Daimler is setting the course for climate-friendly production in Germany and Europe. We have set two targets for our European plants and one global target:
- Reduction of absolute CO2 emissions at our European factories by 20% by 2020 as compared to 1990.
- Reduction of speciﬁc CO2 emissions at our European factories by 66% by 2020 as compared to 1990.
- Reduction of speciﬁc CO2 emissions (per vehicle) at our production facilities worldwide by 40% by 2020 as compared to 2007.
Mercedes-Benz Cars is setting the course for green production in Germany and Europe. Plans call for all manufacturing facilities in Germany to be supplied with CO2-neutral energy by 2022.
This proposal is designed to make our production operations even more sustainable. We will also obtain our electrical energy exclusively from renewable sources in the future. Our own production of electricity and other forms of energy will be made CO2-neutral through the application of high-quality CO2 compensation measures. When we plan new plants in Europe, we now make sure from the very beginning that they will have a CO2-neutral energy supply.
Plans also call for all German passenger car production facilities to be 100% CO2-neutral by 2022.
On the road to CO2-neutral production. The preparations for the exclusive use of green electricity for a climate-friendly production in Europe are already well advanced. Our vehicle and powertrain factories in Bremen, Rastatt, Sindelﬁngen, Berlin, Hamburg, Kamenz, Kölleda and Stuttgart Untertürkheim buy electricity or operate their own power plants. In the future, 100 percent of purchased electricity is to come from veriﬁed renewable sources such as wind and water power. This corresponds to about three-quarters of the total electricity requirements of our German plants. The remainder is generated in our own highly eﬃcient gas-ﬁred combined heat and power plants. We intend to oﬀset the resulting CO2 emissions through qualiﬁed compensation projects. This also applies to all other energy purchases by the plants, such as natural gas for heating buildings or fuel for transport within the plant grounds.
Plans call for new factories in Germany and Europa to utilize a CO2-neutral energy supply from the beginning.
- The smart plant in Hambach, France, already covers all of its elec tricity requirements with energy from renewable sources.
- In Kecskemét, Hungary, we are building a second highly eﬃcient CO2-neutral production plant.
- Our Factory 56 is now being built at our Sindelﬁngen plant. In accordance with the slogan “digital, ﬂexible, green,” Factory 56 will set standards in the global automotive industry. Its production hall will use renewable energy and signiﬁcantly reduce water consumption and waste, and the photovoltaic system on the roof of the hall alone will supply approximately 5,000 megawatt-hours of power each year — energy that therefore will not need to be generated in a conventional manner. All in all, the CO2 emissions at Factory 56 will be around 75 percent lower than the emissions that result from S-Class production in Sindelﬁngen today. The factory hall’s translucent design will also make for a pleasant work environment, and during the summer it will be possible to bring the interior temperature down to a level up to seven degrees Celsius lower than the outside temperature.
- A new CO2-neutral engine plant is being built in Jawor, Poland. The facility is scheduled to go into operation in 2019. The plant will be supplied with environmentally friendly energy from the Taczalin wind farm, which is located around ten kilometers away. The wind farm’s 22 wind turbines, which have been operating since the end of 2013, have a combined installed output of 45.1 megawatts. The VSB Group developed and now operates the wind farm, and the long-term electricity supply contract the production plant signed with that company is the ﬁrst such contract between an industrial company and the wind power sector in Poland. With this contract, Daimler as a consumer of electricity has safeguarded a green electricity supply for the location over the long term, while the power supply company is ensured a permanent stable source of income.
- Daimler is also set to become the ﬁrst major industrial customer to obtain electricity from German wind power facilities whose subsidies in accordance with Germany’s Renewable Energy Act (EEG) are due to expire after 2020. As a result, we will be the ﬁrst major industrial company in Germany to ensure the economical operation of existing windmills, which can therefore continue to contribute to achieving the climate goals set by Germany. The six wind farms that will supply the electricity are equipped with 31 turbines that have an installed output of 46 MW and generate approximately 74 GWh of power per year. After the associated agreement goes into eﬀect, the green power produced by the wind farm will be fed into the grid and simultane ously drawn from the grid by Mercedes-Benz plants.
CO2 emissions produced by delivery traﬃc. The incoming and outgoing delivery traﬃc at our plants as well as the distances our employees travel for work and business also aﬀect our environmental performance through emissions, noise and resource utilization. We seek to eﬀectively reduce the environmental impact of these transports through the use of an eﬃcient logistics system, rail transportation and inland shipping.
Our global transport logistics operations today involve more than 75 production facilities in 30 countries, as well as approximately 8,500 dealerships worldwide. We transported around 3.3 million vehicles worldwide in 2018. In addition, almost 5.4 million tons of production materials were transported in Europe in the ﬁrst half of 2018 alone. Global transport volume amounted to around 440,000 standard containers of sea freight and about 82,000 tons of air freight in 2018.
