Mercedes-benz Group Ag · XETR:MBG
Mercedes-benz — ESG Presentation (April 2022)
81 slides from Mercedes-benz's sustainability presentation, Apr 11, 2022
Slide 1: Mercedes-Benz Group ESG Conference 2022
MERCEDES-BENZ GROUP j ~ CONFERENCE. 2022 asi
Slide 2: Forward-looking statements
The following presentation contains forward-looking statements that reflect management's current views with respect to future events. Such statements are subject to many risks and uncertainties. If the assumptions underlying any of these statements prove incorrect, then actual results may be materia
Slide 3: Introduction
Internal Introduction Ola Källenius Chairman of the Board of Management of Mercedes-Benz Group AG
Slide 4: The desire for individual mobility keeps growing
Internal The desire for individual mobility keeps growing. Our goal is to meet the need in a sustainable way millions of units ~93,000,000 Global passenger car market 93 Expected volume of global passenger car market in 2030 24 1970 2030
Slide 5: The most important task of our generation: climate change
Internal The most important task of our generation: climate change 1.5° Celsius We need to limit the global human-made temperature increase
Slide 6: Sustainability is a guiding principle of our strategy
Internal Sustainability is a guiding principle of our strategy Our goal: we will build the world‘s most desirable cars Think Focus Expand Embrace Lead Lower and act on customer base customers and in electric cost base like a luxury profitable by growing grow recurrent drive and and improve brand gro
Slide 7: With our Ambition 2039 we put a stake into the ground
Internal With our Ambition 2039 we put a stake into the ground 2039 Our goal: carbon neutrality
Slide 8: We will scale our EV business
Internal We will scale our EV business >100% expected BEV sales growth in 2022 vs. prior year
Slide 9: We will play an active role in the energy transition
Internal Building sustainable cars in a sustainable way: We will play an active role in the energy transition Expected share of renewable energy >70% at Mercedes-Benz Cars Operations of our energy needs to be covered by renewable sources by 2030 2022 2030 *schematic representation
Slide 10: We foster sustainable business along the entire value chain
Internal We foster sustainable business along the entire value chain ~90% of our annual purchasing volume is supplied by companies that follow our ambition to become CO2 neutral
Slide 11: Safeguarding human rights along our entire supply chain
Internal We are aiming to safeguard human rights along our entire supply chain 24 raw materials identified and addressed
Slide 12: Clear roadmap to become CO2 neutral
Internal We defined a clear roadmap to become CO2 neutral. By 2030 we want to reach the half-way mark >50% CO2 lifecycle emissions target for average fleet car Mercedes-Benz Cars* less CO2 emissions per car over the lifecycle within this decade 2020 2025 2030 *schematic representation
Slide 13: The transformation starts with ourselves
Internal The transformation starts with ourselves ~42,000 employees qualified in e-mobility in the last two years in Germany alone
Slide 14: Effective diversity management starts at the top
Internal Effective diversity management starts at the top 30% women in leadership positions by 2030
Slide 15: Connecting ESG progress and management compensation
Internal Connecting ESG progress and management compensation 7 transformation targets relevant for company bonus to sharpen focus on ESG
Slide 16: Luxury and sustainability anchored in our Supervisory Board
Internal Luxury and sustainability also to be anchored in our Supervisory Board* 2 strong additions to our Supervisory Board *subject to the election by the Annual General Meeting
Slide 17: We are open about how we represent our political interests
Internal We are open about how we represent our political interests 1 st Climate Policy Report from Mercedes-Benz Group
Slide 18: We are committed to doing our part
Internal We are committed to doing our part >100 companies, regions, cities & regional governments joined forces to accelerate the transition at COP26 in Glasgow
