Climate protection & air quality

Climate protection

Our vehicles: We are developing new standards for climate protection on the road

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The Paris Agreement on climate protection establishes the goal of limiting global warming to significantly less than two degrees Celsius compared with the preindustrial level. In their climate protection plans, the signatory countries define their ambitious goals for reducing greenhouse gases overall and in individual sectors. For example, the climate protection plan of the German government aims to reduce total CO2 emissions in the transport sector by 40 to 42 percent relative to 1990 levels by 2030.

EU regulations focus on new vehicles and prescribe the following reduction targets: By 2030, the CO2 emissions of cars should be reduced by 37.5 percent relative to the base values of 2021; those of vans should be reduced by 31 percent. An intermediate target of 15 percent to be achieved by 2025 has been set for each of these two vehicle groups. Heavy-duty commercial vehicles must reduce their CO2 emissions by 15 percent on average relative to the reference period 2019/2020 by 2025 and by 30 percent on average by 2030. Moreover, the overarching EU climate target within the framework of the EU Green Deal was adjusted from the current minus 40 percent to at least minus 55 percent for the period from 1990 to 2030. Against this background, we assume that the EU standards for new vehicles will also become much more stringent.

For us, the Paris Agreement represents more than just an obligation; our commitment to its targets stems from our fundamental convictions. We believe that it is our mission to develop technical innovations that will lead to CO2-neutral mobility around the world. We realize that this mission will require a high level of investment. In order to finance it, we intend to increasingly use new tools such as in the future. Green bonds offer environment-oriented investors the opportunity to directly participate in the implementation of our technological strategy. However, the broad-based success of low-emission mobility requires not only sustainable investment but also favorable framework conditions. We need ambitious CO2 pricing systems for fossil fuels and the creation of a comprehensive charging infrastructure as well as a hydrogen filling station network.

Our product development takes emissions into account from the start

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Daimler has set itself the goal of developing products that are especially environmentally friendly and energy-efficient in their respective market segments. Our environmental and energy guidelines define how we intend to reach this goal. Product development plays a key role in this regard: A vehicle’s environmental impact — including its emissions of CO2 and pollutants — is largely determined during the first phases of its development. The earlier in the development process we take environmental aspects into account, the more efficiently we can minimize the environmental impacts of our vehicles.

We systematically test the environmental friendliness of future products. An important tool in this process is the ongoing documentation of the development process. For every vehicle model and every engine variant, we define specific characteristics and target values — for example, for fuel consumption and pollutant emissions. We also use these target values to assess the milestones we pass in the course of product development. To this end we compare the current status of the project with the target values. If necessary, we initiate corrective measures on the basis of this assessment.

How we embed responsibility for more environmentally friendly vehicles in our organization

Our corporate management is responsible for setting our strategic goals, including targets for reducing our CO2 emissions, and for monitoring our progress toward them. The Product Steering Board (PSB) monitors the development of the car fleet’s CO2 emissions in markets where such emissions are regulated. It is also responsible for providing forecasts. In its evaluations, the PSB takes into account the increasing degree of vehicle electrification and the changes that have been made to legal requirements, for example those related to the introduction of the new test procedure. The Board of Management then decides which measures need to be implemented. On the market side of the equation, price and volume control measures can also affect our ability to achieve our targets in the short term. For this reason, these measures are also discussed with the Board of Management within the framework of the regular reporting on the current state of label">label">label">2 fleet compliance" skin="glossary">CO2 fleet compliance.

Responsibility for ensuring compliance with climate protection requirements is split between several units and Board of Management members. The development units of the vehicle divisions are responsible at the vehicle level. For cars and vans, these are the “Drive Systems Product Group” development unit, the product groups of the vehicles, and Mercedes-Benz Vans Development; for trucks and buses, they are the “Global Powertrain & Manufacturing Engineering Trucks” unit and the vehicle divisions. The various directorates of the drivetrain development units also play a special role here. The heads of production are responsible at the level of the production plants, and the Heads of Sales at the Daimler showrooms.

Our CO2 balance applies to the entire life cycles of our products

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Most of our CO2 emissions are generated during the use phase of the vehicles. But greenhouse gas emissions are also generated in other segments of a vehicle’s life cycle, and we take that into account in our overall CO2 balance sheet. We record the key figures we need for life cycle assessments and publish them in line with the basic principles of the .

In line with this leading global life cycle assessment standard, we divide our CO2 emissions into three categories called the Greenhouse Gas Scopes. Scope 1 comprises all the emissions we cause ourselves through the combustion of energy carriers at our production locations, such as the generation of electricity by our own power plants. Scope 2 includes all emissions that arise due to the generation of energy we purchase from external sources, such as electricity. Scope 3 includes all the emissions that are generated before (upstream of) or after (downstream of) our production operations. For example, Scope 3 includes the CO2 emissions that arise in the supply chain (purchased goods and services), as a result of our vehicles’ operation in customers’ hands (the use phase, including the production of fuel and electricity) or in the recycling phase of the vehicles.

We have used these principles to calculate the emissions of the entire life cycle of the Mercedes-Benz car fleet worldwide. For 2020 we calculated an average CO2 value of 49,7 tons per vehicle (see Diagram 9 in comparison with 2019 logistics were included for the first time).

