Mercedes-Benz signs low-carbon aluminum deal, updates climate targets
Mercedes-Benz signs low-carbon aluminum deal, updates climate targets Nov 10 (Reuters) - Mercedes-Benz MBGn.DE has signed a long-term supply agreement with Norway's Hydro NHY.OL to source low-carbon aluminum, the German automaker said on Tuesday, as it seeks to reduce its carbon footprint.
The company also revised its "Ambition 2039" climate target set out in 2019 after global electric vehicle adoption fell short of expectations.
The contract covers at least 10% of the company's primary aluminum needs, Mercedes said.
The aim is to gradually reduce the CO2 emissions of the supplied material to 3 kg per kg of aluminum by 2030, down from about 4 kg currently and far below the global average of 14.4 kg.
Mercedes is also joining the "First Movers Coalition", a group which aims to decarbonise hard-to-abate sectors including heavy industry and long-distance transport, committing to buy at least 10% of its primary aluminum under the alliance's criteria by 2030.
The company revised its climate roadmap, now targeting a 90% cut in production emissions, an 80% cut in vehicle-use emissions if market conditions allow, and a 70% reduction in emissions across the value chain by 2039.
It now aims to reach net-zero emissions in the decade beyond 2039.
It had previously aimed to make its new-car fleet "carbon-neutral in accounting terms" across the entire value chain and its life cycle by 2039.
(Reporting by Basile Day in Gdansk, additional reporting by Ilona Wissenbach in Frankfurt, editing by Linda Pasquini)
((Basile.Day@thomsonreuters.com))