Mercedes-Benz is setting up a green steel supply chain to expand its use of low-CO2 and zero-CO2 steel. Working closely with steel suppliers, the company is focusing on the avoidance and reduction of CO2 emissions.
At its first digital ESG (Environment, Social and Governance) conference for investors and analysts, the car manufacturer announced aims to at least halve CO2 emissions per passenger car over the lifecycle by the end of this decade compared to 2020 levels.
To achieve this goal, the company listed the following key strategies: electrifying the vehicle fleet, charging with green energy, improving battery technology, and an extensive use of recycled materials and renewable energy in production. Mercedes-Benz plans to cover more than 70% of its energy needs through renewable energy by 2030 by rolling out solar and wind power at own sites as well as through further Power Purchase Agreements.
In 2021, the company became the first car maker to take an equity stake in Swedish start-up H2 Green Steel (H2GS), with the aim of introducing green steel in a number of production models by as early as 2025.
By applying its “Design for Environment” and “Design for Circularity” approaches to the selection of materials, Mercedes-Benz Cars aims to increase the use of recycled materials per vehicle by 2030 to 40%.