Climate protection

Climate protection as it relates to our vehicles and services

Strategy and concepts

Reduction of CO2 emissions from road traffic

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For the Mercedes-Benz Group, the Paris Agreement represents more than just an obligation; our commitment to its targets stems from our fundamental convictions. We believe that it is our mission to contribute to CO2 neutral mobility around the world.

With respect to CO2 emissions from road traffic, EU legislation focuses on reducing the emissions of new vehicles, for which it defines concrete targets. According to the proposed European Commission regulation that was published in July 2021, the CO2 emissions of cars are to be reduced by 55 per cent (previously 37.5 per cent) by 2030 compared to the base year of 2021. The CO2 reduction requirement for 2025 will stay at 15 per cent relative to 2021. The proposed legislation also states that the average CO2 emissions should be 0 g CO2/km in 2035.

The Mercedes-Benz Group realises that achieving this target will require a high level of investment. In order to finance it, we intend to increasingly use new tools such as in the future. Green bonds offer environment-oriented investors the opportunity to directly participate in the implementation of our technological strategy. However, the broad-based success of low-emission mobility requires not only sustainable investment but also the corresponding framework conditions. From our current perspective, we need ambitious CO2 pricing systems for fossil fuels and the creation of a comprehensive charging infrastructure as well as a hydrogen filling station network.

On the road to a climate-neutral future

In order to achieve its long-term climate-protection goal of becoming CO2 neutral by 2039, Mercedes-Benz is planning the complete electrification of its product range. By the end of this decade, Mercedes-Benz wants to be all-electric wherever market conditions allow. This strategic step from electric-first to electric-only will accelerate the transformation of Mercedes-Benz to an emission-free, software-driven future. We underscored this fact during the UN Climate Change Conference in Glasgow in November 2021, when we signed the COP26 Declaration on accelerating the transition to 100 per cent zero-emission cars and vans. In the declaration, the Mercedes-Benz Group was the only German automaker to confirm that it is working to offer only emission-free cars and vans in leading markets from 2035.

Mercedes-Benz’s Ambition 2039 strategy aims not only to help make the world climate-neutral but also to get our customers enthusiastic about such a climate-neutral future. For many customers, it’s important that the products they use do not impact the environment and that they do not have to make any compromises while using these products in their daily life. With its product range, Mercedes-Benz wants to fulfil both of these customer requirements.

Environmental aspects during product development

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Mercedes-Benz has set itself the goal of developing products that are especially environmentally friendly and energy-efficient in their respective market segments. Our environmental and energy guidelines define how we intend to reach this goal. Product development plays a key role in this regard: a vehicle’s environmental impact — including its emissions of CO2 and pollutants — is already largely determined during the first phases of its development. The earlier in the development process we take environmental aspects into account, the more efficiently we can minimise the environmental impacts of our vehicles.

Making life cycle assessments

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In order to evaluate the environmental compatibility of a vehicle, Mercedes-Benz carries out life cycle assessments. We systematically examine a vehicle’s CO2 emissions and other environmental effects throughout its entire life cycle — from the extraction of raw materials and vehicle production to product use and recycling. Among other things, these analyses have made it clear that as more and more vehicles are electrified, the focus is shifting towards other factors, such as the production of the high-voltage battery and the generation of the electricity for charging the battery. Beginning with the EQS, battery cells are produced with CO2 neutral electricity and the Group is promoting battery charging with electricity from sustainable sources.

We record and publish the key figures for the life cycle assessments in line with the basic principles of the .

We correspondingly divide our greenhouse gas emissions into three categories called the Greenhouse Gas Scopes. Scope 1 comprises all the emissions we cause ourselves through the combustion of energy carriers at our production locations, such as the generation of electricity and heat in our own power plants. Scope 2 includes all emissions that are due to external providers from whom we purchase energy in forms such as electricity and district heating. Scope 3 includes all the emissions that are generated before (upstream of) or after (downstream of) our business operations. For example, Scope 3 includes the CO2 emissions that arise in the supply chain (purchased goods and services), as a result of our vehicles’ operation in customers’ hands (the use phase, including the production of fuel and electricity), or in the recycling phase of the vehicles.

The GHG Protocol specifies a total of 15 categories of Scope 3 emissions. The emissions are determined on the basis of comprehensive methodological considerations and complex calculations. Most (approximately 80 per cent) of our reported Scope 3 emissions are generated during the use phase — in other words, during the production of fuel, and the generation of electricity () and the driving operation of our products (). About 17 per cent of our indirect Scope 3 emissions are due to the supply chains that provide us with goods and services.

We determine the CO2 emissions of our vehicles in the use phase on the basis of our worldwide sales figures and the fleet’s average normalised CO2 emissions figure. For this calculation, we assume that each vehicle travels 20,000 kilometres per year. We also assume that each car is used for a period of ten years. The average total mileage thus amounts to 200,000 kilometres per vehicle.

