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Sustainable Value Report Basic Reporting Principles SuStainable Value RepoRt Basic reporting principles Sustainable Value Report 2010 of the BMW Group This eighth edition of the BMW Group Sustainable Value Report has been published to inform stakeholders in a transparent manner about the company’s sustainability strategy and how sustainability is being integrated into corporate processes. Focusing on present and future challenges in the areas of sustainable management, product responsibility, Group-wide environmental protection, employees and social commitment, the Sustain- able Value Report 2010 describes the company’s approaches and specific programmes used to improve its sus- tainability performance. The “objectives, key facts and figures” section presents key figures for these measures as well as the company’s objectives in the above-mentioned areas. Each chapter starts with a two page overview of the main points, including priority topics with the associated challenges, achievements and objectives as well as the key performance indicators (KPIs) used internally to control and monitor the BMW Group’s sustain- ability performance. This Sustainable Value Report is published in German and English. Conforms to GRI standards The BMW Group’s Sustainable Value Report has been compiled in accordance with the Global Reporting Initiative (GRI G3) guidelines as well as the industry-specific Automotive Sector Supplement (pilot version 1.0). To what extent GRI indicators are met is shown in the GRI Index and where appropriate explanatory notes are www.globalreporting.org attached. At GRI level A+(GRI checked), this Sustainable Value Report 2010 meets the maximum requirements detailed in the GRI guidelines. Topics have been selected and weighted in accordance with the findings of intensive, structured dialogue with stakeholders as well as with the results of in-house workshops in which all relevant BMW Group departments participated (cf. chapter 01.4). The resulting materiality matrix is mapped www.bmwgroup.com/ in chapter 01.1. The specific demands of rating agencies specialising in evaluating corporate sustainability per- gri-index-e formance are also taken into consideration. Reporting period As is the case for the Annual Report, the reporting period for the Sustainability Value Report is the calendar year 2010. However, in order to present an up-to-date and complete report, information about activities carried out in 2009 (limited to events that occurred after the editorial deadline of the previous Sustainable Value Report in July 2009) as well as new information obtained by the editorial deadline in July 2011 has also been included. The “objectives, key facts and figures” section maps the figures for 2006 –2010 (with the exception of newly added key figures). The objectives, key facts and figures published in this report refer to the entire BMW Group with its three brands BMW, MINI and Rolls-Royce. There are, however, some exceptions concerning site- specific topics and local sustainability programmes. Wherever this is the case, the entity the figures apply to is specified accordingly, e.g. BMW AG. The last Sustainable Value Report was published in print in September 2009 and covered financial year 2008. For financial year 2009, “Indicators for Sustainability”, with objectives, key facts and figures was published online only (“Update 2010”). Any targets that were met in 2009 were identified in the update and are not mentioned again in the 2010 Sustain able Value Report. The key figures and objectives in the “objectives, key facts and figures” section were audited by PricewaterhouseCoopers for the first time this year. In addition, indi- www.bmwgroup.com/ cators from the areas of environmental protection and occupational health and safety were audited by external responsibility auditors and experts in accordance with ISO 14001, EMAS and OHSAS (see lists of locations with certified health and safety management systems in the chapter “objectives, key facts and figures” and of those with certified environmental management systems on the Internet at www.bmwgroup.com/responsibility). UN Global Compact – Communication on Progress report The BMW Group is committed to implement the principles of the UN Global Compact 2001, and in this report is www.unglobalcompact.org once again reporting on progress achieved towards complying with these principles. An overview of the ten principles www.globalcompact.de with examples of their implementation is contained in the Progress Report (cf. page 115 et seq.). Further information Please refer to www.bmwgroup.com/responsibility for further in-depth information on the topics covered in the www.bmwgroup.com/ Sustainable Value Report 2010 and the glossary. Internet links to the topics discussed are indicated in the report by responsibility www.bmwgroup.com/glossary a specific symbol. Forward-looking statements The BMW Sustainable Value Report contains various forward-looking statements about future developments which are based on the current status of the BMW Group’s assumptions and forecasts. They are thus subject to a variety of