Slide 19: Our agenda for today
Internal Our agenda for today Introduction Ola Källenius Climate & Decarbonisation Strategy Markus Schäfer Green Production & Logistics Jörg Burzer Q&A People Plan Sabine Kohleisen Sustainable Supply Chains Renata Jungo Brüngger Sustainable Corporate Governance Renata Jungo Brüngger Sustainable Fina
Slide 20: Climate & Decarbonisation Strategy
Internal Climate & Decarbonisation Strategy Markus Schäfer Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer responsible for Development and Procurement
Slide 21: A holistic sustainable business strategy
Internal We follow a holistic sustainable business strategy: Ecological, social, economical Climate & Air Protection Resource Integrity Human Conservation Rights People Partnerships Data Sustainable Responsibility Urban Mobility Traffic Safety
Slide 22: Ambition 2039 – CO2 neutrality over lifecycle
Internal Ambition 2039 – our commitment to CO2 neutrality over lifecycle Supply chain Production & Logistics Well-to-tank Tank-to-wheel End-of-life SBTi SBTi SBTi CO2-neutral CO2-neutral CO2-neutral CO2-neutral CO2-neutral supply chain production & logistics energy generation vehicle operation recyc
Slide 23: Halve lifecycle CO2 emissions per vehicle this decade
Internal We will at least halve lifecycle CO2 emissions per vehicle in this decade Mercedes-Benz Cars – on our way towards Ambition 2039 – we target the full lifecycle of the car 100% More than half per decade End-of-life Use phase Use phase Production & Production & logistics logistics Supply chain
Slide 24: Nine electric models on the road in 2022
Internal Nine electric models on the road in 2022 and more to come! coming soon EQB EQS EQE EQS SUV EQE SUV EQA EQC EQV EQT
Slide 25: Three EV-only architectures to be launched in 2025
Internal Three Mercedes-Benz EV-only architectures to be launched in 2025 Ready to go all-electric by the end of the decade* MB.EA AMG.EA VAN.EA medium- and large-size cars dedicated performance for electric vans modular system as electric electric-vehicle architecture and light commercial backbone
Slide 26: VISION EQXX: maximum efficiency and sustainability
Internal VISION EQXX: Pushing the limits of maximum efficiency and sustainability Range of over 1,000 kilometres Less than 10 kWh per 100 km Cd = 0.17
Slide 27: Battery is biggest lever for CO2 reduction
Internal Battery is biggest lever for CO2 reduction in supply chain and production
Slide 28: Next-generation lithium-ion battery
Internal Next-generation lithium-ion battery: Reducing cobalt and increasing energy density Load Anode Separator Cathode Lithium-ion Today Li+ Li+ Li+ Discharge Li+ graphite anode By mid-decade High-Si anode By mid-decade Cobalt-free LFP cathode Strategic partners liquid electrolyte
Slide 29: Solid-state battery technology to come ~2028
Internal Solid-state battery technology to come ~2028: Almost double energy density compared to today's Li-ion battery cells Load Anode Separator Cathode Discharge Li+ solid state Strategic partners
Slide 30: Mercedes me Charge: Green Charging
Internal Mercedes me Charge: Green Charging in most major markets 250 km WLTP recharged in 15 minutes* > 700,000 charging points worldwide *EQS and EQE
Slide 31: Resource conservation with circular economy approach
Internal Resource conservation: Decoupling growth from resource consumption – with circular economy approach as enabler “Close “Design for the loop” circularity” “Preserve values”
Slide 32: Expanding use of sustainable materials
Internal Resource conservation: Expanding use of sustainable materials Sustainable materials in the VISION EQXX … … in series production DINAMICA® from recycled materials 100% recycled polyester textile from PET … or to come with new models Cable ducts made of recycled household waste Genuine leathe
Slide 33: Setting up our own battery recycling
Internal Creating a circular economy for batteries: Setting up our own battery recycling
Slide 34: Sustainable supply chains for focus materials