At the moment, it is safe to assume that Scope 3 reporting will play an important role in the struggle to limit climate change in the future. We expect that this will create more transparency and trigger a competition among CO2 emitters to develop the most effective way to limit the greenhouse gases that are damaging the climate.

Responsibilities

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Corporate management is responsible for setting strategic goals, including targets for reducing our CO2 emissions, and for monitoring the progress made in achieving these goals. The Product Steering Board (PSB) is responsible for monitoring the development of the CO2 emissions of the car fleet in markets in which such emissions are regulated. It is also responsible for providing forecasts. The CO2 Project and Steering Committee (CO2 PSC) does the same for the van fleet. In their evaluations, these bodies take into account a variety of factors, including the increasing degree of vehicle electrification and the changes that have been made to legal requirements, for example those related to the introduction of the new certification procedure. The PSB is assigned to the Committee for Model Policy and Product Planning, while the CO2 PSC is assigned to the Van Executive Committee. They report directly to the Board of Management of Mercedes-Benz Group AG. On the basis of these reports, the Board of Management then decides on the requisite measures. In the short term, market-related measures for controlling prices and volumes can also have an impact on the achievement of CO2 targets. For this reason, these measures are also discussed with the Board of Management within the framework of the regular reporting on the current state of .

The primary responsibility for ensuring compliance with climate protection requirements is split between several units and Board of Management members. The development units of the vehicle divisions are responsible at the vehicle level. For cars and vans, these are the “Drive Systems Product Group” development unit, the product groups of the vehicles and Mercedes-Benz Vans Development. The Board of Management of Mercedes Cars & Vans is responsible for the production plants and the company-owned sales and service outlets. Mercedes-Benz Group AG monitors the implementation within the framework of its Group management.

An interdisciplinary team is working on achieving CO2 neutrality

At Mercedes-Benz Cars & Vans, an interdisciplinary team consisting of environmental experts, buyers, developers, logistics specialists, production specialists, strategists and sales experts is working to make our new-car fleet CO2 neutral by 2039. This team monitors the CO2 emissions and manages the measures for reducing them.

The Corporate Environmental Protection unit, for example, calculates the CO2 emissions of all model series and all drive types at Mercedes-Benz Cars & Vans and conducts environmental and life cycle assessments for the vehicles. The Procurement unit at Mercedes-Benz is working together with around 2,000 tier 1 suppliers in order to also make the supply chain CO2 neutral. Our logistics experts are addressing the emissions caused by the delivery of goods, sales operations and shipments to distribution hubs. Their goal is to avoid shipments as much as possible and to optimise routes and transport systems. The teams are also applying additional measures for achieving CO2 neutrality in areas such as production and customer-specific charging concepts.

The majority of the CO2 emissions in the life cycle of a vehicle are generated during the use phase, i.e. while driving. That’s why the teams are supplemented by CO2 strategists who specialise in tank-to-wheel emissions. They analyse how much CO2 our vehicles actually emit out on the road. This information, in turn, provides the basis for reducing CO2 emissions.

Measures

More environmentally friendly product development

Mercedes-Benz systematically tests 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. We also use these target values to assess the progress we make in the course of product development and implement any corrective measures that may be necessary.

An all-electric product range

We want to accelerate the pace at which we are expanding our range of electric vehicles. Our research and development work is correspondingly vast and between 2022 and 2026 we want to invest a total of over €60 billion in the transformation to an emission-free and software-powered future. In this way, we are continuously expanding the portfolio of Mercedes-Benz with further models. Mercedes-Benz also offers a wide variety of transport solutions that do not produce local emissions for the commercial vans sector.

In addition, Mercedes-Benz Mobility’s Green Mapping concept is helping to transform transport into electric mobility. Since late 2020, customers who have leased or financed their Mercedes from Mercedes-Benz Mobility AG have been able to switch from a combustion-engine vehicle to a hybrid or an electric one without any change in their monthly payments. At the end of 2021, Green Mapping was employed in twelve markets.

Alternative drive systems at Mercedes-Benz Cars1

 

 

2020

2021

Worldwide

Hybrid

115,191

178,526

Electric drive

47,672

90,082

Alternative drive systems (total)

162,863

268,608

MBC unit sales (total)

2,202,579

2,093,476

Europe

Hybrid

91,427

135,431

Electric drive

37,013

64,966

Alternative drive systems (total)

128,440

200,397

MBC unit sales (total)

626,655

548,960

1

Retail unit sales Mercedes-Benz Cars (incl. V- and X-Class)

Alternative drive systems at Mercedes-Benz Vans1

 

 

2020

2021

Worldwide

Electric drive

4,519

9,216

MBV unit sales (total)

325,771

334,165

Europe2

Electric drive

3,229

7,074

MBV unit sales (total)

180,754

179,601

1

Retail unit sales Mercedes-Benz Vans (commercial)

2

Vans that are registered as passenger cars + light commercial vehicles (class N1 vehicles)

EQ models: future-oriented and battery-powered

Since 2018 we have been offering battery-powered automobiles under the Mercedes-EQ brand. We are continuously expanding this brand’s portfolio through the addition of more models.

