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BMW SUSTAINABILITY & CSR FORUM

BMW Backs World Environment Day National Event with a Three-Part Contribution

· The BMW Brilliance Sustainability Report 2021 was released on June 5th

· BMW sponsored 20 all-new BMW i3 as green shuttle service for the event

· The first phase of the BMW Beautiful Homeland Initiative was launched to contribute to Liaoning Province's ecological civilization

(Shenyang) From June 4th to 6th, the 2022 World Environment Day National Event under the theme of "Work Together to Build a Clean and Beautiful World" took place in Shenyang, Liaoning Province. BMW presented a three-part contribution to celebrate Environment Day and fulfill its commitment to a clean and beautiful world with practical actions:

· On June 5th, BMW Brilliance officially released the BMW Brilliance Sustainability Report 2021 (hereinafter referred to as the “Sustainability Report”) and uploaded it to the official website of the United Nations Global Compact for global release.

· BMW sponsored its new BEV products, 20 all-new BMW i3, as green shuttle service for the National Event to play its part in the "Reduce a Little" action.

· BMW recently launched its "BMW Beautiful Homeland Initiative" program to support the Liaohekou National Nature Reserve in Liaoning province, and further contribute to China and Liaoning Province’ s biodiversity conservation and ecological civilization construction.

As the first German automotive manufacturer to join the Business Ambition for 1.5℃ campaign launched by the Science-Based Targets Initiative, the BMW Group views the environment as an important stakeholder. Jochen Goller, President & CEO of BMW Group Region China, said: "We are placing sustainability and circular economy at the core of our China strategy. Since many years, BMW has established a transparent reporting system to measure science-based sustainability goals. In 2021, our BMW Group entities and joint ventures in China have made solid contribution towards combating climate change and promoting circular economy. Driven by ‘At Home in China’, BMW will step up efforts to drive green transformation and work together with society to build a clean and beautiful home-land."

At Home in China, BMW Group continues to create value for Chinese customers, the local society and industry for mutual growth. BMW believes that how we respond to climate change and how we handle the limited resources available will decide the future of society and, also, of the BMW Group. As a premium manufacturer, we are taking responsibility, here and now, for future generations.

Advancing Towards a Clean and Beautiful World with New Heights in Sustainable Development

Today, the world is faced with multiple challenges, such as climate change and resource scarcity. There is no time to lose to work together for a clean and beautiful world. On June 5th, BMW Brilliance officially released the BMW Brilliance Sustainability Report 2021, its ninth sustainability report since 2014, conveying to the whole society the company's proactive efforts and solemn commitment to tackling global challenges.

"In 2021, BMW Brilliance became - for the first time - the largest producer of premium cars in China. In the meantime, BMW Brilliance has also achieved excellent results in sustainable development governance with CO2 emissions per vehicle produced decreased by 7.8% year-on-year in 2021. Our implementation of sustainability strategy proves that a win-win situation can be achieved for both enterprise operational performance and sustainable development,” said Dr. Franz Decker, President & CEO of BMW Brilliance Automotive Ltd., “Shenyang is where the joint venture was born and grew up. We’re committed to the Group’s sustainability strategy while pursuing high-quality development, contributing not only to the economic and social development of Liaoning old industrial base, but also to the ecological civilization construction of Liaoning and Shenyang. "

Taking action to combat the effects of climate change is a top priority for BMW Brilliance's business. BMW Brilliance proactively monitors potential climate-related risks and has made improvements in green development throughout its entire value chain. In 2021, BMW Brilliance participated in the “National Green Power Transaction” pilot scheme and ranked first nationwide in purchasing renewable electricity. For a green supply chain, BMW Brilliance implemented the Supply Chain Match Plan China program in the same year. BMW Brilliance developed eight working packages including raw materials and parts, renewable electricity, and environment, health and safety to comprehensively promote sustainable development for suppliers.

BMW Brilliance has been focused on accelerating circularity with the “Secondary First” approach. In 2021, BMW Brilliance made great strides by increasing the volume of materials recycled; in particular, BMW Brilliance recycled 71,000 tons of scrap steel with its newly built closed-loop production system for steel recycling. In the same year, BMW Brilliance extended the life cycle of its products by continuously expanding the recycling and remanufacturing of parts and components, recycling more than 867 tons of spare parts. BMW Brilliance also recycled a much higher volume of high-voltage batteries (HVBs), successfully realizing a closed-loop recycling system for power batteries’ raw materials in May 2022.

Under the umbrella of BMW Group’s Sustainability Strategy, BMW Brilliance kept its leading position in sustainable development in 2011, remaining top-ranking in China’s Automotive Green Development Index and nominated for “UNGC China Network Best Enterprise Practice Award” for three consecutive years. Shenyang Production Base was also awarded the "National Green Plant" title for the fifth consecutive year.

Accelerating the Electric Offensive for a Clean and Beautiful World

As the green shuttle service for the national event, the all-new BMW i3 launched in March is BMW's first all-electric mid-size sports sedan. The all-new BMW i3 has achieved carbon reduction throughout its entire life cycle, including design and development, supply chain, production, usage and recycling. The drive unit adopts an excitation synchronous motor that reduces dependence on rare metal resources and rare earth. All components are produced using 100% renewable electricity with advanced equipment being leveraged to continuously optimize energy consumption efficiency, vividly interpreting the BMW concept of "a green car produced in a green plant”.

The BMW Group regards accelerating electrification as the main driver of its sustainability strategy. In 2022, the BMW Group is expected to further accelerate the electric offensive to have 15 BEVs including pre-series models in production, covering about 90% of all segments in the global line-up. Including the newly launched all-new BMW i3 and first-ever BMW i7, BMW has presented five BEVs to the Chinese customers.

BMW spares no efforts in providing electric travel services, rapidly developing charging infrastructure and actively promoting charging with green energy. By the end of 2021, BMW has integrated 365,713 public charging pillars, spanning 318 cities across the country. BMW also sees dealers as strategic partners in its sustainability strategy. By the end of 2021, there were 554 BMW NEV dealer outlets across China, an 11.9% increase compared with the previous year.

Promoting Biodiversity for a Clean and Beautiful World

BMW fully agrees with the Chinese government that biodiversity is the foundation, objective and means of sustainable development. BMW actively supports the Liaoning and Shenyang governments in their goal of building a green Liaoning and a green Shenyang to jointly build a clean and beautiful world.

Liaohekou National Nature Reserve is located at the mouth of Liaohe River in Liaodong Bay. The Liaohe River flows into the sea in Liaoning Panjin, forming vast stretches of reed wetlands that provides an ideal habitat for a variety of rare and endangered wild animals. The reserve is on the East Asia-Australasia migration route and is an important stopping place for the North-South migration of red-crowned cranes, and a breeding ground for the world’s largest population of black-billed gulls. Therefore, it is of high conservation value.

On May 22nd, the International Day for Biological Diversity, BMW officially kicked off the “BMW Beautiful Homeland Initiative”, announcing a package plan to support the Liaoning Liaohekou National Nature Reserve in three main ways: supporting the overall running of the Reserve, raising awareness of biodiversity and its importance, and promoting the image of the Reserve. BMW will take a range of concrete actions including donating vehicles for patrol and animal rescue, building an eco-friendly bird hide, developing a set of nature education courses, and organizing nature education training. This means, with the “At Home in China” philosophy in mind, BMW is extending its sustainability strategy with forward thinking and fulfilling its social responsibilities with innovative solutions so it can make greater contributions to China’s ecological civilization construction.

Launch of BMW JOY Home Self-Strengthening Movement
Contributing to Rural Education Revitalization
BMW Holds 2021 BMW Corporate Social Responsibility Forum Successfully

(Beijing) On November 30th, the 2021 BMW Corporate Social Responsibility Forum themed “We Together” was successfully held in Beijing. At this forum, BMW China Automotive Trading Ltd. and BMW Brilliance Automotive Ltd. took the opportunity of the 10th anniversary of the BMW JOY Home program to jointly launch the future-oriented “Self-Strengthening Movement” in partnership with the China Education Development Foundation. The Movement aims to provide support for 52 schools in China’s last 52 counties that achieved poverty alleviation in 2020 and include them into the BMW JOY Home program from 2021 to 2023. Meanwhile, it will promote the balanced development of rural education and contribute to rural revitalization by carrying out on-campus sports guidance and teacher training on “Joyful Football” and “Joyful Sports”.