Internal We create sustainable supply chains for focus materials via technology changes Steel – CO2 reduction: Further materials in focus: Aluminium sheet/cast optimised Thermoplastics conventional Battery materials Base Steel – CO2 prognosis over time: green electricity H2GS Oxygen furnace Directly
Slide 35: Green-steel supply chains as of 2025
Internal Setting up green-steel supply chains for our vehicles as of 2025 CO2 CO2-free intensive steel Salzgitter AG Steel and technology SSAB H2 Green Steel
Slide 36: On our way to a sustainable vehicle lifecycle
Internal On our way to a sustainable vehicle lifecycle
Slide 37: Green Production & Logistics
Internal Green Production & Logistics Dr. Jörg Burzer Member of the Board of Management of Mercedes-Benz Group AG, Production & Supply Chain Management
Slide 38: Pledge to make vehicle production CO2 neutral this year
Internal Mercedes-Benz has pledged to make vehicle production CO2 neutral this year Mercedes-Benz global production network Together with our EV strategy, CO2 neutral production is a key driver of Ambition 2039 All Mercedes-Benz plants worldwide are producing 100% CO2 neutrally in 2022 We plan to co
Slide 39: Factory 56 as a blueprint
Internal Our Factory 56 is a zero-carbon factory and serves as a blueprint for our global Mercedes-Benz production network At our Factory 56 in Sindelfingen “producing sustainability” is already reality The innovative energy concept includes a photovoltaic system, a DC power grid and energy storage
Slide 40: Producing clean energy at our own sites
Internal Having achieved CO2-neutral production this year, not only do we use clean energy in production, we also produce it It is our ambition to make all Mercedes-Benz factories renewable energy production sites Solar cells with an output corresponding to more than 1,000 photovoltaic systems on si
Slide 41: Expanding green power portfolio and wind energy
Internal We are heavily expanding our green power portfolio plus investing into wind energy We plan to purchase additional wind energy through Power Purchase Agreements equivalent to 1 billion euros by mid decade We aim to generate 15% of our energy needs from solar and wind generated at our own sit
Slide 42: CO2 neutrality across the entire value chain
Internal When it comes to CO2 neutrality, we’re not only looking at our production, but at our entire value chain The next step is to make our logistics CO2 neutral as well Battery systems are already transported from Hedelfingen, Stuttgart, to Bremen using rail transport We will build a new logisti
Slide 43: Water usage reduction and sustainable heat supply
Internal Water usage reduction and a sustainable heat supply are cornerstones in reducing our ecological footprint Our use of water will be cut by 35% by 2030 thanks to multi-reuse of water in production We boost the sustainability of our plants’ heat supply, especially focusing on our paint shops W
Slide 44: Battery recycling factory in Kuppenheim
Internal Circular economy: Closing the loop with our battery recycling factory in Kuppenheim Own CO2-neutral recycling plant in Kuppenheim, southern Germany, is scheduled to open in 2023 Hydrometallurgy: Innovative technology increases recovery rate >96% to more than 96% Cooperation with high-tech p
Slide 45: Sustainability is at the core of our activities
Internal Sustainability is at the core of our activities and forms the basis of all our actions We set new standards for sustainability in automotive production Having achieved CO2-neutral production in 2022, we double down on sustainability in logistics We move from sustainable production to produc
Slide 46: Sustainable production means producing sustainability
Internal Sustainable production at Mercedes-Benz means producing sustainability
Slide 47: People Plan
Internal People Plan Sabine Kohleisen Member of the Board of Management of Mercedes-Benz Group AG, HR & Director of Labor Relations
Slide 48: HR cares for the S in ESG
Internal HR cares for the “S” in ESG
Slide 49: A great strategy is only as good as the people behind it
