What incentives or rewards accrue to companies

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BMW's environmental stewardship

German automaker BMW recently achieved the highest score ever given in the automobile industry in the Carbon Disclosure Project (CDP). Scoring 96 out of a possible 100 points, the company is listed in both the Carbon Disclosure Leadership Index (CDLI) and the Carbon Performance Leadership Index.22 "Our corporate sustainability strategy is based on three pillars: economics, environment, corporate social responsibility," stated BMW chairman Dr. Norbert Reithofer. "Climate protection serves an important role in this strategy. As part of our focus on climate protection, we continue reducing vehicle and production facility emissions around the world. By protecting the climate, society as a whole also benefits and it just makes good business sense for the BMW Group." The CDP acknowledgment is one of the most prestigious ratings in the realm of sustainability. The CDLI analyses the 500 international companies in the FTSE Global Equity Index Series, and only the top 10 percent make it onto the list. BMW's rating further emphasized their long-term efforts in climate protection along the entire value chain. This rating also reinforces BMW's decision to embrace sustainability as part of its corporate strategy. The CDP listing comes on the heels of the designation BMW received as the industry leader in the Dow Jones Sustainability Indexes, making it the world's most sustainable automobile manufacturer for the seventh year running. The company continues to win such recognition as a result of the development of fuel-saving, alternative vehicle concepts, clean production processes, and green recycling practices. They take the concept of sustainability beyond climate concerns extending well beyond their plants. BMW is also involved in promoting education and road safety worldwide, as well as in projects to fight HIV and AIDS.

Questions :

Why do you believe BMW invests so heavily in environmental stewardship and sustainability compared to its rivals?
In your view, what are the limits of responsibility for global firms like BMW (or oil companies or mining companies, etc.) doing business around the world?
What incentives or rewards accrue to companies that step forward and take responsibility for improving the environment? What penalties?
Global companies like BMW typically do business on a country-by-country basis where they have strategic partnerships. How, then, can companies take concrete action to contribute to global issues that transcend national boundaries (e.g., global warming, water pollution)?

Reference no: EM133246700

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