- EV ramp-up: Approximately 100% EV sales growth seen in 2023;
own global high-power charging network starting in 2023
- Emission reduction: 80%1 cut in CO2 from own production sought
by 2030; new green energy assets including solar, onshore and
offshore wind power
- Human rights: Protective measures for further raw materials in
2023; expansion of projects to prevent child labour in mining
regions
- Governance: Enhanced variable executive remuneration
system
- Green finance: Revised framework retains highest “Dark Green”
rating by CICERO with governance rated as excellent
At its ESG (Environment, Social and Governance) Conference 2023
for investors and analysts, Mercedes-Benz underlined measures aimed
at reducing the carbon footprint and creating lasting value for all
stakeholders.
“At Mercedes-Benz, we want to build the world’s
most desirable cars. And since there can be no luxury without
sustainability, we have flipped the switch towards ESG – especially
with our ramp-up of e-mobility. ESG enables long-term value
creation. This includes mitigating risks and seizing opportunities
in sustainable business. We intend to double down on both.”
Ola Källenius, Chief Executive Officer,
Mercedes-Benz Group AG
Accelerating electrification with a growing portfolio and a
dedicated high-power charging network
Sales of Mercedes-Benz battery electric passenger cars,
including smart grew by 67% in 2022. The company expects to
approximately double sales of BEVs in 2023 and to reach up to 50%
xEV sales by mid decade. To further accelerate uptake,
Mercedes-Benz will establish its own-branded global high-power
charging network supplied with green electricity wherever possible.
Within this decade, a total of more than 10,000 chargers will be
installed in North America, Europe, China and other key markets.
The network will be open to all brands with exclusive benefits such
as pre-booking opportunities for Mercedes-Benz customers.
Decarbonizing the supply chain and conserving resources through
green energy and responsible sourcing
Mercedes-Benz is pursuing the goal of a green steel supply chain
from 2039 at the latest, together with all its steel suppliers.
Low-CO2 steel, made from scrap, was already introduced into
Mercedes-Benz vehicles. Furthermore, Mercedes-Benz is testing
prototype parts including ultra-high strength martensitic steel
from SSAB which contains almost fossil-free direct-reduced iron for
series production. Mercedes-Benz was also the first car
manufacturer to take an equity stake in Swedish start-up H2 Green
Steel. Through this investment, Mercedes-Benz is promoting the
transformation of the steel industry and intends to launch various
vehicle models from 2025 which utilize almost CO2-free steel.
Mercedes-Benz also works on the decarbonisation of its aluminium
supply chain. At least a third of the aluminium used in Europe for
upcoming electric models will be produced with renewable energy,
leading to CO2 reductions of up to 50%. The company also started to
test aluminum from Hydro (aluminum producer) with minimum 25%
post-consumer scrap for safety-relevant structural castings. The
aim is to begin using this material in series-production this year.
Its CO2 footprint is around 70% lower than that of conventional
aluminium used in Europe. Together with Hydro the company aims to
pilot very low CO2 aluminium by 2030. Mercedes-Benz will extend its
use of material certified from mine to supplier according to the
standards of the Aluminium Stewardship Initiative.
Driving the circular economy and direct sourcing of raw
materials
By the end of 2023, the new battery recycling factory in
Kuppenheim, Germany, will start ramping up operations. Thanks to an
innovative mechanical-hydrometallurgical process, Mercedes-Benz
will achieve a recycling rate of more than 96% some months later.
Pending the outcome of promising discussions with the public sector
- Kuppenheim aims to have the ability to recycle more than 2,500
tonnes of battery modules per year. Mercedes-Benz is also expanding
the use of net carbon-neutral cells and batteries. By focusing on
the cathode material, Mercedes-Benz aims to reduce the CO2
footprint of cells by 40%. Further reduction is targeted through
use of renewable energy to produce and refine raw materials. In
2022, the company signed a contract with Canadian-German start-up
Rock Tech Lithium for the supply of an average 10,000 tonnes
lithium hydroxide starting in 2026. Rock Tech shall mine the
lithium in Canada from sites audited according to the mining
standard of the Initiative for Responsible Mining Assurances (IRMA)
and refine it in Germany. Moreover, both partners will cooperate in
creating a roadmap to achieving net carbon-neutral production of
lithium hydroxide by the end of 2030. The ground-breaking ceremony
for the plant in Guben took place in March 2023. In China,
Mercedes-Benz is also working with strong partners to close the
loop of recyclable materials on an industrial scale.
Aiming for 80% fewer CO2 emissions in production by 20301
Since the beginning of 2022, production sites worldwide fully
owned by Mercedes-Benz have been net carbon-neutral. Today 45% of
overall energy used in production at Mercedes-Benz plants comes
from renewable sources, in large part thanks to 100% green
electricity supplies. Mercedes-Benz has already achieved its 2030
target of a 50% CO2 emissions reduction2 – as approved by the
Science based target initiative (SbTi) - in 20221. The company aims
for an 80%1 cut in CO2 emissions by 2030 and intends to increase
renewable energy to account for 70% of overall energy needs at own
production sites, not least through increased on-site generation
capacity. Mercedes-Benz is focusing on the expansion of
photovoltaic systems at its own sites: Up to 140 megawatt peak
(MWp), equivalent to one million square meters of new solar panels
will be installed until 2025. Expanding the energy portfolio to
include wind power from onshore and offshore wind farms is another
focus in the company’s energy strategy. The new solar systems and
wind farms will help Mercedes-Benz to secure around 50% of its
future total electricity requirements in Germany. In the offshore
sector, Mercedes-Benz concluded a Power Purchase Agreement (PPA)
with Iberdrola – one of the global market leaders in the renewable
energy sector – for the supply of electricity from the Windanker
wind farm in the Baltic Sea. This contract alone allows
Mercedes-Benz to secure more than 140MW of renewable electricity
from 2027 onwards, covering around 30% of the company’s electricity
needs in Germany. Regarding onshore, Mercedes-Benz will build a
wind farm with a double-digit number of wind turbines at its test
site in Papenburg, Germany, by middle of the decade. The ambition
for all Mercedes-Benz production plants worldwide is to run 100% on
renewable energy with zero CO2 emissions by 2039. In logistics, the
aim is to avoid and reduce CO2 emissions through process
optimization. An important factor is the switch from road to rail,
wherever economically possible. Mercedes-Benz is also investigating
innovative concepts such as freighters powered by sail. The company
has signed a Letter of Intent with Wallenius Wilhelmsen (Global
Shipping and Logistic Solutions Company) to transport cars from
Europe to the U.S.
