Good afternoon, ladies and gentlemen, and welcome to the first Elmos ESG conference call and webcast. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation. Let me now turn the floor over to your host, Dr. Arne Schneider, CEO, and Ralf Hoppe, Head of Investor Relations, Public Relations, and ESG.
Ladies and gentlemen, good afternoon, and welcome to the first ESG conference call and webcast. Ralf and I are very happy to present today the main elements of our ESG strategy, highlights of our ESG activities, as well as information about our corporate carbon footprint and climate targets. You can follow our presentation via webcast or download it from our website. Of course, you have the opportunity to ask questions at the end of the presentation. The topic of sustainability is omnipresent in our daily lives, and the importance of sustainability is also growing in the economy for investors, for regulators, and for customers, and thus, also for Elmos. Sustainability is a fundamental part of our corporate strategy, and our commitment to social, ecological, and economic responsibility has been firmly anchored within our company for many, many years.
We define and think about sustainability holistically and consider all three aspects of sustainability in the process: economy and corporate governance, environment, as well as society. We have the opinion that today's global challenges cannot be solved without technology and innovation. This is why growth and sustainability go hand in hand, in our opinion, at Elmos. We aim to achieve long-term profitable growth and make a positive contribution to the environment and society. The foundation for developing the Elmos sustainability strategy and for defining our key ESG topics is a materiality analysis based on the 17 Sustainable Development Goals, so the SDGs of the United Nations. The SDGs thus form the basis of our ESG activities and goals.
Since, in particular, some social issues are reflected and promoted in part through the Elmos Foundation, the main sustainability targets have been analyzed for both the Elmos Group and the Elmos Foundation. Within the scope of the materiality analysis for the Elmos Group, six goals were identified as areas where Elmos, as a business, has the greatest influence. The full analysis, which can be found on our website, contains the approach taken within the Elmos Group and exemplary ESG policies and KPIs for each material sustainable development goal. We are aware of our responsibilities, which are reflected in numerous activities and projects throughout the company and along our value chain. Within the environmental pillar, we focus on environmental protection and climate action by reducing greenhouse gas emissions, our consumption of energy and water, as well as the generation of waste.
Elmos is certified in line with both the Environmental Management Standard, ISO 14001, and the Energy Management Standard, ISO 50001. These certifications are reviewed every year and are confirmed in repeat audits. We have initiated numerous activities and investments in all of our locations for environmental protection. For example, LED building lighting and PV systems, so solar power systems, wastewater, internal water systems, procurement of renewable energy, just to name a few. Social and employee matters are also a central topic. Elmos is proud to be able to offer its employees attractive workplaces at all of its locations. We set the highest standard in terms of occupational safety, which is why the Elmos Health and Safety Management System has been certified according to the strict requirements of ISO 45001.
Elmos places tremendous importance in human rights, diversity, and equal opportunities, and we have a zero-tolerance policy towards any form of unlawful discrimination, disadvantage, or. Compliance with valid laws, rules, and regulations is a fundamental principle at Elmos and an important part of the corporate culture and good corporate governance. Elmos condemns all forms of corruption and bribery or anti-competitive behavior, and we expect law-abiding behavior from all of our employees, business partners, and stakeholders. To comply with applicable laws and regulations, as well as internal rules and guidelines, Elmos set up a compliance management system. It includes the Code of Conduct for employees, as well as the Code of conduct for suppliers and business partners and a whistleblower system with various reporting channels. I hope you have had the chance to visit the sustainability menu on our website.
Our commitment to continuously increase the importance and focus on ESG is also presented through our comprehensive, transparent, and regular ESG reporting. A large number of ESG-related documents and key figures from the areas of environment, social, and governance, together with more in-depth information on our ESG strategy, is available on our website at elmos.com. With our broad and interactive ESG communication activities, we want to fulfill the different interests and requirements of the individual stakeholder groups. And of course, we have to meet the ever-increasing and more complex ESG-related regulations, like the EU Taxonomy or the EU CSRD, which by the way, create an enormous amount of additional administrative workload and cost for companies. How do we manage and organize the ESG activity? At Elmos, ESG-related activities are managed by a dedicated working group.
Relevant topics, as well as the publication and communication of ESG activities, key figures and policies, are coordinated by the Investor Relations Department, reporting directly to the CEO. Information on sustainability topics and stakeholder requirements are regularly exchanged with specialists from all relevant departments, in particular human resources, facility management, purchasing and sales, as well as environmental protection and occupational safety. Let me finish my part of the presentation with some information on our products and their impact on ESG topics before Ralf takes over. Elmos products make a major contribution to greater environmental protection and efficiency, health and safety, as well as comfort and well-being. Our innovative ICs make a significant contribution to improving human lives and protecting our environment. As the ESG product matrix shows, the majority of Elmos products can be attributed to multiple purposes simultaneously.
An analysis of our product application shows that more than 65% of group sales make a substantial contribution to the increased environmental protection and higher efficiency. Typical applications here would be our motor control ICs or thermal management, especially for EVs, but also sensor signal ICs for battery management, or ASICs for LED lights, save energy and reduce emissions in a vehicle. More than 75% of sales enhance safety and health. Elmos ICs for ultrasonic sensors are crucial for road safety and ADAS systems and autonomous driving, because they enable the precise 360-degree detection around the car. In addition to active systems, airbags also significantly increase the safety of occupants. Elmos airbag ICs enable the airbag control unit to inflate airbags in a fraction of a second, or to activate the seatbelt tensioner.
