Appendix

Report profile

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In this Sustainability Report we assess the main effects of our business operations in 2021 and present our current target programme. This report is available online and as a PDF file. Special features of the online report include a search function, an in-depth GRI Index which is linked to the respective sections of the report, a glossary of specialist terms and a key figure tool. This key figure tool enables readers to compile tables according to their information needs. The PDF version of the report combines all of the content into one document. Searched topics and information can be accessed directly chapter by chapter. The PDF file also contains numerous links to additional online information.

New corporate structure

The Board of Management and the Supervisory Board of the former Daimler AG decided in 2021 to spin off and hive down the commercial vehicle business (“Project Focus”). The implementation of these measures resulted in a realignment of the company. The separation aims to improve the conditions for the implementation of the respective strategies of the remaining Mercedes-Benz Group and the new Daimler Truck Group. Each company will develop and pursue its own independent strategy. The business activities of the two groups will be even more independently diversified in line with their customers, technologies, risks and markets and the necessary processes will be adapted to the competitive environment and changing market conditions in an even more agile and targeted manner. Moreover, the separation provides the Daimler Truck Group with direct access to the capital market and thus to additional sources of funding. At the Extraordinary General Meeting in October 2021, the shareholders voted in favour of implementing “Project Focus” and the resulting change of the name Daimler AG to Mercedes-Benz Group AG, effective 1 February 2022.

The commercial vehicle business concentrated in Daimler Truck AG was completely separated from the Daimler Group and transferred under the umbrella of Daimler Truck Holding AG to an independent group that has its own financial services company. Trading in the shares of Daimler Truck Holding AG began on the Frankfurt Stock Exchange on 10 December 2021.

The information in this Sustainability Report pertains to the entire Mercedes-Benz Group and its segments. We use a control approach, which means that the calculations take all of the Group’s production-related majority holdings fully into account. Mercedes-Benz Group AG is the parent company of the Mercedes-Benz Group and has its headquarters in Stuttgart. With the new corporate structure, effective since 10 December 2021, the Group’s business operations under the umbrella of Mercedes-Benz Group AG are managed in two units. Mercedes-Benz AG is responsible for the business of Mercedes-Benz Cars & Vans and its brands Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach and Mercedes-EQ. Mercedes-Benz Mobility AG encompasses financing, leasing and insurance services that are closely linked to mobility services such as fleet management, rental services and participating interests in on-demand mobility services. Mercedes-Benz Group AG carries out the functions of controlling and governance and provides services for the Group companies. As the parent company, it also defines the Group’s strategy, makes strategic decisions for business operations and ensures the effectiveness of organisational, legal and compliance-related functions throughout the Group.

The reporting period corresponds to our financial year, which runs from 1 January to 31 December.

GRI standards — “Comprehensive” option

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In 2006, the Mercedes-Benz Group (Daimler at that time) joined the multi-stakeholder network of the Global Reporting Initiative (GRI), where it initially was an organisational stakeholder. It later became a Gold Community Member and is now a member of the GRI Community. This report has been prepared in accordance with the GRI standards Comprehensive option.

What has changed in this report?

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This report is based on the sustainable business strategy of the Mercedes-Benz Group. It is divided into two conceptual levels: “Magazine” and “Reporting”. In the “Magazine” section, we put the external sustainability developments and trends into a context with the internal strategies and measures.

The “Reporting” section provides a detailed description of the goals, due diligence approach, measures and achievements of 2021. It contains detailed reports according to the relevant standards. In order to provide our readers with a faster overview, we have organised the contents according to the ESG (Environmental, Social, Governance) topic areas. We have assigned this information to our six areas of action and three enabler topics, which are cross-sector themes that can also influence the areas of action. The areas of action are: Climate protection & air quality, Resource conservation, Sustainable urban mobility, Traffic safety, Data responsibility and Human rights. The enabler topics are Integrity, People and Partnerships. The overarching management of our sustainability activities is described in the “Sustainable corporate governance” section. On the basis of the 2020 materiality analysis, we have included “Sustainability and customer orientation” for the reporting year and combined it thematically in the chapters “Sustainable corporate governance” and “Climate protection”. For 2021, we have once again presented the sustainability activities in the supply chain in the individual strategic areas of action (Climate protection, Resource conservation and Human rights, as well as Sustainable corporate governance). In addition to our strategic areas of action and enabler topics, we describe the measures we conduct in the area of “Social commitment” in a separate chapter. A new feature is the compact depiction of key figures and data along the value chain.