We are working hard to optimize our logistics network in order to reduce the associated CO2 emissions. Our main goal is to optimally connect transportation hubs with one another so as to reduce the distances traveled and utilize capacity more eﬃciently. Innovative transportation concepts and new transport systems also play a major role here.
We select logistics concepts not only on the basis of their costs, duration and transport quality, but also according to their CO2 emissions. When selecting providers of logistics services, we also take sustainability criteria into account — everything from environmental certiﬁcates and the use of environmentally compatible equipment to the utilization of low-emission trucks that meet the latest Euro emissions standards.
- The Med-Port concept was successfully implemented in two stages and is now part of normal operations. The implementation of RoRo shipments via the port city of Koper on the Adriatic Sea rather than via North Sea ports has shortened the length of ship transports from Europe to the Far East by around 8,000 km. Given an annual volume of approximately 140,000 units, this shipping change has reduced CO2 emissions by nearly 50,000 tons.
- As part of the RailLink2Med project, a large portion of deliveries to Italy and Spain were switched from trucks to trains as of February 2018. The transition was carried out gradually on the highest-volume routes in the supply network and has now eliminated the use of 25,000 vehicles bound for Italy and around 40,000 vehicles for transports to Spain.
- The project for introducing Longer Heavier Vehicles (LHVs) was expanded in 2018 and is now part of normal operations. This has led to CO2 savings amounting to approximately 1,000 tons per year.
How we calculate our CO2 emissions
Introduction and certiﬁcation of ISO 50001 energy management systems worldwide. Since 2012, we have introduced energy management systems certiﬁed in accordance with the DIN EN ISO 50001 standard at our German production locations. These systems have helped us achieve continuous improvements with regard to energy consumption, energy eﬃciency and transparency. Our plan now is to implement these successes around the world. Several locations abroad, including our site in the Detroit suburb of Redford, as well as our plants in Vitoria, Brixworth, East London and Kecskemét, have already been certiﬁed in accordance with DIN EN ISO 50001 and are thus contributing to the sustainable optimization of energy consumption and eﬃciency.
Other production locations will follow in 2019. The measures to be taken here include the establishment of an energy management organization with energy management oﬃcers and an energy team. Extensive measurements will be made and analyzed in order to isolate key sources of energy consumption. This will enable us to identify and exploit savings potential in production and infrastructure. Among other things, this process will result in the replacement of old lighting systems with stateof-the-art LED technology and optimization of the management of existing ventilation systems. The use of eﬃcient motors and control systems is consistently taken into account in the design of new facilities and the development of modernization measures for existing facilities. In addition, small-scale measures such as the inspection of existing facilities and a comparison with the actual energy requirements mean it is possible to reduce energy consumption and thus costs.
The use of such an energy management system also facilitates the greater incorporation of energy considerations into the Group’s overall strategy. Over the long term, the reduction of energy consumption and the increase in energy eﬃciency conserve resources and lower emissions at our plants. In addition, the systematic analysis leads to a continuous improvement of our energy-related performance and thus makes an important contribution to the achievement of the Group’s sustainability targets.
Participation in European emissions trading.
Industrial facilities that produce CO2 emissions as a result of the combustion of fossil fuels (oxidation) and whose approved thermal output exceeds 20 MW are required by law to participate in the EU Emission Trading System (EU ETS). The operators of such facilities are required to calculate on an annual basis the CO2 emissions they produce, report the ﬁgures to the responsible authorities, and then submit to the same authorities CO2 emission certificates in the amount of the reported CO2 emissions. Here, one CO2 emission certiﬁcate (European Union Allowance — EUA) corresponds to the right to produce one ton of CO2.
A total of 14 Daimler Group facilities in Germany, France, Hungary and Spain are currently subject to this requirement. These facilities generate the electricity and heat energy that are needed for their production operations on their respective sites. They are all highly eﬃcient and utilize natural gas almost exclusively. The Daimler plant in Mannheim also operates a foundry that is subject to the regulations governing the EU ETS.
The permitted total number of EUAs is limited and also lowered each year. As a result, fewer and fewer free CO2 emission certiﬁcates are issued each year, which means the number of such certiﬁcates available to the automotive industry and many other sectors will have been reduced to zero by the end of the fourth trading period (2021–2030). A large portion of the CO2 emission certiﬁcates needed must therefore be acquired at a cost via EUA auctions, the emission certiﬁcate market or direct trading. Due to the increasing scarcity of certiﬁcates, the price for an EUA rose from around €5 to about €20 between 2017 and 2018. At Daimler, an in-house committee consisting of experts from various departments deﬁnes the procurement strategy and risk management for the CO2 emission certiﬁcates the Group needs.
More than half of the CO2 emissions produced at our European production locations are currently covered by emissions trading activities. We continue trying to further reduce our CO2 emissions through the implementation of projects to increase energy eﬃciency and the expansion of the capacity of systems that generate heat and electricity from renewable sources. Assessments of our CO2-reduction projects also take the costs of CO2-avoidance measures and CO2 emissions trading directly into account.