Racing Green

Racing Green: How Mercedes F1 is Driving Sustainability Beyond Sport

From emissions to diversity, Head of Sustainability Alice Ashpitel reveals how F1 innovation sets the pace for sustainable global business practices

9/4/2024
Racing Green

This article covers:

  • Mercedes F1's strategies for reducing carbon emissions across its operations 
  • Efforts to increase diversity and inclusion in motorsport 
  • Innovations in sustainable fuels and technologies being pioneered by the team
In the high-octane world of Formula 1, where milliseconds can mean the difference between victory and defeat, the Mercedes-AMG PETRONAS F1 Team is racing towards a different type of finish line: a sustainable future for motorsport and beyond. 

As one of the most successful teams in F1 history, Mercedes is leveraging its platform to drive meaningful change, setting new standards for environmental responsibility and social impact in professional sports.

The Art of Smart has previously featured motorsports—Driving Sustainability And Growth: Learning From Formula E's Success, and the related Six Steps To Create A Culture Of Sustainability: Tips From Formula E—as there are clear lessons business leaders can learn.

Mercedes F1's latest Sustainability Report, published in mid-July 2024, covering January to December 2023, showcases impressive progress despite an expanding race calendar and business growth. 

Key achievements include:
  • A 10 percent reduction in market-based Race Team Control emissions.
  • Saving 6,695 tCO2e through sustainable aviation fuel use.
  • A 67 percent emissions reduction in European logistics operations using biofuel.

The team has also made significant strides in diversity and inclusion, consistently exceeding its target of 25 percent new hires from under-represented groups.

Toto Wolff, Team Principal and CEO, emphasizes the importance of this mission. "We are privileged to work in a sport that demands high-performance teamwork, technology, and innovation," says the Austrian. "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."

He continues: "Performance at any cost without the thought of wider repercussions is no longer acceptable in today's world. Performance needs to be achieved within societal and planetary boundaries, but being sustainable doesn't have to mean compromise."

As businesses across industries grapple with the urgent need for sustainable transformation, the Mercedes F1 team's approach offers valuable lessons. Its holistic strategy, encompassing environmental stewardship, social responsibility, and ethical governance, demonstrates how organizations can achieve high Performance while driving positive change. 

In the race towards a sustainable future, Mercedes F1 shows that speed and responsibility can go hand in hand. Here, the Art of Smart interviews Alice Ashpitel, Head of Sustainability at Mercedes-AMG PETRONAS F1 Team.

Art of Smart (AoS): Formula 1 launched an ambitious sustainability strategy in 2019. What progress has been made towards those goals, particularly by the Mercedes team?

Alice Ashpitel (AA): Formula 1's sustainability strategy set ambitious targets, including achieving net-zero carbon by 2030 and delivering 100 percent sustainable fuels. As a leading team in the sport, we at Mercedes F1 have fully embraced these goals and are working hard to meet them and set new standards for sustainability in motorsport and beyond.

We've made significant strides in several key areas. On the environmental front, we've focused on tackling our biggest sources of emissions—travel and logistics. In 2022, Mercedes F1 became the first global sports team to invest in sustainable aviation fuel (SAF) through a book-and-claim model and long-term refinery investment. This was a significant step in addressing our air travel emissions, which account for a substantial portion of our carbon footprint.

We've also made great progress in our ground operations. In 2023, following a successful pilot, we rolled out the use of HVO100 biofuel in our freight trucks during the European race season. This initiative alone achieved a 67 percent reduction in emissions compared to traditional diesel, saving 339 tonnes of CO2. We're now looking at expanding the use of biofuels to other aspects of our operations, including our trackside generators.

On the social side, our Accelerate 25 program has been driving increased diversity and inclusion within our team. We set a target of having at least 25 percent of new employees come from underrepresented groups by 2025. I'm proud to say that we've consistently exceeded this goal since 2021. In the first half of 2023, 37 percent of our new team members came from underrepresented groups. We've also seen notable increases in female team members to 16.6 percent and team members from minority-ethnic backgrounds to 8.9 percent.
 
