Suppliers are an important part of our production network. They can therefore make important contributions through their commitment to climate protection and resource conservation. Accordingly, we are also keen to raise awareness among our suppliers and support them on our path to greater environmental protection in the supply chain.
Our aim is to use the supply chain as an important lever for reducing our CO₂e-emissions in order to reduce the CO₂e-footprint of our products across the value chain and life cycle. Transparency regarding emissions in the supply chain is an important prerequisite for this.
Our ambition
We strive together with our direct suppliers for CO2e-neutral products and services in Europe, the USA and Japan by 2039 – and globally by 2050 CO2e-neutral.
Our path
Our measures for a green supply chain consider suppliers as our business partners, but they also consider the purchased parts and materials as well as the transport routes to our production plants.
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Transparency about the environmental impact of our vehicle parts supply chain
By anchoring sustainability standards in contractual terms with our direct suppliers, we can ensure binding environmental commitments. These could include environmentally friendly manufacturing, reductions in energy, water use and waste, as well as chemical and hazardous substance management. We require our global suppliers who supply us with production material to have a certified environmental management system in accordance with ISO14001, EMAS, or comparable standards.
We believe that only transparency will allow us to identify sustainability risks in the supply chain and verify compliance with our standards. That’s why we work with various tools such as the Sustainability Assessment Questionnaire ("SAQ") of the European Drive Sustainability initiative. This allows us to query all the relevant sustainability criteria and incorporate them into an assessment. The assessment is used as a mandatory criterion for new procurements when purchasing production material from a defined order volume.
In addition, last year we implemented the CDP supply chain program for the third time. Our suppliers are encouraged by the program to continuously improve their efforts at reducing CO2-emissions. In order to create transparency about their decarbonization strategies and CO2-reduction targets, we are also conducting many discussions with key suppliers. In addition, as part of our initiative work for Drive Sustainability, we also implement awareness-raising measures for our suppliers using web-based training. Among other things, environmental aspects such as energy consumption, emissions, and resource management are taught.
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Procurement of sustainable production materials
As a first step, we used life cycle assessments to determine the proportion of materials in our products and therefore know the main drivers of greenhouse gas emissions in the automotive supply chain. This is primarily the production of raw materials such as steel, aluminum, and plastics. In future, the emissions of materials are to be given greater consideration in new projects and contract award decisions. In order to promote the procurement of sustainable production materials, we will be using corresponding systematically integrate key figures such as CO2e-emissions into our business processes to achieve our goal of CO2e-neutrality by 2039. An increase in the recyclate quota can also support this.
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Inbound logistics
Our measures not only focus on the suppliers of materials and parts, but also cover the transport routes to our factories.
We are driving the transformation of the transport industry towards CO2e-neutral drives and are also relying on e-trucks in our own supply chain. We have set ourselves the ambitious objective of electrifying 100% of the delivery traffic to our largest assembly plant in Wörth by the end of 2026. A significant part of the direct supply chain can thus become CO2e-neutral. Together with logistics service providers and freight forwarders who supply the Wörth plant on a daily basis, we are working on the gradual integration of electrically powered trucks into our fleets. During the course of this process, the construction of our own charging infrastructure is also planned in Wörth, which will be available to both suppliers and the company’s own vehicles. Several selected carriers will be part of the pilot phase, which is expected to be implemented this year.
The first deliveries to the Wörth plant, including those from sister plants, are already expected to be completely electrical by the end of the coming year. In the next step, the plan is to extend the procedure to the other plants in our production network.
Our progress so far
- We require suppliers to comply with our environmental compliance standards and support them in continuously improving their environmental behavior.
- In 2022, we granted the Daimler Truck Supplier Award to those suppliers who have demonstrated outstanding performance in the area of sustainability.
Our next steps
We still have significant challenges to overcome on our journey to an emission-free green supply chain. These include our next milestones:
- We shall provide even greater transparency regarding CO2e-emissions in the supply chain and shall set targeted emission reduction measures together with our suppliers. We are also expanding the existing sustainability criteria for new purchasing decisions to include climate protection criteria.
- We are gradually expanding the use of green materials in our products.