1、Sustainability Report 2022Sustainability Report 2022.Mercedes-Benz Group2FOREWORDGOVERNANCE 6 Stakeholder Perpectives 12 Sustainable corporate governance 42 Integrity and compliance 60 Data responsibility 69 PartnershipsENVIRONMENT 82 Stakeholder Perpectives 90 Climate protection 117 Air quality 125

2、 Resource conservationSOCIAL 145 Stakeholder Perpectives 152 People 188 Sustainable urban mobility 195 Traffic Safety 209 Human rights 227 Social commitmentFACTS&FIGURES 237 Report profile 243 Calculation and documentation of CO2 emissions 245 KPMG auditors report 248 GRI Index 249 Glossary 257 Impr

3、intThis Sustainability Report also includes the content audited in the Non-Financial Declaration.The relevant passages in this Sustainability Report are marked in blue font colour in the continuous text.Audited graphs and tables are also referenced accordingly via footnotes.Unless explicitly noted,t

4、his content was audited with reasonable assurance.Unless marked with footnotes,graphs and tables have not undergone external audit,regardless of the colors used.Sustainability Report 2022.Mercedes-Benz GroupForeword3ForewordDear Reader,According to current forecasts,the global passenger car market i

5、s expected to exceed 91 million vehicles in 2030 around 25 percent more than in 2022.Our task at Mercedes-Benz is to meet this growing need for individu-al mobility in a sustainable way.To achieve this,we have defined a clear path on which we have reached important milestones along our value chains

6、in recent months.The core of our business continues to be convincing products:we now offer at least one fully electric model in every segment we serve from the compact EQA to the spacious EQS SUV.And that is well-received:in 2022,more than twice as many customers opted for a vehicle from our electri

7、c brand Mercedes-EQ than in the previous year.With our concept car Vision EQXX,we underlined our claim to be the innovation leader in e-mobility:On its record-breaking drive from Stuttgart to Silver-stone,it covered over 1,200 kilometres on a single battery charge with an average consumption of just

8、 8.3 kWh/100 km.In order to attract even more people to electric cars in the long term,we also need a well-developed charging infrastructure.Via Mercedes me Charge,our customers already have access to around one million charging points worldwide.In addition,we will build up our own high-power chargi

9、ng network in North America,Europe,China and other key markets.In order to conserve valuable resources,one of our major goals is the circular economy.In this regard,the battery is an important factor for electric vehicles.That is why we are building our own battery recycling factory in Kuppenheim,wh

10、ere we will achieve a recycling rate of over 96 percent thanks to innovative technology.In addition to sustainable products,we are increasingly focused on sustainable production.Since 2022,our own producition sites are CO-neutral on the balance sheet.By 2030,we want to cover more than 70 percent of

11、the energy demand in production with renewable ener-gies especially by expanding solar and wind energy at our sites and concluding further corresponding power purchase agreements.Its not only the demand for green energy that is in-creasing,its also the demand for responsibly sourced raw materials.Th

12、is is why we work with the Canadi-an government,for example.Through direct contact with raw material producers,we want to open up new sources for important materials.This gives us grea-ter influence on sustainable supply chains and the observance of human rights all the way to the mines.With our Raw

13、 Materials Report“we create more Many things are expected from Mercedes-Benz inside and outside our factory gates.We want to live up to these expectations in a sustainable way.This includes the ambition of making our fleet of new passenger cars net carbon-neutral by 2039.By 2030,we plan to be around

14、 halfway there.To make faster progress on climate protection,we need maximum commitment and even stronger cooperation between politics,industry and society.Compelling products continue to be the core of our business:We now offer at least one fully electric model in every segment in which we compete

15、from the compact EQA to the spacious EQS SUV.In order to conserve valuable resources in the process,one of our major goals is the circular economy.That is why already during the development of our vehicles we use a“design for circularity”approach.For example,we already consider the recycling of our

16、batteries during their development.Sustainability Report 2022.Mercedes-Benz GroupForeword4 public transparency.Additionally,tools like the“Human Rights Respect System”and our“Responsible Sourcing Standards”help us a lot,which is why we encourage our direct suppliers to comply with them.And with our

17、governance and compliance structures,we ensure a responsible approach to future technologies be it big data,automated driving or artificial intelligence.New technologies and business models also require new skills.As an employer,we are responsible for more than 170,000 colleagues from 145 nations.Th

18、at is why in Germany alone,we will invest more than 1.3 billion in the qualification,training and further education of our employees by 2030.We are also strengthening traditional locations such as Stuttgart-Untertrkheim or Berlin-Marienfelde by developing them into centres of excellence for future t

19、echnologies.Beyond the boundaries of our company,education is also a concern for us:we make donations to fund a global fellowship programme that will provide know-ledge,coaching and scholarships to thousands of young people from around the world in order to implement innovative projects in the areas

20、 of environmental sustain ability and decarbonisation.To raise the seed money for the programme,we auctioned the worlds most valuable automobile a Mercedes-Benz 300 SLR Uhlenhaut Coup for the record price of 135 million.There are many expectations towards Mercedes-Benz:Our customers expect first-cla

21、ss products.Our colle-agues expect future-proof jobs.Our shareholders expect an appropriate return on their investment.And society expects our commitment inside and outside the fac-tory gates.All these claims are legitimate.The best way to deliver on them is to make our company economically successf

22、ul and sustainable in the long term.At Mercedes-Benz,we are firmly committed to this.We have set the course with our sustainable business stra-tegy.On the following pages,youll read about the pro-gress we made in 2022.We wish you an interesting read and look forward to a constructive dialogue with y

23、ou.YoursOla KlleniusMarkus SchferRenata Jungo BrnggerAt Mercedes-Benz,we have been conceiving sustainability holistically for many years.Environmental protection,social aspects and good corporate governance must go hand in hand.That is why on the path to the all-electric future we want clean supply

24、chains and respect for human rights,from the raw materials mines all the way to our customers.The right governance helps us in this regard,for example,in the form of our Human Rights Respect System.GOVERNANCE6Sustainability Report 2022.Mercedes-Benz GroupGovernance Stakeholder PerspectivesThe handli

25、ng of ESG risks is increasingly coming into focus for many companies.This trend is accelerated by the growing due diligence obligations for companies.What does this mean for an international Group with complex supply chains?In this interview,Thilo Mangold,Head of the Group Risk and Opportunity Manag

26、ement,talks about new perspectives and what they have to do with a speak up culture.“ESG risks on the radar”Mr Mangold,in order to manage risks,one must first identify them.What social risks does Mercedes-Benz deal with?There are a number of them.First of all,a social risk describes the danger that

27、events,developments,or actions hinder us from achieving our goals.To prevent this,we systematically address labour and human rights risks,for example.We do this not only in all the countries we operate in,but also in all areas of our value chain,from research and development,procure-ment,production,

28、to sales and our financial services.Some risks arise from the fact that we,as an interna-tional corporation,are subject to various,sometimes heterogeneous regulatory requirements.Others are directly related to our sustainable business strategy.Through forward-looking risk management,we ensure the lo

29、ng-term performance and innovative strength of the Group.It is crucial to take countermeasures for the identified risks as early as possible.To sum up:The traditional risk map has changed.It has become much denser due to the increasing integration of ESG issues and an increasingly complex environmen

30、t with numerous stakeholders.But that is only one side of the coinWhat is the other side?Where there are risks,there are also opportunities for the Group.In risk and opportunity management,we aim to identify and analyse these opportunities,where we can position ourselves as a first mover to make a p

31、ositive difference for our customers,employees,investors or other stakeholders in the future.Through risk and opportunity manage-ment,we have the ability to identify changes in the Groups environment at an early stage,such as those affecting human rights,diversity or resource conservation,and to dev

32、elop appropriate responses with foresight.That is an important building block in creating additional value for both the Group itself and its stakeholders.Thilo MangoldMercedes-Benz AG 7Sustainability Report 2022.Mercedes-Benz GroupGovernance Stakeholder PerspectivesHow does the handling of classic a

33、nd ESG risks or opportunities differ?The first difference lies in how they are identified.To stick with the metaphor of the risk map,it is important to be sensitive to the new topics and to view the entire environment with a 360-degree view.It is about raising awareness of the expanded risk map in o

34、ur organisation.In this way,early warning signals can be detected as quickly as possible.At the same time,such assessment has also become more complex,since classical risks can usually be quanti-fied more easily.Putting a price tag on ESG risks that shows the potential impact on the companys results

35、 is much more difficult.This is mainly due to the fact that cause and effect are often not clearly connec-ted.Sometimes,effects occur in places that were not previously considered.We have to deal with this and adjust our methods accordingly.In addition,another perspective must be taken into account

36、in the assessment:the inside-out perspective.It assesses how a potential damage resulting from a risk would affect the Groups environment.Methodology is a good keyword.Can such hete-rogeneous risks as,for example,human rights violations and the shortage of skilled workers be managed in one system at

37、 all?To put it bluntly,we cannot afford to work with a patchwork.We have a clearly defined process and an associated IT system,a single source of truth.The input for this comes from numerous sources.For the area of human rights,the Social Compliance depart-ment,among others,provides important inform

38、ati-on via the Human Rights Respect System.Risks arising from the shortage of skilled workers,on the other hand,would be reported primarily by Human Resource Management.Behind each of these are different evaluation logics,yet everything is based on a uniform screening and reporting process.All of th

39、is serves our goal in central risk management:to bundle and analyse information.The assessment of external impulses also plays an important role.To capture them,we have established a so-called risk radar within the company,where we regularly work together with colleagues from the investor relations,

40、external affairs or communications departments,for example.There,early warning signals and current issues are discussed,and it is examined what opportunities and risks could arise for us.The earlier we recognise deve-lopments,the better.What possibilities do you see to promote early detection?Develo