Toto Wolff
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. Performance at any cost without the thought of wider repercussions is no longer acceptable in today's world. Performance needs to be achieved within societal and planetary boundaries, but being sustainable doesn't have to mean compromise.
Toto Wolff
Toto Wolff
Team Principal and CEO
Mercedes-AMG PETRONAS F1

LEWIS HAMILTON DISCUSSING ACCELERATE 25

These are just a few examples of our progress, demonstrating our commitment to integrating sustainability into every aspect of our operations. We recognize that we're still at the beginning of this journey, but we're dedicated to continuous improvement and innovation in pursuit of our sustainability goals.

AoS: Scope 3 emissions represent most of Formula 1's carbon footprint. Given the sport's global nature, how is Mercedes F1 approaching this challenge?


AA: You're right that Scope 3 emissions, which include all our indirect emissions from activities like travel, equipment transportation, and our supply chain, represent the lion's share of our carbon footprint. This is a significant challenge for us, especially considering the global nature of Formula 1, which takes us to over 20 countries in a season.

Our approach to tackling Scope 3 emissions is multifaceted. First, we've identified that over a quarter of our emissions come from aviation. That's why our investment in SAF has been so crucial. By being the first global sports team to invest in SAF, we're reducing emissions and helping drive demand and investment in this emerging market.

But our efforts extend beyond just fuel. We're looking at our entire supply chain, from parts manufacturing to materials disposal. Last summer, throughout the European F1 season, we significantly increased our use of HVO100 biofuel in our race and marketing trucks and generators. This initiative alone saved 339 tonnes of CO2 emissions. Despite some challenges with supply fluctuations in certain regions, we exceeded our initial emissions reduction target.
We're also focusing on localizing our operations where possible. With many races returning to the same locations year after year, we're exploring the possibility of setting up regional storage hubs to minimize freight journeys. We're also implementing sustainable travel policies for our employees and looking at ways to source materials and services locally when we're at race locations.

Another important aspect of our Scope 3 strategy is collaboration. We're actively engaging with our suppliers and partners to help them reduce their emissions. This ripple effect can lead to significant reductions across our entire value chain.

By traveling to different regions worldwide, we can drive demand for sustainable solutions in these markets. We see this as part of our responsibility—to reduce our own emissions and catalyze change in the places we visit.

Tackling Scope 3 emissions is undoubtedly one of our biggest challenges, but it's also where we see some of the greatest opportunities for innovation and impact. Every race, every mile, and every choice we make is an opportunity for improvement.

AoS: How important are sustainable aviation fuels and other biofuels in greening the sport? What have you learned so far?

AA: Sustainable aviation fuels (SAF) and other biofuels are crucial to our strategy to reduce carbon emissions in Formula 1. Our investment in SAF reflects our commitment to pioneering change and significantly reducing our environmental footprint.

One key advantage of SAF is that it's designed to be a drop-in fuel, compatible with existing aircraft and infrastructure. This makes it a practical and immediate solution to cutting down aviation-related emissions, which, as I mentioned earlier, account for a significant portion of our carbon footprint.

Our active involvement in the SAF book-and-claim market aims to increase demand and incentivize further investment in production. By doing so, we strive to catalyze the availability and affordability of sustainable fuels not just for our sport, but for the aviation industry as a whole.

Regarding biofuels, we've seen promising results in our racing logistics. Using HVO100 biofuel in our trucks and generators during the European season has allowed us to harness renewable biological sources to power our fleet. This has significantly reduced greenhouse gas emissions compared to fossil fuels and improved local air quality.

However, we've also encountered some challenges in adopting these sustainable fuels. For instance, the current production and availability of SAF stands at less than 0.1 percent of global jet fuel consumption. This indicates a significant untapped potential and a major hurdle in scaling up production to meet demand.

Sourcing is another crucial issue. We're committed to ensuring that the biomass used for these fuels doesn't compete with food production or contribute to deforestation. This requires careful consideration and due diligence in our procurement processes.

One of our key learnings has been the importance of collaboration in driving innovation in this space. Our partnerships with fuel experts and technical partners have been instrumental in exploring the viability of next-generation biofuels. For example, our extended partnership with PETRONAS beyond 2026 is focused on pioneering the transition to 100 percent advanced sustainable fuels in line with upcoming F1 regulations.

