Mercedes Blockchain to Reduce Carbon Emissions

Implement a blockchain-based traceability system to map material origins for every battery component and critical part used in Mercedes vehicles. The project focuses on battery materials such as cobalt, nickel, lithium, and copper, enabling real-time verification of responsible sourcing and reducing emissions through optimized routing and load consolidation across manufacturing chains. This focus provides a clear target for suppliers and a way to measure progress.

Such transparency helps associated suppliers and manufacturers become more efficient, while enabling data-driven decisions that cut unnecessary transport and energy use. By tying sourcing data to environmental KPIs, the system makes compliance with evolving supplier codes easier and builds customer trust through verifiable provenance.

To move from plan to working solution, start with a one-year, 12-month project focusing on 2-3 battery supply chains feeding cars and other vehicles. Collect data through supplier and carrier interfaces, then deploy smart contracts that automatically trigger corrective actions when emissions KPIs drift. The focus is on material streams, container-level visibility, and accurate last mile data to minimize empty miles and optimize rail, sea, and road moves.

Pilot results in the automotive sector show typical reductions in transport emissions between 8% and 20% and lower energy intensity at plants when chains are transparent and operations are guided by automated compliance checks. For Mercedes, a staged rollout can cover 25–30 major suppliers in year one and scale to all key suppliers by year two, with ongoing monitoring through dashboards and quarterly reviews. To start now, establish a cross-functional team, define clear KPI targets, and launch a 3- to 6-month pilot with a small number of materials, then expand to vehicles and manufacturing sites.

Leveraging Circulor’s blockchain to trace carbon across Mercedes-Benz’s supply chain

Implement Circulor’s blockchain across Mercedes-Benz’s supply chain to retrace carbon emissions from materials, engines, batteries, and other components into dealerships, creating a consistent, record-based view that will become a transparent benchmark for sustainability targets.

Actions for a phased rollout

• Phase 1: Map the network–manufacturers, their roles, and critical touchpoints like engines, batteries, and materials; identify last-mile nodes such as parking facilities and dealerships.

• Phase 2: Attach emissions data to each component using Circulor’s traceable ledger; ensure data protection and access controls for human and machine uses.

• Phase 3: Announced milestones year by year; year 1 focuses on primary suppliers, year 2 expands to packaging and charging networks; last year milestones build toward full traceability across the network.

• Collaboration with key partners, including schäfer and other members, to standardize inputs and reduce risk of inconsistent data across the network.

Governance and collaboration

• Data protection and access: define roles, limit visibility to authorized users, and log every access to enhance protection.

• Transparency with dealers: enable dealerships to access retraced emissions data for certified cars, sustaining trust with customers and regulators.

• Engage sustainability teams well in advance with a clear initiative: maintain a consistent record of emissions reductions and report progress annually.

Real-time CO2 tracking in production and logistics

Install real-time CO2 trackers on critical production lines and in logistics hubs; use a secure chain to record energy inputs, materials, and vehicle movements, and connect this data into a permissioned system for immediate feedback and targeted action.

During testing, participants from manufacturers will monitor sensors across lines, warehouses, and fleets to quantify the amount of CO2 emitted per unit of output. The data will be linked to materials used and to energy contracts, enabling about 8-15% reductions in the first year through smarter production planning, energy use, and routing.

Mercedes объявил a pilot that links data across their production chain, recording emissions from materials, energy, and vehicles to a secure record. This setup helps identify the highest-emission spots and makes it possible to reduce the overall amount of CO2 through optimization of line scheduling, supplier choices, and transport modes. It also provides relevant insights for compliance and investor reporting, with clear traceability for their partners and customers who want transparent data.

Implementation steps and metrics

Start with a particular scope: assign pilot sites, install calibrated sensors, and integrate with existing systems. Use standardized data formats, establish access controls to secure the chain, and ensure data is available in near real time for production managers and logistics planners. Track metrics such as CO2 per unit, CO2 per tonne of material, and CO2 per kilometer of vehicle movement, so teams can see how actions translate into reductions and continue testing new approaches.

