Mercedes-AMG PETRONAS F1 Team’s Climate Transition Action Plan

Mercedes F1 commits to net zero by 2040

Mercedes-AMG PETRONAS F1 Team has published its first Climate Transition Action Plan. The document sets out how the team will reach net-zero greenhouse gas emissions across all scopes by 2040. By 2030, the team targets a 42% reduction in total emissions against its 2018 baseline.

This makes Mercedes F1 one of the first motorsport teams to publish such a detailed roadmap. The plan addresses direct operations, energy use, and the complex logistics of running a global racing team. For UK businesses watching sustainability leaders in action, this shows how even carbon-intensive operations can commit to measurable change.

The plan matters because it tackles aviation, freight, and travel emissions that many organisations struggle to address. These fall into Scope 3, the category that covers value chain activities beyond direct control. Mercedes F1 has also shifted from traditional carbon offsetting to permanent carbon removal, reflecting a more rigorous approach to compensation.

Motorsport operates under intense scrutiny. However, the strategies outlined here translate to other sectors facing similar logistics challenges. Understanding how a high-performance team manages emissions while maintaining operations offers practical insight for businesses balancing growth with environmental responsibility.

Emissions reduction targets and timeline

The plan breaks down into three milestone dates. Each one addresses different emission sources and uses different methods to achieve reductions.

By 2026, the team will eliminate 100% of Scope 1 and Scope 2 emissions compared to 2018 levels. Scope 1 covers direct emissions from owned sources like facilities and vehicles. Scope 2 relates to purchased energy. Eliminating these emissions within five years requires switching to renewable energy contracts and changing on-site fuel use.

The 2030 target is more complex. Mercedes F1 aims for a 75% reduction in Scope 3 emissions within what it calls Race Team Control. This covers activities the team can influence directly, such as freight choices and hotel selection. The remaining 25% will be compensated through Carbon Dioxide Removal credits rather than conventional offsets.

By 2040, the team commits to net zero across all three scopes. Importantly, any residual emissions will be compensated exclusively through carbon removal. This means no offsetting through renewable energy credits or avoided emissions projects. The team will only use methods that physically extract CO2 from the atmosphere.

Between 2024 and 2030, Mercedes F1 aims to compensate for 18,900 tonnes of CO2 equivalent. To put that in context, a typical UK SME might produce 50 to 200 tonnes annually depending on sector and size. The scale reflects the carbon intensity of global motorsport logistics.

Shift to carbon removal technologies

Mercedes F1 has partnered with a UK-based portfolio manager to access six different carbon removal technologies. This diversified approach spreads risk and supports emerging solutions at different stages of development.

The portfolio includes direct air capture, which uses chemical processes to extract CO2 from ambient air. It also features bioenergy with carbon capture and storage, where biomass is burned for energy and the resulting CO2 is captured and stored underground. Enhanced rock weathering is another method, speeding up natural processes that lock carbon into minerals.

In 2024, the team began moving away from Gold Standard offset projects. These typically involve renewable energy or forestry initiatives that prevent emissions or sequester carbon temporarily. The new approach prioritises permanent removal, aligning with the Oxford Offsetting Principles. These principles recommend that organisations transition from offsetting to removal as technologies mature.

Near the team’s UK headquarters, a three-year soil carbon project will remove CO2 by improving agricultural land management. Soil can store significant amounts of carbon when managed correctly. This project provides a local, verifiable example of removal within the team’s operational footprint.

Mercedes F1 has also signed an agreement with Frontier, a group that advance-purchases carbon removal credits to accelerate technology development. By committing funding early, the team helps nascent technologies reach commercial scale. This benefits both the team’s future needs and the wider market.

Sustainable aviation fuel investment addresses largest emission source

Aviation accounts for more than 25% of Mercedes F1’s projected carbon footprint. With a calendar spanning five continents, air travel is unavoidable. Consequently, the team has made what it describes as a multi-million-dollar investment in Sustainable Aviation Fuel.

SAF is produced from waste oils, agricultural residues, or synthetic processes. It can reduce lifecycle emissions by up to 80% compared to conventional jet fuel, depending on feedstock and production method. Importantly, SAF works with existing aircraft engines and infrastructure, making adoption more straightforward than alternative technologies.

This investment will cut the race team’s air travel footprint by nearly 50%. The remaining emissions will be offset through Gold Standard projects until SAF becomes more widely available. This pragmatic approach recognises that supply currently limits broader SAF adoption.

Mercedes F1 became the first global sports team to invest in SAF at this scale. The move supports market growth by demonstrating demand beyond the aviation sector. In Formula 1, aviation costs sit outside the cost cap, meaning teams can invest in SAF without affecting their competitive budget. This removes a barrier that might otherwise discourage spending on sustainable alternatives.

For UK businesses with significant travel footprints, SAF is becoming an option worth exploring. Supply remains limited and costs are higher than conventional fuel. Nevertheless, early investment signals commitment and helps develop the market infrastructure needed for broader adoption.

Formula 1 context and regulatory alignment

Mercedes F1’s plan sits within Formula 1’s wider commitment to reach net zero carbon by 2030. The championship has introduced regulations requiring all cars to run on 100% advanced sustainable fuels from 2026. These fuels must meet strict lifecycle emissions criteria and cannot compete with food production.

The 2026 fuel regulation affects all teams equally. It removes one of the most visible sources of emissions, even though race fuel contributes relatively little to the sport’s total footprint. The bigger challenge lies in logistics, infrastructure, and the movement of teams, equipment, and spectators around the world.

