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Summary
BMW almost doubled its EV output last year, but has made little progress since the 2023 Leaderboard on building a more equitable and sustainable supply chain. Its low fossil-free and environmentally sustainable score continues to be held back by inaction on steel and aluminum, as well as its unacceptable track record on climate lobbying – for which InfluenceMap gives it the second lowest score of the auto industry.
Key Findings
- Discloses and has set a science-based target to reduce its overall Scope 3 GHG emissions for purchased goods but does not disaggregate these by supply chain.
- Has a lack of dedicated targets and strategies to decarbonize the steel, aluminum and batteries used in its vehicles.
- Outperforms most peers in having contractual requirements for its battery cell suppliers to use green electricity, and has also made progress in establishing closed loop systems for batteries by working with a battery recycler in China.
- Has some high-level human rights due diligence policies in place, with mechanisms to identify, mitigate, and remedy abuses in its supply chain.
- These policies and mechanisms need to be strengthened for responsible mineral sourcing, workers’ rights, and especially, to ensure the respect of Indigenous Peoples’ right to Free, Prior and Informed Consent.
- Made a significant improvement on workers’ rights in 2023 by becoming the first automaker to introduce a requirement in its supplier code of conduct to pay a living wage.
Score Breakdown
Fossil-Free & Environmentally Sustainable Supply Chains
Human Rights & Responsible Resourcing
Supply Chain News & Progress
Latest on BMW
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
By 2026, more than one third of BMW’s steel will be “CO₂-reduced” + “CO₂-reduced” aluminum agreement
As part of their value chain-wide climate neutrality by 2050 goal, BMW stated their focus on CO₂-intensive materials, including aluminum and steel.
On steel, from 2026, more than one third of BMW’s steel worldwide will be “CO₂-reduced steel,” eliminating approximately 900,000 tonnes of CO₂ annually. They state that this is based on contracts with suppliers in Europe, China, and the US. BMW also noted that they see their efforts as “promoting the transformation of the steel industry.”
On aluminum, BMW have signed a declaration of intent with Rio Tinto in Canada for “significantly CO₂-reduced” aluminum from 2024. BMW states that compared to conventional methods, “the process avoids around 70% of CO₂ emissions.” This aluminum will be used exclusively in vehicle production at BMW’s Spartanburg plant in the US.
BMW signs agreements for low-carbon steel & aluminum in Europe, US and China
BMW has signed agreements with Salzgitter AG in Europe, Steel Dynamics (SDI) and Big River Steel in the U.S. and HBIS Group in China for low-carbon steel to be used in its production cycles. In February 2023, BMW also signed an agreement to source reduced CO2 aluminum from Rio Tinto for its US vehicle production.
Allegations of negative environmental impacts & forced labor
The Business and Human Rights Resource Centre has documented allegations against BMW’s supply chains for being implicated in environmental harms affecting the rights of Indigenous Peoples and forced labor. Reports also link BMW’s nickel supply chain with pollution in Indonesia.
Our Vision
01 — Equitably
Respecting and advancing the rights of Indigenous Peoples, workers, and local communities throughout the supply chain.
02 — Sustainably
Preserving and restoring environmental health and biodiversity across supply chains, while reducing primary resource demand through efficient resource use and increased recycled content.
03 — Fossil-free
100% electric and made with a fossil fuel-free supply chain.