A fresh start for a new era, drive transformation with social needs

2021 marks the 10th anniversary of the BMW JOY Home program. As the earliest BMW CSR program to extensively engage BMW dealers and customers, the BMW JOY Home program has seen 95 BMW JOY Home schools established in 29 provinces and autonomous regions across China and over 400 activities held, benefiting more than 130,000 left-behind and migrant children. Over 10,000 BMW associates, dealers and customers have participated in volunteer activities.

With China’s success on poverty alleviation, the social issue of rural left-behind children and urban migrant children has been improved significantly. Rural revitalization and beautiful countryside construction have become key social issues. At the same time, in response to the Opinions on Comprehensively Strengthening and Improving School Physical Education in the New Era released by the Ministry of Education of the PRC and in order to improve the physical education of rural schools, BMW JOY Home launched the future-oriented “Self-Strengthening Movement”: From 2021 to 2023, BMW JOY Home will support 52 schools in China’s last 52 counties that achieved poverty alleviation in 2020, to build them into 52 sports model schools; and provide professional training for physical education teachers and benefit more than 100,000 students; explore sports model suitable for rural schools to promote the rural education revitalization. This year, BMW JOY Home has supported 16 BMW JOY Home schools in Yunnan and Sichuan provinces and organized physical education teachers training for these newly included schools. Through its own social influence and an innovative enabling approach, the program continuously engages stakeholders, caring members of society and NGOs to help BMW JOY Home become a sustainable enabling platform with snowball effect.

Build a warm heart platform to engage stakeholders

Extensive stakeholder engagement has always been an exclusive advantage of BMW CSR. In response to the unexpected severe natural disaster in Henan this year, BMW quickly started the emergency disaster relief and established a charity donation platform via the China Education Development Foundation-BMW Warm Heart Fund for stakeholders and the public, which has brought together the positive energy of BMW warm heart family and all walks of life. It gave full play to the function of BMW Warm Heart Fund as a platform to extensively engage stakeholders and became a benchmark in the industry. At this forum, BMW warm heart customers from Henan and Qinghai provinces shared their touching stories in Henan flood fighting and disaster relief via the video. At the very first of the sudden flood in Henan, these warm heart customers actively organized donations and sent relief and living supplies to people in the disaster area. Dealers are also important partners and stakeholders of BMW. Guided and supported by BMW CSR, they actively carry out CSR activities in local communities, widely motivate BMW customers to participate in and contribute to the sound development of local communities.

Stay true to original mission and continuously contribute to Chinese society for long-term development

BMW CSR in China has always been contributing to building a “beautiful China” with innovative thinking and has integrated education into program management and implementation. The Children’s Traffic Safety Education as BMW’s first CSR program in China has lasted for 17 years. This year the program is enriched with the theme “Propriety”, which has been applied to the current traffic safety education. It is “transforming traditional culture for innovative development” in an innovative way. The power of CSR lies not only in change, but also in persistence. This year also marks the 15th anniversary of the BMW China Culture Journey program and the 5th anniversary of the Tsinghua BMW Innovation Center for Intangible Cultural Heritage Safeguarding. An exhibition on social innovation has been successfully held, displaying the intangible cultural heritage creative works supported by BMW CSR and Tsinghua University’s Academy of Arts and Design.

Above all else, this year, BMW adds “environmental protection” to its current CSR pillars - “cultural preservation” and “social development”. The BMW Beautiful Homeland Initiative is committed to biodiversity conservation and national parks construction in China. The first phase of the program will focus on supporting the Liaohekou National Nature Reserve in Liaoning province. The launch of the program right signifies that BMW is expanding its CSR focus in China with innovative thinking to contribute more to the Chinese society in the post-pandemic era. No Premium Without Responsibility. BMW always sees “contributing to a better society” as its mission and has engaged a wide range of stakeholders through its CSR programs to solve real social problems and make long-term contributions to building a better Chinese society.

Leading Green Development of Automotive Industry and Reinforcing
Sustainability Efforts Across Value Chain
BMW Brilliance Launches Sustainability Report 2020

(Beijing) On June 7th, BMW Brilliance officially released BMW Brilliance Sustainability Report 2020 (hereinafter referred to as the “Sustainability Report”), its eighth sustainability report since 2014. BMW Brilliance continues to lead the green development of the automotive industry, again ranking #1 in the Automotive Enterprise Green Development Index in 2020. Continuing to use 100% renewable electricity in its Shenyang production base, BMW Brilliance was also awarded the “National Green Plant” title for the fourth consecutive year. On the basis of a 12.3% increase in production, BMW Brilliance also achieved a reduction of 7.5% in CO2 emissions per vehicle produced in 2020 (an 84% reduction compared to 2016).

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Co., Ltd. said, "BMW Brilliance has been publishing its Sustainability Report annually since 2014 under the guidance of BMW Group. This report is not only our transparent and responsible disclosure, but also our answer to BMW’s sustainability commitment, as well as a review of our contribution to society. We will reinforce our sustainability efforts across the value chain and enable sustainable development with the most advanced technology and the latest technological innovations. We will also utilize our core advantages to help solve the urgent problems faced by the industry, society and the world, and make more practical contributions to local communities and Chinese society."

Under the umbrella of BMW Group’s 2030 Sustainability Strategy, BMW Brilliance refined three sustainability strategic directions in 2020: climate change actions; accountable, circular, and resilient value chain; and responsible corporate citizenship.

Tackling Climate Change Challenges with Carbon Reduction Actions to Shape a Sustainable Future

Guided by BMW Group's 2030 sustainability goals, BMW Brilliance continues to promote low-carbon transformation in production and logistics through methods such as optimizing energy management and expanding low-carbon transportation modes.

In 2020, the all-electric BMW iX3 officially made its world premiere and was released to the global market. BMW Brilliance HVB Centre II had its official opening, becoming the first location worldwide to produce fifth-generation BMW high-voltage batteries. The new BMW 5 series plug-in hybrid features BMW’s innovative battery technology, improving its e-range by 42% under pure electric mode compared to previous generations.

In 2020, for each vehicle produced BMW Brilliance reduced energy consumption by 7.4%, water consumption by 17.9%, and waste for disposal by 60% compared to 2019. In terms of logistics, 78% of BMW Brilliance’s finished vehicles could wholly or partially be transported by rail, reducing CO2 emissions per unit for outbound logistics by 51.3% compared to 2014.

At the same time, BMW Brilliance began laying the foundations for the low-carbon transformation of its supply chain, launching the Supply Chain Climate Change Initiative to jointly reduce the carbon footprint of the supply chain together with its supplier partners. In addition, BMW Brilliance is committed to enhancing the responsibility of the value chain, actively driving suppliers to fulfill their social responsibilities by developing a “Supplier Social Responsibility Code of Conduct”. For its outstanding performance in sustainable supply chain management, BMW Brilliance received the United Nations Global Compact China Network's “2020 Best Enterprise Practices for Achieving SDGs”.

BMW Brilliance has also advanced a number of initiatives and made significant progress in raw materials and batteries recycling, parts remanufacturing and green packaging. Working closely with steel manufacturing partners, BMW Brilliance created its first closed-loop production system for recycled steel to continuously promote the recycling of raw materials and further implement the concept of sustainability in the supply chain. In 2020, BMW Brilliance achieved a cumulative recycling volume of 45,000 tons within the loop.

Empowering Premium Performance with Industry 4.0 Technology

On the basis of implementing Total Quality Management and a “Zero Defect" goal, BMW Brilliance is extensively applying artificial intelligence and 5G technology to improve its processes and product quality. The products delivered by BMW Brilliance plants are of the highest quality overall among BMW Group’s global plants network. This accomplishment demonstrates that innovative technology greatly enhances sustainable development.

In 2020, several BMW Brilliance car models won the 2020 China Automobile Customer Satisfaction Index (CACSI) from CAQ. The new BMW 3 series scored the five-star plus rating among all vehicles tested by CATARC in the 2020 C-NCAP.

At the same time, BMW Brilliance's accident frequency rate (per one million hours worked) was down 47.1% from 2019.

Creating Shared Value for Chinese Society as a Responsible Corporate Citizen

BMW Brilliance believes that sustainable development goes beyond environmental protection and low-carbon initiatives—caring for people and society is as important as tackling climate change and building a responsible value chain.

BMW Brilliance’s sustainable growth is powered by its people and business partners. Despite the challenges of the COVID-19 pandemic, BMW Brilliance is still actively investing in talent development, and continuously modelling an inclusive, diverse and empowering culture for its employees. BMW Brilliance has also developed a sustainable training and talent development ecosystem for its employees, dealer partners and future talents to help them reach their full potential while achieving BMW Brilliance’s business goals.

