Mercedes-Benz Group has outlined a more detailed sustainability strategy, aiming to cut production emissions by 90% and vehicle-use emissions by 80% by 2039 against a 2019 baseline. The company also targets a 70% reduction across its value chain and plans to reach net zero by 2049. To support these goals, Mercedes is joining the Aluminium Sector of the First Movers Coalition and has signed a long-term offtake agreement with Hydro for primary aluminum with a carbon footprint of 3.5 kg CO2e per kg by 2028, dropping to 3.0 kg from 2030. The deal also includes Hydro CIRCAL with at least 75% post-consumer recycled content, which Mercedes will use from 2027. In addition, Mercedes is piloting hydrogen-based direct reduced iron with Anglo American's Kumba Iron Ore and HyIron for an EQS demonstrator component. The company reported cumulative energy savings of 570 GWh across its production network over the past two years, with renewable energy covering 51% of energy consumption at car sites and 39% at van sites. While the targets are ambitious, the vehicle-use emission cut is subject to market conditions, and the aluminum procurement target of 10% under coalition criteria by 2030 is a starting point. Investors will watch whether these measures can reduce emissions without raising vehicle costs.
