Promotion of the sustainable development has become an important element of any business strategy of most global companies. BMW is not an exception as it values its status of the environmentally-friendly company and shows its desire to keep its position. In order to proceed with the discussion of the environmental threats that arise before the organization, one should look at the risks are defined by the state bodies in the environmental policies. It is clear that the reduction of CO2 emissions poses the major focus for companies and state bodies in view of the commitments of the signatories to the Kyoto Protocol. Given this fact, BWM is also obliged to take measures in order to decrease flow of these emissions. The company understands that following of the environmental strategy will attract more customers and assist with the promotion of the positive image of the organization in the automobile industry. However, there are several challenges pertaining to the proper implementation of this strategy.
The first environmental challenge is referred to the fact that the company has to achieve 0% of CO2 emissions in its production lines. From one perspective, it seems unachievable in reference to the current performance of the company. Moreover, BMW Group is still looking for solutions that might be used so to achieve this goal. The company can not ignore this objective due to the fact that the governments of the most countries push companies to contribute to the reduction of the emissions. In case any company is not capable to achieve necessary level of emissions, this organization is widely criticized in media resources. Given the fact that BMW Group can not afford itself any damage of the reputation, it should find solution for solving of the environmental issues (Moore, 2012).
BWM Group is interested in the promotion of the environmental development and sustainability since the end of the twentieth century. It sponsors three-dimensional approach to the realization of the sustainability, where environmental issues pose the major subject of the concern. In order to alleviate several environmental issues and threats, BMW Group initiated operation of methane gas – to – energy project in collaboration with Palmetto Landfill. The company succeeded to proceed methane gas in new way, while there is still a high level of CO2 emissions. From this perspective, the Environmental Protection Agency regularly approaches BMW Group with request to find solution for this problem. Furthermore, BMW developed Solar Panel Programs as an element of green initiative and policy of the company (Calvert, n.d.).
The mission of the organization contains an evidence that the leadership of the company takes care of the environment. It states: “New ideas don’t just affect the company itself. They help us fulfil this responsibility and realise our vision” (BMW Group, 2017). Consequently, the company has more opportunities to be used for the resolution of the environmental problems, while threats are shared between all business units that are present in the automobile industry. The company succeeded to achieve rather significant progress in the advancement of the environmental responsibility towards its customers. In particular, there are following indicators in the reduction of the use of natural resources:
Water consumption – 55%
Energy consumption – 66%
Industrial wastewater – 65%
Waste disposal about 88% (“Environmental Responsibility | BMW US Factory”, 2017).
The company maintains environmental protection and uses environmental guidelines in order to show its attitude to the importance of this issue for the positive development and growth of the modern community. According to the environmental protection of BMW Group, the organization uses resources in responsible way. BMW Group relies on the international environmental charter that is signed by all subsidiaries. Under the terms of this chapter, the company should invest resources in the creation of the environmentally-friendly and sustainable environment. No one can not notice efforts of the organization in search of lightweight materials, development of more efficient engines and production of innovations. All these steps should assist to the company in reduction of the energy consumption. Pursuit of the environmental sustainability is an inherent element of the corporate strategy of the organization. Achievement of this strategy shows contribution of the company to the economic objectives and goals. Furthermore, the leadership of the organization accepts the fact that absence of solid environmental strategy will cause damage to the performance of the organization. In addition, the managers of the organization intend to avoid similar scandal that occurred with VW Group. Some years ago BMW Group was also suspected in fraudulent actions due to the difference in test and road performance of the car. The outcomes of the performances show different levels of emissions, while the Environmental Agency could not find exact level of emissions. However, this discovery did not lead to any further investigation as the company proved its status and provided detailed overview of the rest results. Consequently, the organization builds environmentally sustainable and friendly houses where staff of the company should work at the corporate goals and objectives of the organization. These actions form the elements of the environmental strategy.
In conclusion, it is possible to state that BMW Group responds to its environmental threats and risks in reasonable manner. The organization takes advantage of its opportunities and focuses on them. Hence, this strategy looks effective and attractive for other business units in the same industry. It is clear that the other producers of the vehicles should follow approach of BMW Group with reduction of CO2. In this case, one may expect that certain progress in the reduction of these emissions will be achieved.
- BMW Group. (2017). BMW Group. Bmwgroup.com. Retrieved 6 November 2017, from https://www.bmwgroup.com/en/innovation/society-and-environment.html
- Calvert, J. BMW Embraces Environmental Sustainability with Vigor : Our Upstate SC. Ourupstatesc.info. Retrieved 6 November 2017, from http://www.ourupstatesc.info/bmw-embraces-environmental-sustainabilit.php
- Environmental Responsibility | BMW US Factory. (2017). Bmwusfactory.com. Retrieved 6 November 2017, from https://www.bmwusfactory.com/sustainability/corporate-sustainability/environmental-responsibility/
- Moore, K. (2012). Transcript: BMW’s approach to environmental responsibility. The Globe and Mail. Retrieved 6 November 2017, from https://beta.theglobeandmail.com/report-on-business/transcript-bmws-approach-to-environmental-responsibility/article534986/?ref=http://www.theglobeandmail.com&