- Further progress and investment in energy efficiency, circularity and renewables keeps company on target for up to 50 percent reduction in value-chain CO₂ emissions within the next decade.
- Own production carbon emissions: 75 percent reduction in 2024 with 50 percent of energy needs at own plants met by renewable sources.
- All-new CLA: energy consumption for production at Rastatt has been reduced by 15 percent compared to preceding model.
- Raw material supply-chains: 65 percent of critical raw materials with high human rights and environmental risks already assessed.
- Strengthening competitiveness in a responsible way: extensive set of measures to reduce personnel costs while extending job guarantee in Germany until December 31, 2034.
At its Sustainability Update 2025, Mercedes-Benz reports on substantial progress made in the six sustainability focus areas, further embedding sustainability aspects into its daily business practises. Against a backdrop of regional differences in the pace of transformation, the inventor of the automobile reiterates its commitment to future electric mobility.
Ongoing engagement with stakeholders and experts clearly indicates that the risks relating to various sustainability aspects remain unchanged. The company therefore continues to pursue a holistic approach to achieving its goals. This is also demonstrated by sustained improvements in various relevant sustainability-related ratings. Furthermore, the recent world premiere of the all-new electric CLA marks the start of a new era, putting the company’s ambition for electrifying its product portfolio on the road in customer hands.
“With the all-new CLA, we’re making a great leap forward in realising our Ambition 2039. It’s the most efficient Mercedes‑Benz ever built and sets new standards in terms of charging speed. At the same time, it demonstrates our progress in decarbonising our value chain and closing the loop. As we embark on the biggest product launch program in the history of Mercedes‑Benz, pioneering technology remains key to achieving our sustainability targets.”
Ola Källenius, Chairman of the Board of Management of Mercedes‑Benz Group AG
“In a time of growing global uncertainties, we continue to take proactive measures to ensure a real difference within our six sustainability focus areas aiming to anchor sustainability firmly in our operational business. We want and need to be ahead – for example by proactively identifying and addressing potential issues in our value chain. The goal is to avoid potential risks at an early stage ensuring the future success of Mercedes‑Benz.”
Renata Jungo Brüngger, Member of the Board of Management of Mercedes‑Benz Group AG, Integrity, Governance & Sustainability
“We continue to make strong progress on our “road to zero” by executing our sustainability plans. Increasing energy efficiency and expanding the share of renewable energy we use in production make sense not just from an ecological standpoint, but also from a business perspective. During 2024, we achieved savings of more than 300 GWh for the second year running and we are well on track to reduce the energy, water and waste part in production costs by a further 25 percent by 2030.”
Jörg Burzer, Member of the Board of Management of Mercedes‑Benz Group AG, Production, Quality & Supply Chain Management
“Our goal is to remain a reliable employer well into the future. We have introduced an extensive set of measures aimed at managing personnel costs and enhancing flexibility to strengthen competitiveness without compromising social responsibility together with the General Works Council, on this foundation, we have extended the job guarantee for our workforce at German sites until 2035. This decision reflects our strong confidence in both our team and our products.”
Sabine Kohleisen, Member of the Board of Management of Mercedes‑Benz Group AG, Human Relations & Labour Director
Progress in decarbonisation, resource use & circularity: Focus on sustainable production
Mercedes-Benz continues to invest in renewable energy usage and generation as a way to continue decarbonising production. Already, 50 percent of the energy needs at Mercedes-Benz production plants are met from renewable sources. In addition to other measures, carbon emissions have decreased by 75 percent in 2024[3]. The target for 2030 is 80 percent. The Rastatt plant in Germany, where the all-new CLA is produced, is supplied by 100 percent green electricity – from onsite solar systems and external green electricity supply. The plant is also extremely energy efficient.
Energy consumption for CLA production there has been reduced by 15 percent compared to the preceding model. Decarbonisation of Mercedes‑Benz logistics remains on track with the aim to reduce CO₂ emissions by 60 percent by 2039 compared to 2021 and to avoid fossil fuel in inbound and outbound logistics. The company reduced emissions down to 1,0 ton/vehicle in 2024. Overall, the company aims to achieve an up to 50 percent reduction in CO₂ emissions across the entire value chain within the next decade. 2024 also saw a substantial 38 percent reduction in overall waste for disposal compared to 2023 due in part to enhanced recycling rates. In fact, at the Mercedes‑Benz plants in Europe the company has cut waste for disposal to 250 g per vehicle.
Supply chains: Ahead of target in raw-material assessments – strengthening our resilience systematically
Respecting human rights is embedded in the Mercedes-Benz sustainable business strategy. The company is committed to fully analysing high human rights and environmental risks in the supply chain of 24 critical raw materials and deriving appropriate measures for each by 2028. Further significant progress in 2024 means this task is now 65 percent complete – an overachievement of the set assessment target.
A reliable and attractive employer
In 2025, the HR Strategy “The Sustainable People Plan” centres on the strategic pillar “Re-Shape”. This pillar focuses on streamlining the organization based on new products, technologies and fields of competence while ensuring a socially responsible transformation. In March, the company and the General Works Council have jointly agreed on an extensive set of measures related to personnel costs and flexibility in Germany to strengthen competitiveness. On that basis the job guarantee is extended until the end of 2034.
Part of the measures is a severance programme for employees in indirect areas in Germany. The program will be conducted fairly and aligned with socially responsible principles, ensuring there are no redundancies for operational reasons. At the same time, Mercedes-Benz continues to invest in the future-readiness and qualification of employees through initiatives like Turn2Learn, which promote employee qualifications and enable them to develop in a future-oriented manner. Additionally, the company further invests in a modern and motivating working environment where employees can thrive optimally. Mercedes‑Benz remains committed to creating a safe, welcoming, and inclusive work environment for all employees.
Sustainable business strategy: Six focus areas
For Mercedes-Benz, sustainability is a high priority. The Group acts on the basis of the sustainable business strategy. In doing so, Mercedes-Benz takes into account, among other things, relevant regulatory requirements, the expectations of external and internal stakeholders and global trends – along the entire value chain of our business activities. To drive the company’s sustainable transformation, it concentrates on six strategic focus areas: Decarbonisation, Resource Use & Circularity, Human Rights, Traffic Safety, Digital Trust and People.
With these six focus areas, Mercedes-Benz concretises its sustainable business strategy in these areas and further embeds sustainability aspects into daily business practices: from reducing CO₂ emissions and increasing the proportion of recycled materials in vehicles to greater road safety, respect for human rights, trust in digitalisation to the socially responsible transformation of the company.