Daimler I Internal A great strategy is only as good as the people who are behind it Re-shape Streamlining our organisation in a responsible way Re-skill Developing future-oriented qualifications Re-charge Meeting the Mercedes-Benz standards as an employer
Slide 50: Plant Berlin-Marienfelde as a blueprint
Internal Our plant Berlin-Marienfelde as a blueprint Re-shape New talents and fair solutions Re-skill Qualification first Re-charge Modern working experience
Slide 51: Streamlining our organisation in a responsible way
Internal Streamlining our organisation in a responsible way Becoming more efficient and leaner in a fair and socially responsible way Bringing new talent on board
Slide 52: Future-oriented qualification
Internal Future-oriented qualification 42,000 employees qualified in e-mobility 1.3 million hours of qualification 155-million-euro investment in education and training
Slide 53: Defining the Mercedes-Benz way as an employer
Internal Defining the Mercedes-Benz way as an employer Modern, flexible and diverse working environment Our ambition: 30% women by 2030 in management positions 6.6-million-euro annual investment in well-being
Slide 54: Defining the Mercedes-Benz way as an employer
Internal Defining the Mercedes-Benz way as an employer Modern, flexible and diverse working environment Our ambition: 30% women by 2030 in management positions 6.6-million-euro annual investment in well-being
Slide 55: One winning Mercedes-Benz team
Internal We shape this transformation as one winning Mercedes-Benz team
Slide 56: Sustainable Supply Chains – Respecting Human Rights
Internal Sustainable Supply Chains – Respecting Human Rights Renata Jungo Brüngger Member of the Board of Management of Mercedes-Benz Group AG, Integrity & Legal Affairs
Slide 57: Pioneers in human rights due diligence
Internal We are pioneers in human rights due diligence Mercedes-Benz Human Rights Respect System licy commitmen Identify & analyze risks Production material Po t g tin asse 1 R or s Take action isk ent ep sm 4R HRRS Own entities Due diligence cycle Review effectiveness 3M on nt a m ati ito on gr rin
Slide 58: Raw materials posing human rights risks
Internal We identified 24 raw materials posing human rights risks Overview Al Fe Mo Pt Sn L 13 26 77 49 ALUMINIUM IRON MOLYBDENUM PLATINUM TIN LEATHER Cr Li Ni Rh W M 24 3 27 44 74 CHROMIUM LITHIUM NICKEL RHODIUM TUNGSTEN MICA Co Mg Nb Si Zn R 27 12 41 14 29 RARE EARTH COBALT MAGNESIUM NIOBIUM SILIC
Slide 59: Increasing transparency – lithium as an example
Internal We act systematically to increase transparency – lithium as an example Creating transparency along Transparency the raw material supply chains Identifying risk hotspots in Risk hotspots these supply chains Define and implement Measures measures for risk hotspots
Slide 60: We drive collaboration on the ground
Internal We drive collaboration on the ground We team up with others locally We form partnerships and join strategic initiatives We support projects on the ground to generate direct impact
Slide 61: Empowerment before retreat approach
Internal We follow the “empowerment before retreat” approach Projects in India and the Democratic Republic of the Congo Enable education Provide economic support
Slide 62: We search for feedback and share knowledge
Internal We search for feedback – and share knowledge Public commitment Stakeholder engagement Sharing experience
Slide 63: Sustainable Corporate Governance
Internal Sustainable Corporate Governance: Enabling our sustainable transformation Renata Jungo Brüngger Member of the Board of Management of Mercedes-Benz Group AG, Integrity & Legal Affairs
Slide 64: Governance to foster innovations such as automated driving
Internal We use our governance to foster innovations – such as automated driving Proven technical Compliance Management System Integration of societal perspectives with our ethics-by-design approach
Slide 65: Governance to foster innovations such as automated driving
Internal We use our governance to foster innovations – such as automated driving Proven technical Compliance Management System Integration of societal perspectives with our ethics-by-design approach
