BMW Group

Reference: page 111; pages 108-112.

BMW AG's Supervisory Board "is composed of ten shareholder representatives ... and ten employee representatives" (p.111). Applying the ESRS independence definition, "a total of 90% of Supervisory Board members are independent" (p.111); female members "made up 30% of the Supervisory Board at the end of 2025 (2024: 30%)" (p.111). On the Board of Management, "as of 31 December 2025 and as in the previous year, 14% of the seven members of the Board of Management were female and 86% were male" (p.108). Both bodies are surveyed annually on sustainability expertise via a skills matrix (p.112).

Reference: page 113; pages 112-113.

The Supervisory Board "monitors the activities of the Board of Management and advises the Board of Management on important matters related to the management and strategic development of the Group" (p.112). "At each of its meetings, the Board of Management presents the material impacts, risks and opportunities related to the latest business developments" (p.112), and the Audit Committee "decides on an external audit and commissions an external auditor" for the sustainability statement and "receives detailed reports every six months on risk management and risk strategy" including ESG risks (p.113). The Chief Compliance Officer reports to the Audit Committee twice a year and to the Supervisory Board once a year (p.113).

Reference: page 113; pages 113-114, 379.

"Sustainability targets are part of the remuneration system for the Board of Management" (p.113); the 2025 variable-remuneration targets set by the Supervisory Board "covered the reduction in CO2e emissions in Scopes 1 and 2 as well as Scope 3 total, the reduction in fleet CO2 emissions in the EU, the proportion of electrified vehicles sold, absolute electrified vehicle sales worldwide, attractiveness as an employer and investment in employee training and development" (p.113). "Of the total variable target remuneration available, around 37% was linked to environmental, social or governance (ESG) targets" (p.379).

Reference: page 115; pages 115-116.

The Statement on Due Diligence maps the UNGP/OECD core elements of due diligence to specific sections of the statement. "Embedding due diligence in governance, strategy and business model" points to the materiality-and-strategy description; "Engaging with affected stakeholders" to the materiality assessment and Stakeholder Engagement sections; "Identifying and assessing adverse impacts" to the climate, pollution, water and biodiversity IRO sections; "Taking actions" to the Net-Zero transition plan, pollution, water, supplier due diligence and biodiversity measures; and "Tracking effectiveness" to the CO2e target-achievement and GHG-emissions sections (pp.115-116).

Reference: page 116.

"The BMW Group's Internal Control System (ICS) covers, among other things, risks and controls relating to sustainability reporting. A general description of the ICS, including the aspects of the system related to sustainability reporting, is provided in » Internal Control System" (p.116).

Reference: page 95; pages 95-96.

"The BMW Group's business model comprises the Automotive, Motorcycles and Financial Services segments" (p.95). "As of 31 December 2025, the BMW Group employed a workforce of 155,497 people worldwide" (p.95). The upstream value chain "comprises a multi-layered network of suppliers who provide production material, raw materials, components, capital goods and services"; the downstream value chain is "a global sales network" that sells, finances and leases vehicles, supports customers and recycles end-of-life vehicles, with leased-vehicle impacts "allocated in full to the downstream value chain" (p.95).

Reference: page 105; pages 105-106.

"The ... Stakeholder Engagement Policy revised in 2024 forms the basis for the BMW Group's interaction with stakeholders and distinguishes between affected stakeholders and users of sustainability statements" (p.105). In June 2025 "BMW Group experts met with stakeholders at a dialogue event in Brussels to discuss how Europe could strengthen its role within the global battery cell value chain"; in September 2025 the Group "exchanged ideas and experiences related to decarbonisation, resilience and future viability with external stakeholders as part of New York Climate Week" (p.106).

Reference: page 103; pages 97-104.

"A total of 56 material impacts, risks and opportunities were identified, which can be assigned to the BMW Group's business model and economic activities as well as to the upstream or downstream value chain. The material impacts, risks and opportunities can be categorised under the 32 sustainability sub-topics and sub-sub-topics defined in ESRS 1" (p.103). Material topics cover E1, E2, E3, E4, E5, S1, S2, S4 and G1 (no S3); the results "confirmed by the committees of BMW AG" (p.98). Versus 2024, "collective bargaining coverage for the Company's own workforce and adequate wages for workers in the supply chain have been identified as material for the first time" and "climate change adaptation for the Company's own business operations is no longer considered material" (p.98).

