Areas of application in the automotive industry.

• Main areas of application: Seat covers, steering wheel, interior fittings
• Other areas of application: Lifestyle collections (e.g. purses, bags, functional clothing)

The BMW Group systematically analyzes globally known and typical risks in connection with the extraction and processing of raw materials and derives appropriate measures.

Analyzing risks.

• Environmental impact on water and soil due to land use and improper treatment of wastewater from tanneries and livestock farms, deforestation and the associated loss of biodiversity
• Violation of workers' rights due to potential health and safety risks for employees in tanneries, livestock farming and slaughterhouses
• CO₂-emissions and water consumption in animal husbandry, the animal feed industry and leather production processes
• Endangering the rights of local communities and indigenous peoples
• Animal welfare hazards in animal husbandry, during transportation and slaughter

Measures taken by the BMW Group.

• Gradual reorganization of leather supply chains with regard to the origin of raw leather to reduce risks and emissions
• In 2023, the BMW Group will sign the "Deforestation Free Call to Action" of the Leather Working Group, Textile Exchange and WWF: Commitment to deforestation-free leather supply chains worldwide by 2030
• Suppliers must follow standards and best practice methods for animal welfare compliance
• Commitment to the ethical principles - the 3Rs principle (Reduction, Refinement, Replacement), the FAWCs (Five Freedoms of the Farm Animal Welfare Committee) for assessing animal welfare, and the principles of the World Organization for Animal Health (OIE) on animal welfare
• Certification of selected leather equipment by the Leather Working Group (LWG)
• Increasing use of chrome-free tanning agents - e.g. olive-tanned leather in the BMW iX
• 2023 Market launch of the first cars with fully vegan interiors and expanded range of leather-free equipment variants
• Pilot project with Sourcemap and Satelligence: Transparency down to the origin of the raw material with the help of satellite data and big data analyses

Initiatives.

• Leather Working Group (LWG): Membership and participation in BMW Group working groups to further develop robust and cross-industry sustainability standards for leather