INTRODUC TION

2020
SUSTAINABILITY REPORT
BMW Brilliance Automotive Ltd.

01 / BMW BRILLIANCE AUTOMOTIVE

 CONTENTS

Introduction
02 CEO's Message
05 Words from Our Senior Vice Presidents
07 An Overview of BMW Brilliance
09 Highlights in 2020
11 Our COVID-19 Response
13 Our Sustainability Progress

01 Fundamentals
19 Sustainability Management
25 Stakeholder Engagement
This is our Communication on 29 Compliance Management
Progress in implementing the principles
of the United Nations Global Compact
and supporting broader UN goals. 02 Climate Change Actions
We welcome feedback on its contents. 38 Climate-friendly Products and Services
45 Green Production
48 Supply Chain Climate Change Actions
51 Green Logistics

03 Accountable, Circular & Resilient Value Chain

57 Product and Service Quality
65 Circularity
69 Responsible Environment, Health & Safety Management
79 Business Accountability

04 Responsible Corporate Citizenship

85 Responsible Human Resources Management
94 People Empowerment
103 Corporate Social Responsibility

05 Appendix
122 About this Report
123 Key Performance Indicators
127 GRI Content Index
137 Limited Assurance Report
141 Basis of Reporting
INTRODUC TION

C EO' S M E S S AG E
R E S P O N D, R E T H I N K , R E I N F O R C E

2020 was a year that changed everything: From neutrality by 2060. BMW Brilliance fully supports
the COVID-19 pandemic to global effects of, and both of these goals, and will continue to create
responses to, climate change – last year shifted world-leading sustainable mobility technologies
the trajectory of the world. Amidst all these chang- that accelerate the world towards a greener future.
es, BMW Brilliance recognised the need to shift
and accelerate our approach to corporate respon- Rethinking our sustainability directions
sibility as well. Thanks to resolute crisis manage- The unprecedented challenges we faced in 2020,
ment and rigorous digital teamwork at all levels, and the ways our company responded to those
last year we responded successfully to global cri- challenges, have led us to view our approach to
ses, committed to rethink our approach in the fu- corporate responsibility in new ways. In order to
ture, and reinforced our dedication to sustainability align with the BMW Group’s new 2030 Sustaina-
and responsible corporate citizenship. bility Strategy, as well as the stakeholder expecta-
tions we uncovered through an engagement cam-
Responding to unprecedented challenges paign in 2020, we have refined our sustainability
The COVID-19 pandemic brought immediate chal- directions to the following three areas: climate
lenges to our business and to the world. When COV- change actions; accountable, circular, and resilient
ID-19 first struck China, BMW Brilliance was one of the value chain; and responsible corporate citizenship.
first automotive manufacturers to respond, offering
targeted donations and urgent assistance to the hard- Reinforcing sustainability efforts across our
est-hit areas. Moreover, with a workforce of 20,000 as value chain
well as hundreds of thousands more people employed By focusing our efforts on these three strategic di-
throughout our value chain, protecting our people, rections, we can use our business to help address
our partners and stabilising the value chain became the most pressing problems facing our industry,
an immediate top priority. Throughout the year, and our society, and the world as a whole.
in the years to come, we will continue to support the
people and places most affected by this crisis. Our climate change actions address the impacts—
and the innovative solutions we have developed—
Climate change led to more-frequent extreme of our products, our operations, and our supply
weather events across China and around the world chain. The first-ever BMW iX3, which premiered
in 2020, and governments made commitments in 2020 in China, is a ground-breaking, all-electric
that will shape our business in the coming years. vehicle produced exclusively by BMW Brilliance
The European Union submitted an updated and in Shenyang, using 100% renewable electricity,
enhanced Nationally Determined Contribution with and shipped using low-carbon rail and sea logis-
a target to reduce greenhouse gas emissions by at tics. This vehicle represents a true path forward
least 55% by 2030 from 1990 levels, while the Chi- for sustainable mobility. And we have enhanced
nese government committed to achieving carbon and expanded our NE V charging infrastructure,

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INTRODUC TION

“At BMW Brilliance, we are proud to play a role in shaping

the future of mobility— a green, low-carbon, sustainable
individual mobility ecosystem."

so that our customers can now access more than Priorities in 2021
300,000 public charging pillars across China— The year of 2021 marks the beginning of China’s
helping us achieve our goal of enabling zero-emis- 14th Five-Year Plan, which places a strong em-
sion long-distance travel. In 2020, we strength- phasis on green, low-carbon, sustainable devel-
ened our efforts in developing a low-carbon supply opment. BMW Brilliance fully supports these sus-
chain, partnering with suppliers that use renewa- tainability commitments, and we are committed to
ble energy and launching a Supply Chain Climate developing concrete targets for our updated sus-
Change Initiative to help suppliers improve energy tainability directions, and continuing our support
efficiency and CO2 transparency. For aftersales to the United Nations Global Compact and its Ten
and spare parts logistics, we increased our use of Principles. With a dedicated workforce, like-minded
rail transport for imported spare parts from Europe partners, and innovative technologies, our com-
to lower our carbon footprint further. pany will stride towards our vision of becoming the
leading sustainable provider of premium individual
Within our own operations, BMW Brilliance is em- mobility in China’s automotive industry.
phasising resource efficiency and circularity. In
2020, we achieved significant reductions in water
and energy consumption per vehicle produced, as
well as in waste for disposal per vehicle produced.
Working alongside our manufacturing and recy-
cling partners, we created our first closed-loop
system for steel, while continuing to enhance our
high-voltage battery recycling and parts remanu-
facturing capabilities.

The COVID-19 pandemic showcased our emphasis

on responsible corporate citizenship. BMW Brilliance
took immediate, comprehensive action to safeguard
the health and safety of our employees, and worked
closely with business partners to cope with the chal-
lenges we faced together. We also made timely, tar-
geted financial and material contributions to support
Chinese society in the anti-pandemic battle. We ad-
justed our flagship CSR programmes to meet the new Dr. Johann Wieland
normal, using innovative solutions to continue our President and CEO
long-term commitment to benefitting Chinese society. BMW Brilliance Automotive Ltd.

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INTRODUC TION

WO R D S F RO M OU R
S E N I O R V I C E P R E S I DE N T S

Franz Decker Wang Jun Sean Green David Shangguan

Senior Vice President Senior Vice President Senior Vice President Senior Vice President
Technology and Manufacturing Finance Sales and Marketing Human Resources

Q1: A1: In 2020, and in the months and A2: The world premiere and export of A3: Given the climate commitments from A4: Without a doubt, 2020 brought sig-
How can next-generation years to come, we are integrating more the first-ever BMW iX3 demonstrates the BMW Group, the Chinese govern- nificant challenges to our company and
production technologies contribute advanced manufacturing technologies our leadership in the future of mobility ment, and countries around the globe, our workforce. We learned—very quick-
to a more efficient, circular, and and digital innovations to achieve an and the battery electric vehicle market. there is no doubt that electrification is ly—the value of prompt, transparent,
low-carbon value chain? intelligent, efficient, and flexible produc- The all-electric iX3 also represents our central to our future, and we are well-po- and effective communication in order
tion system producing highest quality commitment to green, sustainable de- sitioned to play a leading role in shaping to keep our employees informed, con-
product s. T hese new technologies, velopment: A green car, built in a green the future of mobility. As well as growing nected, and engaged. We also achieved
Q2: such as big data, virtual reality, 5G, and plant, and transported using green our NEV dealer outlets in China to 495 new levels of service for our medical
In the coming years, what role BMW AI solutions, will also help us achieve a logistics. At the same time, the future of last year, an increase of 10% from 2019, services and employee benefits, while
Brilliance can play on the global low-carbon value chain, which we can BMW Brilliance is firmly rooted in local we also expanded the public charging reimagining the ways we work to facili-
stage and at home in China? accelerate by optimising our energy us- development, as it has been since our infrastructure our customers can access tate efficient, secure, convenient remote
age with energy-saving initiatives and founding. In 2020, we contributed 38 by 135.3% in 2020. Today, we offer more work. And while our total workforce
by incorporating renewable electricity billion RMB in taxes, an 8.6% increase than 300,000 public charging pillars grew by 4.6% in 2020 to reach 20,739
Q3: in our plants. By continually making our from 2019, and increased our local across China. And we continue to improve employees, we anticipate growing even
How is the electrification and operations more efficient, we achieved content purchasing volume in China by our recycling capabilities for high-voltage further to meet demand for our products
digitalisation of BMW Brilliance significant reductions in water and en- 10.5%. In 2020 we produced our 3-mil- batteries, with a 33.3% increase in 2020, and the production capacities created by
shaping the future of the company? ergy consumption per vehicle produced, lionth vehicle in Shenyang, and made while also developing innovative ways to our new facilities. As a result, we remain
as well as in waste for disposal per vehi- significant progress on our plant exten- reuse batteries whenever possible. The committed to developing detailed plans
cle produced. BMW Brilliance has made sion projects , which will increase our sustainability, convenience, and luxury we for advancing our workers’ careers, cre-
Q4: great progress in building a circular production capacity in China and create offer our customers is a result of our cus- ating clear succession plans for internal
As we look to a post-COVID era in value chain as well, maintaining 98% more jobs for the local community. We tomer-centric focus on delivering a premi- promotions, and enhancing our talent
China and around the world, what reusable packaging use for local parts will continue to expand our local supplier um experience. In addition to continually recruitment efforts. During the pandem-
lessons do you think BMW Brilliance transportation and establishing a fully network; to date we work with 400 local improving the safety and performance of ic, BMW Brilliance quickly shifted our hir-
has learned to support our employees? circular model for steel in 2020. And content suppliers here in China, as well our products, new digital solutions like the ing and job fairs to online platforms, and
we are sharing our best practices with as more than 1,000 indirect purchasing My BMW app and digital integrations at we found this digital approach provided
key suppliers to help them establish suppliers. This localisation of our sup- BMW dealer outlets around the country us more reach to promising candidates
CO2 disclosure mechanisms and energy ply chain reduces our environmental improve the customer experience, and across China and internationally. We
management capabilities, to cascade footprint while increasing the economic our commitment to data privacy and com- expect to continue to embrace in-person
sustainability into our value chain. benefits we bring to our society. pliance with the Cybersecurity Law of the as well as online recruitment, talent de-
People's Republic of China to ensure that velopment, and education programmes
our customers’ data remains protected. well into the future.

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INTRODUC TION

A N OV E R V I E W O F
OUR PRODUCTS
BMW BRILLIANCE

1
BMW 1 Series
Sedan

ABOUT BMW BRILLIANCE

3
BMW 3 Series
BMW Brilliance was founded in 2003 as a joint
Long Wheelbase and
venture of the parent companies Bayerische Shenyang Standard version
Motoren Werke Aktiengesellschaft (BMW) and
Brilliance China Automotive Holdings Limited. Beijing

5
BMW 5 Series
Our business operations include production, Long Wheelbase
*including plug-in hybrid model
research and development, supply chain
management and purchasing, sales, and aftersales
services of BMW automobiles in China. BMW
Brilliance has a state-of-the-art production base Xi’an
Zhengzhou
X1 BMW X1
Long Wheelbase
in Shenyang, Liaoning Province—an industrial *including plug-in hybrid model

heartland of China.

X2
Shanghai
Chengdu Hangzhou
We are inspired by the potential of doing business in BMW X2
Ningbo SUV
a sustainable manner and guided by our aspiration
to be the leading sustainable provider of premium

X3
individual mobility across the entire value chain of
China’s automotive industry. BMW X3
SUV

iX3
Guangzhou
Foshan BMW iX3
Fully Electric SUV

OUR FACILITIES OUR DELIVERIES

2 Complete Vehicle Plants in Dadong and Tiexi 600,554 Automobiles produced BMW 3
Cylinder Engine
1 Powertrain Plant in Tiexi 605,050 Automobiles wholesaled

2 Branch Offices 27,664 New Energy Vehicles wholesaled

BMW 4
5 Sales Regional Offices 666 Authorised dealer outlets
Cylinder Engine
8 BMW Brilliance Finished Vehicle Dispatch Areas

5 BMW Brilliance Spare Parts Distribution Centres

BMW High-voltage
Headquarter
4 Training Centres 1 OUR WORKFORCE
Branch Office
Battery for PHEV

17 Training Bases 2
20,739 Employees Sales Regional Office
Training Centre

Note:
Finished Vehicle Plant Dispatch Area BMW High-voltage
1. BMW-managed and deliver trainings for dealers. Finished Vehicle Decentralised Dispatch Area Battery for BEV
2. Cooperatively managed for vocational training. Open to dealers based on proximity. Provide BMW Certificate Courses and Body/Paint Courses for dealers. Spare Parts Distribution Centre

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INTRODUC TION

HIGHLIGHTS 01 02 07 08 09
IN 2020 JANUARY FEBRUARY JULY AUGUST SEPTEMBER

► Grand opening of BMW ► BMW Brilliance passed

Brilliance Associates’ the 2020 Annual National
Congress and Union Green Plant assessment.
Members’ Congress.
► The 2nd Meeting of
► Dr. Wieland participated in the China EV100 ► BMW Brilliance’s 3 millionth car rolled off the ► First BMW iX3 high- Sino-Germany High-End
Forum and met with Leaders of Central production line. voltage battery rolled off Equipment Manufacturing
Government. the production line in HVB Innovation Committee
► BMW China and BMW Brilliance donated 35
► BMW China and BMW Brilliance donated 5 million RMB in total towards anti-pandemic battle. Centre II. successfully held.
million RMB to fight pandemic. ► Launch of the BMW Brilliance ► BMW Brilliance participated
► Launch of the BMW 530Le e-range Extension
with E-range increased to 95km. Sustainability Report 2019. in the Round Table Dialogue
at GIV 2020.

03 04 05 10
MARCH APRIL MAY OCTOBER
► World premiere of the BMW iX3 and the start of presale in China.

► Official opening of BMW Brilliance HVB Centre II.

► Launch of the New BMW 5 Series Li.

► 2020 BMW Corporate Social Responsibility Forum.

► 2020 BMW China Culture Journey's Visit in Liaoning kicked off.

11
► Start of construction of ► BMW Brilliance Tiexi New ► The BMW Global "Diversity
BMW Brilliance Products Plant embraced the start Week" successfully held. NOVEMBER
Upgrading Project (Dadong) of construction. ► BBT Management Forum
Assembly & Logistics. ► BMW China Culture Journey Intangible Cultural Heritage Exhibition
► Construction ceremony 2020 hosted in Plant Tiexi.
in Shenyang successfully held.
► Official establishment of of BMW Brilliance R&D
BMW Brilliance Beijing Centre Phase II. ► Communication Workshop on Cybersecurity Law successfully held.
Trade Union. ► 2020 BMW Brilliance Supplier Media Visit held in Shenyang.

06 12
JUNE DECEMBER
► BMW Brilliance ranked #1 in
► Launch of the “BMW Good ► Export of the BMW iX3 to
the Automotive Enterprise
Rider” and “BMW Good the world market.
Green Development Index.
Driver” Initiatives.
► Kick-off ceremony of BMW
► High-quality Development
► BMW & State Grid EV Service Brilliance Art Season.
Forum of China-Germany
Strategic Cooperation signing
Equipment Manufacturing ► First phase of the BMW
ceremony.
Industrial Park held Brilliance Simulation Project
► First Anniversary of LingYue. successfully. went live.

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INTRODUC TION

OU R EMPLOYEES SUPPLIERS DEALERS CHINESE SOCIET Y

COV I D - 19 BMW Brilliance always The pandemic provided us Our dealers are critical busi- China is the second home
puts people first, so our with an immediate need to ness partners, and ensuring for BMW, and we fully
RESPONSE immediate response when intensify collaboration with their continued success is supported China's pan-
the pandemic struck was to our key suppliers in order vital to our business. We demic response. BMW
protect our workforce and to ensure their continued worked with our dealers to was one of the earliest
their families. We quickly es- productivity and to sustain help stabilise their business global brands to announce
Across the globe, 2020 was we believe the ways these tablished a cross-functional, our operations. In order to in the early days of the pan- donations and assistance
dominated by the coro- responses align with our international Crisis Man- ensure the resilience of our demic, and to maintain their for addressing the crisis,
navirus pandemic and its long-term perspective—es- agement Team that con- supply chain, we promptly ongoing recovery. A suite of and BMW China and BMW
impact on businesses. At pecially how we accelerated vened twice daily to share launched an emergency new business policies were Brilliance contributed three
BMW Brilliance, we faced our digitalisation transfor- the latest updates, manage risk management plan to designed and implement- rounds of donations tar-
uncertainty and extreme mation—will be key ena- risk, and provide holistic assess our inventory and ed to support their work, geting the most immediate
complexity, especially in the blers of our development as guidance. We kept in close logistics for weaknesses, including new vehicle sales social needs. We directed
early stages of the pan- China continues its recov- communication with our and work to reinforce those and aftersales packages, funds to purchase medical
demic. We are proud of the ery and its modernisation workforce through regular operations. We assessed financing support, and equipment and supplies
prompt and comprehensive journey, while we remain email and JoyChat messag- the production capacity of more. We launched a new for hospitals in Wuhan,
responses to the crisis we committed to maintaining es as well as around-the- more than 200 suppliers, mobile app for dealers with Shenyang, and other cities,
enacted for our employees, effective disease prevention clock HR Shared Services helped them adjust their real-time audio-video tech- and we financed the na-
our business partners, and and control measures to Centre hotline and health production and logistics nology, enabling the devel- tion’s first mental health
the public. As we enter into safeguard our employees’ service hotline. We offered plans, and improve their opment of a zero-contact and counselling hotline for
the post-pandemic era, health and safety. online doctor consultations own sourcing operations auto show that increased frontline medical personnel,
through JoyChat, on-site in order to ensure a stable customer engagement and patients, and volunteers.
health clinics at our plants, parts supply for our busi- boosted product sales. In the post-pandemic era,
and regularly provided ness. As the early stages We also upgraded our JOY we will continue to advance
health and safety tips to all of the crisis passed, we Learning app to facilitate re- the innovative solutions
employees. To protect our offered suppliers strong mote learning and increase we created to continue our
on-site workers, we reor- support for their recovery our dealers’ business com- CSR programmes during
ganised key aspects of the efforts, including disease petitiveness. We continue to the crisis, and use those
workplace, including can- prevention materials and support our dealers during tools to reach more areas
teen and shuttle bus con- technical support. We are their reopening and recov- of Chinese society.
figurations, and introduced committed to continuing ery, providing health protec-
masks, thermometers, these close, long-term tion guidelines, equipment,
workplace disinfection, and partnerships with suppliers and technical support to
mandatory health reports in coping with risks. ensure their safety and the
for all staff. safety of our customers.

Crisis Management Team Emergency Risk New policies to support Rounds of donations
meeting 2x / day Management Plan dealership recovery 3 totalled 35 million RMB

24/7 IT helpdesk, HR and Suppliers assessed for New app to enable zero- Medical supplies
200+
health service hotline production capacity contact autoshow purchase for hospitals

Health reports enabled Disease prevention and JOY Learning app upgrade First mental health
by online tool technical supports to facilitate remote learning counselling hotline for
medical personnel
Online doctor, regular Health protection
health and safety tips guidelines, equipment
and technical support
Social distancing,
workplace disinfections
and provision of health kits Management support IT-enabled support Health & safety support Financial support

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 INTRODUC TION

OU R S U S TA I N A B I L I T Y P ROG R E S S
K E Y P E R F O R M A N C E A C R O S S VA L U E C H A I N

+ 42 50 16.3 300,000+ 108,070

Resource

S U P P LY C H A I N

P RO DUC T I O N

S A L E S & U T I L I S AT I O N

DI S P O S A L & R EC YC L I N G
RESE ARCH & DE VELOPMENT

L OG I S T I C S & T R A N S P O R T
% % Efficiency %

In e-range of the aluminium ingot In 2020, for each vehicle Customer support parts Public charging pillars Parts
The new BMW 5 series for BMW Brilliance produced, we achieved were imported by rail, up have been made accessible were collected for
plug-in hybrid with e-range has shifted to using 7.4% reduction in energy from 8.3% in 2019. to BMW customers – remanufacturing in 2020,
extension incorporates renewable electricity consumption, 17.9% including more than with a total weight of
our innovative battery for upstream aluminium reduction in water 100,000 fast-charging DC over 669 t.
technology and can travel electrolysis and aluminium consumption, and nearly pillars – in over 300 cities
95 km per charge in pure ingot production process 60% reduction in waste across China.
electric mode, a 42% at our supplier. for disposal.
increase over the previous
generation.

-7.5 -51.3 495 4,347

C-NCAP and Climate Change
Euro NCAP Award Initiative % %

In CO2 emissions per In CO2 emissions per BMW NEV dealer outlets Pieces of high-voltage
The all-new BMW 3 We launched the CO2
vehicle produced unit for outbound We expanded our NEV battery
series scored five-star emission transparency
We reduced our CO2 logistics since 2014 dealer outlets from 450 were recycled in 2020 with
plus in C-NCAP rating pilot project and on-site
emissions per vehicle The CO2 emissions per to 495, and BMW i dealer a total weight of 98,261 kg.
and its Driving Assistant energy audit programme
produced by 7.5% from unit for outbound logistics outlets from 91 to 196 in
Professional system as part of the initiative to
2019, to 0.18 t/vehicle in was 124.40 kg/unit by the 2020.
scores Very Good in Euro identify carbon reduction
2020. We also maintained end of 2020, which has
NCAP rating . opportunities across our
100% renewable electricity been reduced by 51.3%
supplier network.
at our production plants. since 2014.

High-Voltage
Battery Centre II 400 - 47.1 % 98 % BMW iX3 Steel
Local content suppliers In Accident Frequency Returnable packaging World premiere and The 1st fully circular system
As the first ___location worldwide
Our local content Rate (AFR) usage rate export to global market was created for steel in
for series production of Gen5
suppliers grew to 400 Our AFR per one million We transported 98% of our Produced at BMW 2020, by collecting and
high-voltage battery, the
and purchasing volume hours worked was down local parts in returnable Brilliance Shenyang returning scrap steel back into
HVB Centre II underlines our
in China increased by to 0.09 in 2020 from the package, contributing to production base, the first- manufacturing processes. An
commitment to high-quality
10.5% to 54.89 billion 2019 level of 0.17. material saving and carbon ever fully electric iX3 offers accumulaled recycling volume
development, and further
RMB in 2020. emission reduction. customers long e-range, of 45,000 t steel into the loop
consolidates BMW’s position
high energy efficiency, and was achieved in 2020.
as an E-mobility pioneer.
intelligent mobility.

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INTRODUC TION

OU R S U S TA I N A B I L I T Y P ROG R E S S
K E Y P E R F O R M A N C E I N D I C AT O R S

2016 2017 2018 2019 2020 % Change 2016 2017 2018 2019 2020 % Change

BUSINESS ACTIVITIES ACCOUNTABLE, CIRCULAR AND RESILIENT VALUE CHAIN

Revenues from operations (in RMB million) 98,436 113,197 141,918 172,692 189,006 9.4 Total hazardous waste (in t) 5,747 8,164 11,164 10,199 9,442 -7.4

Tax (in RMB billion) 21 25 31 35 38 8.6 Accident frequency rate

0.54 0.43 0.28 0.17 0.09 -47.1
(per one million hours worked)
Automobiles produced (in unit) 305,845 396,888 490,151 534,990 600,554 12.3

Automobiles wholesaled (in unit) 310,041 386,556 465,192 544,549 605,050 11.1 RESPONSIBLE CORPORATE CITIZENSHIP
Authorised dealer outlets nationwide (number) 558 598 625 647 666 2.9 Total workforce at year-end (number) 16,286 16,686 18,925 19,824 20,739 4.6

Female employees in total workforce (in %) 12.9 12.8 12.0 12.1 11.9 -1.7
CLIMATE CHANGE ACTIONS
Employees in management positions (in %) 6.7 6.9 6.6 6.9 7.0 1.3
Average fleet CO2 emissions (in g/km) 159.20 146.90 139.00 137.80 142.09 3.1
Female employees in management positions (in %) 28.4 30.2 30.0 30.6 30.2 -1.3
Corporate average fuel consumption (in L/100 km) 6.69 6.17 5.84 5.79 5.97 3.1
Chinese employees in management positions (in %) 82.0 85.0 86.0 85.5 86.2 0.8
New Energy Vehicles wholesaled (in unit) 480 1,983 21,438 32,246 27,664 -14.2
Total new employee hires (in %) 6 2.2 8.0 17.3 8.9 8.6 -3.4
Total Greenhouse gas emissions (in t) 9,901,541 11,884,985 14,190,033 15,417,955 17,741,047 15.1
Attrition rate (in %) 3.3 4.5 4.8 3.6 3.7 2.3
Scope 1 Greenhouse gas emissions (in t) 1 33,570 37,448 35,733 42,141 43,614 3.5
Average days of further training per employee
Scope 2 Greenhouse gas emissions (in t) 2 309,154 240,747 281,753 68,602 71,275 3.9 1.70 2.10 1.79 1.23 0.75 -39.1
(in day/person)

Scope 3 Greenhouse gas emissions (in t) 3 9,558,817 11,606,790 13,872,546 15,307,212 17,626,158 15.1 Beneficiaries of BMW CSR activities (number) 7 36,200 21,000 80,292 2,628,710 11,568,364 340.1

CO2 emissions per vehicle produced (in t/vehicle) 1.13 0.70 0.63 0.20 0.18 -7.5 Expenditure on social commitment activities
-- 17,064,616 15,575,085 16,513,831 36,619,722 121.8
(in RMB)
Energy consumption per vehicle produced
2.05 1.83 1.65 1.63 1.51 -7.4
(in MWh/vehicle) Local content suppliers in China (number) 345 359 378 394 400 1.5

Total energy consumption (in MWh) 623,419 734,268 841,518 974,642 1,026,890 5.4 Purchasing volume in China (in RMB billion) 8
23.90 26.70 43.10 49.68 54.89 10.5
4
Share of renewable electricity (in %) -- 25 43 100 100 --
Note:

1. Direct CO2 emissions generated by fossil fuel consumption at BMW Brilliance plants, excluding the fossil fuel consumption of construction and on-site suppliers. The
ACCOUNTABLE, CIRCULAR AND RESILIENT VALUE CHAIN coefficients used for calculation are from Emission Factors for Electricity, District Heating and Fuels issued by Application of German Association of the Automotive
Industry (VDA). Other climate-impacting gases than CO2 are not included.
Volatile organic compounds (VOC) per vehicle produced 2. Indirect CO2 emissions generated by the consumption of third- party electricity and heating purchased at the BMW Brilliance plants, excluding the third- party electricity
0.40 0.54 0.56 0.52 0.50 -3.8
(in kg/vehicle) and heating consumption of construction and on-site suppliers. For calculation of the Scope 2 CO2 emissions, “market-based” methodology is used in accordance with
GHG Protocol Scope 2 Guidance issued by the World Resources Institute. Other climate-impacting gases than CO2 are not included.
Water consumption per vehicle produced
2.58 2.68 2.47 2.40 1.97 -17.9 3. Indirect CO2 emissions generated in the upstream supply chain, the logistics, the utilisation phase and the disposal of automobiles produced by BMW Brilliance for
(in m3/vehicle)
sales in mainland China market of the year, and those generated from employee commuting and business trips of BMW Brilliance within the year. Emission factors
Process wastewater per vehicle produced of the supply chain and the disposal are based on the carbon footprints of representative vehicles from the product lines, calculated by Thinkstep’s LCA tool GaBi.
0.46 0.39 0.42 0.44 0.44 -- Emissions factors of logistics are based on emission factors in DIN EN 16258. Emissions from the utilisation phase are calculated based on the average fleet emissions
(in m3/vehicle)
of automobiles delivered of BMW Brilliance and an average mileage of 150,000 km per vehicle.
Waste for disposal per vehicle produced 4. Including the generation of solar power electricity, the purchase of wind power electricity and International Renewable Energy Certificates (I-RECs).
6.42 7.43 8.05 7.47 2.99 -60.0
(in kg/vehicle)
5. Total non-hazardous waste consists of non-hazardous waste for recycling and non-hazardous waste for disposal. We improved the data calculation process in 2020,
Total water consumption (in m 3) -- 1,173,531 1,214,892 1,332,876 1,188,228 -10.9 and there was increase in total non-hazardous waste for recycling over the previous year.

6. Figures related to new employees from 2017 onwards are not directly comparable to figures from previous years due to changes in calculation method. New employees
Total waste (in t) 46,033 71,976 85,237 87,013 181,791 108.9 figures before 2017 are those who joined BMW Brilliance during the year and still worked with BMW Brilliance at year-end. Figures from 2017 to 2020 are those who
joined BMW Brilliance during the year, regardless of whether they still worked with BMW Brilliance at year-end or not.
Total non-hazardous waste (in t) 5 40,286 63,812 74,073 76,814 172,349 124.4
7. The increase of beneficiaries of BMW CSR activities is mainly due to more online activities in which the number of beneficiaries is counted by visiting times.

8. Figure is not directly comparable to previous years, as from 2020 we included the purchasing volume of special tools for suppliers' production of BMW Brilliance parts.

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01 F UNDA ME N TA L S
1.1 / SUSTAINABILIT Y MANAGEMENT
1. 2 / STAK EHOLDER ENGAGEMENT
1.3 / COMPLIANCE MANAGEMENT

F R O M G O O D T O G R E A T

A truly responsible and sustainable True sustainability requires a company

business must have a higher purpose to minimise environmental impacts,
than simply achieving profit—it must and we are making our contribution by
work to improve the world. The BMW focusing on developing and improving
Group has made sustainability central technologies and services that can ef-
to the company’s strategic direction, fectively bring about a viable reduction
and BMW Brilliance aligns our goals and in the global carbon emissions caused
values with them. We aspire to be not by individual mobility. With this strate-
only the most successful, but also the gy, we can create a clear competitive
most sustainable provider of premium advantage by offering our customers
individual mobility in China, and always trendsetting mobility solutions that are
focus on the needs of our stakeholders. also made with sustainable principles
in mind. Sustainable operations also re-
quire responsible business conduct, and
we are committed to ethical business
practices, strong risk management, and
a culture of compliance and exceeding
the expectations of our stakeholders.

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— OUR THREE SUSTAINABILITY STRATEGIC DIRECTIONS —

1 .1

SU S TA I N A B I L I T Y As a pioneer that sets standards for the individual

mobility of tomorrow, we seek to combine joy and
1 2 3

responsibility without compromise and, together

M A N AGE M E N T with our partners, lead the industry in terms of en-
CLIMATE CHANGE
ACTIONS
ACCOUNTABLE, CIRCULAR &
RESILIENT VALUE CHAIN
RESPONSIBLE
CORPORATE CITIZENSHIP
vironmental, social, and integrity standards.

Our sustainability framework is built on eight focus For Climate Change Actions, we are Within our Accountable, Circular, and Our focus on Responsible Corporate
areas spanning the three pillars of our value-crea- committed to creating a roadmap to Resilient Value Chain direction, BMW Citizenship will guide us to empower
tion model, as well as four enablers that accelerate carbon neutrality within our own oper- Brilliance is committed to ensuring the and develop our employees, dealers,
Our aspiration is to be the leading sustainable our sustainability journey: new technologies, sus- ations, enabling 100% renewable en- highest-quality products and premi- and customers. Within our operations,
provider of first-class individual mobility and tainability mindset, sustainability governance, and ergy use by our key suppliers, contin- um customer-centric services, while we will create an environment of di-
compliance & beyond. uously reducing the carbon footprint working with our value chain partners versity and inclusion, and continue to
to sustain responsibility across the entire val-
of our logistics operations through to advance circular use of materials train and encourage our employees
ue chain of China’s automotive industry.
In 2020, we refined our three sustainability strate- electrification and modal shifts, and and resource efficiency in production and dealers to reach their full poten-
gic directions, in response to internal and external accelerating the adoption of new en- activities, enhance workplace EHS tial. In our communities and across
changes, the BMW Group Sustainability goals, a ergy vehicles across Chinese society management, and foster ethical busi- China, we will work to create shared
world changed by the COVID-19 pandemic, and by boosting NEV sales and facilitating ness practices that help safeguard the values through charitable donations,
increased stakeholder expectations. convenient long-distance zero-emis- rights and interests of our customers our flagship CSR programmes, em-
sion travel. and the larger society. ployee volunteerism, and local com-
munity engagement.