We've also learned that championing these sustainable fuels can inspire other businesses and industries to join the movement. This is vital for driving further investment in production and making these fuels more accessible and affordable in the long run.
While there are challenges to overcome, we're encouraged by the progress we've made and the potential we see in sustainable fuels to make our sport significantly greener.

AoS: How are you reducing the environmental impact of racing events themselves? How do you engage spectators and fans in these efforts?

AA: While we don't organize the races ourselves, we're committed to addressing our operations' environmental impact at home and on the track. Our initiatives and investments aim to reduce our footprint wherever we go racing.

One of our key strategies is to minimize waste and conserve energy at every event. For example, we've implemented energy-saving measures in our paddock club and use biofuels in our trackside generators. We've also started keeping some of our equipment in strategic regional locations to reduce the need for long-haul transport between races.

In our motorhomes and hospitality suites, we've eliminated single-use plastics, switched to sustainable materials, and implemented recycling systems that align with our waste reduction goals. These might seem like small steps, but they significantly reduce our environmental impact when implemented consistently across all races.

Engaging our fans and spectators in these efforts is crucial; we see it as a great opportunity. Formula 1 has seen immense growth in its fan base in recent years, particularly among younger, more socially conscious audiences. We're using our platform to influence and inspire these fans to think about sustainability in their own lives.

We regularly communicate our sustainability initiatives through our social media channels and at-track activations. We share behind-the-scenes content showing how we're implementing sustainable practices, and we encourage fans to make sustainable choices when attending races, such as using public transport or bringing reusable water bottles.

We also work with our partners to create engaging, sustainability-focused content and activations. For instance, we might collaborate with PETRONAS to educate fans about sustainable fuels, or work with other partners to showcase innovative technologies that are helping to reduce our environmental impact.

Furthermore, we're exploring ways to make our fan experiences more sustainable. This includes offering more plant-based food options in our hospitality areas, using digital tickets to reduce paper waste, and creating merchandise made from recycled or sustainable materials.

Ultimately, by demonstrating our commitment to sustainability and engaging our fans in these efforts, we can have an impact far beyond the racetrack. We're not just racing cars; we're racing towards a more sustainable future, and we want our fans to be part of that journey.

AoS: Mercedes F1 aims to be one of the world's most sustainable professional sports teams. What does that goal mean in the short, medium, and long term?

AA: We passionately pursue our vision to become one of the world's most sustainable professional sports teams. This ambition goes beyond environmental sustainability and encompasses social responsibility and economic viability as well.

In the short term, we focus on significantly reducing our carbon emissions through strategic choices in fuel, energy, and logistics management. We're also enhancing our diversity and inclusion initiatives, like our Accelerate 25 program, to create a more representative workforce. Success in the short term looks like consistently exceeding our targets for emissions reduction and diversity in hiring, which we're already achieving.

In the medium term, we're concentrating on integrating sustainable technologies more deeply into our operations and vehicles. This includes our work on advanced sustainable fuels with partners like PETRONAS, which will be crucial for the next generation of F1 engines coming in 2026. We're also focusing on influencing our suppliers and partners to prioritize sustainability in their operations. Success in this timeframe would see us making substantial progress towards our Net Zero goals, pioneering new sustainable technologies, and seeing a ripple effect of our efforts throughout our supply chain.

In the long term, our vision is to achieve a complete transformation to a more sustainable model of operation that will not only redefine our team but also set a new standard for Formula 1 and professional sports in general. This includes reaching Net Zero emissions, where we've substantially reduced our emissions and eliminate any remaining hard-to-abate emissions annually using durable, long-term carbon removal solutions. We also aim to have a fully diverse and inclusive workforce that reflects the global communities we engage with.

But our ambition goes beyond just our own operations. We want to use our platform and influence to drive greater change in motorsport. Success in the long term would see us achieving our sustainability goals and inspiring and enabling other teams, sports, and industries to follow suit. We envision a future where sustainable practices are the norm in professional sports, and where the innovations we develop in F1 are helping to address global sustainability challenges.

