News & Insights
Climate protection is justifiably a hot topic, with the world’s biggest companies around the world taking action to reduce their carbon footprint. The BMW Group is one of those at the forefront and is set to ramp up its sustainability efforts even further in the years to come.
A rapidly changing world is seeing a dramatic shift in the way companies are doing business, particularly when it comes to environmental protection. Organisations can no longer simply proclaim they are taking steps to minimise their carbon footprint; they must clearly demonstrate it.
German luxury vehicle manufacturer the BMW Group is at the vanguard of addressing the issue of climate change. It is continuing to advance its sustainability plans – as well as electrifying its vehicle fleet – on its way to creating a carbon-neutral business by 2050.
The company is not new to putting sustainability at the core of its operations and has been recognised for its policies by the authoritative Dow Jones Sustainability Indices. In fact, the BMW Group is the only automobile manufacturer to be consistently named among the industry leaders since the indices were created.
Indeed, the BMW Group has initiated processes for many years across the world to lessen its impact on the environment.
It has reduced its resource consumption – energy, water, waste and solvents – by 45 per cent per vehicle produced by 2020 (based on the year 2006), and also recycles 99 per cent of the 760,000 tonnes of material waste as a result of the production of almost 2.5 million vehicles a year.
Since 2020, 100 per cent of electricity purchased for its production plants worldwide has been from renewable energy sources. This extends to the battery cell manufacturers with whom BMW Group has contractual agreements.
In addition, 30 per cent of BMW Group vehicles are made from recycled or reused materials.
Last year the BMW Group announced it would begin sourcing aluminium produced using solar electricity with immediate effect. And in the same year the company formed a partnership with Swedish start-up H2 Green Steel, which uses hydrogen and renewables instead of coal power in the production of steel.
Procedures are additionally in place to address the issue of high voltage battery recycling and reuse – a critical topic. At the end of a BMW electric vehicle lifespan, batteries are re-purposed as an energy storage device at a renewable energy plant. When the battery is finally retired from the plant, it is stripped of raw materials that are then recovered and reused.
All these initiatives feed into the BMW Group’s emissions reduction plan that encompasses the entire value chain, factoring in products, services, production, value creation, employees and society.
The BMW Group is also pursuing clear targets to produce the greenest electric vehicle fleet by reducing the lifecycle CO2 emissions per vehicle by at least a third. These targets include reducing the carbon footprint compared with 2019 levels per vehicle by 2030 via the following means:
– In production by 80 per cent
– During the use phase by more than 40 per cent
– In the supply chain by at least 20 per cent
The BMW Group is complementing its sustainability and C02 emissions reduction initiatives with an aggressive electric vehicle rollout.
By the end of 2025, the BMW Group aims to deliver around two million fully electric vehicles to customers worldwide, with deliveries of BMW Group’s fully electric vehicles expected to grow by an average of more than 50 per cent annually by 2035.
One of its prominent goals is to have 25 electrified models in its product range by the end of next year, with 12 of these models to be fully electric.
Also in 2023, the company will have at least one fully-electric model on the roads in about 90 percent of its current market segments. Over the next decade or so, the BMW Group plans to release a total of about 10 million fully-electric vehicles on to the roads.
On a local level, BMW Group is seeing considerable growth from a model portfolio perspective and impressive expansion in consumer interest and sales.
The company recently announced that two new fully electric models – the i7 flagship sedan and iX1 crossover – will launch in Australia over the next nine months. This will mean that by the end of Q1, 2023, BMW Group Australia will offer 12 electrified models, which is among the most of any manufacturer represented in the country.
The i7 and iX1 will join the fully electric BMW iX3, iX and i4, all of which launched in late 2021 and early 2022. These models have been instrumental in BMW increasing its electric vehicle footprint and also recording quadruple per cent growth in local registrations.
The MINI Electric Hatch, which launched in 2020, has continued to be a runaway success with registrations of the acclaimed model up 200 per cent in the first quarter of this year.
Registrations of BMW plug-in hybrid (PHEV) models, of which five are available to Australian customers, have also seen robust growth with registrations up nearly 100 per cent in 2022. Plug-in hybrid vehicles offer customers the ability to drive on fully electric power with a conventional petrol engine as a back-up.
BMW Group Australia is supporting its new model introductions by playing a role in advancing the local industry forward. It is a member of the Electric Vehicle Council in Australia and is committed to working alongside key industry bodies and other manufacturers to help accelerate the electrification of road transport to create a sustainable and prosperous future for Australia.
In addition, BMW Group Australia has a successful partnership with Chargefox, Australia’s largest charging network powered by 100 per cent renewable energy.