Guided by strategic CSR,BMW continues to advance its three flagship CSR programs - BMW Children’s Traffic Safety Education, BMW China Culture Journey and BMW JOY Home - in a flexible and innovative manner, and takes practical actions to fulfill its long-term commitments to local communities and Chinese society. In 2020, the total number of BMW CSR activities’ beneficiaries exceeded 11.5 million.

The year of 2021 marks the beginning of China’s 14th Five-Year Plan. Under the guidance of BMW Group’s sustainability strategy, BMW Brilliance will continue to act as a role model in shaping the future of mobility with a green, low-carbon and sustainable individual mobility ecosystem.

New BMW Warm Heart Fund Launched for Stronger CSR Efforts in China
BMW Holds 2020 BMW Corporate Social Responsibility Forum

(Beijing) On September 15th, The We Together-2020 BMW Corporate Social Responsibility Forum was successfully held in Beijing. BMW China and BMW Brilliance expressed their respect and admiration for those who have made significant contributions to the society, and shared with the audience what BMW CSR has been thinking and doing to support the battle against the COVID-19 Pandemic. BMW China and BMW Brilliance donated 10 million RMB to the China Education Development Foundation to start the China Education Development Foundation BMW Warm Heart Fund, and from 2020 onward, BMW China and BMW Brilliance pledge to donate 10 million RMB every year to increase the investment in BMW Warm Heart Fund. As China manages to contain the virus and begins to recover, BMW plans to further boost its CSR efforts and stronger commitment to China’s social development, opening a new chapter of BMW Warm Heart Fund.

Mr. Jochen Goller, President and CEO of BMW Group Region China, said, “On behalf of BMW China, I would like to express the most heart-felt respect to all medical workers who have been fighting the COVID-19 virus on the frontline. BMW Group, everyone in Munich and in China, we are standing unwaveringly behind China and the Chinese people. Since March, together with our stakeholders, we have implemented comprehensive measures to recover from the crisis. BMW has once again proven that we can handle a crisis and turn it into progress. However, the fast recovery of our business in China would not have been possible if not for the close connections we have built with our stakeholders and local communities. The pandemic is a compelling reminder for us all: We Together, creating shared value for society, will become the source for sustainable development. For BMW, we will continue to increase the investment in our Warm Heart Fund and fulfill our commitment to China society.”

“A Great company has a higher purpose than just achieving profit,” commented Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd., “Contributing to local communities, stakeholders and the society is not a “nice-to-have” option for BMW Brilliance, but a must-do on our priority list. On February 17th, we managed to restart our production and now our sales are bouncing back. There are other critical milestones achieved during the pandemic: our new plant expansion is on schedule, and our new High Voltage Battery Center II was unveiled in Shenyang, along with the BMW iX3 China Premiere. This was only possible thanks to the concerted efforts of all our stakeholders, partners, the Chinese government and people. BMW Brilliance will continue to strengthen our connections with our stakeholders and local communities and strive for a better society in China.”

Mr. Wang Jianguang, Vice Secretary-General of China Education Development Foundation said, “China Education Development Foundation will make full use of our own resources and strengths in education and work with BMW to keep improving and upgrading their core CSR programs, creating more shared value for the society. We will also study the real social problems and explore solutions together with BMW, enabling more parties to join our efforts in building a better Chinese society.”

BMW is committed to contributing to the society in the post-pandemic era

Businesses are running into unprecedented challenges due to the COVID-19 pandemic. Yet BMW is carrying on with its CSR efforts in China with innovative solutions, delivering its long-term commitment to China persistently. For instance, the 16th annual BMW Children’s Traffic Safety Education program adapted to online activities in May and was able to organize an offline roadshow recently in Chongqing as China managed to successfully contain the virus. The BMW Culture Journey, another long-term program running into its 13th year, just concluded its visit to Liaoning, and BMW is going to support the province to promote its cultural tourism with innovate ideas and effective measures. The BMW JOY Home joyful football training was unfortunately canceled due to the virus, but BMW did not stop there. It helped build new football fields in 8 BMW JOY Home schools and donated pandemic-prevention materials worth 700,000 RMB to 44 schools nationwide for left-behind and migrant children.

Since the outbreak of COVID-19 this year, BMW has been targeting our support to the most pressing needs in the society. It donated a total of 35 million RMB to support China’s battle against the pandemic and helped to establish the first national mental health and counselling hotline for frontline medical personnel, patients and volunteers. The BMW stakeholders have come to help as well – the dealers and BMW Warm Heart Customer Clubs initiated donations of cash and various most needed materials. As China moves to the other side of the pandemic and turns its focus on the prevention and early control of the virus, BMW will be following the pandemic closely, ready to follo the needs of our communities and contribute to the national anti-pandemic efforts.

At the forum, Mr. Wang Jiansong from Tsinghua BMW Innovation Center for Intangible Cultural Heritage Safeguarding presented the latest innovative ideas and products. After that, guests were invited to share their stories and thoughts of participating BMW CSR programs, including Ms. Wang Xiaoqin, an intangible cultural heritage inheritor, the principal of one of the BMW JOY Home schools and representatives from the BMW Warm Heart Customer Club and dealers. A special session was dedicated to honoring those who fought hard in the battle against COVID-19. Mr. Huang Dawei, a BMW car owner who volunteered in Wuhan, Mr. Xu Chenhua from the media, Ms. Ni Zijun, leader of the mental health counselling hotline and medical staff from Wuhan joined the session and shared touching stories of fighting the pandemic.

BMW is constantly refreshing its understanding of doing CSR. As China is effectively entering the post-pandemic era, corporate social responsibility is more important now than ever before and a great company must have higher purpose than making profits. Large companies, with bigger power at their disposal, must do more and create more shared value for their customers, employees, suppliers, community and the society.

In China for China – BMW Warm Heart Fund Starts New Chapter

After the Wenchuan earthquake in 2008, the BMW Warm Heart Fund was established jointly by BMW China and BMW Brilliance, which was the first corporate fund in China’s auto industry. Since the Wenchuan earthquake, the BMW Warm Heart Fund has always been among the first to respond to major disasters or epidemics. It has developed into a platform that widely engages stakeholders to make contributions to the Chinese society together, accumulatively donated over 97 million RMB in charitable causes since 2008.

This year’s BMW CSR Forum witnessed the launch of a new BMW Warm Heart Fund – BMW China and BMW Brilliance announced that 10 million RMB are donated by the two organizations to launch the new BMW Warm Heart Fund in partnership with China Education Development Foundation, starting a new phase of the Warm Heart Fund. In the next three years, BMW China and BMW Brilliance will continue to make donations to this Fund every year, and leverage the new Fund to engage stakeholders in BMW CSR programs and contribute to China’s social development more effectively and efficiently.

No.1 in 2019 Automotive Enterprise Green Development Index
BMW Brilliance Sustainability Report 2019 Launch

• BMW Brilliance ranked #1 in 2019 Automotive Enterprise Green Development Index and retained National Green Plant status in China
• BMW Brilliance has achieved 100% renewable electricity in Shenyang production base, and CO2 emissions from production decreased by 65.1%
• In 2019, BMW Brilliance NEV sales continued to grow at a rapid pace, increasing over 15 times to 32,246 vehicles in two years
• BMW Brilliance HVB Centre Phase II is about to open, BMW Brilliance requires its Tier-1 and Tier-2 suppliers of High-Voltage Battery to use 100% regenerative energy in the production of BMW Gen5 HVB

Beijing: On July 23, the First 2020 Sanlian Humanistic City Award "My City Forum" and BMW Brilliance Sustainability Report 2019 Launch was successfully held. At the forum, BMW Brilliance released its seventh Sustainability Report since 2014 - "BMW Brilliance Sustainability Report 2019" (hereinafter referred to as the Sustainability Report). According to the Sustainability Report, BMW Brilliance ranked #1 in the Automotive Enterprise Green Development Index and retained its National Green Plant status in China. By the end of 2019, BMW Brilliance has achieved 100% renewable electricity in the production, and become a role model for implementing smart and green manufacturing in China.

