Sustainability is a fundamental component of Mercedes-Benz’ corporate activities. In future, the company will be focusing on six strategic areas to drive its sustainable transformation in a targeted manner. These focus areas were presented at the 17th Mercedes-Benz Sustainability Dialogue in Stuttgart on November 20, 2024 and discussed with representatives from civil society, politics, academia and business.
“We want to make the greatest possible impact with what we do. In our six sustainability focus areas we can make a real difference. They cover environmental, social and corporate governance topics that are highly relevant both today and in future – for us as a company, for many of our stakeholders and ultimately for society as a whole. The aim is to anchor sustainability even more firmly in our operational business. This is the only way we can achieve lasting improvements.”
Renata Jungo Brüngger, Member of the Board of Management of Mercedes-Benz Group AG. Integrity, Governance & Sustainability
Mercedes-Benz stands for a holistic understanding of sustainability that incorporates ecological, social and economic aspects as well as responsible corporate governance. Mercedes-Benz pursues its sustainable business strategy with the aim of creating lasting value for various stakeholder groups: customers, employees and investors as well as for business partners and society as a whole. The six sustainability focus areas are part of the business strategy and cover environmental, social and corporate governance topics under the headings of Decarbonisation, Resource Use & Circularity, Employees, Human Rights, Digital Trust and Traffic Safety.
These focus areas are the outcome of a multi-stage strategy and analysis process involving internal and external stakeholders. The strategy process was based on internal and external analyses and workshops as well as a materiality analysis conducted in accordance with the strict requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).
In each focus area Mercedes-Benz has set specific targets and included sustainability indicators in a company-wide scorecard. This approach is intended to anchor sustainability aspects even more firmly in the operational business. The system is being continuously reviewed and key indicators will be part of the annual sustainability reporting.
Six sustainability focus areas at Mercedes-Benz
Decarbonisation: The “Ambition 2039” is a central strategic goal at Mercedes-Benz. By 2039, the entire new vehicle fleet is to be CO₂-neutral1 across all stages of the value chain and the entire life cycle. The electrification of vehicles is playing a key role here. Other important levers include the use of recycled materials, the deployment of renewable energies in production processes and the inclusion of renewable energy sources for charging the vehicles.
Resource Use & Circularity: Mercedes-Benz is pursuing the goal of increasingly decoupling resource consumption from output growth. The focus here is on the efficient use of resources and the aim of increasingly closing the material cycle. At the same time, the amounts of waste, energy consumed, and resources used at the sites are to be significantly reduced. At its newly opened battery recycling plant in Kuppenheim, the first of its kind in Europe, Mercedes-Benz recovers 96% of materials: valuable raw materials such as lithium, nickel and cobalt can be recovered in this way so they can be used in new batteries for all-electric Mercedes-Benz vehicles in future.
People at Mercedes-Benz: The world of work and entire job profiles of Mercedes-Benz employees are changing fundamentally. That is why the transformation at Mercedes-Benz also affects work processes and structures, areas of responsibility and teamwork. Through its sustainable HR strategy, the Sustainable People Plan, Mercedes-Benz aims to shape these changes in a future-oriented, socially acceptable and responsible way. From 2022 to 2030, for example, the company plans to invest over €2 bn in training its employees.
Human Rights: Respect for human rights is of central importance to Mercedes-Benz. That is why the company together with its partners pursues the goal of protecting human rights along the entire value chain, and of preventing, minimising or, as far as possible, eliminating any negative impacts on people and the environment. This is achieved through a risk-based approach that can identify potential human rights risks at an early stage and counter them with appropriate measures. In this context, Mercedes-Benz is also investing in projects such as the Corridor Initiative along the aluminium supply chain in Brazil’s Amazon region. This multidimensional project undertaken with the company Hydro as a partner aims to involve local people more closely, strengthen local human rights and enhance biodiversity.
Digital Trust: In this focus area Mercedes-Benz is tackling the challenges of digital transformation. The company’s aim is to build and maintain trust in its digital products and services and strengthen the responsible use of digital innovations. Mercedes-Benz is convinced that digital trust is increasingly becoming a key differentiator and the foundation on which sustainable and competitive digital business is based. In this context, Mercedes-Benz was one of the first vehicle manufacturers to define principles for the responsible use of artificial intelligence.
Traffic Safety: For decades, Mercedes-Benz has been setting standards in the field of traffic safety. The company supports the European Union’s Vision Zero, which, compared to 2020, aims to halve the number of road fatalities by 2030 and eliminate them completely by 2050. Innovative driver assistance systems and automated driving technologies such as DRIVE PILOT (SAE Level 32) can make a significant contribution to making road traffic safer and achieving Vision Zero. For Germany, Mercedes-Benz has already presented the next version of DRIVE PILOT, which can follow the vehicle ahead on the right-hand lane of a motorway at speeds of up to 95 km/h3. The system is expected to be certified by Germany’s Federal Motor Transport Authority by the end of 2024 and will then be available from the beginning of 2025.
An open discussion culture – the Mercedes-Benz Sustainability Dialogue
The six sustainability focus areas were presented to and discussed with a wider external audience for the first time at the annual Mercedes-Benz Sustainability Dialogue on November 20 in Stuttgart. This well-established dialogue format serves the company as a central platform for open exchanges with representatives from NGOs, academia, business, and the political sphere. The event takes place for the 17th time, with similar dialogue events already held this year in Dresden, New Delhi, New York and Beijing.
Cross-divisional sustainability coordination
In 2023, a cross-divisional steering and coordination function for sustainability management at Mercedes-Benz was established in the Integrity, Governance & Sustainability board of management division. This is intended to take account of the constantly growing complexity and increasing legal relevance of this multifaceted topic. Responsibility for the management of department-specific sustainability topics remains with the respective board divisions.
More information can be found in the new sustainability section of the company’s website: Sustainability at Mercedes-Benz. | Mercedes-Benz Group
1 Net carbon-neutral means that carbon emissions that are not avoided or reduced at Mercedes-Benz are compensated for by certified compensation offsetting projects.
2 SAE Level 3 (conditional automated driving): The automated driving function takes over certain driving tasks. However, a driver is still required. The driver must be ready to take control of the vehicle at any time when requested by the vehicle.
3 Availability and use of future DRIVE PILOT features on motorways depend on options, countries and relevant laws.
SOURCE: Mercedes-Benz
