
Strategic focus target component
357,500
–
16
367,912
–
15
Total variable remuneration for vesting year 2024 or earlier vesting years
1,259,525
–
58 or 0
1,763,473
–
72 or 0
Total
1,259,525
58
1,763,473
72
Remuneration for vesting year 2024 or earlier vesting years
2,186,798
–
100 or 0
2,446,106
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,186,798
100
2,446,106
100
Service cost2
407,218
254,444
Total remuneration plus service cost3
2,594,016
2,700,550
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
3 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
403
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
MILAN NEDELJKOVIĆ
Production
since 1 October 2019
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
–
40
1,050,000
–
24
Fringe benefits (other remuneration)
32,312
–
1
27,524
–
1
Total
1,082,312
41
1,077,524
25
Variable
remuneration
B O N U S
Earnings component of bonus
522,675
–
20
966,000
–
22
Performance component of bonus
569,250
–
22
586,500
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
40,4101
2
–
–
–
Personal cash investment amount2
RoCE component
–
–
–
1,068,800
–
24
Strategic focus target component
416,000
–
16
675,200
–
15
Total variable remuneration for vesting year 2024 or earlier vesting years
1,507,925
40,410
57 or 2
3,296,500
–
75 or 0
Total
1,548,335
59
3,296,500
75
Remuneration for vesting year 2024 or earlier vesting years
2,590,237
40,410
98 or 2
4,374,024
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,630,647
100
4,374,024
100
Service cost3
406,340
407,391
Total remuneration plus service cost4
3,036,987
4,781,415
1 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) for the financial year amounted to 1,174. The number of mathematical matching shares for calculating the cash equivalent amounts to 391.
2 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
4 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
404
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
JOACHIM POST
Purchasing and Supplier Network
since 1 January 2022
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
900,000
–
41
900,000
–
24
Fringe benefits (other remuneration)
29,124
–
1
22,692
–
1
Total
929,124
42
922,692
25
Variable
remuneration
B O N U S
Earnings component of bonus
431,775
–
20
798,000
–
22
Performance component of bonus
470,250
–
21
484,500
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
–
–
–
–
–
Personal cash investment amount1
RoCE component
–
–
–
918,500
–
25
Strategic focus target component
357,500
–
16
580,250
–
16
Total variable remuneration for vesting year 2024 or earlier vesting years
1,259,525
–
58 or 0
2,781,250
–
75 or 0
Total
1,259,525
58
2,781,250
75
Remuneration for vesting year 2024 or earlier vesting years
2,188,649
–
100 or 0
3,703,942
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,188,649
100
3,703,942
100
Service cost2
407,167
408,504
Total remuneration plus service cost3
2,595,816
4,112,446
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
3 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
405
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed in financial year 2024 (2023)
FRANK WEBER
Development
since 1 July 2020
FY 2024
FY 2023
Vesting year 2024
in €
Earlier vesting years
in €
as a % of
total remuneration
Vesting year 2023
in €
Earlier vesting years
in €
as a % of
total remuneration
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
–
41
975,000
–
24
Fringe benefits (other remuneration)
31,031
–
1
29,392
–
1
Total
1,081,031
42
1,004,392
25
Variable
remuneration
B O N U S
Earnings component of bonus
522,675
–
20
882,000
–
22
Performance component of bonus
569,250
–
22
535,500
–
13
S H A R E - B A S E D R E M U N E R A T I O N
Share-based remuneration component (matching component)
–
–
–
–
–
–
Personal cash investment amount1
RoCE component
–
–
–
993,650
–
25
Strategic focus target component
416,000
–
16
627,725
–
16
Total variable remuneration for vesting year 2024 or earlier vesting years
1,507,925
–
58 or 0
3,038,875
–
75 or 0
Total
1,507,925
58
3,038,875
75
Remuneration for vesting year 2024 or earlier vesting years
2,588,956
–
100 or 0
4,043,267
–
100 or 0
Total remuneration according to § 162 German Stock Corporation Act (AktG)
2,588,956
100
4,043,267
100
Service cost2
406,360
407,525
Total remuneration plus service cost3
2,995,316
4,450,792
1 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
2 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
3 For the purposes of compliance with the maximum specified remuneration limit, only the service cost and the remuneration for the vesting year are to be taken into account. See table ↗ Maximum remuneration and remuneration vested in the 2024 financial year (vesting year).
10. Remuneration granted and owed to former members of the
Board of Management pursuant to § 162 of the German Stock
Corporation Act (AktG)
The following tables show the fixed and variable remuneration
granted and owed in the past financial year to former members
of the Board of Management who stepped down from the Board
of Management after 31 December 2014 in accordance with
§ 162 AktG. In accordance with § 162 (5) AktG, individual fig-
ures are not shown for former members of the Board of
Management who stepped down from the Board of Manage-
ment prior to this date.
Mr Nota stepped down from the Board of Management on
31 October 2023 by mutual agreement. His contract of employ-
ment ended on 31 July 2024. It was agreed that the target
achievement for the Board of Management for the 2024 finan-
cial year should not exceed a factor of 1.0 for the purpose of de-
termining the variable remuneration for the 2024 financial year
(vesting year). ↗ Variable remuneration for the 2024 financial year
The remuneration granted and owed to individual former mem-
bers of the Board of Management also includes the share-based
remuneration component (matching component) for 2019. In
this regard, please refer to the statements on remuneration
granted and owed for the active members of the Board of Man-
agement ↗ Share-based remuneration component (matching component)
2019.
406
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Remuneration granted and owed to former members of the Board of Management in financial year 2024
Financial year 2024
Earlier vesting years
Fixed remuneration1
Variable remuneration
Waiting allowance
Retirement benefits
Variable remuneration
in €
as a % of
total
remuneration
in €
as a % of
total
remuneration
in €
as a % of
total
remuneration
in €
as a % of
total
remuneration
Share-based
remuneration component
(matching component) in €
as a % of
total
remuneration
Total
remuneration
2024
as a % of
total
remuneration
MILAGROS CAIÑA CARREIRO-ANDREE
Member of the Board of Management until 31 October 2019
32,370
15
–
–
–
–
–
–
190,2674
85
222,637
100
KLAUS DRAEGER
Member of the Board of Management until 30 September 2016
28,436
9
–
–
–
–
288,468
91
–
–
316,904
100
FRIEDRICH EICHINER
Member of the Board of Management until 31 December 2016
24,155
8
–
–
–
–
280,991
92
–
–
305,146
100
KLAUS FRÖHLICH
Member of the Board of Management until 30 June 2020
19,169
5
–
–
–
–
187,445
49
177,2455
46
383,859
100
HARALD KRÜGER
Chairman of the Board of Management until 15 August 2019
19,619
6
–
–
–
–
–
–
337,0246
94
356,643
100
PIETER NOTA
Member of the Board of Management until 31 October 2023
664,0232
32 823,6243
39
437,500
21
–
–
161,7437
8
2,086,890
100
NICOLAS PETER
Member of the Board of Management until 11 May 2023
24,672
0.5
–
–
437,500
9 4,090,927
87
150,6848
3
4,703,783
100
NORBERT REITHOFER
Chairman of the
Board of Management until 13 May 2015
Chairman of the Supervisory Board since 13 May 2015
23,026
6
–
–
–
–
333,499
94
–
–
356,525
100
IAN ROBERTSON
Member of the Board of Management until 31 December 2017
21,600
10
–
–
–
–
196,827
90
–
–
218,427
100
PETER SCHWARZENBAUER
Member of the Board of Management until 31 October 2019
23,375
13
–
–
–
–
–
–
158,5399
87
181,914
100
ANDREAS WENDT
Member of the Board of Management until 31 December 2021
26,675
8
–
–
–
–
164,648
47
161,74310
46
353,066
100
1 With the exception of Mr Nota, the fixed remuneration for the former members of the Board of Management consists entirely of fringe benefits (other remuneration).
2 The fixed remuneration consists of the base salary of € 612,500 (29% of the total remuneration) and fringe benefits (other remuneration) of € 51,523 (2% of the total remuneration).
3 The variable remuneration for the 2024 financial year consists of the bonus and the share-based remuneration. The bonus of € 636,957 consists of earnings and performance components. The target amount is € 335,417 for each of the earnings and performance components. An earnings factor of 0.909
applies to the earnings component, which amounts to € 304,894 (15% of total remuneration). The performance factor of the member of the Board of Management responsible for Customer, Brands and Sales was 0.99; the performance component therefore amounts to € 332,063 (16% of total remunera-
tion). The share-based remuneration of € 186,667 comprises the RoCE component of € 0 (target amount of € 373,333, RoCE factor of 0; 0% of total remuneration) and the strategic focus targets component of € 186,667 (9% of total remuneration). The strategic focus targets component includes the
reduction of CO2 fleet emissions EU component in the amount of € 186,667 (target amount € 186,667, strategic focus target factor (CO2) of 1.00) and the sales of all-electric vehicles (BEV) component in the amount of € 0 (target amount of € 186,667, strategic focus target factor (BEV) of 0).
