Welcome, everybody. On behalf of Mercedes-Benz, it is my distinct honor and privilege to welcome you to our fourth Sustainability Update. My name is Renata Jungo Brünger, member of the Board of Management responsible for integrity, governance, and sustainability. We are delighted to have such a distinguished group of sustainability analysts and investors joining us from various corners of the globe. Thank you for taking the time to be with us today. Our presence here underscores the importance of our collective efforts and shared commitment to sustainability.
We are confident that this Sustainability Update will provide you with valuable insights. We look forward to your active participation during the Q&A session at the end of the event. Unfortunately, Ola Källenius, Chairman of the Board of Management of Mercedes-Benz, can't join us in person today. However, it was highly important to him to get his message across, so he pre-recorded his speech to share his thoughts and insights. Please join me in welcoming Ola's video message.
Welcome, everybody. At our Capital Market Day in February, we gave an update on our products, technologies, and efficiency measures. Today, we will provide an update on our progress in terms of sustainability. This continues to be crucial for Mercedes-Benz. The current situation is characterized by the green transformation, macroeconomic uncertainties, and interplay of geopolitical tensions. One lever for decarbonizing individual mobility is electrification. However, the transformation will take longer than most people expected. As you can see here, the adoption of battery electric vehicles differs significantly from region to region. That has various reasons, from regulatory framework conditions to charging infrastructure and consumer sentiment. Our task is clear: reconciling competitiveness with our sustainability efforts. To make this happen, we're in close dialogue with political decision-makers in the EU and beyond. In my role as a SEAG President, I can promise you Europe's automotive industry is committed to decarbonization.
Today, customers can choose from a range of electric and electrified vehicles that is larger than ever before, and there's a lot more to come. Going forward, we need a market-driven, realistic approach to decarbonizing our industry in Europe in which the customer benefits from electric mobility. That's why we appreciate the EU proposal to fulfill the CO2 targets over a three-year period. Both our industry and politicians share responsibility of shaping a realistic path to 2035. The right framework conditions are absolutely essential to realizing our goals. We're doing our part. In 2019, we set a milestone with our Ambition 2039, aiming for a net carbon-neutral new car fleet by the end of the next decade. It's a core element of our sustainable business strategy. What's more, we're pushing forward the green energy transition and working to decouple resource consumption from volume growth. This is our new CLA.
It plays a vital role in delivering on our Ambition 2039. We have achieved a reduction in its carbon footprint of over 40% along the entire value chain compared to its non-electric predecessor. We're also making batteries more sustainable. The new battery generation reduces the CO2 footprint by 30% per cell. We will also build the CLA in a more sustainable way. Production in Rastatt is net carbon neutral and powered by 100% green electricity. We plan to build a car in China too. At BBAC, we aim to achieve a fully sustainable electricity supply by 2028. This leads me to a topic which is particularly important for our customers. The CLA is also sustainable when being driven. It is the most efficient series-built Mercedes-Benz ever, known as the one-liter car of the electric age. It has an energy consumption of just 12.2 kilowatt-hours per 100 kilometers.
The CLA has a range of up to 792 km on a single charge, according to WLTP. According to the Chinese CLTC cycle, it can achieve over 850 km. Charging the car will be a breeze, almost like fueling. You can recharge up to an extra 325 km of range within just 10 minutes. This brings me to the next topic. We aim to ease the lives of our customers with fast, convenient charging solutions, whether on the go, at home, or at work. Mercedes-Benz provides access to one of the largest charging networks with over 2.3 million points. In the U.S., Canada, and Europe, we rely on a green energy supply within this network. If green energy is not available, we ensure that an equivalent amount of electricity from renewable sources is fed into the power grid for charging processes.
The CLA also delivers on our promise in another strategic field: digitalization. It's a software-defined vehicle in which our new MBOS operating system will debut. This provides next-level infotainment and comfort while ensuring data security for our customers. The CLA is a technological front-runner in terms of driver assistance as well. It's equipped with 27 sensors and cameras. This is the key to bringing next-level ADAS to the road, and it makes Mercedes-Benz the first international OEM to launch a Level 2++ system in China. All in all, the CLA is highly competitive in every relevant area: efficiency, charging speed, and software. This car is an important strategic milestone in our product strategy, and it kicks off the greatest product launch program in the history of Mercedes-Benz. As illustrated on this chart, we will introduce dozens of new models over the next three years.
