The Mercedes-Benz Group aims to create value that is sustainable – economically, ecologically and socially: This is one of the core principles of the Group. It applies not only to the Group’s own products and manufacturing locations, but also to the entire upstream and downstream value chain. It has translated this approach in its sustainable business strategy.
One of the most important transformation goals at the Mercedes-Benz Group is decarbonization. At Mercedes-Benz Group, this goal is reflected in “Ambition 2039” and the “Electric Only” approach. By the end of this decade, Mercedes-Benz intends to be all-electric wherever market conditions allow.
The Mercedes-Benz Group has set itself ambitious goals and defined six strategic areas of action and three enablers, or principles - integrity, people and partnerships - for reaching these goals.
ESG Strategy and Targets
The first Mercedes-Benz Climate Transition Action Plan outlines how we pursue this task – by setting ourselves ambitious targets and aligning our entire organization and value chain with this path. By 2039, we aim to have a net carbon-neutral Mercedes-Benz new vehicle fleet across all stages of the value chain.
The Climate Policy Report describes Mercedes-Benz Group’s positions on different climate-related policy items, followed by activities, which serve as proof points for the irrevocable 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 the Group’s perspectives. The report closes by providing an overview on corporate governance organisation regarding sustainability and an overview on memberships. By issuing the Mercedes-Benz Group Climate Policy Report 2022 the Group wants to be transparent about its positions and activities demonstrating its 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.
Sustainability Accounting Standards Board (SASB) Standards guide the disclosure of financially material sustainability information by companies to their investors. Available for 77 industries, the Standards identify the subset of environmental, social, and governance issues most relevant to financial performance in each industry.
The Mercedes-Benz Group AG has been recognized for leadership in corporate transparency and performance on climate change by global environmental non-profit CDP, securing a place on its annual ‘A List’.
Based on data reported through CDP’s 2022 Climate Change questionnaire, the Mercedes-Benz Group AG is one of a small number of companies that achieved an ‘A’ - out of more than 15,000 companies scored.
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Nearly 20,000 organizations around the world disclosed data through CDP in 2022, including more than 18,700 companies worth half of global market capitalization, and over 1,100 cities, states and regions. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy.
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.
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.