Sustainability Case Study
Sample Solution
BMW is focusing on carbon emissions in the full value chain because it is committed to sustainability and reducing its environmental impact. The company believes that it is important to address all aspects of the vehicle lifecycle, from manufacturing to disposal, in order to make a real difference.
Pros and cons of focusing on carbon emissions in the full value chain
Pros:
- Reducing carbon emissions throughout the vehicle lifecycle can have a significant impact on the environment.
- It can also help BMW to improve its brand image and reputation as a sustainable company.
Full Answer Section
Cons:
- Reducing carbon emissions can be expensive and challenging.
- It may require BMW to make changes to its manufacturing processes and supply chain.
- It may also require BMW to develop new technologies and materials.
Life cycle carbon emissions of an ICE vehicle versus a BEV
The following table shows the life cycle carbon emissions of an ICE vehicle versus a BEV, based on the assumptions in the supporting spreadsheet:
| Vehicle type | Life cycle carbon emissions (kg CO2e) |
|---|---|
| ICE vehicle | 22,453 |
| BEV | 17,910 |
Scenarios in which ICE emissions are lower than BEV emissions
There are a few scenarios in which ICE emissions could be lower than BEV emissions. For example, if the electricity used to charge a BEV is generated from a high-carbon source, such as coal, then the BEV's carbon footprint would be higher. Additionally, if the BEV is driven a relatively short distance over its lifetime, then the carbon emissions from the manufacturing and disposal stages of the vehicle's lifecycle would be a larger proportion of the total emissions.
Conclusions
In general, BEVs have lower life cycle carbon emissions than ICE vehicles. However, there are a few scenarios in which ICE emissions could be lower. BMW should focus on reducing carbon emissions throughout the vehicle lifecycle, including the manufacturing and disposal stages.
Trust in different categories of carbon emissions
The following is a brief overview of the different categories of carbon emissions and my level of trust in each category:
- Scope 1 emissions: These are direct emissions from BMW's operations, such as those from its factories and vehicles. I have a high level of trust in the accuracy of Scope 1 emissions, as these are directly controlled by BMW.
- Scope 2 emissions: These are indirect emissions from BMW's energy consumption, such as those from the electricity it uses to power its factories. I have a medium level of trust in the accuracy of Scope 2 emissions, as these can be more difficult to measure and report.
- Scope 3 supply chain emissions: These are emissions from BMW's suppliers, such as those from the production of raw materials and components. I have a low level of trust in the accuracy of Scope 3 supply chain emissions, as these are the most difficult to measure and report.
- Scope 3 use-phase emissions: These are emissions from the use of BMW's vehicles by customers. I have a medium level of trust in the accuracy of Scope 3 use-phase emissions, as these can be estimated using driving data and other factors.
How BMW should communicate its sustainability strategy to stakeholders
BMW should communicate its sustainability strategy to stakeholders in a clear and transparent way. The company should explain its goals and targets for reducing carbon emissions, and it should provide regular updates on its progress. BMW should also be open and honest about the challenges it is facing in reducing its carbon footprint.
Here are some specific ways that BMW could communicate its sustainability strategy to stakeholders:
- Publish a sustainability report that outlines the company's goals, targets, and progress.
- Hold regular investor briefings and media briefings on sustainability initiatives.
- Create a dedicated sustainability section on the BMW website.
- Share sustainability stories on social media.
- Partner with other companies and organizations on sustainability initiatives.
By communicating its sustainability strategy in a clear and transparent way, BMW can build trust with stakeholders and demonstrate its commitment to sustainability.