2021 Automotive Industry Green Development Index Released
BMW Brilliance Tops Index for Three Consecutive Years

(Tianjin) Entrusted by the Ministry of Industry and information Technology’s Department of Energy Conservation and Resources Utilization, the China Automotive Technology & Research Center (CATARC) officially released the “2021 Automotive Enterprise Green Development Index on December 23rd, 2021. From October to November in 2021, CATARC calculated the green development information of 48 automotive enterprises and 108 automotive parts enterprises, generated the results of this year’s Green Development Index (GDI). Among these enterprises, BMW Brilliance Automotive Ltd. (BMW Brilliance) ranks first among automotive enterprises with an index value of 96.84. This is the third year that BMW Brilliance has topped the index, which not only cements BMW’s position as a pioneer and leader in sustainable development, but also demonstrates BMW’s innovative breakthroughs in the field of green intelligent manufacturing, setting an example for the industry’s development.

Dr. Wieland, President and CEO of BMW Brilliance, pointed out: “BMW Group has put ‘Sustainability’ on its Corporate Strategy Agenda more than 20 years ago, so also BMW Brilliance has been focusing on sustainable development for many, many years. Since 2014, we at BBA have shared our ecological footprint in our Sustainability Reports transparently to the public. We are an active promotor of green development rather than a passive responder in the push for sustainable development. And our deliveries prove that innovations enable sustainability. Being in a technology-driven business, we use technological innovations to pursue a more innovation-driven green development. There is no sustainability without transparency.”

As the first evaluation agency for energy conservation and green development in China’s automobile industry, CATARC promotes the industry’s green development by publishing the GDI. CATARC aims to guide automobile companies in establishing a standardized, accurate and transparent green information disclosure mechanism to support the sustainable development of the industry.

After nearly 20 years of unrelenting efforts, BMW Brilliance has integrated sustainable development into the core strategies and developed a comprehensive information disclosure system. As of 2021, BMW Brilliance has released sustainability reports for eight consecutive years and green development reports for three consecutive years, putting sustainable development into practice to enhance corporate information transparency, which plays a leading role in the low-carbon transition and sustainable development of Chinese automobile enterprises. In recognition of our commitments to green development, BMW Brilliance received the “UNGC China Network Best Enterprise Practices” award from the United Nations Global Compact in 2020. Through sustainable practices such as climate change actions and circular supply chain, BMW Brilliance has actively responded to the Sustainable Development Goals (SDGs) and become a pioneer in the automobile industry’s sustainable development.

Leading Low-carbon Transition across the Value Chain

BMW Brilliance has taken actions to incorporate the concept of sustainability into the entire value chain, providing innovative solutions in R&D, manufacturing, supply chain, logistics, and sales to reduce carbon footprint and support the BMW Group’s 2030 climate commitment.

In R&D, BMW Brilliance is lowering carbon production during product development, making progress in battery recycling, improving power system efficiency, lightweighting product design, and enhancing combustion engine efficiency. Our lifecycle assessments (LCAs) approach follows the ISO 14040/44 standard to reduce carbon footprint. In 2020, we conducted a life cycle assessment for the BMW iX3. At the manufacturing stage, we as a pioneer in green and smart production have switched to 100% renewable energy at our Shenyang production base since the end of 2019. In 2020, we reduced our energy consumption per vehicle produced by 7.4%, and CO2 emissions per vehicle produced by 7.5% compared to 2019. We successfully maintained our National Green Plant certification during the three-year review, and have fully realized the total energy consumption and energy intensity targets laid out in China’s 13th Five-Year Plan. In terms of low-carbon supply chain, BMW Brilliance launched the Supply Chain Climate Change Initiative to find out how it would be most effective to reduce CO2 emissions within the supplier network and improve CO2 emissions transparency and disclosure. In 2021, we set up a local sustainability management project team to more scientifically formulate an emissions reduction plan for our Chinese supply chain based on the Chinese environment and national goals. BMW Brilliance is also committed to expanding the proportion of low-carbon transportation to advance our sustainable logistics. In 2020, we have transported 78% of our finished vehicles wholly or partially by rail, which has reduced our CO2 emissions by 51.3% per unit since 2014. In 2021, BMW Brilliance’s Regional Distribution Centre in Hefei opened officially. It is the first “green warehouse” designed according to the LEED Green Building Standards.

During sales and after-sales, BMW strives to further improve the NEV ecosystem. In 2020, the launch of the world premiere of the first-ever all-electric BMW iX3 was a milestone signalling the start of the rapid development of BMW NEVs. In 2021, BMW signed a strategic cooperation agreement with State Grid EV Service (SGEVS) to advance the collaboration. We expect to establish 100 green energy stations with integrated charging and light storage in the next three years.

Joining Hands with Partners to Create a Circular Value Chain

The establishment and improvement of a green, low-carbon and circular development is a prominent part of the 14th Five-Year Plan. BMW Brilliance is an active practitioner of circular economy, attaching great importance to resource efficiency and recycling in its operations. BMW Brilliance also works with upstream and downstream suppliers to recycle, re-manufacture and reuse raw materials and waste parts through innovative methods and technologies, extending the life cycle of products as well as encouraging the recycling and reuse of products. In 2020, the average reusability rate of all BMW Brilliance models was over 85%, and the average recyclability rate was over 95%. Both rates have met the Chinese standards and EU End-of-life Vehicles Directive requirements.

In terms of raw materials use, BMW Brilliance created the first closed-loop system in 17 years by working with steel-manufacturing partners to incorporate scrap steel back into their manufacturing process in 2020. In addition, we have set an example for circular production in the automobile industry by working with HVB suppliers to use 100% recycled aluminium, at least 50% secondary material for cobalt and nickel, and 100% regenerative energy for BMW’s Gen5 HVB production.

BMW Brilliance has taken the lead in HVB recycling. In 2020, we set up China’s first professional HVB recycling service outlet in Shanghai. We also launched a waste HVB echelon utilization pilot project. In 2020, BMW Brilliance recycled 33.3% more HVBs compared to 2019, and achieved a 98.5% recycling rate for nickel, cobalt, and manganese.

In terms of parts remanufacturing, BMW Brilliance increased its capacity by expanding the scope of its parts recycling practices and digitalizing its reverse logistics systems. Meanwhile, we expanded our remanufactured parts portfolio, forming a closed loop from utilization to remanufacturing. Our centralized facility for parts recycling and removal in Cangzhou has also reached full functionality in 2020.

In the future, BMW Brilliance will continue to deepen our efforts in green and low-carbon development and circularity under the guidance of BMW Group, playing a leading role in supporting the Dual-Carbon Goals and sustainable development.