Mercedes Benz : Climate transition action plan 2024

Climate Transition Action Plan

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The ambition

Page 04 - 11

How the transformation succeeds

Page 12 - 27

Steering and organisation

Page 28 - 33

Climate scenarios

Page 34 - 35

Just transition

Page 36 - 39

Climate and nature

Page 40 - 43

Calculation basis and transparency

Page 44 - 47

Full electrification of the vehicle fleet - that is one of the goals on the path to a sustainable future that the Mercedes-Benz Group is on. A path for which the Group already set the course in 2019 with its Ambition 2039. For Mercedes-Benz, the topic of sustainability is a holistic approach to the company, its activities, its employees and partners - taking into account all ESG (Environment, Social & Governance) aspects. Decarbonization along the entire value chain is the focus of this holistic approach. That's why Mercedes-Benz is taking the necessary steps to go all electric. However, the electrification of the vehicle fleet is only one of the important levers for achieving the ambitious goals. The decarbonisation of the supply chain and production are also the focus of the Group's actions.

The Mercedes-Benz Group hereby publishes its second action plan for decarbonisation. The Mercedes Benz Climate Transition Action Plan outlines the steps necessary to achieve the set short- and long-term goals on the road to net carbon-neutrality - the Ambition 2039. It describes how the Group's strategy, organ- isation, assets and processes are geared towards the challenges of transformation and the goals of the Paris Climate Agreement.

The Mercedes-Benz Group is committed to a high degree of transparency. The Climate Transition Action Plan provides a comprehensive but compact overview of the Group's sustainable transformation. Many more details on planned and already implemented measures, goals and initiatives can be found in the following sources:

Sustainability Report

Climate Policy Report

Website Mercedes-Benz Group

The ambition

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As a player in the transport sector, the Mercedes-Benz Group supports the Paris Climate Agreement: It is convinced of the objectives of the agreement and is working to implement them in all its divisions. Around one fifth of greenhouse gas emissions in Europe are caused by the transport of people and goods by road. The Mercedes-Benz Group is taking deliberate measures to counteract this trend and has made climate protection a core element of its business strategy. The Group's ambition is to make the entire Mercedes-Benz new vehicle fleet net carbon-neutral1 across all stages of the value chain by 2039.

The necessary transformation to a climate-neutral society requires the transformation of entire industries. The Mercedes-Benz Group wants to actively shape the transformation of the automotive industry and is transforming its products and the services that are at the heart of its business. Mercedes-Benz is taking the necessary steps to go all electric. At the same time, the Group takes climate protection into account in all life cycle phases of its automobiles - from the supply chain and its own production to the use and disposal of the vehicles.

1 Net carbon-neutral means that no CO₂ emissions are generated, or any remaining unavoidable CO₂ emissions are offset by certified compensation projects.

Climate Transition Action Plan | Mercedes Benz Group AG

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Emissions reduction throughout the value chain

The Mercedes-Benz Group sets itself ambitious targets for CO₂ reduction in the individual life cycle phases of its vehicles and systematically analyses the resulting CO₂ emissions and other environmental impacts along its entire value chain: from the supply chain and its own production to the use and disposal of the vehicles.

For the entire life cycle of the Mercedes-Benz Cars fleet and the Mercedes-Benz Vans fleet worldwide, Mercedes-Benz calculates emissions in accordance with the requirements of the 2004 Corporate Accounting and Reporting Standard of the Greenhouse Gas Protocol Initiative.

At 78 %1, the majority of the Mercedes-Benz Group's reported emissions are generated in the use phase, i.e., in the production of fuel and electricity (well-to-tank) and in the operation of its products (tank-to-wheel). Around 18 %1 of indirect Scope 3 emissions are attributable to the supply chains that provide the Mercedes-Benz Group with goods and services.

The most important levers for reducing CO₂ emissions in the vehicle sector are electrification of the vehicle fleet, charging with green electricity, improving battery technology, decarbonising the supply chain and the comprehensive use of renewable energies in production.

1 As of 2023

Scope 1, 2 and selected Scope 3 CO₂ emissions in t per vehicle, Mercedes-Benz Cars 20231

1 A description of the calculation basis can be found in the Mercedes-Benz Group Sustainability Report 2023, chapter

Calculation and documentation of CO₂ emissions (Page 80-81).Detailed information on the determination and amount of Scope 3 CO₂ emissions can be found in the table CO₂ emissions Scope 1, Scope 2 and selected Scope 3 categories worldwide for Mercedes-Benz Cars (Page 82).

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Scope 1, 2 and selected Scope 3 CO₂ emissions in t per vehicle, Mercedes-Benz Vans 20231

1 A description of the calculation basis can be found in the Mercedes-Benz Group Sustainability Report, chapter

Calculation and documentation of CO₂ emissions (Page 80-81).Detailed information on the determination and amount of Scope 3 CO₂ emissions can be found in the table CO₂ emissions Scope 1, Scope 2 and selected Scope 3 categories worldwide for Mercedes-Benz Van (Page 83).