BMW BRILLIANCE
SUSTAINABILIT Y
MILESTONES Refined three
Joined UN Global Defined BMW Brilliance sustainability strategic
Compact as the 1st corporate sustainability, directions.
automotive joint venture aspiration, principles and Unveiled the BMW iX3 Create new sustainability
in China. strategic frameworks. BEV model SOP. value system.
Published our 1st Among the first companies
sustainability report. 100% Set sustainability targets
to earn the "National Green

2020
Renewable electricity used and holistically integrate
Plant" title. into corporate governance.

2014
for production.

Ranked #1 in the first

2017
Automotive Enterprise
Green Development Index. TOWARDS THE

FUTURE
2019

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STR ATEGIC DIRECTIONS AND THE ALIGNMENT WITH THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UN SDGs)
Strategic Directions Goals Actions & Initiatives Page Index UN SDGs

CLIMATE CHANGE ACTIONS Supply Chain • Supply chain climate change initiative. 49 - 50
Achieve key suppliers CO2 disclosure transparency and 100% renewable electricity. • Supply chain green power transition.
Take actions to reduce absolute and
intensity of CO2 emissions across value
Production • Renewable energy utilisation for production. 45 - 47
chain.
Reduce the emissions from producing our products in line with the BMW Group • STEAM energy-saving initiative.
sustainability goals and China’s carbon-neutral commitment.

Logistics • Multi-modal logistics optimisation. 51 - 53

Increase the efficiency of our logistics flows through multi-modal transport and • Pilot use of E-trucks and LNG truck roll-out feasibility study in DDA Cities.
innovative new low-carbon shipping technologies. • Increased use of rail transport for imported customer support parts.

Utilisation • NEV product portfolio & competency optimisation. 39 - 42

Accelerate the electrification of China’s automotive industry with NEVs and • Strategic cooperation with State Grid EV Service.
nationwide charging capabilities.

ACCOUNTABLE, CIRCULAR & Product and Service Quality • Application of industry 4.0+5G+AI. 59 - 64

RESILIENT VALUE CHAIN Adopt the latest technologies to create the highest-quality products and offer • Intelligent safety system.
premium service quality. • New BMW Brilliance Material Database system.
Optimise our operations for top quality,
• Dealership “Network Transformation” initiative.
circularity, minimal EHS impact, and
• Customer board and BMW Service Experience Ambassador Programme.
responsible, resilient value chain.

Circularity • Advance closed-loop project with steel and aluminium. 65 - 67

Implement innovative approaches and technologies to reuse, recycle, and • Increase use of secondary materials for Gen5 HVB production.
repurpose raw materials and end-of-life products. • P ilot HVB reuse for pallet truck.
• ReLife Point and reverse logistics system enhancement.
• B in-sharing and rental programme.

Environment, Health & Safety • Continuous measures to enhance VOC reduction, waste management & water efficiency. 7 1 - 72
Minimise the impacts of our operations and our suppliers’ operations on the • Supplier EHS audits. 75 - 7 7
environment, employees, and communities. • Dealer EHS Manual & self-check list update.

Business Accountability • Supply Chain Social Responsibility Code of Conduct. 79 - 81

Advance the highest standards of responsibility in sourcing raw materials, data • E thical raw material procurement.
protection, and our partners’ business practices. • Dealer due diligence.

RESPONSIBLE CORPORATE Diversity and Inclusion • Diversity concept for the BMW Group workforce. 87

CITIZENSHIP Create a work culture that recognises and values the diversity of all associates. • BMW Global Diversity Week.

Lead our industry by modelling an inclu-

Human Capital Development • The Academy of BMW Group China online learning platform for employees. 95 - 100
sive, diverse culture that supports our
Train our workforce for current and future skills, while enabling them to achieve • Employee leadership training programmes.
workforce and our communities. their personal and professional goals, while optimising our pipeline for new talent. • Future Talent Programmes.
• The Training Academy with BEST Programme, BMW Dealer Elite Talent Development &
Retention Programme, New Staff Enlightening Journey for dealers.

Corporate Social Responsibility • BMW CSR flagship programmes and BMW Warm Heart Fund. 104 - 117
Create shared value for members of society to help address social issues and • Donations to fight against COVID-19 pandemic.
improve social welfare. • B MW Corporate Volunteer Association.
• B MW Warm Heart Customer Clubs.

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SUSTAINABILIT Y GOVERNANCE

The BMW Brilliance Board of Management ensures we At the day-to-day level, our internal business functions lead terial risks reported by other department functions are We manage our supply chain and key suppliers to mitigate
integrate sustainability into key business decisions regard- progress on sustainability-related decisions made by the reviewed and classified according to the likelihood and risks from raw material shortages and supply chain dis-
ing the overall direction of the company. Sustainability is a Board of Management. This process is steered and mon- magnitude of impact. We monitor all risks and opportuni- ruptions, as well as reputational and regulatory risks from
central feature of the annual target-setting process through itored by Management Circles across business functions. ties and identify methods to address each material risk, sourcing from conflict zones and regions at risk of forced la-
which business functions must set and deliver on concrete Through regular reviews, Management Circles ensure that and incorporate those methods—including for climate-re- bour and child labour. We achieve business benefits through
targets, which allows us to implement the guidance of the decisions from the Board of Management are translated lated risks—into our company-wide risk management developing resilient and secondary sources for key raw
Board of Management in a systematic way, with accounta- into actionable items with measurable targets and delivered process. materials and building stronger relationships with our key
bility for the business functions. The Board of Management to the operational level for implementation. suppliers that enable us to cascade corporate responsibility
is also responsible for ensuring compliance with all provi- • Metrics and Targets: The BMW Brilliance sustainability further into our supply chain. Increasing the circularity of our
sions of the law and internal regulations, as well as for ade- report offers an overview of the key sustainability indi- supply chain helps us avoid risks of raw material shortages
BMW BRILLIANCE
quate risk management and control. cators that we use to measure, monitor, and manage while providing the opportunities of reducing business costs
BOARD OF DIRECTORS
climate change-related risks. Because CO2 emissions are and a lower CO2 footprint from recycling and upcycling ma-
In 2020, the Board of Management approved the imple- of key significance for assessing climate-related issues, terials.
BMW BRILLIANCE
mentation of the BMW Brilliance Corporate Sustainability BOARD OF MANAGEMENT we consider Scope 1, Scope 2, and Scope 3 emissions.
Execution Committee. This 9-member management-level We have set climate change actions as a strategic sus- Each of these categories of risk management meets part
group meets every month and is tasked with ensuring trans- BMW BRILLIANCE tainability direction, and our Corporate Sustainability Ex- of our overall value of accountability: By operating as a
CORPORATE SUSTAINABILITY
parency and common understanding on overall sustainabil- ecution Committee is working across business functions responsible, ethical company, we can navigate the risks
EXECUTION COMMITTEE
ity progress, synergising resources across departments to to deliver climate-related targets across the whole value from failing to comply with laws and regulations, regulatory
accelerate implementation, and sharing external insights, SUSTAINABILITY chain, including supply chain, production, logistics, utili- penalties for unfair or corrupt business practices, and repu-
trends, and best practices to drive sustainability innovation. DELEGATES NETWORK sation, and disposal. tational and legal risks from failing to protect customer and
corporate data. The opportunities from responsible corpo-
Sustainability Governance at BMW Brilliance.
ACCOUNTABLE, CIRCULAR AND RESILIENT rate citizenship are the ones that will sustain our business
VALUE CHAIN for the long-term: trust from our employees, customers, and
Continually improving our product quality and safety is cen- business partners and a strong working relationship with
tral to our ongoing business success. Among the risks we regulatory authorities.
seek to address and avoid include potential hazards to our
SUSTAINABILIT Y RISK MANAGEMENT
employees, customers, dealers, and suppliers—as well as RESPONSIBLE CORPORATE CITIZENSHIP
reputational damage from quality shortfalls. By achieving Expectations for corporate behaviour are rapidly changing, and
CLIMATE CHANGE ACTIONS our high standards for quality, BMW Brilliance will attract people expect a company to work for the greater good more
Climate change is one of the most urgent crises facing bility strategies and actions at an early stage will gain a and retain more customers and build brand loyalty that can than solely for profit. Our employees—current and future—
government, civil society, and stakeholders of all types. competitive edge and greater market share. At the same sustain our business. These same risks and opportunities expect BMW Brilliance to support them in their personal and
We identify climate change-related risks and opportunities time, we face a number of potential risks, including transi- exist in our efforts to address and increase customer sup- professional goals, and if we fail to do so, we run the risk of los-
based on four core areas: governance, strategic direction, tion risks in the form of tighter emissions regulations, in- port and satisfaction: By meeting customer desires and ing our competitive edge in recruiting the top talent. By building
risk management, and metrics and targets. creased technology costs, changing consumer behaviour, needs, we can continue to grow our market presence while a company culture that supports and values every employee,
and shifts in consumer preference. Some of the additional also achieving global climate commitments. from a foundation of diversity, inclusion, and equality, we en-
• Governance: The BMW Brilliance Board of Management risks that we are not alone in facing include extreme sure the dedication and loyalty of our employees and our cus-
is the highest entit y with direct responsibilit y for cli- weather events and longer-term risks due to changes in Our environmental, health, and safety (EHS) programme tomers, so we can continue to thrive and grow together.
mate-related matters and ensures we integrate our stra- water availability. We are working to project the impacts aims to protect our workforce—our most valuable resource.
tegic directions on climate into all key business decisions. of these and other climate-related risks and adjust our The risks we work to eliminate include hazards to individu-
strategic direction, business, and financial planning to als and the company from unsafe work practices and work
• Strategic Direction: Our climate strategic direction is meet those risks head-on. environments, and by addressing these risks in a compre-
guided by the fact that, in the face of increasing regu- hensive manner, we improve our performance, increase
lations— as well as increased demand for low-carbon employee satisfaction and retention, and attract top-quality
• Risk Management: Our Controlling & Risk Management
mobility solutions—companies that embrace sustaina- talent through our commitment to safety.
department function manages company-wide risks. Ma-

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1.2

S TA K E H OL DE R DEFINING MATERIAL ISSUES

E N G AGE M E N T Since our last materiality assessment in 2018, the world has undergone significant changes – not only
with COVID-19, but also the US-China trade war, Chinese government regulation and climate commit-
ment changes, and more. As a result, our stakeholders’ expectations of our performance and strategy
have changed, so in 2020 we conducted a new materiality assessment to identify and prioritise the
Our
stakeholder sustainability issues that matter most to our business and key stakeholders. The following steps pro-
mapping. vide an overview of the process of our materiality assessment:
Customers

Shareholders Employees Our materiality assessment process and matrix.

Climate Change Actions

Accountable, Circular & Resilient Value Chain
Responsible Corporate Citizenship

← ←
Mass Media Civil Society Defining Issues Prioritising Issues Setting Directions
We began by listing 26 potential issues We conducted an online survey with We then grouped the prioritised
grouped into five categories: 296 participants from a representative issues into three key directions as
cross-section of our eight stakehold- illustrated. Our Board of Management
• Product Responsibility er groups, followed by 12 in-depth reviewed the results of our materiality
• Corporate Governance interviews with internal and external analysis to validate the importance of
• Environmental Protection stakeholders. The result is a mate- each topic, and upon validation, our
• Work Environment and Culture riality matrix revealing the 14 issues company was able to begin crafting a
Local Business • Society and Human Rights considered most relevant to BMW Bril- strategy to achieve successes within
Residents Partners liance as well as our stakeholders. each of the key directions.

Government
High relevance

1 Product quality and safety 14 Electrification and

sustainable product portfolio
Product Responsibility 1
Occupational health 15 Economic performance
2
Corporate Governance and safety

Environmental Protection Customer support and 16 Human rights

As a company that delivers parts and products bility priority issues and shape strategic direc- Work Environment and Culture
4 2 3
satisfaction
3
around the world, our operations impact the tions for the crucially important years to come. Information security and

Relevance for Stakeholders

Society and Human Rights 4 17 Business transparency
5 privacy protection
environment and affect a variety of stakehold- An important part of this process required us to 18 Public policy
6 5 Business ethics
ers. And as a consumer-centric business, the identify our most-important and most-impacted 10
8
7

9 Compliance, anti-corruption, Risk and opportunities

6 19
viewpoints, decisions, and actions of our stake- stakeholders. Through industry research, liter- 17
11
13
and fair competition on climate change
12
holders have a decisive impact on the success ature reviews, and a benchmarking exercise, 15 7
GHG emissions and
air pollution
20 Collaboration and
partnership

of our enterprise. BMW Brilliance has always we considered the impacts of all the many envi- 19 18
16
8 Waste and effluents 21 Water consumption
20
sought to ensure we live up to our stakehold- ronmental, economic, and regulatory changes 21
14
Energy consumption and Automation and
22 9 22
ers’ expectations, and when the world changed that had already taken place. The stakeholder 23 renewable energy digitalisation

Supply chain sustainability

dramat icall y in 2020 — w it h COV ID -19, t he t ypes we identified in 2020 are: Customers, 25
10
management
23 Sustainable infrastructure

global economic downturn, and China’s new Employees, Business Partners, Shareholders, 26
11
Raw materials and 24 Land use and
parts lifecycle
biodiversity
carbon commitments, among others—so did Local Residents, Government, Civil Societ y,
24
Diversity, inclusion
12 25 Mobility service
and equality
our approach. We conducted a new materiality and Mass Media.
Employee development Corporate citizenship and
assessment to determine up-to-date sustaina- 13
and well-being
26
community engagement
Moderate relevance High relevance
Relevance for BMW Brilliance

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Our stakeholder
engagement
approaches.

STAKEHOLDERS COMMUNICATION CHANNEL FOCUS TOPICS

Customers Surveys, social media, trade fairs, auto shows, mass media. • Product quality and safety
• Customer support and satisfaction
• Information security and privacy
protection

Employees BMW Brilliance Trade Union, employee survey, dialogues with • Occupational health and safety
managers, internal communications. • Employee development and well-being
• Product quality and safety
• Diversity, inclusion, and equality
We participated in the stakeholder dialogue in 2020 on sustainable cities with media, scholars, and designers.

Government Regular communication with local authorities, events with the • Waste and effluents
CPC and BMW Brilliance, regular discussions on key topics such • Raw material/parts lifecycle
as emission standards, the advancement of E-mobility and • Occupational health and safety COMMUNICATING WITH OUR port the growth of China’s NEV indus- had on the auto industry supply chain,
supporting infrastructure, and promotion of innovation. • Economic performance STAKEHOLDERS try and market. As the pandemic came and how industry leaders can continue
We incorporate sustainability issues under control, Dr. Wieland travelled to the recovery of the automotive sup-
Civil Society Roundtables, lectures, discussions with experts, scholars and • Product quality and safety into our interactions with different to meet with leaders of the Shenyang ply chain in the post COVID-19 era. We
students; specialised and localised programmes, traineeships, • Information security and privacy stakeholder groups in a variet y of CPC and the city of Shenyang to dis- also hosted an educational webinar
and vocational education opportunities. protection
• Occupational health and safety ways, with topics and formats that are cuss the region’s economic recovery with more than 600 BMW authorised
tailored to each group. We strive to ad- and the role BMW Brilliance can play dealers to discuss the development
Business Regular interaction with suppliers and dealers, business confer- • Product quality and safety dress critical issues and concerns in a in helping continue the recovery. We of a finance ecosystem built on trust,
Partners ences; Industry initiatives, joint events, training courses, suppli- • Customer support and satisfaction timely and transparent manner, and to were invited to the second meeting cooperation, coordination, and a win-
er risk assessments, supplier forum and supplier media visit. • Information security and privacy analyse current and coming expecta- of the China-Germany (Shenyang) win focus bet ween BMW Brilliance
protection
• Collaborations and partnership tions in different areas of sustainabili- High-end Equipment Manufacturing and our dealer partners, contributing
ty management. Engaging in dialogue Innovation Committee focussed on to their success and our company’s
Local Residents One-on-one meetings, plant visits, neighbourhood dialogue, • Product quality and safety with stakeholders also means that we the theme of Opportunities and Chal- continued development.
press events, investment into local communities as part of CSR • Business ethics can share our perspective on possible lenges for Sino-German Cooperation
commitment. • Customer support and satisfaction responses and actions related to any in Post COVID-19 era, and we also We continuously communicate with
• Informational security and privacy
protection challenges, whether at the local, na- took part in the first-ever communica- our employees around the country, so
tional, or global levels. tion workshop that brought together that we can hear about their progress
Mass Media Media trips, press releases, information events on new prod- • Product quality and safety industry and government to discuss and learn about their concerns. During
ucts, test drives, and trade fairs. • Customer support and satisfaction We work closely with the government the progress and impacts of the new the pandemic especially, we convened
• Energy consumption and renewable on areas of mutual interest and coop- Cybersecurity Law. regular sessions to share the progress
energy eration, such as local economic devel- BMW Brilliance has made in building
opment and our green transformation. With our business partners, we regu- a sustainable recovery, emphasising
Shareholders Communication between our Board of Management and Board • Automation and digitalisation
of Directors and shareholder representatives (BMW Group and In 2020, our President and CEO, Dr. larly engage in joint conversations to the importance of diversity among our
• Occupational health and safety
Brilliance Group). • Product quality and safety Johann Wieland, participated in the explore the opportunities and chal- workforce to our success as a compa-
• Business transparency EV100 Forum before the onset of the lenges we face together. Amidst the ny, as well as the latest developments
• Economic performance pandemic, and met with members pandemic in 2020, our work with sup- in our company progress, such as our
• Compliance, anti-corruption and fair
of the central government to discuss plier partners focussed on the severe ongoing Plant Tiexi and Plant Dadong
competition
ways that government policy can sup- impact the coronavirus pandemic has Extension projects.

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1.3

COM P L I A N C E M A N AGE M E N T
ORGANISATION
Lawful and ethical conduct
forms the basis of what we
As an integral part of the effective pliance, Safety and Security, Quality
do as a company, defines our
compliance management s y stem, Governance, and IT / Data Governance.
company’s image in the eyes
BM W Brilliance has established a
of the general public, and helps robust organisational framework to Our compliance function and business
create trust in our brands, ensure a correct compliance account- departments collaborate closely to drive
products, and services. ability structure is in place. The Board lawful and ethical behaviour and em-
of Directors (BoD) of BMW Brilliance bedded values throughout the organisa-
takes the ultimate accountability for tion. The dedicated compliance function
administering a compliance manage- of Corporate Governance & Compliance
CULTURE ment system at the shareholder level. department, as well as the broad com-
The Audit and Compliance Committee pliance enablement departments such

魏博士看 合规 Leadership exerts a fundamental in-

(AC) under BoD is responsible for set-
ting compliance objectives, allocating
as Legal Affairs, Corporate Audit, Con-
trolling and Risk Management, Taxes,

T ON E F ROM T H E T OP fluence on our company culture. BMW

Brilliance top management has played
resources, and monitoring practices to
ensure compliance with regulatory and
Customs and Export Control, provide
compliance assurance through super-
an active role in cultivating the compa- ethical requirements. vising business departments practices,
ny's compliance culture and inspiring and build partnership with them via
Tone from the Top speech delivered by Dr. Wieland to all employees.
it among all employees. In 2020, the Authorised by BoD, the Board of Man- providing enablement and consultancy
clear Tone from the Top was constantly agement of BMW Brilliance and BMW to protect the business from com-
communicated and reinforced, reaching Brilliance Corporate Governance & pliance risks. We have established a
BMW Brilliance is fully committed to In response to the remote working and all levels through Executive Dialogues Compliance Committee (BCC) as its comprehensive Compliance Operation
lawful and responsible business con-
duct. Through years of construction of
the cessation of travel during COV-
ID-19, we adopted technology tools ,
190,000+ and communication letters, Compliance
Events, as well as the decisive discipli-
sub-committee, take the primary over-
sight role. In 2020, BCC enlarged its
Network, comprising of Compliance Re-
sponsibles and Compliance Interfaces
Views in "WeCompliance"
compliance infrastructure and foster- and accelerated the process automa- in 2020. nary actions around noncompliance. scope from traditional compliance topics in all the business departments, to build
ing of compliance culture at the com- tion to transform the core compliance to the broader areas of Technical Com- the compliance programmes into the
pany, BMW Brilliance has embedded processes from offline to online. We At BMW Brilliance, the compliance business operations.
compliance value in all the main as- launched “WeCompliance” account at responsibility could not be delegated,
pects of the company’s operation, and mobile application to communicate the 38,000+ and specific measurable compliance AUDIT AND COMPLIANCE COMMITTEE /
in response to the increasingly com- Tone from the Top, compliance news 2020 web-based compliance goals have been assigned to the man- BOARD OF DIRECTORS
training participants.
plex and constantly evolving regulato- clipping, case study, regulatory and agement as mandatory targets and
ry environment, the company has kept enforcement updates to employees in have been integrated throughout the
BOARD OF MANAGEMENT
reviewing and adapting the manage- a timely manner. We also accelerated regular performance review process.
ment tools, measures and processes the shift from classroom trainings to Meanwhile, we ensure that compliance
to ensure their effectiveness. Despite web-based courses to enable em- is not just the managers’ task, but the CORPORATE GOVERNANCE &
all the challenges and uncertainties ployees' micro-learning anytime, any- responsibility of every employee. Each COMPLIANCE COMMITTEE
the company has faced in 2020, BMW where. A record of 20 courseware was employee is obliged to acknowledge
Brilliance has managed to accomplish developed in 2020, covering a variety and exercise the principle of respon- CORPORATE GOVERNANCE &
all the compliance management tar- range of compliance topics in general sibility, integrity and ethics in the daily COMPLIANCE DEPARTMENT

gets and has provided a great level of compliance, anti-monopoly, conflict of work, and when in doubt or having com-
continuity and certainty to employees, interests, safety and security, cyber- pliance concerns, each employee can COMPLIANCE OPERATIONS NETWORK
business partners and stakeholders in security, data privacy, export control, at anytime access the SpeakUp Line to
terms of the company’s commitment information protection, etc. report their concerns. Compliance Governance at BMW Brilliance.
in compliance.

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MEASURES Technology changes life, as well as the compliance stakeholders to speak up when they are aware of or
management in BMW Brilliance. More systematic suspect potential misconducts. We prohibit retalia-
solutions have been developed, localised or up- tion, employees will not suffer adverse consequenc-
LEGAL COMPLIANCE CODE, POLICIES, TRAININGS AND COMMUNICATION graded, to continuously improve the effectiveness in es or retaliation for refusing to do things that violate
11,000 + The BMW Brilliance Legal Compliance Code which sets basic values, rules and stand- preventive and detective control on compliance man- laws and regulations, or for raising a concern about
Online Compliance Quiz ards that all employees are required to adhere to, forms the foundation of compliance agement and daily business management. potential misconduct in good faith. When receiving a
participants in 2020.
management. To facilitate the company’s compliance with applicable laws, regulations concern or issue, a dedicated team will evaluate and
and standards, we have formulated the company specific policies and instructions to WHISTLE-BLOWER MECHANISM AND follow up it in a serious, fair, and prompt manner. We
guide employees' daily work. Diversified initiatives, including trainings, campaigns, REMEDIATION practice “Zero Tolerance” for any non-compliance.
100% and communication programmes, are provided to employees to advocate employees’ We offer a number of channels through which em- Where possible, compliance violations are investi-
2020 compliance on-boarding awareness. ployees, suppliers, and business partners can report gated and substantiated, we report them, take ap-
training participation rate. possible compliance violations or raise compliance propriate remedial actions, and document the out-
To highlight the company’s core value of compliance from the first day of employment at concerns, and give reporters the right to remain comes. Moreover, we resolve the root causes and
BMW Brilliance, the Legal Compliance Code has been integrated into the HR recruiting anonymous. We continuously promote the reporting enhance our controls and processes to minimise the
process. All new associates are required to read through the Legal Compliance Code channels, and constantly encourage employees and risk of recurrence.
carefully, acknowledge the core value that compliance is the personal responsibility of
each employee, and make a commitment to adhere to it. After on-boarding, ongoing com-
pliance trainings are provided to help them deepen their understanding of the company’s 2021 OUTLOOK Adapting to the rapidly growing business, BMW
compliance processes, policies and regulations and practice them in their daily works. In parallel with all the internal compliance ef- Brilliance keeps seeking innovative and dynamic
forts, BMW Brilliance has devoted to cultivating application of IT tools in compliance management.
MANAGING COMPLIANCE RISKS AND SOCIAL CREDIT STATUS compliance culture across the entire value chain. Take the E-chop System for instance, with the re-
It is essential to closely monitor the external and internal environment in a compre- With the world’s recovery from the pandemic, lentless joint endeavour, the E-chop System has
hensive and timely manner. A multi-dimensional monitoring mechanism has been BMW Brilliance is planning more proactive and been put into pilot use in 2020. With the progres-
established at BMW Brilliance, comprised of daily monitoring on the updates to leg- practical steps to foster business partners’ sive application of more functions on the System,
BMW Brilliance Honour List
at Social Credit System. islations and enforcement, monthly tracking of public social credit records and yearly engagement in compliance management. In it will not only benefit BMW Brilliance in multiple
Compliance Risk Assessment project. This combination of bottom-up monitoring and addition to Supplier On-board Evaluation and managerial aspects, but will significantly prompt

TAX A Level a central steering mechanism has enabled BMW Brilliance to obtain a full picture of the the contractual provisions under purchasing and the effective interaction with the massive amount of
State Taxation Administration company’s compliance risks, understand respective risk sources and consequences dealership agreements with respect to the par- business partners.
of identified risks, implement targeted preventive and corrective actions, and focus our ties’ compliance obligations, more specific advo-
Advanced AEO attention and resources on higher-priority risks. cacies and initiatives will be made by means of With the world entering into an era of Big Data,
General Administration of
Customs programmes such as Social Responsibility Code BMW Brilliance embarks on better utilising the com-
In response to the Chinese Government’s administrative transition toward a cred- of Conduct, spot check and enhancing external pany’s digital assets in compliance management.
Honest Entity it-based regulatory mechanism, we have optimised our internal Social Credit System compliance communication with suppliers and On the unfolding blueprint of E-compliance, more
Ministry of Ecology and
management mechanism by implementing proactive credit supervision, aiming to de- dealers. systematic tools will be deployed in integrating re-
Environment
tect and prevent at the earliest stages any bad entries that may affect BMW Brilliance’s sources, detecting and preventing non-compliance,
A Level social credit status. By the end of 2020, BMW Brilliance received several top-ranking Aiming to transform into a high-tech company, identifying and analysing potential risks, raising
State Administration of honours at different business areas. BMW Brilliance has reached out into multiple compliance awareness and elevating the compa-
Foreign Exchange
new business areas. It is a clear goal to engrave ny’s compliance infrastructure to the next level.
MONITORING AND CONTINUOUS IMPROVEMENT the compliance value into all the new subsid-
A Level
China Quality Certification On a daily basis, we monitor, analyse, and follow laws, regulations, industrial policies, iaries and business units, and enable them to Leveraging on our refined sustainability strategic
Centre enforcement trends and best practices. The monitoring departments make in-depth implement the same level of compliance stand- directions, we will develop our sustainability targets
analysis as to the significance and impact of any changes and propose action plans if ard. Measures have been taken in setting up a and integrate into corporate governance, advance
HR
A Level needed. Based on the monitoring and analysis, compliance reminders are communicat- stable and competent compliance network and communication and collaboration with stakehold-
Ministry of Human Resources
and Social Security ed to all associates to ensure widespread awareness. empowering the new community constantly to ers, and enhance the overall awareness and level of
make it function effectively. sustainable development of the company.

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 02 T A K I N G P R O A C T I V E C L I M A T E C H A N G E A C T I O N S
A C R O S S V A L U E C H A I N I S C R U C I A L T O O U R F U T U R E .
CL IM AT E CH A NGE AC T ION S

BMW iX3
World premiere and first-ever all-electric
vehicle exported to the global market

300,000+
Public charging pillars accessible to
BMW customers across China

-7.5 %
Reduction in CO2 emissions
per vehicle produced

Number of NEV
495 dealer outlets in China

100 %
Renewable electricity used in
Shenyang production base since 2019

-7.4 %
Reduction in energy consumption
per vehicle produced

50 %
Percentage of aluminium ingot production that has shifted
to using renewable electricity for BMW Brilliance products

16.3 %
Percentage of customer support parts
imported by rail (up from 8.3% in 2019)
2.1 / CLIMATE-FRIENDLY PRODUC T S AND SERVICES

-51.3 %
Reduction in ­­­­CO­2 emissions per unit
2. 2 / GREEN PRODUC TION for outbound logistics since 2014
2.3 / SUPPLY CHAIN CLIMATE CHANGE AC TIONS
2.4 / GREEN LOGISTICS LEED WAREHOUSE New Spare Parts Distribution Centres
in Hefei, Beijing and Ningbo

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BMW BRILLIANCE CO2 FOOTPRINT

We are in the process of developing our CO2 reduction targets that align and contrib-
In 2020, the Chinese government an-
T H E B M W GROU P ' S ute to the BMW Group's 2030 climate commitment. Through these efforts, we aim to
reduce our emissions across our value chain, including our product portfolio, produc-
nounced new national goals of reaching
peak carbon emissions before 2030, and
tion process, supply chain, and logistics. Our work will drive the low-carbon transfor-
2030 C L I M AT E COM M I T M E N T mation of the nation’s automotive industry and help fulfil China’s carbon neutrality
achieving carbon neutrality by 2060. At
BMW Brilliance, we recognise that sus-
commitment. By taking decisive action today, we are securing the future. tainability is far more than a short-term
trend: In the long run, it will lead to superior
As an automotive company, BMW Brilliance creates CO2 emissions from the manu- solutions and ensure lasting prosperity.
facturing and use of our vehicles. We track our emissions at every stage of our value Our approach to climate change is fully
Sustainability is central to the strategic direction of the chain, from our own operations as well as our suppliers’ emissions and the emissions aligned with and supportive of the BMW
generated by our customers. In 2020, our total CO2 footprint increased due to pro- Group’s pathway to carbon emissions
BMW Group, and reducing the CO2 footprint across the reduction, and climate action is a key pillar
duction growth, and we will strive to reduce emissions across the whole value chain
entire value chain is a major component of the BMW for low-carbon and green transformation. of our refined sustainability directions.

Group’s Sustainability 2030 strategy.

BMW Brilliance CO2 Footprint
in t CO2 2019 2020 Change (%)

Total Emissions 15,417,955 17,741,047 15.1

SCOPE 1: DIRECT GREENHOUSE GAS EMISSIONS 1

By 2030, the BMW Group commits to: Total Emissions 42,141 43,614 3.5

SCOPE 2: INDIRECT GREENHOUSE GAS EMISSIONS 2

Total Emissions 68,602 71,275 3.9
Lowering lifecycle CO2 emissions Reducing production CO2 emissions
per vehicle by at least per vehicle by Electricity/heat purchased by BMW Brilliance 68,602 7 1,275 3.9

1/3 80
SCOPE 3: INDIRECT GREENHOUSE GAS EMISSIONS
Total Emissions 15,307,212 17,626,158 15.1
3 3,981,487 4,339,17 7 9.0
Upstream chain
% Logistics 4 173,102 175,113 1.2
5 11,058,404 12,799,547 15.7
Utilisation phase
compared to 2019. compared to 2019.
Disposal 3 267,321 300,866 12.5
6 8,815 2,105 -76.1
Business trips
7 9,065 9,351 3.2
Employees commuter traffic

Note:
Reducing use-phase CO2 emissions Reducing supply chain CO2 emissions 1. Direct CO2 emissions generated by fossil fuel consumption at BMW Brilliance plants, excluding the fossil fuel consumption of construction and on-site suppliers. The
per vehicle by more than per vehicle by at least coefficients used for calculation are from Emission Factors for Electricity, District Heating and Fuels issued by Application of German Association of the Automotive
Industry (VDA). Other climate-impacting gases than CO2 are not included.

