Sustainable Value Report 2014 Contents
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SUSTAINABLE VALUE REPORT 2014 CONTENTS 1 2 SUSTAINABLE 3 STRATEGY CORPORATE MANAGEMENT PRODUCT RESPONSIBILITY INTRODUCTION Preface 3 Our point of view 4 An overview of the BMW Group 5 APPENDIX Stakeholder expectations 141 1.1 Our management approach 11 2.1 Our management approach 26 3.1 Our management approach 46 Objectives 142 1.2 Stakeholder engagement 18 2.2 Economic impacts 28 3.2 Efficient mobility 49 About this report 146 2.3 Compliance and anti-corruption 34 3.3 P roduct safety 55 Independent Assurance Report 148 2.4 Risk management 37 3.4 Resource efficiency and recycling management 58 GRI Index 151 2.5 Human rights 40 3.5 Future mobility 61 Imprint/Contact 157 3.6 Customer satisfaction 66 4 GROUP-WIDE 5 6 7 ENVIRONMENTAL PROTECTION SUPPLIER MANAGEMENT EMPLOYEES CORPORATE CITIZENSHIP 4.1 Our management approach 72 5.1 Our management approach 94 6.1 Our management approach 108 7.1 Our management approach 132 4.2 Energy 75 5.2 Minimising risk 98 6.2 Attractive employer 112 7.2 Corporate Citizenship 137 4.3 C O emissions 80 5.3 Seizing opportunities 102 6.3 Occupational health and safety 118 ² 4.4 Waste management 85 6.4 Training and further education 122 4.5 Water 88 6.5 Diversity & Inclusion 125 Fuel consumption and CO² emissions ratings for the vehicles referred to in this report can be found on page 156. SUSTAINABLE VALUE REPORT 2014 2 PREFACE At the BMW Group, we believe that sustainability means investing in our future. Our approach is holistic, focused on implementing sustainability throughout the value chain and ensuring that sustainability is firmly entrenched within our company structures and practised by our employees. To achieve this, we are gradually refining our sustainability strategy and setting long-term objectives in clearly defined areas of activity. We have steadily reduced fleet CO₂ emissions with our Efficient Dynamics technology strategy over the years. Average emissions for our European fleet currently stand at 130 grams of CO₂ per kilometre. With BMW i, we have made sustainable mobility a reality. Our customers now have a choice: with the BMW i3 and BMW i8, they can enjoy sheer driving pleasure with either an electric or plug-in hybrid vehicle. We will continue to electrify our vehicle fleet – and this will help us reach our 2020 goal of reducing European fleet emissions to half the levels recorded in 1995. Our understanding of sustainability includes efficient use of resources, as well as lower CO₂ emissions. We achieved a major breakthrough in power consumption in 2014 and now obtain more than half our electrical energy worldwide from renewable sources. By including sustainability considerations in all our business decisions, we create added value for the company. At the same time, we are demonstrating our commitment to international conventions such as the ten Norbert Reithofer principles of the UN Global Compact. Beyond that – and this is crucial – we create innovations with tangible Chairman of the Board of Management of BMW AG benefits for society. Consistent action clearly pays dividends. The BMW Group has been one of the top-rated companies in major sustainability rankings for many years: we are the industry leader in both the Dow Jones Sustainability Index and the Carbon Disclosure Project. We believe that sustainable action makes our business model more competitive and secures our company’s future growth. Dr.-Ing. Dr.-Ing. E. h. Norbert Reithofer Chairman of the Board of Management of BMW AG SUSTAINABLE VALUE REPORT 2014 3 OUR POINT OF VIEW Milagros Caiña Carreiro-Andree Peter Schwarzenbauer Dr.-Ing. Dr.-Ing. E. h. Norbert Reithofer Klaus Fröhlich Dr. Friedrich Eichiner Dr.-Ing. Klaus Draeger Harald Krüger Dr. Ian Robertson (HonDSc) “It is our goal to engage in sustainable operations. “Our highly skilled and motivated workforce creates real “We aim to increase the efficiency and reduce emissions “We will continue to expand our successful car-sharing Among other things, this means designing new benefit for the company. After all, the only way for a of our vehicles, while at the same time making them system, intensifying our focus on adding more electric products to master the global challenges of our times. sustainability strategy to be successful is if it is lived and safer and more comfortable. With Efficient Dynamics vehicles. Car-sharing provides relief in terms of traffic Our innovations should be designed to serve our cus- implemented each and every day – in Germany, China, technologies, the innovations of BMW ConnectedDrive and the environment, especially in dense urban areas. tomers and society. As such they contribute towards the USA and every other country we do business in.” and BMW i, we have laid the groundwork for a We also work with innovative start-up companies to the long-term success of our business model.” Milagros Caiña Carreiro-Andree sustainable future.” develop tomorrow’s sustainable mobility concepts.” Dr.-Ing. Dr.