4 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 5,525. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,841.
5 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 5,147. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,715.
6 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 9,784. The number of mathematical matching shares for calculating the cash equivalent amounts to 3,261.
7 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 4,696. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,565.
8 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 4,374. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,458.
9 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 4,604. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,534.
10 The number of shares purchased in 2020 with the 2019 cash remuneration component (investment component) amounted to 4,696. The number of mathematical matching shares for calculating the cash equivalent amounts to 1,565.
407
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
11. Maximum remuneration and remuneration vested in the 2024
financial year (vesting year)
The Supervisory Board has capped the remuneration of the
Board of Management members for the financial year (vesting
year) 2024 in two respects: it has set maximum limits for all var-
iable remuneration components and has also determined a max-
imum limit for the total remuneration of each member of the
Board of Management. Both components of the bonus as well
as the two components of the share-based remuneration
(personal investment cash amount) are limited to a maximum of
180% of the respective target amounts.
The maximum remuneration of the Board of Management mem-
bers for the vesting year 2024 determined in accordance with §
87a (1) Sentence 2 No. 1 of the German Stock Corporation Act
(AktG) includes, as fixed components, the basic remuneration for
2024, other fixed remuneration for 2024, the service cost (in ac-
cordance with IAS 19) for 2024 and, as variable components,
the bonus and the share-based remuneration (personal invest-
ment cash amount) for the vesting year 2024. Any special pay-
ments to compensate for salary losses from a previous employ-
ment relationship and/or to cover relocation costs in the case of
new appointments are also subject to maximum remuneration.
The total fixed maximum remuneration is less than the sum of
the maximum amounts for the individual components.
Maximum remuneration and remuneration vested in the 2024 financial year (vesting year)
OLIVER ZIPSE
JOCHEN GOLLER
ILKA HORSTMEIER
WALTER MERTL
Chairman of the Board of Management
since 16 August 2019
Member of the Board of Management
since 13 May 2015
Customer, Brands, Sales
since 1 November 2023
Human Resources and Real Estate,
Labour Director
since 1 November 2019
Finance
since 12 May 2023
in €
Max. Remuneration vested
Max. Remuneration vested
Max. Remuneration vested
Max. Remuneration vested
Fixed
remuneration
Fixed remuneration (base salary)
1,950,000
1,950,000
900,000
900,000
1,050,000
1,050,000
900,000
900,000
Fringe benefits (other remuneration)¹
27,963
27,963
22,541
22,541
65,693
65,693
27,273
27,273
Total fixed remuneration
1,977,963
1,977,963
922,541
922,541
1,115,693
1,115,693
927,273
927,273
Variable
remuneration
B O N U S
Earnings component of the bonus
1,890,000
954,450
855,000
431,775
1,035,000
522,675
855,000
431,775
Performance component of the bonus
1,890,000
1,050,000
855,000
470,250
1,035,000
569,250
855,000
470,250
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) ²
RoCE component
2,115,000
–
990,000
–
1,152,000
–
990,000
–
Strategic focus target component
2,115,000
763,750
990,000
357,500
1,152,000
416,000
990,000
357,500
Total variable remuneration
8,010,000
2,768,200
3,690,000
1,259,525
4,374,000
1,507,925
3,690,000
1,259,525
Total fixed and variable remuneration
9,987,963
4,746,163
4,612,541
2,182,066
5,489,693
2,623,618
4,617,273
2,186,798
Service cost³
711,077
711,077
406,330
406,330
406,415
406,415
407,218
407,218
Maximum remuneration⁴/Vested remuneration incl.
service cost
9,850,000
5,457,240
4,925,000
2,588,396
5,500,000
3,030,033
4,925,000
2,594,016
1 For more information about fringe benefits for the 2024 financial year, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
2 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
4 Maximum remuneration within the meaning of § 87a (1) Sentence 2 No. 1 AktG. The overall cap is lower than the sum of the maximum amounts for the individual components. Any special payments to compensate for salary losses from a previous employment relationship and/or to cover relocation costs in
the case of new appointments are also subject to maximum remuneration.
408
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
II. Remuneration of the Members of the Board of Management
Maximum remuneration and remuneration vested in the 2024 financial year (vesting year)
MILAN NEDELJKOVIĆ
JOACHIM POST
FRANK WEBER
Production
since 1 October 2019
Purchasing and Supplier Network
since 1 January 2022
Development
since 1 July 2020
in €
Max. Remuneration vested
Max. Remuneration vested
Max. Remuneration vested
Fixed
remuneration
Fixed remuneration (base salary)
1,050,000
1,050,000
900,000
900,000
1,050,000
1,050,000
Fringe benefits (other remuneration)1
32,312
32,312
29,124
29,124
31,031
31,031
Total fixed remuneration
1,082,312
1,082,312
929,124
929,124
1,081,031
1,081,031
Variable
remuneration
B O N U S
Earnings component of the bonus
1,035,000
522,675
855,000
431,775
1,035,000
522,675
Performance component of the bonus
1,035,000
569,250
855,000
470,250
1,035,000
569,250
S H A R E - B A S E D R E M U N E R A T I O N
( P E R S O N A L C A S H I N V E S T M E N T A M O U N T ) 2
RoCE component
1,152,000
–
990,000
–
1,152,000
–
Strategic focus target component
1,152,000
416,000
990,000
357,500
1,152,000
416,000
Total variable remuneration
4,374,000
1,507,925
3,690,000
1,259,525
4,374,000
1,507,925
Total fixed and variable remuneration
5,456,312
2,590,237
4,619,124
2,188,649
5,455,031
2,588,956
Service cost3
406,340
406,340
407,167
407,167
406,360
406,360
Maximum remuneration4/Vested remuneration incl.
service cost
5,500,000
2,996,577
4,925,000
2,595,816
5,500,000
2,995,316
1 For more information about fringe benefits for the 2024 financial year, refer to ↗ Remuneration granted and owed to members of the Board of Management pursuant to § 162 of the German Stock Corporation Act (AktG).
2 Assessment period five years in total: One year for determining the personal cash investment amount, a four-year holding obligation for the shares acquired with the payout amount.
3 The service cost in accordance with IAS 19 represents the expense for the company; this amount is not paid out to the Board of Management member.
4 Maximum remuneration within the meaning of § 87a (1) Sentence 2 No. 1 AktG. The overall cap is lower than the sum of the maximum amounts for the individual components. Any special payments to compensate for salary losses from a previous
employment relationship and/or to cover relocation costs in the case of new appointments are also subject to maximum remuneration.
The maximum limits for each individual element of the variable
remuneration in the 2024 vesting year and the stipulated maxi-
mum remuneration limits were complied with in all cases.
The remuneration granted and owed for the 2024 financial year
pursuant to § 162 AktG ↗ Remuneration granted and owed in the financial
year includes the matching component of the share-based remu-
neration for the 2019 vesting year paid to the Board of Manage-
ment members who were already in office in the 2019 financial
year. This payment was made in May 2024, after the expiry of
the four-year shareholding period. This component is subject to
the overall cap set for the vesting year 2019, which was com-
plied with for the Board of Management members in office at that
time.
409
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
III. Remuneration of the Members of the Supervisory Board
III. REMUNERATION OF THE MEMBERS OF
THE SUPERVISORY BOARD
1.
Articles of incorporation and procedure
The regulation governing remuneration for the Supervisory
Board is set out in § 16 of the Articles of Incorporation, and spec-
ifies both the remuneration system to be used and the precise
framework for calculating the remuneration due to the members
of the Supervisory Board. The regulation was adopted by the An-
nual General Meeting on 14 May 2020 and confirmed on
12 May 2021 with a majority of 99.40% of the valid votes cast.
2.
Principles and elements of remuneration
The Supervisory Board remuneration is structured as a purely
fixed remuneration in line with suggestion G.18 of the GCGC.
Fixed remuneration strengthens the independence of the Super-
visory Board in advising and monitoring the Board of Manage-
ment. The structure and amount of the fixed remuneration are
intended to ensure that highly qualified individuals can be pro-
posed to the Annual General Meeting for membership of the Su-
pervisory Board. This promotes the quality of advice and over-
sight, which contributes to the Company’s sustainable and long-
term development.
In accordance with the Articles of Incorporation, each member of
the Supervisory Board of BMW AG who does not exercise an ad-
ditional function relevant to remuneration receives fixed remu-
neration of € 200,000 p.a.