7 | Scope 1, 2 and selected Scope 3 CO2 emissions in tons per vehicle Mercedes-Benz Cars (2020)

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Scope 1, 2 and selected Scope 3 CO2 emissions in tons per vehicle Mercedes-Benz Cars (2020) (Graphic)

* For calculation basis see appendix How we calculate and document our CO2 emissions and (PDF:) Scope 3 emissions Mercedes-Benz Cars
** See life cycle assessment of vehicles
*** See key figures environment
**** Driving emissions of Mercedes-Benz Cars fleet (EU, China, USA and RoW) standardized, mileage: 200,000 km, for data basis see chapter Climate protection: Our CO₂ emissions — in all of our fleets
***** Forecast value

Across all divisions: Our future is electric

We are developing all-electric and electrified model variants for all of our vehicle types — from cars and vans to trucks and buses. Thanks to our modular development approach, we can quickly transfer technologies between our divisions.

Our development focus is on battery-electric mobility for cars and vans, and on all-electric drive systems with batteries or fuel cells for trucks and buses.

That’s why Daimler is also continuing to develop highly efficient combustion engines that can also be powered by . That’s yet another way we can help to further reduce the CO2 emissions of future vehicle generations. However, e-fuels are still very expensive to produce today. In order to further develop them and bring them into circulation, we need suitable regulatory approaches. One important regulation in this area is the of the EU, which sets ambitious quotas for bringing synthetic fuels (including green hydrogen) into circulation. We are actively supporting this regulation through the political representation of our interests.

8 | Alternative drive systems Mercedes-Benz Cars*

 

 

2019

 

2020

 

Worldwide

Hybrid

29,907

1.2%

115,191

5.2%

 

Electric drive

19,622

0.8%

47,672

2.2%

 

Alternative drive systems (total)

49,529

2.0%

162,863

7.4%

 

MBC unit sales (total)

2,456,347

 

2,202,579

 

Europe

Hybrid

16,091

1.7%

104,113

14.1%

 

Electric drive

18,419

1.9%

42,711

5.8%

 

Alternative drive systems (total)

34,510

3.6%

146,824

19.9%

 

MBC unit sales (total)

954,912

 

738,957

 

*

Retail Mercedes-Benz Cars (incl. V- and X-Class

As part of the effort to decarbonize transportation, Daimler Trucks & Buses relies on two complementary technologies: all-electric drive systems that use either batteries or fuel cells. By offering these two options, Daimler Trucks & Buses can optimally meet its customers’ needs. The following rule of thumb applies: The lighter the payload and the shorter the distance, the more suitable a battery-electric truck is for the job. The heavier the payload and the longer the distance, the more a fuel-cell vehicle becomes the better option.

In November 2020 the Volvo Group and Daimler Truck AG signed a binding agreement to establish a joint venture for the development to series maturity of fuel-cell systems, their production, and their marketing. The focus is on utilization in heavy-duty trucks, but the systems will also be offered for other applications. By joining forces, the two companies can reduce their development costs and accelerate the market launch of the fuel-cell systems.

Mercedes-Benz Cars & Vans is pursuing ambitious climate-related goals

As part of our sustainable business strategy, Mercedes-Benz Cars & Vans has set itself the following goals:

  • CO2 neutrality for its new fleet by 2039: This applies to all the stages of automotive value creation — from the supply chain to production, the vehicle use phase, and vehicle disposal and recycling.
  • Plug-in hybrids or all-electric vehicles will account for more than 50 percent of our car and van sales by 2030. This transformation will take place in a number of stages: Between now and 2022, we want to offer our customers a variety of electrified alternatives in every segment, ranging from smarts to transporters. Depending on how circumstances develop, we at Mercedes-Benz Cars want the proportion of all-electric vehicles to increase to up to 25 percent of our total sales by 2025.
  • At Mercedes-Benz AG we also plan to reduce the greenhouse gas emissions of the new vehicle fleet during the vehicle use phase () by more than 40 percent relative to 2018 by 2030. This target has been confirmed by the .

Reaching CO2 neutrality as a team

At Mercedes-Benz AG, an interdisciplinary team consisting of environmental experts, buyers, developers, logistics specialists, production specialists, strategists, and sales experts monitor and manage CO2 emissions in order to reach the goal of having a CO2-neutral new-car fleet by 2039.

The Corporate Environmental Protection unit, for example, calculates the CO2 emissions of all model series and all drive types at Mercedes-Benz Cars and conducts environmental and life cycle assessments for the vehicles. The Mercedes-Benz procurement unit works together with more than 2,000 direct suppliers so that it can also identify potential environmental risks in the supply chain and use targeted measures to minimize them. At the logistics unit, the routes for unavoidable goods transfers have to be optimized and the best mode of transport has to be used for each trip. That’s the only way to reduce the emissions that are generated during goods delivery, sales operations, and shipment to distribution centers. Because most CO2 emissions are generated during the use phase of a vehicle, CO2 strategists are also important members of the team. These experts are responsible for the phase of a vehicle’s life cycle, and through their know-how they help reduce the CO2 emissions generated during driving operation. The working group also addresses the development of additional levers, such as CO2-neutral production and a sustainable charging concept for Mercedes customers. Together, the members of the team are helping to ensure the successful decarbonization of Mercedes-Benz vehicles.

On the road to full compliance with CO2 regulations for fleets

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Europe. Due to their greater relevance, we have for the first time defined the CO2 emissions of our new car fleet in Europe as “the most important” non-financial performance indicator in the reporting year 2020. For more information on how we expect the CO2 consumption of our car fleet in Europe to develop, see the Outlook section of the Annual Report.

As a result of our compliance with the legal regulations, during the reporting year the average CO2 emissions of our total passenger car fleet in Europe (European Union, UK, Norway and Iceland) decreased to an estimated 104 g/km (, including vans that are registered as passenger cars). This means that we achieved the CO2 targets in the European Union (European Union, United Kingdom, Norway, and Iceland) in 2020.