predictable and unpredictable risks, uncertainties and other factors, so that the actual outcome, including the com- pany’s financial and assets position, its development or performance could differ considerably. The BMW Group makes no commitment to update such forward-looking statements and to adapt them to future events or develop- ments. Dear Reader, We have a clear vision: we aim to be the world’s leading provider of premium products and services for individual mobility. By acting in a sustainable and responsible way in all areas, we are taking a step-by-step approach to ensure this vision becomes reality. After all, sustainable action is an investment in our future. We are engaged in dialogue with many diverse groups in society. Today, our stakeholders do not just want to know about the efficiency of our vehicles. They are also asking: How environmentally friendly is the production process for the BMW Group’s vehicles and motorcycles? What alternative mobility concepts are we developing? And: Do we look for sustainability in the supply chain? At the BMW Group, we take a long-term approach in our strategy and actions. We see ourselves as part of society and embrace our responsibilities. This is why we listen to our stakeholders and take their concerns seriously. In this Sustainable Value Report, you will learn what challenges we face and what goals we have set for ourselves. We will also report on the specific progress we made last year – transparently and openly. For the first time, we have engaged an inde- pendent auditor to certify the “objectives, facts and figures” section of this report. We want to demonstrate that the BMW Group is shaping its future. In doing so, our focus is on all three aspects of sustainability – economic, environmental and social. Our company has signed the Global Compact of the United Nations and is committed to implementing its ten principles at all locations worldwide. Sustainable action starts with a mindset. The entire Board of Management of the BMW Group is represented on our Sustainability Board. Every day, over 96,000 employees worldwide are working to achieve further progress across the entire value chain. This is true for our business and also for our partnerships and our relationships with all stakeholders. Dr. Norbert Reithofer Chairman of the Board of Management Frank-Peter Arndt Zero-emissions production is a goal we continuously strive to fulfil. We have already done a great deal to conserve resources and avoid waste, and clean production is a key component of our sustainability strategy. However, we still have much to do. Our success drives us forward and it is this very success that motivates us to continue to work on innovative solutions in the future. Environmental protection is not a cost factor. On the contrary: efficient, clean production is more competitive in the long term. The use of renewable energy sources in our plants is the next logical step in this process with the production of the BMW i models in Leipzig setting new standards in this regard. For us, sustainable mobility can only be developed within sustainable structures. Nothing less than this will satisfy our premium standards. Dr.-Ing. Herbert Diess Sustainable management makes a difference when it involves the entire value chain. We are working to embed sustainability in all processes as well as with suppliers and partners. The BMW Group aims to be a role model and to encourage other companies to take similar measures. We require our business partners to comply with social and environmental standards. We expect production methods to take environmental protection and conservation of natural resources into account. Our purchasing terms and conditions include binding requirements to this effect. We owe this to our customers. Sustainability in the supply chain is ultimately a joint task for the entire industry. The more companies that participate, the more successful its implementation will be. Dr.-Ing. Klaus Draeger Our route to sustainable mobility is via Efficient Dynamics: this concept combines drive technologies, lightweight design, aerodynamics and optimised energy management in our vehicles. Efficient Dynamics makes it possible to combine dynamic driving with efficiency – now and in the future. We develop innovative solutions that reduce fuel consumption and CO2 emissions. We have reached a whole new level of efficiency with our revolutionary BMW i3 electric vehicle and the BMW i8 hybrid sports car. There is no going back: individual mobility is going to become more environmentally friendly. In particular, the all-electric BMW i3 delivers a compelling statement for sustainability. A A The BMW AG Board of Management at the presentation of the new BMW i sub-brand for B electric vehicles, Frankfurt, Germany B LED installations representing a megacity at the sub-brand presentation Dr. Friedrich Eichiner Sustainable management means consistently increasing a company’s value. The BMW Group regards steady and appropriate value creation as its central responsibility. It seeks to create value through its actions – for itself and for others.
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