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"The automotive industry has gradually entered a new development period with responsible competitiveness as its core." Li Shaohua, deputy secretary-general of the China Association of Automobile Manufacturers, publicly stated at the China Automobile Forum in July this year that automobile companies can explore a higher-quality sustainable development path and truly enhance their core competitiveness by establishing and improving ESG (environmental, social and corporate governance) management systems, strengthening technological innovation and green transformation, and strengthening standardized management.

As market competition intensifies, social responsibility has become one of the important indicators for measuring the comprehensive strength of enterprises, and sustainable development has also become the core strategy of enterprises. The "2023-2024 China Automobile Industry Sustainable Development Report" shows that more than 80% of my country's automobile industry companies have established social responsibility management decision-making mechanisms, more than 91% of companies have formulated supplier or reinsurance party review, selection and evaluation systems, about 75% of companies have formulated carbon management systems and mechanisms, and about 80% of companies have established automobile data security management systems and measures. The level of sustainable development of my country's automobile industry has gradually improved. However, in the critical period of electrification, intelligence, networking, and low-carbon transformation, the automotive industry has a long way to go on the road of ESG.

Developing electric vehicle products, achieving green manufacturing through technological innovation, and building a sustainable supply chain are important means for current automobile companies to fulfill their social responsibilities. Taking the BMW Group as an example, BMW promotes carbon reduction across the entire value chain. By cooperating with local suppliers, it will recycle more than 82,000 tons of scrap steel and more than 1,000 tons of recycled power battery raw materials in 2023. In 2023, Brilliance BMW's power battery cell suppliers have used 100% renewable electricity in their own production processes. BMW actively promotes the green transformation of dealers by launching the "Leading Green Star" plan. At present, the closed-loop recycling model for retired power batteries has covered all BMW electric models sold in China. In order to provide customers with more convenient battery recycling services, as of the first half of 2024, more than 80% of BMW dealers across the country have established battery recycling services that meet national standards.

BMW is accelerating its green transformation, especially in the Chinese market, and is continuously increasing investment in areas such as electrification to help China's automotive industry achieve new quality productivity. Among them, the total investment in the sixth-generation power battery project for the "new generation" models reached 10 billion yuan. The main building of the project was fully completed in Shenyang in November last year. It is planned to complete the equipment installation within 2024 and officially start to use in 2026. In April 2024, BMW announced that it would invest another 20 billion yuan in the Shenyang production base for large-scale upgrades and technological innovations at the Dadong plant, further laying the foundation for the localized vehicle production of the "new generation" models.

In the view of Gao Xiang, President and CEO of BMW Group Greater China, in addition to doing a good job in core products and business, there should be a broader definition to measure the success of an enterprise. BMW's long-term vision is to seek a balance between achieving business success, ecological environment and social responsibility, and to promote the harmonious development of people, environment and society. This is also the true meaning of BMW's sustainable development concept.

Recently, the "BMW China Cultural Journey Grand Canal Cultural Protection Education Public Welfare Project" jointly organized by BMW China and the China-Foreign Cultural Exchange Center of the Ministry of Culture and Tourism of China was officially launched. The project will last for 3 years and focus on the protection and promotion of material and intangible cultural heritage along the Grand Canal. The "BMW China Cultural Journey" is an important part of the BMW Group's sustainable development strategy. It is BMW's thinking on sustainable development from a humanistic perspective and a reflection of BMW's values.

"Good corporate social responsibility reflects a company's attitude or values. When we launch a corporate social responsibility project or choose a topic for a corporate social responsibility project, it has no direct connection with marketing and branding. It is undeniable that the final result will have a positive impact on the brand, but it is not the reason why BMW has invested in corporate social responsibility for a long time. BMW chooses matching projects based on its core strengths and values. For example, the reason we chose the protection of the Grand Canal is because it is highly consistent with BMW's sustainable development concept and is highly correlated with our long-term investment in protecting cultural diversity and biodiversity." Gao Xiang said.

BMW believes that corporate social responsibility is the cornerstone of sustainable development. Since 2005, BMW has been practicing corporate social responsibility and has continued to contribute value to Chinese society for 20 years. The win-win cooperation between BMW and its suppliers has driven the development of Shenyang's high-end manufacturing industry cluster; created local jobs, paid taxes to promote local economic development, and used digital innovation to promote the development of innovative talents in China's automotive industry.

In 2023, the number of beneficiaries of BMW's corporate social responsibility activities exceeded 35.5 million, an increase of 11% year-on-year. Among them, the "BMW China Cultural Journey" has been committed to the protection of China's intangible cultural heritage for 18 years, visiting 24 provinces and municipalities, 6 national ecological protection experimental areas, and funding and empowering the training of nearly 1,000 intangible cultural heritage inheritors; since its launch in 2021, the "BMW Beautiful Home Action" has continued to help China's biodiversity protection and national park construction.

"No matter how the market fluctuates in the short term, we will always adhere to the company's long-term strategy, persist in creating value for users, and persist in doing challenging but right things - providing customers with a pleasant, intelligent and responsible travel experience." Gao Xiang said.