In August 2021, our Cars division launched the first all-electric luxury EQS sedan on the car market. The EQS 450+ (WLTP: combined electrical consumption: 19.8–15.7 kWh/100 km; combined CO2 emissions: 0 g/km) has a range1 () of up to 784 kilometres. The all-electric EQS is the company’s first automobile whose structure is not derived from that of a combustion engine model, but instead based on a modular electric architecture: the wheelbase, the track and many other system components (especially the batteries) are variable due to the modular system. This enables them to be used on any scale and for any model. As a result, the vehicle concept is designed to fulfil all of the requirements for a family of battery-powered luxury and upper-range models. The EQE business sedan and the EQS and EQE SUV variants are to be followed by additional models equipped with the modular electric architecture.

Our EQA offers all-electric driving for the compact class. Smart assistants support the driver in many areas, including accident avoidance, an anticipatory, efficient operation and navigation with .

As a seven-seater2, the new EQB offers room for a variety of family constellations and many different transport requirements. Moreover, it combines design elements that are typical of the Mercedes-EQ with a distinctive angular appearance. In Europe, the EQB 350 4MATIC (WLTP: combined electrical consumption: 19.2–18.1 kWh/100 km; combined CO2 emissions: 0 g/km) has a WLTP-range1 of up to 419 km.

The EQV is the first MPV from Mercedes-EQ with a purely battery electric drive system that enables it to drive locally emission-free. The EQV 300 (NEDC: combined electrical consumption: 27.1–26.3 kWh/100 km; combined CO2 emissions: 0 g/km)3 has a WLTP-range4 of up to 363 kilometres. In addition, the EQV is integrated into a digital environment that combines intelligent navigation with active range management and cloud-based services and apps. In 2022, it is to be followed by an all-electric small van with up to seven seats for families and people who enjoy leisure activities.

Plug-in hybrids for reliable ranges

are an important transitional technology on the road to CO2 neutral all-electric mobility. Mercedes-Benz offers an efficient drive system package for this purpose. At the end of 2021, customers could choose between more than 20 model variants. This combination of an electric drive system and a combustion engine enables locally emission-free driving. The drive system, which consists of an electric motor and a high-voltage battery, ensures that the vehicle has a purely electrical range sufficient for most daily trips. Ranges of over 70 kilometres () are possible in the compact segment and, in some cases, of over 100 kilometres (WLTP-TML) in the luxury segment. Mercedes-Benz wants to gradually roll out this technology across its entire vehicle range — from the A-Class to the S-Class and from the GLA to the GLE.

Mercedes-Benz Vans

Mercedes-Benz Vans wants to continue to play the leading role in electric mobility and has firmly anchored this goal in its strategy by means of the “lead in electric drive” claim. As a result, all of the model series are being systematically electrified. Today, body manufacturers and customers can already choose from three battery-powered vans: the eVito panel van, the eSprinter and the eVito Tourer. The new Citan is also due to become available with a battery-electric drive system in 2022, thus expanding the electric product portfolio of the commercially oriented small van segment.

The next-generation eSprinter

Mercedes-Benz Vans is also systematically implementing its strategy with the next-generation eSprinter. The attributes of this model series were defined in close cooperation with customers. Three battery and many body variants — from panel vans to a chassis for box bodies — will enable it to penetrate into new customer segments and markets, including the United States and Canada. Depending on the configuration, the range will be more than twice that of the current eSprinter. Production is scheduled to ramp up in stages in Charleston, South Carolina (United States), Düsseldorf and Ludwigsfelde, beginning in the second half of 2023. Mercedes-Benz AG is investing around €350 million in the next-generation eSprinter, whose production is scheduled to be CO2 neutral.

Sustainability and climate protection in urban short-range distribution

Our technology vehicle SUSTAINEER demonstrates how environmentally compatible a van can be. Based on a Mercedes-Benz eSprinter, SUSTAINEER combines many innovations that improve the quality of life in cities, preserve the climate and the environment and enhance the safety and health of drivers and other road users. Among other things, the all-electric van has a roof-mounted solar panel that generates green electricity for the vehicle. Under good conditions, this can enable the vehicle to travel 2,500 kilometres per year in Baden-Württemberg, for example.

eVans: all-electric vehicle architecture

Mercedes-Benz Cars & Vans aims to offer all new vehicle architectures as exclusively electric systems, beginning in 2025. As a result, Mercedes-Benz Vans is also developing a new all-electric vehicle architecture called VAN.EA.

Services

The majority of the CO2 emissions of automobiles are generated while driving. That’s why Mercedes-Benz wants to help the users of its vehicles to drive in a climate-friendly manner and encourage them to purchase locally emission-free vehicles. We offer our customers a variety of services for this purpose.