Reporting principles

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We accept our responsibility for the content of the Sustainability Report 2021. To the best of our knowledge, we have compiled the information in the Sustainability Report 2021 free of material errors or omissions, while taking into account the type of business, the respective information processes, the type of information and the measurement, calculation and estimation measures used. In order to ensure the completeness of the information, we made corresponding omission statements in accordance with the GRI requirements wherever the available data may have been insufficient.

We conducted a comprehensive materiality analysis in 2020 in order to determine which sustainability issues are particularly relevant for the Mercedes-Benz Group (Daimler at that time) and its stakeholders. The analysis addressed both existing strategic areas of action and fundamentals, as well as further potential significant sustainability issues and trends. The analysis consists of the following components: a comprehensive analysis of competitors, media reporting, regulatory requirements, SDG impacts and information relevant to capital markets, as well as a broad-based online stakeholder survey and interviews with experts. In addition, during the preparations for the 2022 materiality analysis, we once again verified the topics by conducting a media analysis in August 2021.

We consider the information that is presented on this basis to be balanced, appropriate and complete with regard to the material topics. Facts that are considered relevant in accordance with the legal definition of materiality are part of the Non-financial declaration 2021.

Reviewed according to ISAE 3000

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We engaged KPMG AG Wirtschaftsprüfungsgesellschaft to examine Mercedes-Benz Group’s sustainability report with limited assurance. The examination was based on the International Standard on Assurance Engagements 3000: Assurance Engagements Other than Audits or Reviews of Historical Financial Information (ISAE 3000), published by the International Auditing and Assurance Standards Board (IAASB). The main focus of the review was on the Group level and was supplemented by spot checks in individual plants. The following information was reviewed:

  • Key figures on energy consumption, CO2 emissions from energy consumption, water supply and waste by waste category for the reporting year 2021
  • Key figures on CO2 emissions (Scope 1, Scope 2 and Scope 3, except for the depicted life cycle assessments)

Pursuant to Sections 315b and 315c of the German Commercial Code (HGB), we report on non-financial matters in our combined management report, which was reviewed with reasonable assurance during the examination of the consolidated financial statements by KPMG AG Wirtschaftsprüfungsgesellschaft. An exception is the information regarding the EU taxonomy, which was reviewed with limited assurance.

Among other things, this Sustainability Report also contains the following information, which has been reviewed with reasonable assurance:

  • CO2 emissions of the new car fleet in Europe in 2021
  • GHG CO2 fleet value in the United States for cars and light trucks of model year 2021
  • Fleet consumption value of cars in China (import) in 2021 in l/100 km

After the review we received an independent assurance report that presents the aim, purpose and foundations of the examination, the work performed and its conclusions. The internal reporting on this is conducted by the Group Sustainability Board.

Non-financial declaration (NFS)

Pursuant to Sections 315b and 315c of the German Commercial Code (HGB), we report on non-financial matters in our combined management report, which was reviewed with reasonable assurance during the examination of the consolidated financial statements by KPMG AG Wirtschaftsprüfungsgesellschaft. An exception is the information regarding the EU taxonomy, which was reviewed with limited assurance.

UN Global Compact Communication on Progress

We have committed ourselves to upholding the ten principles of the UN Global Compact. The Mercedes-Benz Group (Daimler at that time) was one of the first signatories of the UN Global Compact. We are involved in thematic and regional working groups and initiatives of the UN Global Compact. In the reporting year, these included the action platforms “Reporting on the SDGs” and “Decent Work in Global Supply Chains” as well as the UN Global Compact Expert Network and the German Global Compact Network. With this Sustainability Report we are meeting our obligation to report regularly on our initiatives regarding human rights, labour standards and employee rights, environmental protection and the fight against corruption. In July 2021, we submitted the Sustainability Report 2020 together with the document titled “Realising the Blueprint: Corporate Action Plan” as our official UN Global Compact Communication on Progress. We will present the next Communication on Progress in July 2022.

Reporting process and quality assurance

We conduct detailed benchmark analyses and we also have an internal process for reviewing our targets, measures and areas of action.

Scope of reporting and data acquisition methods

Economic data

The information about economic relationships that is presented in the Sustainability Report for 2021 is based on data from the Mercedes-Benz Group Annual Report 2021. The annual financial statements of the Mercedes-Benz Group and the combined management report 2021 of Mercedes-Benz Group AG and the Group were audited by KPMG AG Wirtschaftsprüfungsgesellschaft and given an unqualified opinion.

