Mercedes-Benz Aims to Lower Emissions By 80% - Diversified Communications

Commercial, Energy Efficiency, GHG Emissions, Sourcing Renewables  -  March 30, 2023

Mercedes-Benz Aims to Lower Emissions By 80%

Mercedes-Benz is aiming for an 80% cut in CO2 emissions from its own production by 2030, using new green energy assets including solar and onshore and offshore wind power.

The auto manufacturer already achieved its 2030 target of a 50% CO2 emissions reduction – as approved by the Science Based Target Initiative (SBTi) in 2022. The company intends to increase renewable energy from its current 45% of the overall energy used to 70% at its production sites, in part through increased on-site generation capacity. 

These announcements were part of Mercedes-Benz' ESG Conference 2023 for investors and analysts. 

Expanding the energy portfolio to include wind power from onshore and offshore wind farms is another focus of the company’s energy strategy. The new solar systems and wind farms will help Mercedes-Benz to secure around 50% of its future total electricity requirements in Germany. 

In the offshore sector, Mercedes-Benz concluded a Power Purchase Agreement (PPA) with Iberdrola for the supply of electricity from the Windanker wind farm in the Baltic Sea. This contract alone allows Mercedes-Benz to secure more than 140 MW of renewable electricity from 2027 onwards, covering around 30% of the company’s electricity needs in Germany.

Mercedes-Benz will build a wind farm with a double-digit number of wind turbines at its test site in Papenburg, Germany by the middle of the decade. The ambition for all Mercedes-Benz production plants worldwide is to run 100% on renewable energy with zero CO2 emissions by 2039.

“At Mercedes-Benz, we want to build the world’s most desirable cars,” said Ola Källenius, Chief Executive Officer, Mercedes-Benz Group AG in a statement. “And since there can be no luxury without sustainability, we have flipped the switch towards ESG – especially with our ramp-up of e-mobility. ESG enables long-term value creation. This includes mitigating risks and seizing opportunities in sustainable business. We intend to double down on both.”

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