App helps buyers reach a decision

Is an electric vehicle or a plug-in hybrid right for my daily life? By analysing an individual’s driving behaviour, the EQ Ready app supports drivers who are wondering whether it would make sense for them to switch to an electric vehicle. For this purpose, Mercedes-Benz “gamifies” the process: users take part in a seven-day challenge, during which they playfully obtain a lot of useful information about electric mobility. In addition to data about their potential energy requirements, users can simulate the duration of different charging solutions in real time and view the various regional charging infrastructures. The app has been available in around 30 countries worldwide since 2020. To date, it has evaluated almost two million trips for its users. Every week, our users analyse 24,000 “green” trips.

The eVan Ready app was developed specifically for commercial users. In addition to the same basic functions of the EQ Ready app, eVan Ready offers many additional features for such users. Among other things, users can check whether they could also use one of our electric vans to drive their routes. The eCost Calculator enables users to find out whether an electric Mercedes-Benz van would be a good option for them from a financial standpoint. Together with the users, we also analyse the charging infrastructure at their respective locations. We also show them what measures are necessary for the efficient operation of individual vehicles as well as large or small fleets.

App collects data about individual fuel consumption

In Europe, Mercedes-Benz AG offers transparent information and ways of comparing the fuel consumption of its vehicles. Since 2020, customers have been able to use the free Mercedes me app to voluntarily determine and anonymously share and compare their fuel consumption data with the drivers of similar vehicles. The app is available for almost all model series. The information can also be viewed at our website. A new feature that was introduced during the reporting year enables visitors of the website to select a vehicle of their choice and view the fuel consumption curves of all of the drivers.

The initial data show that individual fuel consumption figures can be lower or higher than the . Deviations from the may be due to many different factors such as road conditions, loads, weather conditions or, in particular, individual driving styles. In the future we plan to offer individual tips for saving fuel depending on driving style.

Saving energy with Eco Coach

Since the end of 2020, Mercedes-Benz has been offering an app with individual energy savings tips to its customers driving plug-in hybrids and electric vehicles. Called the Mercedes me Eco Coach, this app analyses the user’s driving and charging behaviour and provides personalised tips on how the driver can reduce his or her CO2 footprint and extend the life of the vehicle’s battery.

We especially use gamified measures to motivate drivers of plug-in hybrids to charge their vehicles more often and thereby reduce their actual fuel consumption and CO2 footprint. People who use the app get reward points that they can redeem in selected European markets for the offsetting of CO2 or convert into Mercedes me Charge vouchers.

Charging infrastructure

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From today’s perspective, the future of private mobility is electric. To make this possible, the charging infrastructure has to make rapid progress. That’s why Mercedes-Benz is continuously working to make the charging of electricity more convenient, faster and more accessible — at home, at the workplace and in public spaces.

Fast and easy charging

The charging of electric vehicles should be as quick and convenient as possible. To enable this, Mercedes-Benz employs globally standardised processes and a large network of partners, Mercedes me Charge. It is one of the world’s largest charging networks and is continuously expanding. As of January, over 685,000 alternating and direct current charging points worldwide had been integrated. Of these, more than 275,000 are in Europe and over 65,000 in the United States and Canada. In Europe alone, more than 850 different operators of public charging stations have charging points that the customers of Mercedes me Charge can access.

The Mercedes me App and the on-board navigation system show drivers the exact position, current availability and prices at appropriate charging stations. On this basis, our navigation system calculates the optimal route, including stops for charging. At the charging station, the driver is authenticated via the display in the MBUX multimedia system, the Mercedes me app or the Mercedes me Charge charging card. The customer only has to enter his or her payment method once. Thereafter, each charging process is automatically deducted from the user’s bank account, even when it takes place abroad. Each individual charging is collected into a clearly structured invoice every month.

With the launch of the EQS, we introduced a new function, Mercedes me Charge Plug & Charge, which makes handling even easier, because charging, including the payment function, begins as soon as the cable is inserted — an additional authentication step is not necessary. Communication between the vehicle and the charging station takes place directly via the charging cable.

More sustainable charging

In March 2021, Mercedes-Benz launched Green Charging in Europe. Mercedes me Charge enables our customers with EQ models and plug-in hybrids to charge sustainable energy at public charging stations. Green Charging offsets the electricity used during charging by subsequently feeding energy from renewable sources into the grid. Green Charging was launched on the United States and Canadian markets in August 2021.

In the life cycle of an electric vehicle, power from renewable energy sources is a significant factor in the effort to avoid CO2 emissions. Based on the current EU electricity mix, around 50 per cent of a battery electric vehicle’s CO2 footprint is generated during the use phase and is therefore due to its being charged with electricity whose generation has resulted in the emission of CO2. People are often unaware of whether a public charging station offers green electricity or electricity from non-renewable sources. The supply of the charging current is the responsibility of the charging point’s operator. Green Charging is an integral part of Mercedes me Charge in order to counteract this lack of transparency and promote the use of electricity from renewable sources.

