- On track for CO2-reduction along the entire value chain and
focus on long-term decarbonisation targets
- CO2-reduced steel, aluminium and recycled materials drive
supply chain decarbonisation
- Production makes progress in renewable energies and
circularity
- Human rights assessment of critical raw materials is moving
forward and ahead of schedule
- People are at the centre of the just transition with the
Sustainable People Plan and respect for human rights
- Digital Trust as a key driver of sustainable and competitive
digital business
At its third annual ESG Conference, Mercedes-Benz demonstrates
commitment to achieving ambitious and measurable goals. Driven by
tomorrow and a clear focus on the entire value chain, Mercedes‑Benz
firmly embeds sustainability considerations in the daily business.
One aspect is the continued global expansion of the electric
passenger car portfolio, targeting an up to 50 percent share of
xEVs in the new vehicle fleet in the second half of the decade. And
by the end of the decade, the aim is to reduce production CO2
emissions by 80 percent1. Furthermore, the ambition is to run all
fully owned Mercedes-Benz production sites worldwide on 100 percent
renewable energies by 2039. By pairing strategic focus with
tactical flexibility in this regard, the company remains on course
towards a sustainable future on an ecological and economic level.
Also, relevant initiatives with respect to social and governance
aspects throughout the whole company contribute to a holistic
sustainability approach. This includes various measures with which
Mercedes-Benz contributes to a "Just Transition", for example our
sustainable people plan and several measures, strengthening human
rights in the company and along the value chain. By establishing a
coordination role for sustainability in the Board of Management in
2023, Mercedes-Benz has strengthened its governance approach to
orchestrate its company-wide sustainability management even more
systematically and consistently.
“Mercedes-Benz has always been driven by a
belief in tomorrow. This pioneering spirit is key so we can play
our part in climate protection and to make our business even more
sustainable in all respects. We continue to strive for net
carbon-neutrality by 2039, and we believe that ESG principles
enable long-term value creation.” Ola Källenius, Chief Executive
Officer of Mercedes-Benz Group AG.
“Sustainability and ESG are integral to every
aspect of our business, especially in times of transformation. The
goal of our sustainability coordination at the Board of Management
level is to ensure that all sustainability activities are
orchestrated even more target-oriented so that we can consistently
implement our sustainable business strategy. This also underlines
our holistic approach, which covers the entire spectrum of ESG:
From decarbonisation to social topics such as human rights and
governance aspects, for example the responsible use of future
technologies.” Renata Jungo Brüngger, Member of the Board of
Management, responsible for Integrity, Governance &
Sustainability, Mercedes-Benz Group AG.
“Science and policy clearly show that those who
stay on sustainability tracks will be the winners in the
technology, market and profitability competition.” Prof. Dr. Johan
Rockstr�m, Director of the Potsdam Institute for Climate Impact
Research and Professor in Earth System Science at University of
Potsdam
Focus on decarbonisation and sustainable products is on
track
At Mercedes-Benz decarbonisation continues to be driven by the
company’s Ambition 2039, with the aim of making the fleet of new
vehicles net carbon-neutral along the entire value chain and over
the entire vehicles’ lifecycle by 2039. Major achievements in 2023
include a reduction in lifecycle carbon emissions to 46.3 tonnes
per vehicle2 (2020: 49.7 tonnes). Upcoming model generations will
accelerate this significantly, with the aim of reducing net
lifecycle carbon emissions up to 50 percent per passenger car by
the end of the decade. This starts with the development process,
which is why the new ‘eCampus’ at the Untertürkheim plant will play
a key role in shaping the transition. Due for inauguration in
summer 2024, it consolidates the company’s comprehensive
development expertise across the entire electric drive
spectrum.
CO2-reduced steel and aluminium and recycled materials drive
supply chain decarbonisation
Mercedes-Benz is making strong progress in decarbonising its
supply chain. One example is CO2-reduced steel processed using
electric-arc furnaces (EAF) powered by renewable energy. The
company is expanding its use in the USA and Europe. For example,
Mercedes-Benz and Nucor agreed on the delivery of CO2-reduced steel
for its production plant in Tuscaloosa, Alabama. In addition, the
supplier Steel Dynamics is already delivering CO2-reduced steel to
the US production site since last year. This steel contains a high
share of recycled scrap content and is being produced with 100
percent renewable energy. Likewise, at least one third of the
primary aluminium in MMA models will be produced using electricity
from renewable sources in Europe. This can lead to CO2 savings of
at least 40 percent, compared to aluminium normally used in Europe.
