At Climate Week 2024 in New York, Hydro and Mercedes-Benz are launching the long-term “Corridor” program for sustainable development in the Amazon.
The Corridor program is committed to promote positive impact to people and nature in the Amazon. In the program, Hydro and Mercedes-Benz will join forces, together with the Brazilian NGOs IPAM, Imazon, and CEA, Boston Consulting Group and other partners. The aim is to protect human rights, the generation of income for local communities, restoration of nature, and the development of low-carbon value chains in the region.
“We are excited to further develop our strategic partnership with Mercedes-Benz, expanding our collaboration beyond low-carbon product development to create positive social and environmental impact in the Amazon. Working together, we aim to lift sustainability throughout our shared value chain, from mine to end-consumer product, while fostering economic opportunities and biodiversity conservation in the communities where we operate,” says Eivind Kallevik, President and CEO of Hydro.
The program is aimed at generating social positive impact in the region along the bauxite slurry pipeline operated by Hydro in Brazil. The pipeline is stretching 244 kilometers through seven municipalities in the State of Para, from Hydro’s bauxite mine in Paragominas to the Alunorte alumina refinery in Barcarena.
“In managing our supply chains responsibly, we concentrate on three goals: The decarbonization of our products, the promotion of human rights and the focus on more sustainability over the vehicles' entire life cycle. The joint Corridor program manages to connect all three. In close cooperation with our partners, it has the potential to push the vertical integration of our supply chain to a new level,“ says Gunnar Güthenke, Head of Procurement and Supplier Quality at Mercedes-Benz Cars.
The partnership builds on the commercial agreement already existing between Hydro and Mercedes-Benz. In 2022, the companies committed to collaborate on a joint technology roadmap aiming to develop aluminium solutions approved for automotive applications with a CO2 footprint below 3.0 kgCO2/kgAl. The ambition is to approach near-zero aluminium towards 2030.
The identification of different projects under the Corridor program in the Amazon region will be driven by the communities living around the areas around the pipeline. This approach empowers local stakeholders to identify and prioritize projects that directly benefit their regions, with the aim to foster ownership and alignment with the program's overarching goals.
The program will be anchored on three strategic pillars:
- Economic development: The program will focus on identifying obstacles to the economic development and find solutions to improve the conditions for nature based value chains in the territory.
- Social development: The program will have a large-scale approach to social development, targeting (i) basic human needs, (ii) well-being and (iii) opportunities. That means to improve the overall quality of life for the region's residents and the program will pursue practical ways to implement improvements to the condition of life in the communities, mainly in rural areas, but also in more urban centers such as with the ongoing partnership with the Pará State Government for the TerPaz program.
- Environment and biodiversity conservation: The program will work on the conservation of biodiversity in the Amazon, required to ensure positive gains for nature and people. The program will work to identify opportunities to reduce degradation of forests as a first target and with an ambition to contribute to the regeneration of nature.
Since its founding in 1905, Hydro has been committed to developing the communities where it operates. Through the alumina refinery Alunorte and aluminium smelter Albras, Hydro has worked extensively to improve the quality of life in Barcarena by supporting initiatives such as sanitation, environmental protection, education, sports, culture and economic development. In the later years, Hydro has invested over 260 million BRL, approximately 47 million EUR, in 26 social programs in and around Barcarena.
The Corridor program builds on the existing initiatives developed by Hydro with local communities and the extensive experience of the NGOs in the Amazon region to scale up the positive impact of the program. The key is the long-term commitment of Hydro and partners to the territory, which enhances the capacity to bring valuable brands like Mercedes-Benz to contribute to development of the area.
The Corridor program will operate in strict compliance with Brazilian laws and regulations. This adherence reinforces the project's legitimacy and ensures that all activities are conducted within the legal framework of the country, thereby upholding the rule of law and promoting sustainable development practices.
It is estimated that the Corridor program has the potential to benefit around 8 percent of Para’s population. The program will be implemented by a multi-institutional project organization composed by the companies and organizations. Partners include, but are not limited to, Hydro Brazil, Alunorte, Mineração Paragominas (MPSA), Mercedes-Benz, IPAM, IMAZON, CEA, Hydro Sustainability Fund and Boston Consulting Group.
Hydro is committed to leading the way towards a more sustainable future, creating more viable societies by developing natural resources into products and solutions in innovative and efficient ways. Hydro is through its businesses present in a broad range of market segments for aluminium, energy, metal recycling, renewables and batteries, offering a unique wealth of knowledge and competence.
Towards 2030, Hydro will step up growth in aluminium recycling and extrusions, and its ambitions within renewable power generation. Hydro will execute on its decarbonization roadmap, and contribute to nature positive and a just transition, while shaping the market for greener aluminium.
Mercedes-Benz aims for its new vehicle fleet to be net carbon-neutral by 2039. The company focuses on reducing CO2 emissions and preserving resources through its "Design for Environment" approach. Together with partners, Mercedes-Benz collaborates to research sustainable materials and promote circularity.
Mercedes-Benz is dedicated to responsible raw material sourcing and advancing global mining standards. Key to this is ensuring low participation barriers for mining communities and indigenous peoples as well as effective certification schemes. The company is actively involved in various raw material initiatives and has extended partnerships with Bon Pasteur in the Democratic Republic of Congo and Terre des Hommes in India to support human rights. Mercedes-Benz aims to merge commercial success with responsible actions towards the environment, people, and society across the entire value chain.
Published: September 24, 2024