We will continue to build the perfect Mercedes-Benz for every customer well into the 2030s. For BEVs, we will keep expanding our lineup and advancing the technology. For ICEs, we will take efficiency to the next level. To realize the technological transformation, we need financial strength. That is why we have set up a comprehensive program to sustainably improve our competitiveness. Working on it together is key to remaining a reliable employer and extending the job security at our German sites until 2035. The best way, however, to safeguard a bright future is through leading products. Our ambition is to continue pushing technological boundaries. For almost 140 years, the Mercedes-Benz Star has been a symbol of engineering excellence and trust. We will continue to deliver on that promise. Our approach goes far beyond our products. To be more precise, we have defined these six strategic focus areas.
Renata Jungo Brünger, Sabine Kohleisen and Jörg Burzer will now elaborate on them. Renata, the stage is yours.
Thank you, Ola. Every trend eventually provokes a countermovement. After two decades of dynamic growth and enthusiasm in the field of corporate sustainability, we are now experiencing a substantial backlash. Everyone is now wondering, what is the long-term equilibrium we can use as a premise for our strategic planning? Is the race to zero carbon canceled, or is it merely taking a pause before the next rally? In our industry, as Ola pointed out already, we observe mixed signals: different regional dynamics in the adoption of electromobility, diverse customer feedback, and varying policy approaches worldwide. We do not expect this pendulum to lose momentum anytime soon. The bottom line in our internal discussions at Mercedes-Benz is, despite all the noise, the underlying sustainability-related risks have not changed. We will continue to actively manage these risks in the most professional way.
We are convinced that the future of mobility is electric, emission-free, and sustainable in a holistic way. In these turbulent times, we not only rely on our own assessment of shifting priorities and a dynamic risk landscape, but we also engage with critical minds around the globe. In our external advisory board for integrity and sustainability, we continue our engaged discussions on Mercedes-Benz's future path in terms of sustainability. I am proud to welcome two new members to this round: Professor Kai Niebert from the University of Zurich and President of the German League for Nature and Environment, and Professor Hermann Ott from Eberswalde University for Sustainable Development. Additionally, it is important for us to engage with society.
During the last 12 months, we held our Mercedes-Benz Sustainability Dialogues in China, India, New York, and of course, again at our headquarters in Stuttgart and near our battery production site in Dresden. Without a doubt, policies and regulations play a decisive role in sustainable development, also in the automotive industry. We are engaged in trusted dialogue with political leaders around the world, in national capitals and on the EU level, and in many cities and communities where we operate. Lately, we have engaged intensively with the European Commission in the so-called strategic dialogue to bring forward an automotive industrial action plan that includes our position on free trade, a level playing field for all market participants, technological flexibility, and a commitment to market-based decarbonization. Maybe most importantly, we engage intensively with our employees on all questions relevant for the future of the company.
The bottom line is, our industry's sustainable transformation is well underway, and the long-term target picture has not changed. We do, however, expect significant distractions and detours along the way in the coming years. The capital market, and in particular the sustainability community in this call today, seems to share this assessment. Sustainability-related risks and opportunities continue to be taken very seriously, regardless of some of the noises we are currently seeing. How well we tackle these risks, even with the information we provide in various reports, is difficult to assess, but our scores confirm our method is working. In 2024, our MSCI and Sustainalytics scores improved, and we maintained a strong position in ISS and CDP. Notably, our Sustainalytics score has further improved within the low-risk category.