Green Charging ensures that the corresponding amount of green electricity is fed into the grid after the charging process is finished. For this purpose, it uses proofs of origin that verifiably certify the energy’s origins and serve as a kind of birth certificate for electricity from renewable sources. Green electricity is defined by the EKOenergy environmental label and supplied by certified energy generation systems. In addition, incentives are provided for investing in renewable energy production facilities.

Moreover, it makes customers aware of how their charging behaviour affects their personal CO2 footprint. Green Charging-compatible charging points are displayed by the vehicle’s head unit and the Mercedes me App. The Mercedes me App provides precise figures of the CO2 reduction achieved during the charging processes. As a result of Green Charging, Mercedes-Benz is the first automaker to offer its customers a proprietary service for the reduction of CO2 emissions during the use phase.

Expansion of the IONITY fast-charging network

Within the scope of the IONITY joint venture, Mercedes-Benz AG is working to create a high-performance fast-charging network for electric vehicles in Europe. IONITY aims to safeguard private electric mobility by means of a standardised charging network along the most important pan-European motorways with the intention of speeding up the adoption of electric mobility within the market.

Over 400 IONITY fast-charging stations were in operation at the end of 2021. Each charging station has several charging points, all of which are operated with 100 per cent green electricity. The high charging power of up to 350 kW per charging point enables correspondingly designed vehicles to charge their batteries quickly. All of the IONITY charging points are integrated into the Mercedes me Charge system and can be conveniently used by means of Plug & Charge.

In November 2021, the company revealed its IONITY 2.0 growth strategy for the accelerated expansion of its fast-charging network. The strategy aims to increase the number of locations to over 1,000 by 2025. In the future, they will also be located along federal roads and near urban centres. Some locations will also have innovative flagship concepts for making travel more convenient and improving the charging experience. Provided the authorities approve the transaction, the existing shareholders and the new shareholder BlackRock will together invest €700 million for the achievement of IONITY 2.0.

Charging network: cooperation with Shell

Since July 2021, Mercedes-Benz AG has also been cooperating with the petroleum and natural-gas company Shell to expand its charging network. The aim is to provide the drivers of our electric automobiles with better access to Shell’s Recharge network, which is planned to encompass over 30,000 charging points in Europe, China and North America by 2025, including more than 10,000 fast-charging stations.

Flexible charging system for EQ vehicles and plug-in hybrids

Since August 2021 Mercedes-Benz has been offering a flexible charging system that includes various adapters for household power sockets, industrial sockets and public charging stations and wallboxes. The adapters can be connected to the charging system by means of plug and play. It also incorporates a Type 2 connector that is permanently connected to the system. The vehicle can thus be charged at up to 22 kW at almost any alternating-current source. The system is compatible with all of the electric vehicle and plug-in hybrid models of Mercedes-Benz AG.

Scope 1-, Scope 2- and selected Scope 3-CO2 emissions in tons per vehicle, Mercedes-Benz Cars (2021)1

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Scope 1-, 2- and selected Scope 3-CO2 emissions in tons per vehicle Mercedes-Benz Cars 2021 (Graphic)

1 For calculation basis see appendix Calculation and documentation of CO2 emissions and chapter Making life cycle assessments, Calculation of CO2 emissions

2 See Life cycle assessments of our vehicles and internal life cycle assessment studies

3 See key figures environment

4 Driving emissions of Mercedes-Benz Cars fleet (EU, China, USA and RoW) standardised, mileage: 200,000 km, for data basis see chapter Development of CO2 emissions

5 Forecast value

6 Incl. Green Charging: Contribution per vehicle -0.03 t CO2

Scope 1-, Scope 2- and selected Scope 3-CO2 emissions in tons per vehicle, Mercedes-Benz Vans (2021)1

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Scope 1-, 2- and selected Scope 3-CO2 emissions in tons per vehicle Mercedes-Benz Vans 2021 (Graphic)

1 For calculation basis see appendix Calculation and documentation of CO2 emissions and chapter Making life cycle assessments, Calculation of CO2 emissions

2 Internal life cycle assessment studies

3 See key figures environment

4 Driving emissions of Mercedes-Benz Cars fleet (EU, China, USA and RoW) standardised, mileage: 200,000 km, for data basis see chapter Development of CO2 emissions

5 Forecast value

Expansion of the charging infrastructure at Mercedes-Benz locations

Mercedes-Benz AG is continually expanding the charging infrastructure at its own locations. We have put more than 4,000 charging points into operation since 2013. In 2022 we will continue to forge ahead with the expansion of charging stations at employee parking lots with about 900 charging points. This provides the employees with a broad range of charging options.

In the charge@work project, we have been consolidating our efforts to establish an intelligent charging infrastructure at all Group properties in Germany since 2013. We provide this infrastructure not only to parking spaces, car parks and customer centres but also to our in-house development test rigs and proving grounds. Our charging stations are supplied with 100 per cent certified green electricity.