41、ping sensitivity for ESG issues throughout the entire corporation is a central aspect.We are achieving this step by step,based on informati-on accessible to everyone and a dialogue within the Group.At the same time,we need people who openly address risks.This is what is meant when we talk about a sp

42、eak-up culture.This culture is essential for risk management because it helps to ensure that issues critical to success are discussed and assessed at an early stage.Perhaps some may be concerned about being seen as a sceptic,which is why it is not so easy to deal with risks in a trans-parent way.Par

43、t of our job in risk management is to address these challenges and alleviate any con-cerns.Our team therefore works across divisional and national boundaries to create a culture in which we jointly assess risks at an early stage and take countermeasures together early on as well.Thilo Mangoldheads G

44、roup Risk and Opportunity Management at the Mercedes-Benz Group.Although he mostly deals with risks in his daily work,he still describes himself as a very optimistic and at the same time realistic person.Sensitivity to new topics in the risk landscape and a 360-degree view are important in order to

45、counteract risks at an early stage and take advantage of opportunities.8Sustainability Report 2022.Mercedes-Benz GroupGovernance Stakeholder PerspectivesInequalities of outcome and opportunity are jeopardizing social cohesion,making it more difficult to work together towards a net-zero future.What s

46、hould businesses do to support equality,fairness and inclusion?And what role can a luxury car manufacturer like Mercedes-Benz play in this respect?Aninterview with James Gomme,head of WBCSDs(World Business Council forSustainable Development)Business Commission to Tackle Inequality.“We need to make s

47、ure that value is distributed equitably”Mr.Gomme,income and wealth have always been unequally distributed in societies.However,you say that a critical point has now been reached.Why?First of all,while inequality between countries has been decreasing in recent decades,the wealth and income gap within

48、 countries has widened.We are now seeing wealth inequality as high as it has been since the early 1800s,with the richest 10 percent of the population holding 75 percent of all wealth,and the poorest 50 percent holding just 2 percent.Historically,extreme inequality has been a precursor to instability

49、,and today is no different.At the same time,other emerging trends such as conflict,cli-mate change,technological disruption,and the COVID-19 pandemic,for example,are all hitting the most vulnerable the hardest and have the potential to further escalate the scale of inequality around the world in the

50、 years ahead.So,while inequality has been a part of our societies over the ages,we have,I believe,now reached a critical junc-ture.The high level and structural nature of inequality,coupled with several historic disruptions,make mounting inequality a systemic and a business risk one that af-fects no

51、t only individual communities or companies,but entire economies and societies.How does this imbalance relate to the climate crisis and the transformation aim to net-zero?The planetary crisis that we are facing is having profound impacts on people.It is undermining human health,disrupting access to e

52、ssential products and services,and destroying livelihoods.The World Bank predicts that 132 million people could be pushed into extreme James GommeWBCSD9Sustainability Report 2022.Mercedes-Benz GroupGovernance Stakeholder Perspectives poverty by 2030,as a result of climate change if we do not take co

53、ncerted action.It will therefore not be possi-ble to tackle inequality without robust efforts to mitigate and adapt to climate change.At the same time,it will also be impossible to address the climate emergency without putting people at the center of this agenda and working to ensure that the journe

54、y to a net-zero econo-my creates a fairer,more prosperous future for all.We must recognise that the transformation is going to profoundly impact workers,suppliers,communities,and consumers at the local and global level.Compa-nies need to engage with governments and other sta-keholders to intentional

55、ly and collaboratively mitigate negative impacts and to ensure a transition in which everyone can see opportunity.What can companies do to foster this scenario?There are a number of key actions that business can take to tackle inequality.First of all,corporate respect for human rights should sit at

56、the centre of everything.It helps to ensure that human dignity moves to the center of how business gets done.It reinforces a companys capacity to lift people out of poverty,impro-ving the lives of the worlds most vulnerable people.Following from that there is a role for business in terms of utilizin

57、g its innovation and capacity building to make essential products and services more accessible and affordable for consumers who are currently under-served.Business has to explore new ways,perhaps in collaboration with government or through new blen-ded finance mechanisms,to try and make sure that ev

58、eryone has access to what they need to be healthy and productive.And then,theres a key pillar of action around jobs and economic opportunities.Business has to make sure that opportunities are available to everybody,regardless of their backgrounds,and that workers and those entering the workforce are

59、 empow-ered with the right skills to thrive,both now and in the future.Finally,there is also an urgent need to ensure that value and risk are distributed more equitably.To-day,over a billion working people worldwide earn less than they need to afford a decent standard of living.To tackle inequality

60、and restore faith in our economic system,it is critical to ensure that work provides a path out of poverty and an opportunity for upward mobility and prosperity for all.What responsibility do these topics imply for a luxury manufacturer like Mercedes-Benz?I think,there is a huge opportunity to redef

61、ine what luxury means,in terms of not only being the experi-ence that the consumer has in relation to the product,but also the assurance that this product has been produced in a way that maximises positive social impact throughout its value chain.That every com-ponent of that product has been source

62、d or created in a way that has distributed value to a wide variety of global stakeholders,has enriched their lives and has made a contribution to tackling inequality.Our research at the BCTI(Business Commission to Tackle Inequality)indicates that this is increasingly important for consumers and movi

63、ng forward could represent an important source of competitive advantage.Social inequality is often primarily viewed from a risk perspective.Do you also see opportunities when it comes to tackling inequality and realizing a more just and inclusive society?While the business case for action to tackle

64、inequa-lity is certainly about mitigating risk,it is also about building a world of opportunity in which companies can thrive in the long-term.Tackling inequality can strengthen the operating environment by building trust,enhancing social and political stability,and con-taining crises.There is also

65、mounting evidence that it is an important driver for long-term,sustainable If all stakeholder groups work together,a just transition can succeed.10Sustainability Report 2022.Mercedes-Benz GroupGovernance Stakeholder Perspectiveseconomic growth.Furthermore,as momentum builds behind a shift in the way

66、 business performance is perceived and measured,tackling inequality is also about unlocking a variety of company-level benefits,including attracting and retaining talent,winning consumers,enhancing access to capital and staying ahead of policy and regulatory change.Of course,measures to promote soci

67、al equality will come with costs,but these costs should be seen as investments in long-term business success.So,yes,there are huge opportunities,both in the operating environment and at the individual company level.What encourages you that the global community will succeed in reversing the current t

68、rend and effectively combating inequality?There are a few things that give me hope.Firstly,I take a lot of encouragement from the progress that has been made with regard to efforts to address the climate emergency in recent years.Of course,we still have a lot of work to do here as well,but we are se

69、eing the entire global business community rally behind net-zero commitments.We have also seen governments take strong action,and we have seen bodies like TCFD(Task force on Climate-related Financial Disclosure),and the ISSB(International Sustainability Standards Board)start to set clear standards wh

70、ich are helping to further mainstream action.For me,this represents an important blueprint for the path we need to tread on the social side of sustainable development as well.And then on a personal level,interacting with leading companies in this space also gives me hope.There is a growing community

71、 of passionate individuals and purpose-led companies,who are driving this agenda forward at pace,and we are really pleased to be able to count on their leadership.The urgent call to action now is for all businesses to use the tools and resour-ces at their disposal to head off the risks posed by moun

72、ting inequality.We need to ensure that equal op-portunities and better outcomes are available for all.James Gommejoined WBCSD in March 2016 on a long-term secondment from Mitsubishi Corporation,Japans largest general trading and investment company.In July 2021,James launched The Business Commission

73、to Tackle Inequality,a high-profile initiative that is seeking to clearly establish the role of busi-ness when it comes to tackling the critical systemic challenge of mounting levels of inequality globally.Initial recommendations for action are sum-marized in the report “Tackling inequality:The need

74、 and opportunity for business action.”The way the entire global business community is rallying behind net-zero commitments shows that the path can only be taken together.This also applies to the path to social goals.11Sustainability Report 2022.Mercedes-Benz GroupGovernanceGOVERNANCE 12 Sustainable

75、corporate governance 42 Integrity and compliance 60 Data responsibility69 PartnershipsThis Sustainability Report also includes the content audited in the Non-Financial Declaration.The relevant passages in this Sustainability Report are marked in blue font colour in the continuous text.Audited graphs

76、 and tables are also referenced accordingly via footnotes.Unless explicitly noted,this content was audited with reasonable assurance.Unless marked with footnotes,graphs and tables have not undergone external audit,regardless of the colors used.Sustainable corporate governanceGERMANYRastattBremenDsse

77、ldorfSindelfingenUntertrkheimLudwigsfeldeBerlinHamburg KamenzKlleda/ArnstadtKuppenheimTHAILAND/VIETNAM/INDONESIA/MALAYSIAHo Chi Minh CityBangkokPekanJakartaUSA/MEXICOCharlestonTuscaloosaAguascalientesROMANIACugirSebeHUNGARYKecskemtPOLANDJaworARGENTINABuenos AiresSPAINVitoriaSOUTH AFRICAEast LondonEG

78、YPTCairoINDIAPuneCars Plant/EVVans Plant/EVBattery PlantEnginesTransmissionsAxles(EV)ComponentsBattery RecyclingCZECH REP.MostSLOVENIAMariborFuzhouBeijingCHINA13Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceSustainability as a driver of changeThe Mercedes-B

79、enz Group aims to create value that is sustainable economically,ecologically and socially:This is one of the core principles of the Group.It applies not only to the Groups own products and manufacturing locations,but also to the entire upstream and downstream value chain.It has translated this appro

80、ach in its sustainable business strategy,with which it firmly embeds sustainability considerations in the daily business activities.In this way,the Mercedes-Benz Groupintends,among other things,to fulfil the demands and expectations of its stakeholders i.e.customers,employees,investors,business part

81、ners,non-governmental organizations and society as a whole.Strategy chapter,AR 2022One of the most important transformation goals at the Mercedes-Benz Group is decarbonisation,which the Group has made a firm component of its sustainable business strategy.At Mercedes-Benz Group,this goal is reflected

