When we talk about sustainability in automotive, we often think about electric vehicles or tailpipe emissions. What makes BMW’s approach truly next-level is how it's rethinking emissions from the very beginning to the very end of its value chain.
A 360° Emissions Strategy 🌍
BMW has set an ambitious target: cut lifecycle CO₂ emissions by 40 million tonnes by 2030 compared to 2019 levels, spanning everything from raw material sourcing and production to vehicle use and recycling.
It’s the kind of system-wide strategy I’ve been exploring in the Business and Climate Change course at Harvard Business School, where we’re learning how climate innovation isn’t just about products, it’s about reimagining business models end-to-end.
1. Transparent & Sustainable Sourcing
Green power only: Over 400 supplier contracts require 100% renewable electricity, for example, solar-powered aluminum from the UAE and green steel produced via hydrogen or natural gas, which cuts emissions by up to 95%.
Local-for-local procurement: By sourcing closer to its plants, BMW reduces transport emissions and builds flexibility into its supply network.
2. Clean & Efficient Production
100% renewable electricity at manufacturing sites since 2021; they’ve already slashed CO₂ per vehicle by ~70% since 2006, aiming for an 80% cut by 2030.
AI-driven optimization: BMW leverages data and automation to minimize energy use, reduce waste, and streamline production across its global iFACTORY network.
3. Circular Economy & Recycling
Battery circularity: BMW is advancing battery material recovery—recycling lithium, cobalt, and nickel to reduce Scope 3 emissions and preserve critical resources.
End-of-life programs: The company recycles over 90% of vehicle materials through thousands of return points worldwide.
4. Clean Logistics
Smarter shipping: BMW emphasizes rail and sea transport, uses biofuels in pilots, and employs lighter, reusable packaging to cut emissions across the logistics chain.
Carbon tracking: The company even uses CO₂-calculating tools to design greener logistics and supplier strategies.
What I’m Taking Away 👇
BMW isn’t just reducing emissions—it’s transforming how a global business thinks about emissions. That’s been one of the key lessons in my Harvard course: real climate leadership comes from embedding sustainability into operations, not just marketing.
It’s bold, it’s complex, and it’s the direction forward.
If you're working on similar value-chain decarbonization in your company or industry, I’d love to connect. Let’s share learnings and push the conversation further. 🌱
— Morena
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