Scope 1, 2, 3 emissions worldwide for Mercedes-Benz Cars1,5

 

 

2020

 

2021

Scope 3

Specific
CO2 in t/car

Absolute
CO2 in t/million t4

Specific
CO2 in t/car

Absolute
CO2 in t/million t4

Procured goods and services6

8.1

17.0

8.4

17.0

Logistics

1.02

2.12

1.12

2.22

Business travel

0.006

0.012

0.009

0.019

Employee traffic

0.060

0.125

0.053

0.107

Use phase of our products (well-to-tank)

5.6

11.8

6.33

12.73

Use phase of our products (tank-to-wheel)

33.7

70.4

32.2

65.5

Recycling and waste disposal6

0.4

0.8

0.4

0.8

Scope 1 and 2

 

 

 

 

Manufacture

0.8

0.94

0.7

0.74

Total

49.7

103.2

49.1

99.2

1

Values are rounded

2

Forecast value

3

Incl. Green Charging: Contribution per vehicle -0.03 t CO2

4

Absolute Scope 3 emissions relate to retail sales (2020: 2,087,200; 2021: 2,032,663; unaudited). Absolute Scope 1 and 2 emissions relate to vehicles produced from fully consolidated locations, excluding third-party products (2020: 1,230,733; 2021: 1,132,213; unaudited)

5

For calculation basis see appendix Calculation and documentation of CO2 emissions and chapter Making life cycle assessments, Calculation of CO2 emissions

6

See Life cycle assessments of our vehicles and internal life cycle assessment studies

Scope 1, 2, 3 emissions worldwide for Mercedes-Benz Vans1,4

 

 

2021

Scope 3

Specific
CO2 in t/van

Absolute
CO2 in t/million t3

Procured goods and services5

8.6

3.4

Logistics

0.92

0.42

Business travel

0.007

0.003

Employee traffic

0.039

0.015

Use phase of our products (well-to-tank)

4.9

1.9

Use phase of our products (tank-to-wheel)

47.8

18.9

Recycling and waste disposal5

0.5

0.2

Scope 1 and 2

 

 

Manufacture

0.5

0.23

Total

63.3

25.0

1

Values are rounded

2

Forecast value

3

Absolute Scope 3 emissions relate to retail sales (2021: 394,978; unaudited). Absolute Scope 1 and 2 emissions relate to vehicles produced from fully consolidated locations, excluding third-party products (2021: 336.847; unaudited)

4

For calculation basis see appendix Calculation and documentation of CO2 emissions and chapter Making life cycle assessments, Calculation of CO2 emissions

5

Internal life cycle assessment studies

Life cycle assessment of the EQS 450+1

Life cycle assessment of the EQS (Graphic)

1 WLTP: EQS 450+ combined electrical consumption 19.8-15.7 kWh/100 km, CO2 emissions 0 g/km; Electricity consumption was determined on the basis of Regulation 2017/1151/EC.

2 Renewably generated energy for cell production and charging current

Board of Management remuneration on the basis of key CO2 figures

In addition to other criteria from areas such as environmental protection, social commitment and corporate governance, the Mercedes-Benz Group has, since 2020, been including the achievement of CO2 fleet targets as a factor for determining the annual bonus for the Board of Management and executives. During the reporting year, we continued to differentiate this incentive system and intensified it. We think it helps motivate people to achieve the specified sustainability targets.

Effectiveness and results

The effectiveness of our management approach

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The Mercedes-Benz Group’s management approach to climate protection is based on the Ambition 2039 targets. They are an expression of our commitment to the Paris Agreement on climate change. We have also defined the measures that we plan to use to attain these goals. We use internal and external performance reviews to evaluate their effectiveness. To this end, we conduct internal reviews at the level of the specialist units several times a year. Externally, we commission an auditing company to audit selected goals and measures. In addition, Mercedes-Benz Cars & Vans has defined a concrete CO2 reduction pathway in line with the standards of the Science Based Targets initiative (SBTi). The SBTi has confirmed that this pathway conforms to the Paris Agreement on climate change.

Furthermore, we conduct dialogues regarding climate protection and we use the knowledge gained in this way to review our management approach and adjust it as needed. For example, we hold in-depth discussions with environmental institutes and NGOs during our annual Sustainability Dialogue. We also conduct talks on the subject of climate protection with our Board of Management throughout the year. In addition, the feedback we continually receive from the government, the public and our other stakeholders lets us know how the sustainability goals we have set for ourselves are being perceived and evaluated

Results

Calculation of CO2 emissions

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Most of our CO2 emissions are generated during the use phase of a vehicle. But greenhouse gas emissions are also generated in other segments of a vehicle’s life cycle, and we take that into account in our overall CO2 balance. We record the key figures we need for life cycle assessments and publish them in line with the 2004 Corporate Accounting and Reporting Standard of the Greenhouse Gas Protocol Initiative.

