Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product responsibility
• Operations-related environmental protection
• Employee responsibility
• Ethical responsibility
• Social responsibility

Environmental Achievements

• Reduced CO2 emissions per manufactured vehicle; Mercedes-Benz Cars achieved a 27% reduction from 2007 levels by 2013.
• Reduced average CO2 emissions of the Mercedes-Benz Cars fleet in Europe to 134 g/km (a 24.7% reduction compared to 2007).
• Achieved 90% waste recovery rate.
• Installed a new gas turbine and heat-recovery boiler in Sindelfingen plant, creating a combined cycle plant.

Social Achievements

• Launched the “Give a Smile” Christmas project, collecting over 7,700 gift packages.
• Organized the Day of Caring in over 20 countries, with roughly 2,320 employees participating.
• Expanded ProCent initiative, funding over 175 projects with over €1 million.
• Improved customer satisfaction significantly at Mercedes-Benz Trucks in individual markets.

Governance Achievements

• Established the Advisory Board for Integrity and Corporate Responsibility.
• Concluded the three-year monitorship by Louis Freeh, confirming an exemplary standard of integrity and compliance.
• Developed a new web-based training course on integrity and compliance for approximately 112,000 employees.

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions from production operations while significantly increasing production volume.
• Ensuring fair working conditions and remuneration for contractors and service providers.
• Addressing potential fire hazard in using R1234yf refrigerant in vehicle air conditioning systems.

Mitigation Strategies

• Implementing energy-saving methods, increasing process efficiency, using low-carbon energy sources, and expanding renewable energy use.
• Defining standards for awarding contracts for work and services that go beyond legal requirements.
• Deciding to use CO2 as a refrigerant in future vehicles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Standards (covering working conditions, human rights, environmental protection, safety, business ethics, and compliance).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and alternative drive systems.

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact

Certifications: ISO 14001, ISO 9001, ISO 14006, ISO TR 14062, ISO 50001, EMAS

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart fortwo electric drive
• B-Class Electric Drive
• Mercedes-Benz SLS AMG Coupe Electric Drive
• E 300 BlueTEC HYBRID
• S 500 PLUG-IN HYBRID
• Vito E-CELL
• Fuso Canter E-CELL
• Freightliner Custom Chassis MT E-CELL All Electric
• Mercedes-Benz Citaro G BlueTec Hybrid
• Citaro FuelCELL Hybrid

Awards & Recognition

• Golden Oil Droplet (KS Energy and Environmental Award)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Efficiency
• Human Rights
• Integrity and Compliance
• Social Responsibility
• Employee Well-being
• Supplier Sustainability

Environmental Achievements

• Reduced average CO2 emissions of Mercedes-Benz Cars European fleet by 19% over the last five years (to 129 g/km in 2014)
• Reduced CO2 emissions per vehicle produced across divisions
• 90% recovery rate of residual materials in plants
• Increased use of recycled materials in new C-Class (to 3.7% of total vehicle weight)
• Increased use of renewable materials in new C-Class
• New C-Class is 100 kg lighter than predecessor, contributing to fuel consumption reduction

Social Achievements

• Launched Monster Mission, an online game to promote integrity and compliance, engaging 33,000 employees
• Conducted global employee survey with 70% participation rate
• Donated €60 million to charitable institutions and socially beneficial projects
• Launched various CSR initiatives in different regions (e.g., China, India)
• Improved customer satisfaction scores across divisions

Governance Achievements

• Completely revised Group’s compliance system
• Developed a definition of ethical conduct with employees
• Established Daimler Compliance Academy for compliance officers at other companies
• Organized conferences on data protection and responsible sponsorship
• Increased proportion of women in middle and upper management to almost 15%

Climate Goals & Targets

Environmental Challenges

• Balancing customer demand for comfort and features with resource efficiency
• Achieving CO2 emission reduction targets in the face of growing vehicle sales
• Maintaining high ethical standards across a global supply chain
• Addressing challenges related to electromobility (range, charging infrastructure, cost)
• Managing risks associated with connected and autonomous driving (data protection)

Mitigation Strategies

• Investing in green technologies (almost half of R&D investment)
• Launching plug-in hybrid models (aiming for 10 new models by 2017)
• Implementing a comprehensive compliance management system
• Developing a Human Rights Respect System
• Engaging in stakeholder dialogue and collaboration
• Investing in research on alternative fuels and battery remanufacturing
• Developing privacy by design concepts for connected vehicles

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Standards (revised in 2013)
• Requirement for certified environmental management systems (ISO 14001, EMAS, etc.)
• Social principles for contracts for work and services
• Collaboration with industry associations to develop industry-wide frameworks

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• CO2 regulations
• Market shifts towards alternative drive systems

Opportunities

• Development of energy-efficient products and alternative drive systems

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact

Certifications: ISO 14001, ISO 50001, EMAS (almost all German locations), ISO TR 14062 (Mercedes-Benz)

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives related to renewable energy, efficient production, sustainable mobility, resource management, and CO2 emission reduction contribute to these goals.