9 | Development of average CO₂ emissions of the Mercedes-Benz passenger car fleet in Europe

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Development of average CO? emissions of the Mercedes-Benz van fleet in Europe (Graphic)

* Including vans registered as M1 vehicles — all other years without vans.
** Projection

Our plans call for the transition from the previous NEDC testing procedure to the new WLTP to take place in 2021. This will require us to adjust our consumption targets, and it will also lead to an increase in certification values. Whereas the CO2 targets for the fleet were based on the NEDC values in 2020, in 2021 they will be based on the WLTP values according to the regulatory requirements. With regard to the value calculated according to the WLTP, we expect that our fleet’s average CO2 emissions in Europe (European Union, Norway, and Iceland) in 2021 will continue to be significantly lower than the figure, also calculated according to the WLTP, which was recorded for the previous year. This development has been favored especially by the increasing proportion of all-electric and plug-in hybrid vehicles in our total car sales.

During the reporting year the average CO2 emissions of our light commercial vehicles (N1, LCV) in Europe (European Union, Norway, and Iceland) decreased to 186.5 g/km (NEDC). This figure was thus lower than the stricter CO2 target value.

The emission values have been calculated according to the new WLTP test procedure since mid-2019. At the beginning of 2021, the previous NEDC target values were converted to conform to the new test procedure and the targets for the fleet were adapted accordingly. We are confident that we will also reach the new CO2 emission targets for our fleet in the future, thanks to the introduction of more fuel-efficient engines and transmissions as well as our electrified models, the eVito and the eSprinter.

10 | Development of average CO₂ emissions of the Mercedes-Benz van fleet in Europe

Development of average CO? emissions of the Mercedes-Benz van fleet in Europe (Graphic)

* Projection

United States. In the United States, fleet values are regulated by two co-regulating standards for limiting greenhouse gases and fuel consumption in vehicle fleets: the and the standards. The GHG fleet figures for the CO2 emissions of Daimler vehicles in the United States have improved over the last few years. For the 2020 model year, these figures are 256 g CO2/mi for the car fleet and 289 g CO2/mi for light commercial vehicles (based on the most recent forecast). Nonetheless, we did not reach our average fleet targets of 196 g CO2/mi for the car fleet and 265 g CO2/mi for light commercial vehicles. However, we were able to close the remaining gap by taking advantage of the flexibility measures specified in the legislation, including the purchase of external credits.

11 | Daimler CAFE values for cars and light commercial vehicles in the United States

Daimler CAFE values for cars and light commercial vehicles in the United States (Graphic)

* Projection

The models of the Mercedes-Benz Sprinter are subject to the GHG regulation for Classes 2b/3. The CO2 targets in these classes depend on the payload, the towing capacity, and the drive type of the vehicles. In the reporting year the CO2 emissions of our vehicles were 487 g CO2/mi, which is lower than the target value of 500 g CO2/mi. We expect our figures to be lower than the target values in the years ahead as well.

China. In China, domestic and imported cars are reported separately and according to fleet consumption values, unlike in Europe and the United States. This means the figures for the imported fleet are relevant for our wholly owned subsidiary Mercedes-Benz China (MBCL). The fuel consumption target was 6.27 l/100 km, and the achieved value was 8.02 l/100 km (preliminary figure for the fleet’s fuel consumption; if the off-cycle technologies are also included, the final fuel consumption figure could be better). External credits will be purchased at short notice in order to close consumption gaps in the fleet’s achievement of the target. We aim to achieve our emission targets in China in the medium term together with our joint venture partner Beijing Benz Automotive (BBAC) by expanding our range of all-electric vehicles and plug-in hybrids.

12 | Fuel consumption of the Daimler car fleet in China

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Fuel consumption of the Daimler car fleet in China (Graphic)

* Preliminary value without off-cycle technologies

The V-Class and Vito models, which are produced by the joint venture Fujian Benz Automotive Co., Ltd. (FBAC), form another domestic fleet. The value achieved was 8.9 l/100 km; the target value was 7.2 l/100 km. At the moment, compensation for the fleet balance can only be achieved by means of a credit transfer. This situation is not likely to change by 2025, because the fleet consists of only a single vehicle type.

Legal limits on the fuel consumption and/or CO2 emissions of car fleets and light commercial vehicle fleets exist today in many other markets as well, although the target values differ from market to market. The relevant countries here include major sales markets for our products — for example Switzerland, Canada, Japan, South Korea, Brazil, Taiwan, India, and Saudi Arabia. We also take these target values into account as we further develop our product range.

Mercedes-EQ: a new brand that signifies progressive luxury

In order to effectively market our growing portfolio of electric vehicles, Mercedes-Benz has created a new progressive sub-brand: Mercedes-EQ. Vehicles from Mercedes-EQ stand out by reason of their pioneering design, intelligent drive technology, and comfortable services.

We’re enhancing the appeal of e-mobility in the luxury segment. With the introduction of the MBUX Hyperscreen, Mercedes-EQ offered an initial insight into the digital interior of the upcoming EQS. This all-electric member of the next S-Class family is the first fully electric Mercedes-Benz to be developed as an e-car from the very start. This opens up new possibilities in areas ranging from battery placement to vehicle design. Mercedes-Benz aims to lead the segment of all-electric luxury sedans with the EQS in the future. Our clearly defined development goal is to greatly expand the range of future batteries by boosting energy density, accelerate the series maturity of future battery technologies and, last but not least, significantly reduce charging times.

The EQS luxury sedan, which will be delivered to customers starting in 2021, marks Mercedes-Benz’ achievement of two significant development goals: a range of more than 700 kilometers (in accordance with the WLTP standard), which is suitable for long-distance travel, and even faster charging by comparison with current models.

