How economic growth and resource conservation go together

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How economic growth and resource conservation go together
How
                                                economic
                                                growth and
                                                resource
                                                conservation
                                                go together
                                                Ola Källenius is the chairman
                                                of the board of management at
                                                Daimler AG and Mercedes-Benz AG.
                Written byOla Källenius       The Sweden native is a strong advocate for
                     Photography courtesy of   energy-saving vehicles and has accelerated
                             Mercedes-Benz      a $12 billion investment into the company’s
                                                line of battery-powered automobiles.
                                                He has pushed for a new electric model
                                                initiative in which he has proposed a series
                                                of electric cars to be launched by 2022. His
                                                work to change the automotive sector has
                                                been transformational for the
                                                environment.

42   LIFESTYLES MAGAZINE PRE-SPRING 2021
How economic growth and resource conservation go together
GUEST EDITORIAL
                        Ola Källenius

PRE-SPRING 2021 LIFESTYLES MAGAZINE   43
How economic growth and resource conservation go together
GUEST EDITORIAL
                                                                                                                       Ola Källenius

               D             uring the past year, much of the world
                             was brought to a standstill. At the
                             same time, our views and perspec-
               tives on economic and environmental policies
               were challenged: Lockdowns due to the COVID-19
                                                                      new standards with a range of more
                                                                      than 700 kilometers on one battery
                                                                      charge. Our aim is to increase the
                                                                      share of our electrified and battery-
                                                                      powered car sales to more than 50
               pandemic have reduced carbon dioxide levels in         percent by 2030. Our clear, long-term
               many regions. However, the far-reaching conse-         goal is to offer a CO2-neutral fleet of
               quences of these measures have also clearly shown      new Mercedes-Benz cars worldwide
               that renouncing economic growth is not the right       by 2039.
               way to combat climate change. That is why we are            We are taking a holistic ap-
               taking a different approach: As an automaker, it       proach to meet this important
               is our mission and responsibility to decouple eco-     objective. At Daimler, we see our
               nomic growth and emissions, and the still-ongoing      contribution to climate protection
               pandemic is no excuse to slow down our efforts.        going far beyond our vehicles alone.
                    Daimler is resolutely pressing ahead with our     Take production: As of 2022, less
               SpurWechsel—meaning “lane change”—toward               than one short year from now, our
               CO2-neutral mobility, which we initiated in 2019.      cars and vans will be produced on a
               We are making great progress: By the end of 2020,      CO2-neutral basis at the more than
               the Mercedes-Benz car portfolio included five all-     30 Mercedes-Benz plants worldwide.
               electric and more than 20 plug-in hybrid models.       This standard already applies to our
               One of the many new electrified models we will         Factory 56, which we opened last fall
               launch this year is the EQS, an all-electric luxury    in Sindelfingen, Germany. Factory
               sedan in the S-Class segment. As measured by the       56 also serves as a blueprint for our     James Cameron and
               European standard Worldwide Harmonised Light           other production facilities in other      Ola Källenius
               Vehicle Test Procedure (WLTP), the EQS will set        respects. It uses about a quarter

PHOTO BY XXX

                                                                                               PRE-SPRING 2021 LIFESTYLES MAGAZINE   45
How economic growth and resource conservation go together
GUEST EDITORIAL
                                                                                                        Ola Källenius

