Cold Call

BMW’s Decarbonization Strategy: Sustainable for the Environment and the Bottom Line

Mar 28, 2023

22:17

Creator website

Episode guests

Shirley Lu

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

BMW pursues a flexible powertrain strategy with multiple vehicle options to address concerns about driving range and charging infrastructure in the EV market.

BMW faces challenges in achieving its decarbonization goals, including limitations of decarbonization opportunities, cost complexities of electrification, and difficulties in measuring and reporting emissions throughout the supply chain.

Deep dives

BMW's Transition to Electric Vehicles and Decarbonization

The podcast episode discusses BMW's focus on decarbonization and transition to electric vehicles (EVs) in the automobile industry. The case explores the central issue of BMW's strategy and efforts to reduce emissions across the entire value chain. BMW sets ambitious targets to decrease scope one and two emissions by 80% and scope three emissions by 50% by 2030. However, there are challenges they face, such as the availability of decarbonization opportunities, higher costs for electrification, and difficulties in achieving a closed-loop recycling system. The episode highlights the importance of measurement and the need for accurate data in making informed decisions regarding emissions reduction.

Introduction

2min

BMW's Decarbonization 101 Case

2min

BMW's Culture and History as an Automotive Maker

4min

BMW's I3 and I4: A Complete Departure From What You Would Expect

2min

BMW's Flexibility in the Automotive Industry

2min

BMW's EV Lagart

2min

BMW's Decarbonization Program

3min

BMW's Underpromise and Overdeliver Strategy

2min

The Challenges of Carbon Accounting in the Automobile Industry

2min

10.

The Importance of Recycling Batteries

5min

In mid-2022, automakers, consumers, regulators, and investors were focusing on the transition from internal combustion engine (ICE) vehicles to electric vehicles (EV). 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.

Many automakers were announcing deadlines by which they would stop selling ICE vehicles altogether, buoyed by investment analysts and favorable press. But 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. That approach received a frostier reception in the stock market.

Harvard Business School assistant professor Shirley Lu discusses how BMW plans to convince stakeholders that its strategy is good for both the environment and the company’s financial performance in the case, “Driving Decarbonization at BMW.”

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.

Cold Call

BMW’s Decarbonization Strategy: Sustainable for the Environment and the Bottom Line

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

BMW's Transition to Electric Vehicles and Decarbonization

BMW's Culture and Competitors in the EV Market

Regulatory Environment and Challenges in Achieving Decarbonization

Remember Everything You Learn from Podcasts