Reference: page 97; pages 97-101.

The materiality assessment follows "the double materiality approach outlined in ESRS 1" across four steps: identification and assessment by internal experts (scale 0.1-4.0, materiality threshold 2), stakeholder validation, assignment to topical ESRS disclosure requirements, and Board/Audit Committee sign-off (pp.97-99). "Almost 500 impacts, risks and opportunities ... were available for assessment," of which 56 were material (p.99). Climate risk used three IPCC physical-risk scenarios (SSP1-2.6, SSP2-4.5, SSP5-8.5) and, for transition risk, three IEA scenarios (NZE, APS, STEPS) based on WEO 2024 (pp.100-101); "no physical climate risks as defined by the ESRS are categorised as material" (p.101).

Reference: page 240; pages 97-99, 240-248.

"As there is no legally binding allocation structure for the 2025 financial year, the BMW Group mapped sustainability topics independently and arranged for its mappings to be validated by two external consulting firms" (p.98). The resulting ESRS Index (pp.240-248) lists, for each disclosure requirement, the section of the Management Report or Sustainability Statement where it is covered; six disclosure requirements (E1-9, E2-6, E3-5, E4-6, E5-6, S1-11) are marked "n. a./phase-in" rather than given a location.

Reference: page 119; pages 119-122, 131.

"The BMW Group aims to achieve net zero CO2e emissions across the entire value chain by latest 2050", with unavoidable residual emissions capped at "a maximum of 10% of the absolute emissions in the base year 2019" and compensated via "permanent carbon sinks" (p.119). Near-term targets run to 2030 and are approved by Executive Management. A footnote discloses that, "in accordance with ESRS 1-106, significant monetary amounts related to CapEx and OpEx necessary for the implementation of current or planned actions outside the CapEx plan are not quantified for confidentiality reasons" (p.122).

Reference: page 100; pages 100-101.

Back-filled from ESRS 2 IRO-1, where this content is disclosed in the FY2025 report (pages 100-101). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against. Physical risk was assessed against three IPCC scenarios: "a low-emissions scenario with global warming of <+2.4°C ... SSP1-2.6 ... a medium scenario ... +2.5°C ... SSP2-4.5 ... to a >+4°C ... SSP5-8.5" (p.100), using site-specific hazard data from an external insurer for BMW and supplier sites, medium- and long-term horizons. Transition risk used three IEA scenarios - NZE (1.5°C-aligned), APS and STEPS, based on WEO 2024 - "revised for the 2025 reporting year" from the prior IPCC-based approach (p.100). "No physical climate risks as defined by the ESRS are categorised as material. All material climate-related risks are transitory risks" (p.101).

Reference: page 118; pages 118-119.

Back-filled from ESRS 2 SBM-3, where this content is disclosed under the heading "Climate resilience of the business model" (ESRS E1-SBM-3) in the FY2025 report (pages 118-119). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against. Resilience is assessed "through comprehensive consideration in Strategy and Planning, Development ..., Purchasing ..., Production ..., Sales and Finance ... and Personnel" over the twelve-year corporate-planning period, updated annually (p.118). "Based on these assumptions, the BMW Group's business model is resilient to the impacts and adjustments resulting from climate change and climate change adaptation" (p.118).

Reference: page 119; pages 119-120.

"The Company has therefore anchored the material impacts and risks related to climate change mitigation and adaptation in its corporate strategy" (p.119), with electrification, digitalisation and circular economy as strategic fields of action. The CO2e strategy is "confirmed by the Board of Management" and draws on the Greenhouse Gas Protocol and science-based targets (p.119); guidelines extend "from development guidelines ... through to process specifications for procurement and CO2e reduction requirements for the supplier network" (p.119). Company-wide adaptation requirements include a policy that new sites be operated without fossil fuels (p.120).

