Andreas Harms, Environmental Protection, BMW South Africa March 2015 CORPORATE SUSTAINABILITY THROUGHOUT THE VEHICLE LIFECYCLE.

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1 Andreas Harms, Environmental Protection, BMW South Africa March 2015 CORPORATE SUSTAINABILITY THROUGHOUT THE VEHICLE LIFECYCLE.

2 IMPLEMENTATION OF CORPORATE SUSTAINABILITY THROUGHOUT THE VEHICLE LIFECYCLE. Recycling Concepts Recycling End-of-Life Recovery Design for Recycling Research and Development Efficient Dynamics Design for Environment / Life Cycle Engineering Clean Production Production Sustainability Standards for Suppliers Product Utilization BMW Group Page 2

3 BMW i8 AND i3.

4 25% OF THE WEIGHT OF THERMOPLASTICS USED IS REPLACED BY RECYCLED/RENEWABLE RAW MATERIALS. Recycled materials Savings 80 kg CO 2e Renewable raw materials Savings 40 kg CO 2e BMW Group Page 4

5 80% OF THE ALUMINIUM USED IS EITHER RECYCLED OR PRODUCED WITH RENEWABLE ENERGY Secondary aluminium Primary aluminium produced with renewable energy 2 kg CO 2e Conventional primary aluminium 5 kg CO 2e 10 kg CO 2e BMW Group Page 5

6 EXTERNAL RECOGNITION AS ONE OF THE MOST SUSTAINABLE AUTOMOBILE MANUFACTURERS. - Dow Jones Sustainability Indexes: Sector leader The only automotive company continuously listed since FTSE4Good: Listed in FTSE4Good Index. - Carbon Disclosure Project: Industry leader 2011, 2012, 2013 and One of four companies across sectors listed on CPLI for five consecutive years. - Oekom: Corporate Responsibility Rating oekom, Status Prime. BMW Group Page 6

7 PLANT ROSSLYN. 3 SERIES (F30). Petrol Diesel LHD RHD XDrive BIW PAINT ASSEMBLY TOTAL VEHICLE Page 7

8 PLANT ROSSLYN. 84% OF CARS DESTINED FOR EXPORT MARKETS. USA 48.7% China 5.9% Japan 13.7% Africa 0.1% India 3.3% East Asia 4.4% Taiwan Hong Kong Singapore 2013 Figures South Africa 15.9% Australia /New Zealand 8.1% Page 8

9 PLANT ROSSLYN. SUPPLY CHAIN. NAFTA BCC Suppliers Page 9

10 PLANT ROSSLYN. SUPPLIER NETWORK SOUTH AFRICA. Page 10

11 Andreas Harms, Environmental Protection, BMW South Africa March 2015 WASTE STRATEGY. PLANT ROSSLYN STEPS TOWARDS ZERO WASTE

12 WASTE STRATEGY. REDUCE RE-USE RECYCLE. Reduce Avoid / minimize waste by planning and control Re-use Recycle Recover Dispose Re-use waste, e.g. airbag cages and bentonite Sell a clean waste stream to a recycler Substitute a natural material with waste, e.g. paint sludge as fuel As a last resort, dispose of the waste to landfill. Page 12

13 BMW Plant Rosslyn BMW BMW Plant Spartanburg* BMW Werk Dingolfing BBA Dadong* BMW Plant Thailand BBA Tiexi BMW Werk Regensburg BMW Werk Leipzig BMW Werk Berlin BMW Plant Oxford BMW Plant Rosslyn BMW BMW Werk Dingolfing BMW Plant Spartanburg* BBA Dadong* BMW Plant Thailand BBA Tiexi BMW Plant Oxford BMW Plant Chennai BMW Werk Landshut BMW Werk Berlin WASTE MANAGEMENT. RECYCLING VOLUME. Top10 Cardboard/Paper [t/month] Top10 Wood [t/month] Feb * Estimate Source: BMW Group Database ABIS Page 13

14 WASTE MANAGEMENT PLANT ROSSLYN. DISPOSAL TO LANDFILL. [kg / unit] (incl forecast) Abfall Waste zur to Beseitigung landfill target ZIEL (without ohne regulated regulated Waste waste) Abfall zur Beseitigung IST Waste (kg/fzg) to landfill actual (kg/unit) 5 Waste to landfill target (with regulated waste) Page 14

15 WASTE MANAGEMENT PLANT ROSSLYN. CHALLENGES CHALLENGE: LIMITED SPACE AT THE WMC* OPERATIONS MANAGEMENT * WMC: WASTE MANAGEMENT CENTRE Page 15

