Raw materials are the basis for every industrial production process. However, following the path taken by raw materials from the mine to the final product is highly complicated due to the multi-layered and dynamic global supply chain. This is primarily due to the interconnected trade and processing levels and raw materials trading on the exchange.
It is therefore a major challenge to implement sustainability standards from the extraction stage onwards. In light of this, the BMW Group concentrates on selected, relevant or critical raw materials and supply chains. We analyse and evaluate both the supply chains and the corresponding need for action and develop measures based on this, which we then implement together with our suppliers.
For this purpose, we are also active in cross-industry initiatives supporting sustainable dealings with raw materials. In line with this, we have been supporting the Aluminium Stewardship Initiative (ASI) since December 2012. As a material used in lightweight design, aluminium plays an important role because it is considerably lighter than steel. The goal of ASI is to establish a standard for responsibly produced aluminium across the entire value chain: from responsible company management to compliance with environmental standards to social standards.
From a sustainability perspective, in addition to aluminium, steel as a raw material is also a focal point. Steel is proportionally the most widely-used raw material in our vehicles. Its production is highly energy intensive and therefore responsible for the largest portion of CO₂ emissions in the manufacturing phase. For this reason, we are developing measures together with our suppliers to increase the transparency of the supply chain and to unlock CO₂ potential.
Due to regulatory demands, the issue of conflict minerals is of major relevance. According to the current legal position, the raw materials tin, tungsten, tantalum and gold are conflict minerals. The extraction of these minerals helps finance ongoing civil wars in the Democratic Republic of the Congo and its neighbouring states. To prevent the financing of armed groups via these minerals, legislation was introduced in the USA – the so-called Dodd Frank Act. In that country, all companies listed on the US stock exchange were required to disclose whether these conflict minerals were necessary for the production or functioning of their products, as well as whether they were extracted in the DR Congo or its neighbouring states.
Renewable raw materials.
Traditionally, some products in the automotive industry contain natural materials. In the current discussion about limited oil-based resources and the importance of product sustainability, their proportion is constantly increasing. Natural materials are sustainable and offer advantages over oil-based primary materials in a life cycle assessment. However, when using natural materials, we should always consider their origins. Renewable raw materials grow in forests, plantations and on fields, where BMW’s sustainability standards must also be guaranteed. One possibility is the use of certificates and seals, which already exist on the world market for a large number of products, particularly in the lumber and food industry. Taking sustainability certificates into account when selecting materials guarantees compliance with basic principles with respect to social, environmental and compliance issues and is recognised worldwide.
In 2013, the BMW Group became the first car manufacturer to incorporate wood that was certified as sustainable into its products: The BMW i3’s interior trim made from fine eucalyptus is certified by the well-known Forest Stewardship Council (FSC).
We will continue and intensify these efforts to develop a sustainable and transparent supply chain for natural materials by engaging in dialogue and cooperation with our suppliers and NGOs and by participating in industry initiatives.