In suggestion G.17, the GCGC recommends that the Chair and
Deputy Chair positions on the Supervisory Board, as well as the
Chair and membership of committees, should be given appropri-
ate consideration in terms of remuneration because of the
greater time commitment these positions entail. The Articles of
Incorporation of BMW AG also take account of the requirements
for the Audit Committee and its Chair. They stipulate that the
Chairman of the Supervisory Board shall receive three times the
amount, and each Deputy Chairman twice the amount, of remu-
neration paid to a Supervisory Board member who has no addi-
tional remuneration-relevant functions. The Chair of the Audit
Committee receives two-and-a-quarter times the amount, the
Chairs of other Supervisory Board committees twice the amount,
each member of the Audit Committee twice the amount, and
each member of another committee one-and-a-half times the
amount of the remuneration paid to a Supervisory Board mem-
ber, provided the relevant committee convened on at least three
days during the financial year. If a member of the Supervisory
Board exercises more than one of the functions referred to
above, their remuneration is measured only on the basis of the
function receiving the highest amount.
In the event of changes in the composition of the Supervisory
Board during the year, or if additional remuneration-relevant
functions are performed, remuneration is calculated on a pro rata
basis.
In addition, each member of the Supervisory Board receives an
attendance fee of € 2,000 per meeting for each meeting of the
Supervisory Board (plenary) in which he or she participates. This
also applies to participation by telephone or video link. If they at-
tend more than one meeting on the same day, the meetings are
not remunerated separately. A continuous session on two con-
secutive days is treated as one session.
The remuneration and the attendance fee are only paid after the
end of the respective financial year. Furthermore, the Company
reimburses each member of the Supervisory Board for their rea-
sonable expenses. In order to be able to perform his duties, the
Chairman of the Supervisory Board is provided with secretariat
and chauffeur services.
3.
Remuneration granted and owed to members of the
Supervisory Board pursuant to § 162 of the German Stock
Corporation Act (AktG)
The following table shows the remuneration granted and owed
to the members of the Supervisory Board in the 2024 financial
year in accordance with § 162 (1) Sentence 1 AktG. The activity
on which the remuneration for the 2024 financial year is based
was fully performed by the balance sheet date. Therefore, the re-
muneration for the Supervisory Board activities is classified as
granted for the 2024 financial year, even if the payment was
made after the end of the 2024 financial year.
Overview of remuneration of the members of the
Supervisory Board¹
Factor
Amount in € p.a.3
Member of Supervisory Board
1.00
200,000
Chairman Supervisory Board
3.00
600,000
Deputy Chairman Supervisory Board
2.00
400,000
Chairman of the Audit Committee2
2.25
450,000
Chairman of other committee2
2.00
400,000
Member of the Audit Committee2
2.00
400,000
Member of other committee2
1.50
300,000
1 If a Supervisory Board member performs more than one of the functions referred to above, their
remuneration is measured only on the basis of the function that is remunerated with the highest
amount.
2 Provided that the committee has met on at least three days during the financial year.
3 Plus an attendance fee of € 2,000 per plenary session.
410
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
III. Remuneration of the Members of the Supervisory Board
Remuneration granted and owed to Supervisory Board members in financial year 2024 (2023)
MEMBERS OF THE SUPERVISORY BOARD IN OFFICE AS AT 31 DECEMBER 2024
Financial year 2024
Financial year 2023
Fixed remuneration
Attendance fee
Total remuneration
Fixed remuneration
Attendance fee
Total remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
Norbert Reithofer (Chairman)
600,000
98
10,000
2
610,000
100
600,000
98
10,000
2
610,000
100
Dr. Martin Kimmich (Deputy Chairman)1
400,000
98
10,000
2
410,000
100
379,545
97
10,000
3
389,545
100
Stefan Quandt (Deputy Chairman)
400,000
98
10,000
2
410,000
100
400,000
98
10,000
2
410,000
100
Stefan Schmid (Deputy Chairman)1
400,000
98
10,000
2
410,000
100
400,000
98
10,000
2
410,000
100
Kurt Bock (Deputy Chairman,
Chairman of the Audit Committee)
450,000
98
10,000
2
460,000
100
450,000
98
10,000
2
460,000
100
Ulrich Bauer2
126,087
94
8,000
6
134,087
100
–
–
–
–
–
–
Marc Bitzer
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
Rachel Empey3
400,000
98
10,000
2
410,000
100
400,000
98
10,000
2
410,000
100
Heinrich Hiesinger
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
Susanne Klatten
200,000
95
10,000
5
210,000
100
200,000
96
8,000
4
208,000
100
Jens Köhler1
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
André Mandl1
200,000
96
8,000
4
208,000
100
200,000
95
10,000
5
210,000
100
Dominique Mohabeer1,3
400,000
98
10,000
2
410,000
100
400,000
98
10,000
2
410,000
100
Michael Nikolaides4
33,333
94
2,000
6
35,333
100
–
–
–
–
–
–
Horst Ott1,2
126,087
95
6,000
5
132,087
100
–
–
–
–
–
–
Anke Schäferkordt
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
Christoph M. Schmidt
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
Vishal Sikka
200,000
96
8,000
4
208,000
100
200,000
95
10,000
5
210,000
100
Sibylle Wankel1
200,000
95
10,000
5
210,000
100
200,000
95
10,000
5
210,000
100
Johanna Wenckebach1,2
126,087
94
8,000
6
134,087
100
–
–
–
–
–
–
Total acting members of the
Supervisory Board
5,261,594
97
180,000
3
5,441,594
100
4,829,545
97
158,000
3
4,987,545
100
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the Confederation of German Trade Unions.
2 Member of the Supervisory Board since 15 May 2024.
3 Member of the Audit Committee.
4 Member of the Supervisory Board since 1 November 2024.
411
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
III. Remuneration of the Members of the Supervisory Board /
IV. Comparison of Change in Remuneration and Earnings
Remuneration granted and owed to Supervisory Board members in financial year 2024 (2023)
FORMER MEMBERS OF THE SUPERVISORY BOARD
Financial year 2024
Financial year 2023
Fixed remuneration
Attendance fee
Total remuneration
Fixed remuneration
Attendance fee
Total remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
in €
as a % of total
remuneration
Christiane Benner1,2
74,638
97
2,000
3
76,638
100
200,000
95
10,000
5
210,000
100
Bernhard Ebner1,2
74,638
97
2,000
3
76,638
100
200,000
95
10,000
5
210,000
100
Johann Horn1,2
74,638
97
2,000
3
76,638
100
200,000
95
10,000
5
210,000
100
Gerhard Kurz3
166,667
97
6,000
3
172,667
100
200,000
95
10,000
5
210,000
100
Total former members
of the Supervisory Board
390,581
97
12,000
3
402,581
100
800,000
95
40,000
5
840,000
100
Total current and
former members of the
Supervisory Board
5,652,175
97
192,000
3
5,844,175
100
5,629,545
97
198,000
3
5,827,545
100
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the Confederation of German Trade Unions.
2 Member of the Supervisory Board until 15 May 2024.
3 Member of the Supervisory Board until 31 October 2024.
IV. COMPARISON OF CHANGE IN REMUNER-
ATION AND EARNINGS PURSUANT TO
§ 162 (1) SENTENCE 2 NO. 2 OF THE
GERMAN STOCK CORPORATION ACT
(AKTG)
Pursuant to § 162 (1) Sentence 2 No. 2 AktG, the following table
shows the change in earnings, the annual change in the remu-
neration of the members of the Board of Management and the
Supervisory Board, and the annual change in the average remu-
neration of the employees on a full-time equivalent basis over the
last five financial years.
For the members of the Board of Management and the Supervi-
sory Board, the remuneration granted and owed in the relevant
financial year is presented within the meaning of § 162 (1) Sen-
tence 1 AktG. The remuneration granted and owed to former
members of the Board of Management includes any variable re-
muneration from previous vesting years and any remuneration
from any contracts of employment that remained valid beyond
the end of their mandate, as well as retirement benefit plans
(pension payments, payments from the retirement capital ac-
count), fringe benefits and any waiting allowances paid.
The change in earnings is presented on the basis of BMW AG’s
net profit for the year in accordance with the German Commercial
Code (HGB). In addition, the changes in the key indicators “earn-
ings attributable to shareholders of BMW AG” and “Group return
on sales after tax” are reported, as these key indicators are rele-
vant for both the calculation of the variable remuneration of the
members of the Board of Management (earnings component of
the bonus) and the performance-related remuneration of man-
agers and employees.
The presentation of average employee remuneration is based on
the average remuneration of all employees of BMW AG on a full-
time equivalent basis. In the 2024 financial year, an average of
86,895 people were employed by BMW AG. Worldwide, the
BMW Group employed 159,104 people as at 31 Decem-
ber 2024. In order to calculate the average employee remuner-
ation presented, the principles applicable to the calculation of the
remuneration granted and owed to the members of the Board of
Management and the Supervisory Board pursuant to § 162 (1)
Sentence 1 AktG were applied accordingly.
