MASHINIi

MERCEDES-BENZ GRP.

MBG.XETRA | Manufacture of motor vehicles

Mercedes-Benz Group AG, formerly Daimler AG, is a German multinational automotive corporation headquartered in Stuttgart, Baden-Württemberg. It is one of the world's leading car and truck manufacturers. The company develops, manufactures, and sells passenger cars, vans, trucks, and buses. Its vehicl...Show More

Ethical Profile

Mixed.

Mercedes-Benz Group AG's ethical record is mixed. It faced a $1.5 billion settlement in 2020 for emissions cheating allegations. Reports highlight alleged anti-union practices at its Tuscaloosa facility, with $438K recovered for illegally terminated workers. Predatory lending (up to 9.68% interest) and Xinjiang forced labor concerns are alleged. The company secured military vehicle contracts, like €47 million for Lithuanian Army trucks. Positively, Mercedes-Benz aims for 100% renewable energy by 2039, operates net carbon-neutral production, and pioneers vegan interiors and a battery recycling facility with over 96% recovery.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing30
-100100
Honest & Fair Business10
-100100
Kind to Animals-30
-100100
No War, No Weapons-20
-100100
Planet-Friendly Business-20
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-20
-100100

Better Health for All

0

Mercedes-Benz demonstrates a strong commitment to health, particularly through its core products and extensive preventative measures. The company's vehicles integrate over 40 active driver assist systems, a Level 3 autonomous driving system (DRIVE PILOT) with an emergency stop for incapacitated drivers, and the 'Fit & Healthy' concept for driver well-being, contributing substantial health benefits.

1
Mercedes-Benz aims to halve serious accidents by 2030 (compared to 2020)
2
and achieve zero accidents by 2050.
3
The company exhibits an exceptional focus on preventative health, leading global road safety education through initiatives like the 20-year-old MobileKids program (210 partner schools in China)
4
and the SAFE ROADS initiative in India (since 2015, 58,000 visitors).
5
It also provides comprehensive employee wellness programs, including mental health support, exercise, nutrition plans, and free flu vaccinations.
6
During the COVID-19 pandemic, Mercedes-Benz demonstrated exceptional crisis response capabilities by producing medical equipment, CPAP breathing aids, and donating 110,000 masks.
7
The company maintains industry-leading healthcare data responsibility for vehicle data, with anonymization, user consent, and deletion requests.
8
However, the company's operations generate moderate health-harming externalities, primarily from vehicle emissions, despite substantial remediation efforts like a 75% reduction in carbon emissions at production facilities by 2024
9
and 50% renewable energy use.
10
Support for the broader healthcare workforce is substantial, focusing on first responders through initiatives like "MB4Rescue"
11
and comprehensive guidelines.
12

Fair Money & Economic Opportunity

0

In November 2022, Mercedes-Benz Financial Services Korea (MBFSK) provided loans with annual interest rates up to 9.68% to new customers.

1
This occurred despite securing funds from its German headquarters at a significantly lower rate of 1.02%
2
and was reported as substantially higher than local competitors.
3

Fair Pay & Worker Respect

0

In February 2024, the US Department of Labor recovered $438,000 for two workers at Mercedes-Benz U.S. International Inc. who were illegally terminated after taking FMLA-protected leave, and were also reprimanded and denied attendance bonuses.

1
In April 2024, the United Auto Workers (UAW) accused Mercedes-Benz of intimidating and retaliating against workers at its Vance, Alabama plant during a unionization campaign, including allegations of firing a union supporter, disseminating anti-union communications, and holding mandatory meetings.
2
These actions are claimed to violate the German Act on Corporate Due Diligence Obligations in Supply Chains and are under investigation by the German Federal Office for Economic Affairs and Export Control.
3
Workers at the Vance plant narrowly voted against unionizing.
4
A month prior, the company gave a $2-per-hour raise to its highest-paid workers and eliminated a two-tier wage system.
5
A complaint was filed in June 2023 by ECCHR against Mercedes-Benz over forced labor allegations concerning raw materials from the Xinjiang Uyghur Autonomous Region.
6
A lawsuit was filed in April 2022 claiming employees were underpaid following a December 2021 ransomware attack on the Kronos timekeeping system.
7
Mercedes-Benz has an Integrity Code, Principles of Social Responsibility and Human Rights, and a Human Rights Respect System, developed with input from employee representatives and international trade unions, to address human rights and working conditions.
8

