Mercedes Benz Group's Supplier Cost Exposure Profile
(Based on verified public disclosures. Not reviewed or endorsed by Mercedes Benz Group)
Mercedes-Benz Group operates a global automotive supply chain with significant exposure to energy- and material-intensive inputs. Public disclosures show that the majority of Mercedes-Benz Group supply chain emissions, and associated cost exposure, sit in purchased materials, components, and inbound logistics, rather than direct manufacturing.
From a Mercedes-Benz Group Scope 3 emissions perspective, supplier activity is the dominant driver of both emissions and cost risk.
For procurement and finance teams, this means:
• supplier pricing is strongly influenced by material and energy costs
• Mercedes-Benz Group supplier emissions risk is embedded upstream
• cost volatility is driven outside the factory gate
• sourcing geography and material choice directly affect Mercedes-Benz Group upstream cost risk
This profile summarises where supplier-driven cost and emissions exposure concentrates across Mercedes-Benz Group Scope 3 emissions suppliers.
In 2024, Mercedes-Benz Group reported total greenhouse gas emissions of 129.6million tonnes CO₂e(market-based) across Scopes 1, 2, and 3.
Scope 1 emissions totaled 0.6 million tCO₂e, Scope 2 emissions 0.1million tCO₂e,and Scope 3 emissions 128.9 million tCO₂e, representing more than 99% of total emissions.
Scope 3 emissions were driven primarily by:
• use of sold products: 97.0 million tCO₂e
• purchased goods and services: 21.9 million tCO₂e
• upstream transportation and distribution: 2.3 million tCO₂eEmissionsintensity was reported at 890 tCO₂e per € million of net revenue.
Mercedes-Benz Group’s challenge lies in the combination of premium vehicle positioning and material-intensive product design. High use of aluminium, advanced electronics, and battery-intensive architectures increases exposure to Mercedes-Benz Group supplier emissions risk and carbon-driven cost premiums.
At the same time, Mercedes-Benz Group sources these inputs across regions with explicit carbon pricing, making Mercedes-Benz Group supplier carbon pricing exposure harder to mitigate through simple supplier substitution. This creates a structural link between Scope 3 decarbonisation expectations and Mercedes-Benz Group supplier cost exposure, particularly for materials subject to EU ETS and future trade-linked mechanisms.
Mercedes-BenzGroup's upstream cost exposure is concentrated in a small number of material-intensive inputs sourced across regulated regions. Supplier selection, material substitution, and regional sourcing strategy are therefore critical levers for managing Mercedes-Benz Group Scope 3 cost exposure and long-term margin resilience.
Mercedes-Benz Group reports that Scope 3 purchased goods and services represent the largest share of upstream emissions, driven primarily by materials and components used in vehicle production. This makes purchased goods the core source of Mercedes-Benz Group Scope 3 cost exposure.
High-impact inputs include steel, aluminium, battery cells, and electronics, which dominate both emissions intensity and Mercedes-Benz Group supplier cost exposure.
This is the category where:
• carbon price pass-through
• low-carbon material premiums
• supplier transition investments
are most likely to surface in unit pricing over time, directly increasing Mercedes-BenzGroup supplier carbon cost risk.
While smaller than materials, this category contributes to Mercedes-Benz Group upstream cost risk through:
• fuel price volatility
• freight decarbonisation requirements
• shipping and aviation cost increases
which can affect landed cost and sourcing flexibility.
Battery's ourcing is concentrated in regions with tightening regulation, increasing Mercedes-Benz Group carbon pricing impact on suppliers and reinforcing supplier-levelcost pass-through.
Mercedes-Benz Group has implemented multi-tier transparency across its battery supply chain, covering raw materials such as:
• lithium
• cobalt
• nickel
• graphite
The company reports full traceability of cobalt used in battery cells and increasing traceability across other battery materials.
Carbon costs are increasingly embedded in supplier pricing, elevating Mercedes-Benz Group EU ETS supplier risk even when carbon is not explicitly itemised.
Mercedes-Benz Group's supplier footprint is concentrated in regions with active carbon pricing, creating clear Mercedes-Benz Group ETS exposure.
Key regimes include:
• EU ETS – affecting steel, aluminium, and energy-intensive manufacturing
• China ETS – impacting electricity-intensive battery and component production
• Full traceability of cobalt in battery supply chains
• Supplier sustainability assessments embedded in sourcing decisions
• Closed-loop aluminium initiatives across European operations
• Public disclosure of material-specific sourcing strategies
Higher transparency reduces surprise risk but accelerates how Mercedes-Benz Group supplier sustainability requirements translate into supplier pricing.
Mercedes-Benz Group has set group-wide targets that explicitly shape Mercedes-Benz Groupprocurement carbon targets and supplier expectations:
• Net-zerocarbon by 2039 (Scopes 1, 2, and 3)
• –50% reduction in Scope 3 emissions by 2030 (vs. 2018 baseline)
• Carbon-neutral new vehicle fleet by 2039
These targets reinforce expectations that suppliers reduce emissions intensity, directly influencing Mercedes-Benz Group supplier emissions risk and pricing structures.