412
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
IV. Comparison of Change in Remuneration and Earnings
Comparison of changes in earnings and remuneration for employees, the Board of Management and the Supervisory Board
2020
2021
Change
2021 vs 2020
in %
2022
Change
2022 vs 2021
in %
2023
Change
2023 vs 2022
in %
2024
Change
2024 vs 2023
in %
I . C H A N G E S I N E A R N I N G S
Net income of BMW AG according to the German Commercial Code (HGB) (in € million)
1,702
4,910
188%
6,311
29%
4,366
– 31%
3,524
– 19%
Profit attributable to shareholders of BMW AG (in € million)
3,775
12,382
228%
17,941
45%
11,290
– 37%
7,290
– 35%
Group return on sales after tax (in %)
3.9
11.2
187%
13.0
16%
7.8
– 40%
5.4
– 31%
I I . A V E R A G E R E M U N E R A T I O N O F E M P L O Y E E S I N €
Average remuneration of employees of BMW AG in €
86,715
99,169
14%
102,394
3%
102,047
0%
99,622
– 2%
I I I . R E M U N E R A T I O N O F T H E B O A R D O F M A N A G E M E N T I N € 1
Oliver Zipse2
since May 2015,
Chairman since 16 August 2019
5,338,865
8,752,558
64%
10,152,625
16%
8,158,904
– 20%
4,976,840
– 39%
Jochen Goller
since November 2023
–
–
–
–
–
616,872
–
2,182,066
254%
Ilka Horstmeier
since November 2019
2,043,706
3,949,908
93%
4,929,261
25%
4,413,481
– 10%
2,650,489
– 40%
Walter Mertl
since May 2023
–
–
–
–
–
2,446,106
–
2,186,798
– 11%
Milan Nedeljković
since October 2019
2,058,305
4,017,337
95%
4,964,449
24%
4,374,024
– 12%
2,630,647
– 40%
Joachim Post
since January 2022
–
–
–
3,736,259
–
3,703,942
– 1%
2,188,649
– 41%
Frank Weber
since July 2020
1,006,759
3,856,458
283%
4,240,977
10%
4,043,267
– 5%
2,588,956
– 36%
1 The reported remuneration for 2020 has been recalculated in accordance with § 162 German Stock Corporation Act (AktG).
2 For the 2020 financial year, the advance payment of € 712,000 from the 2019–2021 Performance Cash Plan which was paid in 2020 was also included in the calculation of remuneration.
413
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
IV. Comparison of Change in Remuneration and Earnings
Comparison of changes in earnings and remuneration for employees, the Board of Management and the Supervisory Board
Change
2021 vs 2020 in %
Change
2022 vs 2021 in %
Change
2023 vs 2022 in %
2024
Change
2024 vs 2023 in %
F O R M E R M E M B E R S O F T H E B O A R D O F M A N A G E M E N T I N € 1
Milagros Caiña Carreiro-Andree2,3
until October 2019
– 68%
– 1%
– 77%
222,637
23%
Klaus Draeger
until September 2016
2%
– 18%
1%
316,904
1%
Friedrich Eichiner
until December 2016
– 32%
– 25%
1%
305,146
1%
Klaus Fröhlich2
until June 2020
– 69%
24%
– 62%
383,859
11%
Harald Krüger4,5
until August 2019
– 64%
– 34%
– 70%
356,643
30%
Pieter Nota6,7
until Oktober 2023
75%
13%
– 17%
2,086,890
– 54%
Nicolas Peter6,8
until Mai 2023
55%
18%
– 55%
4,703,783
83%
Norbert Reithofer
until May 2015, since May 2015 Chairman of the Supervisory Board
1%
1%
– 1%
356,525
– 2%
Ian Robertson
until December 2017
7%
2%
– 31%
218,427
1%
Peter Schwarzenbauer6
until October 2019
149%
– 96%
50%
181,914
1%
Andreas Wendt
until December 2021
120%
– 54%
– 97%
353,066
444%
1 The reported remuneration for 2020 has been recalculated in accordance with § 162 German Stock Corporation Act (AktG).
2 For the 2020 financial year, the advance payment of € 600,000 from the 2019–2021 Performance Cash Plan which was paid in 2020 was also included in the calculation of remuneration.
3 Ms Caiña Carreiro-Andree’s contract of employment ended on 30 June 2020.
4 For the 2020 financial year, the advance payment of € 900,000 from the 2019–2021 Performance Cash Plan which was paid in 2020 was also included in the calculation of remuneration.
5 Mr Krüger’s employment contract ended on 30 April 2020.
6 For the 2020 financial year, the advance payment of € 500,000 from the 2019-2021 Performance Cash Plan which was paid in 2020 was also included in the calculation of remuneration.
7 Mr Nota’s employment contract ended on 31 July 2024.
8 Mr Peter’s employment contract ended on 31 May 2023.
414
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
IV. Comparison of Change in Remuneration and Earnings
Comparison of changes in earnings and remuneration for employees, the Board of Management and the Supervisory Board
2020
2021
Change
2021 vs 2020
in %
2022
Change
2022 vs 2021
in %
2023
Change
2023 vs 2022
in %
2024
Change
2024 vs 2023
in %
I V . R E M U N E R A T I O N O F T H E S U P E R V I S O R Y B O A R D I N €
Norbert Reithofer
since May 2015, Chairman
610,000
610,000
0%
610,000
0%
610,000
0%
610,000
0%
Martin Kimmich1
since January 2023, Deputy Chairman
–
–
–
–
–
389,545
–
410,000
5%
Stefan Quandt
since 1997, Deputy Chairman
410,000
410,000
0%
410,000
0%
410,000
0%
410,000
0%
Stefan Schmid1
since 2007, Deputy Chairman
410,000
410,000
0%
410,000
0%
410,000
0%
410,000
0%
Kurt Bock2
since May 2018, Deputy Chairman and
Chairman of the Audit Committee
367,930
460,000
25%
460,000
0%
460,000
0%
460,000
0%
Ulrich Bauer
since May 2024
–
–
–
–
–
–
–
134,087
–
Marc Bitzer
since May 2021
–
135,419
–
210,000
55%
210,000
0%
210,000
0%
Rachel Empey3
since May 2021
–
135,419
–
260,000
92%
410,000
58%
410,000
0%
Heinrich Hiesinger
since May 2017
210,000
210,000
0%
210,000
0%
210,000
0%
210,000
0%
Susanne Klatten
since May 1997
210,000
210,000
0%
210,000
0%
208,000
– 1%
210,000
1%
Jens Köhler1
since August 2021
–
86,258
–
210,000
143%
210,000
0%
210,000
0%
André Mandl1
since April 2022
–
–
–
156,333
–
210,000
34%
208,000
– 1%
Dominique Mohabeer1,3
since June 2012
210,000
210,000
0%
260,000
24%
410,000
58%
410,000
0%
Michael Nikolaides
since November 2024
–
–
–
–
–
–
–
35,333
–
Horst Ott1
since May 2024
–
–
–
–
–
–
–
132,087
–
Anke Schäferkordt
since May 2020
134,344
210,000
56%
210,000
0%
210,000
0%
210,000
0%
Christoph Schmidt
since May 2021
–
135,419
–
210,000
55%
210,000
0%
210,000
0%
Vishal Sikka
since May 2019
208,000
210,000
1%
210,000
0%
210,000
0%
208,000
– 1%
Sibylle Wankel1
since January 2022
–
–
–
208,387
–
210,000
1%
210,000
0%
Johanna Wenckebach1
since May 2024
–
–
–
–
–
–
–
134,087
–
F O R M E R M E M B E R S O F T H E S U P E R V I S O R Y B O A R D I N €
Christiane Benner1
since May 2014 until May 2024
210,000
210,000
0%
210,000
0%
210,000
0%
76,638
– 64%
Bernhard Ebner1
since October 2021 until May 2024
–
48,237
–
210,000
335%
210,000
0%
76,638
– 64%
Johann Horn1
since May 2021 until May 2024
–
132,344
–
210,000
59%
210,000
0%
76,638
– 64%
Gerhard Kurz
since July 2022 until May 2024
–
–
–
100,624
–
210,000
109%
172,667
– 18%
1 These employee representatives have declared that they will transfer their remuneration to the Hans Böckler Foundation in accordance with the guidelines of the Confederation of German Trade Unions.
2 Chairman of the Audit Committee since May 2020.
3 Member of the Audit Committee since October 2022.
415
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To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
V. Other Considerations / VI. Outlook for the 2025 Financial Year
V.
OTHER CONSIDERATIONS
BMW Group companies did not grant any loans to members of
the Board of Management or the Supervisory Board in the 2024
financial year, nor did they enter into any contingent liabilities in
their favour. In the reporting year, members of the Board of Man-
agement and the Supervisory Board concluded contracts with
BMW Group companies for the purchase of vehicles, other ser-
vices (including maintenance and repair work), vehicle leasing
and cash deposits at arm’s length conditions.