The EQA — an electric athlete in a compact format. The EQA (combined electrical consumption: 15.7 kWh/100 km; combined CO2 emissions: 0 g/km)1,2 is the point of entry into the Mercedes-EQ world of all-electric driving. As a close relative of the GLA, it has all of the GLA’s characteristics and combines them with an efficient electric drive system. Smart assistants support the driver in many areas, including accident avoidance, an anticipatory and thus highly efficient operation strategy, and navigation by means of electric intelligence. Customers can use Mercedes me Charge to recharge their vehicles at more than 175,000 public charging points all over Europe, and Mercedes-Benz uses green energy for the subsequent refilling. The EQA 250 will be available in showrooms in Europe as of early 2021.

A premium people carrier — purely battery-electric and variable. The Mercedes-Benz EQV (combined electrical consumption: 26.4–26.3 kWh/100 km; combined CO2 emissions: 0 g/km)1,2 is the first premium people carrier from Mercedes-Benz with a purely battery-electric drive system. The EQV combines the variability of the V-Class with the advantages of a locally emission-free drive system. In addition, the EQV is integrated into an electric mobility ecosystem that combines intelligent navigation with active range management and cloud-based services and apps. The MBUX (Mercedes-Benz User Experience) infotainment system serves as the central control unit. The EQV also sets benchmarks for electric mobility in its class with its range of up to 418 kilometers1,2 and its wide spectrum of applications for the most diverse customer requirements.

Charging the new smart EQ models is faster and easier. The smart brand is being systematically converted to emission-free battery-electric drive systems and is thus returning to its origins. Today the new smart EQ models already offer a combination of progressive design, smart connectivity, and a sustainable and comprehensive concept of urban mobility. These models include the fortwo coupe (combined electrical consumption: 16.0–14.0 kWh/100 km; combined CO2 emissions: 0 g/km)1,2, the fortwo cabrio (combined electrical consumption: 16.3–14.2 kWh/100 km; combined CO2 emissions: 0 g/km)1,2, and the forfour (combined electrical consumption: 16.8–14.6 kWh/100 km; combined CO2 emissions: 0 g/km)1,2. The charging concept makes charging quick and easy: The optional 22 kW with a fast-charging function makes it possible to charge the batteries of the new models at a 22 kW AC charging station from 10 to 80 percent in less than 40 minutes. Thanks to the brand’s cooperation with its charging network partner Plugsurfing, smart customers have access to Europe’s biggest charging network. Public charging stations can be located with the smart EQ control app.

Plug-in hybrids enable emission-free driving without worrying about range. On the road to all-electric mobility, plug-in hybrids are an important bridge technology. In this area Mercedes-Benz offers an efficient package of drive systems that mark an additional step toward CO2-neutral mobility. At the end of 2020 customers could choose between more than 20 model variants. In a plug-in hybrid, an electric drive system and a combustion engine complement each other. This combination offers customers emission-free driving and eliminates range anxiety. Rechargeable lithium-ion batteries ensure a fully electric action radius that is more than enough for most daily drives — an electric range of over 70 kilometers (NEDC) in the compact segment and up to 100 kilometers in the luxury segment. Mercedes-Benz plans to roll out this technology across its entire vehicle range — from the A-Class to the S-Class and from the GLA to the GLE.

The EQ Ready app — ready for electric mobility?

Is an electric vehicle or a plug-in hybrid right for my daily life? By analyzing an individual’s driving behavior, the EQ Ready app supports drivers who are wondering whether it would make sense for them to switch to an electric vehicle. Ever since its introduction three years ago, the app has been used more than 1.6 million times. The updated version of the app, which has been available since 2020, offers new functions such as the seven-day challenge, a virtual simulation of the charging process, and an improved user experience thanks to a new design. It gives users even more functions in even more countries — about 30 worldwide — and enables them to find out, among other things, how comprehensive the charging infrastructure already is in many markets.

The Mercedes me service — a new feature that creates incentives to save fuel. In July 2020 we launched the optional and free-of-charge Mercedes me app service “Individual consumption” in Europe for drivers of our A-Class and C-Class vehicles as well as the GLE and the GLS. Other models will follow. The app enables drivers to share their individual fuel consumption figures and compare them with those posted by drivers of similar vehicles. In the future we plan to offer services such as individual tips for saving fuel depending on driving style. By making individual drivers’ fuel consumption in real operation transparent, we want to usefully complement the statutory data on fuel consumption and offer customized incentives for saving fuel.

For example, deviations from the WLTP cycle may be due to many different factors such as road conditions, load, weather conditions or, in particular, individual driving styles. The initial data show that individual fuel consumption figures can be lower or higher than the WLTP certification figure.

All commercial vans to be available with electric drive

Our plans to equip commercial vans with electric drives — for the “last mile” of goods delivery to the customer’s front door, for example — are also moving forward. There is strong demand for this step from the courier, express, and package services (CEP) sector. Electric vans and urban delivery vans from Mercedes-Benz Vans are already in operation at many CEP service companies. In the years ahead we aim to greatly expand our product range and to offer all commercial van model series with an electric drive model. In addition to the vehicles themselves, Mercedes-Benz Vans also offers a holistic electric mobility ecosystem of supplementary services and consultation for commercial users.

Our portfolio includes electric vehicles — the eVito and the ­eSprinter — that thanks to their equipment and their range are ideally suited to meet the requirements of the CEP sector. Among other things, Mercedes-Benz Vans concluded a contract to deliver more than 1,800 eVito and eSprinter vans with battery-electric drive systems during the year under review.

