By the numbers: 

- 70%: how much Scope 2 emissions will be reduced by 2030

- 84%: the percentage of suppliers based on the annual purchasing volume committed to providing Mercedes-Benz with net carbon neutral materials and components by 2039
 

Even ambitious companies struggle with Scope 3 emissions caused by suppliers, partners, and vendors in their value chain. Mercedes-Benz is on track to achieve its target CO₂ reduction of 80% and increase its renewable energy share to 70% (cars) and 80% (vans) at its own production sites by 2030. Sourcing the materials its vehicles depend on including steel, aluminum, and batteries, is another challenge entirely. Mercedes-Benz couldn’t just deploy existing technology to tackle the problem. Instead, the company partnered with suppliers to innovate the carbon-intensive production of those vehicle components.

Enter H2 Green Steel. After investing in the startup in 2021, Mercedes will soon source 50,000 tons a year of nearly emission-free steel from the company. H2 Green Steel’s approach fully integrates steel production that is virtually emissions-free thanks to hydrogen and electricity. Mercedes-Benz similarly approached its aluminum supply in 2022, partnering with Hydro, which makes aluminum with low-carbon emissions for its cars’ exteriors. 

Now Mercedes-Benz is asking its 2,000 vendors to sign “Ambition Letters” committing to the reduction of greenhouse gas emissions and socially responsible extraction of raw materials. Suppliers representing almost 84% of Mercedes-Benz's annual purchasing volume have already signed the letter, a milestone illustrating just how much one company’s commitment can change an industry.