Reference: page 121; pages 121, 131-132.

"A structured process - in which the planned emissions are continuously compared with the targets and appropriate measures are defined - makes a significant contribution to the Company meeting its climate targets as planned" (p.121), governed by the CO2e steering logic (corporate strategy to product-project targets in t CO2/vehicle). Climate-sink actions include financing "the permanent storage of volumes equivalent to 25,000 t of CO2e in cooperation with partners including Atmosfair and First Climate" during 2025 (p.131), supporting carbon-removal technology ahead of the 2050 net-zero deadline.

Reference: page 121; pages 117, 121-122.

"The BMW Group aims to reduce its targeted CO2e emissions by at least 40 million tonnes CO2e compared to the 2019 base year by 2030 - from 150.1 million tonnes CO2e to 108.6 million tonnes CO2e" and, for Scope 1 and 2, "an absolute target of 0.646 million tonnes of CO2e by 2030 ... equivalent to a 46.2% reduction ... compared to the base year 2019 (1.202 million tonnes of CO2e)", a 4.2%/year pathway (p.121-122). A further 20 Mt CO2e reduction is targeted by 2035 versus 2030. "Ongoing revisions to the SBTi guidelines ... mean that it is currently preventing the validation of the absolute targets" (p.122); the Scope 3 target is "approximately 35% above a theoretical 1.5°C pathway" (p.121).

Reference: page 136; pages 136-137.

"Total energy consumption" at BMW Group locations was 6,177,162 MWh in 2025 versus 6,205,004 MWh in 2024 (-0.4%); "total fossil energy consumption" fell to 3,127,821 MWh (2024: 3,195,726, -2.1%), taking the fossil share to 50.6% (2024: 51.5%); "total renewable energy consumption" rose to 3,049,341 MWh (2024: 3,009,278, +1.3%) (p.136). Fuel from natural gas accounted for 2,695,364 MWh (+0.8%) and purchased fossil electricity/heat/steam/cooling fell to 423,165 MWh (2024: 515,200, -17.9%) (p.136).

Reference: page 127; pages 124-129.

"Total emissions (market-based)" were 128,352,902 t CO2e in 2025 against 135,821,526 t in 2024 (-5.5%); location-based totals were 129,450,269 t versus 136,962,076 t (-5.5%) (p.127). On the targeted-scope basis used for steering, "the targeted scopes for Scope 1 and Scope 2 amount to 811,420 t CO2e (2024: 836,963 t CO2e/-3.1%) and for Scope 3 118,721,516 t CO2e (2024: 125,059,073 t CO2e/-5.1%)" (p.124-125). Prior-year figures were restated for first-time reporting of the capital-goods and global-retail-partner-network Scope 3 categories (p.124).

Reference: page 131; pages 131-132.

"The BMW Group has been supporting the development of new permanent CO2e sequestration methods since 2024 ... including purchasing certificates from biochar projects." In 2025 the Group "once again financed the permanent storage of volumes equivalent to 25,000 t of CO2e in cooperation with partners including Atmosfair and First Climate" (p.131), unchanged from 2024, with 100% from removal (biochar) projects. "The BMW Group supports these projects voluntarily, which means their yields are not counted towards the Group's CO2e reduction targets" (p.131).

Reference: page 131.

"An internal carbon price is used as a shadow price in the development phase of vehicle projects (automobiles) ... based on the fleet regulations in the EU," which "stipulate a penalty of €95 per gram of CO2 for each unit sold if the target is not met," converted over 200,000 km to "475 € per tonne of CO2 (2024: 475 € per tonne CO2)" (p.131). In 2025 the price was applied to "86,558,680 t CO2e (2024: 90,667,226 t CO2e/-4.5%)", equivalent to "67.4% (2024: 66.8%/+1.0%) of the total CO2e emissions of the BMW Group" (p.131). "Internal carbon prices are not used for financial reporting purposes" (p.131).

Reference: page 138; pages 137-139.