Beyond ratings, Mercedes-Benz has been recognized in leading sustainability rankings, securing first place among OEMs and 11th place in the DAX40 in Handelsblatt's sustainability ranking. Additionally, the WELT benchmarking Allianz, Amnesty International, and Reitan Foundation Norway have ranked us among the top sustainability performers within the industry. Compared to our peers, we remain one of the highest-rated automotive companies across multiple sustainability indicators. Our progress in governance has also been recognized. Mercedes-Benz achieved an overall rank of three and the top position among OEMs in the DVFA Corporate Governance Scorecard 2024. These achievements reflect our unwavering commitment to our sustainability business strategy, driven by continuous progress and the dedication of our entire Mercedes-Benz team. As leading climate scientist, Johann Rockström, member of our advisory board, put it in last year's conference: "Sustainability is not a sideshow.
It is the main show in the struggle for long-term competitiveness of industry players. That's why we long started to integrate sustainability into our corporate strategy. For each strategic pillar, we defined relevant sustainability targets. We also established solid processes to integrate sustainability in our day-to-day decision-making, especially in high-impact areas like in our main product steering board. In the past 12 months since our last event, we sharpened our sustainability business strategy with now six sustainability focus areas encompassing environmental, social, and governance aspects in a holistic way. This was the result of a comprehensive analysis taking into account the perspective of relevant stakeholder groups. For each focus area, the sustainable business strategy has been operationalized for effective implementation by defining specific KPIs, targets, and measures. These KPIs, including short and long-term targets, are anchored in management remuneration.
Targets and measures achievements are closely monitored by our Group Sustainability Committee and the Board of Management. The Supervisory Board is also regularly informed on regulatory and strategic sustainability-related issues. All these measures underline our ongoing commitment to sustainability in a transforming world. The six identified focus areas of our sustainable business strategy will guide us through today's sustainability update. First, decarbonization. One of the most important strategic ambitions of Mercedes-Benz is to lay the foundations for the entire Mercedes-Benz new vehicle fleet to be net carbon neutral across all stages of the value chain and the entire life cycle. Ola already shared some insights into this focus field with you in his speech. Second, resource use and circularity. Jörg Burzer will go into more details shortly what this means with a focus on our production and logistics.
Shortly, I will share some insights into our third and fourth pillars, traffic safety and digital trust, before Sabine will go into more detail on the fifth, people pillar. Finally, I will close with a deep dive on the sixth pillar, human rights. With this, I'm delighted to hand over to Jörg.
Hello everybody. My name is Jörg Burzer, and I'm responsible for Mercedes-Benz operations, production quality, and supply chain management. After Ola and Renata told us about our sustainable business strategy, I would like to give you an update on our progress in the area of decarbonization and use of resources within Mercedes-Benz operations. In 2024, we made good progress delivering on our sustainability plans, which is good not just from an ecological point of view, but also from a business perspective. Let me outline the economic benefits of enhancing sustainability. We increased energy efficiency and thereby reduced our exposure to higher energy prices. We made ourselves more resilient by expanding renewable energy production at our own locations, and we reduced waste and enabled circularity wherever possible.
First, I would like to give you an overview on the production of our new CLA, our first model based on the Mercedes-Modular Architecture. We produce the CLA at our plant in Rastatt, where ICE and BEV models are made on the same line, allowing flexibility in production to follow market demand. Production in Rastatt is net carbon neutral, and the plant is supplied with 100% green energy from onsite photovoltaic systems and external green electric supply. During the integration of the new model into the existing production, many improvements were implemented to reduce energy. For example, a new generation of energy-saving robots used in the body shop, also new resource-saving cleaning technologies for skids, and an artificial intelligence-based control technology in the paint shop. In total, the energy consumption in production was reduced by 15% compared to the predecessor model.
All this leads to a more efficient production in a more sustainable way. Let's take a closer look at decarbonization. We remain committed to our road to zero and our shift towards a CO2-free energy supply of our global production network, and this is well underway. Since 2018, we cut our CO2 emissions at Mercedes-Benz cars production by 75% for Scope 1 and 2, and we are sticking to our goal of cutting CO2 by 80% until 2030 and 100% by 2039. Thanks to 100% green electricity, all our own Mercedes-Benz plants worldwide have been producing net carbon neutral since three years, and we are on track to shift our heat supply from fossil fuel-based energy sources to renewables. For example, we are building a next-generation paint shop in Sindelfingen, which is far more efficient in its energy consumption.