The eVito offers a variety of all-electric use options. The all-electric eVito comes in two versions — as a panel van for goods transport and a tourer model with up to nine seats for transporting passengers. The panel van offers a range of 150 to 184 kilometers1,2 (NEDC) and an onboard charger with an output of 7.4 kWh. The tourer has a range of 421 kilometers1,2, and the available battery capacity of 90 kWh can be optionally charged from 10 to 80 percent of capacity at up to 110 kW in about 45 minutes using a fast-charging station3,4. The recuperation level “DAUTO” in the eVito Tourer is a new feature that enables an especially efficient and comfortable mode of operation. In line with the maxim “Drive with foresight and save energy,” the onboard system connects the information provided by the safety assistants and uses it to adapt the degree of to the driving situation in real time.

The eSprinter panel van offers two battery configurations to choose from. The eSprinter, a 3.5-ton panel van with a cargo volume of up to 11 cubic meters, was introduced on the market at the end of 2019. It is available in two battery configurations — either for a wider range (range up to 168 kilometers1,2/payload 891 kilograms) or for a larger cargo volume (range of 120 kilometers1,2/payload 1,045 kilograms). The eSprinter has a direct-current fast-charging function. Under optimal conditions, it can charge the battery, which has a charging power of up to 80 kW, from 10 to 80 percent within about 25 minutes at DC charging stations.3,4 Like the eVito Tourer, the eSprinter also has a variety of and driving modes.

We give our commercial customers advice regarding electric mobility. We support our commercial customers with comprehensive and transparent advice in the area of electric mobility. One example of this is the eVan Ready app, which enables commercial customers to check whether they could also drive their normal routes with one of our electric vans. They can also use the eCost Calculator to find out whether an electric Mercedes-Benz van would be a good option for them from a financial standpoint. Together with our customers, we analyze the charging infrastructure at their respective locations. We also show them what measures are necessary for the efficient operation of individual vehicles and of large or small fleets.

Daimler Trucks & Buses is pursuing ambitious climate targets

At Daimler Trucks & Buses, we have set ourselves the following targets on the way to CO2-neutral road transportation:

  • By 2022 we plan to have a vehicle portfolio comprising series-produced vehicles with battery-electric drive systems in the main sales regions Europe, the United States, and Japan. In the second half of the decade, we plan to augment our vehicle portfolio with hydrogen-powered series-production fuel-cell vehicles.
  • By 2039 we aim to change our product range by offering only new vehicles that are locally CO2-neutral in driving operation in the triad markets Europe, Japan, and North America.
  • By 2050 our ultimate goal is CO2-neutral transport on the road.

EU CO2-reduction targets defined

The EU has stipulated a 15 percent reduction of the CO2 emissions of new heavy-duty commercial vehicles (>16 t) by 2025 and a 30 percent reduction by 2030 (relative to 2019/2020). To this end, the European Commission worked with automakers, scientists, and other experts to develop a standardized simulation program known as (Vehicle Energy Consumption Calculation Tool) for all of Europe. VECTO also includes the associated procedures for testing and measuring CO2 emissions and fuel consumption. The relevant data will be collected throughout Europe and will be made transparent. We have defined a clear technology roadmap that will enable us to meet the EU’s requirements.

Heavy-duty commercial vehicles: Battery and fuel-cell drive systems complement each other perfectly. Daimler Truck AG committed itself early on to systematically develop electric mobility in connection with heavy-duty trucks. From today’s perspective, genuinely local CO2-neutral transportation can only work with electric drive systems that are powered by batteries or by the transformation of hydrogen on board the vehicle. Daimler Truck AG is developing and testing several solutions of this kind.

The concept vehicle GenH2 Truck is powered with liquid hydrogen for a long range. The Mercedes-Benz concept vehicle GenH2 Truck presents, for the first time ever, technologies that can enable heavy-duty fuel cell series-production trucks to make long-haul trips of up to 1,000 kilometers with a single tankful of hydrogen in the future. Series production of the GenH2 Truck is scheduled to start in the second half of this decade. Thanks to the use of liquid hydrogen, which has a significantly higher energy density than gaseous hydrogen, the vehicle’s performance are intended to be comparable to that of a corresponding diesel-powered truck — but without any locally generated CO2 emissions.

A battery-electric long-haul truck that can drive up to 500 kilometers without charging the battery. The Mercedes-Benz eActros LongHaul offers a vision of an all-electric battery-powered long-haul truck. It is designed to make regular runs in energy-efficient operation along plannable routes. Plans call for the eActros LongHaul to reach series maturity in 2024. When the battery is fully charged, the truck has a range of approximately 500 kilometers.

The eActros is close to series maturity. The eActros, the Mercedes-Benz electric truck for heavy-duty urban distribution haulage, has been on the road for quite some time. Daimler Truck customers have been test-driving this vehicle in Germany and other European countries in intensive real-world operations as part of the eActros “innovation fleet.” The first eActros trucks were handed over to customers in 2018. We have used the results of the customers’ practical tests to further refine this vehicle, which is due to go into series production in 2021 with a range of significantly more than 200 kilometers. Daimler Trucks will embed the vehicle in a holistic ecosystem that also includes consulting services for answering customers’ questions about e-mobility. These services include analyzing routes, reviewing possible subsidies, supporting operational fleet integration, and finding the right charging infrastructure solutions.

The Mercedes-Benz low-floor eEconic truck, which is based on the eActros, will also hit the road in the near future. Series production of the truck is scheduled to begin in 2022. The eEconic will primarily be used in urban areas as a waste collection vehicle for waste disposal facilities. This application area is very well suited for the use of battery-electric trucks because of its comparatively short and fixed routes up to a length of about 100 kilometers as well as the high proportion of stop-and-go operation.

