Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Mercedes-Benz strategically engaged with climate policy in the EU and US in 2023-25, with both positive and negative engagement with science-aligned climate policy. The company advocated to weaken the EU CO2 emissions standards and for less ambitious timelines for US federal light-duty GHG emission standards, while advocating for measures to promote EV infrastructure expansion globally.
Top-line Messaging on Climate Policy: Mercedes-Benz supported the Paris Agreement, in its 2024 Annual Report, published in March 2025. It also appeared to support the EU Green Deal in its 2023 Climate Policy Report, published in March 2024. In addition, the company indicated support for particular forms of climate policy, including CO2 pricing, in its Just Transition Approach, published in June 2025.
Engagement with Climate-Related Regulations: Mercedes-Benz had mostly negative engagement on GHG emission standards in the EU and US. In its 2024 Climate Policy Report, published in March 2025, the company advocated to weaken the EU’s CO2 standards for light-duty vehicles, urging “flexibility options” and the removal of penalties. In a February 2025 meeting with the EU Commissioner for Sustainable Transport and Tourism, Mercedes-Benz further described flexibility for non-compliance penalties as “crucial”. Moreover, in a Letter to the President of the European Commission & Parliament in January 2025, Mercedes-Benz CEO, Ola Kallenius, appeared to advocate for lower penalties for non-compliance with EU CO2 targets and a comprehensive review of the 2030 and 2035 targets. Furthermore, in a March 2025 press release, Kallenius supported the EU Commission’s proposal to weaken the 2025 CO2 standard through an average compliance mechanism over 2025-27 and flexibility for the 2035 target.
In the US, Mercedes-Benz appeared unsupportive of the Environmental Protection Agency’s more ambitious 2027-32 GHG emission standards for light-duty vehicles in June 2023 US regulatory comments, advocating for a less stringent ramp-up in standards than those proposed and calling for standards "similar to" Alternative 3. It also appeared to call for less stringent emission standards for medium-duty vehicles and for the extension of program credits, such as air conditioner and off-cycle, which may weaken the stringency of the proposal.
More positively, Mercedes-Benz supported more stringent CO2 standards for heavy-duty vehicles in the EU in its 2023 Climate Policy Report, published in March 2024. In its 2024 Climate Policy Report, published in March 2025, Mercedes-Benz also stated support for the EU’s Emissions Trading System and Renewable Energy Directive.
Positioning on Energy Transition: Mercedes-Benz had both positive and negative positions on a transition to electric vehicles. In its 2024 Climate Policy Report, published in March 2025, the company opposed a ban on internal combustion engine (ICE) vehicles and advocated for long term technology-neutrality. Similarly, in September 2023 comments, Mercedes-Benz CEO, Ola Källenius, appeared to support the use of e-fuels to decarbonize light-duty vehicles. Källenius also appeared to support a longer-term role for ICE-powered light-duty vehicles in a July 2024 Press Release. In a January 2025 Reuters article, Kallenius further emphasized concerns with the rapid electrification of light-duty vehicles, asserting a lack of consumer demand. More recently, in the company’s 2024 Annual Report, published in March 2025, Kaellenius supported a longer-term role for ICE vehicles. However, Mercedes-Benz supported EV charging infrastructure policies. For example, it supported the EU’s Alternative Fuels Infrastructure Regulation (AFIR) in its 2023 Sustainability Report, published in March 2024. Mercedes-Benz also advocated for similar measures to be developed in the US, according to the company’s 2023 Climate Policy Report, published in March 2024.
Industry Association Governance: Mercedes-Benz disclosed its membership of key industry associations in its 2024 Climate Policy Report, published in March 2025. It includes some industry associations’ climate policy positions and information regarding Mercedes-Benz’s alignment and influence. Mercedes-Benz’s CEO, Ola Källenius, is Chair of the European Automobile Manufacturers Association (ACEA), which has both positive and negative engagement on EU climate policy. Källenius is also on the board of the German Automotive Association (VDA), which has positive and negative engagement on EU and German climate policy. Additionally, Mercedes-Benz India’s CEO is on the executive committee of the Society of Indian Automobile Manufacturers (SIAM) and Mercedes-Benz Brazil has multiple employees on the board of the National Association of Automotive Vehicle Manufacturers (ANFAVEA), which have positive and negative engagement in India and Brazil, respectively. The CEO of Mercedes-Benz Australia Pacific is on the board of directors for the Federal Chamber of Automotive Industries (FCAI) which has negative engagement on Australian climate policy.
A detailed assessment of the company's review of its climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2025.