We are aiming to cut carbon burden by 50 percent by the end of this decade: Chairman, Mercedes-Benz Group

Accelerating its effort toward an emissions-free and software-driven future of mobility, German luxury carmaker Mercedes-Benz is targeting to reduce 50 percent of its carbon footprint by the end of 2030. In order to fast track this transformation, the company has decided to launch electric-only vehicle architectures from 2025 onwards. 

“If we want to meet the Paris Climate Agreement of 2050, the rule of thumb is we should try to reduce our carbon burden in this decade by 50 percent as a company. In this regard, we have already decided a year and a half ago, that all new architectures from Mercedes Benz from 2023 will be electric-only,” Ola Källenius, Chairman of the Board of Management of Mercedes-Benz Group AG and CEO of Mercedes-Benz Group AG said at an event organised by the company in Delhi. He also underlined that the company is getting ready to go all electric by the end of the decade, where market conditions allow. To facilitate this shift, Mercedes-Benz will be investing over 40 billion euro on research and development of battery electric vehicles between 2022 and 2030. “By 2039, our ambition is to have a carbon-neutral new passenger car fleet,” the Chairman added.

At present, the company is sourcing CO₂-free electricity from solar, wind and hydro sources in various power plants, most of which are located in Germany and it intends to replicate this model in the rest of its facilities across the world. 

“At our Pune facility we have installed up to 3.6 megawatts of solar power, which is a substantial part of our electricity usage. Additionally, 90 percent of the electricity demand in our R&D office in Bangalore is generated by solar,” Källenius said. Following 15 editions in Germany, Mercedes-Benz hosted the first edition of its Sustainability Dialogue in India on Thursday. The 2023 edition of the dialogue was focused on ‘Sustainable Mobility – Accelerating Towards a Green, Inclusive and Safe Future’ to emphasise the need for decarbonising energy, industry, and mobility, and accelerating the transition toward a more sustainable future. 

Sustainability for Mercedes-Benz means creating value for all stakeholder groups: customers, employees, and investors, as well as for business partners and society as a whole. The India edition of the Sustainability Dialogue focused on driving sustainability in the mobility ecosystem in India and fostering collaborations and partnerships towards achieving India’s sustainable development goals. 

Over 250 attendees took part in the first India edition of Mercedes-Benz Sustainability Dialogue, including government representatives, policymakers, academics, corporate leaders, emerging start-ups, and ecosystem enablers. The Dialogue sought to accelerate collective transition to CO2-neutrality and focus on responsible usage of our planetary resources.

According to Manu Saale, CEO and MD, Mercedes-Benz Research and Development India sustainability is one of the company's core values, and it believes in creating value for all stakeholder groups. “With the first Sustainability Dialogue hosted in India, Mercedes-Benz reinforces its commitment to India and partners in the journey towards achieving India’s sustainable development goals,” he added.