"The BMW Group maintains a comprehensive environmental management system across its own operations" covering E2-1, E2-2 and E2-4, with "detailed checks and inspections ... during the planning and construction of new production and other sites with the aim of eliminating air, water, and soil pollution from the outset" (p.138). "As a result, there are no significant impacts, risks or opportunities related to pollution within the BMW Group's own operations"; the material impacts sit in the supply chain, managed through the supplier due-diligence process (p.138).

Reference: page 138; pages 137-139.

"The BMW Group assumes responsibility within its supply chain by monitoring processes and taking action to protect the environment. A materiality assessment identified material impacts in the supply chain related to soil and water" (p.138), managed via the multistage supplier due-diligence process and the Supplier Code of Conduct. On microplastics from tyre wear, "the BMW Group will be actively involved in developing measurement procedures for tyre abrasion and reducing wear levels while working closely with industry associations," anticipating Euro 7 thresholds due in 2026 (p.139).

Reference: page 138.

Targets for pollution are pursued through "overarching targets for the procedures used to perform due diligence in the supplier network" and an "analysis of the effectiveness of the processes and measures implemented" (p.138). On microplastics specifically, the report states plainly that "the policies developed by the BMW Group to reduce microplastics have not yet been adopted" and "there have not yet been any specific targets established that aim at reducing microplastics from tyre wear," pending Euro 7 thresholds expected in 2026 (p.139).

Reference: page 138; pages 137-139.

The material pollution sub-topics are "Pollution of water", "Pollution of soil" and "Microplastic" (p.137); own-operations pollution is not material ("no significant impacts, risks or opportunities related to pollution within the BMW Group's own operations", p.138) while supply-chain soil and water pollution is material and managed through supplier due diligence (p.138). "The BMW Group's products themselves do not present any material topics related to air, water, or soil pollution" (p.139); the EU-legislation datapoint table marks the E-PRTR pollutant-amount datapoint (E2-4.28) "Not material" (p.239).

Reference: page 140.

"As part of its environmental policy, the Group follows a water strategy that begins with a detailed analysis of water risks" using the "Aqueduct Atlas to identify sites in regions experiencing high or very high water stress" (p.140), material for the Group's own operations. The BMW Group also "issued a joint statement with the World Wide Fund For Nature (WWF) and other companies back in 2021 to pledge not to extract raw materials from the deep sea," though "no material impacts, risks or opportunities have been identified" for ocean extraction specifically, so no further dedicated strategy is pursued there (p.141).

Reference: page 140; pages 140-143.

Actions include site-selection screening of "hydrological and hydrogeological conditions", wastewater-treatment standards aligned to German and EU water law, and a plan to "install a dry separation system in the paint shop at the Leipzig plant by 2027 to further reduce water consumption" (p.140-141). Engine-production measures include "cascade rinse systems" alongside recycling systems and conversion of painting systems "from wet scrubbing to dry separation" (p.141-142).

Reference: page 141.

"The BMW Group has set itself the target of reducing the amount of potable water withdrawn for automobile production by 25% by 2030 compared to the base year 2016" (p.141). Progress: "specific potable water withdrawal per vehicle in automobile production was lower than the previous year at 1.62 m3 (2024: 1.67 m3/-3.0%)" (p.141). Targets are site-specific, reviewed annually, and incorporate Aqueduct Atlas water-stress analysis (p.141).

Reference: page 142; pages 141-142.

"Total water consumption" was 1,861,542 m3 in 2025 versus 2,093,253 m3 in 2024 (-11.1%); consumption "in areas at water risk, including areas of high water stress" was 1,249,501 m3 (2024: 1,411,145, -11.5%) (p.142). Water intensity was "14.13 m3/€ million (2024: 14.89 m3/€ million/-5.1%)" of revenue, and stored water totalled "455,054 m3 (2024: 458,025 m3/-0.6%)" (p.142).

Reference: page 144; pages 144-146.

"The BMW Group's current measures are based on the logic of the reduction hierarchy: avoid - reduce - compensate" and "offsetting measures are not used for biodiversity management purposes" (p.145). Biodiversity is embedded via the strategy's circular-economy and climate pillars: "The BMW Group has set itself the target of significantly reducing the CO2e emissions of its products over their entire life cycle by 2030" as a biodiversity-relevant action, since "climate change is impacting land and marine ecosystems around the world" (p.144).

