Mercedes-Benz to Deepen Sustainability Efforts in Operations and Global Supply Chain

Mercedes-Benz-India
Image Courtesy: Mercedes-Benz India

Mercedes-Benz, the renowned German luxury car manufacturer, is intensifying its focus on sustainability across its operations and global supply chain as part of its broader vision to achieve carbon neutrality by 2039. During the Sustainability Dialogue India 2024 summit in New Delhi on September 3, the company outlined its comprehensive approach to addressing environmental, social, and governance challenges.

Ola Källenius, Chairman of Mercedes-Benz, emphasized the company’s commitment to carbon neutrality, highlighting the crucial role India plays in advancing sustainability within a fast-growing economy. “Globally, we are on a path to achieve carbon neutrality by 2039. India, with its economic growth, is vital to our sustainability efforts,” Källenius stated. He also mentioned initiatives like the Sustainability Garage and the BeVisioneers program, which drive innovation and sustainable practices.

Renata Jungo Brüngger, Member of the Board of Management for Integrity, Governance, and Sustainability at Mercedes-Benz Group, acknowledged that while the company has long been engaged in sustainability, its efforts have become more focused and multifaceted. “We have refocused our strategy, identifying six key areas—decarbonization, resource usage and circularity, traffic safety, digital trust, human rights, and people—to drive a sustainable business,” she said.

As electric vehicles (EVs) increase demand for materials like lithium, cobalt, and magnesium, Brüngger highlighted the challenges of ensuring sustainable and ethical sourcing. She noted that Mercedes-Benz has over 40,000 suppliers and conducts rigorous risk assessments and audits to maintain high sustainability standards within its supply chain.

During a panel discussion on global sustainability trends and their impact on the Indian automotive industry, Amitabh Kant, India’s G20 Sherpa, stressed the importance of India leading the way in sustainable urbanization and electrification. “India must make a quantum leap in sustainability, just as we have in mobility,” Kant said, pointing to government initiatives like FAME and PLI as drivers of the country’s EV push.

Manu Saale, Managing Director of Mercedes-Benz Research and Development India (MBRDI), spoke on the challenges of decarbonizing a global operation that sells 2 million cars annually. He explained that MBRDI is focusing on sustainable mobility and environmental sustainability, aiming to develop technological solutions that address real-world challenges. “Our sustainability agenda has given us a renewed vision to tackle these issues,” Saale concluded.