Overview

With the Ambition 2039, Mercedes-Benz committed themselves to become a carbon-neutral* company by 2039 along their entire value chain. Hence Mercedes-Benz is not only taking responsibility for emissions that occur when using their vehicles, but also for emissions that occur when producing the vehicle. A huge proportion of these emissions do not occur at Mercedes-Benz locations, but in its supply chain. To develop a realistic yet ambitious decarbonization strategy, gaining transparency about emissions hotspots in the supply chain and quantifying potential reduction measures is crucial. Mercedes-Benz, therefore, decided to partner with Sphera’s Sustainability Consultants, leveraging their detailed life cycle assessment (LCA) models and supply chain expertise to address this need. 

*include all greenhouse gases according to the Greenhouse Gas Protocol that are converted in CO2-equivelents 

IN THIS CASE STUDY

HIGHLIGHTS

Achieved CO2 transparency in the supply chain.

Developed the capability to quantify supply chain strategies (e.g., use of renewable energy) in terms of decarbonization potential. 

Gained the ability to formulate, quantify and refine CO2 reduction targets. 

Challenges

1

Missing emissions transparency. 

2

Lack of reliable, detailed emissions inventories for steel, aluminum and plastics. 

3

Lack of knowledge about the influence of renewable energy and recycled or bio-based materials and their impacts on supply chain emissions. 

4

Lack of CO2 reductions potentials for target setting. 

Solution

When aiming to decarbonize the supply chain of cars, the focus naturally shifts to the supply chains of key materials. Sphera’s consultants conducted detailed CO2 modeling for the supply chains of steel, aluminum, and plastics, identifying and quantifying potential reduction measures. These measures included alternative production routes for steel, such as using direct reduced iron, integrating renewable energy into the supply chains of aluminum and plastics, and utilizing secondary and bio-based materials. Where necessary and relevant, additional environmental impacts—such as acidification, water consumption, and others—were also considered. 

Results

Sphera’s LCA consulting expertise and deep supply chain knowledge enabled Mercedes-Benz to gain a detailed understanding of emissions hotspots and reduction measures in their supply chain, helping them to refine their supply chain decarbonization strategy. 

“Sphera’s sophisticated supply chain LCA models and their extensive supply chain understanding helped us gain transparency in our supply chain. Quantifying decarbonization pathways for our main materials was the missing piece of our corporate decarbonization strategy.”
— Dr. Klaus Ruhland, Sustainability, Corporate Environmental Protection and Energy Management, Mercedes-Benz AG

What made this happen?

Sphera’s Sustainability Consultants, equipped with our leading industry-based LCA data, empower your organization to create a customized, data-driven decarbonization strategy tailored to your specific business model.  

Sustainability Consulting

No matter where you are on your sustainability journey, our consulting experts help you drive positive change with their strategic ESG, LCA, methodological and sector knowledge.
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Managed LCA Content

Our Managed LCA Content database offers over 20,000 process datasets that include 1,000 models. With access to datasets from over 60 industry associations that are modeled with Sphera’s Managed LCA Content, you gain a stronger foundation for your life cycle decisions.
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ABOUT MERCEDES-BENZ 

Headquarters in Stuttgart, Germany 

175,000 employees (2024) 

€145.6 billion revenue (2024) 

2.4 million vehicles sold (2024) 

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