Dear President Chen,
A very warm “hello” from Munich – and thank you for the opportunity to speak at the EV100 Global Summit.
Just a few weeks ago, we delivered the first BMW iX3 to our customers in China. It is our latest fully electric model. We are producing it in Shenyang, and we are looking forward to exporting it globally.
In 2020, we were delighted to attract more customers in China than ever before. China has managed the global Corona crisis very well.
And I would like to highlight the huge efforts and support by all authorities and also our partners who have made this possible, especially in the automotive industry.
The economic growth in China has been accompanied by a firm commitment to sustainability.
We are encouraged that President Xi has announced that China will achieve the goals of carbon peak before 2030 and carbon neutrality by 2060. The BMW Group fully supports these goals.
Already today, China boasts some of the world’s leading battery manufacturers and is also rapidly expanding its renewable energy sources. This development underlines that sustainability is far more than a short-term trend. In the long run, it will lead to superior solutions in technology and ensure lasting prosperity.
At the BMW Group, we share this mindset. By taking decisive action today, we are securing the future. That’s why we have made sustainability and resource efficiency central to our company’s strategic direction.
We will prove:
Sustainability goes hand in hand with business excellence.
In 2020 already, we were named automotive leader of the Dow Jones Sustainability Index and the Carbon Disclosure Project.
So today, I would like to briefly share our vision and practices on sustainability. Three things are important:
First: We need substantial targets and transparent reporting of progress.
Second: We need to take action across the entire value chain, from the vehicle’s “cradle to grave”. This requires cross-sector collaboration.
And third: Sustainable products have to be desirable – because this is the best incentive for customers.
To the first point: Transparent and substantial targets.
BMW is a technology-driven company. We want to advance climate protection by technological progress.
This means: All our targets imply substantial greenhouse gas reductions rather than mere compensation measures.
And we want to act now and today, in a period of time that we can actively influence.
By 2030, we want to reduce the lifecycle emissions per vehicle by at least one third compared to 2019. Our baseline is an average of 52 tons CO2 equivalent per vehicle.
At the same time, we want to greatly increase the share of secondary material in our vehicles.
With these targets, we are not only reducing CO2 and conserving resources. We are also saving costs through efficiency.
This creates a long-term win-win situation. We believe that the best sustainability solutions also have to make economic sense.
Starting this year, our annual report will also provide transparency about the progress towards our sustainability targets, in addition to information on our business development.
And to underscore our commitment, target fulfilment is also a factor in the compensation of our executive management.
My second point is collaboration and our efforts across the entire value chain.
Without any measures, our CO2 footprint in the supply chain would increase by 40% per vehicle over the next 10 years.
This is due to the rising number of electrified vehicles and the big amounts of energy required to create batteries.
We want to initiate the trend reversal and even lower CO2 by 20% compared to 2019.
This is only possible in mutual agreement and collaboration with our partners. One of them is CATL.
Our strong cooperation initiated CATL’s expansion to Germany.
With CATL and all of our other battery suppliers, we have agreed to only use electricity from renewable sources in battery manufacturing.
This alone saves 10 million tons of CO2 until 2030.
In our own production, we want to achieve a substantial 80% CO2 reduction with efficiency measures and renewable energies. We want to show what is possible in this field.
And we are very proud that our Shenyang plants are already among the first to be recognized as China’s “National Green Plant”.
In the use phase of our vehicles, we want to cut emissions by 40%. This year alone, we want to sell 100,000 fully electric vehicles.
And by 2030, we want to have more than 7 million electrified vehicles on the road worldwide. Fitted with our self-developed and high-performance electric drivetrain. This includes models like the all electric
an electric 7 series, 5 series and an X1
or the electric MINI which we are going to produce together with Great Wall in China.
We know: Electro mobility can only be successful when customers are able to recharge their vehicles conveniently. We are strongly supporting the build-up of charging infrastructure.
In China, BMW customers can already access 270,000 charging points today, and this number must and will increase along with the number of electric vehicles on the road.
When a vehicle reaches the end of its life, it still contains many valuable resources for second use. Together with a German recycling specialist, we have developed a method that allows to reuse more than 97% of battery materials without burning them. Ideally, we will achieve an almost fully closed material circle in the future.
My third and last point is the most important: Sustainable products have the biggest impact when they can inspire customers and find strong demand.
For the most part, customers are not willing to sacrifice functionality or pay a big premium for sustainability.
对于大多数客户而言，他们并不愿意为了可持续性而让渡功能性或是支付大价钱。Our main task in the automotive industry is to create superior products that fulfill all needs and at the same time, are desirable.
In November last year, we presented the BMW iX for the first time. It sets a new benchmark for innovation in electric and digital cars. I’ve driven it myself many times and it is truly something else.
It has outstanding digital functions: More computing power, better sensor technology and 5G connectivity. And of course, over-the-air updates.
The user experience is intelligent and intuitive. The tech is invisible, but always there when you need it. We call this shy tech.
The interior is minimalistic, classy and spacious.
For me, vehicles like the BMW iX prove:
Sustainability does not have to mean going without comfort and joy.
They fit perfectly together.
In China alone, more than one thousand of our developers are working on next level mobility solutions. This also involves cooperation with major tech partners like Tencent or Alibaba.
Ladies and Gentlemen,
In 2021, China will implement its next “Five Year Plan”.
From our perspective, it is key:
To continue to take decisive action – for example building up charging infrastructure.
To collaborate across industries to achieve maximum progress.
And to provide smart incentives that help the NEV market to grow further.
On that note, I wish you an insightful Global Summit. I look forward to visiting China again in the near future. Thank you.