Raw materials are the basis of any industrial production process. However, the path that raw materials take from mine to finished product is highly complex due to multi-layered and dynamic global supply chains. This is mainly due to the interconnectedness of exchange trading and processing levels, as well as the trading of raw materials.
Therefore, implementing sustainability criteria from the extraction stage is a major challenge. With this in mind, the BMW Group focuses on carefully selected, relevant or critical raw materials and supply chains. We analyze and assess both the supply chain and the need for corresponding actions, and based on this we develop and implement countermeasures in cooperation with our suppliers.
To this end, we are also actively engaged in cross-industry initiatives that support sustainable trade in raw materials. In line with this, we have been supporting the Aluminum Stewardship Initiative (ASI) since December 2012. Aluminum is much lighter than steel, making it an important material to use in lightweight designs. ASI’s goal is to establish standards for responsibly produced aluminum across the value chain, from responsible business practices to compliance with environmental and social standards.
From a sustainability perspective, in addition to aluminum, steel, which is a raw material, is also attracting attention. Steel is the most widely used raw material in our vehicles. Their production consumes so much energy that the majority of CO₂ emissions occur during the manufacturing stage. This is why we are working with our suppliers to develop measures to increase supply chain transparency and maximize CO₂ potential.
Due to regulatory requirements, the issue of conflict minerals is of great relevance. According to the current legal position, the raw materials tin, tungsten, tantalum and gold are conflict minerals. Extraction of these minerals helps finance the ongoing civil war in the Democratic Republic of Congo and its neighboring countries. In order to prevent the financing of armed groups through these minerals, the so-called Dodd-Frank Act was introduced in the United States. In this country, all companies listed on U.S. stock exchanges must disclose whether these conflict minerals are necessary for the production or functioning of their products and whether they were extracted in the Democratic Republic of the Congo or neighboring countries. It became mandatory.
Renewable raw materials.
Traditionally, some products in the automotive industry contain natural materials. In the current debate on the importance of sustainability of limited petroleum-based resources and products, their proportion is constantly increasing. Natural materials are sustainable and have advantages over petroleum-based primary materials in life cycle assessment. However, when using natural materials, you should always consider their origin. Renewable raw materials are grown in forests, plantations and fields and must also ensure BMW’s sustainability standards. One possibility is the use of certificates and seals. Certificates and seals already exist on the world market for many products, especially in the wood and food industries. Considering sustainability certificates when selecting materials guarantees compliance with fundamental principles regarding social, environmental and compliance issues and is recognized worldwide.
In 2013, the BMW Group became the first car manufacturer to incorporate certified sustainable wood into its products. The interior trim of the BMW i3 is made of high-quality eucalyptus and is certified by the prestigious Forest Stewardship Council (FSC).
We will continue and strengthen our efforts to develop a sustainable and transparent supply chain for natural materials through dialogue and collaboration with suppliers and NGOs, and participation in industry initiatives.