How Mercedes-Benz Drives Efficiencies with SAP's ESG Data

The introduction of the Corporate Sustainability Reporting Directive (CSRD) by the European Union brings wide-reaching implications for industrial firms operating across the bloc. 

Under this regulatory framework, companies must now collect and disclose detailed environmental, social and governance (ESG) data using standardised European Sustainability Reporting Standards (ESRS). 

For a multinational automotive manufacturer like Mercedes-Benz Group, this presents a manufacturing-scale data challenge requiring a coordinated response.

The German brand needed a cloud-based, integrated platform that could support real-time data analysis and ESG reporting across multiple divisions, sites and countries. 

To meet the challenge, it turned to SAP’s Sustainability Control Tower to centralise data flows, streamline reporting processes and establish key performance indicators (KPIs) capable of meeting audit and compliance expectations.

Meeting CSRD demands through manufacturing data integration

Mercedes-Benz’s sustainability targets are structured under its Ambition 2039 programme, which outlines a clear route to achieving carbon neutrality across its entire value chain by 2039. 

That includes manufacturing operations, supply chains, logistics and product lifecycle. 

To manage this, Mercedes-Benz identifies six ESG priority areas: decarbonisation, resource use and circularity, people, human rights, digital trust and traffic safety.

Project Manager for Sustainability Performance Management at Mercedes-Benz Group AG, Jochen Herold, outlines the scale of the task: "We had obviously been reporting on sustainability since 2006, but this new regulation brought things to a whole new level in terms of the sheer volume of data required. 

“We had to report in a standardised and auditable way on a huge range of KPIs, for example energy consumption, and break these down into numerous data points, such as the individual energy sources involved.”

According to SAP, the solution now captures about 95% of the necessary data points required under CSRD through automated workflows. 

This includes 70 auditable KPIs and approximately 220 related data points, giving manufacturing leaders a granular overview of environmental and operational metrics.

Digital infrastructure for global sustainability reporting

In the manufacturing industry, the effectiveness of sustainability reporting increasingly hinges on a company's digital infrastructure. 

For Mercedes-Benz, selecting SAP Sustainability Control Tower was the result of a thorough assessment of options. The platform is now fully integrated with SAP Datasphere, forming a centralised hub for collecting and managing sustainability data. 

It also connects with SAP Analytics Cloud and the group’s third-party disclosure tool to ensure that reporting workflows are both auditable and efficient.

The system had to be rolled out quickly. Mercedes-Benz set a 12-month implementation timeline, requiring data to be pulled from departments and production sites in nearly 40 countries. 

The company also had to coordinate across its three business divisions: passenger cars, vans and mobility services.

“We’re a large company with three different divisions - cars, vans and mobility - and a complex organisational and master data structure,” says Jochen.

Under ESRS guidelines, companies must report specific KPIs using defined formulas. While firms can build custom reporting frameworks, SAP's platform includes a preconfigured semantic data model aligned with the CSRD. 

This allows manufacturing firms to select from predefined ESG indicators and import the necessary datasets with fewer technical barriers.

The software-as-a-service (SaaS) model also reduces IT overhead, lowering infrastructure and server costs — a relevant benefit for manufacturers managing multiple facilities and complex supply networks.

Manufacturing scalability and compliance at speed

Mercedes-Benz met its initial CSRD reporting deadline by automating ESG data collection through its group-wide consolidation systems, improving both speed and accuracy.

Factory and business unit teams have responded positively to the tool’s practical features, including real-time validation, audit trails, email alerts and preview reports. 

These elements help minimise manual effort while enhancing reporting transparency — both crucial in high-volume production environments where traceability is key.

SAP’s Business Transformation Services supported the implementation through strategic consultation and best-practice guidance, helping Mercedes-Benz navigate technical challenges and align the solution with operational structures.

Following a proof of concept, Mercedes-Benz deployed the system across its global sustainability reporting team within one year. The result is a manufacturing-ready solution that supports internal decision-making, boosts engagement and ensures compliance with EU sustainability legislation.

Discussing the initiative on LinkedIn, Anita Varshney, Global Vice President, Strategic Customer Engagements at SAP Sustainability, said: “Our joint ambition was to enable them to efficiently collect, analyse and report on ESRS within a short time frame, automating this reporting process across 50+ business stakeholders.”