Use of recycled aluminium is also increasing. A special alloy used
by the company’s in-house foundry in Mettingen contains a minimum
of 25 per cent post-consumer scrap. Its carbon footprint of 2.8 kg
CO2 per kg of aluminium is around 70 percent lower than the
European average for conventional aluminium. Another important
planned cooperation in recycled aluminium from end-of-life vehicles
is with TSR and Novelis. Using 86 percent content of TSR130
post-consumer recycled aluminium, it reduces CO2 emissions by 73
percent.
In line with the company’s ‘Design for Circularity’ approach,
work continues to increase the share of secondary raw materials in
series-production vehicles. The aim is to reduce the use of primary
resources by 40 percent by 2030 compared to a conventional
approach. By 2030, the share of secondary raw materials for the
passenger car fleet is to be increased to an average of 40 per
cent. For instance, the front and rear bumpers of the first MMA
vehicle use nearly seven kilograms of mechanical recyclate – a
share of 35 percent.
Concept CLA Class points the way with 40 percent smaller carbon
footprint
At IAA 2023, Mercedes-Benz presented the Concept CLA Class,
offering an insight into the family of vehicles based on the
upcoming MMA platform. Along the entire value chain, the carbon
footprint of MMA vehicles will be 40 percent lower compared to the
preceding architecture. The MMA platform also offers benefits
beyond the vehicle through bidirectional charging. This enables the
vehicle to function as part of the electricity grid either
Vehicle-to-Home (V2H) or Vehicle-to-Grid (V2G). For example, it can
supply the home during a power cut. Likewise, it can store excess
solar energy during the day then feed it back into the grid at
night. Through the option of bidirectional charging at home,
Mercedes-Benz is fulfilling the desire of many customers to combine
their own individual mobility with a more sustainable way of
living. The use of bidirectional charging may be subject to
market-specific conditions subject to legislation and the
requirements of energy suppliers.
Widely accessible charging network drives future of electric
mobility
Mercedes-Benz is contributing to the development of a widely
accessible charging infrastructure wherever possible. Already
today, Mercedes-Benz customers have access to over 1.6 million
charging points worldwide via Mercedes me Charge. In addition,
Mercedes-Benz is making a decisive contribution to the development
of a worldwide charging infrastructure by setting up its own
Charging Network as well as joining forces with other car
manufacturers in several charging joint ventures. In total, around
45,000 charging points will be built by the end of the decade.
Green Charging as key aspect within public charging
solutions
In line with its infrastructure initiatives, Mercedes-Benz is
promoting the use of electricity from renewable energies. Green
Charging3 is an integral part of Mercedes me Charge and within its
own Mercedes-Benz Charging Network. Since 2024, Green Charging uses
Energy Attribute Certificates for Mercedes me Charge that are
generated exclusively from wind and solar plants which are less
than six years old. If possible, the certificates are bought and
redeemed in the same country where the customer has charged.
Thereby Green Charging contributes to the further expansion of
renewable energies and is an important step on the road to
CO2-neutrality.
Production makes progress in renewable energies
The Mercedes-Benz production network is in execution mode to
achieve its ambition to run all plants worldwide on 100 percent
renewable energy by 2039. During 2023, CO2 emissions in production
fell further – by a total of 72 per cent compared to 20184.
Regarding renewable energies Mercedes-Benz Cars increased the share
to 47 percent. The company is thus well on track to achieve its
target CO2 reduction of 80 percent and to increase its renewable
energy share to 70 percent (Cars) or 80 percent (Vans) at own
production sites by 2030. Ongoing initiatives include the on-shore
wind farm in Papenburg (Germany)5 and the Windanker off-shore wind
farm in the Baltic Sea6. Further expansion of solar power is
likewise underway. To balance the volatility of renewable energy
generation with electricity consumption, Mercedes-Benz is also
expanding its energy storage facilities. Entering a new partnership
with the German cleantech company CMBlu Energy AG, its first
Organic SolidFlow battery storage facility is scheduled for 2025 at
its Rastatt (Germany) plant. The technology offers high potential
in terms of scalability and sustainability.
