Ranking
Comparison
Total Score
Environment
Human Rights
Summary
Although Mercedes continues to be one of the top performers of this year’s Leaderboard, the company’s overall performance has been disappointing this year. Despite achieving notable improvements in some areas, these gains were offset by regressions in others, causing Mercedes’ score to drop in five of the eight Leaderboard sub-sections. As a result the company’s overall score remains at 41% and it has fallen in the rankings by one position for the third year running.
In the fossil-free and environmentally sustainable supply chains section, Mercedes took an important step forward in this year’s edition by becoming the first automaker to disclose an EV lifecycle assessment that provides information on the specific quantities of low-carbon steel and aluminum used in the vehicle. However, regressions in other areas meant that Mercedes overall score in this section increased by just 1 percentage point.
The company regressed against indicators in all of the Human Rights sub-sections with the exception of Indigenous Peoples’ Rights, causing the company’s total human rights score to fall by 2 percentage points.
Despite this poor rate of progress, Mercedes remains among the top five highest scoring automakers in most of the human rights sub-sections, only sliding to sixth place on General Human Rights Due Diligence. The company also continues to demonstrate some of the industry’s best practices in this area, and remains in second and first place on Indigenous Peoples’ and Workers’ Rights respectively.
Key Findings
- Updated its Responsible Sourcing Standards in 2025, which now require suppliers to commit to CO2 targets specific to materials and components, but no longer mandate the setting of science-based climate targets. The new standards also no longer explicitly prohibit recruitment fees, and removed key information on measures to verify the implementation of corrective action plans.
- Stopped disclosing important data across both sections including the percentage of end–of-life batteries undergoing reuse or repurposing, the number of prospective suppliers assessed against sustainability standards and their tiers, and the number of grievances raised through the company’s grievance mechanism.
- Disclosed an LCA for its CLA with EQ Technology EV model which specifies that the vehicle uses “39 kg of steel from electric arc furnaces, which are manufactured using electricity from renewable energy sources” and that “40 % of the aluminum used in the CLA is produced in electrolysis plants using renewable energies.”
- Remains among the top three performers on steel supply chain decarbonization, and continues to be the top scoring automaker for green steel offtake agreements specifically.
- Opened Europe’s first integrated mechanical-hydrometallurgical battery recycling plant in Kuppenheim in 2024, capable of achieving a 96% recovery rate.
- Demonstrates some of the best practices on human rights risk identification and assessment, with an agile risk assessment that responds to changes in circumstances, goes beyond Tier 1 and includes the pre-sourcing stage.
- Publishes a detailed Raw Materials Report that provides substantive descriptions of specific human rights and environmental risks the company has identified across different raw material supply chains, explains Mercedes’ theory of change for addressing these risks and adverse impacts, and includes concrete evidence of due diligence implementation in a range of contexts.
- Remains in the top two highest scoring automakers regarding Indigenous People’s Rights, has strengthened requirements on suppliers in this area.
- Remains the top performer on workers’ rights, demonstrating some of the best practices regarding worker participation in due diligence processes.
Score Breakdown
Fossil-Free & Environmentally Sustainable Supply Chains
General
Steel
Aluminum
Batteries
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Human Rights & Responsible Resourcing
General
Minerals
Indigenous' Rights
Workers' Rights
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Supply Chain News & Progress
Latest on Mercedes
Supply chain transformation is a risk management imperative and opportunity for a competitive edge. Leading brands are already securing a first-mover advantage and leveraging their power to transform legacy supply chains into a force for good. The revolution is underway.
Honda and Mercedes face allegations of illegal union-busting in the U.S.
Global automakers Honda and Mercedes are facing allegations that they have engaged in illegal union-busting activities in the U.S. Honda has been accused by the National Labor Relations Board of violating the rights of workers at a Greensburg, Indiana, factory by illegally cracking down on union organizing. Mercedes, meanwhile, has been accused by the UAW of engaging “in a relentless anti-union campaign” including the firing of employees who were pro-union and holding frequent captive-audience meetings to spread anti-union views, according to the filing.
Mercedes and H2 Green Steel announce agreements in both Europe and North America
Mercedes-Benz and H2 Green Steel have signed a binding agreement for the delivery of about 50.000 tonnes of green steel to the car maker’s European production annually. In a pioneer move Mercedes-Benz has also signed a memorandum of understanding with H2 Green Steel for the potential supply of green steel produced in North America.
Mercedes announces new supply chain goals, including steel, aluminum, battery recycling, and human rights risk assessment
At Mercedes annual ESG Conference 2023, Mercedes announced further supply chain priorities, plans, and investments across several areas.
Mercedes set “the goal of a green steel supply chain from 2039 at the latest,” including “low-CO2” steel from scrap already part of their vehicles, further details on their partnerships with H2 Green Steel and SSAB, including prototyping parts that contain “almost fossil-free direct-reduced iron,” and their intention to launch models from 2025 that use “almost CO2-free” steel. Like BMW, Mercedes also stated they see themselves as “promoting the transformation of the steel industry.”
Regarding aluminum, Mercedes stated they are working on decarbonization, however did not provide specific targets or milestones. They did state that “a third of the aluminium used in Europe” for EVs will be made with renewable energy, and that they are testing aluminum from Hydro with a minimum 25% scrap content, with the aim of it being incorporated into production this year. Each results in 50% and 70% lower CO2 emissions, respectively. Also with Hydro, Mercedes plans to pilot “very low CO2” aluminum by 2030.
Mercedes’ new battery recycling factory will increase their operations and achieve a recycling rate of more than 96%, with the potential to recycle “2,500 tonnes of battery modules per year.” They are also working with partners in China on recyclable materials. Additionally, Mercedes are aiming to reduce the CO2 footprint of battery cells by 40% with further emissions reductions’ possible with renewable energy to produce and refine raw materials.
Mercedes also shared further details on their timeline and milestones to assess 24 raw materials with elevated human rights risks: 70% by 2025 and completed by 2028. They also stated that this year, they plan to “establish risk mitigation measures for all raw materials affected by the future EU battery regulation.”
Mercedes establishes multiple partnerships on steel, aluminum, and lithium with IRMA certification requirement
Mercedes will procure “low-carbon aluminum” from Norsk Hydro, launched a partnership with SSAB to “introduce fossil-free steel into vehicle production as early as possible,” their China operations (Beijing Benz Automotive, BBAC signed an MoU with Baosteel for reduced-emissions steel and, in the future, green steel, and signed a lithium supply agreement with Rock Tech Lithium Inc. that will include creating a roadmap to achieving “CO₂ neutral production” of lithium hydroxide by the end of 2030. It also requires that all lithium hydroxide shall be sourced from mining sites audited by the Initiative for Responsible Mining Assurances (IRMA). Mercedes also recognized an established supplier, Big River Steel, with a sustainability award.
Allegations of forced labor and human rights violations in rare earth supply chains
The Business and Human Rights Resource Center has documented allegation that implicate Mercedes’ supply chains in forced labor and human rights violations in rare earth mining.
Our Vision
01 — Equitably
Respecting and advancing the rights of Indigenous Peoples, workers, and local communities throughout the supply chain.
02 — Sustainably
Preserving and restoring environmental health and biodiversity across supply chains, while reducing primary resource demand through efficient resource use and increased recycled content.
03 — Fossil-free
100% electric and made with a fossil fuel-free supply chain.
