Publications
Publications
- October 2022
- HBS Case Collection
Driving Decarbonization at BMW
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.