40 20
2. Indirect CO2 emissions generated by the consumption of third- party electricity and heating purchased at the BMW Brilliance plants, excluding the third- party electricity
and heating consumption of construction and on-site suppliers. For calculation of the Scope 2 CO2 emissions, “market-based” methodology is used in accordance with
GHG Protocol Scope 2 Guidance issued by the World Resources Institute. Other climate-impacting gases than CO2 are not included.
3. Emissions from the upstream chain and disposal processes are calculated based on the carbon footprint of representative vehicles from the product lines, calculated

% % by Thinkstep’s LCA tool GaBi.

4. Emissions factors of logistics are based on emission factors in DIN EN 16258. Include emissions from inbound logistics, finished vehicle logistics, and aftersales
logistics. Emissions from inbound logistics do not include those derived from logistics from the US to China. Emissions from aftersales logistics do not include those
compared to 2019. compared to 2019. from Spare Parts Distribution Centres to dealerships.
5. The fleet emissions are extrapolated from the average fleet emissions of BMW Brilliance products sold in a given year. The calculation was based on an average
mileage of 150,000 km.
6. Include employees' air travels.
7. Include employees' commuting trips by shuttle bus between Shenyang downtown and BMW Brilliance production sites.

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2 .1

C L I M AT E - F R I E N DLY
P RODUC T S A N D S E R V IC E S

As a leader in China’s automotive in- To achieve these ambitious goals, not

dustry, we recognise that our premium only will we need to accelerate the elec-
products have environmental impacts trification process and expand the array
– but also that they can help advance of electrified vehicles we offer, but also
sustainable mobility. Because BMW strengthen the BMW Efficient Dynamics
Brilliance believes there is no premium expertise to make our conventional en-
without responsibility, it is our ambi- gines as efficient as possible. We strive
tion to lead the way in sustainability. to offer the most climate-friendly prod-
That is why we are taking responsibili- uct we can create whichever choices our
ty by making sustainability issues cen- customers make.
tral to our future strategic direction.
BMW Brilliance plays a pivotal role in
BMW Brilliance takes a holistic ap- delivering the BMW Group’s product
proach to new energy vehicle (NEV ) electrification target, and the achieve-
development, and we are guided by ments we make in China will spread
the 2030 target s set by the BM W throughout the world. Our compre-
Group as well as the relevant goals hensive, intelligent manufacturing
laid out in China’s NEV Industry De- base can produce ever y aspect of
velopment Plan (2021-2035). We are vehicles, including the latest battery
working to achieve the BMW Group’s technologies. We also have well-es-
2030 goal of reducing CO2 emissions tablished research and development
in the use phase of vehicles by 40% capabilities, and are home to the BMW
per vehicle over 2019 figures through Group’s largest NE V development
strengthening our E-mobilit y eco- net work out side of Germany. A nd
system of electrification, e-drivetrain our digital transformation – a crucial
improvements, and charging infra- enabler for E-mobility – is on the fast
structure. We aim to meet the govern- track in China, as we showcased dur-
ment’s vision of having NEVs account ing the rollout of our new line of NEV
for 20% of all new car sales by 2025, models in 2020. As a result, the core
THE BMW GROUP WILL PUT OVER 7 MILLION which aligns with the BMW Group’s competencies that we have developed
ELECTRIFIED VEHICLES ON THE ROAD WORLDWIDE goal of putting more than 7 million at BMW Brilliance make us well-po-
electrified vehicles on the road world- sitioned to lead the development of
BY 2030, AND BMW BRILLIANCE PL AYS A PIVOTAL wide by 2030. China’s premium NEV market.
ROLE IN DELIVERING THIS TARGET.

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E-MOBILIT Y PRODUCTS AND COMPETENCY

The year 2020 is BMW’s “Year of NEV” in China, The BMW iX 3’s ground-breaking new batter y We believe that sustainability does not have to
and it culminated with the world premiere of the was manufactured in our new High Voltage Bat- mean going without comfort and joy. In fact, sus-
first-ever, all-electric BMW iX3 – a milestone sig- tery (HVB) Centre II, which opened in September tainable products have the biggest impact when
nalling the start of the rapid develop- 2020 and is the first ___location worldwide to produce they inspire customers and find strong demand in
ment of BMW NEVs. The iX3 rolled off fifth-generation BMW high-voltage batteries. The the market. With its sustainable performance, out-
Electrification and the production line in September in She- new facility more than doubles BMW Brilliance's standing digital function, intelligent and intuitive
a strong E-mobility nyang, and was released to the global battery production capacity, and includes enough user experience, and breath-taking design, the iX3
product portfolio market at the end of 2020; it demon- room to accommodate our future capacity growth. sets a new benchmark for innovation in electric
are the foundation strates our commitment to world-class, By investing in a new high-voltage battery centre, and digital cars.
of sustainability. made-in-China manufacturing – Made with its state-of-the-art production technology and
in China, For China and the World – and strict quality management, we are able to optimise FROM "PRODUCTION IN CHINA" TO
forecasts the electrification of the BMW the quality, safety, durability, and efficiency of its "CREATION IN CHINA"
brand. We are also transforming our BMW i dealer battery products in the manufacturing process. Our Throughout 2020, we continued to strengthen our
network to support this E-mobility transformation, commitment to the HVB Centre II underlines BMW NEV product performance. The new BMW 5 series
with 196 dealers providing customers with our Brilliance's commitment to high-quality develop- plug-in hybrid with e-range extension incorporates
BMW i products at the end of 2020, up from 91 in ment, and further consolidates BMW's position as our innovative battery technology and is capable of
2019. an E-mobility pioneer. traveling 95 km per charge in pure electric mode,
a 42% increase over the previous generation. The
combined fuel consumption per 100 km is further
decreased to 1.5 L. The battery upgrade at the
Key core of the e-range extension project has achieved
Sustainable 100% independent research and development in
Features of its parts for the first time, demonstrating the evo-
the BMW iX3 lution of high-voltage batteries from “Production in
China” to “Creation in China”.

We continue to enrich the product line-up and pro-

vide customers with diverse choices when it comes
to premium NEVs, from business sedans to mid-
500 KM AERODYNAMIC DESIGN: RARE EARTH MATERIAL- size SAVs, among which the BMW 535Le contin-
E-RANGE MORE EFFICIENT TO DRIVE FREE ELECTRIC MOTOR ues to lead the Chinese premium PHEV market.

The zero-emission BMW iX3 The aerodynamic wheels weigh We eliminate the use of fixed
As a result of our continuous improvement and strong
is the first model to offer the 15% less than its predecessors permanent magnets in iX3
product lines in 2020, BMW Brilliance saw strong
fifth generation of BMW eDrive and reduce its drag coefficient drive unit, which helps avoid
NEV sales performance both in volume and quality.
technology, and offers our by around 5%, which contribute using rare earth materials
We sold 27,664 NEVs across China, and our NEV
customers up to 500 km of to improved handling and in the manufacture of the
dealer outlets grew to 495, up 10% from last year.
e-range driving, high energy greater overall efficiency. electric motor.
efficiency, and intelligent mobility.

1.5 L/100 km 495

Combined fuel consumption BMW NEV dealer outlets in The new BMW 5 series plug-in hybrid with a 42%
of the new BMW 5 series. China, up 10% from 2019. increase in e-range under pure electric mode.

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DELIVERING A WORRY-FREE E-MOBILIT Y EXPERIENCE THE FIRST 3-IN-1 SUPER CHARGING STATION
As part of our efforts to further improve the NEV
ecosystem and benefit more NE V customers,
We believe that electromobility can only be successful when customers are able to recharge their vehicles BMW signed a strategic cooperation agreement
conveniently. We are strongly supporting the build-up of charging infrastructure so we can offer our drivers with State Grid E V Ser vice ( SGE V S ) to work
“one-stop shopping” for customer-centric charging services – BMW Charging, including public charging, hand-in-hand on the research and innovation of
private charging and branded charging through digital services. charging technologies, cooperation in sales and
marketing of charging, and promotion of the use of
In 2020, we built on our public charging infra- – including more than 100,000 fast-charging DC new-energy power for NEVs. Our joint team is im- BMW PARK & CHARGE SERVICE
structure network to increase the accessibility and pillars – in over 300 cities across the country. This plementing the ChaoJi high-power charging stand-
convenience of the BMW charging experience. As extensive network of charging facilities enables ard and technology cooperation, and connecting To provide premium charging services to BMW NEV customers, we offer
branded charging options that are powered by BMW. At the beginning of
of the end of the year, we have integrated more long-distance E V travel that spans more than the SGE VS plug and charge service network to
2021, we have enabled our Park & Charge service at five international air-
than 300,000 public pillars in a unified network 50,000 km of national highways. the BMW platform. In 2020, we introduced the first
ports in four major cities; we have also installed exclusive charging stations at
built in partnership with charging point operators three-in-one charging station at a BMW dealer,
more than 13 popular shopping centres among nine cities. 269 BMW dealers
which brings solar power generation, energy stor- spanning over 120 cities had rolled out charging stations by the end of 2020.
age, and NEV charging together in one place.

BMW public charging pillars provided in over 300 cities across China
in number

PRODUCT LIFECYCLE ASSESSMENT

REDUCE CARBON AND RESOURCE emissions, which is derived from the CAFC, also
FOOTPRINT THROUGH LCA increased by 3.1% to 142.09 g/km in 2020. Despite
81,585 130,405 306,891 In order to achieve the BMW Group’s 2030 goal the more stringent regulations faced by the auto-
of reducing the lifecycle emissions per vehicle by motive industry, BMW Brilliance takes a firm stand We completed our
first LCA for the BMW
at least one-third of the 2019 benchmark of 52t of on fulfilling our climate commitment and will contin- 530Li XDrive in 2020
CO2 equivalent per vehicle, BMW Brilliance needs ue to collaborate with industry peers and regulatory to identify more
2018 carbon-reduction
to conduct detailed lifecycle assessments (LCAs) agencies to create sustainable mobility together. opportunities.
2019
of our models. Our assessment approach follows
2020 the ISO 14040/44 standard, and in 2020 we com- As a technology-driven company, BMW Brilliance
pleted our first LC A of the BMW 530Li XDrive. aims to advance climate protection through tech-
This process helped us identify more carbon-re- nological progress and collaboration. We apply
duction opportunities throughout the product life- the BMW Efficient Dynamics to systematically
MAKE CHARGING CONVENIENT FOR ALL MAKE CHARGING A GOOD EXPERIENCE cycle, such as the use of secondary materials and optimise every aspect of the vehicle, with an eye
CUSTOMERS We are working to improve the customer charging renewable energy, which we can take into account to increasing fuel efficiency and reducing CO2
We now feature three private charging options experience with all-new digital channels. Starting in during product development. emissions. Among the areas in which we have
to fulfil our customer needs. Our complimentary September 2020, we launched new charging digital found success are through improving the aerody-
basic installation service with a free BMW wallbox services on the My BMW app and on WeChat, includ- FUEL CONSUMPTION MANAGEMENT namics of our vehicles, light-weighting our product
has been offered throughout China for BMW NEV ing the public charging services covering the find, In 2020, our Corporate Average Fuel Consumption designs, and improving the efficiency of our com-
customers who have parking lots with installation use, and pay customer journey, the private wallbox (CAFC) increased from 5.79 to 5.97 L/100km, pri- bustion engines. For instance, by optimising the
feasibility, to make charging at home easy, safe, control functions, and the reservation services for marily due to a change in the Dual-Credit policy, cylinder structure and thermal management of our
and convenient. For customers without installation branded charging stations. The new extended public under which the Chinese government allows vehicle BMW B48 TUE 1 combustion engine, we were able
pre-conditions, they can choose a free wallbox only, charging point of interest (POI) is also available in the manufacturers to trade NEV credits on a trading to increase the engine’s efficiency and reduce en-
or enjoy free charging card service in certain cities. head-units of some of our NEV models. platform and transfer C AFC credits to related ergy waste by 6%.
parties. As a result of this, our average fleet CO2

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FOSTERING A GREEN LIFEST YLE

We believe that a green lifestyle is the lifestyle of the future, and seek to foster
a sustainable mindset and behaviour change among our NEV customers.

Not only through our sustainable products, but 1. 2.

also by creating customer experience activities

and inspiring customers through our dealers’
green building designs and low-carbon operations.

MAINSTREAM GREEN LIFESTYLE AMONG

85,000 + OUR NEV COMMUNITY

We are working to mainstream the NEV communi-
BMW NEV customers
on the road in China ty, to keep them strongly connected to each other
by end of 2020. and to BMW through regular, diversified commu-
nications. Building these connections will create
a strong sense of belonging, and encourage them
to recruit others to join the NEV community. With
more than 85,000 NE V customers on the road 3.
today, we are continually learning how to better
understand our current and future customers’ in-
terests and mindsets to create sustainable mobil-
ity products and services to meet their needs. We
are increasing the visibility of our NEV community
on official BMW channels such as the BMW Offi-
cial Customer Club (BOCC) app and regular NEV-
themed posts in the virtual community there. We
strive to strengthen our long-term relationships
with our NEV customers through prompt, efficient
communications and timely responses from our
customers across our channels.

In 2020, we hosted a number of sustainabili- PROMOTING SUSTAINABILITY TOGETHER 1

BMW NEV Weekend
ty-themed activities for our current and future NEV WITH DEALER PARTNERS Get-away trip to an
customers. The BMW NE V Weekend Getaway We create climate-friendly environment to cus- SOLAR PHOTOVOLTAIC SYSTEM AT BMW DEALERSHIPS organic farm in 2020.

trip included a visit to an organic farm, dialogues tomers at our dealerships by encouraging and 2
Our Hangzhou Jinchang Chenbao dealership installed a 27-kW solar
around sustainable lifestyles, and NEV test-drives supporting dealers to adopt green building de- Solar photovoltaic
photovoltaic system, which generates estimated coal savings of 7.85 t panels installed on
and cruising. We are encouraging our dealers to sign and low-carbon operations, with reference and CO2 emission reduction of 20.88 t per year. And our Nanjing Ningbao the rooftop of BMW
create NEV product and brand experiences, includ- to the National Assessment Standard for Green dealership has gone even further: In addition to installing a geothermal Hangzhou Jinchang
Chenbao dealership.
ing customer testimonials, DIY workshops around Buildings, particularly the standards for 1-star and heat pump that is 40% to 60% more efficient than a traditional HVAC
NEV and sustainability themes, and more. Among 2-star grades, as well as BMW’s own 5S Standard. system in energy saving, the dealership has installed a solar photovol- 3
The BMW Hangzhou
the best practices our dealers presented in 2020 Among the practices we help dealers implement taic system capable of generating 44,733 kWh per year, and LED light-
Jinchang Chenbao
were a number of outdoor activities, including a are solar photovoltaic systems and green roofs, ing that saves an additional 326,974 kWh of electricity per year, which dealership.
marathon and a forest music show, that connected energy-efficient lighting, efficient water use and together generate coal savings of 123.78 t of standard coal equivalent.

the NEV community to a sustainable lifestyle. stormwater management, and much more.

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2.2

GR E E N P RODUC T ION
IMPROVING ENERGY EFFICIENCY
Optimising energy use has long been the BMW
Group’s focus in reducing overall CO2 emission. In "Technological revolution and
2020, the company announced its 2030 goal to cleaner production is the way of
reduce energy consumption per vehicle during pro-
climate change adaptation."
duction by 25% from 2016 levels. To help achieve this
goal, BMW Brilliance uses an ISO 50001-certified — Shenyang Local Government Representative

energy management system, and we work closely

with our process teams to refine our management
approaches and further standardise our energy me- among our associates, we host regular training
tering management to maximise energy efficiency. As programmes and workshops to provide the work-
a result, in 2020 we decreased energy consumption force with the latest updates in energy-related
per vehicle produced by 7.4%, to 1.51 MWh per vehicle. practices and standards.

Optimising our production energy use has been

key to achieving these reductions. Under our
approach, each production workshop identifies PROMOTING INNOVATION THROUGH
significant energy use and develops standardised THE "STEAM" PLATFORM
procedures customised for various use scenarios
to use energy in the most efficient ways possible. One key energy-saving initiative we have under-
Vehicle painting process in our paint shop.
We are continuing to standardise our energy me- taken is our Standard Tool for Efficiency Appli-

tering toolkits and data management platforms to cations and Measures (STEAM). We introduced
this platform to provide employees with a way to
In 2020, the BMW Group announced an ambitious begun exploring other carbon-reduction practices. maintain an accurate, real-time database for pin-
submit their innovative ideas for energy efficien-
2030 goal of reducing the CO2 emissions from We aim to show the country, and the world, what is pointing areas with energy-saving potential. And
cy improvements during production processes. In
the production of its vehicles by 80% per vehicle possible in this field. in order to foster awareness of energy efficiency
2020, our associates submitted 21 measures to the
over 2019 levels and achieving carbon-neutral
platform, which will result in a combined savings
production in the near future. BMW Brilliance is of 6,649 MWh of energy use per year. One of the
CO2 emissions per vehicle produced Energy consumption per vehicle produced
hard at work aligning with these goals, following high-impact examples was a suggestion for mak-
in t/vehicle in MWh/vehicle The BMW Group's
a three-pronged approach: optimising our energy ing our powertrain washing process more efficient 2030 goal on energy
consumption per
infrastructure, improving our energy management 2.05 by better controlling the frequency of washes and
1.13 vehicle during
systems, and revamping our production processes. 1.2 2.0 1.83 capturing and recycling the hot steam. This change production:
1.65 1.63 makes the process 40% more efficient, and can
-25 %
1.51
BMW Brilliance has already made strong pro- save as much as 3,582 MWh of energy use per
0.70 year. Another solution came from improving the
gress toward these goals: In 2020, we reduced 0.63
from 2016 levels.
air supply unit of the paint shop in Plant Dadong.
our CO2 emissions per vehicle produced to 0.18t,
0.6 1.0 By shutting down the air supply unit in the facility’s
down 7.5% from 2019. We successfully maintained
office area overnight, then preheating and cycling
our National Green Plant certification during the 0.20 the air into the paint shop oven, we estimate that
-7.4 %
0.18

-7.5 % three-year review, and have fully realised the total

energy consumption and energy intensity targets
812 MWh of energy can be saved per year. As we
develop and build new plants, we are using advan-
0.0 Reduction in energy
Reduction in CO2 0.0
laid out in China’s 13th Five-Year Plan. We recog- tage technology to save 12 Bar of compressed air. consumption per
emissions per vehicle 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
vehicle produced
produced from 2019. nise that there is more work to be done, and have from 2019.

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RENEWABLE ENERGY USE

The BMW Group has set a 2020 target of sourcing

all external electricity from renewable sources for
its worldwide production plants. BMW Brilliance
fully achieved this goal in 2019 at our production
Since the end of 2019,
base in Shenyang, and we continue to optimise
our renewable energy portfolio while also explor-
we have switched to 100%
ing other clean energy alternatives.
renewable electricity at our
In 2020, we maintained 100% renewable elec-
tricity at our production plants, with on-site solar
Shenyang production base.
power, wind power and International Renewable
Electricity Certificates. As we continue building
Our next goal is to achieve
the Tiexi New Plant and Plant Dadong Extension
projects, we estimate the solar photovoltaic sys-
carbon-neutral production,
tems installed there will quadruple our renewable
electricity generation capacity, resulting in further
as part of the BMW Group's
CO2 reductions.
climate commitment.
We are developing an alternative energy roadmap
to help us explore additional alternative energy
options, such as wind power and biomass gas.
Production system at the workshop of CATL, HVB cell supplier of BMW Brilliance.

2.3

SU P P LY C H A I N In 2020, the BMW Group became the first automobile man-

ufacturer to set concrete targets for reducing CO2 emissions

C L I M AT E C H A NGE
from its supply chain, with a 2030 goal of at least 20% lower
supply chain emissions per vehicle from 2019 levels. In addi-
tion, the BMW Group has committed to only using electricity
AC T ION S from renewable sources for all of its battery manufacturing,
which will save an estimated 10 million t of CO2 by 2030.

100 %
CARBON
NEUTR AL
BMW Brilliance has already begun laying the foundations of
our own low-carbon supply chain transformation to support
Renewable electricity Production the BMW Group’s 2030 target as well as the Chinese gov-
ernment’s carbon-neutral commitment. Our newly launched
Supply Chain Climate Change Initiative will identify the most
effective levers in our supplier network to reduce CO2 emis-
2019 2020 Future sions, and will improve our transparency on CO2 emissions
disclosures and reporting.

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LINES OF ACTION TOWARDS A LOW-CARBON SUPPLY CHAIN

We have identified three initial approaches to ac- tifying CO2 emissions hotspots across our Tier-1 2021 OUTLOOK for supplier nomination to encourage suppliers to
celerate our shift to a low-carbon supply chain. to N-Tier supplier network, exploring the oppor- BMW Brilliance will continue to explore the poten- prepare for long-term CO2 reduction strategy and
We are working with our suppliers to identify and tunities for carbon reductions, and strengthening tial of clean energy to accelerate the low-carbon activities. As we continue to advance our under-
implement energy efficiency and energy-saving our suppliers’ awareness of and capabilit y for transformation of our supply chain. A China sus- standing, we will share our experiences and best
measures. As part of that process, we are also CO2 disclosures through training and sharing best tainability management project team will be set up, practices across our supply chain to mobilise even
helping improve their data quality and promot- practices. To date, we have included in this initi- with more intensive focus on building a low-carbon more suppliers to achieve green production. These
ing the CO2 transparency, so we can confidently ative representatives from suppliers in our most supply chain. We will fully roll out our supply chain efforts will help ensure the achievement of the
measure their emissions and track improvements. energy-intensive industries and key geographies CO2 emission transparency project and engage BMW Group’s overall sustainability target, as well
With these focus areas as a backdrop, our Supply across our supplier network, to develop a better more suppliers in disclosing their CO2 emissions. as promote the implementation of China’s sustain-
Chain Climate Change Initiative is helping us lay overview of the potential areas for improvement in We will also initiate CO2 target-setting process ability strategy across the supply chain.
the groundwork to scale up these actions by iden- the supply chain.

SUPPLY CHAIN CLIMATE "It is crucial to partner with

opportunities to improve their energy efficiency
and reduce emissions. We partnered with 20 se-
CHANGE INITIATIVE: BUILDING suppliers to bring down carbon lected Tier-1 and Tier-2 suppliers and conducted
footprints in our supply chain."
A SOLID CORNERSTONE on-site audits with third-party professionals. After
processing the results of the audit, we provided
— message from BMW Brilliance shareholder
each supplier with a summary report and a list
of measures to improve efficiency and reduce
emissions, including management improvement,
Carbon Energy Green equipment upgrades, process optimisation, and
Disclosure Efficiency Power Over the course of the year, BMW Brilliance made awareness-raising.
progress on increasing our supply chain CO2 emis-
sions transparency. As a pilot project, we developed EXPANDING RENEWABLE ENERGY USE
customised toolkits and offered one-on-one trainings AND BUILDING PARTNERSHIPS IN CLIMATE SOURCING ALUMINIUM INGOT
to support our suppliers in disclosing their carbon ACTION PRODUCED BY GREEN ELECTRICITY
emissions data on the 3rd party platform. We enrolled As part of our efforts to green our supply chain, we
TRANSPARENCY, PARTNERSHIP, & COLLABORATION In 2020 nomination, our aluminium ingot supplier,
20 suppliers in this 2020 pilot project, who have been also began considering our raw material suppliers’
which accounts for 50% of BMW Brilliance’s alumin-
well prepared for further improving CO2 emissions renewable energy use as one factor for deciding if
ium ingot, has completed its shift to renewable elec-
transparency in 2021 as well as for the future. we enter into a new contract with them or extend an
tricity for BMW Brilliance products. The supplier had
existing contract. By transparently including renew-
successfully utilised renewable electricity in the up-
GHG On-site Explore A key aspect of our supply chain emissions work able energy as a criterion for doing business with stream aluminium electrolysis process and ingot pro-
Disclosure Capacity Collaboration in 2020 included helping our suppliers evaluate our suppliers, we are motivating them to achieve duction, and will reduce its emissions by 0.36 million
(Pilot) Building Model green production and reduce CO2 emissions.
their energy consumption practices and identify t of CO2 equivalent in the contract period 2021-2023.

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2.4

GR E E N L OG I S T IC S
EXPANDING LOW-CARBON TR ANSPORTATION MODES

As we work to achieve the BMW Group’s 2030 logistics, getting materials from our suppliers to RAILWAY-TO-RAILWAY TO THE WEST export partners: Because the facility is in the same
sustainability goals, as well as the Chinese gov- our manufacturing bases; outbound logistics, BMW Brilliance has been continually expanding the province as our Shenyang plants, we are signif-
ernment’s carbon neutrality commitment, BMW sending finished vehicles from plants to consum- proportion of low-carbon modes of transportation, icantly reducing the transportation distance and
Brilliance is committed to low-carbon processes ers; and customer support logistics, delivering emphasising multi-modal operations to reduce our CO2 emissions for the first stage of our outbound
across all of our logistics flows. spare parts from Spare Parts Distribution Centres CO2 emissions. We achieved a major milestone in logistics for the BMW iX3.
to dealerships. To achieve a lighter environmental July 2020 when we successfully launched our rail-
Our logistics operations span the country and the footprint, we are embracing multi-modal transpor- way-to-railway project, which now delivers finished Customer support logistics represent a carbon-in-
world, and managing them is a complex operation. tation, adopting innovative low-carbon vehicles vehicles from Xi’an’s Xinzhu train station to Urumqi tensive aspect of our supply chain: The majority of
We are targeting all three of our primary logistics and fuels and greener warehouses, and applying a train station. The “last mile” delivery of finished vehi- our spare parts are imported from Europe, with air
operations in our sustainabilit y work: inbound digital approach to streamline our operations. cles to Urumqi and Lhasa direction, conventionally by and sea transport still being the primary modes of
road freight with a 2,000+ km haulage, is now cov- shipping for these deliveries. We are dramatically
ered by our railway network. By extending trunk-rail- increasing our use of rail transport for these ship-
way transportation and eliminating the need for trucks ments: In 2020, 16.3% of our imported spare parts
along the 2,000 km delivery route, we are bringing were transported by rail, up from 8.3% in 2019.
tangible CO2 savings while improving the stability, se-
curity, and efficiency of our logistics operations. WAREHOUSE PLANNING OPTIMISATION
We are also optimising our warehouse operations
As a result of these improvements to our outbound with more advance planning through Leading Ware-
logistics, we are now transporting 78% of our finished house Project, allowing us to maintain a reserve of
vehicles wholly or partially by rail, which has reduced slow-moving spare parts for which we sometimes
our CO2 emissions by 51.3% per unit since 2014. receive urgent requests. By keeping a stock in our
warehouses at the Shanghai Spare Parts Distribu-
TO THE WORLD THROUGH DALIAN PORT tion Centre, we are better able to avoid importing
With the world premiere of the all-new BMW iX3 items from abroad unnecessarily and inefficiently.
NEV in 2020, we have been prioritising the use As we continue to improve the flexibility of our parts
of low-carbon transportation options as we begin distribution among our local Spare Parts Distribu-
exporting the innovative vehicle around the world. tion Centres, we will be able to minimise air trans-
We selected the port of Dalian as one of the key port needs for the urgent parts requests.

2,000 KM+ 78 % -51.3 % 16.3 %

WAREHOUSE
OPTIMISATION
haulage to Urumqi and of our finished vehicles Reduction in CO2 emissions of our imported spare Avoid unnecessary
Lhasa is now covered by are wholly or partially per unit for outbound parts are transported by imports from abroad
our railway network. transported by rail. logistics since 2014. rail, up from 8.3% in 2019. for urgent requests.

Export of the all-new BMW iX3 from Dalian Port.

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OPTIMISING INNOVATING ON
LOGISTICS PLANNING TR ANSPORTATION VEHICLES

PARCEL TRAIN PROJECT EXPANDING THE USE OF E-TRUCKS

In 2020, BMW Brilliance built our pilot “parcel train” pro- Just as electric vehicles are making personal transport
ject from 2019 into our routine operations. This innovative cleaner, we are working to develop electric vehicles that can
approach to rail transport allows parcels of variable dimen- change how we deliver our products. In 2020, we began
sions to be transported together in one container, allowing collaborating with truck manufacturers and logistics service
our logistics service providers to fill containers more effi- providers on a trial of battery-powered E-trucks in our Da-
ciently and maximise the use of space. In our first year of full dong Plant Dispatch Areas (PDAs). Another pilot project in
operations in 2020, approximately 10% of the total parcel Foshan leveraged E-trucks to transport spare parts from
volume transported from the Greater Shanghai region to our our Spare Parts Distribution Centres to dealerships. We
Shenyang production base utilised the parcel train model. are also trialling the use of E-trucks for in-plant transport:
At Plant Dadong, a fleet of these E-trucks are providing
Our new warehouse in Dalian Port equipped with natural light belts.
"MILK-RUN" ROUTE PLANNING low-carbon transport for materials and parts over the short
For our customer support logistics, we are working to mini- distances to production workshops.
mise the distances when delivering spare parts. We are de- GREENING OUR
veloping a milk-run route planning approach to holistically USING LNG FOR HEAVY TRUCKS 2021 OUTLOOK
consider distance, timeliness, payloads, and vehicles to de- In addition to battery-powered trucks, we are conducting a WAREHOUSES We will continue to improve the energy efficiency
liver parts to dealerships within certain range. In the future, feasibility study to identify the potential benefits and chal- and reduce the CO2 emissions for all of our logistics
we will increasingly localise our spare parts supplies, so that lenges to using liquefied natural gas (LNG) trucks in our BMW Brilliance’s Spare Parts Distribution Centres in He- flows. For our physical logistics, we are piloting
we can cut down on our international transportation needs. logistics operations. In 2020, we rolled out an LNG truck pi- fei, Beijing, and Ningbo are designed in alignment with the a programme to reuse secondary HVBs for pallet
lot programme in some of our Decentralised Dispatch Area LEED Green Building Standard, which will significantly trucks in our plants. In collaboration with our busi-
(DDA) cities to help us better understand the opportunities. reduce our energy use and improve our renewable energy ness partners, we have developed rigid process
While LNG fuel promises a lower carbon footprint than die- use, dramatically shrinking our carbon footprint. And we to assess, select, and reassemble HVBs that are
sel, we have identified a number of challenges, including are currently upgrading and rebuilding our warehouses to retired from a BMW vehicle to the same degree of
unpredictable prices for LNG, a shortage of fuel and main- improve the efficiency of our storage utilisation and reduce safety and functionality, and repurpose for powering
tenance stations for LNG vehicles, differing documentation overall energy consumption. the smaller warehouse vehicles, thereby extending
needs for annual LNG truck reviews, and reduced carrying the lifespan of our HVBs and making the most use of
capacity due to the ___location of the gas tank. We are current- SAVING ENERGY VIA ACTIVE MEASURES our battery technology.
ly working with truck and trailer producers to explore opti- We are also working with our logistics operators at our DDAs
10% of our total parcel We are piloting the use
volume from the Greater of E-trucks in various
mising the gas-tank position to increase payload capacity. to measure and report their energy and water consumption Our outbound logistics work will focus on further
Shanghai region is now scenarios - for our in-plant and set water consumption targets to raise awareness of utilising clean energy trucks in the coming year. We
transported to Shenyang transportation; at our Plant
with the Parcel Train Dispatch Areas, and in our
resource use and encourage better conservation practic- will put more LNG trucks into use, and roll them out
model, cutting more CO2 customer support parts es. Our warehouse in the Zhengzhou DDA has installed for use in additional DDA cities. We will work in close
emissions from efficiency delivery, as our attempt to DIGITALISED MANAGEMENT APPROACH a water recycling system that saved 20,409 L of water in collaboration with heavy truck /trailer manufactur-
improvement. green our logistic fleets.
Part of our efforts to streamline logistics involves making our 2020 alone. Our Plant Tiexi PDA monitors their electricity ers and logistics service providers to develop heavy
vehicle distribution management (VDM) system more effi- consumption and the Block C area reduced electricity use in trucks powered by LNG and battery.
cient. We are developing new modules to enable real-time 2020 by 14,743 kWh over 2019 consumption. And our ware-
monitoring and CO2 emissions calculations for distribution house in Dalian Port was designed to incorporate natural For our customer support logistics, in 2021 our Spare
routes in our outbound logistics network. By adopting a digi- lighting through skylights and transparent lighting belts. By Parts Distribution Centre in Hefei will go live, bringing
tal-first approach, our dealers have visibility into what vehicles using natural light for the facility 10 hours per day, we have more potential for optimising delivery networks and
are available and the distribution status of the vehicles they
calculated that the facility is saving 180,000 kWh of electric- further reducing CO2 emissions. We will continue to ex-
have already ordered; we are also able to reduce our paper use
ity use every year. plore opportunities with our logistics partners to bring
by eliminating paper distribution labels and handover sheets.
more new energy vehicles into our fleet by specifying
our preference for NEVs in our service requirement.