Sustainable Products & Innovation

• B-Class Electric Drive
• Denza electric vehicle
• Plug-in hybrid models
• New C-Class with lightweight design and recycled materials

Awards & Recognition

• CDP Climate Leadership Award (100 points in CDLI)
• European Environmental Award for NANOSLIDE® technology
• R&D 100 Award for NANOSLIDE® technology
• Max Spohr Prize for exemplary diversity management

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Resource Conservation
• Governance
• Social Responsibility

Environmental Achievements

• Mercedes-Benz Cars & Vans had its climate protection targets scientifically verified by the Science Based Targets Initiative (SBTI) in 2019.
• Set a target to make its new passenger car fleet CO₂-neutral over the vehicles’ entire life cycle by 2039 (Mercedes-Benz Cars).

Social Achievements

• Short-term and medium-term components of remuneration linked to sustainability-related transformation targets and non-financial targets focusing on employees, customers, integrity, and diversity.
• Developed a methodology for assessing environmental risks at worldwide production locations (environmental due diligence) to prevent environmental risks and ensure compliance with statutory requirements.

Governance Achievements

• Established the Group Sustainability Board (GSB) as the central management body for all sustainability issues, reporting to the Board of Management.
• Integrated climate-related issues into the overall risk management process.

Climate Goals & Targets

Environmental Challenges

• Shift of sales from diesel to gasoline engines increased CO2 emissions.
• Rollout of the WLTP certification process impacted CO2 emissions.
• Public debate about diesel vehicles and emission measurement methods.
• Pressure on diesel technology due to NOx levels exceeding limits.

Mitigation Strategies

• Development of a new generation of diesel engines to reduce NOx emissions.
• Planned expansion of electric vehicle models to meet CO2 targets.
• Cooperation with suppliers to identify and implement CO2 reduction measures.
• Use of Design for Environment approach in vehicle development.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cooperation with CO2-intensive suppliers to identify CO2 reduction measures.
• Establish CO2 targets as a key criterion for selecting suppliers (Mercedes-Benz Cars).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stringent climate protection targets
• Changes in legal requirements (e.g., WLTP)
• Public pressure on diesel technology

Opportunities

• Electric mobility
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, EMAS, ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Company's commitment to CO2-neutral mobility and reduction of greenhouse gas emissions.

Sustainable Products & Innovation

• Electric vehicles
• Plug-in hybrid vehicles

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate protection and air quality
• Resource conservation
• Sustainable urban mobility
• Traffic safety
• Data responsibility
• Human rights

Environmental Achievements

• Reduced CO2 emissions at Mercedes-Benz plants (Scope 1 and 2) by 43% compared to the previous year.
• All production at manufacturing locations operated by the Mercedes-Benz Group has been CO2-neutral regarding Scope 1 and Scope 2 since the reporting year.

Social Achievements

• Signed an agreement that gives employees a job-security guarantee until 2029.
• Launched the initiative TransformatiON – Gemeinsam aufbrechen (TransformatiON — Setting off together) to engage employees in the transformation process.
• Women occupied 24.7% of senior management positions worldwide.

Governance Achievements

• Converted the existing credit line of €11 billion into a sustainability-linked loan.
• Issued its first green bond outside the European market as a green panda bond in China.
• Revised the content of the Code of Conduct to include topics such as animal welfare issues.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions and supply bottlenecks for semiconductors and raw materials.
• Sluggish economic development.
• High energy and food prices.
• Insecurity regarding energy supplies.
• Increased competitive pressure in the financial services sector against a background of rising interest rates.

Mitigation Strategies

• Concluded contracts with new semiconductor suppliers.
• Increased reliance on direct procurement of raw materials.
• Increased cost efficiency throughout the company.
• Implemented measures to reduce fixed and variable costs and lower investments.
• Actively playing a more active role along its supply chains to safeguard and increase the resilience of these business activities.

Supply Chain Management

Supplier Audits: 825 on-site audits completed in 2022

Responsible Procurement

• Responsible Sourcing Standards (RSS)

Climate-Related Risks & Opportunities

Physical Risks

• Climate conditions and changes

Transition Risks

• Changed political conditions, technological developments and changing markets

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13

The Group’s strategic goals are based on the UN’s 17 Sustainable Development Goals (SDGs), especially SDGs 8 and 9 and 11 to 13.

Sustainable Products & Innovation

• All-electric vehicles
• Plug-in hybrid vehicles
• Electric vans

Awards & Recognition

• 2022 TOP SAFETY PICK+ award (E-Class, GLE-Class)
• 2022 TOP SAFETY PICK distinction (GLC)
• Five stars in the Euro NCAP safety ratings (EQE)
• Euro NCAP Advanced Award (EQE)

Environmental Metrics

ESG Focus Areas

• Climate Change
• E-mobility
• Clean Transportation

Environmental Achievements

• Reduction of CO₂ emissions (Scope 1 and 2) by 80% compared to 2018.
• Increased share of energy from renewable sources to cover energy consumption: Cars 70%, Vans 80%.
• Reduction of CO₂ emissions per car in the new vehicle fleet up to 50% along all stages of the value chain compared to 2020.

Social Achievements

• Not disclosed

Governance Achievements

• Updated Green Finance Framework in March 2023, receiving the highest rating (“Dark Green”) from S&P Global.
• Group Sustainability Committee (GSC) reports to the Board of Management.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Green Bond Principles (ICMA), EU Taxonomy

Certifications: Null

Third-party Assurance: Independent external audit company (limited assurance for key figures)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• All-electric vehicles (EQA, EQB, EQE, EQE SUV, EQS)

Awards & Recognition

• Not disclosed