Reference: page 145; pages 144-145.

The Group "has committed to sourcing cowhide leather ... and components containing cowhide leather from supply chains that are free from deforestation and land conversion by 2030" as co-signatory to the "Deforestation Free Call to Action for Leather" with LWG, Textile Exchange and WWF (p.145), and is a member of the "Global Platform for Sustainable Natural Rubber (GPSNR)". The "BMW Group Anti-Deforestation Policy" addresses "due diligence and traceability measures, complaint and monitoring mechanisms, and material-specific requirements" for natural rubber, leather, paper and wood (p.145).

Reference: page 145.

"The BMW Group has implemented a multi-stage due diligence process in the supply chain to minimise negative impacts" on biodiversity, through the Supplier Code of Conduct and participation in the Living Rubber project in Indonesia, which aims "to empower affected communities to adopt responsible practices for the production of natural rubber" (p.145). "The department for Sustainability is responsible for the BMW Group's approach to biodiversity," with the Sustainability Supplier Network department handling supply-chain implementation (p.145).

Reference: page 144; pages 144-145.

Biodiversity targets run through climate and resource-use commitments rather than a standalone biodiversity metric: "The BMW Group has defined clear targets to counteract the main causes of biodiversity loss," with "particular attention ... paid to climate change mitigation, conserving resources, improving water efficiency and environmental protection, and responsible land use," while noting "there is currently no standardised methodology for measuring biodiversity loss" (p.144). The 2030 deforestation-free leather sourcing commitment (p.145) is the most concrete dated target.

Reference: page 148.

"The circular economy is one of the strategic focus areas for the BMW Group. Making greater use of secondary material is therefore a pillar of the BMW Group Strategy" (p.148), pursued "to reduce CO2e emissions as well as the environmental and social impacts associated with the extraction and processing of primary raw materials" and to "hedge against geopolitical risks and regional restrictions." "Four core elements were identified and approved by the Board of Management" underpinning the strategy (p.148).

Reference: page 150; pages 148-154.

Actions sit under the "Ready for Circularity" principle, spanning "research and development, material procurement, supplier qualification, production, sales, the product use phase, and optimised use of materials and components at the end of a product's life cycle" (p.151), supported by "guidelines for product, material and supplier requirements" to raise recycled-material content (p.148) and by the raw-materials risk-analysis system described in Responsible raw material management (p.150).

Reference: page 148; pages 148-149.

"The BMW Group has additionally set itself an independent target in relation to resource use and circular economy in the Automotive segment. This Group-wide target is reported on for the first time in the 2025 reporting year": "all automobiles produced globally in 2030 must have a total average recycled content of at least 25%" (p.148-149), based on internal historical data and consistent with reducing primary-material use in the upstream value chain.

Reference: page 150; pages 150-151.

"Resources inflows including process materials used in manufacturing amount to 5,390,189 t (2024: 5,637,887 t/-4.4%)", mainly steel, aluminium and thermoplastics (p.150). "Total weight of secondary reused or recycled components, secondary intermediary products and secondary materials" rose to 925,656 t (2024: 816,299 t, +13.4%), lifting the secondary-content share to "17.2% (2024: 14.5%/+18.6%)" (p.150). Prior-year figures were restated for the integration of motorcycle production into the methodology (p.150).

Reference: page 150; pages 148-151.

Resource outflows are addressed jointly with inflows under "ESRS E5-2, E5-4, E5-5" (p.150): the 17.2% secondary-material content of products (up from 14.5% in 2024) reflects the outflow side of the circular-economy target, and the new 2030 target that "all automobiles produced globally ... must have a total average recycled content of at least 25%" (p.148-149) is itself a resource-outflows metric for products placed on the market.

Reference: page 167; pages 167-169.