The Company maintains a financial loss liability insurance policy
for the members of the Board of Management and the Supervi-
sory Board. The insurance provides cover for legal liability claims
and protects the private assets of members of BMW AG’s Board
of Management and Supervisory Board if a claim is made
against them for financial loss in the course of exercising their
executive function. A deductible is provided for members of the
Board of Management that complies with the requirements of
the German Stock Corporation Act (AktG).
VI. OUTLOOK FOR THE
2025 FINANCIAL YEAR
The remuneration system for the Board of Management was ap-
proved and confirmed by the 2021 Annual General Meeting with
a majority of 91.60% of the valid votes cast and has been in ef-
fect since 1 January 2021. Experience since then has shown that
the system, and in particular its variable remuneration compo-
nents, have had the intended incentive effects. Under the current
system, the remuneration of the Board of Management ade-
quately reflects the performance of the Company in terms of fi-
nancial and non-financial objectives.
In view of the requirement to present the remuneration system
to the Annual General Meeting in 2025, the Supervisory Board
and, in its preparatory capacity, the relevant Committee con-
ducted a thorough review of the remuneration system for the
Board of Management in the past financial year. In its delibera-
tions, the Supervisory Board took into account not only statutory
requirements but also the recommendations of an independent
external remuneration consultant, as well as suggestions from
investor representatives, market practice and remuneration
within the Company.
At its meeting in December 2024, the Supervisory Board, acting
on the recommendation of the relevant Committee, resolved to
revise certain aspects of the existing system from the 2025 fi-
nancial year onwards subject to approval by the 2025 General
Meeting. Given that the existing remuneration system has
proven to be effective, no fundamental adjustments were re-
quired.
The main modifications to the remuneration system include:
—
The market conformity of the individual remuneration com-
ponents in relation to each other was examined. Conse-
quently, the ranges of the relevant remuneration compo-
nents in the total target remuneration were redefined. This
included increasing the share of share-based remuneration
in order to reinforce the long-term focus of the variable re-
muneration.
—
In order to emphasise the significance of profitability targets
within the scope of the bonus, the earnings component de-
pendent on financial targets was increased from 50% to
70% of the target bonus amount. The performance compo-
nent dependent on non-financial targets will in future make
up 30% of the target bonus. In addition, the structure of the
performance component was streamlined and the number
of performance criteria was reduced significantly. The per-
formance component continues to include targets related to
environmental, social and governance (ESG) criteria, ac-
counting for at least 50% of the target amount.
—
As in the previous system, most of the variable remunera-
tion is granted on a share basis. The Company awards a
personal cash investment amount, which is to be used to
acquire shares of BMW common stock and is subject to a
four-year holding period. One half of the personal cash in-
vestment amount will continue to be linked to the attainment
of an RoCE target for the Automotive segment and one half
to the attainment of strategic focus targets, which the Su-
pervisory Board sets in line with the corporate strategy and
long-term corporate planning. The Supervisory Board set
environmental targets as strategic focus objectives as early
as the 2021 financial year. In order to promote the imple-
mentation of the sustainability strategy, a minimum share of
20% of the target amount of the strategic focus target com-
ponent has now been firmly established in the system for
ESG-related objectives.
416
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
VI. Outlook for the 2025 Financial Year
—
In addition to the existing requirements to hold shares as
part of share-based remuneration, the Supervisory Board
can oblige the members of the Board of Management to ac-
quire and hold BMW shares of common stock by means of
a share ownership guideline. The Supervisory Board has
made use of this option for the members of the Board of
Management currently in office and agreed on a corre-
sponding contractual obligation. This stipulates that from
the 2025 financial year onwards, members of the Board of
Management will be obliged to invest 200% (Chairman of
the Board of Management) or 100% (members of the
Board of Management) of their base salary (gross) in BMW
shares of common stock and to hold these until they step
down from the Board of Management. This will strengthen
the long-term business focus of the Board of Management.
In addition to this amendment to the remuneration system for the
Board of Management, the Supervisory Board has resolved for
the first time in four years to increase target total remuneration
moderately from the 2025 financial year onwards. The maxi-
mum target achievement for the variable remuneration compo-
nents continues to be limited to 180%. The maximum remuner-
ation (overall caps within the meaning of § 87a (1) Sentence 2
No. 1 AktG) has not been increased.
The Supervisory Board will submit the revised remuneration sys-
tem for Board of Management remuneration to the 2025 Annual
General Meeting for approval. It will be explained in detail on the
Company website when the invitation to the Annual General
Meeting is issued.
In agreement with the members of the Board of Management
currently in office, their service contracts were amended, subject
to approval by the Annual General Meeting 2025, with effect
from 1 January 2025, in order to implement the amendments to
the remuneration system for financial years from 2025 onwards.
The Supervisory Board has also reviewed the previous system of
remuneration for members of the Supervisory Board and incor-
porated the advice of an independent external remuneration
consultant. This did not result in any amendments. The current
rules for remuneration of members of the Supervisory Board pur-
suant to § 16 of the Articles of Incorporation will therefore be
submitted unchanged to the 2025 Annual General Meeting for
confirmation.
Bayerische Motoren Werke Aktiengesellschaft
On behalf of the
Supervisory Board
On behalf of the
Board of Management
Dr.-Ing. Dr.-Ing. E.h.
Norbert Reithofer
Chairman of the
Supervisory Board
Oliver Zipse
Chairman of the
Board of Management
417
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
VII. Auditor‘s Report
VII. AUDITOR’S REPORT
To Bayerische Motoren Werke Aktiengesellschaft, München
We have audited the remuneration report of Fehler! Keine Doku-
mentvariable verfügbar., Fehler! Unbekannter Name für Doku-
ment-Eigenschaft., for the financial year from January , 2024 1
to December 31, 2024 including the related disclosures, which
was prepared to comply with § [Article] 162 AktG [Aktiengesetz:
German Stock Corporation Act].
Responsibilities of the Executive Directors and the
Supervisory Board
The executive directors and the supervisory board of Bayerische
Motoren Werke Aktiengesellschaft are responsible for the prep-
aration of the remuneration report, including the related disclo-
sures, that complies with the requirements of § 162 AktG. The
executive directors and the supervisory board are also responsi-
ble for such internal control as they determine is necessary to
enable the preparation of a remuneration report, including the re-
lated disclosures, that is free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibilities
Our responsibility is to express an opinion on this remuneration
report, including the related disclosures, based on our audit. We
conducted our audit in accordance with German generally ac-
cepted standards for the audit of financial statements promul-
gated by the Institut der Wirtschaftsprüfer (Institute of Public Au-
ditors in Germany) (IDW). Those standards require that we com-
ply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the remuneration
report, including the related disclosures, is free from material
misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts including the related disclosures stated in the
remuneration report. The procedures selected depend on the au-
ditor's judgment. This includes the assessment of the risks of
material misstatement of the remuneration report including the
related disclosures, whether due to fraud or error.
In making those risk assessments, the auditor considers internal
control relevant to the preparation of the remuneration report in-
cluding the related disclosures. The objective of this is to plan
and perform audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the
effectiveness of the company's internal control. An audit also in-
cludes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by
the executive directors and the supervisory board, as well as
evaluating the overall presentation of the remuneration report in-
cluding the related disclosures.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Audit Opinion
In our opinion, based on the findings of our audit, the remunera-
tion report for the financial year from January 1, 2024, to Decem-
ber 31, 2024, including the related disclosures, complies in all
material respects with the accounting provisions of § 162 AktG.
Reference to an Other Matter – Formal Audit of the
Remuneration Report according to § 162 AktG
The audit of the content of the remuneration report described in
this auditor's report includes the formal audit of the remuneration
report required by § 162 Abs. [paragraph] 3 AktG, including the
issuance of a report on this audit. As we express an unqualified
audit opinion on the content of the remuneration report, this audit
opinion includes that the information required by § 162 Abs. 1
and 2 AktG has been disclosed in all material respects in the re-
muneration report.
Restriction on use
We issue this auditor’s report on the basis of the engagement
agreed with Fehler! Keine Dokumentvariable verfügbar., Mün-
chen. The audit has been performed only for purposes of the
company and the auditor‘s report is solely intended to inform the
company as to the results of the audit. Our responsibility for the
audit and for our auditor’s report is only towards the company in
accordance with this engagement. The auditor’s report is not in-
tended for any third parties to base any (financial) decisions
thereon. We do not assume any responsibility, duty of care or li-
ability towards third parties; no third parties are included in the
scope of protection of the underlying engagement. § 334 BGB
[Bürgerliches Gesetzbuch: German Civil Code], according to
which objections arising from a contract may also be raised
against third parties, is not waived.
