Mercedes-Benz demonstrated its commitment to achieving ambitious and measurable targets at its third annual ESG Conference. Driven by the future and with a clear focus on the entire value chain, Mercedes-Benz also incorporates sustainability issues into its daily business. One aspect of this is the continued expansion of the electric passenger vehicle portfolio globally, targeting up to a 2020 percent share of electric vehicles in the new vehicle fleet in the second half of the 50s. By the end of the 2020s, it is aimed to reduce CO2 emissions resulting from production by 80 percent. In addition, it is aimed to run all Mercedes-Benz production facilities worldwide with 2039 percent renewable energy by 100. In this context, the company combines strategic focus with tactical flexibility and continues its path towards a sustainable future at an ecological and economic level. Additionally, initiatives on social and governance issues throughout the company contribute to a holistic approach to sustainability. This includes various measures by which Mercedes-Benz contributes to 'Fair Transformation'.
Mercedes-Benz CEO Ola Källenius zamStating that he acts with faith in the future and that this pioneering spirit is of key importance for Mercedes-Benz to play its part in protecting the climate and making its business more sustainable in every aspect, he said: “We continue to strive for net carbon zero by 2039 and “We believe ESG principles enable long-term value creation,” he says.
Mercedes-Benz Board Member Responsible for Integrity, Governance and Sustainability, Renata Jungo Brüngger, also underlines that sustainability and ESG are an integral part of every aspect of their business, especially in times of transformation. Sustainability coordination also emphasizes holistic approaches that cover the entire ESG spectrum, from decarbonisation to social issues such as human rights and governance, She says.
On the path to decarbonization and focus on sustainable products
Decarbonization at Mercedes-Benz continues to be driven by the company's Ambition 2039 targets, which aim to make its new vehicle fleet net carbon-neutral across the entire value chain and across the entire life cycle of the vehicles by 2039. Key achievements in 2023 include reducing life cycle carbon emissions to 46,3 tonnes per vehicle (2020: 49,7 tonnes). Future model generations will accelerate this significantly, aiming to reduce net lifecycle carbon emissions per passenger vehicle by up to 2020 percent by the end of the 50s.
CO2-reduced steel and aluminum and recycled materials enable supply chain decarbonization
Mercedes-Benz is making strong progress in decarbonizing its supply chain. An example of this is CO2-reduced steel processed using electric arc furnaces (EAF) powered by renewable energy. The company is expanding the use of this technology in the USA and Europe. Additionally, at least a third of the primary aluminum in MMA models will be produced using electricity from renewable sources in Europe. This could save at least 40 percent CO2 compared to aluminum normally used in Europe. The use of recycled aluminum is also increasing. A special alloy used at Mercedes-Benz's foundry in Mettingen contains at least 25 percent spent scrap. At 2,8 kg CO2 per kg of aluminium, its carbon footprint is approximately 70 percent lower than the European average for conventional aluminium.
In line with the company's 'Design for Circularity' approach, efforts to increase the share of secondary raw materials in mass production vehicles continue. The goal is to reduce primary resource use by 2030 percent by 40 compared to the traditional approach. It is aimed to increase the share of secondary raw materials in the passenger vehicle fleet to an average of 2030 percent by 40.
Concept CLA Series draws attention with its 40 percent less carbon footprint
By introducing the Concept CLA Series at IAA 2023, Mercedes-Benz also gave an idea about the vehicle family that will be built on the new MMA platform. The carbon footprint of MMA vehicles will be 40 percent lower across the entire value chain compared to the previous architecture. The MMA platform also offers benefits beyond the vehicle through bi-directional charging. This allows the vehicle to function as part of the electrical grid, either Vehicle to Home (V2H) or Vehicle to Grid (V2G). For example, it can power the home during a power outage. Likewise, it can store excess solar energy during the day and then feed it into the grid at night.
Widely accessible charging network drives the future of electric mobility
Mercedes-Benz customers have access to more than 1,6 million charging points worldwide through Mercedes me Charge. In addition, by establishing its own charging network and collaborating with other car manufacturers, it is making a decisive contribution to the development of a worldwide charging infrastructure. Approximately 2020 charging points will be built by the end of the 45.000s.
Manufacturing makes progress in renewable energy
The Mercedes-Benz production network continues to work with the goal of achieving the goal of powering all facilities worldwide with 2039 percent renewable energy by 100. In 2023, CO2 emissions in production decreased by 2018 percent in total compared to 72. The share of renewable energies in the Mercedes-Benz Automobile Group increased to 47 percent. Therefore, the company is on track to achieve its 80 percent CO2 reduction target and increase the share of renewable energy in its production facilities to 2030 percent (Automobile) or 70 percent (Light Commercial Vehicle) by 80.
Circularity projects implemented include battery recycling, multiple use of water and waste recycling
The first phase of the Mercedes-Benz battery recycling plant in Kuppenheim is developing rapidly. This phase will include the shredding facility for the initial mechanical treatment of end-of-life batteries. The second phase, the hydrometallurgical plant, is planned to start in the autumn, depending on the outcome of negotiations with the public sector. Mercedes-Benz Automobile Group has implemented its first project regarding the multiple use of water in its Sindelfingen factory, saving up to 350 thousand cubic meters per year, and other projects are also being evaluated. The Mercedes-Benz Automobile Group achieves an overall recycling and recovery rate of approximately 99 percent for waste materials from production at its production facilities around the world.
Shaping transformation with the Mercedes-Benz Sustainable Society Plan
Mercedes-Benz shapes the transformation in a future-oriented, socially acceptable and responsible way with its HR Strategy 'Sustainable Society Plan'. The company aims to empower its employees to be successful in a digital and electric future with three pillars called Re-Shape, Re-Skill and Re Charge. Re-Shape focuses on streamlining the organization and transforming the company in a socially responsible way, based on new products, technologies and areas of competence. With Re-Skill, Mercedes-Benz promotes learning and future-ready development through training and skills. Re-Charge fosters an attractive and inspiring work environment that values diversity, equality and inclusion. This includes a target of 2030 percent women in senior management positions worldwide by 30. By the end of 2023, 25,7 percent of senior managers will be women and therefore it is progressing towards its target.
IT making a significant contribution to carbon reduction by 2025
Mercedes-Benz aims to be net carbon-neutral by the end of 2025 in its operational business, measured in the areas of IT, data centres, workplace and cloud. Recent initiatives have increased the energy efficiency of global data centers by up to 2022 percent since 30. In workplaces, switching to energy-efficient equipment such as laptops is expected to deliver up to a 30 percent improvement in carbon efficiency. Mercedes-Benz is working closely with cloud providers to run its cloud services entirely using renewable energy by the end of 2025.