BMW’s Decarbonization Strategy: Sustainable for the Environment and the Bottom Line
In mid-2022, many automakers were announcing deadlines by which they would stop selling ICE vehicles altogether, buoyed by investment analysts and favorable press. While this would reduce tail-pipe emissions, it ignored the fact that the production of EVs—and especially their batteries—increases emissions in the supply chain. BMW decided to focus on lifecycle emissions and pursued a flexible powertrain strategy by offering vehicles with several options: gasoline and diesel-fueled ICE, plug-in hybrid electric vehicles, and battery electric vehicles. But that approach received a frostier reception in the stock market. Can BMW convince stakeholders that its strategy is good for the environment and the company’s financial performance?