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd. said, "The COVID-19 pandemic in 2020 has made mankind face hitherto unknown challenges. COVID-19 has taught us to be better, to stay humble. It’s shown us that we are not perfect, and to better prepare for unpredictable challenges. The pandemic calls attention to sustainable development, and humankind needs to act right now. At the crossroads of economic recovery, BMW Brilliance will unswervingly choose the green, low-carbon and sustainable way to create long-term economic and social benefits. BMW Brilliance has released the sustainability report for seven consecutive years, demonstrating BMW Brilliance’s long-term dedication to sustainable development and transparency. Over the years, BMW Brilliance’s leading sustainability philosophy, capability and performance has had a long-term impact on the local communities of Tiexi, Shenyang, Liaoning and even China's auto industry."

The Sustainability Report indicates that BMW Brilliance has made great achievements in the field of sustainable development across the entire value chain of China’s automotive industry.

Build A Greener and Safer Product Lineup

Committed to quality products, BMW Brilliance strives to create safer and greener products to protect the health and safety of consumers. Thanks to the improvement of efficient dynamics and the NEV product portfolio’s continuous expansion, BMW Brilliance’s Corporate Average Fuel Consumption reduced to 5.79 L/100 km in 2019. The average fleet CO2 emissions of BMW Brilliance automobiles decreased to 137.8 g/km.

In 2019, BMW Brilliance's NEV wholesale volume continued to grow at a rapid pace, increasing over 15 times to 32,246 vehicles since 2017. Despite the impact of the pandemic, BMW's sales of NEV in China increased by 49.1% in the first six months of 2020.

In 2020, with the continuous forging a complete, closed-loop E-mobility ecosystem, BMW Brilliance HVB Centre Phase II will be officially put into operation and use. The fully-electric BMW iX3 will be manufactured exclusively in Shenyang and be exported to the global market. Not only will it further strengthen BMW’s premium NEV line-up for the Chinese market, the new model will also put BMW Brilliance’s "In China, For China and For the World" commitment into practice.

In addition, BMW Brilliance continues to provide more charging facilities and enable more dealerships to sell and service NEVs. By the end of 2019, BMW Brilliance had more than 130,000 public charging pillars in over 200 cities in China. The number of NEV dealer outlets increased to 450 from 336 in 2018, achieving full coverage of all Tier-1 and Tier-2 cities.

In June this year, BMW inked a deal with State Grid EV Service, investing in China's "new infrastructure" initiative that has 5G and NEV charging infrastructure at its core. It will give BMW owners access to over 270,000 charging pillars along Chinese highways by the end of 2020, more than double the present tally, including 80,000 DC charging pillars for fast charging. As a result of the cooperation, BMW will be able to offer zero-emission, long-distance travel across China for the first time with direct current charging services located along more than 50,000 km of highways.

Industry Leader and Driver of Green Development Across the Entire Value Chain

BMW Brilliance’s production methods stand for high-quality transformation, so BMW Brilliance has become a role model for implementing smart and green manufacturing in China, applying Industry 4.0 technologies and processes in ways that improve quality and boost productivity. In 2019, BMW Brilliance became the first automaker in the world with 5G connectivity in its Shenyang plants, providing a unique opportunity to test new innovations. Meanwhile, BMW Brilliance uses 100% renewable electricity including the generation of solar power electricity, and the purchase of wind power electricity and International Renewable Energy Certificates(I-RECs).

According to Dr. Johann Wieland, “Being the leading sustainable provider of premium individual mobility, BMW Brilliance has taken a clear-cut stand in promoting green development. It has not only become a role model for implementing smart and green manufacturing, but also driven its suppliers to fulfill their commitment of sustainable development.”

BMW Brilliance cascades sustainability commitments to their Tier-1 and Tier-2 suppliers of High-Voltage Battery to use 100% recycled aluminum, at least 50% secondary material for cobalt and nickel, and 100% regenerative energy for BMW Gen5 HVB production.

Deeply Connect with Local Communities and Society to Promote Recovery

Since 2006, BMW Brilliance has been the biggest taxpayer in Shenyang for 15 consecutive years; since 2016, it has been the largest taxpayer in Liaoning Province for 4 consecutive years. Moreover, BMW Brilliance is committed to training local talents and maintaining its position as the most attractive employer in China's automobile industry. In 2019, the total number of employees of BMW Brilliance increased to 19,824, of which nearly 86% of the management is held by Chinese employees and 82% of the employees are from Liaoning Province.

At the same time, through "BMW China Culture Journey”, which empowers inheritors to promote the inheritance and development of intangible cultural heritage, "BMW Children's Traffic Safety Education”, which engages stakeholders as volunteers to advocate traffic safety, and "BMW JOY Home”, which engages dealers and warm-hearted car owners to care for the physical and mental development of left-behind children and migrant children, BMW's CSR programmes have achieved an over 30-fold increase in beneficiaries, reaching 2,628,710 people in total. Thanks to the excellent performance of BMW's CSR programmes, BMW Brilliance was honored with the UN Global Compact’s 2019 Best Enterprise Practices for achieving Sustainable Development Goals (SDGs). In the beginning of this year, in the face of the COVID-19 outbreak, BMW China and BMW Brilliance have made four donations totalling 35.7 million RMB, funded the first free 24/7 national mental health and counselling hotline, and donated epidemic prevention supplies to left-behind and migrant children in 44 BMW JOY Homes across the country.

In 2020, as the strategy of "In China, For China and For the World” becomes a reality, BMW Brilliance will join hands with stakeholders to accelerate the pace of sustainable development, and contribute to China's economic recovery and the construction of a resilient economy.

Take Our Responsibility, Share BMW Joy
BMW Holds 2019 BMW Corporate Social Responsibility Forum
Delivers CSR innovations for sustainable social development in China

(Beijing) On May 15th, BMW’s “Take Our Responsibility, Share BMW Joy – 2019 BMW Corporate Social Responsibility Forum” was successfully held in Beijing. In conjunction with the 10th anniversary of the China Charity Federation BMW Warm Heart Fund and the 15th anniversary of BMW Children’s Traffic Safety Education, BMW took the opportunity to reflect on the past to enlighten the future at the forum, releasing a series of corporate social responsibility (CSR) innovations that included:
• The launch of the “Children’s Traffic Safety Education Guide” in collaboration with the China Children’s Press and Publication Group, which is guided by the Traffic Management Bureau of the Ministry of Public Security and funded by the China Charity Federation BMW Warm Heart Fund;
• The start of the writing process for the “Joyful Sports Guidebook”, which focuses on the capacity building of rural teachers and social volunteers to promote the healthy development of left-behind children and migrant children, also funded by the China Charity Federation BMW Warm Heart Fund

These two guidebooks provide volunteers, teachers, philanthropists and charity organizations with lesson plans and educational resources to address the lack of curriculum for children’s traffic safety education and physical education for left-behind children respectively, realizing the BMW CSR philosophy of enabling.

Mr. Goller, President and CEO of BMW Group Region China, said: “The BMW Group, as a responsible company and a pioneer of future mobility, has been innovating excellent products and pursuing sustainable development. We want to contribute to a better life for everyone, just as what the Chinese government has pledged to its people – better jobs, better environment, and better materials for living. CSR is part of BMW Group’s sustainable development. It is an extension of our business success. BMW Children’s Traffic Safety Education is a fine example of our CSR programs that demonstrates BMW Group’s business ethics and commitment to the society.”

Dr. Wieland, President and CEO of BMW Brilliance Automotive Ltd., said: “At BMW Brilliance we believe that for a company to grow from Good to Great, it must stand for more than just the sales performance and profitability. A Great company should also be a responsible company, which engages with society and social issue. The development of China Charity Federation BMW Warm Heart Fund in the past 10 years and its contributions fully demonstrate our long-term commitment to contributing to the Chinese society, and how we are engaging our stakeholders and inspire them to contribute to a better and brighter China.”

Mr. Bian Zhiwei, Secretary-General of the China Charity Federation, said: “Enterprises grow by creating wealth, and develop by taking responsibility. As BMW grows and develops, it is also creating opportunities for members of the society to participate in social welfare by leveraging its own extensive resources and the China Charity Federation BMW Warm Heart Fund. This is precisely the perfect example of sustainable CSR development. All enterprises are doing their best to grow in support of our national plans for poverty alleviation, but we have to also remember our responsibility - help those that need help to contribute to a better society.”

