BMW Group secures CO2-reduced steel supplies for global production network

BMW Group secures CO2-reduced steel supplies for global production network

New supply agreements in US and China; lower CO2 emissions for over one- third of global steel purchasing volume; focus on innovative technologies, renewable energies and circular economy

In what is now a trend with global automakers, the BMW Group is significantly reducing the carbon footprint of its steel sourcing and systematically pursuing its climate goals for the supplier network. Following initial contracts with European suppliers, the BMW Group has now concluded further agreements for the supply of CO2-reduced steel in the US and China.

“Steel is one of the main sources of CO2 emissions in our supply chain. That is why we are comprehensively reorganising our steel portfolio – so we can supply our global production network with over one third of CO2-reduced steel from 2026. This will reduce the carbon footprint of our supply chain by 900,000 tonnes per year, while at the same time driving the transformation of the steel industry,” said Joachim Post, member of the Board of Management of BMW AG responsible for Purchasing and Supplier Network.

In the medium term, the BMW Group will increase CO2 savings through agreements with additional steel suppliers and thus consistently drive forward the decarbonisation of its supplier network. Around 20 percent of supply chain CO2 emissions for a mid-sized fully-electric vehicle are attributable to steel – which comes in third, after battery cells and aluminium. With its versatile properties, steel is nevertheless one of the key materials for automotive manufacturing and will be no less important for future vehicle concepts and generations.

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