Enhancing battery supply chain transparency from mining to pack assembly

Adopt a secure, tamper-evident ledger that records every step from mining to pack assembly, with each batch carrying a unique ID linked to origin, refining, cell fabrication, and final assembly. This initiative makes the chain traceable and retraced, enabling emissions data to be attributed accurately across the value chain. The project kicks off with a german automaker collaboration and a pilot across three battery suppliers and two pack manufacturers to establish the core data model and governance.

Focus data on mining origin, refining steps, electrode materials, cell fabrication, module assembly, and final pack integration. For each battery, capture records for mining source, refining energy mix, transport legs, and any associated environmental certifications. Use parking details for inbound logistics–parking bays, dock times, and warehouse entries–to align inbound material with production records. All data links create a secure record that auditors can retrace, while preserving supplier confidentiality where required. Include relevant data fields such as batch IDs, timestamps, and certifications to support cross-border reporting.

Implementation steps include establishing a global data standard, integrating supplier-facing dashboards, and deploying smart contracts that require timely data submission. The focus is on real-time updates from suppliers, with privacy-preserving sharing for other stakeholders. A phased rollout targets 60% traceable batteries in 2025 and 100% by 2026 for new orders. The initial scope covers batteries used in Mercedes-Benz vehicles and associated modules, with data feeds from five key suppliers and one packaging company.

Benefits include a stronger brand image, reduced risk of supply disruption, and more accurate lifecycle emissions accounting across the chain. By linking mining data to final pack, the company can report emissions per battery more reliably and identify high-emission segments for improvement. The initiative supports business objectives, helps comply with regulations, and responds to consumer demand for transparent data across batteries and their supply chain. The project can extend to other regions and partners, adapting to global standards and evolving requirements.

Key metrics: percentage of batteries with complete origin records, time-to-trace incidents, and the share of shipments with parking logs, plus data accuracy improvements. By 2025, target 80% data completeness; by 2026, 100% traceability for new batteries. All data sits in a secure, access-controlled ledger that stores records immutably while enabling authorized users to view associated data. Regular anonymized reports will support continuous improvement and industry-wide trust in the company’s battery projects.

Pilot rollout across factories: monitoring emissions with a blockchain system

Implement a five-factory pilot now to monitor emissions with a blockchain system, and set a data-backed baseline to drive reduce targets across production. объявил markus, Mercedes-Benz will use a permissioned network to collect data from sensors, material streams, and energy meters, creating a chain of transactions that ties emissions to specific cars and assembly lines.

In each factory, data from air and energy sensors feeds into the network. The chains record emissions per process step and link them to the material used, the production line, and the finished cars. This well-structured approach allows teams to identify hotspots and apply targeted repairs to equipment, while maintaining a clear audit trail.

Data integrity and rollout plan

Rollout will cover five sites over six months, with testing milestones at weeks 2, 4, and 8. The system maps energy use, process heat, and material waste, producing metrics in real time that production managers can act on. By using the network, teams can compare performance across factories and ready the data for the next phase of the initiative.

Scaling toward dealerships and production partners

After the pilot, the plan wants to extend the chain to production partners and dealerships, so that data travels through the supply chain. The goal is to make emissions traceable from material supplier through assembly to dealerships, making it easier to reduce emissions across the entire lifecycle. The five initial factories will supply data that helps refine the model for their next model year; this initiative aligns with Mercedes-Benz wants to make their next cars cleaner by design and operations.

Newsletter insights: translating carbon data into actionable supply chain decisions

Implement a centralized, transparent carbon data ledger that links every transaction to traceable materials and production records across the global mercedes-benz supplier network. This initiative enables consistent, year-by-year tracking through each step, helps reduce emissions, and provides clear data for particular decisions about materials, production, and process improvements.

Assign a dedicated human member of the data team to own the pipeline, ensure data quality, and connect ticketing events with supplier performance. Track material sources, including mining inputs, to keep the chain well documented.

Use the data to identify concrete actions: shift to lower-carbon materials, work with the manufacturer to improve process efficiency, and apply reduction targets to particular production lines.

Table: carbon data by material and year

Use these insights to steer supplier negotiations, set annual reduction targets, and bring in other data streams–from ticketing to production records–to keep the initiative transparent and ensure decisions at the company level stay consistent.