Mercedes-Benz Updates Climate Strategy, Details 2039 CO2 Targets

Mercedes-Benz has updated its sustainability strategy, outlining more detailed emissions reduction targets and new measures to decarbonise its aluminium and steel supply chains. Announced on 10 November 2026, the company aims to reduce CO2 emissions from its own production by 90%, vehicle use-phase emissions by 80% (subject to market conditions), and overall value-chain emissions by 70% by 2039, compared with 2019. The carmaker also plans to achieve net-zero emissions by 2049 at the latest.

From 2027, Mercedes-Benz will concentrate its sustainability strategy on four priorities: Decarbonisation, Circularity, Safety and People. The company aims to increase the share of secondary raw materials to 40% within the next decade while strengthening responsible sourcing and human rights protections. Its decarbonisation programme includes vehicle electrification, renewable energy procurement and lower-carbon manufacturing materials.

 

Read more: Iberdrola Plans to Double Spanish Grid Investment to €6 Billion

 

Mercedes-Benz has also joined the First Movers Coalition's Aluminium Sector, committing to source at least 10% of its annual primary aluminium requirements in accordance with the coalition's criteria by 2030. The company signed a binding long-term supply agreement with Hydro covering at least 10% of its primary aluminium demand. Under the agreement, the carbon footprint of supplied aluminium is expected to decline from approximately 4.0 kg CO2e per kg to 3.5 kg by 2028 and 3.0 kg from 2030. Mercedes-Benz also plans to introduce Hydro CIRCAL aluminium, containing at least 75% post-consumer recycled material, into production from 2027.

Jörg Burzer, Chief Technology Officer, Development and Procurement at Mercedes-Benz Group, said, “By joining the First Movers Coalition, we are sending a clear signal to the market: we want lower-carbon aluminium in our vehicles.” The company is also working with Anglo American and HyIron on a pilot that uses hydrogen-based direct reduced iron production to explore lower-emission steel manufacturing.

In its manufacturing operations, Mercedes-Benz reported approximately 570 GWh of cumulative energy savings over the past two years. A planned 140 MW wind farm at Papenburg and a renewable electricity agreement with Iberdrola for more than 140 MW from the Windanker offshore project could together cover approximately half of the company's annual electricity requirements in Germany. These measures form part of its wider strategy to reduce emissions across vehicle production, energy use and raw material sourcing.

 

Source: Mercedes-Benz Group