- Corridor Program: Mercedes-Benz and Hydro extend their
strategic partnership to support the long-term development of
communities along the aluminum supply chain in the state of Pará,
Brazil.
- Just Transition: Lighthouse project to create positive
impacts for both people and nature throughout aluminum supply chain
in Brazil.
- Joint efforts: Mercedes-Benz, Hydro and local NGOs form a
steering committee to enhance community involvement in mining
area.
- Decarbonization: In 2022, Hydro and Mercedes-Benz agreed to
work together on a technology roadmap for producing low-carbon
aluminum.
At the New York Climate Week, Mercedes-Benz and Hydro elevate
their strategic partnership by enhancing the vertical integration
of their aluminum supply chain and launching the long-term Corridor
Program for a sustained development in the Amazon. Following their
joint decarbonization roadmap Mercedes-Benz and Hydro signed a
Memorandum of Understanding (MoU) to collaborate with local NGOs
and partners in the state of Pará, Brazil. Their goals include
promoting human rights, generating income for local communities,
fostering biodiversity and low-carbon value chains in the Brazilian
Amazon.
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Mercedes-Benz and Hydro join forces in
the Brazilian Amazon to foster long-term development along their
aluminum supply chain (Graphic: Business Wire)
“In managing our supply chains responsibly, we
concentrate on three goals: The decarbonization of our products,
the promotion of human rights and the focus on more sustainability
over the vehicles' entire life cycle. The joint Corridor Program
manages to connect all three. In close cooperation with our
partners, it has the potential to push the vertical integration of
our supply chain to a new level.” Dr. Gunnar Güthenke, Head of
Procurement and Supplier Quality Mercedes-Benz Cars
The Corridor coalition aims to create a positive impact for the
communities along the 244-kilometer bauxite slurry pipeline
operated by Hydro, which runs through seven municipalities in the
state of Pará, Brazil – from the Paragominas bauxite mine to the
Alunorte alumina refinery in Barcarena. The goal is to engage local
communities along the aluminum supply chain and empower them to
improve their economic, ecological, and social well-being.
Mercedes-Benz is part of the program's governance, helping to
establish necessary structures and build knowledge for sustainable
risk management in raw material supply chains.
The Corridor initiative reflects the company’s commitment to a
"Just Transition": Prioritizing people and human rights along with
responsible policies and community engagement as the
decarbonization of the Mercedes-Benz Group’s business model leads
to significant changes in technology, products, and workforce. The
program has the potential to become a blueprint for the involvement
of local communities and getting vertically engaged in vulnerable
mining areas.
“The joint program with Hydro in Brazil serves
as a model: We are sourcing aluminum with reduced CO2-emissions and
are firmly committed to uphold human rights along our supply chain.
In doing so, we are putting our sustainable business strategy into
practice. A special focus is placed on engaging with the local
communities. This example demonstrates that decarbonization
measures and social considerations can go hand in hand for a
successful sustainable transformation.” Renata Jungo Brüngger,
Member of the Board of Management of Mercedes-Benz Group AG.
Integrity, Governance & Sustainability
“We are excited to further develop our
strategic partnership with Mercedes-Benz, expanding our
collaboration beyond low-carbon product development to create
positive social and environmental impact in the Amazon. Working
together, we aim to lift sustainability throughout our shared value
chain, from mine to end-consumer product, while fostering economic
opportunities and biodiversity conservation in the communities
where we operate.” Eivind Kallevik, President and CEO in Hydro
The program has been rethought from the ground up and is built
on a fundraising concept. While some projects, like scaling up
local farming (Tipitix) or sewing initiatives (Estilo), are already
underway, the Corridor coalition aims for long-term value creation.
Local communities living around the pipeline will identify and
prioritize projects, ensuring they directly benefit their regions.
This approach empowers local stakeholders to foster ownership and
align with the project's overarching goals. This way Corridor
intends to achieve improvements for the local people. Hence,
data-based tracking of effectiveness will be a crucial part of the
governance.
The program will be anchored on three strategic pillars:
- Economic Development: Identifying obstacles to the
economic development and finding solutions to improve the
conditions for raw material value chains in the territory.
- Social Development: Large scale approach to social
development, targeting basic human needs, well-being, and
opportunities. The program will pursue practical ways to implement
improvements to the condition of life in the communities, both in
urban centers but mainly in rural areas (e. g. ongoing TerPaz
program).
- Environment and Biodiversity conservation: Working on
the conservation of biodiversity in the Amazon, required to ensure
positive gains for people and nature. The program will identify
opportunities to reduce degradation of forests as a first target
but with an ambition to contribute to the regeneration of
nature.
The projects will operate in strict compliance with Brazilian
laws and regulations. Moreover, the program will be implemented by
a multi-institutional project organization composed by the
companies and organizations. Partners include (but not limited to)
Hydro Brazil, Alunorte, MPSA, Mercedes-Benz, IPAM*, IMAZON**,
CEA***, Hydro Sustainability Fund and BCG.
About Mercedes-Benz
Mercedes-Benz is dedicated to responsible raw material sourcing
and advancing global mining standards. Key to this is ensuring low
participation barriers for mining communities and indigenous
peoples as well as effective certification schemes. The company is
actively involved in various raw material initiatives and has
extended partnerships with Bon Pasteur in the Democratic Republic
of Congo and Terre des Hommes in India to support human rights.
Mercedes-Benz aims to merge commercial success with responsible
actions towards the environment, people, and society across the
entire value chain.