The Daimler Trucks consulting approach addresses the new complexity of drive systems. In the years ahead, truck customers will face the challenge of choosing the drive technology that fits them best from a growing spectrum of possible solutions — depending on their particular sector, segment, and concrete application. The consultants from Daimler Trucks support customers’ entry into e-mobility, work with them to develop solutions, and offer a suitable range of products. When these experts offer advice about switching to fleets of electric trucks, their basic approach is to treat two aspects — vehicle range and the charging infrastructure — as a unity. They also take a detailed look at ways to optimize the charging infrastructure and the charging processes themselves.

eCascadia trucks are undergoing practical testing. The medium-duty Freightliner eM2 and the heavy-duty Freightliner eCascadia are also currently undergoing intense practical testing by customers in the United States. Series production of these two trucks is scheduled to start in mid-2022.

The eCanter: A small batch of these trucks is operating emission-free in many major cities. The FUSO eCanter light truck, which is our first all-electric truck to be produced in a small batch, has been on the market and in customers’ hands since 2017. More than 200 eCanter trucks are already being used by customers in cities all over the world including New York, Tokyo, Berlin, London, Amsterdam, Paris, Copenhagen, Dublin, and Lisbon.

We’re calling for state support for CO2-neutral trucks. In spite of all the efforts being made by the manufacturers, the purchase prices and total cost of ownership of trucks with electric drives are expected to be higher than those of comparable diesel-powered vehicles even in 2040. As a result, government intervention will be necessary to make locally CO2-neutral trucks competitive — in other words, to offset their cost-related disadvantages. Only if advantageous conditions prevail will fleet operators consider it worthwhile to invest in CO2-neutral trucks. What we especially need is a Europe-wide restructuring of the highway toll system with a sliding scale for different CO2 values that would charge CO2-neutral vehicles significantly lower tolls. Also needed is a targeted support program for locally CO2-free road transport for goods, a comprehensive charging and hydrogen infrastructure, and uniform standards for hydrogen transportation and hydrogen refueling.

Continued improvement of the CO2 balance sheet for buses

We had set ourselves the target of a 20 percent reduction in the fuel consumption of our coaches and city buses over 18 tons for the period 2005 to 2020. We have achieved 90 percent of this target for coaches and 100 percent of the target for city buses. The introduction of the Mercedes-Benz Citaro hybrid also played a major role in the latter achievement. This shows that the electrification of our fleet is an important lever for reducing fuel consumption and CO2 emissions. Accordingly, we are now focusing our development work at Daimler Buses on electric drive systems. The Daimler Buses Competence Center for Electric Mobility has operated in Mannheim for many years. We are also taking a holistic approach to the development of new technologies. This includes comprehensive consultancy services: Through our eMobility consulting we make it easy for customers to switch to electric city buses, and we also offer the operators a wide range of services.

New technologies make emission-free regular bus operation more practical. The all-electric Mercedes-Benz eCitaro offers cities and transport companies the possibility of converting their fleets to locally emission-free operation. The battery-powered eCitaro is series-produced at the Mannheim location. It is already in regular operation in many European cities. The number of buses delivered so far is now in the three-digit range. Depending on its intended use, the eCitaro can be ordered with as many as 12 battery packs. The bus has a range of around 170 kilometers in typical city driving conditions.

Range figures for all-electric city buses are often difficult to compare because reference values are missing and the figures are often calculated under ideal conditions. We can present data that is more practice-related by orienting ourselves according to the recognized street test cycle. In our calculations we also include the consumption of auxiliary units such as the air conditioning and heating systems in order to create an overview for customers that is as realistic as possible.

Daimler Truck AG is systematically continuing the development of the eCitaro’s technology in order to make it increasingly practical for regular-service local public transport. Starting in 2020, customers have also been able to buy the eCitaro as an articulated bus (eCitaro G) with seating for 145 passengers. In addition, this electric city bus has been available with solid-state batteries (lithium polymer batteries) since 2020. Since the beginning of 2021, an eCitaro powered by next-generation lithium-ion batteries that further increase its range has also been on the market. Starting in 2022 the plans also call for a battery-powered model with a range extender — a hydrogen-based fuel cell that provides the high-voltage battery with power and increases the range of the bus. Through these measures we will be able to cover almost all of the application areas and regular-service routes in urban transportation.

Our eMobility Consulting team offers consulting and services from a single source. Our eMobility Consulting team helps local public transportation operators make the transition to electric bus fleets. It provides advice regarding the length of bus routes, passenger numbers, energy requirements, the calculation of bus ranges, and charging management, among other aspects. In addition, Daimler Buses offers a tailored electric mobility service package that includes customized solutions and on-site services at customers’ maintenance and repair shops under the ­OMNIplus brand.

We are trying out new charging technologies at our central charging station for the eCitaro. Daimler Buses has established a central charging station for the all-electric eCitaro at the bus production plant in Mannheim. Its purpose is to charge the eCitaro during the production process and before it is delivered to customers. It also gives us an opportunity to test new charging technologies such as charging management, new communication protocols, and new hardware for plug-in charging and roof-mounted current collectors.

Diverse solutions for charging batteries and filling hydrogen tanks ease the transition to alternative drive systems

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From today’s perspective, the future of mobility is electric — and it will be fueled by electricity and hydrogen. Daimler is continuously working to make refueling with electricity and hydrogen more convenient, faster, and more accessible — at home, at the workplace, and in public spaces.

