BMW pledges to source raw materials ‘ethically’

BMW has set a precedent for other car-makers by signing an agreement to source raw manufacturing materials for the cars it produces from environmentally ethical suppliers.

In a move that is likely to be followed by other brands, the German car-maker announced overnight that it has joined the Initiative for Responsible Mining Assurance (IRMA).

In effect, the move is designed to support more responsible practices from the mining sector, a key foundation of the car-making industry. The IRMA group keeps mining companies accountable by assessing their pollution control, land reclamation, health and safety and human rights, among other areas.

The subsequent IRMA standard ensures more transparency in the supply chain and encourages end users including car-makers to adopt environmentally ethical materials.

“Sustainability is an important aspect of our corporate strategy and we are fully aware of our responsibility in mineral value chains.” said Dr Andreas Wendt, a member of the board of management of BMW AG, which includes BMW, BMW Motorrad, MINI and Rolls-Royce.

“For the BMW Group and its stakeholders, it is of the utmost importance that environmental and social standards are adhered to throughout the entire value chain. Raw materials form the basis for every industrial production process and our need will continue to grow accordingly.

“We believe that IRMA, with its ambitious certification standard, will contribute to enhancing responsibility in global value chains and improving environmental and social performance.”

BMW's pledge could have direct ramifications for Australian-sourced lithium suppliers, after the German car-maker last year announced a €540 million ($A875m) deal to secure Western Australian lithium via Chinese firm Ganfeng Lithium.

At the time of the announcement, Ganfeng said it extracted lithium by mining so-called hard-rock deposits “under the strictest sustainability standards".

Both lithium and cobalt continue to be the subject of ethics questions, particularly over using children as miners in impoverished parts of Africa.

Elsewhere, BMW has made headlines in ethically sourced materials by using natural, renewable and sustainable materials for sections of the i3’s interior.

The latest development comes as industry officials continually grapple with the best environmental direction for the car-making industry moving ahead.

Last month, Mazda’s European research director Christian Schultze Automotive News that long-range batteries used in electric cars are worse for the environment that some equivalent ICE products.

Using figures based on European electricity generation from 2016 (which admittedly puts less emphasis on future zero-emissions power), Mazda determined that a 95kWh battery (close to what you'd see in Tesla's higher-end Model S and X) would require more emissions from the very start due to both the larger pack and extended use while driving.

Schultze’s sentiments help to explain why Mazda is using a small battery for its new MX-30 – because it is deemed to be "responsibly" sized to have an overall CO2 emissions footprint (including manufacturing and energy consumption) comparable to a diesel Mazda3 hatchback, even after you replace the battery 160,000km into ownership.

IRMA’s ‘Standard for Responsible Mining’ assessment has been devised by mining industry, not-for-profit organisations, unions, businesses and local communities.

IRMA executive director Aimee Boulanger encouraged other car-makers to follow BMW’s lead.

“The auto sector is a powerful purchaser of materials that come from mines,” she said.

“We are happy to have the BMW Group join IRMA and we look forward to supporting their commitment to increasing environmental and social responsibility in their supply chains.”