Ambition 2039.^[1]The ambition of the Mercedes-Benz Group is by 2039 to reduce its CO₂ emissions by 90% in its own production, by 80% in the vehicle use phase, where market conditions permit, and by 70% across all relevant stages of the value chain, compared to 2019. In addition, the Mercedes-Benz Group supports qualified climate change mitigation projects that meet recognized standards.
By 2049 at the latest, the Mercedes-Benz Group intends to achieve net-zero. Net-zero means that the CO₂ emissions will be reduced by at least 90% compared to 2019. Remaining CO₂ emissions (< 10%) will be neutralized permanently.

The company plans to cover more than 70 percent of its energy needs through renewable energy by 2030 by rolling out solar and wind power at own sites as well as through further power purchase agreements. The ambition^[1]The ambition of the Mercedes-Benz Group is by 2039 to reduce its CO₂ emissions by 90% in its own production, by 80% in the vehicle use phase, where market conditions permit, and by 70% across all relevant stages of the value chain, compared to 2019. In addition, the Mercedes-Benz Group supports qualified climate change mitigation projects that meet recognized standards.
By 2049 at the latest, the Mercedes-Benz Group intends to achieve net-zero. Net-zero means that the CO₂ emissions will be reduced by at least 90% compared to 2019. Remaining CO₂ emissions (< 10%) will be neutralized permanently.
of the Mercedes-Benz Group is by 2039, to reduce its CO₂ emissions by more than 70 % compared to 2019 across all relevant stages of the value chain. In addition, the Mercedes-Benz Group supports qualified climate change mitigation projects that meet recognized standards. By 2049 at the latest, the Mercedes-Benz Group intends to achieve net-zero. Net-zero means that the CO₂ emissions will be reduced by at least 90% compared to 2019. Remaining CO₂ emissions (< 10%) will be neutralized permanently.

Mercedes-Benz is taking the necessary steps to go all electric. The market conditions, the infrastructure and the consumer behavior determine the course of the transformation. Across the entire lifecycle of the Mercedes-Benz Group fleet worldwide, an average CO₂ footprint of 49.2 tonnes per vehicle was recorded in the relevant value chain stages in 2025. In 2019, the average CO₂ emissions of the Mercedes-Benz Group fleet amounted to 53.8 tonnes per vehicle across the relevant value chain stages. This means that the Mercedes-Benz Group had already reduced its CO₂ emissions per vehicle by approximately 8% by 2025 compared with 2019.

The “electric-first” architecture MMA which will be launched in 2025, marks the next step into the electric future of Mercedes-Benz. The architectures MB.EA, AMG.EA and VAN.EA will follow. Thus, we will offer our customers a fully electric alternative for each model.

By 2026, we will have invested more than 60 billion euros on this transformation to prepare our production network to meet demand and be ready to capture the tipping point into an all-electric era.

In addition, investments totalling one billion euros in new power purchase agreements (PPAs) for wind farms are planned by the middle of the decade. In the offshore sector, the company has signed a power purchase agreement (PPA) with Iberdrola – one of the world’s market leaders in renewable energy – for the supply of electricity from the Windanker wind farm in the Baltic Sea. This contract alone will secure Mercedes-Benz more than 140 MW of renewable electricity from 2027 onwards, thereby covering around 30 per cent of its electricity requirements in Germany. In the onshore sector, Mercedes-Benz will work with UKA to construct a wind farm comprising approximately 20 wind turbines at its test site in Papenburg, northern Germany, by the middle of the decade. With a capacity of more than 120 MW from 2026, the new wind farm is set to cover around 20 per cent of Mercedes-Benz Group AG’s annual electricity requirements in Germany. With the new solar and wind power plants, Mercedes-Benz will in future cover around 50 per cent of its total electricity requirements in Germany.

Factory 56 was designed for maximum resource efficiency: the assembly hall operates with a significantly lower energy requirement than comparable conventional facilities. The electricity used on site comes entirely from renewable sources, supported by a photovoltaic system on the roof of the assembly hall and a stationary energy storage unit. A smart energy management system continuously optimizes consumption across the building.

Mercedes-Benz is currently implementing a green power concept in Germany with the energy supplier Enovos and the Norwegian energy producer Statkraft. Since 2022, we have been purchasing electricity that comes exclusively from renewable sources. A green power supply contract ensures the purchase of electricity from renewable energies at all times.

» Key criterion for supplier selection

The transformation to electric mobility increases the energy demand in the upstream supply chain. A holistic approach on the path to electric mobility therefore also includes our suppliers. Together with our partners in the supply chain, we strive to prevent, minimise or, as far as possible, eliminate potential adverse impact on people and the environment along our supply chain.

In doing so, we focus on materials and components that are particularly CO₂-intensive in production and processing. The materials include aluminium, steel, and battery cells.

» Procurement of raw materials

We follow a risk-based due diligence approach to identify, assess and minimise potential human rights risks of production and non-production materials and services.

We therefore require our direct suppliers to comply with our Responsible Sourcing Standards (RSS) and to carry them into their upstream value chains as well as to monitor their compliance. The RSS apply worldwide and represent our code of conduct for the supply chain and include binding minimum requirements for suppliers.

Mining auditing is another important tool to carry out due diligence in raw material supply chains and to address environmental and human rights risks that depend on the on-site management of the mine. Mercedes-Benz Procurement uses the industry-recognised Initiative for Responsible Mining Assurance (IRMA) Standard for Responsible Mining as a key criteria for relevant raw materials in supplier selection and contracting processes. The IRMA Standard includes requirements related to human rights, environmental topics and other social aspects associated with industrial mining activities. 