Mercedes me Charge & green charging — greater transparency for customers

Thanks to Mercedes me Charge, customers driving all battery-electric Mercedes EQ models and all plug-in hybrid model variants have access to almost all the available public charging stations, for example in cities and at shopping centers, hotels, and highway service areas. The Mercedes me app shows drivers ahead of time the exact position, current availability, and price at the charging station they have selected. This information is also accessible on the navigation system inside the vehicle, and it is used to calculate a route for all-electric vehicles, including stops for charging. At the charging station, the driver is authenticated via the display in the MBUX multimedia system, the Mercedes me app or the Mercedes me Charge charging card. Everything else is taken care of completely automatically by Mercedes me Charge.

In the life cycle of an electric vehicle, power from renewable energy sources is a significant factor in the effort to avoid CO2 emissions. This is because about 50 percent of a battery electric-powered vehicle’s CO2 footprint is generated during the use phase — if the charging involves the EU-wide power mix, which still contains a large proportion of electricity from fossil fuels. In order to give its customers the option of recharging their vehicles with green energy at the charging points of the Mercedes me Charge service in the future, Mercedes-Benz will begin the market launch of its network in 2021.

Drivers often do not know whether the energy provided by a public charging station is green or comes from non-renewable sources, because this choice is the responsibility of the various charging station operators. To counter this lack of transparency and promote the use of electricity from renewable energy sources, Mercedes-Benz is the first automaker to demand this degree of proof of origin as part of the “greening” of the charging process. This requirement ensures that when electric vehicles are charged, an equivalent amount of electricity from renewable sources is fed into the power grid. In other words, the amount of energy that is charged is balanced out by green electricity after the actual charging process has been completed. In order to produce additional environmental benefits, the proofs of origin have a number of additional features that are prescribed in the form of a green electricity label and aim to promote the creation of more renewable energy facilities.

Mercedes me Charge thus enables Mercedes-Benz to offer its customers the option of charging their vehicles at public charging stations throughout Europe in the certainty that the use of energy from renewable sources is assured.

A fast-charging network brings green energy to Europe’s highways

In our joint venture IONITY, we are working together with several other automakers to establish a powerful fast-charging network for electric vehicles in Europe. IONITY aims to safeguard individual electric mobility for long-distance travel by means of a standardized charging network along the most important pan-European highways. Thanks to short charging times, drivers will be able to complete even long journeys in a short amount of time. This will enable electric mobility to be established sooner on the market.

More than 300 IONITY fast-charging stations were in operation at the beginning of 2021, and many more are under construction. Each of these “charging parks” has several charging stations. The charging parks offer drivers access to many charging points, all of which are operated with 100 percent green electricity. The charging network uses the European Combined Charging System (CCS) standard, whose charging capacity of up to 350 kW per charging point enables correspondingly designed vehicles to charge their batteries much faster than was previously possible. All of the IONITY charging points are integrated into the Mercedes me Charge system.

charge@home — simply charging at home

The new Mercedes-Benz Wallbox Home with a charging capacity of up to 22 kW and permanently attached charging cables enables users to charge their vehicles quickly for personal or private purposes using alternating current at home or at their workplace. This enables users to charge their battery-electric and plug-in hybrid vehicles convieniently. The charging capacity of 22 kW makes charging a vehicle much faster and more reliable than using a household socket would be.

In addition, the customers in the various markets can use smart wallboxes provided by national partners. Moreover, we offer our customers a comprehensive installation service for our range of wallboxes. This service includes on-site checks regarding the installation conditions, in-depth advice, and the installation itself, of course.

How we are promoting a charging infrastructure for our employees

In order to make electric mobility more appealing to our employees, we are continually expanding the charging infrastructure at our own locations. We have set up more than 3,500 charging points since 2013. At the end of 2020, our employees at Daimler locations in more than 50 German cities could take advantage of comprehensive charging solutions. In the charge@Daimler project, we are consolidating our efforts to establish an intelligent charging infrastructure at all Daimler locations in Germany. The project includes equipping parking lots, parking garages, and customer centers, as well as electrifying the in-house development test rigs and testing facilities. Within the company we have also ensured that our charging stations are provided with 100 percent certified green electricity. To make sure this is the case, we use certificates of origin that confirm climate-neutral power generation through the use of renewable energy sources.

We are forging ahead with the expansion of a hydrogen refueling station network

The network of hydrogen refueling stations is also growing. In the joint venture H2 MOBILITY Deutschland, we have been working together with Air Liquide, Linde, OMV, Shell, and Total since 2015 to expand the hydrogen refueling station infrastructure throughout Germany. At the end of 2020 there were 88 publicly accessible hydrogen refueling stations dispensing at a pressure of 700 bar in Germany; seven stations are under construction, and twelve more are in the planning or approval phase. This means that six new stations were added to the H2 MOBILITY network in the reporting year. The partners’ long-term goal is to establish a network consisting of as many as 400 hydrogen refueling stations. A special focus will be on the expansion of an infrastructure for heavy-duty truck applications. We are conducting similar infrastructure projects together with additional partners in Europe, the United States, China, and Japan.

At the beginning of December 2020 we signed an agreement with Linde AG concerning the joint development of the next generation of liquid hydrogen refueling technology for fuel cell-powered trucks. Through this partnership we aim to make refueling with hydrogen as simple and practicable as possible.

At the end of the reporting year we also joined forces with the Volvo Group, IVECO, OMV, and Shell in the H2 Accelerate (H2A) initiative. The aim of this initiative is to continue expanding the series production of hydrogen-powered trucks and a Europe-wide CO2-free hydrogen refueling network.