Fair Trade & Ethical Sourcing

30

Mercedes-Benz Group AG ensures that 100% of its direct suppliers have contractual agreements guaranteeing sustainability requirements.

1
The company reserves the right to monitor, audit, and terminate cooperation for violations of these standards.
2
Mercedes-Benz is committed to responsible procurement, aligning with international human rights standards such as the UN Guiding Principles, Universal Declaration of Human Rights, and ILO Declaration, which are codified in its Integrity Code and Responsible Sourcing Standards.
3
It employs a Human Rights Respect System and a risk-based approach to identify and analyze supply chain risks, particularly for high-risk materials.
4
The company collaborates with Icertis to enhance supply chain transparency using blockchain technology
5
and is a member of initiatives like IRMA, RMI, ASI, and the UN Global Compact since April 2022.
6
In 2021, on-site inspections and supplier screenings did not reveal any actual suspected cases of child or forced labor.
7
Mercedes-Benz also partners with NGOs, including Terre des Hommes Netherlands and Bon Pasteur, in India and the Democratic Republic of Congo to prevent child labor in mining regions through education and economic support.
8
In June 2023, a complaint was filed by ECCHR alleging insufficient measures to address forced labor in Xinjiang supplier factories.
9

Honest & Fair Business

10

Mercedes-Benz has not incurred any ethics-related regulatory fines in the past three years.

1
The company proactively alerted regulators to a European recycling cartel in 2019, which led to avoiding fines in April 2025.
2
Additionally, the U.S. Department of Justice concluded its diesel emissions investigation in April 2024 without bringing charges.
3
The company operates a comprehensive, globally applicable Whistleblower System BPO, established in 2006, which protects whistleblowers from retaliation, ensures confidentiality, allows anonymous reporting, and provides a global hotline with regional numbers and a neutral intermediary in Germany.
4
Reports are acknowledged within seven days, and the BPO reports quarterly to the Board of Management and Supervisory Board.
5
Mercedes-Benz also maintains a comprehensive Anti-Corruption Compliance Program, based on a Compliance Management System, which includes regular risk assessments, employee training, communication activities, and adherence to international standards.
6
This program emphasizes high-risk areas, and its Compliance Management System for anti-corruption was audited by KPMG AG Wirtschaftsprüfungsgesellschaft in 2019.
7

Kind to Animals

-30

Mercedes-Benz has achieved Vegan Trademark certification from The Vegan Society for the interior of its GLC electric car's "Vegan Package," confirming that the materials used were not tested on animals and contain no animal ingredients.

1
This certification applies to a very small percentage of its overall product portfolio. The company is actively replacing animal-derived inputs, with the VISION EQXX concept car featuring entirely vegan interiors using materials like cactus leather, mushroom leather, and bio-based vegan silk.
2
Leather-free trim options are also available in models such as the A-Class, with plans to extend these to other vehicle models.
3
Mercedes-Benz requires its leather suppliers to comply with the "5 Freedoms Of Animal Welfare" in livestock breeding and for tanneries to be certified by the Gold Standard of the 'Leather Working Group'.
4
The company has engaged in multi-stakeholder collaborations, including a two-year project with The Vegan Society for certification
5
and partnerships with Modern Meadow and AMSilk for animal-free material development.
6
Historically, Mercedes' parent company Daimler funded experiments on monkeys through the EUGT prior to mid-2025.
7

No War, No Weapons

-20

Mercedes-Benz Group AG (MBG.XETRA) has no direct involvement in arms manufacturing or military contracts, with military vehicle sales explicitly attributed to Daimler Truck, a separate entity