"As a global company, the BMW Group takes a holistic approach when it comes to its social responsibilities" and "works in close cooperation with the General Works Council to uphold fair working conditions and respect for human rights" for employees, suppliers and sales partners (p.167). "In 2005, the BMW Group reaffirmed its position in a joint declaration on human rights and working conditions, which was signed by the Board of Management and employee representatives" (p.168), and the transformation to decarbonisation is to be "implemented in a socially just manner" under the Just Transition Policy (p.167).

Reference: page 173.

"The BMW Group is continuously evolving on the basis of its Corporate Development Framework (CDF) ... affected employees and interest groups are informed, involved and enabled throughout change processes," with employee representatives engaged as key stakeholders "depending on the project and the specific conditions" (p.173). Channels include "Company meetings in Germany, communication via the intranet, email and employee events," with the most suitable channel chosen based on the type of information (p.173).

Reference: page 173; pages 173, 185.

Employees can "address their concerns directly with their manager or HR department," and the BMW Group "promotes regular dialogue between employees and the Company, particularly at locations where employees do not have representation" (p.173). Group-wide notification and case-management systems (the BMW Group SpeakUp Line and the Compliance Organisation's notification system) are available to employees as well as suppliers and third parties for reporting concerns, with all notifications "checked and ... documented and processed" via an electronic case-management system (p.185, p.196).

Reference: page 171; pages 171-181.

Actions span secure employment (the 2025 Just Transition Policy, p.171), health and safety (DIN ISO 45001 certification at 100% of sites since 2025, p.176), competency development (€377.5 million invested in training and further education in 2025, 2024: €415.5m, -9.1%, p.175), and equal opportunities in remuneration (gender pay gap of -9.9%, p.180). These actions are organised under the "Secure employment", "Competency development and performance management", "Health and occupational safety" and "Equal opportunities" sub-chapters (pp.171-181).

Reference: page 171.

"The BMW Group has set itself the target of being among the top 3 most attractive employers each year in a clearly defined competitive environment in Germany," covering pupils, specialists, academic professionals and engineering/IT students, monitored via the Trendence ranking (p.171). "In 2025, the Trendence employer ranking system once again named the BMW Group the most attractive employer across all target groups," including "the no. 1 spot among academic professionals" for "the fourteenth consecutive year" (p.171).

Reference: page 172.

"As of 31 December 2025, the BMW Group employed a workforce of 155,497 people worldwide" (2024: 158,441, -1.9%), of whom "146,064" held permanent contracts (2024: 145,846, +0.1%) and "9,433" were temporary (2024: 12,595, -25.1%) (p.172). By gender, male employees numbered 116,968 (-0.2%) and female employees 29,058 (+1.4%) (p.172), broken down further by region and country.

Reference: page 172.

"In addition to its own employees, the BMW Group also has non-employees. These are mainly temporary agency workers," defined in line with the ILO Declaration, hired through an agency with "no employment relationship between the temporary agency worker and the user company" (p.172). "The entire workforce of the BMW Group, including temporary agency workers, was considered equally in the materiality assessment" (p.172). Consistent with the company's own "List of Phased-in Disclosure Requirements", which marks S1-7 "Complete phase-in for KPI, only qualitative information" (p.237), no headcount figure for non-employees is quantified.

Reference: page 174; pages 173-174.

"The BMW Group recognises the right of all employees to representation and to conduct collective bargaining ... Employees are neither favoured nor disadvantaged because of their membership or non-membership of a trade union" (p.173). "Around 77% of employees in the BMW Group are covered by collective bargaining agreements" (p.174), with coverage also calculated for the European Economic Area; the Supervisory Board includes "three members elected following nomination by trade unions" among the employee representatives (p.111).

Reference: page 178.

"The BMW Group does not tolerate discrimination of any kind. Every individual is entitled to a workplace that is free from discrimination, preferential treatment or harassment based on characteristics such as gender identity, skin colour, religion, nationality, political or other beliefs, ethnicity, disability, age or sexual orientation" (p.178). Gender split of the workforce: 116,968 male and 29,058 female employees (p.172); female representation on the Board of Management was 14% and on the Supervisory Board 30% in 2025 (p.108, p.111).

Reference: page 175.

