Mercedes-Benz AG

RATING

SECTOR

Automotive

WEBSITE

CONTACT

Daimler AG
70546 Stuttgart
Germany
Phone: +49 711 17 0
Fax: +49 711 17 22244
e-mail: dialog@daimler.com

STOCK EXCHANGE

LISTING

  • Dark Green rating of CICERO

EMPLOYEES

167,921

CHIEF SUSTAINABILITY OFFICER

Renata Jungo Brüngger

AWARDS

  • Mercedes-Benz eCitaro received two awards at the Busworld Europe international bus show in Brussels in 2019: the “Sustainable Bus Award 2020” in the “Urban” category and the “Comfort Label 2019” award
  • German Mobility Award

CONTENT SOURCE

FURTHER READING

Report created by Maribel Sabino

Mercedes-Benz AG

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Mercedes-Benz is both a German automotive marque and, from late 2019 onwards, a subsidiary of Daimler AG.

Daimler AG, commonly known and referred to as Mercedes-Benz, or simply as Daimler, is a German multinational automotive corporation. It is one of the world’s leading car and truck manufacturers. Mercedes-Benz is known for producing luxury vehicles and commercial vehicles. The headquarters is in Stuttgart, Baden-Württemberg.

Daimler AG is one of the world’s most successful automotive companies. With its Mercedes-Benz Cars & Vans, Daimler Trucks & Buses and Daimler Mobility divisions, the Group is one of the leading global suppliers of premium cars and one of the world’s largest manufacturers of commercial vehicles.

Daimler Mobility offers financing, leasing, fleet management, investments, credit card and insurance brokerage, as well as innovative mobility services. Mercedes-Benz is a subsidiary of German-based Daimler and the brand is used on luxury cars, buses and trucks headquarters in Stuttgart, Baden-Württemberg Germany.

Company Sustainability Activity

As a subsidiary to Daimler AG, Mercedes-Benz’s stance on incorporating sustainability into their business model is that of their parent company.

Mercedes-Benz is committed to being a valued and vibrant member of the communities in which their employees live and work. The primary goal is to protect the next generation and will be accomplished through philanthropic partnerships to improve the education, empowerment and environment of underserved and marginalized groups.

Daimler’s efforts towards incorporating sustainability throughout their business model include:

  • Pursuing their vision of a mobility that does not require fossil fuels, consumes fewer resources, and does not cause accidents or traffic jams
  • Creating lasting value for all stakeholder groups: for shareholders, customers and employees as well as for business partners and society as a whole
  • Reducing CO2 emissions with the implementation of Ambition 2039
  • Assessing the economic, environmental, and social impact of their business operations in 2019 and presents their current target program

Daimler aims to reach these targets for climate protection within the next 20 years. They have strongly committed themselves to innovations, openness to new technologies, and competition in order to find the best solutions.

Highlights

  • Offer CO2 -neutral mobility over the next 20 years
  • Decouple resource consumption from growth in business volumes
  • Provide mobility and traffic management solutions that make cities more livable
  • Implement measures that increase safety on the road
  • Continue to utilize data responsibly
  • Assume responsibility for respecting human rights along the entire value chain

Targets

CO2 neutrality at Mercedes-Benz Cars

  • Offer several electric model variants in all segments of Mercedes-Benz Cars by 2022
  • Have all-electric vehicles account for up to 25% of unit sales by 2025
  • Have plug-in hybrids or all-electric vehicles account for more than 50% of their car sales by 2030
  • 40% reduction of the CO2 emissions of the new passenger car fleet by 2030
  • Achieve CO2 neutrality for  new passenger car fleet by 2039

Daimler Trucks & Buses

  • Battery-electric series production vehicles in all core regions by 2022
  • Hydrogen-based series-production vehicles in the second half of the decade
  • CO2 -neutral driving operation by 2039 for new trucks and buses in the markets of Europe, Japan, and NAFTA

Climate-neutral production

  • Production at Daimler plants in Europe will be CO2-neutral as of 2022, when 100% of purchased electricity will come from renewable sources such as wind and hydroelectric power facilities. The rest will be generated by photovoltaic systems on the roofs of  production halls, or in their own highly efficient natural gas-fired combined heat and power (CHP) plants
  • From 2022 on, Daimler will utilize suitable compensation projects to offset the resulting CO2 emissions, as well as other CO2 emissions produced by the use of fossil fuels
  • Aim to achieve an absolute reduction of 50% of CO₂ emissions relative to 2018 in Mercedes-Benz Cars & Vans production operations worldwide by 2030