Modern vehicles are fitted with up to 30 different airbags to provide the best possible protection in an accident. Last but not least, around 54% of the group sales increase the comfort and well-being of end consumers. New dynamic ambient lighting concept, with the help of Elmos ICs, create emotions, increase the comfort and well-being, and warn of dangerous situations. In other words, Elmos Semiconductor Solutions are already making our world greener, safer, and more comfortable. Let me now hand over to Ralf, who will give you some more insight about our latest ESG milestones.
Yeah, thank you, Arne, and welcome also from my side. Good afternoon to everybody. Before I start my presentation, well, I would like to point out that we have calculated our first corporate carbon footprint, fully in-house, without any external support. So from my side, a big thanks to the ESG team and of course, to all other colleagues who contributed to, we think, this important milestone. I would also like to highlight that our CCF, our Corporate Carbon Footprint, covers data from the entire Elmos group, and it's based on our future organizational structure of Elmos as a fabless company. That means that all emissions produced in the Dortmund wafer fab fall under Scope 3, similar to our other external foundries.
The Elmos CCF is based on the recognized Greenhouse Gas Protocol. As you may know, it divides emissions into three categories. Scope 1, these are direct emissions from burning fuel in our own facilities. Scope 2, these are the indirect emissions from energy sourced externally, and Scope 3, indirect emissions from upstream and downstream supply chains. The main drivers in Scope 1 for Elmos are the emissions produced by natural gas, which is used in our own combined heat and power plant, so-called CHP, which is located in Dortmund.
Although it is powered with natural gas, our CHP will, of course, continue to play an important role in the transition phase, in the energy transition phase in the next couple of years, because it has an extremely high efficiency in the generation of electricity, heat, and cooling with minimal CO₂ emissions. Scope 2 emissions are almost exclusively attributable to purchased electricity. The GHG emissions reported here are mainly based on the energy mix of our electricity suppliers. Scope 3 includes or currently includes seven out of 15 Greenhouse Gas Protocol categories, with the focus currently on the upstream value chain. The remaining categories are either irrelevant, not material, or we currently do not have valid data here. The majority of Scope 3 emissions are attributable to purchased goods and services.
As a fabless company, you know, Scope 3 emissions are mainly driven by the processed wafers from our foundries, including the Dortmund wafer fab, plastics and packaging material. Some additional drivers are transportation, meaning logistics and the purchasing, the purchase of investment testing machines. The relatively high Scope 3 share is more or less typical for industry like semiconductors or automotive, where Scope 3 emissions account on average for more than 90% of the total greenhouse gas emissions. So with our first comprehensive CCF, we now have really a solid basis to define our climate targets. Of course, we will update our carbon footprint annually, and we'll optimize it with additional data when it's possible, of course, also on an ongoing basis.
As you know, we published a couple of days ago our ambitious climate targets. Our goal is to actively reducing greenhouse gas emissions and mitigating climate change. Again, here, just a short reminder, also, the Elmos climate targets are, of course, based on our future organizational structure as a separate company, also here without the Dortmund wafer fab. So the first step, we have decided to set climate targets for Scope 1 and Scope 2 emissions, that which you can influence directly. However, of course, we encourage and also expect from all of our suppliers to reduce their own GHG emissions, which then, of course, will indirectly reduce the Scope 3 emissions of our own CCF. Elmos plans to cut greenhouse gas emissions for its own activities.
That means Scope 1 and 2, by 40%, by 2026, compared to the base year, 2022. In order to achieve this significant reduction, the greenhouse gas emissions are to be cut by 10% annually over the next five years, and Elmos aims for its own activities to be completely carbon neutral or climate neutral by 2035. Elmos plans to achieve its climate targets through energy efficiency and renewable energy measures. For example, we're gradually making the shift to fully procuring our electricity from green sources, meaning renewable sources. We're also investing in photovoltaic panels in our headquarters in Dortmund. We plan additional energy-saving activities, such as installing high-efficiency pumps, optimizing our cooling systems, or replacing lighting with modern LEDs.
To become carbon neutral for our own activities by 2035, we will look for sensible alternatives for our CHP, for our combined heat and power plant. For example, heat pumps, renewable fuels, like biogas, or green hydrogen, to power the CHP units. Yeah, so ladies and gentlemen, our innovative ICs, our innovative products, have been helping to increase environmental protection and efficiency for many, many years. And again, I think now with our ambitious, ambitious climate targets, these are another major step towards improved climate action. So thank you very much for your attention, and back to Arne. Thanks.
Thank you, Ralf. Ladies and gentlemen, the Elmos ESG journey has just begun. We have ambitions, and we will continue to work on making an even greater contribution to sustainability in the future. Thank you very much for your attention, and I'm now opening the floor for questions.
Ladies and gentlemen, if you want to submit a question, please press nine followed by the star on your cell phone. If you want to remove your question, please press nine, followed by the star again. If you want to submit a question now, please press nine followed by the star. Once again, if you want to submit a question, please press nine, followed by the star on your cell phone to submit a question. So there are no questions coming in, so I will hand over back to Dr. Schneider.
So, ladies and gentlemen, thank you very much for your participation in the first Elmos ESG conference call. We are looking forward to presenting to you not only successful financial figures, but also more exciting news about our ESG activities and targets on a regular basis. Finally, I would like to wish everyone happy holidays and a good start into 2024. Goodbye for now, take care, and do stay confident.