Munich, March 13, 2025
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
Ralf Räpple
Michael Popp
Wirtschaftsprüfer
Wirtschaftsprüfer
(German Public Auditor)
(German Public Auditor)
OTHER
INFORMATION
06
418
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
419
SASB Index
421
Consumption and Carbon Disclosures
425
BMW Group Ten-year Comparison
427
Glossary*
430
Financial Calender
431
Contacts
* Part of the Combined Management Report.
419
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
SASB-Index
Topic
Accounting metric
Category
Unit
Code
Notes
Activity metric
Number of vehicles manufactured
Quantitative
Number
TR-AU-000.A
↗ Production Network
Number of vehicles sold
Quantitative
Number
TR-AU-000.B
↗ Key Performance Indicators
↗ Automotive Segment
↗ Motorcycle Segment
Product safety
Percentage of vehicle models rated by
NCAP programmes with an overall 5-star
safety rating, by region
Quantitative
Percentage (%)
TR-AU-250a.1
↗ Safety concepts for BMW Group vehicles
Number of safety-related defect
complaints, percentage investigated
Quantitative
Number, Percentage
(%)
TR-AU-250a.2
↗ Safeguarding quality standards
Product safety
Number of vehicles recalled
Quantitative
Number
TR-AU-250a.3
↗ Safety concepts for BMW Group vehicles
Labour practices
Share of employees represented by a
trade union or falling under collective
agreements
Quantitative
Percentage (%)
TR-AU-310a.1
↗ Operational cooperation model
Labour practices
(1) Number of work stoppages
and
(2) total days idle
Quantitative
Number, days idle
TR-AU-310a.2
↗ Operational cooperation model
SASB INDEX
420
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
SASB-Index
Topic
Accounting Metric
Category
Unit
Code
Notes
Fuel economy and use-phase emissions
Sales-weighted average passenger fleet
fuel economy, by region
Quantitative
Mpg, l/km, g CO2/km,
km/l
TR-AU-410a.1
↗ Greenhouse gas emissions along the entire value chain
Number of (1) zero-emission vehicles
(ZEV), (2) hybrid vehicles and (3) plug-in
hybrid vehicles sold
Quantitative
Number
TR-AU-410a.2
↗ Automotive Segment
The BMW Group portfolio includes BEVs (1) and PHEVs (2).
Under the BMW Group definition, see Glossary ↗ Electrified
vehicles, 48 V vehicles are not counted as hybrid vehicles.
Fuel economy and use-phase emissions
Discussion of strategy for managing fleet
fuel economy and emissions risks and
opportunities
Discussion and analysis n / a
TR-AU-410a.3
↗ Climate resilience of the business model
↗ Implemented actions and metrics for a holistic CO2e reduction
Raw material sourcing
Description of the management of risks
associated with the use of critical
materials
Discussion and analysis n/a
TR-AU-440a.1
↗ Raw materials security and strategy
Materials efficiency and recycling
Total amount of waste from
manufacturing, percentage recycled
Quantitative
Metric tonnes (t),
Percentage (%)
TR-AU-440b.1
↗ Effective waste management
Weight of end-life material recovered,
percentage recycled
Quantitative
Metric tonnes (t),
Percentage (%)
TR-AU-440b.2
↗ Measures for the responsible use of resources
Average recyclability of vehicles sold
Quantitative
Percentage (%) by
sales-weighted metric
tonnes (t)
TR-AU-440b.3
↗ Measures for the responsible use of resources
421
BMW Group Report 2024
To Our Stakeholders
Combined Management Report
Group Financial Statements
Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Consumption and Carbon Disclosures
CONSUMPTION AND CARBON DISCLOSURES
As of February 2025
Figures based on WLTP
Model
Energy consumption combined or
weighted combined (PHEV)
CO₂ emissions
combined or
weighted combined
(PHEV)
Fuel consumption
combined at charge
sustaining
operation
CO2-class
in l/100km
in kWh/100km
in g/km
in l/100km
B M W
BMW i4 M50 xDrive Gran Coupé
21.9
0
A
BMW i5 M60 xDrive
19.5
0
A
BMW i5 eDrive40 Touring
18.6
0
A
BMW i5 xDrive40 Touring
19.5 – 19.4
0
A
BMW i5 M60 xDrive Touring
20.2 – 20.1
0
A
BMW iX1 eDrive20
17.3 – 16.7
0
A
BMW iX1 eDrive30
18.1 – 17.9
0
A
BMW iX2 eDrive20
16.9
0
A
BMW iX2 eDrive30
17.7 – 17.6
0
A
BMW iX xDrive45
21.8
0
A
BMW iX xDrive60
21.9
0
A
BMW iX M70 xDrive
23.5
0
A
BMW 530e Touring
0.9
22.5
21
7.5
B/F
BMW 530e xDrive Touring
1.0
23.8
22
7.9
B/G
BMW 550e xDrive Touring
1.1
23.8
25
8.5
B/G
BMW M5 Limousine
1.9
26.8
43
10.7
B/G
BMW M5 Touring
2.0
27.6
45
10.9
B/G
BMW X1 xDrive25e
1.1 – 0.8
19.3 – 17.7
24 – 19
6.8 – 6.2
B/E
BMW X1 xDrive30e
1.1 – 0.8
19.3 – 17.7
24 – 19
6.8 – 6.3
B/E
BMW X3 30e xDrive
1.1
24.0
26
7.9
B/G
BMW X5 xDrive50e
1.2 – 1.0
30.5 – 28.5
27 – 23
10.4 – 9.8
B/G
BMW XM50e
1.6
32.0
37
11.3
B/G
BMW XM
1.9
34.9
43
12.8
B/G
All type-approved BMW Group internal combustion engine vehi-
cles currently on sale in the EU comply with Euro 6d or Euro 6e
emissions standards. This also applies to countries with compa-
rable regulations, such as Switzerland, Norway, the UK and Ice-
land. The vehicles also comply with local emissions regulations
in the USA and China. Information on emissions in the WLTP cy-
cle and maximum RDE values can be found in the EU Certificate
of Conformity, as well as on the ACEA website and the compa-
ny's website.
The BMW Group is preparing for the introduction of the Euro 7
emissions standard. This standard was published in May 2024
and includes limits for brake particle emissions for the first time.
