Mercedes-Benz Group (MBG) ESG Update summary

Strategic sustainability focus and progress

• Six sustainability focus areas guide the holistic strategy, including decarbonization, resource use, traffic safety, digital trust, people, and human rights.

• Decarbonization targets include a net carbon-neutral new vehicle fleet by 2039 across the value chain and lifecycle, with certified offsetting for unavoidable emissions.

• The new CLA model achieves a 40% reduction in carbon footprint versus its non-electric predecessor, uses 100% green electricity in production, and has a battery cell CO2 footprint reduced by 30%.

• Traffic safety leadership is demonstrated by pioneering crash tests, advanced driver assistance, and automated driving systems, including Level 3 conditional automation.

• Digital trust is fostered through responsible AI, cybersecurity, digital literacy initiatives, and a new operating system focused on data security.

Operational achievements and targets

• Production energy consumption reduced by 15% for new models, with 50% of energy from renewables in 2024, targeting 70% by 2030.

• CO2 emissions in car production cut by 75% since 2018, aiming for 80% by 2030 and 100% by 2039, with significant investments in renewables and electrification.

• Logistics decarbonisation targets a 60% CO2 reduction by 2039 compared to 2021, leveraging localisation, optimisation, and new technologies.

• Water usage to be halved by 2030, with closed water cycles and efficient cooling technologies; zero drinking water use in production by 2039.

• Waste for disposal reduced by 38% in 2024 at Sindelfingen, with a 99% recovery rate and digital waste tracking.

Circularity, resource use, and waste management

• Resource circularity is advanced through increased use of secondary materials, high recycling rates, and closed-loop battery recycling.

• Battery recycling plant in Kuppenheim achieves over 96% recovery rate, closing the battery loop.

• Battery production follows a closed-loop approach, emphasizing recycling and reuse of materials.

• Production cost per vehicle to be cut by 25% by 2030 through reductions in energy, water, and waste.