We have used these principles to calculate the emissions of the entire life cycle of the Mercedes-Benz Cars fleet worldwide. For 2021 we calculated an average CO2 value of 49.1 tons per vehicle. We have used these principles to calculate the emissions of the entire life cycle of the Mercedes-Benz Vans fleet worldwide. For 2021 we calculated an average CO2 value of 63.3 tons per vehicle. 52.7 tons of this is due to the use phase, which in the case of vans is dominated by commercial goods transport with vehicles in the 3.5 ton/5 ton segment.

Development of CO2 emissions

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Europe

Mercedes-Benz has defined the CO2 emissions of its fleet of new cars in Europe as a significant non-financial performance indicator. The Outlook shows how we expect the CO2 emissions of our car fleet in Europe to develop.

In the reporting year, the average CO2 emissions of our total passenger car fleet in Europe (European Union, Norway and Iceland) as measured on the basis of legal regulations decreased to an estimated 115 g/km (WLTP, including vans that are registered as passenger cars). This means that we achieved the CO2 targets in Europe (European Union, Norway and Iceland) in 2021. Since 2021, in line with the regulatory requirements, this value has been based on the WLTP certification process and is thus not comparable with the prior year’s value.

We expect that our fleet’s average CO2 emissions in Europe (European Union, Norway and Iceland) in 2022 will once again be lower than the figure that was recorded in 2021. This development has been especially favoured by the fact that all-electric and plug-in hybrid vehicles continue to increase their share of our total car sales.

Development of average CO2 emissions of the Mercedes-Benz passenger car fleet in Europe

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Development of average CO? emissions of the Mercedes-Benz passenger car fleet in Europe (Graphic)

1 Including vans registered as M1 vehicles — all other years without vans.

2 Projection

In the reporting year, the average CO2 emissions of our light commercial vehicles ( ) in Europe (European Union, Norway and Iceland) as measured on the basis of the legal regulations amounted to 221 g/km (WLTP). As a result, we expect to be below the CO2 target. In 2022 we expect the continued expansion of our battery-electric product portfolio (launch of the eCitan) to reduce CO2 emissions further.

Development of average CO2 emissions of the Mercedes-Benz van fleet in Europe

Development of average CO? emissions of the Mercedes-Benz van fleet in Europe (Graphic)

1 Preliminary EU data

2 Projection

United States

In the United States, two separate fleet values are in use for limiting greenhouse gases and fuel consumption in vehicle fleets: the and the . For the 2021 model year, the GHG fleet value was 251 g CO2/mi for the passenger car fleet and 296 g CO2/mi for the fleet of vans and SUVs registered as light trucks (on the basis of the most recent forecast). Thus we were not able to achieve our average fleet targets of 194 g CO2/mi for the car fleet and 259 g CO2/mi for the fleet of vans and SUVs registered as light trucks. However, we were able to close the remaining gap by purchasing external credits.

Mercedes-Benz GHG values for cars and light commercial vehicles in the United States

Mercedes-Benz GHG values for cars and light commercial vehicles in the United States (Graphic)

1 Projection

The models of the Mercedes-Benz Sprinter are subject to the GHG regulation for Classes 2b/3. The CO2 targets in these classes depend on the payload, the towing capacity and the drive type of the vehicles. In the reporting year, the CO2 emissions of our vehicles were 472 g CO2/mi, which is lower than the target value of 495 g CO2/mi. We expect our figures to also be lower than the CO2 target values in the years ahead.

China

In China, domestic and imported cars are reported separately and according to fleet consumption values, unlike in Europe and the United States. This means the figures for the imported fleet are relevant for our wholly owned subsidiary Mercedes-Benz China (MBCL). The fuel consumption target was 7.16 l/100 km, and the achieved value was 8.24 l/100 km (preliminary figure for the fleet’s fuel consumption; if the off-cycle technologies are also included, the final fuel consumption figure may be better). Since 2021, in line with the regulatory requirements, this value has been based on the WLTP certification process and is thus not comparable with the prior year’s value. External credits will be purchased at short notice in order to close consumption gaps in the fleet’s achievement of the target. We aim to achieve our emission targets in China in the medium term together with our joint venture partner Beijing Benz Automotive (BBAC) by expanding our range of all-electric vehicles and plug-in hybrids.

Fuel consumption of the Mercedes-Benz car fleet in China

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Fuel consumption of the Daimler car fleet in China (Graphic)

1 Preliminary value without off-cycle technologies

The V-Class and Vito models, which are produced by the joint venture Fujian Benz Automotive Co., Ltd. (FBAC), form another domestic fleet. The value achieved was 9.27 l/100 km (without off-cycle technology); the target value was 8.09 l/100 km. At the moment, the fleet balance can only be offset by means of a credit transfer. This situation is not likely to change until 2026, because the fleet consists of only a single vehicle type.