Improving air quality

  • Daimler’s new fleet of cars will no longer have a significant impact on NO₂ pollution in urban areas starting in 2025 
  • Increase transparency with regard to particulate emissions and are working to further reduce such emissions
  • Mercedes-Benz has systematically adapted its product portfolio to a new generation of diesel engines over the last few years and has invested approximately €3 billion in development and production for this purpose. Vehicles equipped with the new engines also display low NOX emissions in real driving operation

Energy consumption

  • Passenger cars –43% Status as of 2019: –10%
  • Vans –25% Status as of 2019: –7%

Water consumption

  • Passenger cars –33% Status as of 2019: –7%
  • Vans –28% Status as of 2019: –12%

Waste for disposal 

  • Passenger cars –43% Status as of 2019: –25%
  • Vans –33% Status as of 2019: –31%

Primary raw material consumption 

  • Passenger cars–40%

Human Rights

  • Service supply chain complete 100% of all evaluations of new and existing suppliers by 2021
  • Review 70% of all high-risk production raw materials and define any necessary measures for these by 2025
  • Define measures for addressing 100% of  production of raw materials that harbor a higher risk of human rights violations by 2028

People

  • Attractiveness as an employer for digitally talented people
  • Empowerment of employees for the digital transformation
  • Agreement rate “diversity (fair treatment)” up to 2030
  • Proportion of women in leading management positions until 2020

Progress

Waste disposal

  • 89% reduction of specific waste for disposal in trucks & buses plants
  • Aim to avoid waste and unnecessary resource and energy consumption wherever possible. Within the framework of their remanufacturing approach, the company is employing an industrial process to recondition used Mercedes-Benz GenuineParts. These genuine replacement parts, which include engines and transmissions, are thus recycled and used in a second automotive life cycle. This remanufacturing approach is being utilized for both traditional drivetrain components and the high-voltage batteries that are used in their electric and hybrid vehicles

Recycling

  • Daimler disassembles end-of-life vehicles at Mercedes-Benz used parts center (Gebrauchtteile-Center — GTC) in Neuhausen, Germany and make sure that as many used parts as possible can be reused and sold. Parts and components that are not suitable for reuse are recycled. The goal here is to recover as many valuable recyclable materials as possible — for example copper cables, aluminum and iron scrap, glass, plastics, and shock absorbers
  • High-voltage batteries that have been taken from electric and hybrid vehicles and are no longer suitable for remanufacturing are set aside for reuse. The reuse of electric vehicle batteries enables us to improve the eco-balance and economic efficiency of electric vehicles while also making a contribution to a sustainable energy industry

Certificates

  • ISO 14001

UN Sustainable Development Goals

UN SDGs Compliance

SDG 8

  • Daimler supports the implementation of humane working conditions by developing and implementing a risk-based management approach to respecting and upholding human rights in their own units and supply chain 

SDG 9

  • Daimler is shaping the sustainable mobility of the future by connecting their CASE areas: Connected, Autonomous, Shared & Services, and Electric

SDG 11 

  • Daimler is promoting sustainable mobility in metropolitan regions through its offers such as electrified city buses and trucks, car-sharing, ride hailing, and the multimodal linking of mobility services. 

SDG 12 

  • Daimler is working to increase the efficiency of their vehicles and significantly reduces their use of raw materials. One of their tasks is to reinforce the closed material loops for the primary raw materials that are needed for their electric vehicles. In this way they are laying the groundwork for sustainable production patterns

SDG 13 

  • Through their sustainable business strategy and the associated measures and goals for reducing the emissions of their vehicles, plants, and supply chain, Daimler is contributing to global climate protection

Secondary SDGs: 3, 4, 5, 10, 16, 17

As a brand of Daimler AG, Mercedes-Benz uses the sustainability report published by their parent company. The report outlines Daimler’s sustainability initiatives, along with specific targets and progress made by Mercedes-Benz.

