Ambition2039: Mercedes Benz Cars increases transparency on CO2 emissions using blockchain technology

Mercedes-Benz is conducting a pilot project for transparency on CO₂ emissions in the cobalt supply chain as part of STARTUP AUTOBAHN. The project partners use blockchain technology to track the emissions of climate-relevant gases as well as the amount of secondary material along the complex supply chains of battery cell manufacturers. In addition, the data network documents whether the Daimler sustainability standards are passed on throughout the entire supply chain.

With “Ambition2039”, Mercedes-Benz Cars aims for a carbon neutral new passenger car fleet in less than 20 years. This transformation requires detailed knowledge of all climate relevant processes associated with the entire vehicle value chain. That is why in a first step, Mercedes-Benz is creating transparency of CO₂ emissions and the use of secondary material in the supply chain. In relation to this as part of STARTUP AUTOBAHN, the company has started a pilot project with a key battery cell manufacturer and Circulor, a start-up specializing in blockchain technology.
 

The project partners first focus on cobalt, which enters the supply chain from recycling facilities. A blockchain-based system maps the production flow of the materials as well as the associated CO₂ emissions. In the long term, Mercedes-Benz is pursuing the goal of a circular economy and is working to close material cycles. For this purpose, the mapping of the material flow also records the amount of recycled material in the supply chain. Furthermore, the network also displays whether Daimler’s sustainability requirements in terms of working conditions, human rights, environmental protection, safety, business ethics and compliance are passed on to all companies involved. Daimler calls on its direct suppliers to comply with these standards and requirements and also carry the provisions into upstream value chains and to monitor their compliance. With the pilot project, Mercedes-Benz is driving transparency in the supply chain beyond the direct contractual partners.

 

Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG, responsible for Group Research and Mercedes-Benz Cars Development, Procurement and Supplier Quality: “With Ambition2039, Mercedes-Benz Cars has set itself high goals. We can only get there in close cooperation with our suppliers. The key is transparency: It is our aspiration to make all processes transparent and traceable. We are the first manufacturer to use blockchain technology to map CO₂ emissions in the global battery cell supply chain. In doing so, we are laying the cornerstone for effective improvements – for the environment and for our businesses”.

 

Suppliers and partners play a key role in the implementation of the sustainability business strategy of Mercedes-Benz since they significantly contribute to value creation. The aim is to take into stronger consideration CO₂ savings and the environmentally sustainable handling of resources as it pertains to procurement. In parallel with the recording of emissions data, Mercedes-Benz Cars is conducting workshops with suppliers in order to identify effective CO₂ reduction measures. The focus of the commitment is initially on materials whose production is particularly CO₂ intensive. In addition to battery cells, this also includes steel and aluminium. As a first milestone, Mercedes-Benz will source battery cells from carbon-neutral production for the first time as part of a sustainability partnership with a battery cell supplier.