Responds to real social development needs, realizes long-term commitment to Chinese society

In 2005, BMW launched BMW Children’s Traffic Safety Education, kicking off BMW Corporate Social Responsibility in China. This year marks the 15th anniversary of the project; moving forward, BMW Children’s Traffic Safety Education will be producing the Children’s Traffic Safety Education Guide in collaboration with the China Children’s Press and Publication Group, guided by the Traffic Management Bureau of the Ministry of Public Security and funded by the China Charity Federation BMW Warm Heart Fund. This guidebook will provide practical children’s traffic safety education lesson plans and samples of volunteer activities for teachers and volunteers. This publication of this guidebook will promote the standardization of volunteer services and the development of children’s traffic safety education delivered by volunteers. At the same time, BMW will collaborate with local traffic police and authorized BMW dealers and BMW Warm Heart Customer Clubs to establish BMW Children’s Traffic Safety Ambassador training bases nationwide. The training bases will serve as a public platform to train volunteers to deliver children’s traffic safety education knowledge in schools and local communities.

Engages dealers, customers, associates and other stakeholders to create shared value for Chinese society

In 2008, BMW China and BMW Brilliance joined hands with the China Charity Federation to set up the China Charity Federation BMW Warm Heart Fund, marking a new phase for BMW Corporate Social Responsibility with broad stakeholder engagement. Funded by the China Charity Federation BMW Warm Heart Fund, BMW JOY Home is a BMW exclusive stakeholder engagement program. Since its launch in 2011, it has engaged nearly 10,000 BMW customers, authorized dealers and associates to participate in CSR activities. In 2017, BMW JOY Home completed its upgrade from charitable donations to the empowerment of its beneficiaries. Moving forward, the China Charity Federation BMW Warm Heart Fund is funding the “Joyful Sports Guide”, which is aimed at rural teachers and social volunteers, and contains 30 demonstration videos of joyful sports lessons to effectively help them develop appropriate sports games for children. At the same time, the guidebook will also be widely used by public volunteers as a guide for relevant social welfare activities.

While actively participating in BMW's CSR activities, BMW’s stakeholders also contribute to society and create shared value. Over the years, BMW warm-hearted customers have on their own initiative established 19 Warm Heart Customer Clubs in 18 cities nationwide. Motivated by BMW CSR, the Xi’an Xiyuehui BMW Warm Heart Customer Club transformed from a social organization into a non-profit organization and became officially registered as Xi’an Xiyuehui Student Charity Association this year – this is another successful example of BMW CSR stakeholder practice’s social outcome. BMW associates, as important stakeholders of BMW, are also very active in social welfare. BMW Shenyang Associate Social Responsibility program, for example, has been running for 10 years and made significant contributions to local communities. In order to guide associates to carry out corporate volunteer activities in a more systematic and standardized manner, BMW set up a BMW Corporate Volunteer Association to encourage more employees to become volunteers and contribute to the community, and work towards the sustainable development of the Chinese society with BMW.

First Comprehensive Response to UN Sustainable Development Goals (SDGs)
BMW Brilliance Publishes Sustainability Report 2018
Promotes Sustainable Development Throughout Value Chain with Enhanced Responsibility

BMW Brilliance gave a comprehensive response to the United Nations Sustainable Development Goals (SDGs) for the first time, aligning its business with the goals • BMW Brilliance’s electric vehicles sales volume totaled 21,438, increasing ninefold from 2017 • In 2018, BMW Brilliance's Corporate Average Fuel Consumption reached 5.84L/100km (a 5.3% decrease from 2017), maintaining top ranking among automobile joint ventures in China

Shenyang: On September 9th, the BMW Brilliance Automotive Ltd. Sustainability Report 2018 (hereinafter referred to as the Sustainability Report) was officially launched. According to the Sustainability Report, BMW Brilliance's Corporate Average Fuel Consumption reached 5.84L/100km (a 5.3% decrease from 2017), maintaining top ranking among automobile joint ventures in China.

As a member of the United Nations Global Compact, BMW Brilliance integrated the United Nations Sustainable Development Goals (SDGs) into its business for the first time and actively fulfilled its social responsibilities to achieve the SDGs. The contents of the Sustainability Report corresponded to the SDGs. To reinforce the disclosure of responsibilities, BMW Brilliance invited an authoritative third-party audit agency to conduct data assurance on 18 prioritized Key Performance Indicators for the first time on the basis of compiling the report in accordance with the latest GRI Standards.

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd., said, “The United Nations Sustainable Development Goals (SDGs) are part of a global action plan to shape economic progress in an environmentally compatible manner and in accordance with social equity, and at BMW Brilliance, we are convinced that companies can make a positive contribution to achieving these goals. BMW Brilliance has a proven track record of delivering on our sustainability commitments. Our aspiration to be the leading sustainable provider of premium individual mobility across the entire value chain of China’s automotive industry is in full stride with our latest products and innovations. We are producing technology-leading BMW vehicles, engines, and high voltage batteries, and pioneering E-Mobility in China.”

Upholding the vision to be the leading sustainable provider of premium individual mobility across the entire value chain of China’s automotive industry, BMW Brilliance has achieved significant results across its three main pillars: Products and Services, Production and Value Creation, and Employees and Society.

Leading Future Mobility With Sustainable Products and Services

BMW Brilliance strives to provide responsible and sustainable products and services that reduce emissions and keep our customers safer and healthier. BMW Brilliance’s Corporate Average Fuel Consumption reached 5.84L/100km in 2018, a 5.3% decrease from 2017, and remains the top-ranked joint venture in China in terms of corporate average fuel consumption achievement rate. This achievement not only benefited from the application of efficient dynamics technology, but also significant growth of electric vehicle production volume. In 2018, BMW Brilliance’s electric vehicles sales volume reached 21,438, a ninefold increase from 2017.

In terms of CO2 emissions reduction, BMW Brilliance’s average fleet CO2 emissions fell 5.4% in 2018, from 146.9g/km to 139g/km. Meanwhile, BMW Brilliance is creating an E-Mobility ecosystem. With innovative technology and superior R&D capabilities, BMW Brilliance is constantly promoting the development of new energy products and services, and has launched 5 electric vehicle models in the past 5 years. In 2018, BMW Brilliance laid the foundation for the Phase 2 extension of the High Voltage Battery Centre in Shenyang, which will support the production of the all-electric BMW iX3 in 2020. BMW Brilliance is also actively supporting for the infrastructure and service providers that enable electric vehicle mobility. By the end of 2018, BMW’s public charging network had expanded to more than 150 cities in China with over 80,000 charging pillars.

Setting an Example for Green and Smart Manufacturing

BMW Brilliance is a role model for green and smart manufacturing. All vehicles are manufactured using Industry 4.0 technologies and eco-efficient production processes - efforts that won BMW Brilliance the National Green Plant Award. BMW Brilliance is also a role model for “Intelligent Manufacturing in China”. Both Dadong and Tiexi have developed highly flexible production lines capable of producing traditional combustion engine vehicles and electric vehicles on the same assembly line.

By increasing its own renewable power generation capacity and purchasing wind power, BMW Brilliance’s CO2 emission free electricity consumption reached 43% in 2018, and forecast to reach 90% in 2019. At the same time, the continuous increase of logistics efficiency is also an important representation of its green production. By continuously optimizing the multimodal transport scheme and increasing the use of shipping and railway transportation, BMW Brilliance has reduced CO2 emissions per car in finished vehicle logistics by 43% since 2014.

While promoting its own sustainable development, BMW Brilliance also actively engages suppliers to implement responsible and sustainable production. In 2018, BMW Brilliance intensified the risk management of Environment, Health, and Safety (EHS). By implementing the new EHS Protection Agency (EPA) initiative, BMW Brilliance extended its risk management of the supply chain to N-tier suppliers, expanded the depth and breadth of supplier management, assisted the sustainable development of suppliers, and realized a win-win strategy across the value chain.

Rooted in China, Creating Shared Value for the Industry and Society

BMW Brilliance celebrated its 15th anniversary as a joint venture between BMW Group and Brilliance Group in 2018, and its emphasis on talent is key to its successful development for the past 15 years. In 2018, BMW Brilliance won six employer awards, including “Best Employer in China”, which are a testament to its outstanding performance in the field of human resources management.

