Ranking
Comparison
Total Score
Environment
Human Rights
Summary
Mercedes remains among the top performers of this year’s Leaderboard, although the company has dropped from second to third place, narrowly trailing Ford by less than 1 percentage point. Crucially, Mercedes performs strongly across all of the Leaderboard’s sections: it is the only automaker evaluated that ranks among the top five highest scorers across each of the eight subsections, demonstrating that it is possible for automakers to achieve a robust performance across all of the issue areas evaluated by the Leaderboard.
Nonetheless, Mercedes’ overall performance was lackluster this year, increasing its total score by less than 2 percentage points. The company continues to be among the top three performers in the fossil-free and environmentally sustainable supply chain section, performing above average on the new deforestation indicators and making some notable improvements in the batteries subsection, where it has overtaken Tesla.
On human rights, Mercedes has not demonstrated major improvements in any of the human rights areas this year. Although the company achieved moderate improvements on general human rights due diligence and Indigenous Peoples’ rights, the company has remained stagnant on workers’ rights and transition minerals.
Key Findings
- Has set net zero targets across its supply chain, with the commitment that all procured production materials are net carbon-neutral by 2039.
- Has established a general commitment to Deforestation Free Supply Chains and contractually obligates its suppliers to take due diligence measures to support the protection of natural forests, illustrating implementation by providing evidence of engagement with suppliers on deforestation risks.
- The industry leader on low-carbon and near-zero emissions steel and aluminum procurement, having entered into multiple contracts and agreements with suppliers to support greater investment in and production of fossil-free steel and aluminum. However, demonstrates comparatively little progress on enhancing the use of secondary steel and aluminum.
- The top scorer in the fossil-free and environmentally sustainable batteries subsection, due to progress on sustainable battery mineral procurement and battery recycling, opening a new battery recycling factory in Kuppenheim in 2024 that uses a mechanical-hydrometallurgical process that can recover up to 96% of critical raw materials.
- Has strong human rights commitments, policies, and processes, and remains generally transparent on its supply chain due diligence activities, including by being the only company to explain in detail how it involves external human rights experts in its human rights risk assessment process.
- Maintains a generally high level of transparency on transition mineral sourcing, disclosing a good level of information about the results of its mineral supply chain mapping efforts and requiring suppliers to only use cobalt, lithium, nickel and natural graphite from IRMA-audited mines.
- Slightly improved performance on Indigenous Peoples’ rights due to greater disclosure on risks to Indigenous Peoples’ rights in its supply chain, including detail as to where in the supply chain they occur.
- Top performer on workers’ rights, demonstrating some of the best practices in this area, with strong policies, and mechanisms to consult workers and unions on the assessment of workers’ rights risks.
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.