How we assess the effectiveness of our management approach

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In our management approach to climate protection, we are pursuing the goals of our “Ambition 2039” in order to live up to our responsibility as signatories to the Paris Agreement on climate protection. We have defined the measures we need to take in order to reach these goals. We use internal and external performance reviews to evaluate how well we are implementing these measures. Internally, the specialist units check their progress several times a year. Externally, we commission an auditing company to audit selected goals and implementation measures. In addition, Mercedes-Benz AG has defined a specific CO2 reduction pathway in line with the standards of the Science Based Targets Initiative (SBTI). The SBTI has confirmed that this pathway conforms to the Paris Agreement on climate protection.

Furthermore, we conduct dialogs regarding climate protection and we use the knowledge gained to review our management approach and adjust it as needed. For example, we hold in-depth discussions with environmental institutes and NGOs during our annual “Daimler Sustainability Dialogue”. We also conduct talks on the subject of climate protection with our Board of Management throughout the year. In addition, the feedback we continually receive from the government, the public, and our other stakeholders lets us know how the sustainability goals we have set for ourselves are being perceived and evaluated.

For many years now, reaching the CO2 targets we have set for our fleets has been a criterion for determining the remuneration of our Board of Management. During the reporting year, we continued to differentiate this incentive system and expanded it to cover the entire senior management structure, from the department heads to the very top. We expect this process to motivate the entire Group even more strongly to reach the sustainability goals we have set for ourselves.

1 Electricity consumption and range were calculated on the basis of Commission Regulation (EC) No. 692/2008. Electricity consumption and range depend on the vehicle configuration.

2 The actual range is also dependent on individual driving style, road and traffic conditions, outside temperature, use of air conditioning/heating systems etc. and may therefore differ.

3 Minimal charging time from 10 to 80 percent under optimal conditions at DC charging stations with a supply voltage of 400 volts and a current of 300 amperes; the charging time can vary depending on a number of factors, including the ambient and battery temperatures and the use of additional auxiliary consumers such as the heating.

4 Maximum charging capacity at DC charging stations with a supply voltage of 400 volts and a current of 300 amperes; the maximum charging capacity depends on a number of factors, including the ambient and battery temperatures and the battery’s state of charge when charging begins.

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: Bernd Pischetsrieder

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

Green bonds

Green bonds are securities with a fixed interest rate. They are used to raise capital for sustainable projects such as for renewable sources of energy and sustainable mobility solutions.

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WLTP

The Worldwide Harmonized Light Vehicles Test Procedure (WLTP) is an international measurement technique for determining how much fuel a vehicle consumes and whether its emissions stay within the prescribed limits. The WLTP replaced the former measurement procedure (NEDC) on September 1, 2017.

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Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol (or GHG Protocol for short) is currently the most commonly used series of accounting standards for greenhouse gas emissions.

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E-fuels

E-fuels are synthetic fuels that are produced by means of electricity from water and carbon dioxide (CO2).

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Renewable Energy Directive

The EU passed the Renewable Energy Directive in 2009 in order to promote the use of energy from renewable sources. This directive, which was most recently amended in 2018, aims to increase the proportion of renewable energy in the European electricity mix to at least 32 percent by 2030.

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Well to wheel (WtW)

A well-to-wheel assessment takes into account not only driving operation (as is the case with a tank-to-wheel assessment) but also the production of the energy carrier, such as electricity or gasoline.

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Science Based Targets Initiative

The Science Based Targets Initiative (SBTI) is a joint initiative of the CDP, the UN Global Compact, the World Resources Institute, and the World Wildlife Fund (WWF). It aims to encourage companies to set targets for reducing greenhouse gas emissions in line with the level of decarbonization that scientists are calling for in order to limit global warming to less than 1.5° C/2° C compared to preindustrial temperatures.

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Tank-to-wheel (TtW)

Unlike the more comprehensive well-to-wheel assessment, tank-to-wheel assessments take into account the chain of cause and effect from the time energy (e.g. gasoline or electricity) is put into a vehicle until it is converted into kinetic energy during driving.

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NEDC

The New European Driving Cycle (NEDC) is a legally prescribed testing process for measuring the fuel consumption and emissions of vehicles. This process was replaced by the WLTP test procedure as of September 1, 2017.

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Greenhouse Gas Protocol (GHG Protocol)

The Greenhouse Gas Protocol (or GHG Protocol for short) is currently the most commonly used series of accounting standards for greenhouse gas emissions.

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Corporate Average Fuel Economy (CAFE) standards

Corporate Average Fuel Economy (CAFE) refers to a legally stipulated restriction on the average fuel consumption of a vehicle fleet in the United States. Automakers have to achieve the CAFE standards for their fleets of cars and light trucks in order to be able to sell vehicles in the United States. The limits are recalculated each year.

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Onboard charger

Onboard chargers are charging devices that are permanently installed in electrically powered vehicles in order to charge the battery.

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Recuperation/degree of recuperation

Recuperation is the recovery of electrical energy, e.g. during braking, that would otherwise be lost as frictional heat. The degree of recuperation expresses the ratio of recovered energy to employed energy in percent.

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Recuperation/degree of recuperation

Recuperation is the recovery of electrical energy, e.g. during braking, that would otherwise be lost as frictional heat. The degree of recuperation expresses the ratio of recovered energy to employed energy in percent.

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VECTO

The VECTO (Vehicle Energy Consumption Calculation Tool) is a new simulation tool that was developed by the European Commission for determining the CO2 emissions and fuel consumption of heavy-duty commercial vehicles (trucks, buses, and touring coaches) with a GVW of over 3.5 metric tons.

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SORT cycles

SORT cycles are standardized tests for city buses. These tests were initiated by the UITP (International Association of Public Transport). They aim to make the vehicles’ fuel consumption values comparable.

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Green charging

Green charging refers to the charging of electric vehicles with green electricity.

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