As an advocate and practitioner of strategic Corporate Social Responsibility, BMW Corporate Social Responsibility is committed to creating shared value and implementing its long-term commitment to Chinese society with practical actions. The year 2018 was marked with a series of milestones. BMW China Culture Journey debuted the Yushu Impression series, which aims to achieve cultural poverty alleviation by creating shared value. The BMW Children’s Traffic Safety Education program launched "BMW Children’s Traffic Safety Ambassador" in school for the first time, engaging volunteers to go into nearly 200 schools across the country to promote children’s road safety education, benefiting more than 70,000 teachers and students. The program also set a new GUINNESS WORLD RECORDS™ title - "Largest traffic conducting lesson". BMW held the first BMW JOY Home Football Tournament Summer Camp, and 100 primary school students between the ages of 9 to 12 and 20 physical education teachers received football skills training in Shenyang. In addition to continuous innovation in its corporate social responsibility projects, BMW officially established the BMW Corporate Volunteer Association to encourage more employees to participate in voluntary service. At the same time, BMW first used the scientific and comprehensive Corporate Social Responsibility evaluation system - the IOOI (Input, Output, Outcome, Impact) model - to evaluate Corporate Social Responsibility projects both quantitatively and qualitatively throughout its implementation process to achieve transparent and measurable social benefits.

BMW BRILLIANCE LAUNCHED SUSTAINABILITY REPORT FOR THE FIFTH CONSECUTIVE YEAR
BMW Brilliance Sustainability Strategy Leads The Way To Victory Across The Entire Value Chain

• BMW Brilliance upgrade its sustainability strategy
• BMW Brilliance retained position as top-ranked joint venture in China in standard rate of corporate average fuel consumption in 2017.
• BMW Brilliance among the first to be recognized as National Green Plant award in 2017

(Shenyang) Today, the BMW Brilliance Automotive Ltd. Sustainability Report 2017 (hereinafter referred to as the Sustainability Report) is officially launched. Within the Sustainability Report, BMW Brilliance upgraded its sustainability strategy. According to the data jointly released by the Ministry of Industry and Information Technology and three other ministries, BMW Brilliance cut its corporate average fuel consumption to 6.17 liters/100 kilometers in 2017 (compared to 6.69 liters/100 kilometers in 2016), remaining the top-ranked joint venture in China in standard rate. In the meantime, BMW Brilliance is actively contributing to the implementation of China’s green manufacturing strategy, receiving the National Green Plant award as one of the first companies in the green manufacturing demonstration list published by the Ministry of Industry and Information Technology in September 2017.

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd., remarked, “At BMW Brilliance, sustainability is one of the cornerstones of our corporate strategy. As we launch our fifth consecutive Sustainability Report, we updated our sustainability strategy, with our aspiration to be the leading sustainable provider of premium individual mobility across the Chinese automotive industry and industrial chain. The strategy joins hands with stakeholders to promote transformation and upgrading of China's automotive industry and drive the green development of the whole value chain. Our strategy reflects our ongoing support for China’s National Plan for a Beautiful China. It also reflects our commitment as a participant of the United Nations Global Compact and to the realization of the 2030 Agenda for Sustainable Development.”

Following the 3P (people, planet and prosperity) principles of the sustainability theory, BMW Brilliance established a clear goal of “delivering innovative and sustainable mobility products and services to serve changing customer needs and enhance the quality of life of all stakeholders”. Under the guidance, BMW Brilliance has achieved tangible results in all three aspects of products and services, production and value creation, and employees and society.

MAKING COMPREHENSIVE PLAN FOR FUTURE MOBILITY, PROMOTING SUSTAINABILITY ACROSS THE ENTIRE VALUE CHAIN

BMW Brilliance cut its corporate average fuel consumption to 6.17 liters/100 kilometers in 2017 (compared to 6.69 liters/100 kilometers in 2016), remaining the top-ranked joint venture in China in standard rate. To implement BMW Group’s Efficient Dynamics Strategy, BMW Brilliance has made continuous efforts to reduce the fuel requirement of vehicles through innovative technologies such as lightweight design, efficient engines and gearboxes, and optimized aerodynamics. Meanwhile, as a pioneer in the field of new energy, BMW Brilliance is increasing the new energy vehicles offerings in product portfolio. In the past five years, BMW Brilliance has launched five new energy vehicles. In 2017, BMW Brilliance announced the world debut of the all-new BMW 530Le iPerformance, showcasing BMW Brilliance as the pioneer in the field of new energy vehicles. In the future, BMW Brilliance will also produce the fully-electric BMW iX3 model in China and export to the global market, delivering on its vision of “In China, For China and the World".

Currently, the two complete vehicle plants in Tiexi and Dadong are both capable of producing vehicles with combustion engines and plug-in hybrid vehicles on the same assembly line. With the completion of the new Tiexi Plant and the upgrade of the Dadong Plant, the production system of BMW Brilliance will become more flexible, being able to produce fully-electric, plug-in hybrid and vehicles with combustion engines on one line, and even 100% produce the fully-electric vehicles according to market demand.

BMW Brilliance is also making constant efforts to improve the new energy vehicle ecosystem. In 2017, BMW Brilliance opened its High Voltage Battery Center. The HVB Center makes BMW Brilliance the first Chinese premium automobile manufacturer to launch its own battery assembly line.

In addition, BMW Brilliance is actively expanding its local supplier network and building a mutually beneficial partnership. By the end of 2017, BMW Brilliance was working with 359 auto components suppliers in 17 Chinese provinces, an increase of 4% than last year.

IMPROVING ENERGY AND RESOURCES EFFICIENCY, CONSTRUCTING A GREEN MANUFACTURING SYSTEM

BMW Brilliance aims to be the most resource-efficient premium mobility provider in China. In September 2017, BMW Brilliance was among the first to win the National Green Plant award, in recognition of its contribution to the implementation of China green manufacturing strategy and support for the green development of the automotive industry. BMW Brilliance’s energy consumption and carbon footprint for production decreased in 2017, to 0.70 ton of CO2 per unit, 38% lower over the same period last year.

In the future, BMW Brilliance will continue to expand energy efficiency measures to increase the proportion of clean energy sources such as wind and solar energy. BMW Brilliance plans to install 17.1 MWh capacity of solar panels. In 2018, the solar power project will become operational at Tiexi and Powertrain plants. Within the effective sun lighting period, it will contribute about 15 MW of our plants' energy consumption. Surplus power will be channelled into Shenyang's local energy grid. While increasing the utilization rate of renewable energy, it also enhances the energy efficiency of the whole community.

BUILDING THE BEST EMPLOYER BRAND, PROMOTING SUSTAINABLE DEVELOPMENT WITH STRATEGIC CORPORATE SOCIAL RESPONSIBILITY

With its outstanding performance in human resources management, BMW Brilliance was recognized by Zhaopin.com as the “No. 1 Best Employer in China” in 2017, retaining its leading position as one of the most attractive employers in China’s automotive industry. BMW Brilliance attaches equal importance to the improvement of female leadership. In 2017, 30% of the management team were held by women.

BMW Brilliance sees corporate social responsibility (CSR) as an indispensable part of its sustainability strategy. As an advocate and practitioner of strategic CSR, BMW Brilliance attaches great importance to combining its own resources and core competitiveness, proceeding from the actual needs of Chinese society, developing innovative and sustainable modes of operation, and creating shared values through long-term participation of all stakeholders.

BMW Brilliance Sustainability Report 2016 released
2017 BMW Sustainability and CSR Forum Held Successfully
2016 BMW Brilliance CAFC compliance rate again ranks No.1 among automobile joint ventures in China

Shenyang: On November 2, the Driving into New Era as Responsibility Pioneer - 2017 BMW Sustainability and Corporate Social Responsibility Forum, hosted by BMW, was held successfully in Shenyang. During the forum, BMW Brilliance officially released the BMW Brilliance Sustainability Report 2016. According to the report, BMW Brilliance’s Corporate Average Fuel Consumption (CAFC) in 2016 was 6.69 liters of petrol per 100 kilometers (2014: 7.06 and 2015: 6.95 liters per 100 kilometers), positioning it again as number one in the national ranking of fleet fuel consumption achievement rates among automobile joint ventures, according to the 2016 Corporate Average Fuel Consumption report published by Chinese authorities.

Mr. Olaf Kastner, President & CEO, BMW Group Region China, said: “BMW Group has integrated sustainability values and measures along the entire value chain, from products, services, production to employee and social care. It has become an integral part of our thinking and actions. As the largest single market for BMW Group, China will be actively involved in our shift towards sustainability. In the future, we will continue to make further progress and contribute more to the sustainable development in China.”

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd., said: "BMW Brilliance views sustainable development as a key element in achieving long-term success in the Chinese market. We have released the BMW Brilliance Sustainability Report for four consecutive years, and this report reveals our achievements in the field of sustainability comprehensively and transparently. In China, For China. Sustainability is not only an investment in the future of our company, but also our long-term commitment to localized development in China, and for China.”