Ultimately, success for us means proving that achieving the highest performance levels is possible while also being a responsible global citizen. We want to show that sustainability and success are not mutually exclusive—in fact, we believe that in the future, true success will be impossible without sustainability at its core.

AoS: What does sustainable leadership look like, and how does it align with partners like PETRONAS, your title and technical partner and an oil and gas giant?

AA: Sustainable leadership is about fostering resilience, driving innovation, and creating value in a way that respects people, planet, and profit now and in the future. It's about having the vision to see beyond short-term gains and make decisions to ensure long-term success and positive impact.

In the context of Mercedes F1, sustainable leadership is a top-down approach championed by Toto. At the same time, it's also bottom-up, with our team members and fans calling for more sustainable action. This alignment creates a powerful drive for change throughout our organization.

One key aspect of sustainable leadership is the willingness to collaborate and share knowledge. We recognize that the challenges we face are too big for any one organization to solve alone. That's why we've established a Sustainability Working Group, which provides a forum to regularly engage with our partners on sustainability priorities and explore actionable solutions.

Our partnership with PETRONAS exemplifies how sustainable leadership can align with and transform traditional industries. While PETRONAS is an oil and gas company, it's also investing heavily in the transition to cleaner energy solutions. Our collaboration goes beyond just putting their logo on our car—we're working together to pioneer sustainable technologies that can have an impact far beyond the racetrack.

Sustainable leadership also means being transparent about our challenges and progress. We're committed to regularly reporting on our sustainability efforts, sharing our successes and areas where we need to improve. This transparency builds trust with our stakeholders and helps to drive accountability.

Finally, sustainable leadership is about using our platform responsibly. As a high-profile sports team, we have the opportunity to influence millions of fans around the world. We take this responsibility seriously, using our voice to raise awareness about sustainability issues and inspire action.

Sustainable leadership means being bold in our ambitions, collaborative in our approach, innovative in our solutions, and responsible in our actions. It's about recognizing that our success as a team is intrinsically linked to our planet's health and our communities' wellbeing. By aligning our partners, including PETRONAS, with this vision, we can drive meaningful change within our team, our entire industry, and beyond.
Alice Ashpitel
We set a target of having at least 25 percent of new employees come from underrepresented groups by 2025. I'm proud to say that we've consistently exceeded this goal since 2021. We're actively engaging with our suppliers and partners to help them reduce their emissions. This ripple effect can lead to significant reductions across our entire value chain. Ultimately, success for us means proving that achieving the highest performance levels is possible while also being a responsible global citizen. We want to show that sustainability and success are not mutually exclusive—in fact, we believe that in the future, true success will be impossible without sustainability at its core. Sustainable leadership is about fostering resilience, driving innovation, and creating value in a way that respects people, planet, and profit now and in the future. It's about having the vision to see beyond short-term gains and make decisions to ensure long-term success and positive impact.
Alice Ashpitel
Alice Ashpitel
Head of Sustainability
Mercedes-AMG PETRONAS F1

Key takeaway questions

  • How is your organization measuring and addressing its Scope 3 emissions? Are there opportunities to collaborate with partners or suppliers to reduce these emissions?
  • What role can sustainable fuels or other innovative technologies play in reducing your company's environmental impact?
  • How are you engaging your customers or stakeholders in your sustainability efforts? Are there opportunities to use your platform to inspire wider change?
  • What does sustainable leadership look like in your industry? How can you foster a culture of sustainability throughout your organization?
  • How are you aligning your long-term business strategy with sustainability goals? Are there opportunities to turn sustainability challenges into competitive advantages?
 

Selected Statistics

Formula 1's sustainability targets include achieving net-zero carbon by 2030 and delivering 100 percent sustainable fuels 
In the first half of 2023, 37 percent of Mercedes F1 team’s new members came from underrepresented groups 
The team has achieved a 67 percent emissions reduction in European logistics operations using biofuel 
Formula 1's sustainability targets include achieving net-zero carbon by 2030 and delivering 100 percent sustainable fuels 
In the first half of 2023, 37 percent of Mercedes F1 team’s new members came from underrepresented groups 
The team has achieved a 67 percent emissions reduction in European logistics operations using biofuel