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Other Information
Consumption and Carbon Disclosures
As of February 2025
Figures based on WLTP
Model
Energy consumption combined or
weighted combined (PHEV)
CO₂ emissions
combined or
weighted combined
(PHEV)
Fuel consumption
combined at charge
sustaining
operation
CO2-class
in l/100km
in kWh/100km
in g/km
in l/100km
BMW XM Label
2.3
33.7
53
12.8
B/G
BMW 216 Gran Coupé
6.4
145
E
BMW 220 Gran Coupé
5.8
131
D
BMW 223 xDrive Gran Coupé
6.4 – 6.3
144
E
BMW M235 xDrive Gran Coupé
8.2
185
G
BMW 218d Gran Coupé
5.0
132
D
BMW 220d Gran Coupé
4.6
121
D
BMW Z4 sDrive20i
7.4 – 7.3
167 – 164
F
BMW Z4 sDrive30i
7.4
167
F
BMW Z4 M40i
8.7
197
G
BMW 520i Touring
6.7
153
E
BMW 520d Touring
5.9
154
D
BMW 520d xDrive Touring
6.2
163
F
BMW 540d xDrive Touring
6.5 – 6.5
171
F
BMW X1 sDrive18i
7.1 – 6.6
160 – 150
F/E
BMW X1 sDrive20i
6.4 – 5.9
144 – 134
E/D
BMW X1 xDrive23i
7.1 – 6.6
159 – 149
F/E
BMW X1 M35i xDrive
8.2 – 8.1
184
G
BMW X1 sDrive18d
5.6
147 – 146
E
BMW X1 sDrive20d
5.1 – 5.0
133 – 131
D
BMW X1 xDrive20d
5.3 – 5.0
140 – 130
E/D
BMW X1 xDrive23d
5.3 – 4.9
139 – 130
E/D
BMW X2 sDrive20i
6.2
141 – 140
E
BMW X2 M35i xDrive
8.2
186 – 185
G
BMW X2 sDrive18d
5.5
145 – 144
E
BMW X2 sDrive20d
5.0
132
D
BMW X2 xDrive20d
5.0
139
E/D
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Responsibility Statement and Auditor’s Report
Remuneration Report
Other Information
Consumption and Carbon Disclosures
As of February 2025
Figures based on WLTP
Model
Energy consumption combined or
weighted combined (PHEV)
CO₂ emissions
combined or
weighted combined
(PHEV)
Fuel consumption
combined at charge
sustaining
operation
CO2-class
in l/100km
in kWh/100km
in g/km
in l/100km
BMW X3 20 xDrive
7.5
169
F
BMW X3 M50 xDrive
8.3
189
G
BMW X3 20d xDrive
6.5
171
F
BMW X3 40d xDrive
6.7
177
G
BMW X5 xDrive40i
9.9 – 9.3
224 – 210
G
BMW X5 M60i xDrive
12.5
283
G
BMW X5 xDrive30d
8.2 – 7.8
215 – 204
G
BMW X5 xDrive40d
8.4 – 7.8
220 – 205
G
BMW X6 xDrive40i M Sport
9.5 – 8.9
215 – 201
G
BMW X6 M60i xDrive
12.3 – 11.7
278 – 264
G
BMW X6 xDrive30d M Sport
7.9 – 7.5
208 – 195
G
BMW X6 xDrive40d M Sport
8.0 – 7.5
211 – 197
G
BMW X7 xDrive40i
10.6
240
G
BMW X7 M60i xDrive
12.9
291
G
BMW X7 xDrive40d
8.8
231 – 230
G
BMW M2 Coupé
10.2 – 9.8
231 – 222
G
BMW M3 Limousine
10.1
230 – 229
G
BMW M3 Touring
10.4
235
G
BMW M4 Coupé
10.1 – 10.0
230 – 228
G
BMW M4 Competition Coupé
9.9 – 9.8
223 – 221
G
BMW M4 Competition Coupé with M xDrive
10.1
229 – 227
G
BMW M4 Competition Convertible with M xDrive
10.3
233 – 232
G
BMW M4 CS Coupé
10.2
232
G
M I N I
MINI Cooper E
14.3
0
A
MINI Cooper SE
14.7
0
A
MINI Countryman E
17.4
0
A
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Other Information
Consumption and Carbon Disclosures
As of February 2025
Figures based on WLTP
Model
Energy consumption combined or
weighted combined (PHEV)
CO₂ emissions
combined or
weighted combined
(PHEV)
Fuel consumption
combined at charge
sustaining
operation
CO2-class
in l/100km
in kWh/100km
in g/km
in l/100km
MINI Countryman SE ALL4
18.5
0
A
MINI Aceman E
14.6
0
A
MINI Aceman SE
14.7
0
A
MINI Cooper C
6.6
149
E
MINI Cooper S
6.8
152
E
MINI Cooper C Convertible
6.8
154
E
MINI Cooper S Convertible
6.9
156
E
MINI Countryman C
6.5
147
E
R O L L S - R O Y C E
Rolls-Royce Black Badge Spectre
23.6 – 22.2
0
A
Rolls-Royce Spectre
23.6 – 22.2
0
A
Rolls-Royce Black Badge Ghost Series II
15.8 – 15.4
359 – 348
G
Rolls-Royce Ghost Series II
15.7
357
G
Rolls-Royce Black Badge Cullinan Series II
16.8 – 16.0
380 – 362
G
Rolls-Royce Cullinan Series II
16.8 – 16.0
380 – 362
G
425
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Other Information
BMW Group Ten-Year Comparison
2024
2023
2022
2021
2020
2019¹
2018
2017
2016
2015
D E L I V E R I E S
Automobiles
units
2,450,854
2,554,183
2,399,632
2,521,514
2,325,179
2,537,504
2,486,149
2,465,021
2,349,962
2,259,733
Motorcycles
units
210,385
209,066
202,895
194,261
169,272
175,162
165,566
164,153
145,032
136,963
P R O D U C T I O N V O L U M E
Automobiles
units
2,513,830
2,661,922
2,382,305
2,461,269
2,255,637
2,564,025
2,541,534
2,505,741
2,359,756
2,279,503
Motorcycles
units
215,727
221,988
215,932
187,500
168,104
187,116
162,687
185,682
145,555
151,004
F I N A N C I A L S E R V I C E S
Contract portfolio
contracts
4,850,121
5,312,689
5,513,129
5,859,890
5,981,928
5,973,682
5,708,032
5,380,785
5,114,906
4,718,970
Business volume (based on balance sheet carrying amounts)
€ million
151,117
137,910
135,689
139,530
133,093
142,834
133,147
124,719
123,394
111,191
I N C O M E S T A T E M E N T
Revenues
€ million
142,380
155,498
142,610
111,239
98,990
104,210
96,855
98,282
94,163
92,175
Gross profit margin
%
16.1
19.1
17.2
19.8
13.7
17.3
19.0
20.3
19.9
19.7
Profit before financial result
€ million
11,509
18,482
13,999
13,400
4,830
7,411
8,933
9,899
9,386
9,593
Profit before tax
€ million
10,971
17,096
23,509
16,060
5,222
7,118
9,627
10,675
9,665
9,224
Return on sales (profit before tax/revenues)
%
7.7
11.0
16.5
14.4
5.3
6.8
9.9
10.9
10.3
10.0
Income taxes
€ million
3,293
4,931
4,927
3,597
1,365
2,140
2,530
2,000
2,755
2,828
Effective tax rate
%
30.0
28.8
21.0
22.4
26.1
30.1
26.3
18.7
28.5
30.7
Net profit for the year
€ million
7,678
12,165
18,582
12,463
3,857
5,022
7,064
8,675
6,910
6,396
BMW GROUP TEN-YEAR COMPARISON
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BMW Group Ten-Year Comparison
2024
2023
2022
2021
2020
2019¹
2018
2017
2016
2015
B A L A N C E S H E E T
Non-current assets
€ million
171,345
155,918
154,722
143,354
134,851
137,404
124,202
121,964
121,671
110,343
Current assets
€ million
96,387
94,972
92,204
86,173
81,807
90,630
84,736
73,542
66,864
61,831
Capital expenditure (excluding right-of-use-assets and
capitalised development costs)
€ million
8,142
7,563
6,075.0
4,391.0
3,593.0
4,791.0
5,029.0
4,688.0
3,731.0
3,826.0
Capital expenditure ratio (excluding right-of-use-assets and
capitalised development costs)
%
5.7
4.9
4.3
3.9
3.6
4.6
5.2
4.8
4.0
4.2
Equity
€ million
95,003
92,923
91,288
75,132
61,520
59,907
57,829
54,107
47,363
42,764
Equity ratio
%
35.5
37.0
37.0
32.7
28.4
26.3
27.7
27.7
25.1
24.8
Non-current provisions and liabilities
€ million
85,040
70,966
71,217
77,929
83,175
85,502
79,698
69,634
73,183
63,819
Current provisions and liabilities
€ million
87,689
87,001
84,421
76,466
71,963
82,625
71,411
71,765
67,989
65,591
Balance sheet total
€ million
267,732
250,890
246,926
229,527
216,658
228,034
208,938
195,506
188,535
172,174
C A S H F L O W S T A T E M E N T
Cash and cash equivalents at balance sheet date
€ million
19,287
17,327
16,870
16,009
13,537
12,036
10,979
9,039
7,880
6,122
Free cash flow Automotive segment
€ million
4,852
6,942
11,071
6,354
3,395
2,567
2,713
4,459
5,792
5,404
P E R S O N N E L
Employees at year-end2
159,104
154,950
149,475
118,909
120,726
126,016
134,682
129,932
124,729
122,244
Personnel cost per employee2
€
96,251
96,778
94,952
103,569
99,647
98,901
101,178
100,760
99,575
97,136
D I V I D E N D
Dividend total
€ million
2,6773
3,802
5,481
3,827
1,253
1,646
2,303
2,630
2,300
2,102
Dividend per share of common stock/preferred stock
€
4,30 / 4,323
6,00 / 6.02
8.50 / 8.52
5.80 / 5.82
1.90 / 1.92
2.50 / 2.52
3.5.00 / 3.52
4,00 / 4.02
3.50 / 3.52
3.20 / 3.22
1 The 2018 figures were adjusted due to the change in accounting policy in conjunction with the adoption of IFRS 16 (see Annual Report 2019, note 6 to the Group Financial Statements). In addition, prior year figures were adjusted due to changes in the presentation of selected items that are of minor
importance overall.
2 Until reporting year 2019, temporary staff, postgraduate students, interns, apprentices, and people on extended sick leave or on sabbatical were also included. To enable better comparability, the value for 2019 was adjusted accordingly (2019 before adjustment: 133,778 employees). For the timeframe
including and prior to 2018, the share of the employees that are no longer reflected in reporting is about 7.5-8.0%.
3 Proposal by management. The dividend total may change before the date of the Annual General Meeting due to the share buyback and a resulting change in the number of shares entitled to receive a dividend.
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Glossary
A
Asset-backed financing transactions
A form of corporate financing involving the sale of receivables to
a financing company.
B
Bond
A securitised debt instrument in which the issuer certifies its ob-
ligation to repay the nominal amount at the end of a fixed term
and to pay a fixed or variable rate of interest.
Business volume in balance sheet terms
The sum of the balance sheet line items “Leased products” and
“Receivables from sales financing” (current and non-current), as
reported in the balance sheet for the Financial Services segment.