16 WASTE MANAGEMENT PLANT ROSSLYN CHALLENGES 2013 CHALLENGE: RE-USE (AIRBAG CAGES, BENTONITE) ACTION: SEGREGATE AT SOURCE 2014 AIRBAG CAGES Page 16

17 WASTE MANAGEMENT PLAN STEP 0 WMC OPERATIONS SHIFT HANDOVER ACTION DONE: REDUCE SYSTEM FILL SET SHIFT TARGETS JUST IN TIME PLAN AND IMPLEMENT RIGHT TOOLS REVIEW AND IMPROVE WASTE STREAMS. Waste Strategy, PA-74, March 2014 Page 17

18 WASTE MANAGEMENT PLAN STEP 1 SYMPTOMS 2014 ACTION: RE-INTRODUCE A SORTING TABLE OPERATION ADD TWO WORKERS TO WMC SORTING TABLE HALVE THE GENERAL WASTE AT THE COMPACTOR -50% GENERAL WASTE COMPACTOR Page 18

19 WASTE MANAGEMENT PLAN STEP 2 ROOT CAUSE GENERAL WASTE TO LANDFILL ACTION: REDUCE CONTAMINATION OF PRODUCTION WASTE 5 INCREASE QUANTITY AND QUALITY OF WASTE BIN INSPECTIONS IN PRODUCTION FEEDBACK TO PRODUCTION MANAGEMENT ON PERFORMANCE RECYCLING BANKS IN PRODUCTION Page 19

20 Route Train Concept WASTE MANAGEMENT PLAN STEP 3 SUSTAINABLE PLAN REDUCE RE-USE RECYCLE 1. Paint Waste 2. Production Waste Concept Filtration Liquid prevention Liquid removal Centrifuge stability Waste to Energy (cement kilns) 3. Non Production Waste Corporate recycling Culture, discipline Integrated recycling stations Awareness (Early Learning Centre) 5. Legal Compliance Waste License implications Auditing Segregation at source Waste stream mapping Just in time concept Line side interfaces (handling/removal) Exchange empties with fullies (parts) Spatial Planning & Implementation 4. Waste Management Capacity / Efficiencies / Tools Adequate manpower Sunken conveyor Cardboard baler with hogger Separation wood/cardboard Baler for plastics Compacting of styrofoam Bin liners and stickers Page 20

21 WASTE MANAGEMENT PLAN SUMMARY STEP 0: OPERATIONS MANAGEMENT AT WMC STEP 1: FIGHT SYMPTOMS STEP 2: ADDRESS ROOT CAUSE STEP 3: SUSTAINABLE PLAN Page 21

22 WASTE MANAGEMENT SOLUTIONS SUNKEN CONVEYOR CARBOARD BALER PLASTICS BALING Page 22

23 WASTE MANAGEMENT SOLUTIONS ENGINE CRUSHING PARTS DESTRUCTION Page 23

24 WASTE MANAGEMENT SOLUTIONS TYRES Environmental Protection Clean Production RIMS PUNCH Waste Strategy, PA-74, March 2015 Page 24

25 WASTE MANAGEMENT SOLUTIONS Environmental Protection Clean Production COMPACTED STYROFOAM HEAT / PRESSURE COMPACTOR Page 25

26 WASTE MANAGEMENT SOLUTIONS MATERIAL HANDLING Environmental Protection Clean Production WEIGHBRIDGE WHEELIE BIN TRAIN Waste Strategy, PA-74, March 2015 Page 26

27 WASTE MANAGEMENT CHALLENGES UNION BUILDINGS CULTURE IN PUBLIC UNDESIRABLE BEHAVIOUR Page 27

28 WASTE MANAGEMENT SOLUTIONS CANTEENS, KITCHENS HYGIENIC DESIGN Waste Strategy, PA-74, March 2015 Page 28

29 WASTE MANAGEMENT SOLUTIONS PRODUCTION OFFLINE FRAME FOR INTEGRATION Waste Strategy, PA-74, March 2015 Page 29

30 WASTE MANAGEMENT SOLUTIONS GLAS S OUTSIDE MAIN GATE ROBUST DESIGN PUBLIC RECYCLING BANK Page 30

31 SUSTAINABILITY REPORT ENVIRONMENT THANK YOU ENVIRONMENTAL BMW SOUTH AFRICA Andreas.Harms@bmw.co.za Tel