82、 in“Ambition 2039”and the“Electric Only”approach.By the end of this decade,Mercedes-Benz intends to be all-electric wherever market conditions allow.The Mercedes-Benz Group at a glance GRI 2-1/-2/-4/-6 The Mercedes-Benz GroupAG is the parent company of the Mercedes-Benz Group and has its registered

83、office in Stuttgart.With effect from 1 February 2022,DaimlerAG changed its name to Mercedes-Benz GroupAG.As well as Mercedes-Benz GroupAG,the Mercedes-Benz Group is made up of all subsidiary companies over which the Mercedes-Benz GroupAG The global production network of the Mercedes-Benz Group in th

84、e midst of transformationSustainable business strategy14Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governancecan exert a direct or indirect controlling influence.The Mercedes-Benz GroupAG determines the strategy of the Group,is its controlling body and,as the Grou

85、p parent company,is responsible for legal,regulatory and compliance functions worldwide.The Mercedes-Benz Group markets and sells vehicles and services in almost all countries of the world and has some 30 production sites in Europe,North and Latin America,Asia and Africa.Mercedes-Benz Group2022Emplo

86、yees(Status December 31,2022)168,797Production sites30Unit sales(in mill.units)2.456Financial key figures(in millions)Revenue150,017Research and development expenditure Mercedes-Benz Cars and Mercedes-Benz Vans8,541Personnel expenses(wages and salaries,social welfare services)29,607Total dividend(in

87、)5.2015Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceThe brand portfolio of Mercedes-Benz Cars includes,along with the Mercedes-Benz brand,the brands Mercedes-AMG,Mercedes-Maybach and Mercedes-EQ.The Mercedes me brand offers access to the digital services o

88、f Mercedes-Benz Cars.Mercedes-Benz Vans is a full-service provider in the van sector.The Mercedes-Benz Mobility business division supports sales of the Mercedes-Benz Groups automotive brands around the world through tailored mobility and financial services.Mercedes-Benz Mobility is also active in th

89、e field of innovative mobility services.Areas of action and the foundations of sustainability GRI 3-2 The Mercedes-Benz Group acts in line with the sustainable business strategy adopted by the Board of Management of Mercedes-Benz Group AG in 2019 with the agreement of the Supervisory Board.Sustainab

90、ility topics are thus an integral part of the business strategy.Strategy chapter,AR 2022The Mercedes-Benz Group has set itself ambitious goals and defined six strategic areas of action for reaching these goals.The strategic goals are based on the UNs 17 Sustainable Development Goals(SDGs)especially

91、SDGs 8 and 9 and 11 to 13 among other factors.In addition,they take into account recognized international frameworks,the requirements of the external and internal stakeholders and global trends.Group-wide areas of action and areas of responsibility,as well as business-specific targets,processes and

92、measures are derived from this analysis.The Mercedes-Benz Group undertakes periodic materiality analyses.It uses these as the basis for a discussion of the current fields of action and an assessment of the need for updates.The Mercedes-Benz Group has also formulated strategic ambitions for each of t

93、he six areas of action:1.Climate protection and air quality:Plans call for the Mercedes-Benz new vehicle fleet to be CO2-neutral on the balance sheet across the entire value chain by 2039 and to no longer have any relevant impact on NO2 levels in urban areas by 2025.2.Resource conservation:The Merce

94、des-Benz Group wants to decouple resource consumption from busi-ness volume growth.3.Sustainable urban mobility:The Mercedes-Benz Group wants to contribute to the improvement of the quality of life in cities through its leading mobility and transport solutions.4.Traffic safety:The Mercedes-Benz Grou

95、p is working to make its vision of accident-free driving a reality as it develops automated driving systems while also taking social and ethical issues into account.5.Data responsibility:The future of the Mercedes-Benz Group consists of sustainable,data-based business models.With these business mode

96、ls,it focuses on the needs of its customers and the responsible handling of data.6.Human rights:The Mercedes-Benz Group has as-sumed responsibility for respecting and upholding human rights along its automotive value chain.Company profileAreas of actionEnabler Climate protection&air quality Traffic

97、safety Integrity Resource conservation Data responsibility Partnerships Sustainable urban mobility Human Rights People16Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceThe Mercedes-Benz Group has defined three enablers,or principles,that are crucial for achie

98、ving success in the six areas of action:integrity,people and partnerships.1.Integrity:In order to firmly anchor integrity in all areas,the Mercedes-Benz Group considers two crucial aspects:first of all,by establishing adequate structures with appropriate policies and processes,the organisation is ab

99、le to provide the foundation for all parties to act with integrity.Secondly,the Group focuses on putting each employee individually in a position to understand the concept of integrity and thereby to act ethically and sustainably.2.People:As an attractive employer,the Mercedes-Benz Group promotes th

100、e diversity of its workforce and provides the necessary skills to mas-ter the challenges of digitalisation.3.Partnerships:The Mercedes-Benz Group enters into partnerships with social and political players in or-der to achieve the goals of the sustainable business strategy against the backdrop of the

101、 ecological and social challenges in these times.The Groups prin-ciples for political dialogue and advocacy provide the basis for responsible and reliable action within these partnerships.Six fields of action and three enablers17Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable co

102、rporate governanceUnited Nations Sustainable Development Goals In 2015,the United Nations defined a blueprint for worldwide sustainable development.This includes 17Sustainable Development Goals(SDGs).Through their innovation and investment power,businesses play a decisive role in achieving these goa

103、ls which the Mercedes-Benz Group actively embraces.In order to assess its corporate performance with regard to the 17 SDGs,the Mercedes-Benz Group conducted an SDG analysis together with the analytical experts of TruCost in 2020.This involved examining the positive and potentially negative impacts o

104、f its business activities on the SDGs.In addition,the Mercedes-Benz Group identified those UN Sustainability Goals that entail the greatest opportunities and risks for itself.The Mercedes-Benz Group uses the results to make an even greater contribution to achieving the UNSustainable Development Goal

105、s through its correspondingly aligned business activities.To this end,the Mercedes-Benz Group is focusing on the areas in which it can create the greatest value.One example ofthis is the“Electric only”approach.The following SDGs are the focus of the work of the Mercedes-Benz Group:SDG 8 Decent Work

106、and Economic Growth:The Group develops and implements a risk-based management approach to respect and protect human rights in its own business units as well as in the supply chain through this,the Mercedes-Benz Group supports the implementation of humane working conditions.Through its production and

107、 large procurement volume,the Mercedes-Benz Group also creates employment all over the world.SDG 9 Industry,Innovation and Infra-structure:Digitalisation and electrification with these,the Mercedes-Benz Group is shaping the sustainable mobility of the future and contributing to greater safety and cl

108、imate protection,for example.It is also able to demonstrate the potential of digital innova-tions for society.SDG 11 Sustainable Cities and Communi-ties:The Mercedes-Benz Group is making a contribution to sustainable mobility in densely populated urban areas with its vehicles,data-based solutions fo

109、r greater traffic safety or improvement of traffic flow,as well as multimodal connectivity of mobility packages.SDG 12 Sustainable Consumption and Production:The Mercedes-Benz Group is working to increase the efficiency of its vehicles and significantly reduce its use of raw materials.One of the tas

110、ks here is to reinforce the closed material loops for the primary raw materials which are needed for electric vehicles.In this way,the Mercedes-Benz Group is setting the course for sustainable production.SDG 13 Climate Protection Measures:Through its sustainable business strategy and the associated

111、measures and targets for reducing emissions from its own vehicles,plants and supply chains,the Mercedes-Benz Group aims to reduce its environmental impact on the climate.ProductdevelopmentSupply chainProductionVehicle operation Recycling,remanufacturing and disposal41%of all raw materials with incre

112、ased risk checked Almost 86%of the production material suppliers of Mercedes-Benz Cars and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in the production of Mercedes-Benz Cars and Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all

113、cars and vans of up to 3.5 t gross vehicle weight can be reusedor recoveredPilot factory built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returnable high-voltage lithium-ion batteries are being routed to remanufacturing for reuse in vehicles or for second life in energy

114、storagesCO2 emissions at Group-wide production sites worldwide reduced by 43%compared with 2021 825on-site visits at its production material suppliers with regard to compliance with various sustainability requirements were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes

115、-Benz new passenger car fleet in Europe(European Union,Norway and Iceland)are expected to be 115 g/km(including vans registered as passenger cars)when applying the legal regulationsThe Mercedes me Charge digital charging service has integrated over 1,000,000AC and DC charging points worldwide by the

116、 end of 2022The share of electrified vehicles(xEV)in Group sales at Mercedes-Benz Cars is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Vans is 4%worldwide Energy consumption per vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by

117、15%Water consumption per vehicle at Mercedes-Benz Cars reduced by 10%compared to 2021;at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enabling conditional auto-mated driving(SAE Level 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion eu

118、ros spent on research and development expendituresBy 2030,the Mercedes-Benz Group intends to invest a total of more than 1.3 billion euros in the qualification and training of employees in GermanyThe proportion of women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%Prod

119、uctdevelopmentSupply chainProductionVehicle operation Recycling,remanufacturing and disposal41%of all raw materials with increased risk checked Almost 86%of the production material suppliers of Mercedes-Benz Cars and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in t

120、he production of Mercedes-Benz Cars and Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all cars and vans of up to 3.5 t gross vehicle weight can be reusedor recoveredPilot factory built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returna

121、ble high-voltage lithium-ion batteries are being routed to remanufacturing for reuse in vehicles or for second life in energy storagesCO2 emissions at Group-wide production sites worldwide reduced by 43%compared with 2021 825on-site visits at its production material suppliers with regard to complian

122、ce with various sustainability requirements were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes-Benz new passenger car fleet in Europe(European Union,Norway and Iceland)are expected to be 115 g/km(including vans registered as passenger cars)when applying the legal regu

