According to Källenius, the company sees the "Paris Agreement [on climate change] is more than an obligation – it’s our conviction".
As such, Mercedes-Benz is aiming to have plug-in hybrid or pure-electric vehicles constitute over 50% of its car sales by 2030.
It says it will help EV owners to pick public charging stations using green energy via the Mercedes Me smartphone app.
In addition to reducing tailpipe emissions, the automaker says it will make all of its European factories carbon neutral by 2022.
Existing facilities will take their lead from the new Sindelfingen factory that will be carbon neutral from the start, and the new plant in Jawor, Poland, which relies heavily on wind power.
The company says it will work with environmental organisations to "assess the environmental impact of our supply chain", as well as work with suppliers to reduce their CO2 output, and make carbon targets a key part of its supplier selection policy.
Pay packages for board members will now also include sustainability targets.