1
. The company denied any donations to military organizations
2
. There is no evidence of MBG.XETRA developing or selling dual-use technologies with military applications, nor does it have defense assets to divest. The company conducts annual human rights due diligence, monitoring supplier information yearly for conformity with RMAP or OECD standards
3
. It has implemented a Human Rights Respect System
4
and is part of the Responsible Minerals Initiative, reporting on human rights in raw material supply chains
5
, with sustainability reporting integrated into its 2024 annual report
6
. Annual partner reviews screen suppliers for conflict minerals (3TG, Cobalt, Mica), requiring RMI reporting templates
7
, and non-compliant smelters or refiners may be removed from the supply chain
8
.

Planet-Friendly Business

-20

Mercedes-Benz achieves an almost 100-percent recycling rate in production.

1
The company sources 50% of its energy needs at production plants from renewable sources in 2024.
2
Mercedes-Benz has set a net carbon-neutral target year of 2039 for its new vehicle fleet across the entire value chain and lifecycle.
3
,
4
,
5
with an aim to reduce CO₂ emissions by up to 50% across the value chain within the next decade compared to 2020.
6
,
7
TCFD reports are available from 2020-2023.
8
, and the company contributed to the development of the TCFD recommendations.
9

Respect for Cultures & Communities

20

Mercedes-Benz has 13 formal partnership agreements with local and indigenous community groups, including 12 with various community organizations in the US

1
and a partnership with ECOMY to support Orang Asli communities in Malaysia.
2
The company has no reported cultural appropriation incidents. Mercedes-Benz actively protects cultural sites through a longstanding collaboration with UNESCO since 2007
3
for the conservation and management of World Heritage Sites in China,
4
and a 2018 partnership with the Palace Museum in Beijing for cultural heritage conservation, including sponsoring research and renovation of Jingfu Gong.
5

Safe & Smart Tech

0

Mercedes-Benz Group demonstrates a comprehensive approach to AI ethics, having defined its own AI principles in 2019

1
and integrated them company-wide. A dedicated data governance board meets quarterly,
2
and all AI use cases undergo thorough review,
3
aiming to explain and eliminate unintended bias.
4
The company exhibits revolutionary data minimization practices, exemplified by the immediate destruction of data collected by its passenger occupancy detection feature after use,
5
and the use of artificial or anonymized data for AI testing and training.
6
Mercedes-Benz provides excellent user data control, obtaining customer consent for personal data use,
7
ensuring data deletion after its intended purpose,
8
and offering intuitive services for customers to manage their data.
9
The company maintains a strong regulatory compliance program, with stringent data governance frameworks
10
and an AI Governance approach designed to ensure adherence to global regulations and adapt to new requirements.
11
While a GitHub token leak in late September 2023
12
exposed internal code infrastructure and intellectual property,
13
Mercedes-Benz stated no customer data was affected,
14
and no incidents of unauthorized data use have been documented.
15

Zero Waste & Sustainable Products

-20

Mercedes-Benz Group achieved an 87.9% waste diversion rate in 2024, up from 86% in 2023, by recycling or recovering waste.

1
The company has implemented several waste reduction initiatives, including a partnership with TSR Group for end-of-life vehicle (ELV) recycling
2
, a pilot project with SOEX Group to recycle 25,000 pairs of safety shoes annually
3
, and the inauguration of Europe's first battery recycling plant in Kuppenheim with a recovery rate exceeding 96% for valuable materials.
4
Other initiatives include chemical recycling of scrap tyres
5
, upcycling vehicle components into fashion items
6
, using CO2-reduced steel from scrap
7
, integrating waste-derived UBQ Materials
8
, and partnering for Biosteel® fiber.
9
The company has quantitative waste reduction targets, such as saving 25,000 pairs of safety shoes from incineration annually at one plant
10
and aiming to cut primary resource consumption by 40% by 2030 through urban mining.
11

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.