123、lationsThe Mercedes me Charge digital charging service has integrated over 1,000,000AC and DC charging points worldwide by the end of 2022The share of electrified vehicles(xEV)in Group sales at Mercedes-Benz Cars is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Va

124、ns is 4%worldwide Energy consumption per vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by15%Water consumption per vehicle at Mercedes-Benz Cars reduced by 10%compared to 2021;at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enablin

125、g conditional auto-mated driving(SAE Level 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion euros spent on research and development expendituresBy 2030,the Mercedes-Benz Group intends to invest a total of more than 1.3 billion euros in the qualification and training o

126、f employees in GermanyThe proportion of women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%ProductdevelopmentSupply chainProductionVehicle operation Recycling,remanufacturing and disposal41%of all raw materials with increased risk checked Almost 86%of the production ma

127、terial suppliers of Mercedes-Benz Cars and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in the production of Mercedes-Benz Cars and Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all cars and vans of up to 3.5 t gross vehicle weigh

128、t can be reusedor recoveredPilot factory built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returnable high-voltage lithium-ion batteries are being routed to remanufacturing for reuse in vehicles or for second life in energy storagesCO2 emissions at Group-wide production s

129、ites worldwide reduced by 43%compared with 2021 825on-site visits at its production material suppliers with regard to compliance with various sustainability requirements were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes-Benz new passenger car fleet in Europe(European

130、 Union,Norway and Iceland)are expected to be 115 g/km(including vans registered as passenger cars)when applying the legal regulationsThe Mercedes me Charge digital charging service has integrated over 1,000,000AC and DC charging points worldwide by the end of 2022The share of electrified vehicles(xE

131、V)in Group sales at Mercedes-Benz Cars is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Vans is 4%worldwide Energy consumption per vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by15%Water consumption per vehicle at Mercedes-Ben

132、z Cars reduced by 10%compared to 2021;at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enabling conditional auto-mated driving(SAE Level 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion euros spent on research and development expenditur

133、esBy 2030,the Mercedes-Benz Group intends to invest a total of more than 1.3 billion euros in the qualification and training of employees in GermanyThe proportion of women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%18Along the value chain GRI 2-6 The automotive indus

134、try is currently undergoing a profound process of change,which the Mercedes-Benz Group would like to actively shape.In doing so,the Group considers the entire value chain.This encompasses the complete life cycle of the vehicle from development to its recycling after the use phase.It aims to avoid or

135、 minimise the negative impacts of its business activities as far as possible,and to create sustainable value economically,ecologically and socially.The diagram below shows the main stages of the Mercedes-Benz value chain in simplified form.Product developmentThe Mercedes-Benz Group offers a broad pr

136、oduct portfolio of passenger cars along with both private and commercial vans.It is systematically electrifying all model series and,as part of this,is strongly involved in research and development.Supply chainMercedes-Benz vehicles consist of several thousand components raw materials such as iron,c

137、opper or aluminium,preliminary products,preliminary products such as steel,semi-finished products such as seats,wiring harnesses,etc.and the supply chain is accordingly complex:it comprises nearly 40,000 direct suppliers for production and non-production materials,mainly from the regions of Europe,A

138、sia and North America.These in turn have sub-suppliers.ProductionThe Mercedes-Benz Group has more than 30 production sites of its own on five continents worldwide.There,components for electric vehicles are assembled,transmissions,axles and engines are produced,batteries are assembled or recycled,or

139、the final assembly of vehicles takes place.Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceProductdevelopmentSupply chainProductionVehicle operation Recycling,remanufacturing and disposal41%of all raw materials with increased risk checked Almost 86%of the pro

140、duction material suppliers of Mercedes-Benz Cars and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in the production of Mercedes-Benz Cars and Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all cars and vans of up to 3.5 t gross veh

141、icle weight can be reusedor recoveredPilot factory built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returnable high-voltage lithium-ion batteries are being routed to remanufacturing for reuse in vehicles or for second life in energy storagesCO2 emissions at Group-wide pr

142、oduction sites worldwide reduced by 43%compared with 2021 825on-site visits at its production material suppliers with regard to compliance with various sustainability requirements were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes-Benz new passenger car fleet in Europ

143、e(European Union,Norway and Iceland)are expected to be 115 g/km(including vans registered as passenger cars)when applying the legal regulationsThe Mercedes me Charge digital charging service has integrated over 1,000,000AC and DC charging points worldwide by the end of 2022The share of electrified v

144、ehicles(xEV)in Group sales at Mercedes-Benz Cars is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Vans is 4%worldwide Energy consumption per vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by15%Water consumption per vehicle at Me

145、rcedes-Benz Cars reduced by 10%compared to 2021;at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enabling conditional auto-mated driving(SAE Level 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion euros spent on research and development

146、expendituresBy 2030,the Mercedes-Benz Group intends to invest a total of more than 1.3 billion euros in the qualification and training of employees in GermanyThe proportion of women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%ProductdevelopmentSupply chainProductionVe

147、hicle operation Recycling,remanufacturing and disposal41%of all raw materials with increased risk checked Almost 86%of the production material suppliers of Mercedes-Benz Cars and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in the production of Mercedes-Benz Cars an

148、d Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all cars and vans of up to 3.5 t gross vehicle weight can be reusedor recoveredPilot factory built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returnable high-voltage lithium-ion batteries

149、 are being routed to remanufacturing for reuse in vehicles or for second life in energy storagesCO2 emissions at Group-wide production sites worldwide reduced by 43%compared with 2021 825on-site visits at its production material suppliers with regard to compliance with various sustainability require

150、ments were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes-Benz new passenger car fleet in Europe(European Union,Norway and Iceland)are expected to be 115 g/km(including vans registered as passenger cars)when applying the legal regulationsThe Mercedes me Charge digital

151、charging service has integrated over 1,000,000AC and DC charging points worldwide by the end of 2022The share of electrified vehicles(xEV)in Group sales at Mercedes-Benz Cars is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Vans is 4%worldwide Energy consumption p

152、er vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by15%Water consumption per vehicle at Mercedes-Benz Cars reduced by 10%compared to 2021;at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enabling conditional auto-mated driving(SAE L

153、evel 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion euros spent on research and development expendituresBy 2030,the Mercedes-Benz Group intends to invest a total of more than 1.3 billion euros in the qualification and training of employees in GermanyThe proportion o

154、f women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%ProductdevelopmentSupply chainProductionVehicle operation Recycling,remanufacturing and disposal41%of all raw materials with increased risk checked Almost 86%of the production material suppliers of Mercedes-Benz Cars

155、 and Mercedes-Benz Vans have signed the“Ambition Letter”Share of renewable energies in the production of Mercedes-Benz Cars and Mercedes-Benz Vans in total electricity consumption is 100%95%of the materials in all cars and vans of up to 3.5 t gross vehicle weight can be reusedor recoveredPilot facto

156、ry built at Kuppen-heim site for recycling lithium-ion battery systems;73%of the returnable high-voltage lithium-ion batteries are being routed to remanufacturing for reuse in vehicles or for second life in energy storagesCO2 emissions at Group-wide production sites worldwide reduced by 43%compared

157、with 2021 825on-site visits at its production material suppliers with regard to compliance with various sustainability requirements were performed by the Mercedes-Benz GroupThe average CO2 emissions of the Mercedes-Benz new passenger car fleet in Europe(European Union,Norway and Iceland)are expected

158、 to be 115 g/km(including vans registered as passenger cars)when applying the legal regulationsThe Mercedes me Charge digital charging service has integrated over 1,000,000AC and DC charging points worldwide by the end of 2022The share of electrified vehicles(xEV)in Group sales at Mercedes-Benz Cars

159、 is 16%worldwide The share of fully electric vehicles in Group sales at Mercedes-Benz Vans is 4%worldwide Energy consumption per vehicle at Mercedes-Benz Cars reduced by 17%compared to 2021;at Mercedes-Benz Vans by15%Water consumption per vehicle at Mercedes-Benz Cars reduced by 10%compared to 2021;

160、at Mercedes-Benz Vans by14%The“DRIVE PILOT”has been approved for sale in Germany,enabling conditional auto-mated driving(SAE Level 3)on suitable highway sections in Germany at speeds of up to 60 km/h.8.5 billion euros spent on research and development expendituresBy 2030,the Mercedes-Benz Group inte

161、nds to invest a total of more than 1.3 billion euros in the qualification and training of employees in GermanyThe proportion of women in senior management positions at the Mercedes-Benz Group worldwide is 24.7%19The following table shows some of the significant progress made by the Mercedes-Benz Gro

162、up in the various fields of action and with respect to its defined enablers over the course of 2022.Remanufacturing&recyclingThe Mercedes-Benz Group observes the waste hierarchy,with the top priority of avoiding waste.Only then,according to the waste hierarchy,should measures be im-plemented to allo

163、w reuse of various components and parts through remanufacturing,or to recover materials through recycling.Use/operationWith its brands and mobility products/services,the Mercedes-Benz Group is repre-sented in almost every country in the world.In 2022,Mercedes-Benz delivered around 2.5 million passen

164、ger cars and vans to its customers.It markets all-electric vehicles under the Mercedes-EQ brand.It also wants to support its customers in adopting an eco-friendly driving style and in their decision to buy locally emission-free vehicles.Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustai

165、nable corporate governance123Materiality matrix and ranking of sub-issuesIssue profilesFinal list of the significant issuesInput for review of sustainable business strategy and identification of ESG risks and opportunitiesList of the areas of action and enablers for sustainability plus further poten

166、tial significant sustainability issuesStakeholder surveyExpert interviewsInside-outEvaluation of the effects of business activities onsustainability issuesOutside inMeasurement of the effects of the sustainability issues on business activitiesValidationDocument analysisImpact measurement20Sustainabi

167、lity Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceSustainability managementMateriality analysis GRI 3-1/-2 A comprehensive materiality analysis was carried out in 2021 in order to determine which sustainability topics are particularly relevant for the Mercedes-Benz Group

