BMW CSR Overview
BMW CSR strategy aims to achieve the highest level of sustainability during the each stage of the vehicle life cycle via implementing the relevant set of measures and initiatives. The figure below illustrates the key measures at each stage of the vehicle life cycle process:
BMW sustainability throughout the product life cycle[1]
BMW Group has won a number of awards for its sustainability efforts. These include the following:
- Re-gaining the first place in automobile industry in Dow Jones Sustainability Indexes (DJSI) in 2015
- Achieving 100 out of maximum 100 points for transparent reporting according to CDP.
- Being listed on FTSE4Good an index of the British index family on sustainability and corporate governance provided by FTSE in London.
BMW CSR Programs and Initiatives
The company releases Sustainable Value Report annually and it includes the details of CSR programs and initiatives engaged by the company. Table 3 below illustrates highlights from the latest report for 2015:
| Categories of CSR activities | BMW Group Performance |
| Supporting local communities | Care 4 Water initiative carried out in collaboration with the non-profit
organisation “Waves For Water” involves employee fundraising activities in more than 50 countries to enable communities to secure their own access to clean water |
| Educating and empowering workers | Employees for certain positions are offered flexible working hours such as sabbaticals or “Vollzeit Select” (Fulltime Select) scheme
In 2015 BMW Group invested EUR 352 million for employee education and training and development purposes. On average BMW Group employees participated in 4.1 days of training programs in 2015. |
| Labor and human rights | Starting from 2016, the company has announced the gradual integration of human rights requirements into global Compliance Management System |
| Employee health and safety | Health Management 2020 program has been launched to assist employees to improve and maintain their health. Since its launch in 2014 10,100 employees participated and received
personal health reports More than 90% of employees are represented in health and safety committees 25 out of 30 manufacturing locations have OHRIS or OHSAS certified occupational health and safety management systems |
| Gender equality and minorities | The legal minimum of 30 per cent of female and male members in the Supervisory Board
14.5 per cent of management positions in BMW Group are held by women The company guarantees a gender-neutral remuneration system In 2015 the share of BMW AG employees with severe disabilities reached 6.3% |
| Environment
a) energy consumption
b) water consumption
c) recycling
d) CO2 emissions
|
The company’s energy usage declined by 36.0 per cent since 2006.
BMW Group water consumption was reduced by 31.3 per cent compared the base year of 2006. In 2015 the amounts of non-recyclable production waste reduced by 4.3 per cent. Since 2006 the total waste for disposal produced by BMW Group has reduced by 78.9 per cent Between 1995 and 2015 average CO2 emissions by BMW Groups 3 brands in Europe decreased by 39.5 per cent CO2 emission by BMW Group vehicle fleet sold in Europe was reduced slightly to 127 grams CO2 / km (2014: 130 grams CO2 / km; – 2.3 %) during 2015 |
| Sustainable sourcing | Since 2006, resource consumption and emissions per vehicle produced decreased by an average 48.1 per cent
According to its own estimations, BMW Group will achieve 45% reduction of resource consumption per vehicle by 2020, compared to the base year of 2006. |
| Other initiatives and charitable donations | EUR 39.1 million was donated as social engagement to various donations in 2015 |
BMW Group Report contains a criticism of BMW CSR programs and initiatives. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on BMW Group. Moreover, the report contains analysis of BMW Group’s marketing strategy along with discussion of its leadership and organizational structure.
[1] Sustainable Value Report (2015)