less energy than conventional assembly plants.          The perfect cycle, inspired by
The roof is extensively greened to compensate           nature
for sealed floor areas, and a photovoltaic system             We are convinced people
installed on the roof supplies the plant with green     around the world will continue
electricity. We even issued green bonds in Sep-         to travel individually and freely in
tember 2020, exclusively to finance sustainable         growing numbers in the future.
projects. The high demand for these bonds is an         Therefore, overall demand for cars
additional motivation for us, as they were more         will increase. In global terms, the
than four times oversubscribed.                         solution is not fewer cars, but bet-
                                                        ter cars.
Electric first: Batteries and fuel cells for com-             That’s why the approach we
mercial vehicles                                        have adopted at Mercedes-Benz
      Sustainability is also a priority for our com-    is what we call “decoupling.” We
mercial vehicle business—one of the world’s larg-       are working to separate resource
est. Our production of trucks and buses in Europe       consumption from volume growth.
will also be CO2-neutral as of 2022; more sites         Our tools for resolving this appar-
around the globe will follow. In the major Europe-      ent contradiction are technology
an, Japanese, and North American markets, we are        and sustainable innovation. The
aiming for all new Daimler commercial vehicles          three “Rs”—reduce, reuse, recycle—
to operate CO2-neutral by 2039. We already have a       are the most important levers in
variety of all-electric trucks, buses, and cargo vans   this process. The goal is to move
on the road today. The light-duty eCanter truck         from the traditional value chain to
has been in use since 2017. We are also intensively     a “closed value cycle” that wastes
testing the heavy-duty eActros truck in everyday        nothing. Nature, where closed
operations with our customers. Series production        cycles are standard, is our most
is scheduled to launch this year. The eActros Long-     important teacher here.
Haul for the long-distance transport of goods will
go into series production in 2024. Our commercial       Three Rs: Reduce, reuse, recycle
electric vans are also in great demand. At the end           The first step in this direc-
of August 2020, we received a record order for          tion is the significant reduction
1,200 eSprinter and 600 eVito cargo carriers. The       of our CO2 footprint, which we
Mercedes-Benz eCitaro city bus is already on the        have already initiated in concert
road in numerous European cities.                       with our partners and suppli-
      Drive systems based on fuel cells and hydrogen    ers. We have entered into several
also play an important role in the electrification of   important cooperative initiatives
our commercial vehicles. In order to bring the tech-    with companies that lead in green
nology into series production quickly, we entered       energy technologies. For example,
into a joint venture with the Volvo Group. And in       we are working with Farasis Energy,
the fall of 2020, we presented our fuel-cell-concept    an advanced lithium-ion battery
GenH2 Truck—a heavy-duty truck with a range of          technology company, to develop
more than 1,000 kilometers—which we will launch         and industrialize CO2-neutral bat-
in the second half of this decade. We are pushing       tery cells. Together with CATL, a
all of these projects forward because we see the        global leader in the development
emission-free transportation of people and goods        and manufacture of lithium-ion
as another major lever for a healthier environment      batteries, we aim to further develop
and cities that are more pleasant to live in.           battery technology and production.

                                                                                PRE-SPRING 2021 LIFESTYLES MAGAZINE   47
How economic growth and resource conservation go together
GUEST EDITORIAL
Ola Källenius

      The next step after reducing         future must be sustainable to stay desirable. We
CO2 emissions is the further conser-       want to provide an exceptional experience for
vation of resources. We are working        our customers without burdening the environ-
to reduce water consumption per            ment. An automobile that combines maximum
Mercedes produced by one-third by          fascination for our customers with minimum
2030. Here, too, the goal is a closed      impact on nature is the ultimate development
water cycle that reuses all industrial     goal of our engineers and designers: It strikes
water in a factory.                        the perfect balance between technology and
      The same applies to the energy       nature.
used in production. By 2030, our goal            We have shown what this might look like
is to use 40 percent less energy per       one day with our Mercedes-Benz VISION AVTR
vehicle produced. In the same time         (Advanced Vehicle Transformation). This vision-
frame, we also want to reduce the          ary concept vehicle is inspired by nature in
waste produced per vehicle by 40           many ways. It shows completely new approach-
percent.                                   es to the interaction between human, machine,
      Where resource conservation          and nature. The organic design allows the
is not possible, reuse and recycling       interior and exterior to merge—and the vehicle
come into play. Today, every Mer-          reacts and moves almost like a living be-
cedes car is already 95 percent recy-      ing. The battery is free of rare earths
clable. In addition, we are increas-       and metals, and the materials
ingly using secondary materials. By        are compostable and
2030, we are aiming for an average         therefore com-
share of 40 percent for the Mercedes-      pletely recyclable.
Benz car fleet.                                  This car is in-
      We will continue to follow the       spired by James Cameron’s
three Rs in all aspects of our manu-       fascinating world of Avatar. We worked
facturing because we are convinced         closely together with the team behind the
that the reduction, reuse, and recy-       Avatar saga to create this visionary show
cling of valuable raw materials is the     car that looks far into the future. The VI-
right way to reconcile further growth      SION AVTR emphasizes that
with the significantly reduced con-        the most effective
sumption of resources in an environ-       lever for combining
mentally compatible manner.                more mobility with
                                           lower emissions
Creating fascinating products              lies in technological
while leaving the smallest pos-            progress.
sible footprint                                  This pioneering spirit is part
     Our goal at Mercedes-Benz is to       of our DNA. More than 130 years ago, the
create fascinating, luxurious vehicles     founding fathers of our company were architects
that leave as small of a footprint as      of a new mobility without horses. Today, our
possible on the environment. As a          mission is individual mobility without emis-
luxury car brand, it is our job to de-     sions. And we face this task with enthusiasm—      Click here to view the
fine luxury at each moment in time.        for the benefit of our customers and for the       Mercedes-Benz video
We are convinced the luxury of the         future of our planet.                              on their future plans.

48   LIFESTYLES MAGAZINE PRE-SPRING 2021
How economic growth and resource conservation go together
GUEST EDITORIAL
                        Ola Källenius

PRE-SPRING 2021 LIFESTYLES MAGAZINE   49
How economic growth and resource conservation go together
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