-Ing. E. h. Norbert Reithofer Member of the Board of Management of BMW AG — Human Resources and Klaus Fröhlich Peter Schwarzenbauer Chairman of the Board of Management of BMW AG Labour Relations Member of the Board of Management of BMW AG — Development Member of the Board of Management of BMW AG — MINI, BMW Motorrad, Rolls-Royce, Aftersales BMW Group “Before deciding to implement a project, we first analyse “For us, Clean Production means consistently investing “Our customers are at the heart of everything we do. “Hand in hand with our partners in the supply chain, its potential profitability. Our sustainability activities in resource-efficient technologies and our vision of Their satisfaction with our products and services is we are making our supplier network more sustainable. should also be designed to make a positive contribution long-term emissions-free production at every one of a prerequisite for our sustainable future. Under the Saving resources, raising awareness of sustainability to the business. We want to attract new customers by our production facilities worldwide. By 2020, we aim banner of “Future Retail” we are constantly evolving and fostering innovative ideas – these are all oppor- offering low-emissions vehicles. We invest in resource to almost halve our energy requirements per vehicle the customer retail experience, with the aim to be tunities to leverage potential.” efficiency because it reduces our energy and disposal produced compared to 2006.” the benchmark in our industry and beyond.” Dr.-Ing. Klaus Draeger costs in the medium term.” Harald Krüger Dr. Ian Robertson (HonDSc) Member of the Board of Management of BMW AG — Purchasing and Supplier Network Dr. Friedrich Eichiner Member of the Board of Management of BMW AG — Production Member of the Board of Management of BMW AG — Sales and Marketing BMW, Member of the Board of Management of BMW AG — Finance Sales Channels BMW Group SUSTAINABLE VALUE REPORT 2014 4 AN OVERVIEW OF THE BMW GROUP OUR PRODUCTION NETWORK OUR SALES NETWORK OUR SUPPLIERS 30 PRODUCTION AND APPROXIMATELY 6,000 APPROXIMATELY ASSEMBLY PLANTS DEALERSHIPS IN MORE 13,000 SUPPLIERS IN 14 COUNTRIES THAN 140 COUNTRIES INVESTMENT IN TRAINING AND EMPLOYEES OF THE BMW GROUP AUTOMOBILES DELIVERED IN FURTHER EDUCATION 2014 2014 2014 — in € million — as of 31.12.2014 — units 116 , 3 24 2 ,117, 9 6 5 335 of which 4,595 of which 1,811,719 302,183 4,063 apprentices BMW MINI Rolls-Royce 282 288 105,876 110,351 1,845,186 1,963,798 2012 2013 2012 2013 2012 2013 RESEARCH AND DEVELOPMENT EXPENDITURE CO² EMISSIONS OF BMW GROUP PROFIT BEFORE TAX 2014 AUTOMOBILES 2014 2014 — in € million — in g/km* — in € million 4,566 130 8,707 * Fleet consumption of newly registered vehicles in Europe (EU-28) 3,952 4,793 138 g/km 133 g/km 7,803 7,893 2012 2013 2012 2013 2012 2013 SUSTAINABLE VALUE REPORT 2014 5 VALUE CHAIN RESEARCH AND SUPPLY CHAIN PRODUCTION LOGISTICS AND SALES AND DISPOSAL AND DEVELOPMENT TRANSPORT UTILISATION RECYCLING HIGHLIGHTS WORLDWIDE RESEARCH AND WORLDWIDE SUPPLIER NETWORK CAR AND MOTORCYCLE TRANSPORT BY RAIL/AIR/ROAD GLOBAL SALES NETWORK WORLDWIDE RECYCLING AND DEVELOPMENT NETWORK WITH APPROXIMATELY 13,000 PRODUCTION IN 30 PLANTS IN OVER 140 COUNTRIES REUSE OF BMW GROUP VEHICLES IN TWELVE LOCATIONS SUPPLIERS AND ASSEMBLY FACILITIES IN FIVE COUNTRIES IN 14 COUNTRIES (INCLUDING CONTRACT PRODUCTION) MAIN ACTIVITIES Development of innovative, Global cooperation with suppliers Manufacturing of cars and Securing customer-oriented Range of premium products Recovery and dismantling fascinating cars and motorcycles: to create: motorcycles by a highly expert transport logistics in the network of: and services for individual of vehicles for: and diverse workforce: mobility through: – Vehicle design – Modules/systems – Suppliers – Reuse – Series development – Components – Engine construction – Plants – Coordination of a worldwide – Recycling and disposal of vehicle – Production planning – Parts – Bodywork – Dealerships dealership/repair shop network components and materials – Raw materials – Paintwork – Implementation of a coordinated – Assembly worldwide through the seamless and target-group-oriented – Quality control combination of various modes marketing mix of transport – Provision of financial services AREAS OF ACTION – Environmentally friendly – Implementation of environmental – Reduction in resource consumption – Production in the sales markets Promotion of sustainable mobility – Expansion and management of product design and social standards in the (energy, water, process waste – Increase in the share of modes behaviour patterns based on: a network for vehicle recovery – Design for recycling supply chain water, waste) of transport with low emissions – Information (e.g. vehicle fuel and recycling – Development of even more – Promotion of transparency – Reduction in environmentally – Optimisation of capacity utilisation consumption data and training – Research on recycling and efficient and alternative and resource efficiency in the damaging waste water and of modes of transport in fuel-efficient driving) Second Life use of components drivetrains such as electric, supply chain emissions – ConnectedDrive (e.g.