Mercedes-Benz and Stegra secure supply deal.

By using a new, innovate manufacturing process, the production of steel at the Stegra production site has a carbon footprint of around 0.4t CO₂/t steel. By contrast, steel produced using a classic blast furnace emits, on average, more than 2 t CO₂/t steel. In the new process, the supplier uses hydrogen and electricity from renewable energy sources instead of coking coal in steel production. The hydrogen acts as a reduction gas, which releases and binds the oxygen from the iron ore. Unlike the use of coking coal, this does not produce CO₂, but water vapor.

Mercedes-Benz is working with all its suppliers towards a net-carbon neutral^[1]Net carbon-neutral means that carbon emissions that have neither been avoided nor reduced at the Mercedes-Benz Group are compensated for by certified offsetting projects.
supply chain by 2039 at the latest. To achieve its climate goals the luxury carmaker is retooling its supply chain to focus on the prevention and reduction of CO₂ emissions rather than off-setting. Already today, the brand with the three-pointed star has introduced low-CO₂ steel, made from recyclate, into four series models. Moreover, Mercedes-Benz already sources aluminium made using electrolysis powered by renewable energy for selected components used in series productions with a carbon footprint more than 70 percent lower than the global average. Mercedes-Benz and Stegra agreed to collaborate on levers to increase the recyclate content accordingly.

In addition to consequently reducing CO₂ emissions, the company is committed to the application of certificates and standards, for example our Responsible Sourcing Standards. Mercedes-Benz and Stegra collaborate on strengthening human rights due diligence across the steel supply chain. Mercedes-Benz is a member of the Responsible Steel Initiative and is actively involved in the development of a certifiable sustainability standard for the steel industry.

This article was last updated in September 2026.