Mercedes-AMG PETRONAS F1 Team operates as part of the wider Mercedes-Benz Group. However, its 2040 net-zero target differs from the parent company’s ambition for net carbon neutrality across its vehicle fleet by 2039. The team’s plan focuses on operational and logistical emissions rather than product lifecycle impacts. This distinction matters because it clarifies accountability and measurement boundaries.

In 2025, the team reported that its business grew while net carbon emissions fell compared to the previous year. This decoupling of growth from environmental impact demonstrates that expansion and emissions reduction can happen simultaneously. For businesses concerned that climate action will constrain development, this provides a tangible counter-example.

What this means for UK businesses

Mercedes F1’s plan offers several lessons for organisations managing complex supply chains and logistics. First, it shows the value of setting milestone targets at different intervals. The 2026, 2030, and 2040 structure allows for near-term action while maintaining long-term direction. Businesses can apply this approach by breaking down net-zero commitments into manageable phases.

Second, the shift from offsetting to removal reflects changing expectations around carbon compensation. Offsetting has faced criticism for lacking permanence and additionality. Removal technologies, though more expensive, provide higher integrity. UK businesses should consider whether their current offsetting strategy will meet future stakeholder expectations or regulatory requirements.

Third, the focus on Scope 3 emissions is increasingly relevant. Many organisations find Scope 3 accounts for 70% to 90% of their total footprint. Mercedes F1’s Race Team Control concept identifies which Scope 3 activities can be influenced directly. This pragmatic boundary-setting helps prioritise action where it will have the most impact.

SAF investment demonstrates how businesses with unavoidable emissions can support market development. Aviation remains difficult to decarbonise fully. By investing in alternatives, organisations can reduce their footprint while helping the industry transition. Similar logic applies to other hard-to-abate sectors like heavy transport or industrial processes.

For businesses tendering for public sector contracts, this level of climate transparency may soon become standard. Procurement Policy Note 06/21 already requires carbon reduction plans for contracts above £5 million annually. Publishing a detailed transition plan, as Mercedes F1 has done, signals credibility and preparedness.

Five key points to understand

• Mercedes-AMG PETRONAS F1 Team will reach net zero across all emission scopes by 2040, with interim targets of eliminating Scope 1 and 2 emissions by 2026 and cutting Scope 3 by 75% by 2030.
• The team has moved from traditional carbon offsetting to permanent carbon removal, using technologies including direct air capture, bioenergy with carbon capture, and enhanced rock weathering.
• A multi-million-dollar investment in Sustainable Aviation Fuel will reduce air travel emissions by nearly 50%, addressing aviation’s 25% share of the team’s carbon footprint.
• Between 2024 and 2030, the team will compensate for 18,900 tonnes of CO2 equivalent through a diversified portfolio of removal projects managed by a UK-based partner.
• The plan aligns with Formula 1’s 2030 net-zero target and the 2026 requirement for all cars to use 100% advanced sustainable fuels, while maintaining operational growth alongside emissions reduction.

How businesses can apply these principles

UK organisations facing similar challenges can draw practical guidance from this approach. Start by mapping your emissions across all three scopes. Many businesses find Scope 3 is the largest but least understood category. Identifying which activities you can influence directly, as Mercedes F1 has done with Race Team Control, helps focus effort where it matters most.

Set milestone targets rather than a single distant goal. A 2040 or 2050 net-zero commitment sounds ambitious but lacks urgency. Breaking this into 2026 and 2030 milestones creates accountability and allows for course correction. Each milestone should specify which emission sources will be addressed and by what percentage.

Review your current carbon offsetting strategy. If you rely on forestry or renewable energy credits, consider whether these will meet future expectations. Permanent removal technologies are more expensive today but offer higher integrity. A phased transition, moving a percentage of your compensation budget to removal each year, manages cost while improving credibility.

For organisations with significant travel footprints, explore SAF options now. Supply is limited but growing. Early engagement with airlines or fuel suppliers helps you understand availability, cost, and procurement pathways. Similarly, if freight is a major emission source, investigate low-carbon logistics providers and consolidation opportunities.

Consider publishing your own climate transition plan. Transparency builds trust with customers, investors, and employees. It also provides a framework for internal decision-making. A published plan makes targets concrete and creates external accountability. This matters increasingly for ESG compliance and carbon reporting requirements affecting UK businesses.

Training teams to understand emissions reduction is essential. Carbon literacy varies widely across organisations. Ensuring that procurement, operations, and leadership teams understand Scope 3, removal versus offsetting, and supplier engagement will improve implementation. Structured learning programmes can build this capability internally.

Finally, align your climate plan with your commercial strategy. Mercedes F1 has shown that emissions can fall while business grows. This requires integrating climate considerations into capital investment, supplier selection, and operational decisions from the start. Treating sustainability as a compliance exercise rather than a business opportunity misses the point.

Further information and resources

The UK government provides guidance on carbon measurement, reporting, and net-zero planning through the Department for Energy Security and Net Zero. Their Net Zero Strategy sets out the national framework and sector-specific pathways.

For businesses needing to comply with carbon reporting requirements under PPN 06/21, detailed guidance is available through structured carbon reporting programmes that help organisations measure, reduce, and document emissions in line with procurement standards.

The Science Based Targets initiative offers detailed resources on setting emissions reduction targets consistent with climate science. Their guidance documentation explains how to calculate baselines and define reduction pathways for different scopes.

Information on Sustainable Aviation Fuel, including current UK supply and policy support, is available through the Department for Transport’s SAF Mandate consultation documents.

Businesses exploring carbon removal technologies can find independent analysis through the UK research community and government-funded programmes examining direct air capture, bioenergy with carbon capture, and nature-based solutions.