Construction work has just started, and the groundbreaking event is scheduled for next week. We are executing our strategy to expand renewable energy generation in our own plants, a hedge against the rising costs of CO2 and electricity. Let's look at our progress for increasing our share of renewable energy. 50% of our total energy demand at our Mercedes-Benz car production came from renewable sources in 2024. This is set to rise to 70% by 2030 and to 100% by 2039. We are on track to meet our target of up to 140 megawatt-peak solar power until the end of 2025 at our own sites worldwide. Our latest project is in our plant in Hungary, the installation of more than 30 megawatt-peak of solar power, our biggest installation in Europe.
Construction of our wind park in Papenburg with a peak capacity of 120 megawatt with our partner UKA will commence as soon as authorities finalize necessary approvals. Additionally, we will receive 140 megawatt from the Windanker Offshore Wind Park in the Baltic Sea by 2027. Recently, our partner Iberdrola received the approval statement for the construction of the wind park. 50% of our electricity demand in Germany will be covered by just those two projects. Why is that good? Expansion of our green electricity portfolio will lead us to an improved price position for electricity and make us more resilient toward volatile energy prices. To further reduce volatility, we are investing in energy storage, a new RedoxFlow energy storage system with a capacity of around 11 megawatt-hours together with CM Blue, a German clean tech startup at our Rastatt plant.
In addition to expanding renewables, we are executing on our strategy to improve sustainability and costs by becoming more efficient in the way we use energy. In short, we cut energy costs in production by reducing consumption. We plan to reduce it by 25% until 2030 compared to 2024, less than 2 megawatt-hours per vehicle, including powertrain production. In total, we have reduced energy consumption of our plants by more than 300 gigawatt-hours for the second time in a row. Our activities include heat recovery from exhaust and wastewater and more intelligent use of energy through digitalization. This means intelligent measurement and artificial intelligence control. This reduction saved a double-digit million EUR amount. Coming to logistics, as part of our Ambition 2039 for Mercedes-Benz cars, we aim to reduce CO2 emissions by 60% compared to 2021.
Our sustainability strategy focuses on CO2 avoidance and on the reduction of emissions for all modes of transport. To be honest, logistics is challenging. Avoidance of CO2 emissions is focused on localization, optimization of transport routes, or shift truck to train. Reduction is focused on technologies like e-trucks or alternative fuels like sustainable aviation fuel for air transport, biofuel for sea transport, and e-fuel for road transport. To give you just some examples and numbers: in air transport, we achieved savings of more than 50,000 tons CO2. In sea transport, we were able to reduce CO2 emissions by more than 30,000 tons using biofuel. In road transport, we installed a first long-distance transport by e-truck with our partner Galliker, transporting finished cars from Rastatt to Seebrugge on a distance of 600 km. Now, let's have a look at what Mercedes-Benz operations has done to conserve resources and enhance circularity.
Our ambition is to decouple resource consumption from volume growth, relying on an optimized use of resources and circularity. Our objective is to embed circularity into our vehicle's entire lifespan, from design to end of life, and increase the share of secondary raw materials in Mercedes-Benz cars. Further, we are committed to scaling back resource inflows and waste outflows. Let me give you an example for our brand new CLA inflows. During development, great emphasis was placed on using as many secondary materials as possible. As a result, the amount of secondary material in thermoplastics at the overall vehicle level was quadrupled in the CLA compared to its predecessor. Concerning waste outflow, we have a recovery rate of approximately 99%. We enhance our recycling rate by reducing waste for disposal by approximately 38% in 2024.
An example for that is digitalization of the disposal processes by implementing a waste tracker for identification and measurement of our waste. This is saving disposal costs through transparency. In our plants, in our European plants, for example, in Sindelfingen, with only 250 grams waste for disposal, it's the same weight like this apple here, we are very, very close to our Ambition 2039, zero waste for disposal. Let's have a special look at our activities on batteries. One of the most important levers to conserve primary resources is the establishment of a real circular economy. Mercedes-Benz is taking a holistic approach: rethink, reduce, repair, and recycle. Development of high-performance cells, new chemical combinations, and economic manufacturing processes are the activities at our new e-campus in Stuttgart and the starting point of the circular concept of Mercedes-Benz. The company offers remanufactured batteries for all electric vehicles as replacement parts.