Circularity projects underway include battery recycling, water
multi-reuse and waste recycling
Phase one of the Mercedes-Benz battery recycling plant in
Kuppenheim is currently ramping up. This phase will include the
shredding facility for initial mechanical processing of end-of-life
batteries. Phase two, the hydrometallurgy facility, is scheduled to
start this autumn, subject to the outcome of promising discussions
with the public sector. Regarding water multi-reuse, Mercedes-Benz
Cars implemented its first project at its Sindelfingen plant,
saving up to 350.000 cubic meter per year and is evaluating further
projects. Mercedes‑Benz Cars achieves an overall recycling and
recovery rate regarding waste material from production of
approximately 99 percent in its own production plants
worldwide.
Commitment to Just Transition: Mercedes-Benz places people at
the centre of the transformation
Decarbonisation is one of the most important transformation
goals at Mercedes-Benz. At the centre of this transformation,
however, are the people who actively shape this transition or are
affected by it. Therefore, Mercedes-Benz drives a Just Transition
as an integral part of its sustainable business strategy with a
focus on people, human rights, as well as its policy
engagement.
Shaping transformation with the Mercedes-Benz Sustainable People
Plan
Mercedes-Benz is shaping the transformation in a
future-oriented, socially acceptable and responsible manner with
its HR-Strategy – the ‘Sustainable People Plan’. With its three
pillars – Re-Shape, Re-Skill and Re‑Charge – the company seeks to
empower its employees to stay successful in a digital and electric
future. Re‑Shape focuses on the streamlining of the organization
based on new products, technologies and fields of competence and
the socially responsible transformation of the company. With
Re-Skill, Mercedes-Benz cultivates learning and future-ready
development through training and qualification. As part of its
initiative “Turn2Learn”, Mercedes-Benz plans to invest more than €2
billion in the qualification of its global workforce until 2030. In
2023, the total global qualification time increased year-on-year by
around 19 percent to more than 2.3 million hours. In the pillar
Re-Charge, Mercedes-Benz nurtures an attractive and inspiring
working environment that values diversity, equity and inclusion.
This also includes the ambition of 30 percent women in senior
management positions worldwide in 2030. By the end of 2023, the
company with the star had already reached a share of 25.7 percent
of female senior managers and is therefore well on its way.
The scope of the transformation is particularly noticeable in
the “Powertrain Network” and the associated areas. To even better
inform, engage and support employees in these areas in the
transition, Mercedes‑Benz has therefore launched the initiative
TransformatiON in 2022. As part of this initiative, a new app was
rolled out at the end of September 2023 to keep employees in the
powertrain network up to date on the transformation. At various
locations, additional workshops, guided tours, and market stalls
were offered to show employees different perspectives how to
develop, how to participate in change, and to provide them with
insights into future job profiles.
Human rights assessment of critical raw materials is moving
forward and ahead of schedule
The effects of the transformation must also be taken into
consideration along the value chain. Therefore, Mercedes-Benz is
dedicated to actively tackling human rights risks along its supply
chains. The company is ahead of schedule in its assessment of 24
critical raw materials. By the end of 2023, it had achieved 57
percent of the overall assessment process. The Raw Material Report
published in November 2023 advances transparency, with 15 raw
materials now reported (vs. six in 2022). Community and indigenous
rights have been prioritized across materials. For that reason, the
company focuses and engages directly with people on the ground.
Mercedes-Benz is also joining forces with other stakeholders to
tackle systemic risks that cannot be solved by a single company
alone, for example by supporting a cross-company grievance
mechanism starting in Mexico this year.
Adaptive governance builds Digital Trust
Digital products and services are driving the transformation.
The trust of our customers', employees' and other stakeholders is
paramount to the success of digital innovation, particularly in an
age shaped by rapid technological change and regulatory dynamics.
Mercedes-Benz is committed to the responsible and secure handling
of data to build ‘Digital Trust’. In addition, the company applies
its established set of AI principles: Responsible Use,
Explainability, Protection of Privacy and Safety and Reliability.
Utilizing “Adaptive Governance”, Mercedes-Benz wants to drive
innovation, meet the requirements of regulatory dynamics, and
foster Digital Trust at the same time. This approach enables the
company to find the right balance in the constant challenge between
risk management and business innovation.
