Mercedes-Benz stock: Hydro deal sharpens climate roadmap

Published on 11/13/2026 at 17:34 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Mercedes-Benz stock gains a clearer climate roadmap as Hydro supplies lower-carbon aluminium. A steel pilot and circularity target broaden the plan.

Climate targets meet supply-chain measures

Mercedes-Benz targets a 90 percent cut in production emissions and a 70 percent reduction across relevant value-chain stages by 2039 against 2019.
A binding Hydro agreement covers at least 10 percent of primary aluminium demand and runs from 2026 beyond 2030.
The group plans to raise secondary raw-material use to 40 percent within the next decade and is advancing a lower-emission steel pilot.

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Mercedes-Benz Group outlined a revised climate roadmap on November 10, 2026, pairing longer-term emissions targets with supply-chain measures for aluminium and steel. The company presented the update at its Sustainability Dialogue and Sustainability Update in Sindelfingen.

According to the Mercedes-Benz Group, the targets for 2039 call for a 90 percent reduction in emissions from its own production, an 80 percent cut in vehicle-use emissions where market conditions allow, and a 70 percent reduction across relevant value-chain stages, each against 2019. The company intends to reach net zero by 2049 at the latest.

Hydro contract adds supply visibility

Mercedes-Benz signed a binding long-term offtake agreement with Hydro covering primary aluminium from 2026 to beyond 2030. The contract covers at least 10 percent of Mercedes-Benz's primary aluminium demand and sets a step-by-step reduction in the material's carbon footprint to 3.5 kilograms of CO2e per kilogram by 2028 and 3.0 kilograms from 2030.

The agreement also includes Hydro CIRCAL recycled aluminium, which contains at least 75 percent post-consumer recycled content and is planned for use from 2027. Mercedes-Benz said it aims to increase the share of secondary raw materials to 40 percent within the next decade.

Steel pilot broadens execution focus

The company also described a steel pilot using iron ore fines from Kumba Iron Ore's Sishen mine, hydrogen-based direct reduced iron from HyIron and a demonstrator component for the Mercedes-Benz EQS. Mercedes-Benz and HyIron signed a memorandum of understanding to advance technical validation toward potential industrial scale-up.

For investors, the update links climate commitments with procurement security, resource efficiency and production resilience. The use-phase target remains conditional on market conditions, while the aluminium agreement gives suppliers longer-term demand visibility and adds a concrete implementation path to the broader roadmap.