BMW aims for sustainable development in supply chain

German automaker BMW is building up a sustainable and high-quality supply chain in China together with local suppliers.

BMW Brilliance Automotive and its long-term cooperative supplier Shenyang Jinbei Yanfeng Automotive Interior System are addressing the challenges and opportunities of green transformation in the automobile industry, and the achievements made by both parties in creating a sustainable supply chain.

Johann Wieland, president and CEO of BMW Brilliance Automotive, said: "No sustainability, no premium. As a responsible company, BMW aims to lead the way in sustainability by making the entire life cycle of our vehicles more sustainable, in the supply chain and manufacturing process, through the vehicle's use and to the automobile recycling.

"We will do this by working together with our supply partners to embed sustainable practices in the processes and operations along the supply chain. Through these actions, we are supporting China's green and high-quality development targets and contributing to a more sustainable world."

By 2030, BMW will cut the carbon emissions of a vehicle across its entire life cycle by at least 40 percent compared with that in 2019, and reduce carbon emissions in the supply chain by 20 percent compared with 2019, according to the automaker.

To accelerate the low-carbon transformation and high-quality development of its supply chain, BMW has established a supplier sustainability management system in China, which assesses suppliers on such aspects as the environment, health and safety, social responsibility, climate change and financial risk management.

BMW is speeding up the low-carbon transformation of its supply chain by reducing the carbon footprint of emission-intensive raw materials, advocating the recycling of raw materials and the usage of renewable energy sources.

BMW is highly selective when it comes to sourcing emission-intensive raw materials such as steel, aluminum and positive and negative materials for power batteries. Suppliers' use of renewable energy sources is an important factor for BMW when deciding to sign new contracts or extend existing ones.

According to BMW, some of its aluminum ingot suppliers are expected to reduce 360,000 metric tons of carbon emissions in the contract period ranging from 2021-23, by using renewable energy sources in the production process.

Through the recycled steel closed-loop production system created in cooperation with its steel suppliers, BMW recovered a total of 45,000 tons of steel in China last year.

In addition, BMW cooperated with suppliers to recycle waste aluminum, and has been committed to using 100 percent recycled aluminum in the production of BMW's fifth-generation power batteries.

Through cooperation with its battery suppliers, BMW recovered 4,347 waste power batteries in China in 2020, with a total weight of 98,261 kilograms, and recovered 98.5 percent of the nickel, cobalt and manganese.

With its State-level green demonstration plant in Shenyang, Northeast China's Liaoning province, BMW has long taken optimizing renewable energy use as a high priority to reduce overall carbon emissions.

Since 2019, BMW's Shenyang production base has been completely powered by renewable energy.

In September, BMW bought 2.78 billion kilowatt-hours in China's first green electricity transaction, accounting for 35 percent of the total transaction volume and ranking first in the country.

As cooperating with highly qualified suppliers is the foundation of achieving long-term sustainable development in the industry, BMW has launched a supply chain climate change initiative targeting its suppliers at all levels.

Focusing on perspectives of carbon footprint disclosure, energy efficiency and green energy use, a supply chain sustainability management project team established by BMW will work with more suppliers to achieve green and low-carbon transformation in China.

Jinbei Yanfeng, specializing in the production and aftersales service of automotive interior products such as door panels and instrument boards, has cooperated with BMW Brilliance for 18 years.

By the end of 2021, Jinbei Yanfeng will have delivered more than 3 million instrument boards and 2 million door panels to BMW Brilliance.

Relying on BMW's strict requirements for the sustainable development of its suppliers, Jinbei Yanfeng is aiming to achieve high-quality and sustainable development by green transformation, and is striving to reach carbon neutrality by 2040.

By Jan 1, Jinbei Yanfeng will use 100 percent renewable electricity in its production, which is expected to help cut carbon emissions by 15,600 tons per year.

The supplier is also trying to use recycled materials and reduce energy consumption by adopting lightweight design, on the premise of safety.

Joining hands with its 400 suppliers in China, BMW is reinforcing its sustainable supply chain, to promote the high-quality development of the automobile industry.