168、 and its stakeholders.This was completed in 2022.This materiality analysis addressed the six strategic areas of action as well as further potentially relevant sustainability topics and trends.A total of 17 topics were evaluated,and these were further divided into sub-topics.In its analysis,the Merce

169、des-Benz Group considered two perspectives:Inside out:The positive or negative influences of the Groups business activities on the economy,the environment and society are brought into focus.Outside in:The impact of external requirements and expectations of the Groups sustainability performance on it

170、s business activities,business results and general situation is considered.The analysis consisted of several components.The basis for assessing the relevance of the sustainability topics and trends was a comprehensive desk analysis and an international online survey.The survey queried approximately

171、15,000 people from 52 countries who depicted relevant stakeholder groups such as employees,private and business customers,interested consumers,suppliers and business partners,investors,politicians and government officials,scientists,and representatives of government administrations and non-governmen

172、tal organisations(NGOs).In addition,the Mercedes-Benz Group conducted around 20 interviews with both internal and external experts from the aforementioned stakeholder groups.Procedure for materiality analysisInside outOutside inClimate protection and adaptionIntegrity and complianceResponsible corpo

173、rate transformationRespecting human rightsTraffic safetySustainability-oriented corporate cultureEmissions reductionEmployee health and safetyDiversity and equal opportunityStakeholder relationsand partnershipsCorporate citizenshipData responsibility Corporate governanceSocietyEnvironmentEmployeesRe

174、source conservationSustainable mobilitySustainable corporate governanceSustainable investment Sustainable customer value proposition0.51.00.51.0Topic clusters with significantly higher rankings compared to 2020Topic clusters that include important emerging issues1 For readability,the graph shows a s

175、ection of the materiality matrix.2 The marked lines on the x and y axes show the materiality threshold set by the Mercedes Benz Group,above which topics for this Sustainability Report were classified as material.21Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governa

176、nceThe goals here were to assess the sustainability performance of the Group to date and identify sustainability trends in order to gauge the relevance of the sustainability topics.The Mercedes-Benz Group also took the first steps to evaluate the effects of its business activities on the environment

177、 and society.The results were taken into account when assessing the relevance of topics in the inside-out dimension.In order to assess topics from an outside-in perspec-tive,the Mercedes-Benz Group analysed the reporting of relevant competitors on their business development and sustainability perfor

178、mance,the media reporting on selected sustainability topics over a longer time period,central NGO positions,regulatory requirements,as well as information relevant to the capital market,and had these weighted by the stakeholder groups according to their relevance.In a subsequent step,the sustainabil

179、ity topics that resulted from this analysis were assessed by the Mercedes-Benz Group with regard to financial position,liquidity,cash flows,profitability and business development in order to define the topics for the Non-Financial Declaration.Non-Financial declaration,AR 2022The materiality analysis

180、 thus conforms with the reporting requirements of the Global Reporting Initiative(GRI)and the CSR Directive Implementation Act(CSR-RUG).Materiality matrix1,2Topic cluster Topics Sustainable corporate governanceEmbedding sustainability in the management of the company across the value chainConsiderat

181、ion of environmental and social risks(ESG)in risk managementEmbedding sustainability in the business strategySustainability as a criterion for remunerationResponsible tax payment and handling of public fundingTransparent reporting on sustainability mattersClimate protection and adaptationZero-emissi

182、on vehicles/Electric mobilityLow carbon vehiclesDecarbonising production and further business activities of the Mercedes-Benz GroupClimate protection in the supply chain Green charging of e-vehiclesClimate adaptation of Mercedes-Benz sites and operationsEmission reductionLow-pollutant vehiclesLow-po

183、llutant productionNoise controlResource conservation Energy efficiency and renewable energiesSustainable use of waterPrevention of pollution from waste Nature conservation and biodiversityMaterial efficiency and use of sustainable materials Circular economyResource conservation in the supply chain S

184、ustainable mobilitySustainable mobility systemsAccess to mobilitySustainable logisticsExpansion of the charging infrastructure22Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceThe materiality matrix shows the topics according to their relevance:“Climate prote

185、ction and adaptation”,“Emission reduction”and“Resource conservation”have the highest importance based on the analysis and the stakeholder survey.The same applies to the thematic complexes of“Respecting human rights”and“Sustainable mobility”,which have become even more relevant.This confirms the Grou

186、ps own strategic fields of action.A new addition is the topic complex“Responsible corporate transformation”.The results of the materiality analysis were discussed in depth with all responsible departments and were presented to the Group Sustainability Board(GSB).They provide an important basis for c

187、ritical consideration and further development of the sustainable business strategy.In addition,the Mercedes-Benz Group bases its identification of sustainability-related opportunities and risks on the topics identified in the materiality analysis.The Mercedes-Benz Group discloses significant ESG ris

188、ks and opportunities in the Risk and Opportunity Report included in the Annual Report.Risk and Opportunity Report,AR 2022Topic complex and topicsTopic cluster Topics Traffic safetyVehicle safetySafe road trafficAutomated drivingData responsibilityData protectionCyber security Responsible use of Arti

189、ficial IntelligenceData-based solutions for sustainable mobilityRespecting human rightsRespecting human rights in own entitiesHuman rights due diligence in the supply chainHuman rights due diligence in salesIntegrity and complianceCompliance with laws and regulationsIntegrityIntegrity in business pr

190、actices of suppliers and business partnersResponsible corporate transformationResponsible and sustainable employmentCorporate co-determination Education and trainingEmployee health and safetyWorkplace health promotionOccupational health&safetySustainability-oriented corporate cultureLeadership cultu

191、reModern types of employment and working timesDiversity and equal opportunitiesDiversity in the workforce Adequate remunerationConsideration of diversity in the development and marketing of products and servicesStakeholder relations and partnershipsPolitical dialogue at national and international le

192、velStakeholder dialogue at company levelLocal and regional stakeholder dialogueCorporate citizenshipCompany-run projects for the community(commitment to location)Employee engagement and volunteeringWorldwide promotion of projects run by non-profit organisations and foundations within the scope of gl

193、obal responsibilitySustainable customer value propositionCustomer awareness of sustainabilityTransparent labelling of products and servicesSustainability of sales networkSustainable investmentMercedes-Benz as a sustainable opportunity for investmentMercedes-Benz as a sustainable investor23Sustainabi

194、lity Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceMercedes-Benz AGDivisional Strategy LeadersGroup Strategy,Communication,External Affairs,Human Resources,Investor Relations,Accounting&Financial ReportingGroup Sustainability Board(GSB)Business units&functionsFeedback&gui

195、danceprogress reportSustainability Competence Office(SCO)progress reportcoordinatescoordinatescoordinatesGroup Research,Sustainability&RD FunctionsBoard of ManagementMercedes-Benz Group AG Central FunctionsMercedes-Benz Mobility AGChairpersons:-Renata Jungo Brngger,Member of the Board of Management

196、for Integrity and Legal Affairs-Markus Schfer,Member of the Board of Management,Chief Technology Officer,Development&ProcurementMembers of the Board of ManagementCompliance,Legal Product&Technology&Sustainability24Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governa

197、nceManaging sustainability GRI 2-1/-6/-9/-11/-12/-13/-14/-18/-19/-20 GRI 303-1 Mercedes-Benz GroupAG is responsible for the Group governance and provides services for all corporate entities.As the parent company,it also defines the strategy of the Mercedes-Benz Group.It decides on strategically impo

198、rtant matters in its operational business and ensures regulatory,legal and compliance functions throughout the Group.The Groups own governance structure consists of the Board of Management and the Supervisory Board and corresponds to the dual management structure required for a joint stock company u

199、nder German law.The Board of Management manages the Mercedes-Benz Group,while the Supervisory Board monitors and advises the Board of Management.The two bodies work together very closely in the interests of the well-being of the Group.The Mercedes-Benz Group adheres to the German Corporate Governanc

200、e Code,as documented by the annual Statement of Compliance.Statement of Compliance 2022The remuneration for the Board of Management and Level 13 executives,as well as for Level 4 managers in some cases,includes both financial and sustain-ability targets in the form of the variable components of the

201、company bonus.These consist primarily of transformation targets including those involving CO2 emissions,due diligence obligations in raw material procurement,and traffic safety in addition to further non-financial targets.These targets relate to the top-ics of customers,integrity and employee commit

202、ment and diversity.In addition,the Mercedes-Benz Group defines further criteria in the areas of the environ-ment,social concerns and governance in order to determine the annual bonus for the Board of Manage-ment and senior executives.Since 2020,this has also included the achievement of CO2 fleet tar

203、gets.Remuneration Report 2022 Annual Report 2022The Mercedes-Benz Group manages the work in the strategic areas of action alongside other tasks by means of an internal reporting process that uses detailed scorecards.This process is supported by Governance25Sustainability Report 2022.Mercedes-Benz Gr

204、oupGovernance.Sustainable corporate governanceclear lines of responsibility in the management and organizational structures used at all of the divisions.The Group Sustainability Board(GSB)is the central management body for all sustainability topics and reports to the Board of Management.The GSB is c

205、haired jointly by Renata Jungo Brngger(the Board of Management member responsible for Integrity and Legal Affairs)and Markus Schfer(the Board of Management member responsible for Development and Procurement,who is also the Chief Technology Officer).The Chairman of the Board of Management and all oth

206、er Board of Management members,as well as the managers of all relevant functions and departments,are members of the GSB for example Finance,Investor Relations,External Affairs,Marketing&Communications and Human Resources.The management processes with cross-divisional and functional relevance in rela

207、tion to sustainability are covered by this governance structure in order to regularly review and improve the Mercedes-Benz Groups performance.The GSB decides on relevant sustainability issues and assigns tasks to the respective areas of responsibility.The GSB regularly submits progress reports and p

208、roposals for decisions to the Board of Management regarding the action fields included in the Groups sustainable business strategy.The Supervisory Board monitors and advises the Board of Management in its deliberations relating to the transformation targets,which also include non-financial and susta