Focus on sustainable finance and continuous upgrades in ESG
ratings
Sustainable finance is a core aspect of the Mercedes-Benz
sustainable business strategy. With it, the company continues to
demonstrate resilience, profitability and growth in a challenging
environment. Financing needs for the transformation are covered by
the current vehicle portfolio. Meanwhile, the cost base is able to
deliver strong performance during the transition and in an electric
world. Regarding the EU Taxonomy, the taxonomy-aligned revenue
share for cars and vans increased to 14 percent in line with our
xEV sales and taxonomy-aligned capital expenditure increased 29
percent year over year. Thanks to this development and the efforts
of the entire Mercedes-Benz team worldwide, the company has seen
continuous upgrades in its ESG rating results since 2019.
IT as significant contributor to carbon reduction by 2025
Mercedes-Benz IT aims to be net carbon-neutral by the end of
2025 in its own operational business measured in the areas data
centres, workplace and cloud. Recent initiatives have improved the
energy efficiency of the global data centres by up to 30 percent
since 2022. One example is the Nordics Data Centre in Norway, which
uses an innovative natural cooling system and is powered entirely
by green energy. In the workplace, conversion to energy-efficient
equipment, such as laptops, is expected to deliver an improvement
in carbon efficiency of up to 30 per cent. And Mercedes-Benz is
working closely with its cloud providers to operate its cloud
services entirely using renewable energy by the end of 2025.
The livestream (1:00 p.m. CET) and the recording can be found on
the website:
https://group.mercedes-benz.com/esg-conference-2024
Further information about Mercedes-Benz is available at
www.mercedes-benz.com. Press information and digital services for
journalists and multipliers can be found on our Mercedes-Benz Media
online platform at http://media.mercedes-benz.com. Learn more about
current topics and events related to Mercedes-Benz Cars & Vans
on our @MB_Press X channel at www.twitter.com/MB_Press.
Mercedes-Benz AG at a glance
Mercedes‑Benz AG is part of the Mercedes‑Benz Group AG with a
total of around 166,000 employees worldwide and is responsible for
the global business of Mercedes‑Benz Cars and Mercedes‑Benz Vans.
Ola Källenius is Chairman of the Board of Management of
Mercedes‑Benz AG. The company focuses on the development,
production and sales of passenger cars, vans and vehicle-related
services. Furthermore, the company aspires to be the leader in the
fields of electric mobility and vehicle software. The product
portfolio comprises the Mercedes Benz brand with Mercedes‑AMG,
Mercedes‑Maybach, and G‑Class with their all-electric models as
well as products of the smart brand. The Mercedes me brand offers
access to the digital services from Mercedes‑Benz. Mercedes‑Benz AG
is one of the world's largest manufacturers of luxury passenger
cars. In 2023 it sold around two million passenger cars and 447,800
vans. In its two business segments, Mercedes‑Benz AG is continually
expanding its worldwide production network with more than 30
production sites on four continents, while gearing itself to meet
the requirements of electric mobility. At the same time, the
company is constructing and extending its global battery production
network on three continents. As sustainability is the guiding
principle of the Mercedes‑Benz strategy and for the company itself,
this means creating lasting value for all stakeholders: for
customers, employees, investors, business partners and society as a
whole. The basis for this is the sustainable business strategy of
the Mercedes‑Benz Group. The company thus takes responsibility for
the economic, ecological and social effects of its business
activities and looks at the entire value chain.
1 Scope 1 & 2, compared to 2018 2 concerning vehicle
lifecycle (value chain stages: procured goods, production,
logistics, fuel and energy generation, driving operation,
disassembly and treatment processes) 3 In Europe, the US and
Canada, Mercedes-Benz ensures that an equivalent amount of
electricity from renewable energy sources is fed into the power
grid for charging processes in Mercedes me Charge, if no
electricity from renewable energy sources is provided. 4
Mercedes-Benz Cars, Scope 1 & 2 5 Power Purchase Agreement
(PPA) with UKA 6 Power Purchase Agreement (PPA) with Iberdrola
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240320826741/en/
Miriam Weiss, phone: +49 (0) 160 86 28 913,
miriam.weiss@mercedes-benz.com Alexander Helf, phone: +49 (0) 176
30 91 6593, alexander.helf@mercedes-benz.com Andrea Berg, phone: +1
917 667-2391, andrea.a.berg@mercedes-benz.com
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