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A G R E A T
R E S P O N S I B I L I T Y
C O M P A N Y I S A B O U T
B E Y O N D
T A K I N G
O N E ’ S O W N A R E A .
03

+ C-NCAP rating scored by the

all-new BMW 3 Series

108,070
Number of parts collected for remanufacturing in
2020, with a total weight of over 669 t

4,347 Pieces of HVB recycled in 2020,

with a total weight of 98,261 kg

Establishment of the 1st closed-loop system for

STEEL steel, with 45,000 t recycled in the loop in 2020.

& R E S I L I E N T VA L U E C H A IN
ACCOU N TA B L E , C I RCU L A R
-47.1 % Reduction in accident frequency rate (AFR)

-3.8 % Reduction in VOC emissions per vehicle produced

-17.9 % Reduction in water consumption per vehicle produced

PRODUC T AND SERVICE QUALIT Y / 3.1

CIRCUL ARIT Y / 3. 2
RESPONSIBLE ENVIRONMENT, HE ALTH & SAFE T Y MANAGEMENT / 3.3
BUSINESS ACCOUNTABILIT Y / 3.4

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3 .1

P RODUC T A N D The BMW Brilliance Qualit y Circle for Qualit y

Management System (QC QMS) was launched in
BMW Brilliance Quality Governance Structure
Our Three Lines of Defence

S E R V IC E QUA L I T Y
2020 to maintain and improve our overall quality
management systems based on the ISO 9001 and
IATF 16949 quality management systems. This SUPERVISORY BOARD
BOARD OF MANAGEMENT
AUDIT COMMIT TEE
seven-member panel consists of senior leader-
ship, including our Head of Corporate Quality. The
Quality Circle meets regularly throughout the year
Ever ything we do at BMW Brilliance is driven by to assess progress towards our quality targets.
a desire for premium qualit y— and that premium Third Line of Defence
quality includes not only best-in-class products and The continuous improvement approach is the core – Corporate Audit

services intended for individual mobility, but also a element that shapes our qualit y targets. BMW
continual focus on the customer. Customer satisfac- Brilliance quality targets cascade down from top
tion is one of BMW Brilliance’s top priorities, and we management to frontline associates based on long-
Second Line of Defence
have created a customer-centric experience at every term company objectives, defined by indicators
– Quality – Risk
single touchpoint of the customer journey. necessary to measure achievement of that target, Management Management
– Compliance – Security
and understanding the value of achieving that tar-
– Controlling – Others
get. Teams shape the goals in three-level meetings,

A responsible—and sustainable— establishing responsibilities and identifying subse-

quent review meetings to ensure that the company First Line of Defence
company must take into account the
– Business Department
impacts of its operations on people and the remains on track to achieve those targets. – Internal Controls
planet, from the beginning of its supply chain
to the end of life of its products. Driven by our TOTAL QUALIT Y A QUALITY-FIRST MINDSET
goals of corporate responsibility and green In order to consistently achieve the targets set
MANAGEMENT
development, BMW Brilliance has developed a by company leadership, we have developed a
comprehensive ethos of quality, service, safety, comprehensive set of qualit y-related trainings
and responsibility. « QUALITY NUMBER ONE » designed to foster a quality-first mindset. The cor-
Our quality strategy is called Quality Number ONE, porate-level Product Safety & Conformity online maintain premium product and service quality and
Our Total Quality Management strategy puts and it expresses our claim to leading within the training spotlights the most crucial aspects of our strengthen the company’s resilience to policy and
the customer at the centre of everything we do, premium mobility market. We believe in leading by quality work: People’s health and safety must not market changes.
and BMW customers expect the highest quality taking responsibility and ownership to exceed cus- be endangered by products; producers are respon-
products, services, and corporate behaviours. tomers’ expectations. Our core values shape our sible for product defects that cause personal and 2020 also marked the launch of the first Product
We invest resources and our expertise in behaviour guidelines, which support company efforts property damage, and products comply with the Integrity Seminar, co-hosted by BMW Brilliance
creating state-of-the-art products as well as to live our quality policy every day. legal requirements of all countries. In 2020, 100% and VDA QMC, the Quality Management Centre
innovative approaches to circularity in our of BMW Brilliance associates completed this train- of the German A ssociation of the Automotive
materials use, from raw materials to packaging. QUALITY MANAGEMENT AT BMW BRILLIANCE ing. Industry. The event brought together managers
The BMW Brilliance quality governance structure con- and senior leaders from Corporate Quality, R&D,
We pride ourselves on maintaining safe sists of three lines of defence: The first line is made To enhance our quality management capabilities, Procurement and Supply Chain, Plant Qualit y,
and healthy workplaces, at every BMW up of internal controls and the business department, we actively engage in dialogue with industry ex- Customer Support, Legal, and more. BMW Bril-
Brilliance facility and dealership, and by followed by a comprehensive group of Compliance, perts on latest policies and regulations and best liance leaders showcased our dedication to prod-
sharing our successes and high standards Quality Management, Risk Management, Controlling, practices. In 2020, we held the fifth annual Quality uct integrity, and jointly discussed how to achieve
with our suppliers, we are working to spread Security, and others to make up the second line of de- Management Workshop with China Automotive product integrity across all operations. At the end
responsibility across our supply chain. And fence; the third line of defence consists of our Corpo- Technology and Research Centre (C ATA RC ), of the seminar, the Corporate Quality Department
as our business, and the country, becomes rate Audit team. Each of these groups reports to our where experts from government agencies, re- committed to organise an ongoing series of prod-
increasingly digital, we are committed to Board of Management, and the Corporate Audit team search institutions and our company shared in- uct safety and conformity meetings, seminars, and
industry-leading data privacy and information also reports to our Supervisory Board. sights on quality management and product safety. audits to ensure that all requirements are fully and
security practices. Close collaboration with industry experts helps us effectively implemented.

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PRODUCT QUALIT Y AND SAFET Y

Achieving premium product quality requires excep- is able to identify and locate casting or machining PRODUCT SAFETY DESIGN
tional product conformity and corporate responsi- defects in cylinder heads with 99.7% accuracy. By Offering our customers the safest products on the "Automobiles are products with social
bility for product safety. BMW Brilliance maintains leveraging this system, the BMW Brilliance man- road begins at the design phase—and benefits all attributes. Vehicle safety should always
the high level of quality of products delivered from ufacturing department has decreased the rework road users. BMW Brilliance follows an integrated
be the priority."
our plants, and we are proud to rank in the highest time for this line by 65%, and has demonstrated approach to adhere to the most stringent national — Perspective from Civil Society
levels of the BMW Group’s plant network for over- how this technology can be reused in any industrial and international safety standards, all in service
all plant delivery quality. scenario where tiny object detection is necessary. of maximising safety and protecting customers’
In 2020, we piloted the use of 5G technologies health.
OUR QUALITY ASPIRATION: ZERO DEFECT in some processes. For a Welding Point Quality
BMW Brilliance adheres to a Zero Defect goal Check pilot, 5G wireless data transmissions al- Product conformity is fundamental to safety de-
across our entire process, from order to delivery, lowed for an increase in quality check measure- sign, and we go beyond to meet and exceed regu-
and the BMW Purchasing and QMT teams drive ment results, with a 3-D camera in use to collect lations and customer expectations by integrating
that process. Suppliers are required to commit to data. safety into every aspect of our products as well as
the same level of product quality as the company incorporating passive safety systems into our vehi-
as a whole, and suppliers are selected and eval- Production simulation is another promising tech- cles. The new BMW 3 series increases the ratio of
uated on five strategic criteria: product quality, nology in use in BMW Brilliance plants. Simulating high-strength steel, which improved overall body
incorporating sustainability into product develop- and closely monitoring every step of a process al- strength by 25% and cabin and chassis strength
99.7% ment, supply chain management, agile and flexible lows for the identification of every minor deviation, by 50%. In addition, the series was designed with
Accuracy of defect production, and cost efficiency. and enables us to correct the error virtually before active engine hood measures that reduce impacts
identification by our entering physical production. to pedestrians in case of a collision.
AI-detection system
in the cylinder-head To achieve Zero Defect in our production, in all
production process. new products, and throughout the supply chain, Reliability is a key element of product quality, and INTELLIGENT SAFETY SYSTEM
BMW Brilliance utilises Industry 4.0 technologies our quality management system also covers prod- New intelligent safety systems go beyond to pro-
in the pressing, welding, painting, and assembly uct use. BMW Brilliance monitors our products and vide drivers assistance for maximum safety and
processes to enhance our data analytics, further investigates any reports relating to safety. Upon optimum comfort. For instance, steering and lane
improving process stability and product quality. uncovering any safety or quality issues, we imme- guidance assistance are designed to help drivers TOP SAFETY SCORE FOR THE BMW 3
The use of artificial intelligence (AI) and 5G tech- diately inform the relevant authorities and take all keep their vehicle in the centre of the lane, whether SERIES IN C-NCAP AND EURO NCAP
nologies enhance process and product quality. An necessary steps to protect our customers. traveling in heavy traffic or on long drives. Dis-
The all-new BMW 3 series has set a new bench-
innovative AI detection system in use in our plants tance control, also called adaptive cruise control,
mark for performance, quality, and safety. In 2020,
uses sensors to adjust the speed of the vehicle to
the 3 series, manufactured at BMW Brilliance’s
maintain a safe distance between surrounding ve-
Plant Tiexi, scored highest of all vehicles tested by
hicles while optimising travel at the desired speed. CATARC for its China-New Car Assessment Pro-
BMW Brilliance models won the 2020 China Automobile Customer Satisfaction Index (CACSI) from CAQ
gramme (C-NCAP). The five-star plus rating reflects

3 5 X1 X3
These same safety technologies also offer BMW its outstanding 94.3% overall score, including an
Brilliance drivers unparalleled comfort. The new 84.1% score in pedestrian protection, far above the
BMW iX 3 offers Personal Co-Pilot driver assis- 65% score required to achieve a five-star rating. In
tance, which includes an active cruise control addition, the Driving Assistant Professional system
with a Stop & Go function to maintain maximum of the 3 series scored Very Good in the European
New Car Assessment Programme (Euro NCAP), in
94.3 %
comfort and safety during critical or monotonous The all-new BMW 3
recognition of the system’s high level of assistance series obtained the
traffic situations. The Parking Assistant Plus with
BMW 3 Series competence and comprehensive safety backup that highest overall score
BMW 5 Series BMW X1 BMW X3
Reversing Assistance makes parking easier than among all vehicles
Top B-class Luxury Sedan Top C-class Luxury Sedan Top A-class Luxury SUV Top B-class Luxury SUV covers system failure warning, unresponsive driver tested by CATARC in
Top PHEV Sedan ever, and enables safe reversing in narrow lanes or
intervention and collision avoidance. the 2020 C-NCAP.
alleys and similar situations.

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LIMITING HAZARDOUS MATERIALS ENSURING CUSTOMER HEALTH "OEMs should focus

A key element of product safety is limiting BMW Brilliance is committed to providing on issues that could
the use of hazardous materials. Through- a healthy and comfortable interior for pas-
have a direct impact
out the entire lifecycle—from development sengers by reducing Volatile Organic Com-
on consumers, such as
to use, rec ycling, and disposal — B M W pound (VOC) emissions, improving interior
Brilliance adheres to the most stringent air quality, and minimising interior noise. interior materials safety."
national and international regulations on From the beginning design stages of our — BMW customer
hazardous material management. products, our VOC management flow sets
multiple inspection points to adhere to the
We adhere to EU regulations under Di- BMW Group specifications on VOC emis-
rective 2000/53/EC and REACH, China’s sions from interior components, including
GB/ T 30512 Requirements for Prohibited seats, carpets, and instrument panels.
Substances on Automobiles, and other rel-
evant international and national standards. All BMW Brilliance vehicles comply with
We are observing the proposed changes interior air quality requirements of GB/ T
to GB/ T 30512, which would expand the 27630, and we continue to work to exceed
number of prohibited substances to include those regulations as well as customer ex-
asbestos and polycyclic aromatic hydro- pectations. In 2020, we collaborated with
carbons (PAHs), and we already control the seat suppliers to reduce VOCs in the foam-
limits of all hazardous materials covered ing materials through optimising material
in the proposed changes throughout our formulations, and conducted on-site odour
parts and components. In 2020, our new testing at our component suppliers’ facili- BMW Brilliance strives to bring a premium experience to our customers.
Material Database System deployed, which ties. By working with suppliers to improve
allows for even more effective material data surface materials and reduce odour in seats
management, including identifying prohib- and door panels of the BMW 3 Series, our SERVICE QUALIT Y
ited materials and hazardous substances VOC test scores improved noticeably.
throughout a vehicle’s lifecycle.
Just as we make every effort to create the highest-quality HIGHEST SERVICE STANDARD AT DEALERSHIPS
products on the market, BMW Brilliance strives to be known BMW's dealer network plays an important role in connect-
as the industry leader in service quality. We have created a ing the customer experience from online to offline, and en-
customer-centric approach to maintaining and improving the suring that the premium service quality they offer lives up to
service we offer. The premium customer experience we seek the BMW standard. We ensure that every dealer meets the
to create delivers a unique, personalised ecosystem that in- 10 Promises for premium customer service, including con-
tegrates digitalisation inside as well as outside the vehicle. venient parking, a warm welcome into a clean and elegant
environment, professional consultations, and much more.
CREATING PREMIUM CUSTOMER JOURNEY
We have developed a seamless, unified customer journey These 10 Promises are involved in various business stand-
that connects individuals with the BMW brand across all ards of dealers' operations that every BMW dealer must
customer-facing platforms and spanning vertical and par- meet, such as SPC, APA, and Retail Standards. These
PEACEFUL INSIDE PROMOTING DRIVING SAFETY standards detail the expectations that shape customers’ ex-
allel business units. Empowered by a digital transformation
To minimise interior noise for the new BMW We design and manufacture BMW vehicles for maximum safety, but even the that breaks through the barriers of data integration, cus- perience when visiting a dealership, and dealers complete a
iX3, we collaborated with tyre suppliers to best-designed vehicles operate only as safely as the driver’s skills allow. The tomers are able to connect at every touchpoint, whether rigorous audit that evaluates every aspect of a dealership’s
develop specialised standard (non-run-flat) BMW Driving Experience China programme has been developed to offer safe- operations, including sales process quality, aftersales pro-
online or offline, with the company and BMW products. In
tyres, reducing road noise while maxim- ty-focussed training courses that allow participants to respond to a wide range
2020, we launched a strategic collaborative partnership cess quality, and the overall state of the customer-facing
ising tyre safety. The back of the vehicle is of road emergencies. After learning driving-safety tips and tricks to correctly as-
with Alibaba, where we developed a closed-loop E2E, O2O areas of the dealership as well as the repair facilities. Ensur-
equipped with soundproofing designs such sess and identify critical situations, participants get to experience a number of
e-commerce solution to improve user experience. Among ing our dealers live up to these standards helps provide the
as sound dampening mat to reduce noise real-world situations, guided by an elite team of BMW driving trainers, to learn to
from the E-motor, creating a peaceful driv- handle their BMW vehicle with confidence and pleasure. In 2020, 17,020 partici- the other customer-facing digital touchpoints launched in premium experience that BMW customers expect.
ing experience. pants took part in our Driving Experience training courses and events. 2020 include the brand-new My BMW app, BMW E-Mall, a
live broadcast feature, and a virtual showroom that brings
the BMW experience directly to customers.

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Our customer-centric approach to deliver our promise of service quality

1 1. 2. 3.

» Customer Experience Customer Satisfaction Service Improvement

– Digital Transformation – BMW Service – Customer Board Platform

– My BMW App Experience Ambassador – Best Practice Sharing
– Online Community – Joy Index – Dealership Audits
– Network Transformation – BMW Training Academy
– Retail Service Standards – Dealership Award
Customer
»

Centricity

Connect customers at every Collect real and direct customer Seek continuous improvement
3 2 touchpoint to deliver a unique, feedback. The percentage of through regular meetings,
personalised and premium negative customer feedback enhancing service standards,
customer experience from fell from 10.9% in 2018 to audits, comprehensive training,
» online to offline. 8.0% in 2020. and performance recognition.

Another way that BMW Brilliance empowers dealers is China Fit features, such as Community, Membership, and quality as well as tools and best practices for daily opera-
through facilitating the adoption of digital and smart solu- e-Commerce, that connect the online and offline experience tions, and by the end of the year, 40 additional dealers had
tions, including continuing to develop the Dealer Mobile and strengthen customers’ brand connection. joined the Customer Board project, bringing the total to 245. 2020 CUSTOMER EXPERIENCE AWARDS
Office experience. By digitalising paper-based customer
Each year, we recognise the achievements of the top BMW Bril-
interactions in sales and aftersales service, customers ex- CUSTOMER SATISFACTION & SERVICE EVALUATION The BMW Ser vice E xperience Ambassador programme liance dealerships; this year, the Ningbo dealerships earned the
perience a smoother, more pleasant dealer visit. In order to gauge the impact of all of our efforts to improve was launched in 2019 as an innovative approach to collect- award through their comprehensive efforts to put customers
and optimise the customer experience, and to ensure that ing real, direct customer feedback. Customers can access at the centre of everything they do. The dealerships created a
In 2020, we continued the Network Transformation Project customer satisfaction remains best in class, we have de- the feedback questionnaire by scanning QR codes at deal- series of engagement activities related to automotive service,
that launched in 2019, a comprehensive effort to revitalise veloped multiple channels to help dealerships engage and erships as well as through digital platforms such as the offi- including a mock car-painting service and lessons on how to
every BMW Brilliance dealer, inside and out, with new de- measure customer satisfaction. Dealers can use a BMW cial BMW Brilliance WeChat account. The programme offers gauge proper tyre pressure. The Ningbo dealerships also de-
signs, product presentation, interactive experiences, and Brilliance communication platform to directly engage with dealers a holistic evaluation of their performance from veloped a number of customer-focused activities to engage

more. As of 2020, the Network Transformation Project has other dealers to share best practices with each other and multiple perspectives, and provides a much broader base customers while their vehicles are being serviced, including a
reading club, fresh baked goods and coffee, family-friendly
reached 119 dealers across China. offer feedback to our company. Through regular meetings of customers from which to gauge experiences. We share
activities, and much more. We applaud the customer-centred
with dealer partners, we are able to connect internal depart- daily and monthly customer feedback summary reports with
approach and innovative spirit of our award winners.
VIRTUAL EXPERIENCE AND COMMUNITY ments and establish protocols to address cross-functional dealers that help them identify areas of improvement.
Our digitalisation efforts extend to BMW Brilliance custom- issues and improve dealer performance.
ers and fans as well: A key aspect of the customer-centric 2021 OUTLOOK
approach to our operations includes leveraging digital tech- One way we measure customer satisfaction is through the In the coming year, BMW Brilliance intends to continue to Even as we extend our product-quality work, BMW Bril-
nology and innovation to create value for customers while Joy Index, which monitors dealer performance in sales and advance our industry-leading quality programmes for prod- liance will keep the customer at the centre of everything we
strengthening the social brand experience and personalis- aftersales services to track improvements over time and uct quality as well as service quality. We sustain our efforts do. In 2021, we will extend our new customer-facing digital
ing communications with customers. In 2020, we launched align services with customers’ needs and expectations. to strengthen our total quality management protocols to en- touchpoints to reach more BMW customers and fans, bring
an all-new My BMW app, offering a centralised digital space Dealer performance increased significantly in 2020: The sure that every BMW vehicle meets our own high standards our Network Transformation Project to even more members
to provide value-added services and community for current percentage of negative customer feedback fell from 10.9% and our customers’ high expectations. We will continue to of our BMW Brilliance dealer network, and invite more deal-
and potential BMW customers as well as fans. The app in 2018 to 8.0% in 2020. convene a series of product safety and conformity seminars, ers to join our Customer Board Platform.
includes an intelligent connection to BMW cars, updates so that the best minds at BMW can continue to share ex-
on the latest product and company information, and social In 2020, more dealers adopted the Customer Board Plat- pertise and experience around product quality. And we will By continuing our dual focus on product and service quality,
networking with the BMW Brilliance community. In addi- form, our second customer-satisfaction tool. The platform continue to explore the adoption of AI and 5G technologies BMW Brilliance will be well-positioned to thrive in 2021 and
tion, the China-only version of the app includes a number of provides regular dealer performance reports around service to continue to improve our processes and product quality. beyond.

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3.2

C I RCU L A R I T Y R AW MATERIALS BATTERY RECYCLING

Far exceeding national regulations, BMW Brilliance has In 2020, we made significant progress on advancing
adopted a circular economy approach to raw materials. the HVB recycling ecosystem. Our partners in the HVB Lifecycle Management and Building HVB Recycling Ecosystem

We have made dedicated efforts to increase the amount of BMW Brilliance dealer network and our R&D centre
recycled materials in our products by working closely with help us continue to recycle and repurpose end-of-life
suppliers and recycling partners. and defective HVBs.
"Secondary first.
The use of steel and aluminium are responsible for a large ADVANCING HVB RECYCLING PATHWAY 1 > 2
Resources are scarce and >
share of our CO2 emissions, and therefore offers a signifi- The HVB recycling process now includes two collec-
valuable. Circularity is both an cant opportunity to reduce our footprint. By returning scrap tion models. In some instances, dealerships collect
aspiration and a promise for us." aluminium and steel to manufacturers for use as secondary defective batteries and our logistics supplier delivers

>
raw materials, not only are we reducing our impacts, but we them to a licensed facility for dismantling; additional- 3
are also able to extend our sustainability efforts to more el- ly, in order to fulfil the government requirement and
­— Oliver Zipse, Chairman of the ements of our supply chain. explore new business models, we set up the coun- HVB
Board of Management of BMW AG try’s first professional HVB recycling service outlet in LIFECYCLE
CLOSING THE LOOP Shanghai, which integrate collection, sorting, storage,

>
In 2020, we created our first closed-loop system in 17 packing, and relevant services before the HVBs are
4
years by working with our steel-manufacturing partners to delivered to a licensed facility for dismantling.
incorporate scrap steel back into their manufacturing pro-
cesses, and achieved an accumulative recycling volume of In 2020, BMW Brilliance recycled 4,347 HVBs— a 6
>
i
>
45,000 t in the loop. By providing clear guidance and strat- 33.3% increase over 2019—weighing 98,261 kg, and >
5
egy to these suppliers, we were able to help them increase achieved a 98.5% recycling rate for nickel, cobalt, and
the amount of secondary steel used in the smelting process manganese. ii
v HVB
by 3% while still meeting our technical and performance RECYCLING
requirements. We have also begun to return our scrap alu- PILOTING SECONDARY UTILISATION OF HVBs

>

>
minium to one potential supplier for recycling and reusing, This year, we launched a pilot project to repurpose iii
iv
and will continue to explore the possibility of incorporating end-of-life HVBs. After disassembling and processing
repurposed aluminium in our raw materials production for batteries that can no longer power a BMW automobile, >
coils and ingot. we have developed a method to use those batteries
to power pallet trucks in our plant workshops, thereby
For BMW NEVs, we are working with our Tier-1 and Tier-2 extending the life of the battery before dismantling
suppliers for HVBs to use 100% recycled aluminium, at least and recycling and using clean energy to power these
50% secondary material for cobalt and nickel, and 100% pallet trucks.
regenerative energy for BMW’s Gen5 HVB production. HVB Recycling Process HVB Lifecycle Management
at BMW Brilliance at BMW Brilliance

In order to achieve a truly sustainable busi-

i. HVB diagnosis. 1. Cell production at supplier.
ness, we must strive to eliminate waste
ii. Safety check and HVB 2. HVB production at our
across our operations. One important way
categorisation. HVB Centre.
that BMW Brilliance is achieving this goal
iii. HVB coding collection. 3. NEV production.
is by developing innovative approaches to
repurposing end-of-life materials in new
+3 % 4,347 First HVB recycling
iv. Safety storage and 4. NEV sales and utilisation.
service outlet transportation.
ways within our products. From raw ma- 5. Aftersales HVB
Closed the loop for steel Use of secondary steel Pieces of HVBs recycled in Shanghai
v. Dissembling for recycle / S maintenance & repair.
terials to batteries to parts to packaging, econdary use.
We established the 1st closed- in the smelting process by our a 33.3% increase was set up to collect, sort, 6. HVB collection and
our company has made great progress in loop system for steel with our supplier while meeting BMW over 2019, with a total store, and package defective recycling.
increasing our circularity this year. supplier in 2020, with 45,000 t technical requirements. weight of 98,261 kg. and end-of-life HVBs.
recycled in the loop.

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PARTS REMANUFACTURING GREEN PACK AGING

By expanding the scope of our parts-recycling practices, Continuing to maximise the utilisation of the bins has been
digitalising our reverse logistics systems, and increasing a core focus of our circularity work. In 2020, we launched a
our parts-remanufacturing capacity, BMW Brilliance has collaboration with packaging suppliers to explore the possi-
achieved significant progress in circularity. bility of recycling and remanufacturing bins in order to drive
material circularity further up the supply chain.
In 2020, we expanded our remanufactured parts portfolio
with the launch of three more parts categories—Electrical For steel bins, our new pilot programme with three bin sup-
Power Steering (EPS) gear, head units, and mechatronics— pliers aims to evaluate the feasibility of recycling those bins
and we released more material numbers in the Transmission for remanufacturing, and we will roll out the programme fur-
product portfolio to serve more BMW car models and kicked- ther in 2021. For non-steel bins, made of expanded polypro-
off the development of remanufactured transfer case. Mean- pylene (EPP), we have begun to investigate with our Tier-1
while, we are improving our capability of core collection to and Tier-2 suppliers the possibility of recycling and reusing
facilitate with the enriching of remanufacturing product line. these bins.
In 2020, we enlarged our core collecting scope to cover cus-
tomer pay parts besides regular warranty parts return. In addition to recycling and reusing packaging materials,
we strive to reduce the use of new packaging in the first
Over the course of the year, we collected 108,070 pieces of place by maximising the usability of bins across products
parts weighing over 669 t. Of these, more than 300 trans- and extending their lifespan. In 2020, our engineers worked
missions, 600 steering gears, 2,000 air conditioning com- alongside bin suppliers to standardise and modularise bin
pressors, 100 head units, and 100 mechatronics were put designs; as a result of this project, we released the BMW
into remanufacturing process in just four months. Brilliance Bin Concept Construction Guidelines in May to
detail our requirements for bin design going forward. We
The ReLife Point (RLP), our centralised facility for parts also continue to evaluate similarities between product parts
recycling and removal in Cangzhou, is reaching full func- and are working with suppliers to design existing bins so
tionality in 2020, and we have been improving the overall they can be used across generations of products.
traceability of parts reverse logistics from dealerships back
to the RLP via our transportation hub and spare parts dis- Our rate of returnable packaging usage for local parts transpor-
tribution centres. In May, we launched Encory China Dealer tation remained steady at 98% in 2020, and we continued our
Front-end (ECDF), the parts tracking system to improve the efforts to promote returnable packaging use for imported parts
Steel coils storage at steel supplier's production facility.
transparency of the overall reverse logistics process, pro- as well. The BMW Brilliance bin-sharing and bin-rental pro-
viding parts information, logistics status, and more. gramme, which we rolled out in 2019, expanded in scope this
year as we engaged more bin suppliers and service providers. 2021 OUTLOOK
In 2020, we in total recycled 203.3 t of metal (80% steel and Although BMW Brilliance has achieved tioning compressor capabilities to re-
iron, 20% aluminium), 56.7 t of plastic, and 35.9 t of paper. continued success in advancing our manufacture even more parts. We seek
circularity platform, we recognise that to expand our warranty core collection
much more work remains to be done. scope from 46.5% to 81% to centralise
We intend to continue to explore the recycling, and enlarge the RLP space
opportunities for using secondary al- from 5,000 m 2 to 6,000 m 2 , ensuring
uminium with our suppliers, while also more room for centralised scrapping
seeking circularity opportunities for and recycling. We will also initiate the

»
other raw materials. We aim to expand market communication around the con-

108,070 – EPS
98 % our parts remanufacturing efforts by cept of remanufacturing and removal.
– HEAD UNITS BMW Brilliance Bin Concept Rate of returnable launching new categories of parts, For our circular packaging efforts, we
Pieces of parts – MECHATRONICS Construction Guideline packaging usage starting production of remanufactured will explore the potential to further ex-
transfer gears and extending our trans- pand the scope of our bin-sharing and
Collected for recycling in 2020, 3 new parts categories launched Released in May 2020 to guide bin design for local parts
with a total weight of over 669 t. in 2020 for remanufacturing. to enable cross-generation usage. transportation. mission, mechatronics, and air condi- rental bin programmes.