Mr. Ren Liu, Vice Chairman of the Investment Association of China (IAC), NDRC, said: “This forum demonstrates BMW Brilliance's realization of the 19th National Congress' ideals - a pursuit of higher quality, greater efficiency, fairer and more sustainable development. We are pleased to see that BMW Brilliance, as the corporate role model of Industry 4.0 strategy implementation and Made in China 2025 participation, continues to persevere in its sustainable development approach in China, contributing towards the Chinese economy's transformation and upgrade as well as the Northeastern region’s revitalization.

BMW Brilliance prepared the BMW Brilliance Sustainability Report 2016 in line with the newly-released GRI standards, becoming the first company to apply these standards in its sustainability communication. Major highlights from the BMW Brilliance Sustainability Report 2016 include:

Contributing to “Made in China 2025” with intelligent manufacturing

Following a national assessment, BMW Brilliance Plant Tiexi was officially recognized as a National AAAA Tourism Attraction this year, the same level as the Mukden Palace. As the first automobile joint venture in China to join the United Nations Global Compact, BMW Brilliance takes the lead in combining technological innovation and green production with the environmental protection, forging a new path for the sustainable development of Chinese automobile manufacturers. As the first and only domestic automobile manufacturer to be selected as a National AAAA Tourism Attraction, BMW Brilliance Plant Tiexi now represents a new landmark of domestic industrial tourism, and acts as a role model of the integration of Made in China 2025 and Germany’s Industry 4.0 strategies with its intelligent technology and sustainable production concept. In 2016, BMW Brilliance became the first Chinese company to join the European Foundation for Quality Management (EFQM) in Brussels. This demonstrates that BMW Brilliance challenges itself with the rigorous quality management system and pursues greater achievements sustainably, thereby realizing sustainable growth for the company. For a long time, BMW Brilliance has contributed to the sustainable development of the local economy. Having paid taxes of more than RMB 21 billion in 2016, BMW Brilliance has now been the largest taxpayer in Shenyang for 11 consecutive years. Moreover, BMW Brilliance also continues to develop local talent. By the end of 2016, Chinese employees accounted for 82% of our management, an increase of 5% from the previous year. With its intelligent manufacturing and local talent development strategy, BMW Brilliance will persist in its efforts to support the rejuvenation of the Northeast Industrial Base and contribute to the realization of "Made in China 2025".

Looking forward by implementing sustainability throughout the value chain

As a pioneer in the field of new energy vehicle, BMW Brilliance is making great progress in developing the new energy vehicle ecosystem in China, stimulating the innovative development of sustainable mobility in the future. BMW Brilliance has just completed its High Voltage Center at Plant Tiexi in October this year, becoming the first premium automobile manufacturer to launch its own battery assembly line in China. At the same time, BMW Brilliance is actively developing its local high voltage battery supply chain and continuing to push public charging infrastructure construction.

In addition, BMW Brilliance adheres to the concept of low carbon production management and supply chain. Internally, BMW Brilliance creates a healthier work environment for its employees by employing digital innovations and technologies. At the same time, BMW Brilliance also increases its operating efficiency to minimize environmental impacts. From the aspect of supply chain management, BMW Brilliance has set up a cross-functional team to continuously review its suppliers’ sustainability performance to ensure the sustainable development of its supply chain. As of 2016, the number of BMW Brilliance’s local suppliers continued to grow steadily, with an increase of more than 8% compared to 2015; the number of suppliers in Liaoning province have also increased to 79. Due to the increase of local suppliers, there has been a significant reduction in carbon emissions resulting from transport, enhancing the sustainability of the value chain and also stimulating the sustainable development of the local economy.

Fulfilling strategic Corporate Social Responsibility by creating more shared value

In 2017, as an advocate and practitioner of strategic Corporate Social Responsibility (CSR), BMW upgraded its three key CSR programs, creating more shared value for society. BMW China Culture Journey, BMW’s iconic CSR program, revitalized its communication approach to promote Intangible Cultural Heritage (ICH) safeguarding and facilitate the use and consumption of ICH works in a creative way BMW Children’s Traffic Safety Education, BMW’s expert CSR program, expanded focus to adult drivers in 2017, with the launch of the new “BMW Good Driver” initiative that engaged BMW dealers, associates, customers and employees. Also in 2017, BMW JOY Home, BMW’s exclusive stakeholder engagement CSR program, upgraded its current strategy from donating to enabling. The program was officially relaunched with the brand-new concept of “Joyful Football”, an innovative model that aims to improve left-behind children's physical and mental health through inventive education concepts and varied sports activities to create a better future for the children.

2016 BMW Sustainability and CSR Forum Held Successfully
BMW Brilliance 2015 CAFC compliance rate again ranks no.1 among automakers in China
GRI G4 Standard-Compliant “BMW Brilliance Sustainability Report 2015" Released

December 13, 2016 (Shenyang, China): BMW is proud to announce that the "Shape a Joyful Future with Responsibility - 2016 BMW Sustainability and Corporate Social Responsibility Forum” was held successfully in Shenyang, China earlier this month and provided an opportunity to highlight the company’s achievements in protecting the environment and ensuring a sustainable future. This commitment was illustrated in the "BMW Brilliance Sustainability Report 2015" that was officially launched at the forum and showed that corporate average fuel consumption (CAFC) at BMW Brilliance in 2015 was further reduced to 6.95L/100km (2014: 7.06 L/100km), according to data released by the Chinese Ministry of Industry and Information Technology (MIIT). The company’s efforts were also acknowledged with BMW Brilliance topping the CAFC ranking among 90 passenger car manufacturers nationwide -- the second consecutive No.1 ranking since 2014.

Dr. Johann Wieland, President and CEO of BMW Brilliance Automotive Ltd., said: "BMW Brilliance upholds the sustainability strategy of the BMW Group, implementing sustainability throughout the whole value chain and viewing it as the key to long-term success in the Chinese market. As the first joint-venture automobile company to join the United Nations Global Compact in China, we have released the ‘BMW Brilliance Sustainability Report’ for three consecutive years. We adhere to strict standards and maintain a high-level of transparency in the disclosure of our company’s achievements in the field of sustainability - not only in support of the BMW Group’s sustainability strategy, but also to show our long-term commitment to China’s sustainable development as a member of Chinese society.”

Mr. Shi Jianhua, Deputy Secretary-General of the China Association of Automobile Manufacturers, said: "BMW Brilliance has published a high-standard and transparent sustainability report for three consecutive years, disclosing the company’s performance in operational management, product responsibility, environmental protection, supply chain management, talent cultivation and CSR strategies.

BMW Brilliance integrates sustainability across its operations’ entire value chain and local development strategy, setting the standard and becoming the model for sustainability in China’s automotive industry."

For the second year in a row, BMW Brilliance prepared the "BMW Brilliance Sustainability Report 2015" in accordance with the world's most stringent GRI G4 standards. This is indicative of how BMW Brilliance adopts the BMW Group’s approach towards sustainability. In the newly released “2016 Dow Jones Sustainability Index”, the BMW Group again topped the global ranking and was named the “Most Sustainable Automotive Corporation in the World” of 2016. Among the three major German automotive corporations, BMW Group is the one and only that has been listed in the Dow Jones Sustainability Index since 1999.

Major highlights from the “BMW Brilliance Sustainability Report 2015” include:

In regards to the economy, BMW Brilliance has made outstanding contributions to the sustainability of China's social economy. As of the end of 2015, BMW Brilliance had been ranked as the largest taxpayer in the city of Shenyang for 10 consecutive years, paying over RMB13 billion in taxes in that year alone. In the same year, BMW Brilliance provided 16,000 high-quality jobs to the local community, a 8.6% increase from the previous year. This growth is due to BMW Brilliance’s growing investment in China. Looking ahead, the results of BMW Brilliance’s localization are expected to become even more obvious, including its High-Voltage Battery Center and R&D Center Phase II that are currently under construction, as well as the Plant Dadong expansion project that is nearing completion. These investments not only show BMW Brilliance’s confidence in local development, they are also proof of the company’s contribution towards upgrading and transforming the local economy.

On the environmental front, BMW Brilliance’s CAFC fell further to 6.95L/100km in 2015 (2014: 7.06 L/100km), topping the national CAFC ranking of passenger car manufacturers for the second year in a row. BMW Brilliance’s energy consumption also hit a new low of 1.66 MWh per product unit - this is the most detailed and transparent product unit energy consumption data disclosed by a Chinese automaker, reflecting BMW Brilliance's responsible attitude towards production. In 2016, BMW Brilliance’s kick started its new engine plant. The state-of-the-art plant was designed and constructed based on the concept of sustainability. It not only monitors energy consumption around the clock, but also lowers heat consumption by 80% through technological innovations, significantly reducing carbon emissions during the production process.