C
Capitalisation rate
Capitalised development costs as a percentage of research and
development expenditure.
Capital expenditure ratio (excluding capitalised
development costs)
Investments in property, plant and equipment and other intangi-
ble assets (excluding capitalised development costs) as a per-
centage of Group revenues.
Capital expenditure ratio (excluding right-of-use assets and
excluding capitalised development costs)
Investments in property, plant and equipment (excluding right-
of-use assets in accordance with IFRS 16) and other intangible
assets (excluding capitalised development costs) as a percent-
age of Group revenues.
Cash flow at risk
Similar to “value at risk” (see definition below).
Cash flow hedges
Hedges against exposures to the variability in forecasted cash
flows, particularly in connection with exchange rate fluctuations.
Commercial paper
Deep-discounted bonds with a term of less than one year.
Consolidation
The process of consolidating separate financial statements of
Group entities into Group Financial Statements, depicting the fi-
nancial position, net assets and results of operations of the
Group as a single economic entity.
Credit default swap (CDS)
Financial swap agreements, under which creditors of securities
(usually bonds) pay premiums to the seller of the CDS to hedge
against the risk that the issuer of the bond will default. As with
credit default insurance agreements, the party receiving the pre-
miums gives a commitment to compensate the bond creditor in
the event of default.
D
Deliveries
A new or used vehicle will be recorded as a delivery once handed
over to the end user. End users also include leaseholders under
lease contracts with BMW Financial Services and – in the US and
Canada – dealerships when they designate a vehicle as a service
loaner or demonstrator vehicle. In the case of used vehicles, end
users may include dealerships and other third parties when they
purchase a vehicle at auction or directly from the BMW Group.
Vehicles designated for the end user which suffer a total loss in
transit are also recorded as deliveries. Deliveries may be made
by BMW AG, one of its international subsidiaries, a BMW Group
retail outlet, an agent, or independent dealerships. The vast ma-
jority of deliveries – and hence the reporting to BMW Group of
deliveries – are made by independent dealerships. In the US and
Canada, the period start and end dates for the reporting of deliv-
eries deviate immaterially from the beginning and, respectively,
end of calendar years or calendar quarters and instead follow in-
dustry-standard reporting calendars. In the German-language
version of the BMW Group Report, the terms “Auslieferungen”
(deliveries) and “Absatz” (sales) are used interchangeably.
* Part of the Combined Management Report.
GLOSSARY*
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Glossary
E
Earnings per share (EPS)
Basic earnings per share are calculated by dividing the earnings
attributable to the shareholders of BMW AG for ordinary and
preference shares by the average number of shares in each cat-
egory. Earnings per share of preferred stock are computed on the
basis of the number of preferred stock shares entitled to receive
a dividend in each of the relevant financial years.
Electricity from renewable sources
At its own locations, the BMW Group defines electricity from re-
newable sources as in-house generation (from renewable
sources), direct purchase (e.g., through power purchase agree-
ments (PPAs)) from renewable sources or so-called Energy At-
tribute Certificates (e.g., guarantees of origin).
In its supplier network, the BMW Group currently accepts in-
house generation, direct purchase (e.g., through power purchase
agreements (PPAs)), or from so-called Energy Attribute Certifi-
cates ((e.g., guarantees of origin).
EBIT
Earnings Before Interest and Taxes. This is comprised of reve-
nues less cost of sales, selling and administrative expenses and
the net amount of other operating income and expenses.
EBIT margin
Profit/loss before financial result as a percentage of revenues.
EBT
EBIT plus financial result.
Effective tax rate
The effective tax rate is calculated by dividing the income tax ex-
pense by the Group profit before tax.
Electrified vehicles
The BMW Group uses the terms battery electric vehicle (BEV) to
denote fully electric vehicles and plug-in hybrid vehicle (PHEV) to
denote vehicles that can be charged and also driven on a fully
electric basis.
Equity ratio
Equity capital as a percentage of the balance sheet total.
F
Fair value hedge
A hedge against exposures to fluctuations in the fair values of
balance sheet items.
Free cash flow (Automotive segment)
Free cash flow is derived from cash flows from operating and in-
vesting activities. The cash flows from investing activities from
the purchase and sale of marketable securities and investment
funds is not included. Cash flows from the purchase and sale of
shares and the dividend payout from investments accounted for
using the equity method are included in the cash flows from in-
vesting activities.
G
Goodwill
Acquired goodwill is considered an intangible asset. It corre-
sponds to the difference between the purchase price and the net
assets of the acquired business as measured at fair value.
Gross profit margin
Gross profit as a percentage of Group revenues.
L
Liquidity
Cash and cash equivalents as well as marketable securities and
investment funds.
O
Outlook
Unless specific ranges are specified, the BMW Group uses the
following terminology and ranges as a basis when forecasting
key performance indicators:
At previous year’s level
[– 0.9 %/+ 0.9 %]
Slight increase
[+ 1.0 %/+ 4.9 %]
Slight decrease/reduction
[– 1.0 %/– 4.9 %]
Solid increase
[+ 5.0 %/+ 9.9 %]
Moderate decrease/reduction
[– 5.0 %/– 9.9 %]
Significant increase
≥ + 10.0 %
Significant decrease/reduction
≤ – 10.0 %
Beginning with the 2025 financial year, only for the key perfor-
mance indicator group profit before tax the following ranges are
used:
At previous year’s level
[– 4.9 %/+ 4.9 %]
Slight increase
[+ 5.0 %/+ 9.9 %]
Slight decrease
[– 5.0 %/– 9.9 %]
Solid increase
[+ 10.0 %/+ 14.5 %]
Moderate decrease
[– 10.0 %/– 14.5 %]
Significant increase
≥ + 15.0 %
Significant decrease
≤ – 15.0 %
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Glossary
P
Payout ratio
Ratio of unappropriated profit of BMW AG in accordance with
HGB to profit attributable to shareholders of BMW AG, based on
the BMW Group’s net profit for the year under IFRS. Until the
2021 financial year, the payout ratio corresponded to the ratio of
unappropriated profit belonging to BMW AG in accordance with
HGB to the net profit for the year of the BMW Group in accord-
ance with IFRS.
Post-tax return on sales
Group net profit as a percentage of Group revenues.
Pre-tax return on sales
Group profit / loss before tax as a percentage of Group revenues.
R
Research and development expenditure
The sum of research and non-capitalised development costs and
investments in capitalised development costs not including the
associated scheduled amortisation.
Research and development expenditure ratio
Research and development expenditure as a percentage of
Group revenues.
Research and development locations
The engineering, IT and process expertise required for the (pre-)
development of hardware and software for all BMW Group prod-
ucts and services is combined at the Group’s international re-
search and development locations.
Return on capital employed (RoCE)
RoCE in the Automotive and Motorcycles segments is measured
on the basis of relevant segment profit before financial result and
the average amount of capital employed – at the end of the last
five quarters – in the segment concerned. Capital employed cor-
responds to the sum of intangible assets, property, plant and
equipment and net working capital, the latter comprising inven-
tories and trade receivables less trade payables.
Up to the financial year 2021, capital employed corresponds to
the sum of all current and non-current operational assets, less
liabilities that generally do not incur interest. The deductible cap-
ital consisted of capital shares that are available to the opera-
tional business, largely without interest.
Return on equity (RoE)
RoE in the Financial Services segment is calculated as segment
profit before taxes, divided by the average amount of equity cap-
ital – at the end of the last five quarters – attributable to the Fi-
nancial Services segment.
V
Value at risk
A measure of the potential maximum loss in value of an item dur-
ing a set time period, based on a specified probability.
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Financial Calendar
2025
14 March 2025
BMW Group Annual Conference
7 May 2025
Quarterly Statement to 31 March 2025
14 May 2025
Annual General Meeting
31 July 2025
Half-Year Report to 30 June 2025
5 November 2025
Quarterly Statement to 30 September 2025
Current information on events can be found on the Investor Relations website: ↗ www.bmwgroup.com/ir
FINANCIAL CALENDAR
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Contacts
BUSINESS AND FINANCE PRESS
Telephone
+ 49 89 382-2 45 44
+ 49 89 382-2 41 18
Fax
+ 49 89 382-2 44 18
Email
presse@bmwgroup.com
INVESTOR RELATIONS
Telephone
+ 49 89 382-2 53 87
Fax
+ 49 89 382-1 46 61
Email
ir@bmwgroup.com
THE BMW GROUP ON THE INTERNET
Further information about the BMW Group is
available online at:
↗ www.bmwgroup.com
Investor Relations information is available directly at:
↗ www.bmwgroup.com/ir
Information about the various BMW Group brands is available at:
↗ www.bmw.com
↗ www.mini.com
↗ www.rolls-roycemotorcars.com
↗ www.bmw-motorrad.com
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