209、inability-related targets.The operational work is done by the Sustainability Competence Office(SCO),which consists of experts from the units managed by the two Co-chairs of the GSB as well as additional specialists from Corporate Strategy,Finance and Corporate Communications.The SCO provides advice

210、to the specialist units and helps them complete the tasks assigned to them by the GSB.The SCO also monitors the progress made in the six areas of action and the three enablers defined in the sustainable business strategy.The results are reported to the GSB and the Board of Management of Mercedes-Ben

211、z Group AG in the form of detailed scorecards at least twice a year.An internal dialogue format(“Sustainability Forum”)has been established to strengthen the exchange between the SCO at the Groups headquarters in Stuttgart-Untertrkheim and the specialists at the various national and international co

212、mpanies.The forum focuses on information and dialogue on current developments of the sustainable business strategy,the associated goals as well as the six fields of action and three enablers.In addition,there is an active exchange of information and knowledge on developments in the different countri

213、es and national companies as well as on best-practice approaches.The Mercedes-Benz Group has also developed specific training measures to encourage employees in sales branches to adopt sustainable practices.Since 2021,for example,it has regularly offered online sales training to promote the economic

214、al use of resources such as water and electricity.More sustainable sales operationsThe Supervisory Board of Mercedes-Benz GroupAG monitors the implementation of the sustainable business strategy.It is therefore important that the Supervisory Board and its committees are adequately informed about the

215、 sustainability issues related to the environment,society or corporate governance(ESG).To ensure this,ESG topics are regularly addressed at the Supervisory Board meetings.ESG experts from different departments are consulted for this purpose.ESG-related topics were also discussed during the strategy

216、meeting of the Supervisory Board.In addition,the members of the management and supervisory bodies regularly discuss the progress made in implementing the sustainable business strategy with the Advisory Board for Integrity and Sustainability.On the Supervisory Board,Dame Polly Courtice in particular

217、contributes her extensive expertise in the area of sustainability at various points.Advisory Board as an important driving forcePolicies,standards and principles GRI 2-23-/24 Integrity,compliance and legal responsibility are cornerstones of sustainable corporate governance and are obligatory for the

218、 actions of all employees of the Mercedes-Benz Group.The central requirements for this are set out in the Groups Integrity Code.This is supplemented by other in-house principles and policies.26Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceThe“House of Polic

219、ies”is the digital platform for policies.All internal policies and works agreements at the Mercedes-Benz Group are stored here in a user-friendly database,which is accessible to all employees.The policies are available in several languages.Employees can also access compact web-based training on poli

220、cies,while Group companies can access advice on local policy implementation.The Mercedes-Benz Group also uses the ten principles of the UN Global Compact(UNGC)as a fundamental guide for its business activities.As a founding member,it is strongly committed to the UN Global Compact(UNGC).The Mercedes-

221、Benz Groups internal principles and policies are founded on this international frame of reference and other international principles,including the Core Labour Standards of the International Labour Organisation(ILO),the OECD Guidelines for multinational enterprises and the UN Guiding Principles on Bu

222、siness and Human Rights.Risk and opportunity management GRI 2-12/-23/-24/-25 GRI 3-3 GRI 413-2 The Mercedes-Benz Group is exposed to a large number of risks that are directly linked with the business activi-ties of Mercedes-Benz GroupAG and its subsidiaries or that result from external influences.Th

223、e Mercedes-Benz Group defines risk as the danger that events,devel-opments or actions will prevent the Group or one of the business divisions from achieving their goals.This includes monetary and non-monetary risks.At the same time,it is important to identify opportunities in order to safeguard and

224、enhance the competitive capability of the Mercedes-Benz Group.The Group defines an opportunity as the possibility of securing or exceeding the planned goals of the Group or a business division asa result of events,developments or actions.In order to identify these risks and opportunities at an early

225、 stage and assess and manage them systematically,adequate and effective management and control systems,which are clustered into a risk and opportunity management system,are applied.Opportunities and risks are not offset.The risk management system is intended to systemati-cally and continually identi

226、fy,assess,control,monitor and report risks threatening the Mercedes-Benz Groups existence and other material risks in order to sustainably support the achievement of the corporate targets and to enhance risk awareness at the Group.The risk management system is integrated into the value-based managem

227、ent and planning system of the Mercedes-Benz Group and is also an integral part of the overall planning,management and reporting process in the legal entities,divisions and corporate functions.The opportunity management system at the Mercedes-Benz Group is based on the risk management system.The obj

228、ective of opportunity management is to recognise the possible opportunities arising in business activities early on and to use them in the best possible way for the benefit of the Group.This should result in planned targets being met or exceeded.As part of the planning process,risks and opportunitie

229、s are recorded within an observation horizon of up to five years.Strategic risks and opportunities are also consid-ered in the risk and opportunity management process.The employees responsible for risk management have the task of defining and,if necessary,initiating measures for the identification,a

230、ssessment,avoidance or mitigation of risks or for the protection of the Group against such risks.In the context of opportunity man-agement,measures are to be taken for seizing,improv-ing and(fully or partially)realising opportunities.Firm integration of sustainability-related risks and opportunities

231、Risk and opportunity management is a firm component of the Group-wide planning,controlling and reporting process.It is designed to support the sustained achievement of the corporate targets and to ensure risk awareness at the Mercedes-Benz Group.In identifying sustainability-related risks and opport

232、unities,Mercedes-Benz Group is guided by the topics identified by the materiality analysis and thus includes the areas of action of the sustainable business strategy,for which concrete goals have been assigned.Sustainability-related risks and opportunities are understood to be conditions,events,or d

233、evelopments involving environmental,social or governance factors(ESG),the occurrence of which may have an actual or potential impact on the Mercedes-Benz Groups profitability,liquidity and capital resources.This further includes any risks and opportunities whose 27Sustainability Report 2022.Mercedes

234、-Benz GroupGovernance.Sustainable corporate governanceoccurrence may have a positive or negative impact on the economy,the environment,or society.Sustainability aspects as they relate to the environment include,among other things,the effects of climate conditions and changes,as well as the impact of

235、 the Groups transformation process as a result of changed political conditions,technological developments and changing markets.Labour law standards,occupational and product safety,product liability and suppliers compliance with labour law standards are examples of circumstances categorized as social

236、 issues.The area of governance is concerned with matters such as honesty in tax affairs,measures taken to prevent corruption,and ensuring data protection.ESG-related risks and opportunities associated with the Mercedes-Benz Groups own business activities,business relationships and products and servi

237、ces,and which are very likely to have a serious negative impact on the non-financial aspects in accordance with Sections 315c,289c of the German Commercial Code(HGB),are not currently apparent.Climate-related risks and opportunities in connection with the recommendations of the Task Force on Climate

238、-Related Financial Disclosures(TCFD)are environment factors and are thus also identified and assessed as part of the risk management process.Further information can be found in the Risk and Opportunity Report.Risk and Opportunity Report,AR 2022Communicating and assessing risks and opportunities GRI

239、2-12/-18 The organisational embedding of risk and opportunity management is carried out by the risk management organisation established at the Group.The responsibility for operational risk management and for the risk man-agement processes is borne by the divisions,corporate functions,organisational

240、units and companies.They report on the concrete risks and opportunities at regular intervals to their superordinate units.Unexpectedly occurring material risks must be promptly reported.The information for reporting to the Board of Management,Audit Committee and Supervisory Board is passed on to cor

241、porate risk management by the business divisions.The Group Risk Management Committee(GRMC)is responsible for ensuring the continuous improvement and evaluating the efficiency and effectiveness of the risk management system.The GRMC is composed of representatives from the Accounting&Financial Report-

242、ing,Legal Affairs,Compliance and Group Security units,as well as the members of the Board of Management of Mercedes-Benz GroupAG,Mercedes-BenzAG and Mercedes-Benz MobilityAG responsible for Finance,and is chaired by the members of the Board of Man-agement of Mercedes-Benz GroupAG responsible for Fin

243、ance&Controlling,Mercedes-Benz Mobility,and Integrity and Legal Affairs.Corporate Audit contributes significant findings through the internal controlling and risk management system.Dialogue with stakeholders GRI 2-12/-16/-29 The Mercedes-Benz Group attaches great importance to engaging in a dialogue

244、 with its interest groups.This dialogue enables it to look at its sustainability commitment from different angles,to identify and pick up on new trends and to exchange experiences.It also aims to engage in discussions of controversial topics at an early stage.The key concern for the Mercedes-Benz Gr

245、oup is to be part of a dialogue that is fruitful and productive for all parties involved.The prerequisite is that the Mercedes-Benz Group knows its stakeholders.Stakeholders are individuals and organisations that have legal,financial,ethical or ecological claims on or expectations of a company.Wheth

246、er an individual,organisation or group is a stake-holder of a company depends on the extent to which decisions of the company influence them or,conversely,the extent to which they can influence the companys decisions.Based on this,the Mercedes-Benz Group has identified customers,employees,investors

247、and suppliers as its primary stakeholders.In addition,the Mercedes-Benz Group regularly exchanges views with civic bodies such as non-governmental organisations.The Group also maintains contact with associations,trade unions,the media,analysts,local authorities,people from the surrounding neighbourh

248、ood of the companys locations,and figures from the worlds of science and politics.Mercedes-Benz Sustainability Report and regional reports Groups website Employee portal and additional internal communication channels Press and public-relations work Blogs and social media Plant tours,receptions,Merce

249、des-Benz Museum Environmental declarations by the plants Capital market communication“Climate Policy Report”Sustainability rankings and ratings Annual Sustainability Dialogue(Germany/regions)Local dialogue with residents and municipalities Internal dialogue sessions on integrity and compliance Suppl

250、ier Portal Involvement in sustainability initiatives and networks Specialist conferences on social topics and debates Topic-and project-related discussions Dialogue formats on future-oriented questions:think tanks,hackathons,idea competitions“The Sustainability Forum”Capital market events:capital ma

