BMW Group’s strategic supplier engagement - CDP (2024)

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BMW Group works with around 13,000 suppliers across 70 countries. This vast, global supplier network therefore represents a major source for value creation, quality and innovation for the group, but also inherent risks if left unaddressed.

In order to better manage its supplier network and to capitalize on opportunities, BMW Group has integrated its supply chain approach into a group-wide corporate sustainability strategy, as well as its functional purchasing strategy. This integration at a corporate level is supported by a two-pronged approach; (1) annual, internal target-setting; (2) supplier engagement based on CDP KPIs including transparency and CO2 emissions reporting criteria.

As part of this strategy, BMW Group has integrated CDP into its annual Supplier Performance Reviews (SPR) for its top-100 suppliers assessing them against key indicators, such as emission targets, reduction initiatives, and changes in absolute emissions. This allows the company to track year-on-year performance, develop competitive benchmarks, and inform BMW Group’s future supplier engagement strategy. The company also engages suppliers which do not directly participate in annual performance reviews on a bilateral basis through its Commodity Supply Chain Strategy.

As a result of its targeted supplier engagement strategy, BMW Group has initiated pilot projects for emission reductions in 2016 in collaboration with key suppliers, while setting bilateral targets for its highest CO2-emitting suppliers. Since joining the Supply Chain Program in 2014, BMW has systematically invited its suppliers to disclose to CDP, representing 69% of BMW Group’s annual global spend.