Legal limits on the fuel consumption and/or CO2 emissions of car fleets and light truck fleets exist today in many other markets as well, although the target values differ from market to market. The relevant countries here include major sales markets for our products — for example Switzerland, Canada, Japan, South Korea, Brazil, India and Saudi Arabia. We also take these target values into account as we further develop our product range.

1 Electricity consumption and range were determined on the basis of Regulation (EU) 2017/1151.

2 The two seats in the third row can be used by people up to 1.65 metres tall.

3 Electricity consumption was determined on the basis of Regulation (EC) No. 692/2008.

4 The range was determined on the basis of Regulation (EU) 2017/1151.

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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

Green bonds

Green bonds are securities with a fixed interest rate. They are used to raise capital for sustainable projects such as those promoting renewable sources of energy and sustainable mobility solutions.

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Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol (or GHG Protocol for short) is currently the most commonly used series of accounting standards for greenhouse gas emissions.

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Well-to-tank

A well-to-tank assessment considers everything from the generation of the primary energy (oil, natural gas, electricity etc.) to its provision for use in the vehicle.

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Tank-to-wheel

Unlike the more comprehensive well-to-wheel assessment, tank-to-wheel assessments take into account the chain of cause and effect from the time energy (e.g. petrol or electricity) is put into a vehicle until it is converted into kinetic energy during driving.

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WLTP

The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) is an international measurement technique for determining how much fuel a vehicle consumes and whether its emissions stay within the prescribed limits. The WLTP replaced the former measurement procedure NEDC on 1 September 2017.

The WLTP cycle is a new driving cycle for measuring emissions that more accurately depicts current driving profiles. It is used to determine certification values for each vehicle on the basis of mass, air resistance, rolling resistance and optional equipment. The assessment includes a test under real-life driving conditions (RDE).

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CO2 fleet compliance

In addition to limits that individual vehicle models may not exceed for their type approval (e.g. regarding pollutant emissions), the EU also sets CO2 fleet compliance requirements in terms of a limit value based on the average weight of a manufacturer’s fleet. The manufacturer’s fleet of new vehicles may not exceed this limit.

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WLTP

The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) is an international measurement technique for determining how much fuel a vehicle consumes and whether its emissions stay within the prescribed limits. The WLTP replaced the former measurement procedure NEDC on 1 September 2017.

The WLTP cycle is a new driving cycle for measuring emissions that more accurately depicts current driving profiles. It is used to determine certification values for each vehicle on the basis of mass, air resistance, rolling resistance and optional equipment. The assessment includes a test under real-life driving conditions (RDE).

All glossary terms

Electric intelligence

A navigation system that employs electric intelligence uses a large number of factors to plan the fastest and most convenient route, including the charging stops, and responds dynamically to situations such as traffic jams or changes in driving behaviour.

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Plug-in hybrid (PHEV)

A plug-in hybrid electric vehicle (PHEV) has a hybrid drive system whose battery can be charged either by a combustion engine or by the power grid.

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WLTP-TML/ WLTP-TMH

The suffixes “TML” and “TMH” refer to the range of possible assessments that a vehicle can undergo in the WLTP measurement process. The values for aerodynamics, rolling resistance and vehicle mass change depending on the optional equipment used. These circumstances are taken into account in the WLTP cycle. TML (test mass low) stands for the most favourable and TMH (test mass high) for the least favourable case.

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WLTP

The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) is an international measurement technique for determining how much fuel a vehicle consumes and whether its emissions stay within the prescribed limits. The WLTP replaced the former measurement procedure NEDC on 1 September 2017.

The WLTP cycle is a new driving cycle for measuring emissions that more accurately depicts current driving profiles. It is used to determine certification values for each vehicle on the basis of mass, air resistance, rolling resistance and optional equipment. The assessment includes a test under real-life driving conditions (RDE).

All glossary terms

WLTP

The Worldwide Harmonised Light Vehicles Test Procedure (WLTP) is an international measurement technique for determining how much fuel a vehicle consumes and whether its emissions stay within the prescribed limits. The WLTP replaced the former measurement procedure NEDC on 1 September 2017.

The WLTP cycle is a new driving cycle for measuring emissions that more accurately depicts current driving profiles. It is used to determine certification values for each vehicle on the basis of mass, air resistance, rolling resistance and optional equipment. The assessment includes a test under real-life driving conditions (RDE).

All glossary terms

Vehicle class N1

Class N1 vehicles are motor vehicles with a gross vehicle weight of up to 3.5 tons and at least four wheels. They are used to transport goods or for another special purpose. Class N1 also includes motor vehicles for passenger transport if they contain no more than eight passenger seats.

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Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol (or GHG Protocol for short) is currently the most commonly used series of accounting standards for greenhouse gas emissions.

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Corporate Average Fuel Economy (CAFE) standards

Corporate Average Fuel Economy (CAFE) refers to a legally stipulated minimum for the average fuel economy of a vehicle fleet in the United States. Automakers have to achieve the CAFE standards for their fleets of cars and light trucks in order to be able to sell vehicles in the United States. The limits are recalculated each year.

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