251、rket days,investor conferences,roadshows Stakeholder consultation in topic-related working groups Advisory Board for Integrity and Sustainability Peer review within the framework of sustainability initiatives such as the UN Global Compact and the Global Reporting Initiative InformationDialoguePartic

252、ipation28Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceIn order to implement dialogue with its stakeholders across the organisation,the Mercedes-Benz Group has defined clear responsibilities and communication channels for this process and established specif

253、ic forms of dialogue.The various dialogue formats are initiated by experts from Integrity and Legal Affairs or other departments such as External Affairs(EA).Dialogues and events Memberships,associations and initiativesThe Mercedes-Benz Group makes use of various formats in order to engage in dialog

254、ue with relevant stakeholders.Among other things,it organises annual“Sustainability Dialogue”events and conducts stake-holder surveys as well as expert conferences and thematic exchanges for example in the form of workshops or through the Advisory Board for Integrity and Sustainability.In addition,i

255、t monitors current public discussions and gathers information about related expectations by participating in sector-specific and cross-sector networks and initiatives.Studies and other scientific publications are also evaluated and internal media analyses undertaken.These measures help the Group to

256、identify developments and the associated expectations in areas beyond the dialogue events that it has initiated at an early stage.The Mercedes-Benz Group aims to strengthen trust in the Mercedes-Benz brand with innovative and signifi-cantly more sustainable solutions,as sustainability is one of the

257、brand promises of Mercedes-Benz.It guides the Group as a key operating principle,not only in strategic decisions but also in direct customer con-tact.The aim is to inspire customers with respect to sustainability and make it tangible for them at every touchpoint.The Net Promoter Score(NPS)is a fixed

258、 element of the Mercedes-Benz Groups customer satis-faction measurement for the overarching evaluation of customer satisfaction:with this internationally recog-nised indicator,customers are asked how likely they are to recommend a company or a brand to people close to them.The Mercedes-Benz Group al

259、so uses the NPS as part of the remuneration component.Sustainability DialogueAn important instrument for implementing these goals is the communication with stakeholders in the form of the Sustainability Dialogue,which has been held annu-ally in Stuttgart since 2008 and brings various stake-holder gr

260、oups together with members of the Board of Management of Mercedes-Benz Group AG and executive management.The participants attend a range of work-shops,where they discuss selected issues related to Exemplary instruments of the Stakeholder Management approach29Sustainability Report 2022.Mercedes-Benz

261、GroupGovernance.Sustainable corporate governancesustainability and work together to further develop their approaches.The experts responsible for specific topics take up the momentum generated by the participants and work together with the stakeholders to incorporate these ideas into their work.They

262、then report on the progress achieved at the following years event.The Mercedes-Benz Group held the Sustainability Dia-logue as a hybrid event in 2022.More than 200 external and internal participants in a total of seven working groups engaged in discussions of various topics both on-site in Sindelfin

263、gen and online and also participated in a public stakeholder dialogue.In addition,organizational and thematic preparations were made for the Sustainability Dialogues in China and India scheduled for early 2023.Advisory Board as an important driving forceThe Advisory Board for Integrity and Sustainab

264、ility has been providing support for the companys sustainability work since 2012.The boards members are independent external specialists from the fields of science and busi-ness,as well as from civic organizations,and include experts who possess specialized knowledge regarding environmental and soci

265、al policy,the development of transport,traffic and mobility,and human rights and ethi-cal issues.The members of the Advisory Board support the Mercedes-Benz Group with constructive criticism on questions related to integrity and corporate responsibility.The Advisory Board convenes several times a ye

266、ar in meetings that are chaired by the member of the Board of Management responsible for Integrity and Legal Affairs.One of these meetings specifically serves to share information with other members of the Board of Management and members of the Supervisory Board.As part of a Sustainable Strategy Wee

267、k,the responsible managers from the various specialist units meet with the Advisory Board members to discuss the areas of ac-tion and enablers identified in the sustainable business strategy and also talk about targets,strategies,mea-sures and the results achieved with these.The Advisory Board also

268、holds regular meetings with managers and other employees to discuss specific topics.Two new working groups were established in the reporting year in order to strengthen this dialogue.The goal here is to promote more extensive discussions on the topics of“Integrity and employees”and“Climate change mi

269、tiga-tion and resource conservation”.In 2022,the Advisory Board also addressed,among other things,the new Corporate Citizenship Strategy,the social dimension of sustainability and its impact on the Mercedes-Benz Group,and the topic of climate neutrality.Sustainable investmentThe strong demand for ES

270、G funds among institutional and private investors leads to a demand for more trans-parency on how ESG factors are taken into account in asset management and investment decisions.At the same time,this offers companies an added opportunity to differentiate themselves in the competition for equity and

271、debt capital by demonstrating a sustainable business strategy,ambitious goals and transparent ESG reporting along the entire value chain.A variety of reporting frame-works are now available to provide this evidence.For example,investors expect companies to publish reports conforming to standards suc

272、h as those of the TCFD(Task Force on Climate-related Financial Disclosure)and the SASB(Sustainability Accounting Standards Board).The International Sustainability Standards Board (ISSB)also developed a global minimum standard for sustainability reporting in 2022,which is to be used from the 2023 rep

273、orting year.The extent of legal dis-closure obligations is also increasing for investors,for example,through the Sustainable Finance Disclosure Regulation(SFDR)for companies,for example,through the EU taxonomy,the Corporate Sustain-ability Reporting Directive(CSRD)and the European Sustainability Rep

274、orting Standards(ESRS).The ESG reporting is thus becoming increasingly more complex and demanding.The external reporting of the Mercedes-Benz Group focuses on the reporting standards relevant to the Groups investors(including TCFD,SASB and GRI).Meanwhile,the Mercedes-Benz Group continuously monitors

275、 the way in which the ESG reporting requirements of its capital providers are evolving and reviews their implementation in its own reporting.TCFD reference table SASB reference table30Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceFinancing the sustainable b

276、usiness strategyThe implementation of the Mercedes-Benz Groups sustainable business strategy requires a major amount of investment.For this reason,one of the Groups goals is to ensure that its securities are viewed by the capital market as a sustainable investment.To this end,the Mercedes-Benz Group

277、 maintains a continuous dialogue with players on the capital market as representatives of investors in equity and debt.Various platforms are used here.In 2022,the Mercedes-Benz Group presented this approach to investors and analysts at its first digital ESG conference(Environmental,Social and Govern

278、ance).The Investor Relations&Treasury unit at Mercedes-Benz Group AG works closely together with the companys in-house sustainability departments and is also integrated into the relevant committees.This is how the Mercedes-Benz Group is responding to the fact that sustainable investment has become a

279、 central investment strategy in particular for institutional investors,who set especially high standards of transparency for external reporting according to ESG criteria.In the reporting year,Mercedes-Benz Group AG converted the existing credit line of 11 billion into a sustainability linked loan(SL

280、L).In this way,the company links its credit line to sustainability achievements in the area of climate change mitigation for example,the global share of all-electric vehicles in the Mercedes-Benz fleet.The arrangement fee for the existing credit line is reduced if the Mercedes-Benz Group achieves th

281、e selected sustainability targets.With this transformation,the company also continues to implement its“Ambition 2039”in the area of sustainable financing.Ratings and green bondsESG rating agencies such as MSCI,Sustainalytics,ISS ESG and CDP are additional important players in the capital market and

282、in the sustainability-oriented investment process.Today the rating and ranking results of most providers are made available to the public and serve as an additional source of information for many investors.Among other things,the Mercedes-Benz Group has therefore been using the CDP framework for more

283、 than 15 years to disclose data on climate-related activities,and once again reached the leadership category in the reporting year with an A rating.Since 2021,the Mercedes-Benz Group has also reported its water-relat-ed activities in the separate CDP Water Questionnaire and was able to achieve an B

284、rating rating in the report-ing year.In 2022,it once again received an A rating from MSCI.Sustainalytics continues to rank it strongly in its peer group of automobile manufacturers.The Groups ISS ESG rating once again corresponded to the best pos-sible rating in the automotive sector(Prime Status C+

285、).The various specialist units of the Mercedes-Benz Group work closely together with the aim of providing the rating agencies with adequate information.The Group intends to continue the ongoing development of its external reporting,close any gaps and initiate internal change processes.In 2020,the Gr

286、oup developed a Group-wide Green Finance Framework in order to position the Mercedes-Benz Group even more effectively as a sustainable company worthy of investment and to enable it to utilize ESG-based capital for its business development.It makes it possible for the Group to finance investment targ

287、eted at the development,production and customer financing of all-electric vehicles through bonds and loans,for example.The Mercedes-Benz Group has issued green bonds in September 2020 and March 2021.In November 2022,Mercedes-Benz Group issued its first green bond outside the European market as a gre

288、en panda bond in China.The framework is based on the Green Bond Principles(the voluntary process guidelines of the International Capital Market Association ICMA)and the Green Loan Principles,which are the joint voluntary process guidelines of the Loan Market Association(LMA),and the Asia Pacific Loa

289、n Market Association(APLMA).It is planned to be developed to be consistent with the significant contribution to the environmental objective of climate change mitigation under the technical screening criteria of the EU taxonomy.In addition,the Mercedes-Benz Group strives for the certification with th

290、e highest rating-“Dark Green”-for the planned 2023 framework update from the respected Centre for International Climate and Environmental Research(CICERO).Green finance second option31Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceSustainable investment of p

291、ension fundsThe Mercedes-Benz Group operates as an investor itself when it invests the companys pension assets.ESG criteria are also playing an increasingly important role in this area.For German pension assets,the following objectives have been defined for the consideration of ESG criteria:Creation

292、 of transparency in dealing with sustainability aspects,exploitation of opportunities from sustainable developments and the appropriate consideration of sustainability risks.For the majority of German pension assets the investments are made by asset managers to whom the Mercedes-Benz Group issues in