Moreover, Mercedes-Benz will consistently create the
preconditions for a net carbon-neutral**** new vehicle fleet by
2039. The company focuses on reducing CO₂ emissions and preserving
resources through its "Design for Environment" approach.
Mercedes-Benz collaborates with partners to research sustainable
materials and promote circularity.
About Hydro
Hydro is a Norwegian leading aluminum and energy company that
builds businesses and partnerships for a more sustainable future.
Hydro is committed to leading the way towards a more sustainable
future, creating more viable societies by developing natural
resources into products and solutions in innovative and efficient
ways. Hydro is through its businesses present in a broad range of
market segments for aluminum, energy, metal recycling, renewables
and batteries, offering a unique wealth of knowledge and
competence.
* IPAM Amazonia ** Instituto do Homem e Meio Ambiente da
Amazônia *** Centro de Empreendedorismo da Amazônia **** Net
carbon-neutral means that carbon emissions that are not avoided or
reduced at Mercedes-Benz are compensated for by certified
offsetting projects.
Further information on Mercedes-Benz Group is available at:
media.mercedes-benz.com and group.mercedes-benz.com
Forward-looking statements
This document contains forward-looking statements that reflect
our current views about future events. The words “anticipate”,
“assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”,
“could”, “plan”, “project”, “should” and similar expressions are
used to identify forward-looking statements. These statements are
subject to many risks and uncertainties, including an adverse
development of global economic conditions, in particular a negative
change in market conditions in our most important markets; a
deterioration of our refinancing possibilities on the credit and
financial markets; events of force majeure including natural
disasters, pandemics, acts of terrorism, political unrest, armed
conflicts, industrial accidents and their effects on our sales,
purchasing, production or financial services activities; changes in
currency exchange rates, customs and foreign trade provisions;
changes in laws, regulations and government policies (or changes in
their interpretation), particularly those relating to vehicle
emissions, fuel economy and safety or to ESG reporting
(environmental, social or governance topics); price increases for
fuel, raw materials or energy; disruption of production due to
shortages of materials or energy, labor strikes or supplier
insolvencies; a shift in consumer preferences towards smaller,
lower-margin vehicles; a limited demand for all-electric vehicles;
a possible lack of acceptance of our products or services which
limits our ability to achieve prices and adequately utilize our
production capacities; a decline in resale prices of used vehicles;
the effective implementation of cost-reduction and
efficiency-optimization measures; the business outlook for
companies in which we hold a significant equity interest; the
successful implementation of strategic cooperations and joint
ventures; the resolution of pending governmental investigations or
of investigations requested by governments and the outcome of
pending or threatened future legal proceedings; and other risks and
uncertainties, some of which are described under the heading “Risk
and Opportunity Report” in the current Annual Report or in the
current Interim Report. If any of these risks and uncertainties
materializes or if the assumptions underlying any of our
forward-looking statements prove to be incorrect, the actual
results may be materially different from those we express or imply
by such statements. We do not intend or assume any obligation to
update these forward-looking statements since they are based solely
on the circumstances at the date of publication.
Mercedes-Benz Group at a glance
Mercedes-Benz Group AG is one of the world's most successful
automotive companies. With Mercedes-Benz AG, the Group is one of
the leading global suppliers of high-end passenger cars and premium
vans. Mercedes-Benz Mobility AG specializes in financial and
mobility services. The products range from financing, leasing,
vehicle subscription, rental and fleet management to insurance,
innovative mobility services, digital payment solutions as well as
products and services around charging. The company founders,
Gottlieb Daimler and Carl Benz, made history by inventing the
automobile in 1886. As a pioneer of automotive engineering,
Mercedes-Benz sees shaping the future of mobility in a safe and
sustainable way as both a motivation and obligation. The company's
focus therefore remains on innovative and green technologies as
well as on safe and superior vehicles that both captivate and
inspire. Mercedes-Benz continues to invest systematically in the
development of efficient powertrains and sets the course for an
all-electric future. Mercedes-Benz is consistently implementing its
strategy to transform itself toward a fully electric and
software-driven future. The company's efforts are also focused on
the intelligent connectivity of its vehicles, autonomous driving
and new mobility concepts as Mercedes-Benz regards it as its
aspiration and obligation to live up to its responsibility to
society and the environment. Mercedes-Benz sells its vehicles and
services in nearly every country of the world and has production
facilities in Europe, North and Latin America, Asia and Africa. In
addition to Mercedes-Benz, the world's most valuable luxury
automotive brand (source: Interbrand study, 22 Nov. 2023),
Mercedes-AMG, Mercedes-Maybach as well as the brands of
Mercedes-Benz Mobility: Mercedes-Benz Bank, Mercedes-Benz Financial
Services and Athlon. The company is listed on the Frankfurt and
Stuttgart stock exchanges (ticker symbol MBG). In 2023, the Group
had a workforce of around 166,000 and sold around 2.5 million
vehicles. Group revenues amounted to €153.2 billion and Group EBIT
to €19.7 billion.
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version on businesswire.com: https://www.businesswire.com/news/home/20240924721980/en/
Benjamin Kraft, +49 176 3095 7277,
benjamin.b.kraft@mercedes-benz.com Pia Droldner, +49 176 30988043,
pia.droldner@mercedes-benz.com Andrea Berg, +1 917 667 2391,
andrea.a.berg@mercedes-benz.com
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