Slide 66: Adaptive compliance along the value chain
Internal We apply adaptive compliance along the value chain Anti- Data Social Homologation Trust Compliance Compliance Compliance 2011 2017 2020/21 2022 + Further future topics 2006 2016 2018/19 • IT Compliance • Software Compliance • In-Use Product Compliance Anti- Technical Anti-Money Sanction & C
Slide 67: ESG criteria in corporate governance structures
Internal We integrate ESG criteria in our corporate governance structures Board-level Sustainability aspects Sustainability aspects Sustainability- steering committee for integrated anchored in strategic related group-wide into risk management decision making transformation sustainability process pr
Slide 68: Advisory Board for Integrity & Sustainability
Internal Advisory Board for Integrity & Sustainability Peter Bakker Dr. Martin von Broock Dr. Teresa Fogelberg Prof. Dr.-Ing. Dipl.-Volkswirtin Helmut Holzapfel Renate Hornung-Draus Prof. Peter Jones, OBE Prof. Dr. Johan Rockström Sylvia Schenk Changhua Wu
Slide 69: Company bonus based on EBIT and ESG
Internal We base our company bonus not only on EBIT, but also on ESG Financial Targets Non-financial Targets Transformation Targets E - CO2 emissions tank-to-wheel - CO2 emissions production (SBTi) - xEV acquisitions rate S Digitization - Number of assessed high-risk materials - Safety innovations -
Slide 70: We think, speak, and act ESG
Internal We think, speak, and act ESG
Slide 71: Sustainable Finance
Internal Sustainable Finance Harald Wilhelm Member of the Board of Management of Mercedes-Benz Group AG, Finance & Controlling/Mercedes-Benz Mobility
Slide 72: Ambition 2039 – also financially
Internal With our Ambition 2039 we put a stake into the ground – also financially 2039 Our capital allocation is aligned with our Ambition 2039 and the Paris climate targets
Slide 73: Capital allocation moving to EV-only
Internal Capital allocation moving to EV-only €60Bn -80% Investment plan for an Reduction in emission-free and non-BEV investments software-driven future from 2022 until 2026
Slide 74: Our Green Finance Framework
Internal Our Green Finance Framework: A cornerstone of our ESG activities Rated Dark Green* *CICERO Shades of Green AS, a second party opinion provider, graded Mercedes-Benz’ Green Finance Framework with the highest grade “dark green” in 2020
Slide 75: Mercedes-Benz Mobility Green Mapping algorithm
Internal Mercedes-Benz Mobility uses Green Mapping algorithm to foster EV sales +54% more xEVs financed or leased via Green Mapping than without the algorithm 14 markets live globally
Slide 76: Increasing variety and share of Green Financing instruments
Internal We are committed to increasing the variety and share of our Green Financing instruments Our target address the whole bandwidth of investors
Slide 77: Assertive sustainable investor
Internal Mercedes-Benz acts as an assertive sustainable investor €24Bn of pension assets sustainably invested
Slide 78: EU Taxonomy: new opportunities in sustainable finance
Internal EU Taxonomy: Seizing new opportunities for Mercedes-Benz in sustainable finance significant increase 100/>40 with EV-only >40% Capitalized R&D1,2 100% eligibility / >40%1,2 capitalized R&D expenditures relating >35% CapEx pp&e1,2 to low-carbon vehicles 21% CapEx1 2021 2026 1) Voluntary repo
Slide 79: Our ESG Ratings significantly improved in 2021
Internal Our ESG Ratings significantly improved in 2021 Upgraded from Leading position in the Ranked with the highest rating BBB to A sub-industry peer group in the auto sector (last update 09/2021) ranked 6 out of 71 Prime Status (C+) (last update 12/2021)
Slide 80: Only sustainable businesses will be investable
Internal Only sustainable businesses will be investable in the future; others will run out of road.
Slide 81: Disclaimer
This document/presentation contains forward-looking statements that reflect our current views about future events. The words anticipate’, “assume’, believe’, “estimate’, expect’, “intend”, "may’, "can", “could”, "plan’, "project’, "should" and similar expressions * are used to identify forward-looki