Spurwechsel We are changing lanes

Dear readers,

GRI 102-14

We publish this report as people all around the world fight against the COVID-19 pandemic. It is still too early to speculate about possible consequences and learnings from this crisis. Already today, however, it is clear that COVID-19 is shaking up many seemingly well-established certainties: Our health, our freedom, our wealth, large parts of our collective social lives are being challenged. At the same time, we are experiencing that crucial changes are possible if we act decisively and with joint responsibility.

This report also is about crucial changes. Its title “SpurWechsel”, German for lane change, stands for kicking our transformation towards sustainable mobility into high gear. It is based on the conviction that “business as usual” is not an option in times of climate change. At Daimler we are therefore pursuing our vision of a mobility that does not require fossil fuels, consumes fewer resources, and does not cause accidents or traffic jams. And we are convinced that tomorrow’s mobility cannot be shaped by prohibitions. What we need is fair, global competition that produces the best solutions and technologies. In 2019, we stated how this can be achieved in our sustainable business strategy. It shows how we link our economic goals directly to our social and environmental responsibility.

One of our most important concerns is the reduction of CO2 emissions. With “Ambition 2039,” we have set ourselves challenging targets. For Mercedes-Benz, for example, this means that we aim to have a CO2-neutral new passenger car fleet worldwide by 2039. With this, we are focusing on the entire lifecycle of our vehicles – from their development to the extraction of raw materials, to production and use, and to their disposal.

To achieve this, we are prioritizing the electrification of our vehicles. The EQ family is growing with the market launch of the EQV (Electric power consumption combined: 26.4-26.3 kWh/100 km; CO2 emissions combined: 0 g/km)1 and the world premiere of the EQA. By the end of 2020, our car portfolio will therefore comprise a total of five all-electric models and more than 20 plug-in hybrids. We also intend to offer battery-electric commercial vehicles in all core regions by 2022. We already have the eCascadia and eActros all-electric trucks in customer service, the eVito and eSprinter vans are on the market, and our eCitaro city bus is already in mass production. We plan to produce more than 600,000 batteries for these vehicles in 2020 – in nine factories at seven locations on three continents. At our production facilities, we already achieved our long-term CO2 reduction targets for 2020 in 2019. We are now going one step further: Starting in 2022, production at all of Daimler’s European plants will be completely CO2-neutral.

The Science Based Targets Initiative scientifically verified our consistent path toward greater climate protection in 2019. Our CO2 targets are thus in line with the Paris Climate Agreement. And we are calling on our partners and suppliers to set themselves similarly ambitious targets.

In addition to CO2 reductions, sustainability has many other facets. One of them is resource conservation: We were able to reduce energy and water consumption as well as waste for disposal per vehicle produced across all segments over the last few years. In the long term, we want to evolve from the value chain to the value cycle. The protection of human rights along the entire supply chain is equally important. In order to meet our responsibilities, we conduct risk-based due diligence audits – for example at mines that extract raw materials such as cobalt. And, of course, our sustainable business strategy includes continuing to work for greater traffic safety, the responsible handling of data, better quality of life in cities, and more cooperation and collaboration – in private-sector and social partnerships.

We are convinced that we can only change lanes with a diverse and motivated workforce. That is why we aim to continue to be an attractive employer in the future. To this end, we offer – besides fair wages – a variety of flexible working models including part-time, mobile work, or jobsharing. And we are committed to a modern leadership culture.

Along the way, the Integrity Code, our code of conduct, which was updated in 2019 and effective worldwide, provides the legally and ethically binding framework for all our activities. We also keep an eye on strategic future issues in this context. For example, we became the first automaker to publish our own principles for how we use artificial intelligence in September 2019. Additionally, the United Nations’ Sustainable Development Goals and the principles of the UN Global Compact are important guidelines for our decisions.

We are changing lanes – our SpurWechsel is in full swing. In this report, you can read where we currently stand and what progress we made in 2019. We hope you enjoy reading it and look forward to a critical and constructive dialog with you!

Sincerely yours,

Ola Källenius Chairman of the Board of Management
of Daimler AG and Mercedes-Benz AG
Renata Jungo Brüngger Member of the Board of Management Daimler AG
Integrity and Legal Affairs
Co-Chair of the Group Sustainability Board
Markus Schäfer Member of the Board of Management Daimler AG
Group Research & Mercedes-Benz Cars
Chief Operating Officer
Co-Chair of the Group Sustainability Board

1 see appendix: labeling

Other topics

A changing world

Motivated by the vision of climate-friendly mobility, we initiated a lane change in 2019. The road lies ahead – this is how we deal with global trends and develop solutions for the future.

A changing world

Provider/Privacy

Daimler AG Mercedesstraße 120
70372 Stuttgart
Germany
Tel.: +49 711 17 0
E-Mail: dialog@daimler.com

Represented by the Board of Management: Ola Källenius (Chairman), Martin Daum, Renata Jungo Brüngger, Wilfried Porth, Markus Schäfer, Britta Seeger, Hubertus Troska, Harald Wilhelm

Chairman of the Supervisory Board: Manfred Bischoff

Commercial Register Stuttgart, No. HRB 19360
VAT registration number: DE 81 25 26 315