Despite having few certificates, awards and listings, the automotive company produces a comprehensive report with specific targets and goals for reducing their CO2 emissions, energy consumption, waste, recycling, renewable energy, human rights, and raw material consumption in alignment with the UN Sustainable Development Goals.

Daimler’s transparency is noteworthy.

In addition, Daimler and Mercedes-Benz have made strides to promote sustainability. To see other initiatives, see the Key Points section below. This company has been rated a C. 

Analyst Outlook: Positive

Despite being in the automotive industry, Daimler AG is pushing Mercedes-Benz towards sustainability. Their transparency is paramount along with their ambitious, yet attainable goals to reduce CO2 emissions and integrate electric mobility.

However, the lack of certifications and listings do not support the company’s initiatives and strategies.

Key Points

  • Mercedes-Benz AG joins “The Climate Pledge” – a commitment co-founded by Amazon and Global Optimism with its own Ambition2039 initiative
  • Daimler is working together with a wide variety of partners, ranging from startups to major industrial groups, along the road to CO2 -neutral mobility and sustainable products and services to reach these goals.
  • In September 2020, Daimler issued its first green bond steadily advancing towards CO₂-neutral technologies and services. The green bond is in line with the International Capital Market Association’s (ICMA) Green Bond Principles and is guided by the Daimler Green Finance Framework, which was introduced in June 2020. Daimler will allocate the net proceeds from the green financing instruments in accordance with the Framework to develop and produce zero-emission vehicles such as battery-electric (BEV) and fuel-cell electric vehicles (FCEV).
  • The sustainability report has been prepared in accordance with the GRI Standards: Comprehensive option. The relevant indicators are directly shown in the texts and combined in the GRI Index
  • Mercedes-Benz Cars & Vans had its climate protection targets scientifically verified by the Science Based Targets Initiative (SBTI) in 2019. This makes it clear that their targets are aligned with the Paris Agreement and the latest findings of the scientific community.
  • To this end, Daimler is working with organizations such as CDP to assess the environmental impact of their passenger car supply chain. They are cooperating closely with their most CO2-intensive suppliers to also identify effective CO2 reduction measures in this area. Their goal at Mercedes-Benz Cars is to establish CO2 targets as a key criterion for selecting suppliers and concluding supplier agreements.
  • Daimler’s Framework obtained “Dark Green”, the highest rating of CICERO, a leading provider of independent, research-based evaluations of green finance frameworks.
  • Daimler Sustainability Dialogue, which has been held annually in Stuttgart since 2008, brings about 100 sustainability experts from various fields together with Daimler representatives, including several members of their Board of Management. Attendees discuss current and future sustainability issues, assess the progress they have made as well as the associated deficits and risks, and use these findings to define the actions they need to take in the future.
  • Daimler is promoting sustainability throughout the automotive industry Daimler AG is a LEAD partner in the automotive industry’s “Drive Sustainability initiative” — a European working group coordinated by the CSR Europe corporate network that seeks to improve sustainability in the automotive supply chain. The initiative has developed an important tool in the form of a standardized sustainability questionnaire for suppliers. In addition, the initiative offers joint training courses and workshops for suppliers to help them improve their sustainability performance.
  • Daimler is striving to make their communication on human rights issues more transparent. To this end, they will report in the future in more detail on their website about their approaches, the progress they make, and their achievements in this area and they will also describe the complex challenges associated with the topic. In this manner Daimler will actively address the expectations and information requirements of their customers, investors, rating agencies, NGOs, and the interested public. Their objective here is to increase the trust external stakeholders place in them with regard to human rights measures.
  • Responsible Minerals Initiative: Daimler has been a member of the Responsible Minerals Initiative (RMI) since 2018. The RMI uses an independent validation scheme for refineries and smelters to demonstrate that they have systems in place to ensure the responsible sourcing of minerals. 
  • Aluminium Stewardship Initiative: Daimler joined the nonprofit Aluminium Stewardship Initiative in 2018 in order to support the implementation of an independent certification scheme for the entire aluminum value chain.
  • Responsible Steel Initiative: The Responsible Steel Initiative aims to increase transparency in the steel supply chain and to this end is developing a certification system for environmental and social standards. It also focuses on lowering CO2 emissions in production. Daimler has been a member of the initiative since 2018.
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