Climate Policy Engagement: Mercedes-Benz receives a grade of C- in InfluenceMap’s assessment of corporate engagement on climate change policy, indicating positive and negative engagement with Paris-aligned policy.
Forecasted 2030 Production: 71% of Mercedes-Benz's light-duty vehicle production in 2030 is forecast to be electric vehicles (67% battery electric vehicles (BEVs), 4% plug-in hybrids, and 0% fuel cell electric vehicles (FCEV)). This compares positively to the IEA’s 1.5°C scenario, which estimates that 66% of all car and van sales must be electric (BEV, PHEV or FCEV) by 2030 to meet a 1.5°C global temperature goal.
Climate Lobbying Overview: Mercedes-Benz has strategically engaged with climate policy in Europe and the US in 2022-24 with both positive and negative positioning. This includes advocating for less ambitious timelines for US federal light-duty GHG emission standards and appearing unsupportive of a Canadian ZEV mandate, while advocating for measures to promote EV infrastructure expansion globally.
The full climate policy engagement profile of Mercedes-Benz is available here.
Internal decarbonization targets: Mercedes-Benz Cars has set a target of reducing CO2 fleet emissions 50% by 2030 (2020 baseline) and achieving 100% electric vehicle sales by 2030 “where market condition allow”, according to the company’s 2023 Climate Action Plan. However, in May 2024, Mercedes-Benz CEO appeared to partially retreat from this commitment, stating they will continue to make combustion-engine and hybrid vehicles “well into the 2030s” if demand was there. The company also aims for all of its new vehicles to be carbon-neutral across the entire value chain by 2039, regardless of market conditions. Mercedes-Benz has signed the COP26 declaration for all sales of new cars and vans to be zero emission globally by 2040, and by no later than 2035 in leading markets.
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Mercedes-Benz's forecasted fleet composition by technology: The IEA determined in its 2023 1.5C road transport scenario that 66% of all light-duty vehicle sales must be electric (battery electric vehicles, fuel cell electric vehicles and plug in hybrids) by 2030 to meet the Paris Agreement’s 1.5°C goal. Globally, Mercedes-Benz’s 2030 production forecast is aligned with the IEA’s scenario. In 2030, Mercedes-Benz is forecast to produce 71% electric vehicles (67% BEVs, 4% PHEVs and 0% FCEV), 28% ICE-powered hybrids and 0% combustion engine.
Mercedes-Benz's forecasted vehicle size: Larger vehicles are a significant cause of increased GHG emissions from road transport, with smaller vehicles across different technologies generally producing fewer emissions. Mercedes-Benz’s 2023 combined percentage proportion of SUVs and light commercial vehicles is approximately 59%, however this proportion is projected to increase to 62% through 2030.
Mercedes-Benz's electric vehicle production compared: 71% of Mercedes-Benz’s vehicles produced in 2030 are forecast to be electric (battery electric vehicles, plug-in hybrids or fuel cell electric vehicles), compared to an average of 53% for all automakers.