Creating a sustainable retail experience for customers
Mercedes-Benz aims to make its worldwide independent retailer
network net carbon-neutral by 2030 at the latest. Measures to
achieve this include using renewable energy sources, improving
energy efficiency in buildings, expanding electric mobility in
retail fleets and developing the charging infrastructure. First
steps this year include detailed CO2 emissions calculation of the
global retail network and development of tailored regional
roadmaps.
Further social engagement investment in young innovators and the
prevention of child labor
Mercedes-Benz has donated proceeds from the auction of a
Mercedes-Benz 300 SLR Uhlenhaut Coupé to fund beVisioneers: The
Mercedes-Benz Fellowship. The initiative aims to empower young
innovators with diverse backgrounds who have promising ideas for
sustainability projects. Fellows receive an intensive 12-month
training and skills development programme with access to mentoring
as well as financial support.
To support human rights in mining regions, the company is also
continuing existing partnerships with Bon Pasteur in the Democratic
Republic of the Congo (DRC) and with Terre des Hommes in India. The
focus of both projects is to prevent child labour by addressing its
root causes such as extreme poverty, lack of community protection
systems and limited alternative livelihood opportunities. Support
is being extended to a total of 34 villages from the 12 that have
benefitted so far.
For its own supply chains, Mercedes-Benz aims to complete the
assessment process of 24 raw materials with elevated human rights
risks by 2028. An initial milestone of 70% is set for 2025. The
company has strengthened the engagement in the deeper supply chains
through extending its cobalt audit program to environmental
standards and a broader scope of all critical battery materials. A
recent analysis from Lead the Charge (https://leadthecharge.org/)
evaluating efforts by leading carmakers to eliminate emissions,
environmental harms, and human rights violations from their supply
chains gave Mercedes-Benz the highest score in total. The plan for
2023 is to establish risk mitigation measures for all raw materials
affected by the future EU battery regulation.
Shaping the just transition for the Mercedes-Benz team in a fair
and socially responsible way
Electrification and digitization are historic turning points for
the world of work. All job profiles in the company are changing.
Mercedes-Benz aims to shape the personnel change in a socially
responsible way. Qualification and continuing education are the key
to mastering the transformation successfully while empowering the
employees. In Germany alone, Mercedes-Benz will invest more than
€1.3 billion in the qualification, training and continuing
education of its employees by 2030. It is clear that some job
profiles, especially in powertrain, will no longer exist. That’s
why the company promotes flexibility between the plants and enables
employees to change locations. Also, Mercedes-Benz takes advantage
of demographic change and natural fluctuation in order to further
optimize employment at different locations.
Variable executive remuneration system enhanced
Mercedes-Benz understands Corporate Governance as an enabler for
the sustainable transformation. To that end, the company has
enhanced the variable component of its executive remuneration.
There is now one KPI each for E, S and G included as part of short-
and long-term incentives. For Board of Management Members, a new
penalty clause related to ESG components has been introduced.
“Dark Green” rating for overhauled Green Finance Framework and
“A rating” for climate efforts
For the first time, Mercedes-Benz added green asset backed
securities to its green financing instruments. The company has also
expanded the framework to include green assets at Mercedes-Benz
Mobility. These and other revisions have earned the highest “Dark
green” rating from CICERO with an “excellent” rating for
governance:
https://group.mercedes-benz.com/investors/refinancing/green-finance/.
This follows the recent announcement by the CDP, which provides a
global environmental disclosure scoring system, that Mercedes-Benz
has been rated “A” for its climate efforts – a top mark awarded to
less than 2% of the around 19,000 participating companies.
The livestream (2:00 p.m. CEST) and the recording can be found
on the website:
https://group.mercedes-benz.com/esg-conference-2023/
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 me media
online platform at media.mercedes-benz.com as well as on our
Mercedes-Benz global media site at group-media.mercedes-benz.com.
Learn more about current topics and events related to Mercedes-Benz
Cars & Vans on our @MB_Press Twitter 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 170,000 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 the brands of
Mercedes‑AMG, Mercedes‑Maybach, Mercedes‑EQ, G‑Class 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 2022
it sold around two million passenger cars and 415,300 vans. In its
two business segments, Mercedes‑Benz AG is continually expanding
its worldwide production network with around 35 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.
The figures are provided in accordance with the German
regulation 'PKW-EnVKV' and apply to the German market only. Further
information on official fuel consumption figures and the official
specific CO₂ emissions of new passenger cars can be found in the EU
guide 'Information on the fuel consumption, CO₂ emissions and
energy consumption of new cars', which is available free of charge
at all sales dealerships, from DAT Deutsche Automobil Treuhand GmbH
and at www.dat.de.
1 Compared to 2018
2 Scope 1 and 2
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005471/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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