Mercedes-Benz stock tracks new carbon targets and supply-chain push

Mercedes-Benz Group presented new sustainability targets on Tuesday, November 10, 2026, linking decarbonization more closely to vehicle development, production efficiency and supply-chain resilience. The company outlined the measures at its Sustainability Dialogue and Sustainability Update in Sindelfingen.

Mercedes-Benz stock traded at 41.99 euros on Lang & Schwarz at 12:17 CET on Tuesday, November 10, 2026, 0.31% above the Xetra close of Monday, November 9, at 41.86 euros. The quote places the share near the lower end of its recent trading range as investors weigh long-term product and cost priorities against a difficult automotive environment.

Targets Move Into Operations

In its sustainability update, Mercedes-Benz said it is targeting a 90% reduction in production emissions and an 80% cut in use-phase emissions by 2039, compared with 2019, subject to market conditions for the latter measure. Across the relevant value chain, the group aims to reduce carbon dioxide emissions by 70% by 2039. It intends to reach net zero by 2049 at the latest.

The strategy is organized around four areas from 2027: decarbonization, circularity, safety and people. Mercedes-Benz said the framework will be supported by binding targets, specific measures and resources integrated into business steering. That structure matters for shareholders because it ties environmental commitments to production efficiency, material availability and the resilience of key suppliers.

Low-Carbon Materials Gain Focus

Aluminum is a central part of the new supply-chain approach. Mercedes-Benz joined the aluminum sector of the First Movers Coalition and plans to source at least 10% of its annual primary aluminum demand in line with coalition criteria by 2030.

The group also signed a binding long-term offtake agreement with Hydro covering primary aluminum from 2026 to beyond 2030. The contract calls for a step-by-step reduction in the material's carbon footprint to 3.5 kilograms of carbon dioxide equivalent per kilogram by 2028 and 3.0 kilograms from 2030. The agreement covers at least 10% of Mercedes-Benz's primary aluminum demand and includes Hydro CIRCAL, which is planned for use from 2027 and contains at least 75% post-consumer recycled content.

Mercedes-Benz is also advancing a steel pilot with Anglo American's Kumba Iron Ore business and HyIron. The project used hydrogen-based direct reduced iron to produce a demonstrator component for the EQS, while the partners signed a memorandum of understanding to assess further technical validation and potential industrial scale-up.

Execution Remains The Key Test

The strategy adds a longer-term operating dimension to Mercedes-Benz's electric-vehicle rollout. The company plans 14 fully electric vehicle launches between 2025 and 2027. Renewable energy already covers 51% of energy consumption at Mercedes-Benz Cars production sites and 39% at Mercedes-Benz Vans sites, while externally sourced electricity worldwide is described as fully renewable.

For investors, the commercial significance lies in whether lower-carbon materials, energy savings and greater supply-chain transparency can improve resilience without adding pressure to vehicle costs. Mercedes-Benz said cumulative energy savings across its global production network reached about 570 gigawatt-hours over the past two years, indicating a direct efficiency link alongside the climate targets.

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