BMW Brilliance's contribution to environmental protection also includes the relentless exploration and promotion of future mobility. In the new energy vehicles (NEV) industry, BMW Brilliance is both the pioneer and the leader: following the launch of the first premium e-drive, ZINORO 1E, back in 2013, the second model in the line, ZINORO 60H, has also been introduced this year. The BMW 5 Series of the plug-in-hybrid premium business sedan rolled out last year is also the first of its kind to appear in the market. In addition, BMW Brilliance’s R&D center in Shenyang has now expanded to a 500-man team, providing unparalleled technical support for the development and testing of NEVs. And very soon, BMW Brilliance will be the first luxury car manufacturer to set up a high-voltage battery production line in China.

In terms of social contributions, as an outstanding corporate citizen in Chinese society, BMW again upgraded its corporate social responsibility (CSR) strategy in China on the 100th anniversary of BWM Group’s establishment - instead of one-off charitable donations, the emphasis is now on corporate social innovation. The upgraded CSR strategy focuses on two major areas: 1) promotion of social mobility and 2) safe and sustainable mobility, supporting China's innovative social governance with practical action. Under the guidance of this brand-new CSR strategy, BMW transformed BMW Chinese Culture Journey in conjunction with its 10th anniversary celebrations with a perfect interpretation of its new CSR strategy - "it is better to teach one to fish than to give them fish.” Through the “Tsinghua University Academy of Arts & Design – BMW Intangible Heritage Protection and Innovation Base”, established in collaboration with Tsinghua University Academy of Arts & Design, BMW funds intangible cultural heritage inheritors that have the willingness to learn as well as develop potential for study at the center, helping them fuse intangible heritage into modern life. In another CSR milestone, BMW Children's Traffic Safety Education celebrated its 12th anniversary this year with a greater focus on children's traffic safety, establishing the first BMW-branded indoor fixed center in Shenyang, which is open to the public free of charge throughout the year, benefiting the local community more extensively and sustainably. The new project, BMW Next Mobility Youth Camp, provides a platform for young people to explore the responsibility and innovation of future mobility. In addition to the CSR programs, through BMW Warm Heart Fund, BMW is also working towards building a platform where various parties can participate in charitable activities in the long term, contributing to the sustainable development of Chinese society.

BMW Brilliance Sustainability Report 2014 released
2015 BMW Sustainability and CSR Forum Successfully Held
2014 BMW Brilliance Fleet Ranked Number One in China for Fleet Fuel Consumption

• BMW Brilliance Sustainability Report 2014 is officially launched globally.
• BMW Brilliance becomes the first and the only automotive industry joint venture in China to meet GRI G4, the world’s most authoritative standard for sustainability reporting.
• In 2014, BMW Brilliance’s Corporate Average Fuel Consumption (CAFC) was 7.06 liters of petrol per 100 kilometers (2013: 7.3 liters per 100 kilometers), positioning it as number one in the national ranking of fleet fuel consumption achievement rates among 88 local manufacturers, according to the 2014 Corporate Average Fuel Consumption report by Chinese authorities.

(SHENYANG) December 9, 2015: Under the theme of “Innovation +, Joyful Future Powered by Responsibility”, the 2015 BMW Sustainability and CSR Forum was successfully held on December 9, 2015. BMW VIPs and representatives from government, academia, and media gathered at Plant Tiexi in Shenyang to explore how to push forward the sustainable development of companies and society through innovation. The BMW Brilliance Sustainability Report 2014 was also officially released at the forum. Highlights of the report included significant reductions in BMW Brilliance’s Corporate Average Fuel Consumption (CAFC), which was 7.06 liters of petrol per 100 kilometers in 2014 (compared with 7.3 liters per 100 kilometers in 2013). This positions it as number one in the national ranking of fleet fuel consumption achievement rates among 88 local manufacturers, according to the Chinese authorities’ 2014 Corporate Average Fuel Consumption report.

This is the 3rd BMW Sustainability and CSR Forum, an annual event launched in 2013, and was attended by Mr. Olaf Kastner, President and CEO of BMW Group, Region China, Dr. Anton Heiss, President and CEO of BMW Brilliance Automotive Ltd., along with senior experts in the corporate social responsibility (CSR) area, leading journalists, and BMW customers and employees. Participants shared their philosophies and practices in the use of technological and social innovation to promote sustainability and CSR, and explored ideas to push forward the sustainable development of companies and communities in China’s New Normal stage of development.

Mr. Kastner highlighted: “At BMW, we believe innovation is the driver of our sustainability. We have implemented a clear and comprehensive strategy on sustainability throughout our products, production, and CSR for decades, with innovative ideas and practices.” He said, “We have created BMW i, a ‘born electric’ line of cars that will further reshape individual mobility. And we are dedicated to innovative sustainability throughout the production network. Furthermore, we approach our CSR activities innovatively in an effort to contribute to the long-term, balanced, and sustainable development of society.”

Dr. Heiss stressed: “Our vision is to deliver a premium customer experience through desirable products and service, passionate associates, and committed partners. We see our commitment to sustainability as an investment in the future of our company and a contribution to social innovation at the same time.” He said, “Our 2014 Sustainability Report, as an example of openness and transparency, upholds this commitment and provides our stakeholders with an overview of the progress we have achieved in 2014. Through its practical strategy and initiatives, BMW Brilliance sets a benchmark in sustainability for the automotive industry.”

BMW Brilliance joined the United Nations Global Compact in 2014 as part of its ongoing commitment to CSR and sustainability. This makes BMW Brilliance the first auto joint venture in China to join what is the world’s largest corporate citizenship and sustainability initiative. The BMW Brilliance Sustainability Report 2014 follows the GRI G4 guideline, the latest version of the world’s most trusted and widely used standard for sustainability reporting. BMW Brilliance remains the only auto joint venture in China reporting in accordance with this standard.

The BMW Brilliance Sustainability Report 2014 offers a complete picture of what the company has achieved in the areas of economic development, environmental protection, and social contribution. BMW Brilliance is a major contributor to local development. It paid taxes of more than RMB 16 billion in 2014, making it the biggest taxpayer in Shenyang – the ninth consecutive year it has held that position. And by the end of that year, the company had provided over 15,000 high-quality job opportunities. It expects to create further jobs through a planned plant expansion and the construction of a new engine plant.

BMW Brilliance has also successfully integrated sustainability throughout its entire value chain, which is important to a company that places a high priority on creating values. From product to production, BMW Brilliance is doing its best to minimize the company’s impact on the environment.

BMW Brilliance continues to advance and locally produce a range of efficient automotive products that support its strategy of sustainable mobility. The electric vehicle ZINORO 1E was launched as the first premium zero-emissions sports activity vehicle in China. Meanwhile, the new BMW 530Le plug-in hybrid (PHEV) sets the benchmark in its segment for fuel efficiency and low emissions. It has the lowest fuel consumption (2.0 liters per 100 kilometers) and lowest CO2 emissions (49 grams per kilometer) in its class.

In 2014, BMW Brilliance recorded a CAFC of 7.06 liters of petrol per 100 kilometers, making a significant improvement on its 2013 CAFC of 7.3 liters per 100 kilometers. This positioned it as number one in the national ranking of fleet fuel consumption achievement rates among 88 local manufacturers, according to the 2014 Corporate Average Fuel Consumption report jointly released by five ministries, including the Ministry of Industry and Information Technology.

Moreover, BMW Brilliance’s Plant Tiexi, one of the most advanced and sustainable automotive plants in China and the world, defines sustainability for modern automobile production through the use of world-class production technology that ensures low-energy consumption and low emissions.

Improved energy efficiency and the use of cleaner energy sources have enabled the company to reduce its carbon footprint for every vehicle it produces. In 2014, BMW Brilliance achieved a CO2 efficiency of 0.97 tonnes of CO2 per unit produced, an 11.8% reduction over 2013; and 1.67 MWh energy consumption per vehicle produced, a year-on-year decrease of 18.9%.

In addition to promoting economic development and protecting the environment, BMW Brilliance is also committed to being an outstanding corporate citizen that contributes to a healthy society. The company has dedicated itself not only to CSR programs like the nine-year BMW China Culture Journey and the 11-year BMW Children’s Traffic Safety Education, but also to vocational education projects that promote local employment.

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