To ensure a comprehensive approach to sustainability across our supplier network and to ensure continuous improvement, we focus on two key areas. First, we manage and minimize risks by identifying and analyzing potential sustainability risks across the supply chain as part of a risk management process. Since 2009, we have been inviting suppliers to evaluate their sustainability management and related activities. Production facilities for suppliers at high risk of breach of sustainability requirements and facilities suspected of committing such an offence are subject to independent audits. Secondly, we exploit opportunities and exploit the potential of our suppliers, for example in the area of efficient use of resources, by training and enabling our employees and suppliers, as well as active and stakeholder initiatives. Our approach focuses, on the one hand, on the widespread application of sustainability standards through comprehensive risk management – that is, in all direct suppliers – and, on the other hand, through an in-depth analysis of raw materials or specific deliveries throughout the value chain. With the BMW Supplier Innovation Award, the BMW Group pays tribute to supplier innovations and outstanding development performance. Learn more about how we work with suppliers to improve and ensure the sustainability of our supplier network. Learn more about the tools and measures we use to minimize risk and seize opportunities. 2. Self-assessment.
Each supplier production and delivery site must self-assess prior to appointment by completing a sector sustainability questionnaire for the implementation of environmental, social and governance standards. Information will be collected, among other things, on respect for human rights, the prohibition of forced labour and the efficient use of resources. In addition, the existence of an environmental management system is reviewed in accordance with ISO 14001 or EMAS. These and other aspects are relevant criteria for the award decision. Sustainability and transparency are a major challenge in global supply chains. The BMW Group buys high-quality natural fibres from its suppliers from the Kenaf plant, grown in Bangladesh. The material is used for the manufacture of interior parts in the new BMW i3. At first, GIZ advisors faced a complex task with this plant grown in Bangladesh: Mr. Andreas Brede, an advisor to GIZ, said that traditional business models were initially quite difficult to understand.
“The value chain was complex and often opaque.” Subsequently, the value chain had to be identified first and then sustainability risks identified. Based on this estimate, the project focused on training kenaf farmers and local supply chain players. Our collaboration with our suppliers is based on a mutual understanding of product quality and production, security of supply, competitive pricing and innovation, as well as the continued integration of our sustainability requirements.