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BMW Brilliance has established a variety of channels

Environmental governance and steering at BMW Brilliance
to foster an environmental mindset. The Environ-
3.3 mental Steering Committee (ESC) offers a well-es-
Green Plant Circle
R E S P ON S I B L E tablished structure with clear designation of respon-
sibilities for steering and execution, which engages
Comprises plant directors and the head of each technology,
responsible for decision-making on environmental issues

E N V I RON M E N T, H E A LT H
and production activities.
employees from management circle to the front-line
plant level. The ESC effectively steers our environ-

←
←
& S A F E T Y M A N AGE M E N T
mental target-setting and monitoring, project planning
and implementation, and performance evaluation. Environmental Steering Committee
Cross-functional environmental target steering
and monitoring, project planning and performance
In addition, plant directors and the head of each evaluation.
technology led the green plant circle, which played

←
←
an active role in environmental protection. We are
A truly sustainable company is one exploring additional enablers and opportunities, such Plant Level
that takes responsibility for its impacts as energy-saving measures and zero waste practices, Project implementation at various departments and
workshops. Ideation of new concepts and measures.
which will generate a number of additional ideas for
and works to minimise negative
environmental protection.
impacts—on the environment, on our
workforce and customers, and on the To responsibly manage the risks and uncover the strategy in advance to fulfil the latest stakeholder re-
communities where we live and work. opportunities inherent in our business, the BMW quirements and expectations.
Brilliance approach covers the whole life cycle of the
projects. The environmental management team is Site compliance management is also our highest pri-
involved during the project design phase to analyse ority. Our management team has developed targeted
In addition to adopting the most advanced and
the environmental aspects and impacts to avoid programmes for on-site inspection. “Early detection,
sustainable production practices, ensuring a safe
foreseeable risks and embed environmentally friend- early resolution, and frequent sharing” is our principle
workplace for employees is our fundamental cor-
ly concepts as early as possible. During the con- for on-site work.
porate responsibility. By managing occupational
struction phase, we monitor the potential risks and
health and safety risks in our own operations, we
ensure compliance together with the project team. DIGITISING ENVIRONMENTAL TRAINING
can protect our employees, our most valuable
For small-scale project modifications, the project We aim to keep all employees well-informed on the
resource, from work-related injury and illness. At
team collaborates with the environmental manage- environmental impacts most relevant to their duties
BMW Brilliance, we also take responsibilit y for
ment team to prioritise environment-friendly thinking through regular trainings. In 2020, we developed
helping our dealers and suppliers minimise risk and
early in by completing a risk identification and eval- three new e-learning courses to advance their ed-
maximise safety in their operations. The Environ-
uation checklist, which highlights 12 critical topics, ucation: Two courses were designed for the core
ment, Health and Safety Protection Activity (EPA)
including wastewater discharge, air emissions, noise environmental team, on identifying environmental as-
programme has set an industry benchmark as a
generation, groundwater usage, and environmental pects and impacts of projects and an environmental
holistic supplier risk-management practice, and we
compliance risks. emergency exercise; one course, on training for waste
work to empower our dealers to manage the EHS
classification, was open to all associates. In 2020,
Body painting process at our Paint Shop. risks associated with their daily operations.
KEEP ABREAST OF REGULATORY CHANGE 560 associates joined the e-learning courses; for
The environmental management team also works in waste classification, we also conducted face-to-face
close collaboration with the compliance team to stay trainings led by section leaders and environmental
RESPONSIBLE EHS OPER ATIONS AT BMW BRILLIANCE up-to-date on regulatory changes; for instance, in management team.
2020 the two teams worked together to deliver up-
dates on environment-related laws and policies and In addition to formal learning programmes, our en-
OUR ENVIRONMENTAL MANAGEMENT vironmental Management Manual with a detailed associated risks. A total of 55 items were identified vironmental management team conducts initiatives
As a responsible company, we strive to minimise description of the company’s environmental man- as a result of envirionmental laws and regulation up- and campaigns designed to foster awareness and
our environmental footprint during production. All agement updates. For example, we completed the dates, and the evaluation result was released by using drive behavioural change among employees through
of our production plants are certified to the ISO environmental risks and opportunities evaluation the company channel of Legislation Express. Espe- on-site interaction, pop-up in intranet, and mobile
14001:2015 Environmental Management System process within our environmental aspect evalua- cially for the key areas of environmental protection push notifications through the JoyChat app. Among
standard. With the increased requirements on en- tion and compliance-monitoring procedures; we in the 13th Five-Year Plan—VOCs and waste man- the campaigns we promoted in 2020 included notifi-
vironmental protection from our diverse stakehold- enlarged the scope of the change management agement, where there are significant amendments cations about new standards for waste classification
ers, in 2020 we updated the BMW Brilliance En- process for normal and significant projects. to legislation and regulations in 2020, we map out a and around the importance of biodiversity.

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VOC emissions per vehicle produced

REDUCING VOC EMISSIONS keeps detailed records of the waste we hicle we sent for disposal fell to 2.99 kg in kg/vehicle
A key part of our green production produce, and we meet or exceed the per vehicle produced, a nearly 60.0%
efforts includes goals to reduce VOC requirements of all waste-management reduction from 2019. -3.8 % 0.6 0.54
0.56
emissions in our products and in our regulations. For instance, the new Law Reduction in VOC emissions per 0.52
0.50
facilities. In 2020, we launched an on- of the People’s Republic of China on the WATER AND WASTEWATER vehicle produced from 2019.
0.40
line VOC monitoring system in Paint Prevention and Control of Solid Waste MANAGEMENT
Shop to enable our teams to monitor Pollution requires producers to be able We are striving to reduce our water Key actions in 2020:
0.3
VOC emissions in real-time and iden- to trace hazardous waste back to a spe- consumption and continue to improve – Online VOC monitoring system
launched in Paint Shop;
tify hotspots. We continue to expand cific plant and a responsible individual. our wastewater management. We
– Expanded the use of water-based
the use of water-based solvents, and use reclaimed treated wastewater
solvents;
in recognition of our industry exper- In 2020, we advanced several initia- from our on-site treatment plant for
– Upgraded VOC abatement
tise, the BMW Brilliance team was tives to reduce our waste volume and landscaping and cooling purposes, as facilities in Plant Tiexi. 0.0
2016 2017 2018 2019 2020
invited to engage in the evaluation increase the amount of waste we can well as dust control for the Tiexi New
process for the Liaoning provincial recycle and repurpose. We fully rolled Plant project. In 2020, the waste-
VOC emission standard for industrial out our sludge dehydration programme wat er r ec ycling s y st ems at P lant
coating processes, which went into at Plant Tiexi in 2020, which decreases Tiexi and Plant Powertrain recycled
effect at the end of 2019. the water content of sludge by 40%, re- 154,090 m 3 of water. Plant Dadong in
ducing sludge generation by about 1 kg 2020 reclaimed 39,832 m 3 of water;
In recognition of our industry expertise, per car produced. We will roll out a simi- we are currently expanding the facili-
Waste for disposal per vehicle produced
the BMW Brilliance team was invited to lar programme at Plant Dadong in 2021. ty’s water reclamation capacity which in kg/vehicle
we expect will increase our capacity
-60.0 %
engage in the evaluation process for the All of our domestic waste is delivered
latest Liaoning provincial VOC emission to domestic waste treatment plants for by 800 m 3 per day. Our wastewater 8.05
7.43 7.47
standard for industrial coating process- incineration to generate power. Also quality monitoring process combines Reduction in waste for disposal 8.0
real-t ime monitor ing w it h regular per vehicle produced from 2019. 6.42
es. Because of our early involvement in 2020, we expanded our partnership
in the implementation of this environ- with a cement factory to recycle waste lab testing to ensure our wastewater
mental standard, BMW Brilliance was sand for use in raw materials to produce meets regional and national quality Key actions in 2020:
standards. – Fully rolled out the sludge dehydration
well-positioned to meet the require- cement, recycling 12,785 t of waste 4.0
programme at Plant Tiexi; 2.99
ments of the rule. As of the end of 2020, sand, and we are in discussions with
– Partnered with cement factory and
we have updated our existing VOC our partner to deliver additional waste In addition to water reclamation and recycled 12,785 t of sand & sand dust;
abatement facilities in Plant Tiexi. For as our operations expand in the coming recycling, all BMW Brilliance facilities – Undertook evaluation of waste service
the Tiexi New Plant and Plant Dadong years. consistently take routine water-effi- and disposal suppliers.
0.0
Extension projects, we will install and ciency measures, including the use 2016 2017 2018 2019 2020
use the state-of-the-art VOC treatment All potential BMW Brilliance waste han- of water-efficient fixtures and post-
facilities, which we expect to significant- dling suppliers undergo an extensive ing water-saving reminder signage
ly reduce our VOC emissions. In 2020, evaluation process, including a detailed t hroughout product ion and of f ice
we reduced our per-vehicle VOC emis- review of the supplier’s qualifications for spaces. We continued to make pro-
sions by 3.8% from 2019 to 0.50 kg per waste treatment and on-site assess- gress in reducing the water required
vehicle produced. ments of their management status and to produce each vehicle. In 2020, we
capabilities to find the most environ- consumed 1.97 m 3 of water per vehi- Water consumption per vehicle produced
cle produced, a 17.9% reduction from in m3/vehicle
MINIMISING WASTE mentally friendly, low-impact treatment
By improving our waste-flow tracking methods. For existing suppliers, we the previous year; we generated 0.44 -17.9 % 3.0 2.68
and enhancing the traceability of our audit their documentation and continu- m 3 of process wastewater per vehicle 2.58 2.47 2.40
Reduction in water consumption
hazardous waste, we are better able ously perform on-site audits, ensuring produced, maintaining the rate we per vehicle produced from 2019.
1.97
to continue to reduce and responsi- the valid disposal of the waste. In 2020, achieved in 2019. Next we will con-
bly manage the waste generated by as a result of adjustments in waste duct a water balance investigation to Key actions in 2020:
identify additional water-saving op- 1.5
our operations. The BMW Brilliance classification and improvement of the – 154,090 m3 of wastewater recycled at
waste treatment information system treatment processes, the waste-per-ve- portunities. Plant Tiexi and Plant Powertrain;
– 39,832 m3 of water reclaimed, and
water reclamation capacity under
expansion at Plant Dadong;
0.0
– Continuous application of water
2016 2017 2018 2019 2020
efficiency measures.

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OCCUPATIONAL HEALTH & Representative to organise and further safety risks, including physical, chemi- process, and to familiarise employees Our JoyChat platform offers another
OHS management SAFETY MANAGEMENT the operation of the OHS management cal, and ergonomic hazards associated with relevant procedures and require- channel for safety communications,
accreditation earned
by BMW Brilliance:
At BMW Brilliance, we believe that en- system, and advance a culture of safe- with different job functions, and other ments. trainings, and tests. And the BMW Bril-
suring a safe workplace for employees ty throughout the company. The Des- potential risks in the production pro- liance Trade Union is involved in regular
ISO 45001:2018 is our fundamental corporate responsi- ignated OHS Management Coordina- cess. To address these risks and max- OHS TRAINING AND safety management reviews. In 2020,
OHS Management System bility. Our Occupational Health & Safety tor, a senior manager from the Safety imise employees’ long-term health and COMMUNICATION we received no complaints or penalties
(OHS) Management System has been Management Department, serves as performance, we have implemented ef- To ensure that every BMW Brilliance from public or local authorities regarding
WORK SAFETY comprehensively developed in accord- the second-in-command of this opera- fective countermeasures, and series of employee knows that safety is their re- OHS management in our plants.
STANDARDISATION ance with the BMW Group Health & tion, supporting the OHS Management activities and programmes on the basis sponsibility, enhance safety awareness
Level 2 Certification Safety policy, U.N. Global Compact prin- Representative in sustaining this im- of our OHS Management System. and knoeldge, and promote a positive BMW Brilliance provides annual health
ciples, the ISO 45001:2018 standard, portant safety work. safety culture, we conduct a number of checks for all employees, including
the International Labour Organisation’s We use Safety and Ergonomics Risk trainings and educational programmes comprehensive health evaluation sum-
Declaration on Fundamental Principles In 2020, BMW Brilliance earned ac- A ssessment (SER A) to assess the to build a comprehensive understand- maries. For workers who are exposed
and Rights at Work, and all applicable creditation for fulfilling all requirements physical, mental, work environment, ing of safety knowledge among our to OHS hazards, we include specific
occupational health and safety laws of the ISO 45001:2018 standard from and work place-specif ic risk s, and employees. Each year, in accordance assessment items in these health
and regulations in China. the International Organisation for stresses throughout our operations with legal requirements, our compa- checks to evaluate any potential for oc-
Standardisation, as well as the Work where we make optimisation accord- ny’s senior leadership and safety man- cupational health-related illnesses.
The company’s senior leadership takes Safety Standardisation Level 2 Cer- ingly. We also conduct industrial hy- agement staffs complete the Safety
overall responsibility and accountabil- tification issued by the Emergency giene monitoring at each of our plants & Health Responsible Management
ity for preventing work-related injuries Management Department of Liaoning every year, evaluating and document- training delivered by a government-au-
and ensuring safe and healthy work- Province. Our 2020 accident frequency ing employees’ potential exposures to thorised training organisation.
places for all employees. Our leader- rate was 0.09 per one million hours occupational health hazards. Based
ship team has developed OHS policies worked, a 47.1% reduction from the on the monitoring results, we take ef- We deliver Three-Level Safety Educa-
and objects to align with our strategic 2019 level of 0.17. fective countermeasures to protect our tion to all new associates, job transfer
goals and ensures the effective opera- workers. In addition, as the increasing associates, and return-to-work as-
tion and continual improvement of the OHS HAZARD & RISK average age of our workforce brings sociates, and Four-New Education
system. The CEO appoints the Head MANAGEMENT new health challenges, we implement programme to related associates to
of Security, Occupational Safety and As a company engaged in manufac- the Today for Tomorrow > NEXT pro- that keep them informed of the safety
Services Dpartment, as the Occupa- turing processes, our workforce faces gramme focussing on musculoskele- practices about new processes, new
tional Health and Safety Management a number of occupational health and tal disorders to help employees stay technologies, new materials, and new
healthy and perform well with increas- equipment. Associates working in spe-
ing age. cialised positions also receive topical IMMERSIVE SAFETY TRAINING
Accident frequency rate safety training on personal protective AT TIEXI NEW PLANT
-47.1 % per one million hours worked*
To enhance wor k place safet y, we equipment, Lockout/Tagout, chemical
The newly established safety training
conduct regular safet y inspections safety, confined space safety, and more.
Continuous improvement 0.6 centre at the Tiexi New Plant project site
0.54
in accident frequency rate to identif y and rectif y employee's offers workers an immersive learning
from 2019. 0.43 unsafe behaviours, equipment and In addition to the regular trainings our experience. Through simulation-based
facilities' unsafe condition, as well as associates complete, we have devel- safety training modules, workers are
0.28 other potential safet y risk. For the oped a number of channels for OHS in- able to develop better understanding
0.3 formation communications and employ- of job-specific safety practices. Upon
special equipment used in our plants,
0.17 ee consultations. During Safety Month, completing all training programmes,
we conduct annual inspections and
0.09 we gave recognition to associates workers need to pass a safety test
engage licensed suppliers for periodic
involved in exceptional safety activities. before gaining access to the construc-
equipment maintenance to ensure
tion site. The project team also arranges
0.0 compliance with national regulations. Throughout the year, we involve asso-
2016 2017 2018 2019 2020 safety drills to help workers respond to
Each year we also carry out on-site ciates in conducting safety inspections
emergencies such as falling accidents in
emergency drills, to test and review the and safety improvements through our
* The scope only covers directly contracted employees in the production plants. It is calculated by the number of a timely and effective manner.
accidents with one day lost time or more, divided by the total working hours (in millions) of the year. efficiency of the emergency response Value-added Production System (VPS).

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ADVANCING EHS PERFORMANCE IN THE SUPPLY CHAIN

Just as BMW Brilliance seeks to be a leader in occupational health and safety in our own operations, we 2020 On-site supplier EHS assessment 2020 On-site supplier EHS assessment
- 1st round result: - Final round result:
are equally committed to building a first-class supplier network in China that adheres to our high stand-
ards of responsibility and accountability in managing EHS risks in their own operations and supply chains.
←
SUPPLIER EHS MANAGEMENT SUPPLIER RISK ASSESSMENT Corrective
actions
We have established a concrete and holistic sup- AND PERFORMANCE
plier EHS risk management system through our By the end of 2020, the EPA has completed 269
EPA programme that has set a benchmark for EHS on-site supplier assessments and 846 supplier
within our industry. self-assessments. We have identified more than 50
high-risk production activities or technologies across
Building on the work we began as early as 2013 with different tiers of suppliers in different sectors, all
our Supplier Risk Management (SRM) programme, specific to the auto industry in China. As a result of 2020 "Challenge Round" supplier self-assessment 2020 "Challenge Round" supplier self-assessment
the EPA is a thorough risk assessment process to this work, we have established a solid supplier EHS - 1st round result: - Final round result:
identify, analyse, and rectify potential EHS risks risk database that forms the basis of integrating EHS
throughout the supply chain, from Tier-1 to N-Tiers, topics in our overall supplier management activity—
along with 10 processes including risk identification, a first for the BMW Group globally.
policy trends, process optimisation, database infor-
mation management, training, audit, early warning,
and fast response. The EPA programme is intended From the inception of our EPA programme to the end of
←
to strengthen a partnership with our suppliers to 2020, we have made the following progress: Corrective
help enhance joint EHS management and effec- actions

tively improve all parties’ 269 On-site supplier assessments completed.

environmental and risk
“BMW is the first OEM that 846 Supplier self-assessments completed.
awareness.
has realised EHS management 50+ Industry-specific high-risk activities identified.

throughout the supply chain Our approach provides

10 Risk management processes established.
from Tier-1 to N-Tier.” low-risk suppliers with a
self-assessment checklist
— A BMW supplier
plus a “Challenge Round,”
In 2020, our third-party auditors conducted 87 High Risk Medium Risk Low Risk
during which we ask
onsite EHS audits of key suppliers. We also initi-
them to provide additional evidence supporting
ated 170 suppliers to conduct “Challenge Round”
their self-assessment results. High-risk suppliers
EHS self-assessments. Following the initial round We also optimised our “Challenge Round” approach in Additionally, in 2020 we enhanced our training ap-
engage with an independent third party for an on-
of assessment s, corrective and preventative 2020 to better identify potential risks among our sup- proaches, developing 15 EHS training videos to share
site assessment of potentially high-risk production
actions were implemented and most suppliers pliers. Suppliers’ self-assessments receive further re- on our JoyChat platform, allowing suppliers to con-
activities and technologies. For all suppliers, we
demonstrated significant improvements in reduc- view from a Challenger, who can re-score each item in tinue their safety education at any time. The topics
offer support to help them implement any correc-
ing risk levels from high and medium to low. By the the self-assessment checklist if any initial results are included relevant laws and regulations on fire safety,
tive actions needed and continuously build their
end of 2020, we exceeded our target of helping incomplete or suspicious. If a Challenger believes that noise, waste management and other critical EHS
safety capacity. In addition, the digital Environ-
the top 10 high-risk suppliers achieve an EHS im- there are high-risk aspects of a supplier’s operations, topics.
mental Risk Management System (ERMS) enables
provement rate of 20%. we initiate a third-party assessment to verify find-
us and our suppliers to respond earlier and better
ings and chart an action plan. Through this process, In recognition of our efforts in building sustainable
to potential EHS risks related to weather events,
we help strengthen our suppliers’ accountability and supply chain, BMW Brilliance received the 2020
safety incidents, policy changes, and more.
ownership of their EHS management practices. "UNGC China Network Best Enterprise Practices"
award from the United Nations Global Compact.

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EMPOWERING DEALER PARTNERS

IN EHS MANAGEMENT

Dealers are our partners in every aspect of our business, and we aim to encourage and
empower all our dealers to build capacity and awareness around managing the EHS
risks in their daily operations.

Our key approaches include setting performance requirements by integrating EHS-re-

lated compliance requirements such as hazardous waste management into our Retail
Standards, enabling toolkits such as the EHS Manual and EHS Self-checklist we pro-
vide to guide dealers as they identify and control risks in compliance with legal require-
ments, and offering capacity-building workshops, trainings, and the Dealer EHS Help-
desk to support their day-to-day EHS management.

Due to the COVID-19 pandemic, we have shifted our priorities from conducting in-per-
son EHS workshops to updating the EHS Manual and creating online training materi-
als. The newest editions of the EHS Manual and Self-checklist include new regulatory
standards related to NEV servicing, particularly around storage management for end-
of-life batteries and safety precautions for NEV maintenance. We published step-by-
step training videos on EHS management on our JOY Learning app for dealers to use
as needed.

2021 OUTLOOK we are able to help these companies

In the coming year, the BMW Brilliance increase t heir ow n saf et y mindset
E HS team will optimise hazardous and cascade safety practices farther
waste tracking and handling and work throughout the industry.
to increase the variety of environmental
awareness-fostering programmes and We w ill co nt inu e t o w o r k w it h o u r
training events we host. We will also dealers in 2021 to complete the roll-
continue to develop new e-learning out of the EHS self-assessment and
courses throughout 2021. enabling toolkit to all dealers, and pro-
vide corresponding online and offline
For supplier s, we have shif ted our capacity-building activities throughout
approach from risk control to risk pre- the year. We will further integrate EHS
vention, and in 2021 we will continue self-assessment into Retail Standards
to work with our supply chain partners as a performance requirement under
to internalise and develop their own “business foundations”, and we will
risk-management system. By focus- develop a mechanism to answer dealer
sing on our first-tier suppliers’ efforts questions on EHS self-assessment and
to work with their own supply chains, regulatory requirements.

A servicing workshop of a BMW dealership.

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3.4

BUSINESS RESPONSIBLE SOURCING OF ETHICAL

R AW MATERIALS DEALER PR ACTICES
ACCOU N TA B I L I T Y
Cobalt and lithium are two of the critical raw materials con- Just as we are committed to the highest standards of ethics We monitor a number of potential risks to ensure ethical
tained in the HVBs that help power our NEV fleet. Sourcing in our own operations, BMW Brilliance expects our dealer practices in dealer operations, including anti-competitive
these materials can have social impacts in the countries networks to conduct business in the same manner. practices, anti-corruption and anti-bribery efforts, unethical
where they are mined, particularly in the Democratic Re- behaviour in sales and aftersales services, marketing and
As a company committed to operating respon- public of the Congo (DRC) and adjoining countries; BMW We have developed a comprehensive approach to ensure corporate-identity checks, and data privacy of their custom-
sibly and ethically, BMW Brilliance takes great Brilliance has initiated material-specific sourcing strategies integrity in our dealers’ operations. Before approving a er relationship management. Our senior management also
care to thoughtfully manage every aspect of our to ensure maximum transparency and foster responsible dealer to join our network, we undertake a due diligence conducts regular communication with our dealer partners
business. From how we source the raw materials business practices across our supply chain. process that includes reputational and compliance risks. on ethical business practices.
for our products to how we safeguard our cus-
tomers’ personal information, we are dedicated In 2020, we began sourcing cobalt for the Gen5 HVB cells
to excellence, and we expect our stakeholders to directly from mines outside of the DRC—in Australia and INFORMATION SECURIT Y & DATA PRIVACY
ensure we live up to our high standards. Morocco—and made it available to our HVB manufacturer.
With full transparency over the origin of cobalt, we are able
to minimise the risk of child labour and human rights viola- Stakeholders of all types are increasingly concerned about DATA PRIVACY GOVERNANCE AND MANAGEMENT
tions from sourcing this material. information security and data privacy. BMW Brilliance has BMW Brilliance’s Data Privacy Protection Organisation is
made significant investments in protecting the data of our responsible for the overarching management of data priva-
BMW Brilliance has signed long-term contracts with lithi- customers, employees, and partners. We have implement- cy—from our company, our customers, and our partners.
um suppliers to make the raw materials available for bat- ed cross-functional systematic management programmes The organisation is chaired by our senior vice president of fi-
tery-cell suppliers and their upstream suppliers. As with to comply with national and international cybersecurity and nance as protection officers (DPPO). One of our supporting
cobalt, we began sourcing lithium directly from raw material data-protection regulations and standards, including the DPPOs is a representative from LingYue Digital Information
suppliers to increase traceability within our lithium supply Cybersecurity Law of the People's Republic of China (CSL), Technology, our subsidiary company that is accelerating our
chain. We will continue to ensure that our suppliers control the E.U. General Data Protection Regulation (GDPR) and customer-centric digital transformation.
and mitigate the environmental impacts associated with ISO/IEC 27001 and ISO/IEC 27701.
lithium mining.
INFORMATION SECURITY GOVERNANCE AND
MANAGEMENT AUTOMOTIVE INDUSTRY CSL WORKSHOP
Led by the Steering Committee and Core team with clear
In October 2020, we participated in the Communication
roles and responsibilities, the BMW Brilliance CSL Pro-
SETTING SUPPLIER SOCIAL Workshop on the CSL in Beijing, the first industry-wide com-
gramme provides cross-functional governance to guide the
RESPONSIBILIT Y STANDARDS company in complying with the CSL. The group has estab-
munication platform on cybersecurity jointly established by
government agencies, industry associations, and automotive
lished the CSL Instruction to facilitate the implementation manufacturers. At the workshop, we engaged in discussions
Ensuring that our suppliers adhere to BMW Brilliance’s ex- of the CSL across the company, and is developing KPIs to with experts on cybersecurity review requirements and pro-
pectations for social responsibility is a core aspect of our sup- track progress on implementation. We are working to devel- cess, cross-boarder data transfer and other critical issues con-
ply chain management framework. In 2020, we established op a CSL Library and multiple compliance checklists based cerning the CSL. As a leading automotive manufacturer in Chi-
the BMW Brilliance Supplier Social Responsibility Code of on the legislation’s requirements and standards to comply na, we will enhance communication with industry partners and
Conduct, which we have begun promoting and integrating with the CSL. We are working on implementing CSL re- government agencies on the evolving cybersecurity landscape
quirements via digitalisation tools integrated with the Agile and ensure full compliance with relevant laws and regulations.
across our entire supply chain. The Code of Conduct outlines
how we expect our suppliers to promote social responsibility Working Model and Agile Tool Chain. We are also working
in four areas: people-oriented, ethical business practices, re- on self-assessment of personal information protection, Mul-
sponsible sourcing, and management system. Alongside the ti-Level Protection Scheme (MLPS), and Data Cross-Bor- ISO/IEC 27001
development of the Code of Conduct, we have also expanded der Transfer. We are conducting regular penetration tests, ISO/IEC 27701
the scope of our supply chain social risk assessments and vulnerability scans, and other cyber risk-defence activities, Certification received by LingYue in 2020 for
The BMW Brilliance Supplier Social updated the supplier social audit checklist to integrate Re- and settling security incident management process with the information security management and security
Responsibility Code of Conduct. sponsible Business Alliance (RBA) requirements. IT helpdesk and Remedy system. techniques for protecting data.

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Inside our Data Centre.

"There should be a routine data management

mechanism to protect the interests of customers
and other stakeholders."
— BMW customer

As part of the Data Privacy Protection Organisa- complete our online data privacy protection train-
tion, LingYue brings expertise in proper manage- ing, and every employee is required to re-complete
ment of customer data privacy protection practic- the training every two years. We have developed
es. The Data Privacy Protection Organisation has three levels of CSL training targeting different
developed seven guiding Privacy Principles for our associate levels and functions. In total, 4,955 out
company, that include guidelines for the type and of 5,7 10 associates completed an online Fun-
amount of data we collect, the consent we receive damentals training in 2020, and 494 associates
from individuals before collecting that data, how attended the Technical training sessions to gain a
we use and safeguard that data, and the ways we detailed understanding of the CSL Instruction. In
communicate to individuals about what data we addition, our internal CSL communication platform
collect and how we use it. includes a CSL programme homepage for infor-
mation-sharing as well as an online conference
These guiding Privacy Principles shape our Data and webinar to keep associates up-to-date on our
Privac y Management Process, which is struc- progress in complying with the CSL.
tured around prevention, in-process control, and
post-response management. An integral part of 2021 OUTLOOK
our corporate procurement processes is a Data As we continue to improve our information security
Privacy Impact Assessment (PIA), which business and data privacy programmes, in 2021 we will up-
units conduct with partners and sign a data pri- date our CSL toolkits based on the information we
vacy agreement before conducting business with compiled for the CSL Library. We will also release
them. In addition, the BMW Brilliance Associate a combined information securit y/cybersecurit y
Handbook and dealer contract both include clear instruction that covers data privacy, IT security,
and comprehensive requirements around data pri- information security, and the CSL. We will prepare
vacy management. an official MLPS filing for selected applications,
and we will keep working on security by designing
TRAINING AND COMMUNICATION methodologies to incorporate security measures
Education, training, and internal communication from the earliest system development phase. In
are critically important to ensure that we abide by addition, we will enhance our cybersecurity or-
our guiding privacy principles and to foster a cul- ganisation platform to meet increased security
ture of information security and data protection. requirements and prevent our organisation from
Every new BMW Brilliance employee is required to security threats.

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 04 A N I N C L U S I V E , D I V E R S E , A N D E N A B L I N G C U L T U R E T H A T
S U P P O R T S O U R W O R K F O R C E A N D C O M M U N I T I E S .
R E S P ON S IB L E COR P OR AT E C I T IZE N S H I P

4.6 %
Increase in total workforce
at 2020 year-end

30.2 %
Female employees
in management positions

98.4 %
Training employees
satisfaction rate

1,917
Courses provided on JOY Learning
mobile app to dealerships

55.8 %
Increase in average training manday
on JOY Learning mobile app

11,568,364
Beneficiaries of
BMW CSR activities in 2020

Donation towards anti-COVID 19 fight

4.1 / RESPONSIBLE HUMAN RESOURCES MANAGEMENT 35,000,000 RMB by BMW China and BMW Brilliance

4. 2 / PEOPLE EMPOWERMENT
8.6 %
Increase in
tax contribution
4.3 / CORPOR ATE SOCIAL RESPONSIBILIT Y

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HUMAN RESOURCES
MANAGEMENT & CULTURE
4 .1

R E S P ON S I B L E We took prompt action preventing

the pandemic to ensure employ-
and shuttle buses to allow safe
distances between employees,
Our approach to responsible human re-
sources management is guided by our Core
phasises serving higher purposes and the
greater good of society. We work to make

HUMAN ees’ health and safety, job secu-

rity, and morale throughout the
conducted facility disinfection,
and took other prevention meas-
Values, which ser ve as the overarching
principles for how we conduct every aspect
sure that BMW Brilliance is a company all
our employees can be proud of.

R E S OU RC E S crisis. As soon as it became clear

that the disease was spreading in
ures. We stayed close to the
national and local government’s
of our business.
We believe that these core values are the

M A N AGE M E N T China—before the Chinese New

Year on January 25, 2020—we
announcements, and kept adapt-
ing self-quarantine requirements
These values shape our people-centred
corporate culture, one that recognises the
main cornerstones for sustainable success.
These factors make the difference between
began communicating to all staff and travel guidelines. Through value of our diverse workforce and em- good and great.
about COVID-19, its risks, symp- a step-by-step approach, we
toms, precautions to take, and reopened our workplaces and al-
travel instructions. Around the lowed flexible working schedules
same time, we held twice-daily to accommodate the disruptions
crisis management meetings to to our employees’ lives. RESPONSIBILIT Y
stay close to the fast-changing
We make decisions and commit to them personally.
situation.
TRANSPARENCY AND We go beyond for the best corporate interest.
COMMUNICATION
To ensure our employees could
All through the pandemic, we em-
resume work safely, we launched APPRECIATION
phasised timely and transparent
a health service hotline and an
communication to all employees. We respect, motivate, and care for each other.
Human Resources Shared Ser-
In total, we delivered 95 sessions We give clear feedback. We celebrate our success.
vices Centre (HRSSC) hotline on
of communication to our work-
January 29 to address associ-
force, starting as early as January
ates’ questions, and provided on-
21 and continuing throughout the TR ANSPARENCY
line doctor consultations through
year. Our messages included the We share meaningful information efficiently.
JoyChat. Our on-site plant clinics
Our workforce is the beating heart latest medical knowledge about We acknowledge concerns and address inconsistencies in a
remained open to provide work-
COVID-19 and how to prevent constructive way. We act with integrity.
of BMW Brilliance, and we always ers access to medical profession-
exposure, travel guidance and
put their health and safety first. als, and we offered tele-medical
self-quarantine requirements,
Our response to COVID-19 has only assistance for associates outside
workplace safety and remote TRUST
deepened this commitment. of Shenyang and a psychological
work arrangements, health mon-
health hotline available to all em- We earn mutual trust by keeping our promises.
itoring requirements and health
ployees around the clock. We trust and rely on each other.
services available to associates.

Before we encouraged our asso- Over the year, we saw that de-
ciates to return to work, we es- spite the pandemic, BMW Bril-
OPENNESS
tablished mandatory health and liance successfully maintained We are open to different opinions. We learn from
temperature checks, purchased a safe workplace and a stable, our mistakes. We inspire each other to identify new
masks and thermometers for engaged, and growing workforce. opportunities and to embrace changes.
all on-site staff, facilitated social By the end of 2020, there was no
distancing capabilities in all work- COVID-19 positive case reported
places, reconfigured our canteens related to our associates in China.

