As part of the BMW Group's decarbonization of logistics packaging, European plants will use more recycled materials in packaging. For newly signed contracts, the proportion of recycled materials in reusable logistics packaging will almost double this year, from around 20% to more than 35%. It is worth noting that the use of alternative sustainable materials, the reduction of disposable packaging, the introduction of lightweight packaging in certain regions and the reduction of transportation volume will also help reduce carbon emissions.
The BMW Group is monitoring the impact of various measures through the Packaging Carbon Emission Calculator. The Group's overall goal is to reduce CO2 emissions per vehicle in the supply chain by 20% (compared to 2019).
"Our principle of 'rethinking, reducing, reusing and recycling' also applies to logistics packaging. We are continuously reducing resource usage and thus reducing carbon footprint through innovative strategies. We hope to get BMW iFACTORY up and running as soon as possible." Michael Nikolaides, head of BMW Group's production network and logistics, said, "iFACTORY focuses on flexibility, efficiency, sustainability and digitalization around BMW's global production network strategic vision of lean management, green environmental protection and digitalization. Green means using the latest technology to create a production process that uses the least resources."
Recycled materials replace new plastic materials in packaging
Currently, BMW's newly developed EPP packaging already contains 25% recycled materials. EPP is the abbreviation of Expanded polypropylene, which is mostly used in special packaging containers for pressure resistance, cushioning and insulation. EPP is suitable for the packaging of all components, enabling them to be installed and transported. The BMW Group needs about 360,000 EPP packaging containers each year, and using 25% recycled materials means that nearly 280 tons of carbon dioxide can be saved each year.
The Group also plans to increase the proportion of recycled materials. The first pilot program for 100% recycled materials is currently underway. If these tests are successful, this packaging solution will become standard for new contracts from 2024.
By using covers and so-called minivans, the Group can save an additional 680 tons of carbon emissions per year, 50% of which are recycled content. Currently, these measures are mainly concentrated in the European market, based on the existing waste management situation and available recycling infrastructure. The BMW Group is working to expand operations to Mexico, the United States and China.
Reduced transport volumes
The BMW Group is launching a product that will have an even greater impact on emissions: a folding large cargo carrier. Starting this year, the Group will replace steel pallet cages with folding plastic pallets made from more than 90 percent recycled material. They work in a similar way to the foldable shopping boxes that most people are familiar with: When they are empty, they can be folded up for easier transport. Using 15,000 of these new containers will save around 3,000 tons of CO2 per year.
Alternative materials have promising prospects
BMW believes that "the sustainable development of packaging is immeasurable." For example, the group has launched a pilot project to use bio-based materials to replace petroleum-based polyethylene and polypropylene (PE and PP), and is investigating whether recycled household appliance materials can be used in packaging and considering how to use them. In the long run, BMW hopes to use other materials to replace raw materials.