People data

The facts and figures in the People section correspond to the facts and figures in the Mercedes-Benz Group Annual Report 2021. The reporting on human resources data is based mainly on the HR eData and HR ePARS personnel planning and reporting systems. The data from all of the Group’s consolidated companies worldwide flows into these two systems. They are based on the respective local HR systems. For Germany, this is ePeople. The texts and diagrams indicate whether the data refers to the entire Group or only to parts thereof.

Data collection on corporate environmental protection

The data in this report reflects the structure of the Group as of 31 December 2021. This structure includes all the production plants of which the Mercedes-Benz Group is a majority shareholder, as well as the German and European locations of the logistics, service and sales units. The locations of Mercedes-Benz Mobility AG are not taken into account. For this reason, the timelines may differ from those of previously published data. New locations are taken into account from the date of commencement of series production. The environmental data for 2021 refers to a total of 30 production locations as well as three more units for research and development, logistics and sales.

Specific environmental and energy data

Resource consumption and emissions are largely dependent on the number of units produced. This is why we calculate specific values for the individual segments. For this purpose, the number of vehicles of the segment manufactured in the consolidated plants is related to the corresponding data of the production plants. We measure the specific values of the Cars and Vans units according to the segmental allocation that has been in force since 2006. The figures for the period through 2020 still contain the data for Daimler Truck AG. Beginning in the reporting year 2021, only the data for the Mercedes-Benz Group is shown. The specific data gained in this way can only serve as general benchmarks, because it does not take into account the different ways in which the vertical integration of production has developed, the diversity of products or the special features of the production network, which in some cases extends across divisions.

Editorial note

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This report includes data about CO2 labelling of various vehicles. Further information on official fuel consumption figures and the official specific CO2 emissions can be found in the guide “Information on the fuel consumption, CO2 emissions and electricity consumption of new cars”, which is available free of charge at all sales dealerships and from Deutsche Automobil Treuhand GmbH (www.dat.de).

Our last Sustainability Report was published on 29 March 2021 under the title “Sustainability Report 2020: SpurWechsel — We Are Changing Lanes”. The report for the reporting year 2021 was published on 21 March 2022, under the title “Mercedes-Benz Group Sustainability Report 2021”. Our next report is scheduled for March/April 2023.

Forward-looking statements

This document contains forward-looking statements that reflect our current views about future events. The words “anticipate”, “assume”, “believe”, “estimate”, “expect”, “intend”, “may”, “can”, “could”, “plan”, “project”, “should” and similar expressions are used to identify forward-looking statements. These statements are subject to many risks and uncertainties, including an adverse development of global economic conditions, in particular a decline of demand in our most important markets; a deterioration of our refinancing possibilities on the credit and financial markets; events of force majeure including natural disasters, pandemics, acts of terrorism, political unrest, armed conflicts, industrial accidents and their effects on our sales, purchasing, production or financial services activities; changes in currency exchange rates, customs and foreign trade provisions; a shift in consumer preferences towards smaller, lower-margin vehicles; a possible lack of acceptance of our products or services which limits our ability to achieve prices and adequately utilise our production capacities; price increases for fuel or raw materials; disruption of production due to shortages of materials, labour strikes or supplier insolvencies; a decline in resale prices of used vehicles; the effective implementation of cost-reduction and efficiency-optimisation measures; the business outlook for companies in which we hold a significant equity interest; the successful implementation of strategic cooperations and joint ventures; changes in laws, regulations and government policies, particularly those relating to vehicle emissions, fuel economy and safety; the resolution of pending government investigations or of investigations requested by governments and the conclusion of pending or threatened future legal proceedings; and other risks and uncertainties, some of which are described under the heading “Risk and Opportunity Report” in the Annual Report. If any of these risks and uncertainties materialise, or if the assumptions underlying any of our forward-looking statements prove to be incorrect, the actual results may be materially different from those we express or imply by such statements. We do not intend or assume any obligation to update these forward-looking statements since they are based solely on the circumstances at the date of publication.

Contact for the report

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Mirjam Bendak
E-Mail: mirjam.bendak@mercedes-benz.com

Provider/Privacy

Mercedes-Benz AG Mercedesstraße 120
70372 Stuttgart
Germany
Phone: +49 7 11 17-0
E-Mail:
dialog@mercedes-benz.com

Represented by the Board of Management: Ola Källenius (Chairman), Jörg Burzer, Renata Jungo Brüngger, Sabine Kohleisen, Markus Schäfer, Britta Seeger, Hubertus Troska, Harald Wilhelm

Chairman of the Supervisory Board: Bernd Pischetsrieder

Court of Registry: Stuttgart; commercial register no. 762873
VAT ID: DE 32 12 81 763