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DIVERSIT Y AND INCLUSION EMPLOYEE ENGAGEMENT

At BMW Brilliance, we Di ver sit y is one of our sources of the pandemic, we strongly empha- Driven by our Core Values of trust,
treat every associate as strength. By welcoming people from sised the importance of diversity—and transparency, and openness, BMW
all backgrounds and life plans, we in- the benefits that it brings to our busi- Brilliance strives to engage our em-
an ambassador, inside and
crease our competitiveness, develop ness. By creating a welcoming culture, ployees in our cor porate decision
outside the company, and
more innovative solutions to business we can unlock the potential of all our making and human resources policy
together we show how we challenges, expand our opportunities, diverse associates and enhance the setting through mutual dialogue and
work as one family. and create a company where every- resilience and innovation strength of direct, transparent communication.
one can thrive. BMW Brilliance.
THE 9TH EDITION ASSOCIATE
T he B M W Group Code on Human As part of a global company, BMW HANDBOOK AND VIRTUAL HR
Rights and Working Conditions de- Brilliance cares for our expatriate POLICY CENTRE
clares that equal treatment of all em- associates and t heir f amilies . We We are continually improv ing and
ployees is a fundamental principle of value the diverse backgrounds of our enhancing our human resources poli- BMW Brilliance Open Talks live-streaming.
our corporate policy. We embrace the expatriate employees and welcome cies and communication, and in 2020
BMW Group’s focus on diversity, and the new ideas and approaches they we released the ninth edition of our
consider the diversity of our employ- bring to our business. Recognising Associate Handbook. The new edi- MINI EMPLOYEE SURVEY:
ees along a number of dimensions, that relocating internationally can be tion, which was developed with input FOSTERING TWO-WAY FEEDBACK MORE
from the BMW Brilliance Trade Union, BMW Brilliance conducts a full survey COMMUNICATION
including gender, age, cultural back- a challenging process, we support our
associate representatives, and rep- of all employees every two years to FROM SENIOR
ground, disability, sexual orientation, associates as they establish their lives
MANAGEMENT
religious background, and more. in China, including securing places resentatives from our business func- track their engagement with our com-
to live, quality education for children, tions and units, makes our policies pany as well as identify areas where
more user-friendly, concise, precise, we can improve our efforts. Our last To better manifest our core values of
In difficult times, diversit y matters supporting spouses in their own pro-
openness and transparency, we have
more than ever. Even in the midst of fessional growth, and more. and transparent. Employee Survey was conducted in
developed a number of ways to facilitate
2019, but because of the many chal- consistent communications between our
To ensure t hat our wor k force has lenges our company and our society top leadership and our associates:
easy access to all human resources faced during the pandemic, we pilot-
information and tools, in 2020 we ed a BMW Brilliance Mini-sur vey in
THE BMW GLOBAL
launched a Virtual Human Resources 2020 to ensure we could monitor and 1. 2.
DIVERSITY WEEK
Policy Centre on the JoyChat mobile improve employee satisfaction, dive EXECUTIVE EXPERT
In May 2020, the BMW Global Diversity Week took place platform. This new, digital approach into the results of the 2019 Employee DIALOGUE TALK
across all global locations. At BMW Brilliance, we participat- makes it much easier for employees Survey, continue to cultivate our two-
Direct dialogue
30.2 %
Internal experts from
ed by celebrating traditional festivals from other cultures, a to ask and answer questions, provide way feedback culture, and encourage
between employees various business lines
Female employees
company-wide communication programme emphasising feedback, and share any concerns conversations bet ween associates and management with share knowledge with
in management the importance of diversity and inclusion, and provided food with company leaders, and also serves and line managers. open Q&A sessions. employees.
position. from different cultures in our canteens. Over the course of as an employee self-service platform
the week, we reinforced the message that every single as-
where employees can submit leave The results of our shorter, more efficient
sociate is unique and makes us stronger as a group through 3. 4.
requests, check working time account Mini Survey revealed that employees
posts on our internal company communications, JoyChat ASSOCIATE OPEN
and payslips, and even participate in appreciated the safety and prevention
mobile platform, and a screen saver activated on all office MEETINGS DOOR
recognition programmes. In addition measures we took during COVID-19, as
computers. We also shared our efforts in promoting diversi-
to the new virtual Policy Centre, we well as the transparent communications Dialogue between Informal discussions
11.9 %
ty through social media and news outlets to help raise public
awareness of the importance of diversity. maintain regular communications with we undertook during the pandemic. plant employees for management to
Female employees all employees through email, weekly In addition to the BMW Brilliance Mini and management. learn about & address
in total workforce. employees’ concerns.
departmental meetings, and other Survey, we intend to conduct our next
routine communications channels. full Employee Survey in 2021.

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BENEFITS AND WELL-BEING

At BMW Brilliance, we know that our ENSURING EMPLOYEES' HEALTH sleep programme for our production
company’s success and well-being de- We have also developed a number of associates who work in shifts that can
pends on the well-being of our employ- programmes to promote our employ- disrupt normal sleeping patterns. As
ees. We make every effort to protect ees’ physical and mental health. The part of this programme, 2,004 asso-
our employees’ health and safety in the BMW Brilliance Trade Union organis- ciates completed the Pittsburgh sleep
workplace, and to enable them to fulfil es sporting events, such as basketball quality index (PSQI) self-assessment
their long-term personal and health and badminton, among union mem- to identify any challenges they are fac-
goals. bers and business partners as a way ing in achieving healthy sleep patterns.
to increase team cohesion and also
We developed our compensation and foster a healthy lifestyle.
benefits policy to ensure we can attract
and retain the best talent, and to moti- HEALTH MANAGEMENT 2025
vate and inspire them to give their best We continue to advance our Health COVID-19 PREVENTION
work to our company. In addition to Management 2025 programme GREETING PACKAGES
The sixth BMW Brilliance Associates' Congress and the fourth Union Members' Congress held in July 2020.
competitive salaries and social welfare, dedicated to promoting responsible In early March, when the COVID-19 situation
we offer a competitive supplemental behaviour s among our work force, was most severe around the country, and
benefit package under the BMW flexi- including our Stop Smoking Initiative, all colleagues worked from home with great
BMW BRILLIANCE TRADE ble benefits programme, which allows Resilience 2.0, our Burn What You Eat concerns around leaving their homes to do
UNION ACTIVITIES even the most essential shopping, BMW
our associates to customise their ben- healthy-eating campaign, and more.
Brilliance Beijing Trade Union organised
As always, we worked closely THE NEW BMW BRILLIANCE BEIJING efits based on individual and family Our Health Check Programme provid- a greeting activity to deliver a large pack-
with the BMW Brilliance Trade TRADE UNION needs. Despite COVID-19 disruptions, ed annual health check-ups to 94% of age of fresh vegetables for all associates at
Union as a key aspect of our em- we realised our annual employee re- our non-production workforce in 2020. the BMW Brilliance Beijing and Shanghai
In response to employee needs and stakeholder expec-
ployee engagement in 2020. In muneration review and annual bonus branches and LingYue.
tations, and to provide better service to our employees
July, we convened the sixth BMW in the Beijing and Shanghai branches and LingYue, in payment in year 2020, and continued In 2020, we launched t wo new
Brilliance Associates’ Congress March 2020 we officially established the BMW Bril- to transparently communicate with health-management programmes for
and the fourth Union Members’ liance Beijing Trade Union. employees throughout the process. our associates. Under our new hear- THE ELITE TEAM CHALLENGE
Congress, which highlighted how ing-protection campaign, we trained
We know it can be hard to maintain an active
COVID-19 has shaped our work In July, we convened the first Associates’ Congress To better suppor t our employees’ 1,102 associates in methods to prevent
lifestyle amidst busy work schedules, so in
this year. and the second Union Members’ Congress. For the work-life balance, we offer associates hearing damage from noise exposure 2020 BMW Brilliance Beijing Trade Union,
first time, LingYue, BMW Brilliance Beijing and regional
extensive vacation leave in addition to on the job. In 2020, 14 employees together with BMW China Trade Union,
associates’ representatives attended the Associates’
The “ Two Sessions” meeting the statutory annual leave, and gener- required a job transfer as a result of jointly launched a challenge activity to en-
Congress, reviewed and approved the 2020 Collective courage employees to support each other in
was organised with simplicity, ef- ous personal leave benefits for mater- noise concerns, down from 23 in 2019.
Contract, the 2020 Collective Contract Supplementary being active and eating healthy. Participat-
ficiency, and safety in mind, and nity and paternity leave, sick leave, and We also developed a new healthy
Agreement, and 2020 Female Worker’s Special Interest ing employees formed teams that competed
abided by all pandemic precau- compassionate leave.
Protection Collective Contract. over the course of 20 days, with 10 days fo-
tions. The meeting presented, re- cused on exercise in the form of brisk walks
viewed, and approved the 2020 At the Union Members’ Congress, the representatives and 10 days focused on nutrition. In total,
Collective Contract, the 2020 Col- 378 teams participated, and they walked
identified four directions that would guide the Beijing BMW BRILLIANCE TRADE UNION‘S EFFORTS
a cumulative 164,876 kilometres, which is
lective Contract Supplementary Trade Union’s work: culture and fitness, employee care, TO SUPPORT EMPLOYEE HOUSING
equivalent to 4.1 laps around the earth.
Agreement, and a Special Collec- care for female employees’ needs, and helping employ-
One of the important ways BMW Brilliance attracts and retains the best talent is by
tive Contract on Work Safety. ees overcome hardships.
helping our employees secure high-quality housing in Shenyang. In 2020, the BMW
Brilliance Trade Union signed a three-year agreement with the Shenyang Real Estate
Together with the BMW Brilliance Trade Union, the two
We also celebrated the work of Corporation to extend the leases currently supplied to our employees, and to offer 1,500
unions work to support business growth by fostering our
An Liang, an associate at Plant more units—expanding our existing Public Rental Housing Project with 1,000 addition-
culture of innovation through a virtual and physical Inno-
Dadong, as the National Mod- al units and the launch of the Talent Apartment Project of 500 pilot units available to
vation Workshop, while also caring for employees with
el Worker, in recognition of his our employees – over the next three years. To date, our Public Rental Housing Project
a number of benefit programmes aimed at enhancing
has helped 1,400 associates solve their short-term housing challenges. Furthermore,
technical capabilities, his spirit of their welfare, fitness, and facilitating work-life balance.
the new Talent Apartment Project will play an important role in attracting and retaining
innovation, and his unreserved
skilled workers and increase the competitiveness of our company.
support for his co-workers.

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Employer Awards Won by

BMW China and BMW Brilliance:
TALENT DEVELOPMENT
Zhaopin.com
Our success as a company relies on continuously campus recruitment video programmes on social 2020 Best Employer Award for
Campus Recruitment
improving our associates’ skills and capabilities, media platforms popular among passionate youth
China Best Employers Award
and ensuring that they can pass those skills on to groups. These new approaches allowed us to ex-
1,783 the next generation of employees. Our overall tal- pand our reach in scouting the next generation of
Top 10 2020
2nd place
Total new
ent development approach guides us to help each BMW Brilliance employees.
employees hired
in 2020. associate develop their career path within BMW Universum
Brilliance and build internal succession pipelines While our workforce continues to grow organically, Most Attractive Employers
as employees advance their careers. We offer our we remain committed to sustaining our efforts to in China 2020
#1 in Automotive Industry
associates a broad range of training courses to attract, train, and retain the best talent in the in-
help them achieve their short-term and long-term dustry. We are proud of our strong, stable, engaged
Liepin.com
career goals and our company’s business objec- workforce, as well as our reputation as the most
BMW Brilliance won the 2020 Innovative Extraordinary Employer Award by Liepin. 2020 Extraordinary Employer
tives, in line with each associate’s individual devel- desirable employers in China’s automotive industry. Top 100
opment plan.
Innovative Extraordinary Employer
2021 OUTLOOK For 5th consecutive year.
As we provide an environment of opportunity for A s we look ahead to the coming at Plant Dadong in November 202 1
our employees in advancing their careers, and as months, we will continue our talent to provide all-around services to our 51job.com
we continue to grow and expand our business, preparation to support future business workforce there, including IT support, China's Top 100 Model Employers
For 7th consecutive year.
we are always seeking to recruit the best com- development, and equip our workforce reimbursement ser vices, and more.
pany-fit talent to sustain our top performing level with future-oriented competencies. In Our Digital Union Project will work Model of Corporate Social
Responsibility
with future orientated qualification. In 2020, we the meantime, we will explore a crea- with our IT departments to digitalise
Chinese College Students'
implemented innovative recruitment methods to tive talent-sourcing plan for different and st reamline employee benef it Favourite Employer
enhance each candidate's unique experience while talent groups, and further drive talent programmes. In addition, BMW Bril-
driving the digital transformation of the company segment-specific employer branding liance Trade Union will publish a Un- Lagou.com
and swiftly responding to challenges posed by to enhance our attractiveness as an ion Express bi-monthly newsletter to 2020 Top Employer
COVID-19. employer for future-oriented talents. facilitate communication between the
union and employees. Maimai.com
TRAIN AND RECRUIT WITH INNOVATION Our BMW Brilliance Trade Union and Annual Popular Employer in
With in-person interviews no longer possible, we BMW Brilliance Beijing Trade Union Northern China
COVID-19 vaccination for key groups
shifted our recruitment efforts online, setting up PREPARING TALENT FOR will continue to improve employee at BMW Brilliance clinics has been
online job fairs that leveraged VR technology to PRODUCTION EXPANSION well-being and support our company’s ongoing and will be accessible to other Lockin China
University Selected Global Employer
create immersive, one-stop solutions for depart- development. BMW Brilliance Trade associates according to local govern-
As we prepare for significant expansions of our pro- Most Popular Employers Among
ment introductions, live-broadcast Q&A sessions, duction with the Tiexi New Plant and Plant Dadong Union will open the Associate Home mental guidelines. Females in China 2020
and video interviews. Extension projects, we have increased our talent
acquisition programme and internal talent prepara-
To facilitate campus recruitment activities, we tion. We have estimated our total workforce needs
introduced an AI-powered interview process and for the new facilities, categorised the types of talent
innovative campus programmes. In 2020, we met we will need to meet those requirements, and creat-
with overseas prospects in the form of virtual pres- ed a detailed plan for training current employees for
advancement, recruiting new workers to fill new po-
entation for the first time, overcoming geographi-
sitions, and identifying succession plans for bringing
cal barriers with instant communication. Our annu-
associates into new roles. With our broad, dedicated
al campus-focused “BMW Brilliance Open Talks”
approach, we are confident that our talented work-
live-broadcast attracted more than 12,000 stu-
force will be ready as we open these new facilities.
dents and 6,000 applications. We also harnessed
high-impact social media by launching interactive

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4.2

P EOP L E
E M P OW E R M E N T

At BMW Brilliance, we recognise that our company’s

sustainable growth is powered by our people and
our business partners.

By enabling them to succeed, we ensure adjust our training approaches and meth-
our success as a company. That is why ods to online learning for employees and
we have developed a sustainable training dealers. As a result, we were able to turn
and talent development ecosystem for our a period of upheaval into an opportunity
employees, dealer partners, and future tal- to learn and grow, and BMW Brilliance
ents to help them reach their full potential, shared our innovative training approach-
while also achieving our business goals. es and applications with members of the
BMW family in other countries as well as
As the COVID-19 pandemic disrupted our our efficient measures for supporting deal-
business in 2020, our culture of innova- erships’ learning during the pandemic with
tion and resilience allowed us to promptly other industries.

TALENT IS THE FIRST RESOURCE.

THE FUTURE CAN ONLY BE BUILT TOGETHER
WITH OUR PEOPLE, OUR DEALER PARTNERS,
AND OUR NEX T GENER ATION.

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EMPOWERING In addition to helping us achieve our ship training. In 2020, we offered sev- FUTURE TALENT DEVELOPMENT
business objectives, our employee eral training courses aimed specifical- The automotive industry is a demanding and rapidly changing field; we place a high
EMPLOYEES training programme helps to build a ly at developing skills BMW Brilliance value on developing future talent to help us overcome challenges and take advan-
pipeline of talent for BMW Brilliance will need for our future operations. tage of opportunities when they arise. Our Future Talent Programme aims to provide
as well as the automotive industry in high-quality development programme to young talents, boosting their technical pro-
China and worldwide. We develop our New Energy Vehicle Project ficiency and soft skills to help them carve their own career paths in the industry.
training programmes in close commu- To supp or t our de velopment and
nication with our business units so we production of electric vehicles, we re-
"Companies should think can ensure we meet business needs quire associates who work with these THE NEW VOCATIONAL EDUCATION SPEEDUP CHINA
PROGRAMME (NVEP) IN PRODUCTION PROGRAMME
ahead and the cultivation of as well as employees’ career goals. high-voltage systems to complete a
High Voltage Flash Training course. In Adapted from the dual education system in Aims to recruit bachelor degree students
future talents for automation In 2020, we successfully achieved a
2020, we adapted the highest qualifi- Germany and modified to suit the Chinese con- and develop young professionals into com-
and digitalisation is rapid transformation of our training
cation level of this training, the Flash text, the NVEP in 2020 optimised our method- petent production technicians and future
approaches, leveraging our internal
essentially important." ology and tried new approaches. We created section leaders. In 2020 we built a BMW
intelligence and expertise to deeply 4 Training, to the Chinese language,
a new Electronics for Automation Technology class at Shenyang University of Technology
— United Nations Global Compact integrate our business needs. giving our associates even greater skill
profession and cultivated 30 apprentices to and organised a BMW lecture roundtable
with these systems. Over the course
work on the Tiexi New Plant. In response to for students. In 2020, 104 trainees in the
GROW TALENT THROUGH of the year, we certified 899 BMW COVID-19 precautions, we also piloted live programme successfully joined BMW Bril-
THE PANDEMIC Brilliance associates and an additional fied technical training. We trained over broadcasting as a new learning method and liance, with the retention rate of 72.2%, a
At the beginning of the pandemic, we 15 BMW China associates with various 120 man-time and conducted more incorporated the Teams app as an interactive 17.9% increase from 2019.
quickly shifted our training programmes High Voltage Flash qualification. than 500 man-days in 2020. online platform.
to facilitate online education. Across
Digitalisation of Maintenance PROMOTION CHINA PH.D. PRO- FASTLANE
four platforms, we introduced five new INTERNAL TRAINER
GRAMME & GLOBAL LEADER DEVEL- CHINA PROGRAMME
methods to maximise our training ef- and Planning Area DEVELOPMENT
OPMENT PROGRAMME
fect: live broadcast trainings, virtual live Under our Digitalisation strategy, we We developed our internal trainer pro-
Our online training are empowering associates with com- Aimed at shepherding advanced students Provides career growth and rapid develop-
trainings, live webinars, short videos, gramme to support BMW Brilliance
approaches to enable into future technical experts and high-level ment opportunities for outstanding master
and online recorded courses. We also prehensive knowledge and abilities to associates in leading themselves, boost
employee training leadership roles at BMW Brilliance. In 2020, graduates. In 2020, 29 trainees in this pro-
throughout the enhanced our training management and build their skills in this important area. their personal growth through learning
we achieved 11 Ph.D. patents under the gramme passed their final evaluation and
pandemic: online feedback capabilities to ensure In 2020, we developed and published by teaching, and to share practice across BMW Brilliance name. joined BMW Brilliance.
– Live broadcast trainings associates are satisfied with the train- on the Academy e-learning platform business functions.
– Virtual live trainings ings. We offered a number of new online seven online training courses for four
– Live webinars
training programmes in 2020, including key competenc y f ields: Predictive Offering continual training to our growing
– Short videos
– Online recorded courses an online “Mini MBA” programme, a Maintenance; IOT, Sensors, and Edge workforce requires us to also continue BMW BRILLIANCE AUTOMOTIVE
remote collaboration series offered by Computing; Virtual Commissioning; to increase our number of trainers. Our TRAINING CENTRE
Harvard Business Publishing, and a and Data Analysis. The Academy will Technical Part-Time Internal Trainer

+ 223 % number of new courses designed for

our associates and leaders. As a result
continue to provide training courses
online and offline as a one-stop learn-
Development Programme focuses on
developing “double experts”, who have
Increase in total time
spent in online learning of our innovative approach to training, ing resource library for our associates. both technical expertise as well as the
programmes vs 2019. we saw remarkable improvements in skills necessary to train other colleagues.
our employees' participation and com- Training for Tiexi New Plant and In 2020, we developed Production Tech-
+ 77% pletion rate of training courses. Plant Dadong Extension Project nology Training Projects for our internal The BMW Brilliance Training Centre, built by Shenyang Sino-German Park based on
Increase in learning To prepare our associates for work in trainers, combining local experience with BMW Brilliance’s construction standard and training function requirement, was handed
completion rate vs 2019.
TRAINING FOR FUTURE SKILLS our Tiexi New Plant and Plant Dadong global expertise to boost the effective- over to BMW Brilliance in January 2020 as part of a government vocational education

5X We offer employees three t ypes of Extension projects, we continue to de- ness of our training. Throughout the year, cooperation project and began its pilot-run in May 2020. The 13,500-square-metre fa-
training programmes besides legal velop new technical training topics for cility includes areas for technical and non-technical training, leadership training, New
we recruited 24 new internal trainers and
More active learners Vocational Education Programme, and more, offers professional trainings for current
than 2019. mandatory and compliance training, supporting the projects. We organised conducted nine training sessions, for an and future talent, in line with BMW standards, and facilitates knowledge-sharing with
available online as well as offline: 11 training topics across four compe- equivalent of 120 training mandays, with business partners.
technical, non-technical, and leader- tency categories that offered diversi- a satisfaction rating of 4.98.

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EMPOWERING
DEALER PARTNERS

Our BMW dealers are key partners,

and by nurturing high-quality dealer 1. 2. 3.
talent and helping them succeed, we TALENT CUSTOMER NEW ENERGY
can also achieve BMW Brilliance’s DEVELOPMENT EXPERIENCE VEHICLES
sustainable business growth. We pro-
Reshape retail Promote premium Support NEV
vide all-around support for our dealers talent development customer experience business and talent
to establish comprehensive, sustaina- mechanism. and drive corporate development.
ble human resource platforms through cultural change.
our collaborative learning ecosystem,
one that inspires and empowers deal-
ers to learn, share, and grow their 4. 5.
businesses, while preparing for the DIGITALISATION KNOWLEDGE
opportunities and challenges in the
automotive industry. Training digitalisation Encourage and
and enhance blended enhance best practices
learning. for knowledge co-
We empower our dealers by support- creation and sharing.
ing them in five strategic focus areas:

2020 BMW Premium Customer Experience Ambassadors Award Ceremony.

SUPPORTING DEALER PARTNERS TO

RECOVER FROM DISRUPTION

During the COVID-19 pandemic, we took swift action EACH YEAR, WE RECOGNISE THE
to help our dealers cope and even grow amidst the
disruption. In February 2020 we upgraded our JOY ACHIEVEMENTS OF THE BRILLIANT
Learning website and mobile app to facilitate re-
DEALER TALENTS FOR THEIR
mote learning, publishing a variety of online course
packages with different themes for dealer positions COMPREHENSIVE EFFORTS TO PUT
including sales, technicians, and customer service;
hosting multiple live broadcasts; releasing training
CUSTOMERS AT THE CENTRE OF
instructions; and leveraging various channels to EVERY THING THEY DO.
communicate with dealerships during the pandem-
ic. We launched detailed guidance to help training
centres develop pandemic control and prevention
practices, and on May 11, BMW Brilliance became
one of the first in the automotive industry to reopen
face-to-face dealer training. By working together,
we strengthened our partnerships and helped our
dealer partners thrive in challenging times.

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FACTS ABOUT
BMW DEALER
PARTNER TRAINING
Each of our Star Programmes, described below, are tailored to provide
comprehensive, structured trainings targeted to each of these focus areas, and to
IN 2020
support dealers at different phases of their career development.

BMW JOY
LEARNING APP

1,917 10,175 13.4

TOTAL ONLINE COURSES AVERAGE DAILY ACTIVE TOTAL TRAINING
USERS IN 2020 MANDAY PER PERSON
– Micro-course
– Material Increased by 56.6% from 2019. Increased by 55.8% from 2019.
– MOOC
– Blended learning courses
BMW EDUCATION OF SALES & BMW DEALER ELITE TALENT NEW STAFF ENLIGHTENING
SERVICE TALENT PROGRAMME DEVELOPMENT & JOURNEY
(BEST PROGRAMME) RETENTION PROGRAMME FACE-TO-FACE
TRAINING &
3,231 259 114,655
We developed the BEST programme in BMW Brilliance created this programme Onboarding new talents is one of the
COACHING FACE-TO-FACE ON-SITE COACHING TOTAL TRAINING MANDAY
2006 in response to a national call for to sustain and organically grow our most important aspects of any company, TRAINING SESSIONS AT DEALERSHIPS
Including dealership training and
the development of vocational training, pool of experienced dealership talent in and BMW Brilliance developed this
BEST programme training.
incor porat ing t he dual - educat ion 2019. We specifically seek to inspire and programme to enable new talents to
vocational training.Through the BEST advance key positions at every BMW quickly improve knowledge and skills of
programme, BMW Brilliance keeps dealership: sales consultants, service their functions, seamlessly blend into
inspiring and nurturing the talents advisors, parts advisors, and technicians. BMW culture at any dealership, and
NEV TRAINING
AND COACHING
161 62 1,828
of our dealers, and helping them to These people are ambassadors of the provide enhanced customer service.
ONLINE TRAINING NEV ON-SITE CERTIFICATIONS ISSUED
become industry leaders. To date, we BMW brand and they convey the joy of We rolled out our Enlightening Journey COURSES COACHING TO NEV TECHNICIANS AND
have created 17 training bases and BMW to our valuable customers every programme in May 2020 as an online SERVICE ADVISORS
graduated nearly 9,000 individuals, day. Participants in this programme education platform that, combined with
more than 50% of whom have joined receive hands-on training from our dealer in-house training, provides new
BMW dealerships. Training Academy experts, and undergo employees with three to six months
a comprehensive evaluation on three of skill-boosting trainings, particularly
dimensions of skills, their achievements geared for young professionals with
during training, work performance, gamif icat ion f eat ures . M ore t han
BEST NEV PROGRAMME and their BMW Premium Customer 7,200 individuals participated in this
2021 OUTLOOK
Experience competency. Between its programme in 2020, and they received
A new component of the BEST Pro- As we look ahead to the post-pandemic era in China, we in- For our dealer partners in 2021, we will be focusing on en-
launch in 2019 and the end of 2020, in-depth education on the BMW
gramme is our development of specific tend to use our new and existing digital training platforms to hancing our NEV training and coaching to meet our busi-
courses to train BEST students in the 3,958 senior talents and 843 elite brand, products, and customers, as continue to develop the skills of our current and future em- ness needs and deliver more well-qualified talents to the
latest new energy vehicles, which rep- talents were cumulatively awarded to well as information about our career ployees as well as our dealer partners. fast-growing NEV market.
resents the cutting edge of automo- dealers. development and post-professional
tive technology. In 2020, two training courses. In 2021, we will continue to enrich our digital trainings to Meanwhile, taking customer-centricity and business ori-
bases, in Nanjing and Wuxi, were well-
improve their efficiency and effectiveness, particularly with entation as core values, we will further inspire and help
equipped with NEV training facilities,
and they have offered BEST students
a focus on developing additional courses for the Production dealers explore innovation of customer service through Na-
high-quality NEV training, and will Technology Internal Trainer Programme and new training tional Competition and all rounds of training and coaching
gradually offer NEV courses for more courses to meet the needs of employees at our Tiexi New programmes, and work together with dealers to realise the
dealer talents. Plant and Plant Dadong Expansion projects. customer-oriented cultural change.

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Dr. Johann Wieland,

President and CEO of BMW
Brilliance Automotive,
delivering a speech on the
2020 BMW Supplier Media
Visit event in October 2020.

“CSR helps BMW overcome a

crisis very well. Contributing to
local communities, stakeholders,
and society is not a 'nice-to-have'
option for BMW Brilliance, but a
'must-do' on our priority list.”

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4.3

COR P OR AT E
S OC I A L R E S P ON S I B I L I T Y

We believe that China's social need is our need, and we are

committed to taking a leading role in responding to social
challenges and contributing to Chinese society in this difficult time.

Delivering the BMW CTSE training programme at a local school.

2020 was a particularly hard time for our com- BMW JOY Home support for disadvantaged chil- RETHINKING OUR CSR APPROACH
pany and Chinese society as a whole. Since the dren, and leveraged livestreaming platforms to sell The disruptions that our business faced in 2020
outbreak of COV ID-19, BMW China and BMW Intangible Cultural Heritage products during the allowed BMW China and BMW Brilliance to show- 11,568,364
Brilliance have focused on meeting Chinese soci- BMW China Culture Journey to Liaoning. case our flexibility, innovation, and resilience in CSR
Total beneficiaries of
ety’s most pressing needs. The social issues and strategy and approach. We quickly developed ways
BMW CSR activities in 2020.
needs we faced before the pandemic have not We witnessed how CSR becomes a mirror, reflect- to integrate our online and offline CSR activities, so
disappeared, rather they have become more acute ing a company’s relationship with its communities that both types of engagement could reinforce each
in the past year, which drives us to reinforce our and society at large—and how crucial a role CSR other and generate more profound influence. As the
commitment to CSR. plays in creating shared value for society amid the country came together to respond to the pandemic BMW WARM HEART FUND STARTS
A NEW CHAPTER
complexities of social governance. and support medical workers, we embedded our
FIRST RESPONDER TO THE CRISIS CSR ethos even deeper in our business practices, After the Wenchuan earthquake in 2008, the BMW
That commitment led us to be a first responder A GREAT COMPANY MUST BE A emphasising our ability to create shared value that Warm Heart Fund was established jointly by BMW
during the crisis: We quickly adapted our CSR RESPONSIBLE COMPANY benefits both society and the enterprise. China and BMW Brilliance, which was the first cor-
strategy to achieve solid, wide-ranging social im- For a company to grow from good to great, we porate fund in China’s auto industry. Since then, the
pact. Relying on our mature and systematic CSR believe that it must stand for more than just sales As China enters the post-pandemic era, we rec- BMW Warm Heart Fund has always been among
performance and profitability. A great company the first to respond to major disasters or epidemics.
strategy, as well as the strong connections we had ognise that CSR is more important than ever, and
It has developed into a platform that widely engages
built with all our stakeholders, we donated a total should also be a responsible company that closely BMW China and BMW Brilliance are committed to
stakeholders to make contributions to Chinese socie-
of 35 million RMB to support the battle against the engages in social issues to promote social devel- reflecting and refreshing our understanding of and
ty together, and since 2008, we have accumulatively
pandemic and helped establish the first national opment. approach to CSR—our purpose must continue to be
donated over 97 million RMB in charitable causes.
mental health and counselling hotline for frontline greater than making profits. We believe that large
medical personnel, patients, and volunteers. BMW China and BMW Brilliance are driven to use companies like ours, with more resources and pow- In 2020, despite the pandemic and its economic fall-
our platform—our brand influence, our industry er at our disposal, have a greater responsibility to out, BMW China and BMW Brilliance increased our
Our company culture of flexibility and innovation knowledge, and our experience as a responsible do more for society. CSR investment: We announced a joint donation of 10
also allowed us to advance our flagship CSR pro- corporate citizen—to create shared value for our million RMB and a pledge to donate an additional 10
grammes despite the huge disruptions we faced communities and our business. Guided by our core In the future, we will optimise our internal disaster million RMB every year to increase our investment in
in 2020. We adopted a no-contact engagement values, we have developed CSR programmes that rapid-response mechanisms, create a stakehold- the BMW Warm Heart Fund, and working in partner-
deeply engage our stakeholders as partners to ship with China Education Development Foundation,
approach to align with social distancing policy: er-engaged public welfare platform to make our
we will engage even more people with BMW’s CSR
We developed innovative ways to continue our jointly solve real problems in our communities and corporate matching donations more impactful and
programmes and continue to contribute to China’s
flagship BMW Children’s Traffic Safety Education our society with the aim of making long-term con- influential and follow the impacts of the pandemic
social development.
programme online, extended the reach of our tributions to Chinese society. and remain prepared to assist in China’s recovery.