"The BMW Group has committed itself to investing an amount in the mid-three-digit million range per year in vocational training and further education ... In 2025, these investments totalled €377.5 million (2024: €415.5 million/-9.1%)" (p.175). "The extensive training measures provided amounted to an average of 17.7 hours per employee (2024: 20.2 hours/-12.4%)" (p.175). Per the company's own phased-in list, the gender breakdown of this metric uses "Partial use" of the transitional relief (p.237).

Reference: page 178; pages 176-178.

"All plants operate under occupational health and safety management systems. All of these systems have been DIN ISO 45001 certified since 2025," covering 100% of employees, other BMW Group employees and temporary agency workers (p.176). "In 2025, there were 802 occupational accidents within the BMW Group (2024: 891 ... /-10.0%) and the accident frequency rate was 2.6 (2024: 2.9/-10.3%). There were a total of 4 fatalities due to work-related accidents (2024: 2 .../+100%)" - one employee and three external-company workers (p.178). "There were 0 reported fatalities due to work-related ill health" (p.178). Per the phased-in list, days-lost-to-illness uses "Partial use" of the relief (p.237).

Reference: page 180.

"The Gender Pay Gap was -9.9% (2024: -10.9%/-9.2%). The gender pay gap in favour of female employees of the BMW Group is largely due to structural effects" - production roles, which pay less than administrative or development roles, employ "a disproportionately large percentage" of men (p.180). "The Total Remuneration Ratio was also calculated for the first time ... It was 1:72 in the reporting year," the ratio of the highest-paid individual's total remuneration to the median employee's (p.180).

Reference: page 182; pages 182-183.

"Compliance with environmental and social standards is a key principle in the BMW Group's purchasing and supplier network," with "particular emphasis ... placed on the responsible procurement of raw materials" (p.182). The "BMW Group Supplier Code of Conduct" sets "minimum requirements for suppliers" on human rights and environmental standards, extended contractually from direct to indirect suppliers, and is built on named external frameworks and guidelines (p.183).

Reference: page 184; pages 182-185.

Engagement with value chain workers runs through the multi-stage due-diligence process: "on-site assessments", a "sustainability questionnaire (online assessment)", and "certification and traceability of raw materials supply chains" (p.184-185, citing ESRS S2-1/S2-2/S2-4 material-IRO actions). "Based on the LkSG risk analysis, a significant risk of restrictions on employment freedom in Taiwan was identified. Concrete measures are being taken to counter this (project within the sector dialogue)" (p.183).

Reference: page 185.

"The BMW Group has established internal systems ... to correct any substantiated (verified) evidence of environmental or human rights violations in the upstream supply chain ... accessible to employees, suppliers and other third parties alike" (p.185), supplemented by external channels such as those of the RBA and a Mexico-specific complaints mechanism piloted since 2024. "In the reporting year, 27 notifications of potential violations of the sustainability principles in the supply chain were received through the reporting channels (2024: 22 notifications/+22.7%). Of these, 10 were resolved in the reporting year, with none of the indications turning out to be justified" (p.185).

Reference: page 183; pages 183-187.

Where notifications are substantiated, "we work with the supplier to initiate suitable remedial and preventive measures. A target date is agreed by which time the implementation of each measure is to be completed" (p.185); a supplier relationship may be "suspended temporarily" or, as a last resort, terminated - "In the reporting year, no existing supplier relationship was terminated due to severe sustainability violations" (p.185). Raw-material-specific preventive and remedial measures follow from the Group's annual raw-materials risk analysis (pp.185-187).

Reference: page 183.

"The BMW Group maintains a holistic overview of environmental and social standards within its supplier network. Our overarching objective is to protect our business activities against negative human rights and environmental impacts" (p.183). Targets take the form of "overarching targets for the procedures used to perform due diligence in the supplier network" rather than outcome metrics, assessed through regular "analysis of the effectiveness of the processes and measures implemented" (p.183, citing the material-IRO table for working time, adequate wages and related S2 sub-topics).

Reference: page 188.

