Mercedes-Benz EQE.

Investing sustainably

ESG at Mercedes-Benz.

A core principle of the Mercedes-Benz Group is that we aim to create value that is sustainable and to do so in a manner that is economical, environmentally friendly and socially beneficial. We’re translating this into our sustainable business strategy. One of our most important transformation targets is CO₂ neutrality — and we have firmly embedded it in our sustainable business strategy. At Mercedes-Benz AG it is reflected in our “Ambition 2039” and our electric-only approach. By the end of this decade, we want to offer all-electric vehicles wherever market conditions allow.

We have set ambitious goals for ourselves and defined six strategic areas of action for reaching these goals. Our three enablers for making progress in these areas are: integrity, people and partnerships.

ESG Strategy and Targets

ESG disclosure

This report explains our perspective on responsible climate advocacy, which is driven by transparency and integrity. It describes Mercedes-Benz’s Group positions on different climate-related policy items, followed by company activities, which serve as proof points for our full commitment on climate protection. A further chapter is dedicated to review positions of industry associations towards climate related policy items and how those match with Mercedes-Benz Group perspectives. The report will conclude by providing an overview on our corporate governance organization regarding sustainability and our memberships. By issuing the Mercedes-Benz Group Climate Policy Report we want to be transparent about our positions and activities, which underline our commitment to the climate protection goals.

In April 2015, the G20 Finance Ministers and Central Bank Governors asked the Financial Stability Board (FSB) to review how the financial sector can take account of climate-related issues. The FSB established the Task Force on Climate-related Financial Disclosures (TCFD) to develop voluntary, consistent climate-related financial disclosures that would be useful to investors, lenders, and insurance underwriters in understanding material risks.

The TCFD’s members were chosen by the FSB to include both users and preparers of disclosures from across the G20’s constituency covering a broad range of economic sectors and financial markets. As one of six industrial firms, Mercedes-Benz Group contributed to the development of the recommendations that were published in June 2017.

The Sustainability Accounting Standards Board (SASB) is an independent nonprofit organization that sets standards to guide the disclosure of financially material sustainability information by companies to their investors.

SASB Standards identify the subset of environmental, social, and governance (ESG) issues most relevant to financial performance in 77 industries. Global investors recognize SASB Standards as a core component of a company’s ESG disclosures.

CDP is a non-profit charity that runs the global environmental disclosure system. CDP scores companies’ environmental performance and gives capital markets and companies the data they need for comprehensive and environmental decision making.

Currently, over 10,000 companies, cities, states and regions are using CDP to disclose environmental data.

In 2015, CDP was a founding partner of the Science Based Targets initiative (SBTi), which provides a framework for companies and financial institutions to set emissions targets in line with the level of decarbonization required to meet the Paris agreement’s temperature goals.

Since 2018, CDP aligned its Climate Change Questionnaires with the TCFD’s recommendations and adopted the forward-looking approach to climate-risk disclosure.

Mercedes-Benz Group discloses details on climate-related activities for more than 15 years through CDP.

In 2021, Mercedes-Benz Group again achieved the Leadership category with an A-.

For Mercedes-Benz, respect for human rights is a fundamental component of our activities. In the Raw Materials Report, we report on our activities to respect human rights in raw materials supply chains and our progress within the framework of our sustainable corporate strategy.

By 2025, we want to assess 70 percent of the 24 raw materials we identify. By 2028, appropriate measures for the prevention, reduction or termination of human rights violations should be defined for all risky raw materials.

The first "Raw Materials Report" will publish the assessments for the first six raw materials aluminum, cobalt, lithium, mica, tin and tungsten. The report will be regularly updated and supplemented with analyses of further raw materials.

The letters ESG stand for Environment, Social and Corporate Governance. These non-financial criteria are used when assessing investments or business practices. ESG information is used by players in the financial markets, such as pension funds or asset managers, as a complement to their fundamental economic analysis work.

Green Finance

More and more investors are making their investment decisions on the basis of criteria such as environmental protection, social conduct and fair corporate governance. They want to invest in companies with a sustainable business strategy. With our Green Finance Framework, we have created the conditions for sustainable finance instruments such as green bonds and green loans.