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.”

This bonus episode of Climate Rising features Harvard Business Review’s Cold Cast podcast with Brian Kenny interviewing HBS professor Shirley Lu on BMW Group’s decarbonization strategy, which is the subject of a new case study that Shirley wrote with HBS colleagues George Serafeim and Mike Toffel. They discuss why BMW is focusing on reducing vehicle lifecycle emissions, and why the company has so far avoided setting a phase-out date for internal combustion engine BMWs.For transcripts and other resources, visit climaterising.org.Guest/Host: ●      Brian Kenny, Chief Marketing and Communications Officer, Harvard Business School and host of Cold Call ●      Shirley Lu, Assistant Professor, Harvard Business School

Harvard University aims to decarbonize its supply chain by using a low-carbon substitute for cement. The podcast discusses the challenges of measuring carbon emissions and the potential use of blockchain technology. They explore the innovative solution of using recycled glass to cut greenhouse gas emissions in the concrete industry and the importance of precise carbon accounting in reducing emissions.