"ESRS S4 relates to a company's consumers and end-users. The BMW Group defines these stakeholders as all those who choose its products and services" - private and business (Corporate Sales, B2B) customers of new and pre-owned vehicles, Financial Services products and digital services such as ConnectedDrive, "considered on an equal footing" in the materiality assessment (p.188). The Group's social responsibility "also includes ensuring that fair working conditions and human rights are upheld in the sales organisation" (p.188).

Reference: page 189; pages 188-190.

"The BMW Group's Customer, Brands and Sales (CBS) system makes customer experience the focus of all its marketing and sales activities," including "seamless linking of digital and physical contact points" (p.188). Engagement channels include the Customer Interaction Centre (phone, email, post, web form and online chat), AI chatbots and self-service tools, the My BMW/MINI/Motorrad Connected apps, and regular new-car-buyer and brand-perception surveys feeding into product design and marketing strategy (pp.188-190).

Reference: page 190; pages 189-190.

Customers can raise concerns through the Customer Interaction Centre by "phone, email and post", through "a web form and online chat feature", the Company's global sales network, the My BMW/MINI/Motorrad Connected apps, or external social media channels (pp.189-190). CIC agents "go through mandatory training to ensure a high quality standard", and customers are invited to rate how well their issue was resolved at the end of each interaction (p.189).

Reference: page 189; pages 189-194.

"The customer focus performance component (product and customer service quality) was set as a non-financial target for the Board of Management in the reporting year. Customer satisfaction serves as a performance indicator" (p.189). On product safety: "In 2025, the Company performed safety- and compliance-related technical operations that affected approximately 4.9 million vehicles (2024: 12.2 million vehicles/-59.4%)", all voluntary and coordinated with authorities (p.194). Interior air filters with nanofibre technology are fitted as standard to reduce in-cabin pollutant exposure (p.194).

Reference: page 189.

"To measure its success, the Company refers to a specific indicator in its core markets each year," drawn from post-purchase and early-ownership customer satisfaction surveys covering product, sales, service and digital offerings (p.189). Results feed a "catalogue of measures" including "training for employees in direct contact with customers" and "review and optimisation of processes and responsibilities" (p.189), reported to the Board of Management as part of target management.

Reference: page 195.

"The BMW Group's corporate culture is based on values and fundamental beliefs, founded on trust, mutual respect and tolerance. The BMW Group Code of Conduct translates the BMW Group's corporate values into essential guiding principles for all employees" (p.195). The Compliance Management System (CMS) "applies to all affiliated companies in which BMW AG holds a majority interest of more than 50%"; BMW Brilliance Automotive "maintains its own CMS which has the same level of effectiveness as the BMW Group CMS" (p.195).

Reference: page 195; pages 195-197.

"The Compliance Management System (CMS) comprises measures to combat corruption and bribery ... In its internal regulations on anti-corruption, the BMW Group takes into account the standards established by the United Nations Convention against Corruption (UNCAC)" (p.195-196). Training and detection run through the "Compliance Essentials" e-learning course (repeated every two years) and the BMW Group SpeakUp Line; "compliance investigations are conducted on an ad hoc or non-ad hoc basis" by local or central Group Compliance depending on scope (p.196).

Reference: page 196; pages 196-197.

"The BMW Group strives to maintain a training rate of at least 95% at all times for the web-based 'Compliance Essentials' training course" for high-risk functions (p.197). "The target training rate was achieved or exceeded in both the reporting year and 2024" (p.196): valid training certificates stood at 97% in 2025 (2024: 97%, no change), covering 102,950 persons (2024: 101,132, +1.8%) (p.197).

Reference: page 197; pages 197-200.

Political engagement is assessed as a risk: "Participation in political decision-making in an extensive manner leads to reputational damage and negative publicity" (p.197). "The BMW Group's lobbying activities are coordinated in committees. The documents are fully recorded and made available using the BMW Group's internal committee management system" (p.197). "Given that lobbying activities depend on external factors, the BMW Group's policy for representing its interests does not include measuring targets or effectiveness" (p.197); positions, transparency-register entries and political contributions are disclosed at pp.197-200.