As early as 2018, we commissioned SLR Consulting to increase transparency across the complex cobalt supply chains of our battery cells and to assess them against the OECD due diligence guidelines. In view of increasing requirements for due diligence and transparency in the supply chains of battery cells, we are not only continuing to implement audit and transparency measures in cooperation with SLR Consulting, but are also extending them from cobalt to the raw materials lithium, nickel, graphite, copper and manganese. In addition, the scope of human rights due diligence has been extended to environmental aspects such as biodiversity, water protection, hazardous substances and energy management.

For years, we have also been investing in resource-efficient technologies and manufacturing processes for batteries and are working to further reduce the use of critical materials. The cobalt content in our battery cells, has been significantly reduced compared to the previous battery generation. In the future, we want to use post-lithium-ion technologies with new material compositions to completely eliminate materials such as cobalt. The further optimisation of recyclability and its implementation is also part of our holistic battery strategy.

More information on the handling of critical raw materials.

Together with our suppliers, we are also working on a CO₂-reduced steel supply chain. In September 2023, we signed a supply agreement with Steel Dynamics, Inc. (SDI) for more than 50,000 tonnes of low-carbon steel annually for our production plant in Tuscaloosa, Alabama. The steel supplied by SDI is produced in an electric arc furnace (EAF) that runs on electricity from renewable energy sources and has a scrap content of at least 70 percent. At the same time with our strategic partner Stegra we agreed on an annual purchase of around 50,000 tonnes of low-carbon steel per year, which is to be used in various production models from mid of the decade.

Aluminium, together with steel, is proportionally the most widely used material in many vehicles and is gaining in importance in electric vehicles. Therefore, Mercedes-Benz has strategically established partnerships to help decarbonise the aluminium supply chain.

With the all-new electric C-Class: Around two thirds of the aluminium used in the vehicle is produced in electrolysis plants using renewable energy or with an increased proportion of recycled material. Together with the Norwegian aluminium producer Hydro, we are going one step further and developing a low-carbon technology roadmap between 2023 and 2030. Hydro has already been supplying our foundry in Stuttgart Mettingen with CO₂-reduced aluminium. However, we are not only concerned with further reducing emissions. At the same time, we are working together to further increase the share of recycled aluminium. Mercedes-Benz will integrate Hydro CIRCAL into series production for the next generation of large electric vehicles. This recycled aluminium is made with at least 75 percent post-consumer recyclate, which represents a significant increase from around 25 percent in the material currently supplied.

» Our recycling factory to close the battery loop:

As part of our holistic approach, we also think about the circular economy when developing battery technology. In October 2024, we opened a battery recycling factory based on hydrometallurgy at the Kuppenheim site. It covers all steps from dismantling at module level, through crushing and drying, to processing the material streams to battery quality. The process design enables recovery rates of more than 96 per cent. Mercedes-Benz is also cooperating with high-tech partners for battery recycling in China and the USA.

» Extensive use of recycled materials

We work intensively to close material loops and increase the proportion of recycled materials to conserve primary resources, avoid waste and thus also reduce CO₂ emissions. In Development we follow the “Design for Environment” approach: In the earliest stages of vehicle development, we reconsider the composition of all materials used and examine possibilities for more efficient alternatives. In addition to steel and aluminium, innovative recyclates are already in use. For the EQS and the S-Class, bow door handles made from chemically recycled materials are available. In their production, fossil raw materials are replaced by biomethane and pyrolysis oil from recycled used tyres in accordance with the mass balance approach. The S-Class also comes with a crash absorber based on this combination of raw materials. In the vehicle interior, in addition to a microfibre fleece that consists of up to 73 percent recycled material, we offer various fabrics made up to 100 per cent from recycled PET bottles. In the basic seat of the new E-Class, undyed alpaca wool combined with a recycled material is used for the upholstery. In the foam of the seats, certified recycled raw materials are used for the first time according to the “mass balance approach”, and their properties do not differ from those of raw materials produced from crude oil. In this way, the need for fossil resources can be reduced while maintaining product quality. Looking to the future, the aim is to progressively increase the use of this more sustainable recycled material, and also to use chemical recycling in combination with the biomass balance approach for further plastic vehicle parts.

» Renewable Charging^[2]Renewable Charging is an integral part of MB.CHARGE Public in Europe, the USA, Canada and China. If electricity from renewable energies is not yet available at the respective charging station, Renewable Charging uses Energy Attribute Certificates*. These ensure that an equivalent amount of electricity from renewable energies is fed into the power grid for charging processes via MB.CHARGE Public. They are from wind and solar power plants which are less than six years old.
* Incl. EKOenergy ecolabel

Around 50 percent of the CO₂ footprint of a battery-electric vehicle is produced during the use phase with the current EU energy mix, owing to charging processes that emit CO₂. Mercedes-Benz consistently relies on the use of electricity from renewable energies. Renewable Charging^[2]Renewable Charging is an integral part of MB.CHARGE Public in Europe, the USA, Canada and China. If electricity from renewable energies is not yet available at the respective charging station, Renewable Charging uses Energy Attribute Certificates*. These ensure that an equivalent amount of electricity from renewable energies is fed into the power grid for charging processes via MB.CHARGE Public. They are from wind and solar power plants which are less than six years old.
* Incl. EKOenergy ecolabel
is an integral part of MB.CHARGE Public in Europe, the USA, Canada and China.

» Mercedes me Eco Coach

To give customers special support when switching over to the age of electric mobility, we have developed an intelligent, digital personal trainer: the Mercedes me Eco Coach. Customers who follow the recommendations and hints in the app not only get to know their alternative-drive car better – they also improve their driving style.

This article was last updated in September 2026.