In addition, our subsidiary Mercedes-Benz Energy has established a successful business model with stationary large-scale storage applications. Obviously, material recycling is at the end of a battery's life. It is key to close the battery loop. With the opening of our battery recycling plant in Kuppenheim, southern Germany, we made an important step last year. It is first of its kind in Europe and operates in a net carbon neutral manner. With a new combined mechanical hydrometallurgical process, we get a recovery rate of more than 96%. The recovered materials will be fed back into the battery loop. To make it short, we are closing the loop on batteries. If we are talking about the responsible use of resources, water management needs to be taken into consideration too. To make it clear, only 3% of water on our planet is drinking water.
That's why we set ourselves the goal to use no drinking water in production processes by 2039. By 2030, we want to cut our overall water usage by 50% compared to 2023. We focus on saving water by building closed water cycles and using efficient cooling technologies in our plants. Let me give you some details about the implementation of wastewater recycling concepts in our production. In Sindelfingen, we started with our first installation with a technical capacity of 350,000 cubic meters per year. After pilot tests last year, we decided to implement wastewater recycling in Stuttgart with a technical capacity of 500,000 cubic meters per year. We also made a decision to implement a multi-reuse water concept in Bremen. With this project, we achieve overall savings of more than one million cubic meters starting in 2029.
To translate that into money, these are savings of more than EUR 2 million per year. To sum it up, you can see we are fully on track and have made big steps forward. We are in execution mode. Sustainability is not only an ecological topic for us; it's also an economic one. Cutting CO2 emissions by replacing fossil energy with renewable energy makes us resilient toward future CO2 costs, regulations, and taxes. The expansion of our green electricity portfolio will lead us to an improved price position for electricity and makes us more resilient toward volatile energy prices. Furthermore, energy efficiency and investments in renewable energy are important levers to reduce at the end our production costs. We have a clear plan to cut the energy, water, and waste portion in production costs by 25% until 2030.
I hope I could give you a good overview about all the many steps we are taking to improve sustainability in production and to underscore that ecology and economy go hand in hand. Thank you for your attention, and back to Renata.
Thank you, Jörg. Allow me now to continue with traffic safety. Our ambition is to build the safest vehicles in the world. This also includes pushing existing boundaries in passive safety. For example, we were the first manufacturer in the world to publicly subject two BEVs to a frontal impact crash test with outstanding results. We were also the first manufacturer in the world to succeed in X-raying a complete crash test. Also, our active driver assistance systems and automated driving in general make driving safer. When developing such technologies, we pursue a holistic approach, taking ethical and societal aspects into account.
In line with our ambition, we have a clear roadmap for the development and introduction of automated driving systems and are true pioneers in this field. We were the first manufacturer to successfully introduce a Level 3 system in Germany and in the U.S. In Germany, we have already presented the NextDrive pilot version with 95 km per hour, making it the fastest system in the world. Our ambition is to reach 130 km per hour by the end of the decade. Research and development activities also take social and ethical aspects into account. For example, Mercedes-Benz has already developed special turquoise market lights for conditionally automated driving that indicate the operating status of Drive Pilot. The company considers it important to signal to other road users that the conditionally automated driving function is activated.
Furthermore, we are already working on a Level 4 driving system in Beijing, which can also be used in urban settings. We have already received the test approval from the Chinese authorities for this. So far, we have covered the higher levels of automation. However, we know that our established driver assistance systems have a huge positive impact on traffic safety for all road users. Why? Because the systems help to maintain a safe distance, promote a defensive driving style, and improve the efficiency of autonomous emergency braking systems. In addition, we will introduce impressive L2 Plus and L2 Plus Plus systems with our CLA, offering greater driving comfort to our customers. Our goal is to make our cars and traffic safer for everybody. All our development efforts bolster our position as a true pioneer in active and passive safety technologies. Now, turning to digital trust.