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UNRESERVED SUPPORT
TO OUR SOCIET Y IN THE ANTI-PANDEMIC BAT TLE

JANUARY 26 FEBRUARY 12 FEBRUARY 14 FEBRUARY 18 MID-2020

FIRST DONATION SECOND DONATION THIRD DONATION ASSOCIATE DONATION IOOI IMPACT ASSESSMENT

“Shenyang is the home of BMW To gauge the impact of our anti-pandemic donations, BMW
Brilliance. In this time of crisis, our China and BMW Brilliance uses a comprehensive, scientif-
ic social responsibility assessment known as IOOI (Input,
thoughts are with the local people
Output, Outcome, Impact). According to the evaluation,
that have shown us nothing but the overall donation goal was completely achieved and the
great support throughout the years. utilisation rate of donation reached 100%. Donations were
We firmly stand with our family in made in accordance with the donors’ wishes.

Shenyang. We are confident that

with the joint efforts of the Chinese
government and all sectors of
We made our first donation We announced a further donation of We sent 5 million RMB to To help our associates con-
society in this great country, China of 5 million RMB to the Hu- 25 million RMB to the China Popula- the Sixth People’s Hospi- tribute to the fight against 21 Provinces, cities, and regions benefited.

will soon overcome this epidemic.” bei Charity Foundation, to tion Welfare Foundation to purchase tal of Shenyang in view of COVID-19, BMW China and
Including ventilators, patient monitors,
purchase urgently needed urgently needed medical equipment the urgent need to support BMW Brilliance initiated an 356 and disinfection machines purchased
medical supplies, and help for hospitals in Wuhan as well as oth- medical personnel in Liaon- associate donation on Feb- pieces of medical and donated to 38 hospitals, benefiting
treat patients in local hos- er cities in Hubei Province and to es- ing and Shenyang to fight ruary 18 to the Huanggang equipment purchased 3,650 patients.
pitals. tablish the first national mental health the epidemic. Those funds Central Hospital and the
Since the outbreak of COVID-19, BMW China and counselling hotline for all frontline were directed to purchase Xiaogan Central Hospital in 176,783 Donated to 44 schools, benefiting
and BMW Brilliance have targeted our sup- medical personnel, patients, and vol- urgently needed supplies Hubei province to purchase medical protective items 26,075 students and 1,659 teachers.
unteers. and medical equipment in urgently needed medical purchased
port to society’s most pressing needs. BMW
was one of the first global brands in the auto our hometown. supplies.
industry to commit funds to fight COVID-19 The second donation by BMW China 124 professional training courses,
231 tutoring sessions, and
in China. Through three waves of donations, and BMW Brilliance fully considers
MENTAL 571 volunteer counsellors, who
BMW China and BMW Brilliance created and responds to the needs of medical benefited 10,768 callers.
HEALTH HOTLINE
continuous and recognised social impact in personnel. By funding to establish
Chinese society and received unanimous the first national mental health hot- Donation made by BMW dealers and car
line, we innovated and redirected the
1.67 Million RMB owners.
praise from BMW associates, dealers, cus-
tomers, beneficiaries, and the public. social focus gradually from cash and
Donation made by 734 employees from
supplies donation to services support. 374,689 RMB BMW China and BMW Brilliance.

1,200 Received our urgent donation of living

supplies, school supplies, and sports
disadvantaged children in
Hubei Province equipment.

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"I hope that more BMW dealers and car owners

can join our efforts and help us pass on the pos-
itive energy to all of society. Together, we will
eventually overcome the pandemic."
YOU R AC T ION
B M W ' S E P I T OM E Guo Sheng
BMW Dealer and Investor

HIS STORY
Wuhan Union Hospital’s request for masks inspired Guo’s 29-hour
facemask relay. After purchasing masks in Luxembourg, he drove them to
Frankfurt Airport and arranged for one warm-hearted Chinese passenger
to bring them to Beijing Capital Airport, and another to deliver them from
Beijing directly to Wuhan. After a 10,000-kilometre journey, the 5,000
masks arrived in the hands of Union Hospital’s medical staff.

"My biggest motivation for starting a business is

not just to make money; I hope to help others and
serve the public good. As an entrepreneur, I hope
that every enterprise, regardless of size, can act
responsibly and do something for society."

Xu Chenhua
BMW car owner, senior media worker, and entrepreneur

HIS STORY
In just one day, Xu worked to raise 120,000 RMB to purchase desperately
needed equipment for Nanfang Hospital in Wuhan. He managed to source
hard-to-find supplies from the United States, coordinate a number of
complex cross-border logistics solutions to enable teams to deliver 3,000
protective suits first to Guangzhou Airport and then to Nanfang Hospital.

"We say 'Joy of Driving' at BMW, but I would re-

phrase it to 'Joy of Giving'. I am happy in my work at
BMW because my values and the company’s values
are consistent. Working here is a harmonious and
mutually beneficial process—and it brings me joy to
BMW’s stakeholders have joined in the fight as well: Our dealers, associates and help others as well.”
warm-hearted customers led collective donations of cash as well as much-needed
supplies and equipment, and also provided volunteer services. Our systematic stake-
holder-engaged public welfare platform makes all these rapid responses possible. Huang Yanling
The BMW CSR team published a series of articles themed “Your Action, BMW's Epito- An employee at the BMW Group Assembly Plant in Munich
me” on BMW stakeholders who conducted a variety of charitable activities to fight the
epidemic. The series of reports generated great social impact, improved cohesion , HER STORY
and a sense of honour among BMW car owners, associates and dealers. Huang devoted herself to making donations and joining a public welfare
team to help collect urgently needed medical resources and coordinating
efforts. She connected with different Chinese college alumni in Germany to
raise €80,227 to purchase and deliver 7,220 medical protective suits, 150
medical goggles, and 460 shoe covers to the liaison hospital in Wuhan.

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BMW CSR We have developed our flagship CSR programmes to address social issues in
three areas. And as China enters the post-pandemic era, BMW is more commit-
events; by the end of 2020, it received more than 2.68 mil-
lion views and excellent feedback from teachers, parents,
our BMW Good Rider initiative, the first auto brand to respond
to the Traffic Management Bureau of the Ministry of Public Se-

P ROG R A M M E S ted than ever to contribute to Chinese society. Although all businesses are facing
unprecedented challenges as a result of COVID-19, BMW has been one of the first
and BMW dealerships. curity’s "One Helmet, One Belt" safety campaign. Our initiative
calls on all BMW car and Motorrad owners to wear safety belts
in China’s automotive industry to restart CSR programmes. We will continue our The establishment of the CTSE platform mobilised social and helmets correctly, travel in full gear in all seasons, take part
innovative CSR solutions and programmes as part of our long-term commitment power to promote traffic safety education, engaging traffic in safety training, and serve as role models of traffic-rule com-
to benefitting Chinese society. police, teachers, volunteers, parents, and children to partici- pliance and courteous driving. To date, we have engaged more
pate in traffic safety education. At the same time, during the than 13,200 people to endorse BMW’s advocacy.
pandemic, the platform continued to meet the needs of society

1. 2. 3.
for traffic safety education with the help of the Internet's wide In addition to our online innovations around child traffic safety
coverage, strong interaction, strong influence, and rich forms. education, we also upgraded our in-person events, bringing our
new CTSE pop-up event to Chongqing and Shenyang during
To better engage stakeholders under the new normal of 2020. We included our “BMW Good Driver” and “BMW Good
Continue to boost drivers’ Conserve Chinese Focus on and subsidise
no-contact communication, we released an interactive H5 Rider” initiatives in the interactive photography zone we created
awareness of traffic safety to traditional culture specific disadvantaged
e-poster, to invite the media to take selfies and share their to broaden the social impacts of our campaign. These pop-up
oneself, to others, and to the and develop Chinese groups in the society, such
posters on WeChat Moment, endorsing BMW’s advocacy events also included a new AnAn Warm Heart Ambassador
society to improve Chinese intangible cultural as migrant children and left-
on “One Helmet, One Belt”, instead of attending the kick-off module, allowing participants to create a customised ‘One
children's traffic safety heritage. behind children in China's
event onsite. 84 journalists from a list of 100 media shared the Helmet, One Belt’ poster, and an online Blind Lottery Box prize
awareness and skills. underdeveloped areas.
poster on WeChat. game linked to the WeChat account for BMW CSR.

BMW GOOD DRIVER & BMW GOOD RIDER ENABLING STAKEHOLDERS

We unveiled another online social campaign for National Another key aspect of our CTSE efforts is focussed on enabling
Traffic Safety Day, which aligned the My BMW app and our stakeholders to help others. In 2020, we continued to build
BMW CHILDREN'S TRAFFIC BMW CHINA BMW BMW Motorrad Weibo with regional traffic police to spread on the CTSE Ambassador Training Base we launched in 2019,
SAFETY EDUCATION CULTURE JOUNREY JOY HOME the word about our “BMW Good Driver” and “BMW Good which engages our BMW dealers and car owners with our phi-
Rider” traffic safety campaigns. More than 2.96 million peo- losophy of safety and responsibility. We provide our dealers
ple participated in the event. with toolkits and training manual to enable car owners to lead
children's road-safety courses, and by the end of 2020, it has
We have long focussed on traffic safety education as a par- become one of the most popular CSR activities for our dealers:
ticipant in the China Road Traffic Safety Charity Alliance and From 35 training bases in 19 cities, we had 886 volunteers lead
children’s road-safety courses for 7,050 beneficiaries.
BMW CHILDREN’S Since 2005, the BMW Children's Traffic and an online platform, which enables through our BMW Good Driver initiative. In 2020, we introduced
Safety Education (CTSE) programme teachers, parents, volunteers and po-
TR AFFIC SAFET Y has been promoting public awareness liceman to easily deliver road safety BMW CTSE class held at a BMW dealership.

EDUCATION of traffic safety, raising awareness of education courses to children.

children and families about safe behav-
iour and activities around roads and On Children’s Day, we launched our
vehicles. CTSE is the longest-standing C T SE Online Platform in partner-
CSR programme of BMW in China and ship with the China Children's Press
its development in the past 16 years & Publication Group and the Traffic
Facts about BMW CTSE exemplifies BMW’s long-term commit- Safety Research Centre of the Ministry
Ambassador Training Programme
ment to the Chinese society. of Public Security, under the guidance
of the Traffic Management Bureau
35 CTSE Ambassador
Training Bases FROM OFFLINE TO ONLINE of the Ministry of Public Security. By
In 2020, influenced by the COVID-19 innovating our CTSE activities online,
19 Cities pandemic, the new trend of online we have been able to sustain our
learning and no-contact media com- commitment to providing life-saving
886 CTSE
Volunteers munication posed new challenges to safety education and reach even more
traditional event pattern of BMW CTSE. people. The Online Platform offers
7,050 Beneficiaries Thus, BMW CTSE shifted its focus from games, augmented reality exhibitions,
offline events to online communication training classes, and live-streaming

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Xiu Yan Manchu Paper-cut,

one of the representative
Intangible Cultural Heritage
items selected during the 2020
BMW China Culture Journey.

Songhua Inkstand Skill,

one of the representative
Intangible Cultural Heritage
items selected during the 2020
BMW China Culture Journey.

BMW CHINA In 2020, facing the challenges of the We visited more than 30 representative BMW China undertook extensive out- In our 14th year of the BMW China
COVID-19 outbreak, BMW China Cul- ICH items, including the Xiu Yan Man- reach to promote the Culture Journey. C u lt u r e J o u r n e y, w e f o c us s e d o n
CULTURE JOURNEY ture Journey demonstrated our firm chu Paper-Cut, the Haicheng Stilt, and Our live-streaming innovation created a strengthening our roots in local com-
commitment to support society’s re- the Panjin Municipal Fisherman’s Work great social buzz, with over 4.49 million munities, and deepening BMW’s on-
covery and resilience. During the pan- Chant. During the tour, we selected six people viewing the livestream during the going connection to Chinese society.
demic, our Culture Journey took timely ICH inheritors from Liaoning and Hubei tour, and a series of short TikTok videos In the future, the BMW China Culture
action and launched the online Intan- Provinces to co-design creative prod- received more than 620,000 views. Journey will continue to use our strong
gible Cultural Heritage Pop-up Store ucts in the Tsinghua BMW Innovation Through Taobao Live, we engaged with brand influence to build bridges for
to help inheritors in Hubei to overcome Centre for Intangible Cultural Heritage more than 1.8 million people, hit over 6.8 cult ure and tour ism indust r y, and
the tough period. Safeguarding. million views on social platforms, and strengthen the region’s social and
sold more than 3,000 ICH products. economic development.
As the epidemic eased, we paid an in- By collaborating with the Alibaba Foun-
depth visit to and held an exhibition in dation’s Model Mother Programme, we In October, the programme also held a
Liaoning to give back the hometown of supported female ICH inheritors in using 2020 BMW China Culture Journey In-
BMW Brilliance, to strengthen our con-
nection with the local community, and
e-commerce platforms to safeguard and
promote ICH knowledge. In partnership
tangible Cultural Heritage Exhibition at
Shenyang Palace Museum. More than
9.22
help to promote the recovery of the cul- with Mafengwo, we launched the "BMW 40 inheritors from Liaoning were invited Million views
engaged by 2020 Artefact co-designed by
ture and tourism industry in Liaoning. China Culture Journey Intangible Cul- to attend the Exhibition’s Liaoning In- ICH inheritors and the
Culture Journey on social
ture Heritage Tour Guides of Liaoning", tangible Cultural Heritage Creative Fair platforms, incl. TikTok,
Tsinghua BMW Innovation
Centre, showcased in the
TRACE THE ROOT OF LIAOHAI contributing to the culture and tourism to showcase and sell 20 different types Weibo, and Taobao Live. 2020 BMW China Culture
CULTURE industry in Liaoning Province. Taking of Liaoning intangible cultural heritage Journey Intangible Cultural
Heritage Exhibition at
Themed "Trace the Root of Liaohai into account insights into changing trav- products. The exhibition features not Shenyang Palace Museum.
Culture, a Spiritual Homeland of Con- el habits in the post-epidemic era, two only Liaoning intangible cultural heritage
tinuit y and Preciousness", in 2020 BMW China Culture Journey Regional boutiques, but also the debut of the first 3,000+
we embarked on a four-day tour that Mini-Tour Guides customised for differ- batch of creative intangible cultural her- ICH products sold through
explored, promoted, and safeguarded ent regions in China were launched on itage products from the Tsinghua BMW Taobao Live during the BMW
intangible cultural heritage (ICH). the Mafengwo platform in August. Innovation Centre. China Culture Journey outreach.

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BMW JOY HOME

B M W JOY Home is a B M W e xclu - grading from charitable donations to OUR CSR AWARDS AND HONOURS
sive stakeholder engagement pro- the empowerment of beneficiaries. BMW JOY Home was most
gramme tailored to help left-behind Among our three flagship CSR pro- affected by COVID-19.
and migrant children in China’s un- grammes, BMW JOY Home was most
Nevertheless, in 2020 we
derdeveloped areas to obtain equal affected by COVID-19. Nevertheless,
promptly took several actions
educational opportunities. This pro- in 2020 we promptly took several
gramme widely engages BMW cus- actions to help schools cope with to help schools cope with new
BMW China and BMW Brilliance's Best Automotive Enterprise 2020 Best CSR Brand
tomers, dealers, associates and other new and existing challenges. After and existing challenges. story of fighting COVID-19 selected in for Fighting Against Epidemic Best Sustainable Development
war m - he ar t e d p e ople acr oss t he conducting a detailed investigation of "Research Report of Corporate Social in China Award
nation, and since we launched BMW 75 BMW JOY Home schools across Responsibility in Fighting Against China Automotive News From the 4th CSR China Education Award,
JOY Home in 2011, 79 BMW JOY Home the countr y, 44 of which have been Epidemic" initiated by China Philanthropist and China College
schools have been established in 29 found to be in urgent need of epidemic Students' Social Practice Promotion Committee of
China Benefit Corporation of Tencent Chinese Communist Youth League
provinces, municipalities, and autono- prevention supplies to support cam- CSR Cloud

mous regions in China. pus health management. To address

this issue, we decided to provide as-
Since 2017, in line with BMW’s CSR sistance through the China Charit y
s t r a t e g y, B M W J O Y H o m e h a s Federation BMW Warm Heart Fund
achieved its strategic transformation. and donated 1 76,783 sets of pan-
2020 Responsible Corporate 2020 Best Enterprise Practices for 2020 Golden Bee China Corporate
To address left-behind children and demic prevention materials to 44 JOY
Achieving Sustainable Development Social Responsibility -
migrant children’s real and urgent Home schools nationwide, benefitting China Newsweek, in 16th Corporate Social
Responsibility Forum: China Goals (SDGs) Harmonious Contribution
needs, BMW JOY Home launched the more than 26,075 students and 1,659
UN Global Compact Network in China Golden Bee
all-new programme theme of “Joyful teachers. In addition, we also man-
Football” and “Joyful Sports”, lever- aged to help build new football fields
aging our core competencies and up- in nine BMW JOY Home schools.

Golden Key • Honour CSR Gold Award Excellent CSR Project

China Sustainability Tribune 2020 Golden Flag Award Southern Weekly

"Gold Award" in Social Innovation "Communication Innovation Tribute China Automotive CSR
Award" in the List of CSRWORLD Golden Key Awards
7th SuQin Awards Ceremony
Innovation 2020
QUTO-FIRST
CSRWORLD

The epidemic prevention

materials donated by the
China Charity Federation-
BMW Warm Heart Fund
have been delivered to all
students at Lindu Primary
School, Hechuan District,
BMW China / BMW Brilliance BMW Children's Traffic Safety Education BMW China Culture Journey BMW JOY Home
Chongqing.

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LOCAL
COMMUNIT Y
ENGAGEMENT

Connecting with our stakeholders and focussing

on our communities has been fundamental to our
corporate philosophy over the past 17 years. As
BMW’s home in China, BMW Brilliance places
great value on promoting social, environmental,
and intellectual development in Shenyang. We
implement our community development initiatives
through employee volunteerism, corporate locali-
sation, and cultural development projects.

GREEN AREA PROJECT

PEANUT PLANTING

At BMW Brilliance’s Shenyang HVB II Plant, our

Green Area Project not only provides a more di-
verse and greener natural environment for our as-
sociates and makes sensible use of existing land,
but also offers an opportunity for our associates to
engage in public welfare activities.

As a major activity of the Green Area Project, we

have conducted a peanut-planting activity at the
new Battery Centre and our associates are involved
in planting, watering, and harvesting throughout
the peanut season. Besides helping associates to
bond with each other, a primary focus of the pro-
ject is to make a sustainable contribution to society.
In October, associates organised charity events at
BMW Brilliance's three plants, where the home-
grown peanuts were among the goods on sale to
colleagues. The proceeds went to local communi- "ECOLOGICAL LIVABILIT Y IS THE
ties to support infrastructure projects and to stu-
dents in need at our BMW JOY Home school. FIRST CONSIDER ATION OF TALENTS,

With more major construction projects ongoing, WHICH ARE THE PRIMARY RESOURCE
BMW Brilliance is committed to expanding our work
OF INDUSTRIAL DEVELOPMENT."
to protect biodiversity and ecology at our facilities
in response to the national initiative of constructing
— Shenyang Local Government
an ecological civilisation and creating a sustainable
working environment that is good for our associates
and the community.

Peanut-planting activity of the Green Area Project, at BMW Brilliance's Shenyang HVB Centre II.

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BMW CORPOR ATE VOLUNTEER ASSOCIATION CORPOR ATE LOCALISATION

We are proud of our employees’ dedication to giving back to their communities, and BMW Brilliance helped We continue to look to the future of our company and our in-
coordinate several notable volunteering projects in 2020 to support our communities. dustry, and how we can build BMW Brilliance while also bene-
fitting the sustainable development of our communities. 2020
marked the fifth year of our China-Germany Equipment Man-
SHENYANG ASSOCIATE SOCIAL GIVING BACK TO OUR COMMUNITIES ufacturing Industrial Park (CGIP), and illustrates how we can
RESPONSIBILITY PROEJCT For the third year in a row, our Trade Union ar- collaborate for continuous success. Our focus as we develop
Shenyang Associate Social Responsibility Pro- ranged a Home Visit Project to continue to give the CGIP has been particularly on integrating the project with
ject is a social public welfare project launched in back to our communities. The union organised the city—including developing local talent, protecting and sus-
2008 to engage Shenyang associates in social BMW Brilliance associates to donate money, taining the environment, and connecting the work at CGIP with
volunteering activities in Shenyang community. school supplies, and daily necessities, and ar- BMW Brilliance’s sustainability principle, particularly the 3P
This year, more than 30 associate volunteers from ranged for associates to volunteer to deliver approach of People, Planet, and Property. In 2020, Shenyang
our production facilities together with Shenyang the donations to Dashi Town Central School in Zhongguancun (ZGC) Innovation Centre was set up in CGIP
Charity Federation visited Shenyang Municipal Beizhen City. Our associates visited the families of to strengthen collaboration between Shenyang and Beijing by
Child Welfare Home and Shenyang Social Welfare the students at our Joy Home School and brought leveraging the solid industrial advantage of Shenyang with the
Home, and donated daily necessities including dia- love and the joy of sharing to them. IT and technology innovation strength of Beijing. In the future,
pers and towels to ensure daily operations of wel- we will continue to work to cultivate the automotive industry
fare homes and the quality of life for children and "BMW Children's Traffic Safety Ambassador" is a vol- through CGIP in Shenyang, and promote the high-quality de-
the elderly. BMW Brilliance Trade Union organised untary service project that recruits BMW employees, velopment of Liaoning’s manufacturing industry.
a team of 12 associate volunteers to create and dealers, and car owners as volunteers to provide chil-
offer a “Love Mother, Love Hometown, Love Life” dren with rich and interactive traffic safety experience At BMW Brilliance, we are committed to developing a local
themed class meeting at our Joy Home school of courses. This year, the BMW Corporate Volunteer suppliers network that supports local communities’ economic
Jinzhou Dashi Town Central School. We visited Association recruited professionally trained associate growth, employment, and mutual prosperity. We also provide
the school on National Day, and our associates volunteers who were certified as "BMW Children’s consistent support to empower local suppliers to achieve
conducted various courses that built on their own Traffic Safety Ambassador" to enter Beijing Hua-ao technological breakthroughs, boost our level of operations,
personal and professional experience, inspiring School in Shijingshan District and provided children and optimise their production. This year, the BMW Brilliance
students and helping them understand more of the with an unforgettable traffic safety course. Supplier Media Visit was successfully held in Shenyang,
opportunities available in the larger world. where BMW Brilliance discussed the severe impact of the
pandemic on the auto industry supply chain and the think-
ing of industry players on supply chain development in the
post COVID-19 era. Since the beginning of COVID-19 out-
break, BMW Brilliance has launched an emergency plan and
comprehensive recovery measures for our local suppliers.
Through joint efforts with our suppliers, BMW Brilliance suc-
cessfully resumed production at Shenyang Plant on February
17. In a changing environment, BMW Brilliance will further
empower local suppliers and enhance the overall resilience of
the supply chain in the Chinese automotive industry.

Shenyang
associates visited
54.89 400
Shenyang Social Billion RMB
Local content
Welfare Home
and donated daily Purchasing volume in suppliers in China
necessities. China in 2020. by the end of 2020. Production workshop of BMW Brilliance‘s wheel supplier—the Lizhong Group.

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BMW BRILLIANCE
ART SEASON 2020

We strive to promote local cultural

development that explores and stim-
ulates f or ward - look ing dialogues
between art and industry. We unveiled
the 2020 BMW Brilliance Art Sea-
son K ick-Off Ceremony and Shang
Chengxiang solo exhibition at the BMW
Brilliance Plant Powertrain Art Space.
The event marked a new chapter of our
efforts to support local artists in She-
nyang for ongoing explorations into
the beauty of industry and the spirit
2021 OUTLOOK
of art. We will continue to advance the
In the coming year, we will continue to re-centre In addition, BMW JOY Home will continue to focus
BMW Brilliance Art Season as a long-
our CSR work while continuing to recover from the on the social issue of left-behind children, and we will
term project to honour our commitment
pandemic, and we look to build on our work in 2020 encourage and support dealers, customers and em-
to corporate social responsibility and
in the following ways: ployees to carry out activities on the theme of caring
blending Chinese and German cul-
for left-behind children at BMW JOY Home schools.
tures. At this year’s Kick-Off Ceremo-
For our CTSE programme, we are working to create
ny, we signed a memorandum with the
a breakthrough in stakeholder engagement, with BMW will for the first time call for an extensive deal-
Bureau of Culture, Tourism, Radio and
customers as well as dealers. For our customers, er-level engagement in CSR activities with BMW,
Television of Shenyang to further en-
we plan to continue our successful direct engage- and dealers’ own contributions to building a better
hance and enrich Shenyang’s cultural
ment efforts, emphasising the lens of CSR and so- community and Chinese society, inspiring all BMW
industry development.
cial participation. For our dealer partners, in order authorised dealers to achieve excellence not only
to encourage and engage all BMW dealers to jointly in commercial operations, but also in becoming an
participate in CSR activities and make their own outstanding corporate citizen that undertakes CSR
contributions to building a better community and actions for the development of the community.
Chinese society, we will develop new dealer action
guidelines and support policies in 2021, advocating BMW CSR will be integrated into My BMW App
all BMW dealers to not only become an outstand- community with CSR programmes, other related
ing corporate through business operations, but initiatives, and communication, to fundamentally
also grow into an excellent corporate social citizen enrich BMW customers’ premium experience.
promoting community development by taking cor-
porate social responsibility actions. The BMW Corporate Volunteer Association will
officially launch its online management platform for
2021 marks the 15th year of our BMW China Culture recording volunteer data, issuing volunteer certifi-
Journey, and we plan to increase our outreach and cates, and managing volunteer activities. With this
communications all over the country to help tell the digital tool, BMW CSR will further enhance stake-
story of our programme. We will expand how we holder engagement.
market ICH products to better support inheritors
and to motivate the public to explore, protect, and We will continue and expand our BMW Brilliance
preserve traditional Chinese culture. And we plan Art Season, presenting a series of activities in-
to present a series of successful ICH innovation cluding artistic performance, concerts, art exhibi-
Artwork exhibited at
the BMW Brilliance cases combined with Culture Journey’s 15 years of tions, and talk shows—all with the aim of continu-
Powertrain Plant Art
insights to provide the constructive reference for ing to boost local cultural cooperation, innovation,
Space during the Art
Season 2020. ICH’s sustainable protection. and development.

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 05
5 .1

A BOU T T H I S R E P OR T

The BMW Brilliance 2020 Sustainability Report provides stakeholders with comprehensive information
about the company’s sustainability ambitions and progress. The topics included here have been selected
and weighted in accordance with the findings of a systematic materiality process. The content of the report
was prepared in compliance with the GRI Standards of the Global Reporting Initiative, applying the “Core”
option. Using the Global Reporting Initiative Content Index helps to show how we are implementing the
communication requirements of the UN Global Compact.

REPORTING PERIOD
This is BMW Brilliance’s seventh Sustainability Report, covering the calendar year from January 1 2020
to December 31 2020. The last BMW Brilliance Sustainability Report, covering our 2019 performance and
activities, was released in July 2020. The next Sustainability Report will be published in mid-2022. BMW
Brilliance reports on an annual basis.

REPORTING SCOPE
The sustainability performance data in the report include the following production and operation sites of
BMW Brilliance: our plants in Shenyang, as well as our branch offices in Beijing and Shanghai, and our five
sales regional offices.

The content and data of the report relate primarily to BMW Brilliance. We have made no changes in the
methods used to collect and measure the data on our sustainability performance. There were changes to
the list of material topics and topic boundaries of the report during this reporting period. The targets set
within the report build on the indicators presented in previous years. Additional disclosures on Greenhouse
Gas Emissions applying to the logistics transportation, and other emissions of BMW Brilliance were added
in this report. Joint Initiatives with BMW China Automotive Trading Ltd. or the BMW Group are included in
the areas of customer relationship management, employee training and development, and corporate so-
A PPE NDI X

cial responsibility.

THIRD-PART Y ASSUR ANCE

PricewaterhouseCoopers Zhong Tian LLP has provided limited assurance on selected key data in this
Report.