293、dividual mandates.In coordination with the Investment Committees,the Mercedes-Benz Group pays,as part of its sustainability concept,increased attention to the consideration and transparency of sustainability aspects in the investment process.In addition,the risk and return aspects associated with su

294、stainable investments are also taken into account.For liquid asset classes of the German pension assets,the Mercedes-Benz Group only works with investment managers who have signed the UN Principles for Responsible Investment.It also uses a negative list to exclude investing in companies and countrie

295、s that do not fulfil the Groups core requirements.Furthermore,the Mercedes-Benz Group focuses on gradually integrating sustainability aspects via benchmarks or sustainability performance indicators,for example into its mandates.In 2022,the Mercedes-Benz Group also further expanded its ESG-themed inv

296、estments and took its first steps to create an internal reporting system for various sustainability metrics for its German pension assets.The measures implemented as part of the Groups sustainability concept are regularly assessed and adapted to current developments.Sustainability is also one of the

297、 investment principles of Daimler PensionsfondsAG.In other countries,the Group takes country-specific requirements into account.Tax obligation GRI 3-3 GRI 207-1/-2/-3 The Mercedes-Benz Group views itself as a responsible company that endeavours to meet all of its global tax obligations and use publi

298、c funding responsibly.In this way,the Group can also fulfil its social and ethical responsibilities.The Groups tax strategy operates according to the following principles in particular:With efficient,high-quality and reliable expertise,processes,systems,methods and controls,the Mercedes-Benz Group w

299、ants to ensure that the tax ob-ligations of the Group companies are met and integrity standards are maintained.In line with the principle of being a good corporate tax citizen(i.e.fulfilling its resonsibility as a taxpayer),the Mercedes-Benz Group conducts legal,proactive and non-aggressive tax plan

300、ning activities on the basis of economic considerations(“tax follows business”).The Mercedes-Benz Group also strives to work coopera-tively,transparently and constructively with the tax authorities.In this process,it maintains its legal stand-points and defend its interests wherever it believes such

301、 actions are appropriate and legitimate.The Group tax strategy drawn up by the board of management of the Mercedes-Benz Group AG defines the limits of action here,and this strategy is further specified and implemented by means of organizational and content-related policies,guidelines and instruction

302、s.The tax strategy is regularly reviewed for appropriate adjustments.The tax policies define the responsibilities,tasks and obligations of those individuals at the Group who deal with tax issues,and also contain specific provisions for ensuring that legal requirements are met,thus raising the awaren

303、ess of tax issues among employees.Management is kept informed about relevant tax issues by means of monthly reports and regular communications,as well as when required.Moreover,it is involved in compliance processes:Regular communication between CFO and Head of Taxes Regular information to the Super

304、visory Board on risks and opportunities as well as current regulatory issues32Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceThe Code of Conduct stipulates that all intentional violations of external and/or internal tax guidelines must be reported and invest

305、igated.The same applies to any failure to make corrections to procedures performed in an erroneous manner,as outlined in our internally valid Treatment of Violations Policy.The whistleblower system BPOThe Mercedes-Benz Group has established a Tax Compliance Management System(Tax CMS)in order to ensu

306、re effective tax compliance throughout the Group.The Tax CMS is a separate sub-unit of the general intra-Group Compliance Management System.The Tax CMS also operates an active tax-risk management system that is consistently applied throughout the Group in order to monitor and check whether tax oblig

307、ations are being fulfilled,and also to support those responsible for ensuring such fulfilment.Another goal here is to identify and reduce tax risks at the Group,and thus the associated personal risks that may be faced by the employees active in this area.The system includes numerous measures for exa

308、mple,continuous monitoring of tax risks and the incorporation of tax risk issues into the internal control system and the Group-wide risk management process in line with the companys risk management policy.The Mercedes-Benz Group did not become aware of any criminally relevant material violations of

309、 tax laws during the reporting year.Compliance management33Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governanceOne of the important goals of the Commission Action Plan on Financing Sustainable Growth in the context of the European Green Deal is to divert capital

310、flows to sustainable investments.This is also the logic behind the EU taxonomy regulation(EU 2020/852)that came into force in mid-2020.This regulation governs the establishment of a standardized and legally binding classification system that defines which economic activities in the EU are considered

311、 to be aligned with the taxonomy and thus environmentally sustainable with regard to the six environmental objectives established by the regulation.Climate change mitigation Climate change adaptation Sustainable use and protection of water and marine resources Transition to a circular economy Pollut

312、ion prevention and control Protection and restoration of biodiversity and ecosystemsCompanies that are required to publish a Non-Financial Declaration must also comply with the taxonomy regulation.According to Article 8 of the taxonomy regulation,the taxonomy-aligned proportions of revenue,capital e

313、xpenditure and operating expenditure accounted for by environmentally sustainable economic activities are to be reported on an annual basis.Taxonomy eligibilityTaxonomy eligibility is assessed in an initial step.For an economic activity to be taxonomy-eligible,that activ-ity must be mentioned and ex

314、plained in further detail in the delegated acts for the taxonomy regulation.Descriptions of relevant activities and technical screen-ing criteria are currently available as delegated act(EU 2021/2139)for the first two environmental objectives(climate change mitigation and climate change adapta-tion)

315、.Climate change mitigation in particular is to be regarded as the relevant environmental objective for the Mercedes-Benz Group.On the basis of the descriptions contained in the delegated act relating to climate change mitigation,the following taxonomy-eligible economic activities have been identifie

316、d for the Group:Economic activity 3.3:encompasses manufacture of low-carbon transport technologies in connection with the production of cars and vans Economic activity 6.5:encompasses leasing and financing of low-carbon cars and vans Economic activity 6.6:encompasses leasing and financing of low-car

317、bon trucksIn a final Interpretation Document that the European Commission published on 6 October 2022,the Commis-sion stated that the term“low-carbon”only relates to the assessment of taxonomy alignment within the framework of the technical screening criteria and is not relevant for reporting on tax

318、onomy eligibility.With regard to automak-ers in particular and as an example,the document shows that the activity“manufacture of low-carbon vehicles”also includes vehicles with combustion engines.For the Mercedes-Benz Group,this clarification by the European Commission means that the manufacture of

319、all Group vehicles is reported as taxonomy-eligible.Economic activity 6.5 relates to leasing and sales financing of all vehicles purchased from third parties.Economic activity 6.6 mainly comprises the continuing Daimler Truck portfolio at Mercedes-Benz Mobility.Economic activities in certain energy

320、sectors as specified in the complementary delegated act to climate objectives exist at Mercedes-Benz Group only to an immaterial extent and exclusiviely serve the operation of economic activity 3.3.EU taxonomy34Sustainability Report 2022.Mercedes-Benz GroupGovernance.Sustainable corporate governance

321、Taxonomy alignmentIn a further step,taxonomy alignment must be assessed for taxonomy-eligible economic activities.Only taxonomy-eligible activities can be considered as environmentally sustainable activities,or as being taxonomy-aligned,provided they meet certain technical screening criteria.Here,th

322、e fulfilment of certain technical screening criteria with regard to the relevant economic activities must make a substantial contribution to an environmental objective defined by the taxonomy regulation and,on the basis of defined“do no significant harm criteria”(DNSH criteria),also exclude the poss

323、ibility of significant interference with another environmental objective.It must also be ensured that minimum standards are met with regard to issues such as upholding human rights or combating corruption(minimum safeguards).Fulfilment of a substantial contribution to the climate change mitigation e

324、nvironmental objectiveAccording to the delegated act,all vehicles complying with the limit value of 50g CO2/km per vehicle(in accordance with the WLTP)as defined in the technical screening criteria make a substantial contribution to the climate change mitigation environmental objective.At Mercedes-B

325、enz Group all-electric vehicles as well as the majority of plug-in hybrid vehicles are below this threshold.These vehicles are referred hereafter to as“low-carbon vehicles”.Exclusion of the possibility of significant interference on the basis of the“do no significant harm criteria”Compliance with DN

326、SH criteria is used in a second step to demonstrate that the economic activities in question do not significantly interfere with other environmental objectives.In connection with economic activity 3.3,the fulfilment of these criteria was basically assessed at the level of those consolidated producti

327、on sites where low-carbon vehicles or associated components are currently being manufactured or will be manufactured in the future.In connection with economic activity 6.5,the analysis of the criteria has to be performed on the basis of the respective low-carbon vehicles.Climate change adaptation.A

328、climate risk assessment was conducted for relevant production sites in order to analyse physical climate risks on the basis of significant climate-related hazards.Adaptation measures were then evaluated on the basis of the identified risk exposure.The analysis took into account recognized scenarios

329、from the Intergovernmental Panel on Climate Change(IPCC),including one scenario that depicts the biggest physical impacts.Various time horizons(e.g.2040)and a trend analysis were examined.The verification of the DNSH criteria for economic activity 6.5 is essentially based on the consideration of rel

330、evant conditions of use and the environment,such as heat and cold requirements in the context of vehicle development and testing.Sustainable use and protection of water and maritime resourcesWith regard to the production of low-carbon vehicles,the Mercedes-Benz Group ensures fulfilment of the DNSH c

331、riteria mainly through the use of established environmental management systems and internal environmental risk assessments(environmental due diligence process).The company has established environmental management systems at its production sites around the world in accordance with EMAS or ISO 14001.T

332、hese environmental management systems are certified at regular intervals.As part of the internal environmental risk assessments,consolidated production sites are evaluated according to a number of factors,including those relating to water quality.Recommendations for minimizing risks are then drawn u

333、p and the progress is appropriately monitored.The Group also uses external data sources to identify sites that are subject to risks regarding water scarcity.Transition to a circular economyWith regard to economic activity 3.3,the EU taxonomy regulation requires an assessment and,if possible,the application of measures that promote the transition to a circular economy,including the use of secondary