Mercedes’ quest to be F1 trend-setters outlined in 2023 progress report

Mercedes’ George Russell on track.

Reviewing its 2023 achievements, Mercedes has outlined how it plans on continuously improving on its quest to become one of the world’s foremost sustainable sports teams.

Mercedes’ latest sustainability report has been published, reviewing its achievements throughout the 2023 calendar year in the areas of environmental, social, and governance.

How Mercedes has reduced emissions as environmental report released

Mercedes has been leading the way in recent years in publicising its goals and achievements when it comes to improving sustainability. Taking on board the United Nations Sustainable Development Goals, Mercedes – like Formula 1 – has pledged to become carbon net zero by 2030, and regularly reveals the improvements and steps the organisation as a whole is making to make that happen.

The release of its annual sustainability report in July 2024 has revealed Mercedes’ recent achievements in the area of environmental sustainability. As previously reported, Mercedes has embraced the use of HVO100 sustainable fuels in its trucks during European races, and has also invested millions into the use of Sustainable Aviation Fuel (SAF) – flights accounting for about a quarter of an F1 team’s carbon footprint.

Having embraced these sustainable fuels, Mercedes reports the following improvements on 2022.

• 10% overall reduction in market-based Race Team Control emissions with SAFc (Sustainable Aviation Fuel) vs 2022.
• 6,695 tCO2e reduction in business travel emissions in 2023 through the use of SAFc.
• 67% reduction in emissions and 339 tCO2e saved through the use of HVO100 biofuel across the European season in race and hospitality trucks and generators.
• Over 5,650 lift-sharing journeys to and from our Brackley campus.
• 100% renewable electricity maintained through purchase of REGOs (Renewable Energy Guarantees of Origin).

“Environmental sustainability is embedded in our business from the factory to the track and from the boardroom to the pit wall – it’s at the heart of our operations at the base and in the way we go racing,” said Alice Ashpitel, Mercedes’ head of sustainability.

“Being sustainable doesn’t have to mean compromise; sustainability and performance are inextricably linked and Formula 1 is the perfect test lab for innovations needed to address some of the biggest environmental challenges facing the world today.

“We are progressing towards our target of Race Team Control Net Zero in 2030, through a combination of emissions reduction and a transition from gold standard carbon offsetting to carbon removal. We have already taken bold action to address and reduce our emissions and we continue to invest in initiatives such as Sustainable Aviation Fuel, biofuel, low carbon building design, energy conservation, and waste reduction to achieve our goals.

“It takes all of us – our people, partners, and supply chain – to help reduce our footprint. As part of our commitment to transparency, we focus on three pillars of environmental sustainability: Net Zero, Responsible Resource Consumption, and Ecological Protection.

“Our total market-based Race Team Control emissions in 2023 fell by 10% compared to 2022, representing a reduction of over 1,700 tCO2e and progressing towards our target of 50% reduction in Race Team Control emissions by 2026.

“This reduction has been achieved through investment in Sustainable Aviation Fuel certificates (SAFc) and our biofuel project, as well as gas removal, lift sharing, and improving our commuting practices.”

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Mercedes reveals evolving social responsibility at Brackley

Hiring chief people officer Anca Raines in early 2024, her efforts have bolstered the work done by Mercedes in recent years as the team has concentrated on improving diversity and representation through its Accelerate 25 programme.

A project currently in development for Mercedes staff is the building of a Wellbeing Centre, which will house the team’s restaurant, gym, health services, and social/contemplative areas for staff to unwind.

The highlights of 2023 from a social responsibility aspect include:

• Exceeded target of 25% of new hires from under-represented groups every year since 2021.
• Successful year of activations with our Accelerate 25 partners.
• Gender Pay Gap reduced to 13.4% median and 23.2% mean.
• LGBTQ+ Forum and Working Family Network set up by our team members.
• Mental health charity Mind elected our Official Team Charity Partner.
• Over 100 international, national, and local charitable causes supported.
• STEM grants provided to five of our local Brackley schools.
• 89% team member engagement with annual Health Assessments.

“As a sports team with a huge fan base, we have a platform,” Raines said.

“This means we have a responsibility to set standards, hold ourselves accountable to those standards and be authentic role models.

“Since we introduced our Accelerate 25 programme, we have seen a steady and sustained increase in diversity and representation across our organisation.

“The wide range of activities and programmes that fall under the banner of Social, whether that is improving the health and wellbeing of our people, furthering inclusivity, providing work experience opportunities for the next generation or raising money for charity, all help our people see the impact they can make in the team and beyond. This builds an energy that can then be brought back into the workplace to drive performance.

“Inclusivity is integrated into everything our team does through Accelerate 25, our five-year programme to make our team even more diverse and inclusive. Over three years into Accelerate 25, we are proud to report a steady increase, year on year, in the proportion of our team who are female or from minority ethnic groups.

“Without compromising our standards for entry or quality, we have consistently exceeded our target of 25% of new hires from under-represented groups since 2021.”

Mercedes’ governance, ethics, and compliance framework implemented

While Mercedes has outlined three separate areas in its sustainability report for 2023, all three are very much overlapping as contributing towards overall impact and, in turn, improving performance across the board.

The focus on governance and integrity, together with Mercedes’ transparency on its progress, is underpinned by the organisation’s commitment to continuously improve in every area.

The third area Mercedes has highlighted is that of governance, with the team revealing various steps that have been made throughout 2023 to make all staff, whether they be employees, management, contractors, or external suppliers, feel protected and safe in the carrying out of their duties.

In 2023, Mercedes carried out the following highlights:

• Governance, Ethics and Compliance Framework implemented.
• Integrity Code published.
• Governance Working Group established.
• Whistleblowing policy and platform implemented.
• Enhanced due diligence platform and processes.
• Contract management platform launched.

“As a Formula One team our efforts are judged by millions every time we go racing,” said Toto Wolff, Mercedes’ CEO and team boss.

“Every race, every practice, and every test, sharpen the mind and help us chase every millisecond.

“Although we report annually on our sustainability progress, the commitment to optimise our operations and pursue sustainable high performance is always front of mind. Just like on track, we aim to improve our performance in every area, and our annual Sustainability Report serves as a reminder of everything that’s happening behind the scenes.

“Yes, we report on our results – our footprint; our demographics; our codes and policies but it’s much more than that – it’s about our people; their collective power and our impact on the world within and beyond motorsport.

“This reaches well beyond what we must do; it’s about our innovation and what we can achieve by inspiring others to follow. We are privileged to work in a sport that demands high-performance teamwork, technology, and innovation. We have a responsibility to harness those elements, as well as our people and our global platform, to go further faster. It matters to me, our team members, our partners and, importantly, fans of our sport.

“Ultimately, our ambition is to become one of the most sustainable global professional sports teams. It’s a long-term goal but an important one; we set ourselves big challenges and recognise that it will take all of us to get there.”

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