Artificial intelligence is certainly one of the most promising technologies of our time, and investments to keep up in the global race are impressive. A few weeks back, the AI Action Summit took place in Paris with Mercedes-Benz participating. There was a great enthusiasm about the vast opportunities of AI. At the same time, the regulatory environment is dynamic with geopolitical complexities. On the other hand, governments introduce new AI regulations to address risks and to claim to enhance AI competitiveness and trust in the technology, while companies call for reduced administrative burdens. These contrasting positions create challenging circumstances for Mercedes-Benz. However, we need to ensure compliance with relevant legal requirements in an adaptive and opportunity-oriented governance approach. Trust is therefore a necessary condition for sustainable and competitive business success.
The umbrella of digital trust encompasses four strategic focus areas: the responsible handling of data and AI, cybersecurity, and digital literacy. Last year, we engaged with committee representatives and experts who acknowledged the significance of trust in global digital transformation, and our digital trust concept was positively recognized as essential. What are the next stages on this journey? We declared digital literacy as one of the strategic focus topics in 2025. Allow me to explain why. Building digital trust requires a well-balanced digital mindset that weighs the opportunities of new technologies against potential risks. For our employees, a digital mindset is fundamental for leveraging innovation and developing it with a strong sense of responsibility. We are not starting from scratch but continue our activities in digital literacy.
For example, in the course of our Gen AI journey over the past months, tens of thousands of colleagues worldwide at Mercedes-Benz have explored generative AI, enhancing their digital competence in the responsible handling of AI, identifying AI applications in daily work, and discussing potential AI risks. Another example of our efforts is the digital transformation of our production network through AI integration. Our AI-driven virtual assistants and digital factory chatbot ecosystem allow easy real-time data analysis and effective problem-solving. This greatly improves production efficiency and quality. I t is crucial to ensure employees are well-educated about the AI's functionalities, its chances, and boundaries. This enables the responsible use of smart technologies and fosters the development of a digital mindset. For our customers, a digital mindset serves as a compass guiding them towards a positive experience with our products. Let me illustrate one example.
Our data protection landing page is currently being completely revised. The redesigned website will provide transparency to customers on data usage as well as privacy at Mercedes-Benz, including detailed instructions on setting options accompanied by answers to frequently asked questions. This example underlines the importance of a positive cycle of trust in technology. By fostering an understanding of the technology, customers gain confidence in using new digital features and services.
In turn, this acts as a catalyst for a positive cycle of trust, as increased trust leads to increased usage, resulting in improved digital products and services. As we look ahead at the digital trust journey, I'm confident that each of us can cultivate a digital mindset and inspire others to follow. This strong foundation will enable us to address the digital transformation challenges currently and in the future. As I outlined before, our employees are playing an essential role to drive the transformation. Therefore, I'm delighted to hand over to Sabine Kohleisen and Christina Schenk, who talk about our people pillar.
Thank you, Renata, and a very warm welcome from my side as well. My name is Christina Schenk, and I'm heading Investor Relations and Treasury at Mercedes-Benz. Ola already mentioned it. To remain successful in the future, we have to continuously work on our competitiveness and our resilience. That's why we carefully prioritize our funding and intensify our efforts to reduce cost. One element of that is personnel cost. I would like to explore this further with Sabine Kohleisen, member of the Board of Management for Mercedes-Benz Group AG and responsible for human relations. Welcome, Sabine.
Thank you, Christina.
Sabine, we've read a lot this month about intensifying our efforts and increasing efficiency with an extensive set of personnel measures and also flexibility to that extent. Can you please comment on your HR strategy and what decisions have been taken in that regard?
Thank you, Christina, and a warm welcome also from my side. We derived our HR work from a sustainable business strategy, and the core of our HR work are our three pillars: reshape, reskill, and recharge. Those three pillars which I elaborated on in former sustainability dialogues before, and it would not be a sustainable strategy if we would skip those three pillars now. We continued to work on them. The basis of our HR work is to drive transformation, future-oriented, very responsible social responsibility to make the just transition happen for our company.
