Sphera Case Studies Quantifying supply chain decarbonization as a pillar for becoming a net-zero company

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	Quantifying supply chain decarbonization as a pillar for becoming a net-zero company Sphera

Quantifying supply chain decarbonization as a pillar for becoming a net-zero company

Sphera

Technology Category	Analytics & Modeling - Process Analytics
Applicable Industries	Automotive
Applicable Functions	Logistics & Transportation Procurement
Use Cases	Energy Management System Supply Chain Visibility
Challenge	Mercedes-Benz, as part of their Ambition 2039, committed to becoming a carbon-neutral company by 2039 across their entire value chain. This includes not only the emissions produced by their vehicles but also those that occur during the production process. A significant proportion of these emissions occur not at Mercedes-Benz locations, but within its supply chain. To develop a realistic yet ambitious decarbonization strategy, it was crucial to gain transparency about emissions hotspots in the supply chain and quantify possible reduction measures. However, the company faced challenges such as missing emissions transparency in the supply chain, lack of reliable, detailed emissions inventories for steel, aluminum, and plastics, lack of knowledge about the influence of renewable energy and recycled or bio-based materials and their impacts on supply chain emissions, and lack of CO2 reductions potentials for target setting. Read More
About Customer	Mercedes-Benz is a globally recognized automotive company founded in 1926 and headquartered in Stuttgart, Germany. The company has a significant presence with over 173,000 employees and 40 production sites spread across four continents. In 2019, the company sold nearly 2.4 million cars and more than 438,000 vans. As part of their commitment to environmental sustainability, Mercedes-Benz has set an ambitious goal, Ambition 2039, to become a carbon-neutral company by 2039. This commitment extends beyond the emissions produced by their vehicles to include those that occur during the production process, a significant proportion of which occur within its supply chain. Read More
Solution	To address these challenges, Mercedes-Benz decided to use Sphera’s consulting services and their detailed life cycle assessment (LCA) models and supply chain knowledge. Sphera’s consultants conducted a detailed CO2-modelling of the supply chains for steel, aluminum, and plastics and derived and quantified possible reduction measures. This involved alternative production routes for steel, including steel via direct reduced iron, renewable energy used in the supply chain of aluminum and plastics, and the use of secondary and bio-based materials. Additional environmental impacts, such as acidification, water consumption, etc., were considered wherever needed and relevant. Sphera’s Sustainability Consulting services enable companies to build business value from sustainability, gain new investments, and future-proof their businesses by providing insight into the concepts behind decarbonization and net zero, helping organizations to assess their status quo, and developing a decarbonization roadmap suitable for a specific business model. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Process Analytics

Applicable Industries

Automotive

Applicable Functions

Logistics & Transportation

Procurement

Use Cases

Energy Management System

Supply Chain Visibility

Challenge

Mercedes-Benz, as part of their Ambition 2039, committed to becoming a carbon-neutral company by 2039 across their entire value chain. This includes not only the emissions produced by their vehicles but also those that occur during the production process. A significant proportion of these emissions occur not at Mercedes-Benz locations, but within its supply chain. To develop a realistic yet ambitious decarbonization strategy, it was crucial to gain transparency about emissions hotspots in the supply chain and quantify possible reduction measures. However, the company faced challenges such as missing emissions transparency in the supply chain, lack of reliable, detailed emissions inventories for steel, aluminum, and plastics, lack of knowledge about the influence of renewable energy and recycled or bio-based materials and their impacts on supply chain emissions, and lack of CO2 reductions potentials for target setting.

About Customer

Mercedes-Benz is a globally recognized automotive company founded in 1926 and headquartered in Stuttgart, Germany. The company has a significant presence with over 173,000 employees and 40 production sites spread across four continents. In 2019, the company sold nearly 2.4 million cars and more than 438,000 vans. As part of their commitment to environmental sustainability, Mercedes-Benz has set an ambitious goal, Ambition 2039, to become a carbon-neutral company by 2039. This commitment extends beyond the emissions produced by their vehicles to include those that occur during the production process, a significant proportion of which occur within its supply chain.

Solution

To address these challenges, Mercedes-Benz decided to use Sphera’s consulting services and their detailed life cycle assessment (LCA) models and supply chain knowledge. Sphera’s consultants conducted a detailed CO2-modelling of the supply chains for steel, aluminum, and plastics and derived and quantified possible reduction measures. This involved alternative production routes for steel, including steel via direct reduced iron, renewable energy used in the supply chain of aluminum and plastics, and the use of secondary and bio-based materials. Additional environmental impacts, such as acidification, water consumption, etc., were considered wherever needed and relevant. Sphera’s Sustainability Consulting services enable companies to build business value from sustainability, gain new investments, and future-proof their businesses by providing insight into the concepts behind decarbonization and net zero, helping organizations to assess their status quo, and developing a decarbonization roadmap suitable for a specific business model.

Impact #1	Gained CO2 transparency in the supply chain
Impact #2	Developed the ability to quantify supply chain strategies (e.g., use of renewable energy) in terms of decarbonization potential
Impact #3	Acquired the ability to formulate, quantify and refine CO2 reduction targets

Impact #1

Gained CO2 transparency in the supply chain

Impact #2

Developed the ability to quantify supply chain strategies (e.g., use of renewable energy) in terms of decarbonization potential

Impact #3

Acquired the ability to formulate, quantify and refine CO2 reduction targets

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Overview

Quantifying supply chain decarbonization as a pillar for becoming a net-zero company

Operational Impact