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  • October 2022
  • Case
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Driving Decarbonization at BMW

By: Shirley Lu, George Serafeim and Michael W. Toffel
  • Format:Print
  • | Language:English
  • | Pages:34
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Abstract

The case describes BMW’s electrification and decarbonization strategy, and how the company measured carbon emissions throughout the life cycle of its vehicles and used tools like carbon abatement cost curves to evaluate decarbonization opportunities. 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, the production of EVs—and especially their batteries—increased emissions in the supply chain. Under CEO Oliver Zipse, BMW was focusing on life cycle emissions and was pursuing a flexible powertrain strategy by offering vehicles with several powertrain options: gasoline and diesel-fueled ICE, plug-in hybrid electric vehicles (PHEV), and battery electric vehicles (BEV). Meanwhile, competing automakers were announcing deadlines by which they would stop selling ICE vehicles, buoyed by investment analysts and favorable press. BMW’s approach was receiving a frostier reception in the stock market. Facing these pressures, how should BMW communicate and convince its stakeholders that its strategy was sustainable for both the environment and BMW’s financial performance?

Keywords

Decarbonization; Climate Change; Environment; Sustainability; Carbon Accounting; Carbon; Carbon Abatement; Electric Vehicles; Automobiles; Transportation; Environmental Accounting; Environmental Management; Environmental Sustainability; Accounting; Strategy; Technological Innovation; Supply Chain; Business and Stakeholder Relations; Transportation Industry; Auto Industry; Battery Industry; Germany; China; United States; Europe

Citation

Lu, Shirley, George Serafeim, and Michael W. Toffel. "Driving Decarbonization at BMW." Harvard Business School Case 123-008, October 2022.
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About The Authors

Shirley Lu

Accounting and Management
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George Serafeim

Accounting and Management
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Michael W. Toffel

Technology and Operations Management
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Related Work

    • December 2022
    • Faculty Research

    Driving Decarbonization at BMW - Video Supplement

    By: Shirley Lu, George Serafeim and Michael W. Toffel
    • November 2022
    • Faculty Research

    Driving Decarbonization at BMW - Teaching Note

    By: Shirley Lu, George Serafeim and Michael W. Toffel
    • December 2022
    • Faculty Research

    Driving Decarbonization at BMW - Spreadsheet Supplement

    By: Shirley Lu, George Serafeim and Michael W. Toffel
Related Work
  • Driving Decarbonization at BMW - Video Supplement By: Shirley Lu, George Serafeim and Michael W. Toffel
  • Driving Decarbonization at BMW - Teaching Note By: Shirley Lu, George Serafeim and Michael W. Toffel
  • Driving Decarbonization at BMW - Spreadsheet Supplement By: Shirley Lu, George Serafeim and Michael W. Toffel
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