Appendix

UN Global Compact

Principles

 

UN Global Compact Principles

 

Chapter

Principle 1
Support of human rights

 

We assign a very high priority to recognising and protecting human rights within our company and in the locations where we operate. In our Principles of Social Responsibility and Human Rights, which were passed in 2021, we commit ourselves to upholding the International Bill of Human Rights, the United Nations’ Guiding Principles on Business and Human Rights, and the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work. For us as an automaker, the emphasis is on employee rights, fair working conditions, and the rejection of every form of discrimination and of forced labour and child labour.

  • We are strictly opposed to any kind of child labour as specified by the pertinent ILO Conventions and are committed to abolishing child labour.
  • We strictly oppose forced and compulsory labour as well as every kind of slavery, including modern forms of slavery and human trafficking.
  • We acknowledge our employees’ right to form employee representative bodies and conduct collective bargaining in order to regulate working conditions. We also recognise their right to strike in accordance with the applicable laws.
The overarching human rights activities are directed by the Integrity and Legal Affairs division of the Mercedes-Benz Group AG Board of Management. At the Mercedes-Benz Group, the centre of competence for human rights is the Social Compliance department. In order to ensure effective implementation of our human rights due diligence approach, which is known as the Human Rights Respect System (HRRS), this department works closely with the specialist units responsible for operational implementation, and in particular with the procurement units. In this way, we also emphasize these issues in our corporate governance structure for sustainability. The support of human rights is therefore a key element of our sustainable business strategy. Our Human Rights Respect System enables us to identify and avoid risks and possible negative effects of our business activities on human rights early on. It is applied in our supply chains as well as in our controlled entities.

 

Human rights
Principles of Social Responsibility and Human Rights

Principle 2
Exclusion of human rights abuses

Principle 3
Freedom of association

Principle 4
Elimination of all forms of forced labour

Principle 5
Abolition of child labour

Principle 6
Prevention of discrimination

 

We are committed to providing equal employment opportunities and refraining from any kind of discrimination. We stand up for the fair treatment of all employees and do not tolerate any kind of discrimination or unjustified unequal treatment.

In order to exclude gender-specific or any other discrimination in our recruitment processes, the fixed base remuneration is based on the individual’s function and level. For the same purpose, we have implemented a regular income review that includes mandatory documentation, the inclusion of multiple assessors and a central HR system, which ensures transparency. Our in-house income reviews have shown that the amount of the individual remuneration paid for comparable tasks is determined by factors such as individual performance and experience in a particular function.

 

Principles of Social Responsibility and Human Rights
Employees

Principle 7
Precautionary environmental protection

 

The precautionary principle is particularly important when it comes to managing the local effects of our business activities. This applies, for example, to environmental protection in the production process. We have defined structures and processes in our environmental management system with the aim of enabling transparent reporting for our production sites around the world and clear areas of responsibility at all levels. Currently, all of our 30 production sites are certified to ISO 14001, nine sites to EMAS and 18 sites to ISO 50001. In addition, we regularly conduct environmental due diligence analyses at our locations. Our holistic precautionary approach includes a clear definition of environmental protection targets. For example, we want production to be CO2 neutral at our own Mercedes-Benz Cars and Vans plants worldwide beginning in 2022. Our environmental protection requirements are passed on to our suppliers. For example, we require our suppliers of production materials to operate with an environmental management system that is certified according to ISO 14001 or EMAS. Depending on the specific risks, this also applies to suppliers of non-production materials.

 

Climate protection
Air quality
Resource conservation

Principle 8
Initiatives for promoting environmental responsibility

 

The Mercedes-Benz Group systematically compiles key energy and environmental data from its plants in Germany and abroad. The data in this report reflects the structure of the Group in the reporting year 2021. 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. It does not include the locations of Mercedes-Benz Financial Services.

We accept responsibility for making our vehicles climate-friendly and environmentally compatible throughout their entire life cycle: from the procurement of the raw materials and production to the use phase and the disposal and recycling of the vehicles. In addition, we aim to increase our employees’ environmental consciousness through our internal governance structures, including the use of non-financial remuneration components.

 

Climate protection
Air quality
Resource conservation

Principle 9
Development and diffusion of environmentally friendly technologies

 

The Mercedes-Benz Group has set itself the goal of developing products that are especially environmentally friendly and energy-efficient in their respective market segments. Product development plays a key role in this regard: A vehicle’s environmental impact – and that includes its emissions of CO2 and pollutants – is largely determined during the first phases of its development. The earlier we take environmental aspects into account in this process, the more efficiently we can minimise the environmental impact of our vehicles. We systematically test the environmental friendliness of future products. An important tool in this process is the ongoing documentation of the development process. Here we define specific characteristics and target values – for example, for fuel consumption and pollutant emissions that must be achieved for every vehicle model and every engine variant. In order to further reduce the CO2 emissions of our vehicles, we are developing all-electric and electrified model variants for all of our vehicle types – from cars to vans. Thanks to our modular development approach, we can quickly transfer technologies between our segments. Our development focus is battery-electric mobility for cars. In our “Ambition 2039” we have set ourselves the target of making our fleet of new cars and vans CO2 neutral over the vehicles’ entire life cycle1 by 2039.

 

Climate protection
Air quality

Principle 10
Measures against corruption

 

Our objective is to ensure that all of our employees worldwide always carry out their work in a manner that is in compliance with applicable laws, regulations, agreements with employees’ representative bodies, voluntary commitments, and our values, as set out in binding form in our Integrity Code. One of the main objectives of our compliance activities is to ensure that all applicable corruption-prevention regulations are complied with. The Mercedes-Benz Group has committed itself to fighting corruption in its business activities. Along with complying with all applicable laws, this also involves adhering to the rules of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (1997) and the United Nations Convention against Corruption (2003). As a member of the UN Global Compact, we also seek to ensure that not only the company itself but also its business partners act in accordance with the principles of the UN Global Compact. The most important goals here are to fight corruption around the world in order to enable fair competition, eliminate the damage corruption does to society, and thus improve conditions for everyone.

 

Compliance management

1

This includes vehicles that are sold by Mercedes-Benz AG or that are sold by Mercedes-Benz AG as a general contractor, including conversions.

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