5.1 / ABOUT THIS REPORT

5. 2 / K PI PERFORMANCE INDIC ATOR S
5.3 / GRI CONTENT INDE X
5.4 / LIMITED A SSUR ANCE REPORT
5.5 / BA SIS OF REPORTING

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5 / APPENDIX

2016 2017 2018 2019 2020 % Change

5 .1

K E Y P E R FOR M A N C E CLIMATE CHANGE ACTIONS

New Energy Vehicles wholesaled (in unit) 480 1,983 21,438 32,246 27,664 -14.2

I N DIC AT OR S New Energy Vehicles dealer outlets in China (number) 173 234 336 450 495 10.0

Public charging pillars provided in China (number) 1,718 65,708 81,585 130,405 306,891 135.3
2016 2017 2018 2019 2020 % Change

ACCOUNTABLE, CIRCULAR & RESILIENT VALUE CHAIN

BUSINESS ACTIVITIES
Volatile organic compounds (VOC) per vehicle produced
Revenues from operations (in RMB million) 98,436 113,197 141,918 172,692 189,006 9.4 0.40 0.54 0.56 0.52 0.50 -3.8
(in kg/vehicle)
Tax (in RMB billion) 21 25 31 35 38 8.6 Total water consumption (in m 3) -- 1,173,531 1,214,892 1,332,876 1,188,228 -10.9

Automobiles produced (in unit) 305,845 396,888 490,151 534,990 600,554 12.3 3
Water consumption per vehicle produced (in m /vehicle) 2.58 2.68 2.47 2.40 1.97 -17.9

Automobiles wholesaled (in unit) 310,041 386,556 465,192 544,549 605,050 11.1 Process wastewater per vehicle produced (in m /vehicle) 3
0.46 0.39 0.42 0.44 0.44 --

Engines produced (number) 282,776 393,110 491,488 478,588 598,316 25.0 Total waste (in t) 46,033 71,976 85,237 87,013 181,791 108.9

Authorised dealer outlets nationwide (number) 558 598 625 647 666 2.9 Total waste for recycling (in t) 44,091 69,029 81,276 83,004 179,987 116.8

Total waste for disposal (in t) 1,942 2,947 3,961 4,009 1,804 -55.0
CLIMATE CHANGE ACTIONS
Waste for disposal per vehicle produced (in kg/vehicle) 6.42 7.43 8.05 7.47 2.99 -60.0
Average fleet CO2 emissions (in g/km) 159.20 146.90 139.00 137.80 142.09 3.1
Total non-hazardous waste (in t) 40,286 63,812 74,073 76,814 172,349 124.4
Corporate average fuel consumption (in l/100 km) 6.69 6.17 5.84 5.79 5.97 3.1 9
Total non-hazardous waste for recycling (in t) 39,067 62,230 72,152 73,346 172,007 134.5
Total Greenhouse gas emissions (in t) 9,901,541 11,884,985 14,190,033 15,417,955 17,741,047 15.1
Total non-hazardous waste for disposal (in t) 1,219 1,582 1,921 1,897 342 -82.0
1
Scope 1 Greenhouse gas emissions (in t) 33,570 37,448 35,733 42,141 43,614 3.5
Total hazardous waste (in t) 5,747 8,164 11,164 10,199 9,442 -7.4
2
Scope 2 Greenhouse gas emissions (in t) 309,154 240,747 281,753 68,602 71,275 3.9
Total hazardous waste for recycling (in t) 5,024 6,799 9,124 8,113 7,980 -1.6
Electricity/heat purchased by BMW Brilliance 309,154 240,747 281,753 68,602 71,275 3.9
Total hazardous waste for disposal (in t) 723 1,365 2,040 2,086 1,462 -29.9
Scope 3 Greenhouse gas emissions (in t) 9,558,817 11,606,790 13,872,546 15,307,212 17,626,158 15.1
Accident frequency rate (per one million hours worked) 0.54 0.43 0.28 0.17 0.09 -47.1
3
Upstream chain 2,099,198 2,675,910 3,408,077 3,981,487 4,339,177 9.0
Spare parts recycled (number) -- 56,362 217,500 124,600 108,070 -13.3
4
Logistics -- -- -- 173,102 175,113 1.2
Spare parts recycled (in t) -- 826 800 563 669 18.8
5
Utilisation phase 7,292,407 8,735,582 10,219,060 11,058,404 12,799,547 15.7
High-voltage batteries recycled (pieces) -- -- -- 3,262 4,347 33.3
3
Disposal 167,212 195,298 245,409 267,321 300,866 12.5
High-voltage batteries recycled (in kg) -- -- -- 78,875 98,261 24.6
6
Business trips -- -- -- 8,815 2,105 -76.1
Note:
7
Employees commuter traffic -- -- -- 9,065 9,351 3.2 1. Direct CO 2 emissions generated by fossil fuel consumption at BMW Brilliance plants, excluding the fossil fuel consumption of construction and on-site suppliers.
The coefficients used for calculation are from Emission Factors for Electricity, District Heating and Fuels issued by Application of German Association of the
CO2 emissions per vehicle produced (in t/vehicle) 1.13 0.70 0.63 0.20 0.18 -7.5 Automotive Industry (VDA). Other climate-impacting gases than CO2 are not included.
8 2. Indirect CO2 emissions generated by the consumption of third-party electricity and heating purchased at the BMW Brilliance plants, excluding the third-party
Share of renewable electricity (in %) - 25 43 100 100 --
electricity and heating consumption of construction and on-site suppliers. For calculation of the Scope 2 CO2 emissions, “market-based” methodology is
used in accordance with GHG Protocol Scope 2 Guidance issued by the World Resources Institute. Other climate-impacting gases than CO2 are not included.
Total energy consumption (in MWh) 623,419 734,268 841,518 974,642 1,026,890 5.4
3. Emissions from the upstream chain and disposal process are calculated based on the carbon footprint of representative vehicles from the product lines,
Total fuel consumption from non-renewable calculated by Thinkstep’s LCA tool GaBi.
183,422 184,408 196,553 233,127 238,834 2.4
resources(in MWh) 4. New data input since 2020. Data includes emissions from inbound logistics, finished vehicle logistics, and aftersales logistics. Emissions from inbound logistics
do not include those derived from logistics from the US to China. Emissions from aftersales logistics do not include those from Spare Parts Distribution Centres
Total electricity consumption (in MWh) 295,867 393,565 475,702 557,572 590,214 5.9 to dealerships.
5. The fleet emissions are extrapolated from the average fleet emissions of BMW Brilliance products sold in a given year. The calculation was based on an
Total heating consumption (in MWh) 144,130 156,295 169,263 183,943 197,842 7.6 average mileage of 150,000 km.
Energy consumption per vehicle produced 6. New data input since 2020. Data includes employees' air travels.
2.05 1.83 1.65 1.63 1.51 -7.4
(in MWh/vehicle) 7. New data input since 2020. Data includes employees' commuting trips by shuttle bus between Shenyang downtown and BMW Brilliance production sites.
8. Including the generation of solar power electricity, the purchase of wind power electricity and International Renewable Energy Certificates (I-RECs).
9. Total non-hazardous waste consists of non-hazardous waste for recycling and non-hazardous waste for disposal. We improved the data calculation process
in 2020, and there was increase in total non-hazardous waste for recycling over the previous year.

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5 / APPENDIX

2016 2017 2018 2019 2020 % Change 2016 2017 2018 2019 2020 % Change

RESPONSIBLE CORPORATE CITIZENSHIP RESPONSIBLE CORPORATE CITIZENSHIP

Total workforce at year-end (number) 16,286 16,686 18,925 19,824 20,739 4.6 New employees in Shenyang (number) 270 1,205 3,096 1,629 1,682 3.3

Female employees in total workforce (in number) 2,094 2,129 2,268 2,389 2,465 3.2 New employees in Shenyang (in %) 1.7 7.2 16.4 8.2 8.1 -1.3

Female employees in total workforce (in %) 12.9 12.8 12.0 12.1 11.9 -1.7 New employees in Beijing (number) 93 125 170 127 101 -20.5

Male employees in total workforce (in number) 14,192 14,557 16,657 17,435 18,274 4.8 New employees in Beijing (in %) 0.6 0.8 0.9 0.6 0.5 -24.0

Male employees in total workforce (in %) 87.1 87.2 88.0 87.9 88.1 0.2 New employees, age <30 (number) 212 1,037 2,534 1,222 1,339 9.6

Employees, age <30 (number) 8,711 7,805 8,276 7,486 6,893 -7.9 New employees, age <30 (in %) 1.3 6.2 13.4 6.2 6.5 4.7

Employees, age <30 (in %) 53.5 46.8 43.7 37.8 33.2 -12.2 New employees, age 30-50 (number) 141 280 722 518 438 -15.4

Employees, age 30-50 (number) 7,472 8,771 10,526 12,192 13,675 12.2 New employees, age 30-50 (in %) 0.9 1.7 3.8 2.6 2.1 -19.2

Employees, age 30-50 (in %) 45.9 52.6 55.6 61.5 65.9 7.2 New employees, age >50 (number) 10 13 10 16 6 -62.5

Employees, age >50 (number) 103 110 123 146 171 17.1 New employees, age >50 (in %) 0.1 0.1 0.1 0.1 0.03 -64.2

Employees, age >50 (in %) 0.6 0.7 0.7 0.7 0.8 11.4 Attrition rate (in %) 3.3 4.5 4.8 3.6 3.7 2.3

Production employees (number) 11,551 11,971 13,844 14,311 15,029 5.0 Voluntary attrition rate (in %) 2.6 3.1 3.7 2.6 2.9 10.7

Production employees (in %) 70.9 71.7 73.2 72.2 72.5 0.4 Involuntary attrition rate (in %) 0.6 1.4 1.2 1.1 0.8 -24.1

Non-production employees (number) 4,735 4,715 5,081 5,513 5,710 3.6 Training days of training organised by the Human
27,851 34,314 33,804 24,311 15,491 -36.3
Resources Department (in day)
Non-production employees (in %) 29.1 28.3 26.9 27.8 27.5 -1.1 Average days of further training per employee
1.70 2.10 1.79 1.23 0.75 -39.1
(in day/person)
Employees in Shenyang (number) 15,601 15,994 18,175 19,068 19,963 4.7
Average training days for employees in production
Employees in Shenyang (in %) 1.10 1.30 1.00 0.7 7 0.48 -37.5
95.8 95.9 96.0 96.2 96.3 0.1 (in day/person)

Employees in Beijing (number) 685 692 750 756 776 2.6 Average training days for employees in
3.20 4.40 4.00 2.39 1.36 -43.1
non-production (in day/person)
Employees in Beijing (in %) 4.2 4.2 4.0 3.8 3.7 -2.6 Average training days for employees in
3.20 3.40 3.70 1.14 0.92 -19.3
management positions (in day/person)
Employees in management positions (number) 1,094 1,146 1,256 1,367 1,448 5.9
Average training days for employees in
Employees in management positions (in%) 1.60 2.05 1.70 1.87 0.71 -62.1
6.7 6.9 6.6 6.9 7.0 1.3 non-management positions (in day/person)

Employees in non-management positions (number) 15,192 15,540 17,669 18,457 19,291 4.5 Training attendee satisfaction rate (in %) 97.0 97.0 97.0 98.2 98.4 0.2
2
Employees in non-management positions (in%) 93.3 93.1 93.4 93.1 93.0 -0.1 Beneficiaries of BMW CSR activities (number) 36,200 21,000 80,292 2,628,7 10 11,568,364 340.1

Female employees in management positions (number) 311 346 377 418 437 4.5 Accumulative beneficiaries of BMW CSR activities
136,600 157,600 237,892 2,866,602 14,434,966 403.6
(number)
Female employees in management positions (in %) 28.4 30.2 30.0 30.6 30.2 -1.3
Expenditure on social commitment activities (in RMB) -- 17,064,616 15,575,085 16,513,831 36,619,722 121.8
Chinese employees in management positions (number) 897 974 1,080 1,169 1,248 6.8
Total employee participants of CSR activities (number) -- -- -- 212 85 -59.9
Chinese employees in management positions (in %) 82.0 85.0 86.0 85.5 86.2 0.8
Total hours of volunteer service (in hour) -- -- -- 1,915 923 -51.8
Share of employees with fixed contracts (in %) 80.0 60.0 49.7 48.1 41.0 -14.8
Accumulated graduates of BEST Programme (number) 5,222 6,377 7,473 8,381 8,953 6.8
1
Total new employee hires (number) 363 1,330 3,266 1,756 1,783 1.5
Overall training mandays for BEST Programme (manday) 420,879 746,377 767,622 659,922 892,842 35.3
Total new employee hires (in %) 2.2 8.0 17.3 8.9 8.6 -3.4
Local content suppliers in China (number) 345 359 378 394 400 1.5
Female new employees (number) 113 182 310 261 172 -34.1 3
Purchasing volume in China (in RMB billion) 23.90 26.70 43.10 49.68 54.89 10.5
Female new employees (in %) 0.7 1.1 1.6 1.3 0.8 -37.0
Note:
Male new employees (number) 250 1,148 2,956 1,495 1,611 7.8 1. Figures related to new employees from 2017 onwards are not directly comparable to figures from previous years due to changes in calculation method. New employees
figures before 2017 are those who joined BMW Brilliance during the year and still worked with BMW Brilliance at year-end. Figures from 2017 to 2020 are those who
Male new employees (in %) 1.5 6.9 15.6 7.5 7.8 3.0 joined BMW Brilliance during the year, regardless of whether they still worked with BMW Brilliance at year-end or not.
2. The increase of beneficiaries of BMW CSR activities is mainly due to more online activities in which the number of beneficiaries is counted by visiting times.
3. Figure is not directly comparable to previous years, as from 2020 we included the purchasing volume of special tools for suppliers' production of BMW Brilliance parts.

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5 / APPENDIX

5.3
Disclosure Page number Further information (incl. UNGC) and omissions

GR I CON T E N T I N DE X 102-13 -- CAAM (China Association of Automobile Manufacturers)

Memberships of associations CAEFI (China Association of Enterprises with Foreign Investment)

This report has been prepared in accordance with the GRI Standards: Core option. The compliance with the GRI Standards IAC (The Investment Association of China)

has not been externally assured. LNAEFI (Liaoning Association of Enterprises with Foreign
Investment)

SYAEFI (Shenyang Association of Enterprises with Foreign

Investment)
GRI 101: FOUNDATION 2016
BAEFI (Beijing Association of Enterprises with Foreign Investment)
GRI 102: GENER AL DISCLOSURES
ABNEA (Association of Beijing New Energy Automotive)

AHK (German Chamber of Commerce in China)

Disclosure Page number Further information (incl. UNGC) and omissions EFQM (European Foundation for Quality Management)

Road Vehicle Committee of China Intelligent Transportation Systems

102-1 p.7 -- Association (ITS China)
Name of the organisation
CBCSD (China Business Council for Sustainable Development)
102-2 p.7-8, p.13-14 --
Activities, brands, products, and services 102-14 p.01-06 --
Statement from senior decision-maker
102-3 p.7 --
Location of headquarters 102-15 p.23-24 --
Key impacts, risks, and opportunities
102-4 p.7 --
Location of operations 102-16 p.29-32, p.79-81, (UNGC 10)
Values, principles, standards, and norms of p.87-88 The 12 Basic Principles are:
102-5 p.7 -- behaviour
Customer Orientation, Peak Performance, Responsibility,
Ownership and legal form
Effectiveness, Adaptability, Dissent (Frankness), Respect
and Trust and Fairness, Associates, Leading by example,
102-6 p.7 --
Sustainability, Society, and Independence. Core Values:
Markets served
Responsibility, Appreciation, Transparency, Trust, and Openness.

102-7 p.7 -- Norms of Behaviour:

Scale of the organisation
– Associate Handbook including an Ethics and Code of Conduct
102-8 p.16, p.85-92, (UNGC 6) section
Information on employees and other workers – Legal Compliance Code- Corruption and Prevention Guideline
p.125-126 d. Do not include the total number of employees on interns. They – Corporate Hospitality and Gift Instruction
assist in administrative tasks. There are no self-employed – Anti-Fraud Policy and Fraud Response Guideline
workers.
102-17 p.29-32, p.79-81 (UNGC 10)
e. There are no significant variations (such as seasonal variations)
Mechanisms for advice and concerns about
in the employement numbers of BMW Brilliance.
ethics
f. The small number of employees in other regional locations next
to Shenyang and Beijing are integrated into the Beijing figures, 102-18 p.23, p.30, p.70 According to the Articles of Association of BMW Brilliance, the
as those locations legally belong to the Beijing offices. Governance structure highest authority of BMW Brilliance is the Board of Directors
(BoD). The BoD has the power to make decisions on all major
102-9 p.48-50, p.75-76, and important matters of BMW Brilliance as provided in the
Supply chain p.118 Articles of Association. A management organisation, the Board
of Management (BoM), is established under the BoD, and is
102-10 p.118 responsible for and in charge of the day-to-day operation and
Significant changes to the organisation and its management of BMW Brilliance.
supply chain
102-40 p.25, 27 --
102-11 p.23-24 (UNGC 7) List of stakeholder groups
Precautionary Principle or approach
102-41 p.88-89 (UNGC 3)
102-12 p.27-28, p.41-44, Collective bargaining agreements 100% of local employees are members of the BMW Brilliance
External initiatives p.48-54, p.65-68, Trade Union, and all Union members are covered by the Collective
p.90-91, p.103-113, Contract on Labour Remuneration. This excludes expatriates,
p.117 & 119 who are not eligible for the Trade Union.

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5 / APPENDIX

SPECIFIC DISCLOSURES FOR MATERIAL TOPICS

Disclosure Page number Further information (incl. UNGC) and omissions GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions

102-42 p.25-27
Identifying and selecting stakeholders PRODUCT QUALITY AND SAFETY

102-43 p.27-28 -- GRI 103: 103-1 p.57-58 --

Approach to stakeholder engagement Management approach Explanation of the material topic
2016 and its boundary
102-44 p.26-28 --
Key topics and concerns raised 103-2 p.58 --
The management approach and
102-45 p.122 -- its components
Entities included in the consolidated financial
statements 103-3 p.58-61 --
Evaluation of the management
102-46 p.26-28, p.122 -- approach
Defining report content and topic boundaries
GRI 416: 416-1 p.58-61 --
Customer Health and Safety Assessment of the health and
102-47 p.26-27 -- 2016 safety impacts of product and
List of material topics service categories

102-48 - Where necessary and possible, restatements are explained in 416-2 - BMW Brilliance did not have significant non-compli-
Restatments of information footnotes to the respective groups. Incidents of non-compliance ance with laws / regulations in 2020 that resulted in a
concerning the health and safety financially material impact.
102-49 p.122 -- impacts of products and services
Changes in reporting

102-50 p.122 -- OCCUPATIONAL HEALTH AND SAFETY

Reporting period
GRI 103: 103-1 p.73-74
102-51 p.122 -- Management approach Explanation of the material topic
Date of most recent report 2016 and its boundary

102-52 p.122 -- 103-2 p.73-74

Reporting cycle The management approach and
its components
102-53 End of report --
Contact point for questions regarding the report 103-3 p.73-74
Evaluation of the management
102-54 p.122, p.127 -- approach
Claims for reporting in accordance with the GRI
standards GRI 403: 403-1 p.73-74
Occupational health and Occupational health and safety
102-55 p.127-136 -- safety 2018 management system
GRI Content Index
403-2 p.73-74
102-56 p.137-140 -- Hazard identification, risk
External assurance assessment and incident
investigation

403-3 p.73-74, p.90

Occupational health services

403-4 p.74
Worker participation,
consultation and communication
on occupational health and
safety

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GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions

OCCUPATIONAL HEALTH AND SAFETY (CONTINUED) BUSINESS ETHICS

GRI 403: 403-5 p.74 GRI 103: 103-1 p.29-32, (UNGC 1,2,3,4,5,6)
Occupational health and Worker training on occupational Management approach Explanation of the material topic p.79-81
safety 2018 (continued) health and safety 2016 and its boundary

403-6 p.74, p.90 103-2 p.29-32,

Promotion of worker health The management approach and p.79-81
its components
403-7 p.74, p.90
Prevention and mitigation of 103-3 p.29-32,
occupational health and safety Evaluation of the management p.79-81
impacts directly linked by approach
business relationships
GRI 419: 419-1 - BMW Brilliance did not have significant non-compli-
403-8 p.73, p.90 Socioeconomic compliance Non-compliance with laws and ance with relevant laws and regulations in 2020 that
Workers covered by an regulations in the social and resulted in a financially material impact.
occupational health and safety economic area
management system

403-9 p.16, p.124 COMPLIANCE, ANTI-CORRUPTION, AND FAIR COMPETITION

Work-related injuries
GRI 103: 103-1 p.29-32 (UNGC 10)
403-10 - This information is subject to internal confidentiality Management approach Explanation of the material topic
Work-related ill health regulations and is not reported. 2016 and its boundary

103-2 p.29-32
CUSTOMER SUPPORT AND SATISFACTION The management approach and
its components
GRI 103: 103-1 p.62
Management approach Explanation of the material topic 103-3 p.29-32
2016 and its boundary Evaluation of the management
approach
103-2 p.62-64
The management approach and GRI 205: 205-2 p.29-32 We define governance bodies as those committees
its components Anti-corruption 2016 Communication and training which receive active regular reports by the compli-
about anti-corruption policies ance function. All committee members are informed
103-3 p.62-64 and procedures about BMW Brilliance’s anti-corruption policies and
Evaluation of the management
procedures. All committee members who are BMW
approach
Brilliance employees have also received training on
anti-corruption. Committee members representing
our shareholders are not covered by the training
INFORMATION SECURITY AND PRIVACY PROTECTION
programme of BMW Brilliance, but are covered by the
GRI 103: 103-1 p.80-81 compliance programmes of BMW Group and Brilliance
Management approach Explanation of the material topic Group respectively.
2016 and its boundary
Our compliance training includes mandatory online
103-2 p.80-81 training for all non-production employees, additional
The management approach and classroom training for new employees and managers,
its components and special workshops and training for specific target
groups (e.g. Sales, Purchasing, and Finance).
103-3 p.80-81
Evaluation of the management
approach Information unavailable: The number of business
partners that policies and procedures have been
GRI 418: 418-1 - BMW Brilliance did not encounter substantiated communicated to is not reported.
Customer privacy 2016 Substantiated complaints complaints in 2020 concerning breaches of customer
concerning breaches of customer GRI 206: 206-1 - In 2020, there were no legal actions regarding anti-
privacy and losses of customer data.
privacy and losses of customer Anti-competitive behaviour Legal actions for anti- competitive behaviour or violations of anti-trust and
data 2016 competitive behaviour, anti-trust, monopoly legislation.
and monopoly actions taken

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GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions

GREENHOUSE GAS EMISSIONS AND AIR POLLUTION ENERGY CONSUMPTION AND RENEWABLE ENERGY

GRI 103: 103-1 p.36-38 (UNGC 7, 8, 9) GRI 103: 103-1 p.45-47 (UNGC 7, 8, 9)
Management approach Explanation of the material topic Management approach Explanation of the material topic
2016 and its boundary 2016 and its boundary

103-2 p.36-38 103-2 p.45-47

The management approach and The management approach and
its components its components

103-3 p.36-38 103-3 p.45-47

Evaluation of the management Evaluation of the management
approach approach

GRI 305: 305-1 p.15, 36, 123 GRI 302: 302-1 p.15, 123
Emissions 2016 Direct (Scope 1) GHG emissions Energy 2016 Energy consumption within the
organisation
305-2 p.15, 36, 123
Energy indirect (Scope 2) GHG 302-2 p.15, p.123
emissions Energy consumption outside of
the organisation
305-3 p.15, 36, 123
Other indirect (Scope 3) GHG 302-4 p.45-47
emissions Reduction of energy consumption

305-4 p.15, 123

GHG emission intensity SUPPLY CHAIN SUSTAINABILITY MANAGEMENT

305-5 p.36-54 GRI 103: 103-1 p.48-50, (UNGC 1,2,3,5,6,7, 8, 9,10)

Reduction of GHG emissions Management approach Explanation of the material topic p.75-76, p.79
2016 and its boundary

WASTE AND EFFLUENTS 103-2 p.48-50,

The management approach and p.75-76, p.79
GRI 103: 103-1 p.69-72 (UNGC 7, 8, 9) its components
Management approach Explanation of the material topic
2016 and its boundary 103-3 p.48-50,
Evaluation of the management p.75-76, p.79
103-2 p.69-72 approach
The management approach and
its components GRI 308: 308-1 - Due to the complexity and in some cases the lack of
Supplier Envioronmental New suppliers that were transparency across entire supply chains, it is not
103-3 p.69-72 Assessment 2016 screened using environmental possible to give a percentage of the new suppliers
Evaluation of the management data screened.
approach
308-2 p.75-76
GRI 306: 306-1 p.15, p.71-72, Negative environmental impacts
Effluents and waste 2016 Water discharge by quality and p.124 in the supply chain and actions
destination taken

306-2 p.16, 124 GRI 414: 414-1 - Due to the complexity and in some cases the lack of
Waste by type and disposal Supplier Envioronmental New suppliers that were transparency across entire supply chains, it is not
method Assessment 2016 screened using social criteria possible to give a percentage of the new suppliers
screened.

414-2 p.75-76, p.79

Negative social impacts in the
supply chain and actions taken

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5 / APPENDIX

GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions GRI Standard Disclosure Page Number Further information (incl. UNGC) and omissions

RAW MATERIALS AND PARTS LIFECYCLE EMPLOYEE DEVELOPMENT AND WELL-BEING

GRI 103: 103-1 p.65-67 (UNGC 7, 8) GRI 103: 103-1 p.91, p.95-96 (UNGC 6)
Management approach Explanation of the material topic Management approach Explanation of the material topic
2016 and its boundary 2016 and its boundary

103-2 p.65-67 103-2 p.91, p.95-96

The management approach and The management approach and
its components its components

103-3 p.65-67 103-3 p.16, p.91,

Evaluation of the management Evaluation of the management p.95-96, p.126
approach approach

GRI 301: 301-1 p.65-67 GRI 404 404-1 p.16, p.126

Materials 2016 Materials used by weight or Training and education Average hours of training per
volume 2016 year per employee

301-2 p.65-67 404-2 p.91, p.95-96

Recycle input materials used Programmes for upgrading
employee skills and transition
301-3 p.65-67 assistance programmes
Reclaimed products and their
packaging materials 403-3 -- BMW Brilliance carries out a companywide portfolio
Percentage of employees process on an annual basis to assess associates'
receiving regular performance performance and career development. The
DIVERSITY, INCLUSION AND EQUALITY and career development reviews percentage information is not currently available
due to the complexity of the portfolio process and
GRI 103: 103-1 p.87 (UNGC 6) variations among different job functions.
Management approach Explanation of the material topic
2016 and its boundary
ELECTRIFICATION AND SUSTAINABLE PRODUCTION PORTFOLIO
103-2 p.87
The management approach and GRI 103: 103-1 p.37-42 (UNGC 7, 8, 9)
its components Management approach Explanation of the material topic
2016 and its boundary
103-3 p.87
Evaluation of the management 103-2 p.37-42
approach The management approach and
its components
GRI 405: 405-1 p.16, 87, 125-
Diversity and equal Diversity of governance bodies 126 103-3 p.37-42
opportunity 2016 and employees Evaluation of the management
approach
405-2 - This information is subject to internal confidentiality
Ratio of basic salary and regulations and is not reported.
remuneration of women to men

GRI 406: 406-1 Incidents of discrimination - This information is subject to internal confidentiality
Non-discrimination 2016 and corrective actions taken regulations and is not reported.

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5 / APPENDIX

L I M I T E D A S SU R A N C E R E P OR T
5.4

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5 / APPENDIX

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5 / APPENDIX

5.5

B A S I S OF R E P OR T I N G
Process wastewater per vehicle Production-relevant process wastewater per vehicle produced in BMW Brilliance plants.
produced (in m³/vehicle)

Total waste (in t) Production-relevant non-hazardous and hazardous waste for recycling and for disposal of the year
in BMW Brilliance plants.
Automobiles produced BMW and ZINORO automobiles produced by BMW Brilliance for mainland China market and that
(in unit) obtained the certificate of vehicle of the year. The data is publicized on the website of the Ministry of Waste for disposal per vehicle Production-relevant waste for disposal per vehicle produced in BMW Brilliance plants.
Industry and Information Technology of the People’s Republic of China. produced (in kg/vehicle)

Total non-hazardous waste (in t) Production-relevant non-hazardous waste for recycling and for disposal of the year in BMW
Automobiles wholesaled (in unit) BMW Brilliance wholesale volume of BMW Brand in mainland China of the year.
Brilliance plants.
Authorised dealer outlets Number of authorised dealer outlets in operation in mainland China at year-end, excluding MINI and
Total hazardous waste (in t) Production-relevant hazardous waste for recycling and for disposal of the year in BMW Brilliance
nationwide (number): BMW Motorrad dealer outlets.
plants.
Average fleet CO2 emissions Average CO2 emissions of automobiles produced by BMW Brilliance for sales in mainland China
Local content suppliers in China Total number of parts suppliers and raw material suppliers of the year including the run-out suppliers
(in g/km) market of the year.
(number) of the year.
Corporate average fuel Average fuel consumption of automobiles produced by BMW Brilliance for sales in mainland China
Purchasing volume in China The amount of purchasing volume, including tax, paid by BMW Brilliance to parts suppliers and raw
consumption (in l/100 km) market of the year. The calculation is based on the GB 27999-2014 Fuel Consumption Evaluation
(in RMB billion) material suppliers in mainland China of the year.
Methods and Targets for Passenger Cars of the People’s Republic of China . The data is publicised
on the website of the Ministry of Industry and Information Technology of the People’s Republic of
Total workforce at year-end Number of permanent employees at year-end, excluding interns and third-party contractors.
China.
(number)
Scope 1 Greenhouse gas Direct CO2 emissions generated by fossil fuel consumption at BMW Brilliance plants, excluding the
Female employees in total The ratio of female permanent employees at year-end to the permanent workforce at year-end.
emissions (in t) fossil fuel consumption of construction and on-site suppliers. The coefficients used for calculation
workforce (in %)
are from Emission Factors for Electricity, District Heating and Fuels issued by Application of German
Association of the Automotive Industry (VDA) .
Employees in management The ratio of permanent employees in management positions at year-end to the permanent
positions (in %) workforce at year-end.
Scope 2 Greenhouse gas Indirect CO2 emissions generated by the consumption of third- party electricity and heating
emissions (in t) purchased at the BMW Brilliance plants, excluding the third- party electricity and heating
Female employees in The ratio of female permanent employees in management positions at year-end to total permanent
consumption of construction and on-site suppliers. For calculation of the Scope 2 CO2 emissions
management positions (in %) employees in management positions at year-end.
calculation, “market-based” methodology is used in accordance with GHG Protocol Scope 2
Guidance issued by the World Resources Institute.
Chinese employees in The ratio of Chinese permanent employees in management positions at year-end to total permanent
management positions (in %) employees in management positions at year-end.
Scope 3 Greenhouse gas Indirect CO2 emissions generated in the upstream supply chain, the logistics, the utilisation phase
emissions (in t) and the disposal of automobiles produced by BMW Brilliance for sales in mainland China market
Total new employee hires (in %) The ratio of newly hired permanent employees of the year to the permanent workforce at year-end.
of the year, and those generated from employee commuting and business trips of BMW Brilliance
within the year. Emission factors of the supply chain and the disposal are based on the carbon Attrition rate (in %) The number of voluntary and involuntary turnover divided by the number of monthly average
footprints of representative vehicles from the product lines, calculated by Thinkstep’s LCA tool permanent employees of the year.
GaBi. Emissions factors of logistics are based on emission factors in DIN EN 16258. Emissions from
the utilisation phase are calculated based on the average fleet emissions of automobiles delivered Training days of training Total training days of LRG (learning resources guide) training, department training and language
of BMW Brilliance and an average mileage of 150,000 km per vehicle. organised by the Human training organised by Human Resources Department of the year.
Resources Department (in day)
Share of renewable electricity The ratio of renewable electricity consumed to the total electricity consumption of BMW Brilliance
(in %) Shenyang Production Region. The renewable electricity includes the generation of solar power Average days of further training Average training days for permanent employees participating in the training organised by the
electricity, the purchase of wind power electricity and the International Renewable Energy per employee (in day/person) Human Resources Department.
Certificates (I-RECs).
Training attendee satisfaction Average training satisfaction evaluated by employees who have attended training organised by the
CO₂ emissions per vehicle Production-relevant CO₂ emissions per vehicle produced in BMW Brilliance plants, excluding CO₂ rate (in %) Human Resources Department.
produced emissions from energy consumption of R&D, Plant Dispatch Area (PDA), construction, on-site
(in t/vehicle) third- party suppliers and other non-production relevant energy consumption of the plants. Accident frequency rate (per one The scope only covers directly contracted employees in BMW Brilliance plants. It is calculated by
million hours worked) the number of accidents with one day lost time or more divided by the total working hours (in million)
Total energy consumption Total energy consumption of the year in BMW Brilliance plants, including purchased electricity, of the year.
(in MWh) purchased heating and natural gas.
Beneficiaries of BMW CSR Number of times people benefited from CSR activities organised by BMW CSR team and BMW
Energy consumption per vehicle Production-relevant energy consumption per vehicle produced in BMW Brilliance plants, excluding activities (number) Brilliance Trade Union in mainland China and BMW Brilliance Shenyang Associate Social
produced (in MWh/vehicle) the energy consumption of R&D, PDA, construction, on-site third- party suppliers and other non- Responsibility Programme.
production relevant energy consumption of the plants.
Expenditure on social Expenditure on social commitment by BMW Brilliance and China Charity Federation-BMW Warm
Volatile organic compounds (VOC) Production-relevant VOC per vehicle produced in BMW Brilliance plants. commitment activities (in RMB) Heart Fund.
per vehicle produced (in kg/vehicle)
Total employee participants of Total number of times employees attending voluntary activities held by BMW Corporate Volunteer
Total water consumption (in m³) Total fresh water consumption of the year in BMW Brilliance plants. CSR activities (number) Association in mainland China.

Water consumption per vehicle Production-relevant water consumption per vehicle produced in BMW Brilliance plants, excluding Total hours of volunteer service Total hours that employee volunteers spend on voluntary activities held by BMW Corporate Volunteer
produced (in m³/vehicle): the water consumption of R&D, PDA, construction, on-site third-party suppliers and other non- (in hour) Association in mainland China, including direct service hours and indirect service hours. Direct
production relevant water consumption of the plants. service hours refer to activity hours, and indirect service hours refer to the hours that volunteers
spend on transportation, on-site preparation and lunch hours during the activities.

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Report published by: Contact for questions regarding this report: Further information and
publications are available at:
BMW Brilliance Automotive Ltd. BMW Brilliance Automotive Ltd. Beijing Branch
http://www.bmw-brilliance.cn/cn/
14 Shanzuizi Road 25th Floor, Tower B, Gateway Plaza
en/csr/download.html
Dadong District 18 Xiaguangli, North Road East Third Ring
Shenyang 110044 Chaoyang District BMW Brilliance on the Internet:
Liaoning Province, P.R. China Beijing 100027, P.R. China http://www.bmw-brilliance.cn/cn/en/
Tel: +86(0)24 8455 6000 Tel: +86(0)10 8455 7000 www.zinoro.com.cn