The Mercedes-Benz Climate Transition Action Plan at a glance

With "Ambition 2039", the Mercedes-Benz Group aims to achieve a net carbon-neutralnew vehicle fleet along the entire value chain and over the vehicles' entire lifecycle in less than 20 years. A central point here is the electrification of the vehicles.

On the way to Ambition 2039, Mercedes-Benz Cars has defined an ambitious interim target: by the end of this decade, it aims to reduce CO₂ emissions per passenger car in the new vehicle fleet up to 50 % along all stages of the value chain compared to 2020. The focus is on avoiding and reducing CO₂ emissions, which is to be achieved primarily with the transformation towards an all-electric product range and technological innovation in all life cycle phases.

Climate Transition Action Plan | Mercedes Benz Group AG

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End of life

Well-to-tank

Use phase

Tank-to-wheel

	Production
Production phase	Logistics
Supply chain

Offer an electrified 4 alternative for every model from Mercedes-Benz Vans - target achieved

Net carbon-neutral production in company-ownedMercedes-Benz production plants worldwide5

In the second half of the decade:

Increase the proportion of electrified3 vehicles in the fleet of new vehicles at Mercedes-Benz Cars to as high as 50 %1

Electrify all new vehicle architectures1,3

Offer an electrified3 variant for every model from Mercedes-Benz Cars1

2022 2025

1 The pace of transformation is determined by market conditions and customers.

2  Compared to 2020 (value chain stages: procured goods, production, logistics, fuel and energy generation, driving operation, disassembly and treatment processes). 3  Plug-in hybrids and all-electric vehicles.

4  All-electric vehicles.

5 In addition to the production sites of the consolidated subsidiaries, the production sites of the following non-consolidated subsidiaries are included: Star Transmission srl (Cugir, Romania), STARKOM, proizvodnja in trgovina d.o.o. (Maribor, Slovenia) and STARCAM s.r.o. (Most, Czech Republic).

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By the end of the decade:

Reduction of the CO₂ emissions per car in the new vehicle fleet up to 50 % along all stages of the value chain1,2

Increase the proportion of electrified4 vehicles in the fleet of new vehicles at Mercedes-Benz Vans to more than 50 %1

Reduction of CO₂ emissions (Scope 16 and 27) by 80 %8

Increase the share of energy from renewable sources to cover energy consumption: Cars 70 %, Vans 80 %

Ambition 2039

A fleet of new Mercedes-Benz vehicles that is net carbon-neutral along all stages of the value chain

Increase the share of energy from renewable sources to cover 100 % of energy consumption

All production materials procured by Mercedes-Benz Cars and Mercedes-Benz Vans are net carbon-neutral

2030 2039

6Scope 1 emissions are direct CO₂ emissions from sources for which the company is directly responsible or that it directly controls.

7  Scope 2 emissions are indirect CO₂ emissions from purchased energy such as electricity and district heating that are generated externally but consumed by the company.

8  Compared to 2018.

The Mercedes-Benz Group has defined further targets for its own operations: by 2030, it plans to reduce CO₂ emissions in the production plants (Scope 1 and Scope 2) by 80 % compared to 2018. The share of renewable energies is to be significantly increased. The Group has set itself the target of covering more than 70 % (cars) or 80 % (vans) of its energy requirements in production with renewable energies by 2030. The ambition for all Mercedes-Benz production plants worldwide is to run 100 % on renewable energy by 2039.

Other corporate divisions are also continuously working on decarbonising their own remits. In the supply chain, the company has integrated target values into the criteria for award processes across the board in order to reduce CO₂ emissions, particularly for components from carbon- intensive production processes. The sales organisation also has a roadmap to support sales partners worldwide in their transformation to net carbon-neutrality. Transport logistics focuses, among other things, on logistics network optimisation and cooperation with transport service providers in order to find innovative and climate-compatible transport alternatives.

External validation of targets

The Scope 1 and 2 as well as Scope 3 mid-term emission reduction targets of Mercedes-Benz Cars and Vans were confirmed externally by the Science Based Target Initiative (SBTi) in 2019. Mercedes-Benz Cars and Vans have committed to reducing their absolute Scope 1 and Scope 2 emissions by 50 % by 2030 compared to 2018. This target was already achieved in 2022, which is why the Mercedes-Benz Group plans to reduce CO₂ emissions at its production plants (Scope 1 and Scope 2) by 80 % by 2030 compared to 2018. The target of reducing the CO₂ emissions of the Mercedes-Benz new car fleet by more than 40 % compared to 2018 in terms of the use phase (well-to-wheel) has also been confirmed by the Science Based Targets initiative (SBTi). The annual reporting on the target achievement is carried out as part of the response to the CDP questionnaire (global environmental disclosure system).

At the end of March 2024, the SBTi published a new preliminary guidance for the transport sector, which is valid until the development of a final 1.5°C compliant reduction path for the automotive industry (Sectoral Decarbonisation Approach). The Mercedes-Benz Group is reviewing the criteria and requirements of the corresponding interim solution (as of 04/2024).

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