Coming back to your question, Christina, now we look at the pillar reshape, and in those times, reshape is a lot of providing instruments, providing measures that the company is getting leaner, faster, and we also have a look into our personnel costs. We did not do that only for Germany, but as we have a significant footprint in Germany, we went into intense negotiations with our workers' council, and the goal was to make us weatherproof, to make us more resilient, and to really also save costs. We tried to achieve a very balanced approach in those negotiations: contributions from the company, contributions from the employees, but also from the management. Let me start with the contributions from the employees in the tariff area. First of all, we are only passing on half of the agreed wage increases.
This means that the salaries will rise, but more moderately than originally planned and originally negotiated. Secondly, from 2025- 2027, the yearly additional tariff allowances, which are called Teezug in the German terminal, will be converted into additional leave days for all employees. This Teezug is a yearly tariff allowance where employees can choose between additional leave days or additional payments. This will also save us resources. Thirdly, for the fiscal year 2026, we've deliberately decided not to make any profit-sharing agreements for the employees for now. To be more flexible, we negotiated higher quotas for flexible work, and we will increase also our outsourcing activities also in indirect areas and functional areas. Last but not least, we will start a voluntary severance program specifically targeted for the administrative areas.
These steps are necessary for us to become more efficient and more flexible, but also management will contribute to these efficiencies. First of all, there will be no salary increase for management in this year. Secondly, we already have but will continue to cut disproportionately the number of management positions to become a leaner company with better decision-making processes. W e will most likely see a relevant decrease in our variable pay components in 2025 based on our very performance-oriented management compensation regime. All of these measures are part of a larger efficiency program across all different areas, which is called NLP ( Next Level Performance) and that focuses on various areas, also on cost, but not only on cost, and also on personal cost, and not only on personal cost. This will contribute to making the company more efficient.
Thank you, Sabine. You mentioned that you're managing the reorganization in a fair and responsible manner. Could you please elaborate on that?
Yes. I also said that we were trying to have a very balanced approach and that there should also be something from the company for the employees to bring in their contributions. At the beginning, it was very clear that this has to be done in a social responsible way to also have the engagement of the employees in this process. After the negotiation, the company was able, because the things brought to the table from the employees are really significant, we were able to extend our job security until the year 2034, which seems to be a long time.
We were confident that with the engagement of our employees and the belief in the team and in Mercedes-Benz, we are really able to make this a successful future. Nevertheless, it's only one measure, and it requires hard day-to-day work to really overcome all the challenges that appear at the horizon and continue to do so. It's an expression of our confidence in the team's strength. Mercedes-Benz has in its DNA to always find solutions with the workers' council, with the employees in difficult situations. We are convinced that the extension of the job security is such a symbol.
Thank you. Another question from my side. With a clear focus on cost efficiency, Sabine, how do you balance the cost-saving measures with the goal of remaining an attractive employer?
Not only do we talk about cost, but we keep on investing in our employees and in our talents. You might remember that we have started in 2022 our initiative Turn to Learn, where we will invest from 2022- 2030 a lot of money, more than EUR 2 billion. If we look back to 2024, we already had 2.5 million learning hours worldwide. This initiative in terms of really enhancing the learning culture is for us very important and also part of our overall HR strategy. We believe learning and qualification is not only important, but the key to success in this transformation. From these Turn to Learn initiatives, we have derived different other measures. If you look at the development of future skills, we provide curated learning paths for those functions who have very future-oriented skill needs.
We also have, and Renata was talking about that, initiated a great initiative last year to provide learning journeys regarding digitalization, specifically for the leaders, but also for all employees. Nevertheless, there are also specific profiles, our digital pioneers, which I've talked also in the past about, where we really try to not only find curated learning paths, but reskill and upskill specific employee groups into new jobs, into new job profiles. We will continue to do so.
A key factor for being an attractive employer, Sabine, is the working environment. What are the steps we are taking as a company to create these conditions?
It's very important to have a modern, an inclusive, and innovative environment. This is basically our third pillar, the pillar recharge. What do we do? We are investing in technologies, but also in infrastructure to make work more efficient and more enjoyable. We introduce agile collaboration models, specifically in development and in the software environment. We have also flexible working models and also modern office and production environments. T hat is the foundation to really be successful and to also foster strong collaboration.
This year, we will also have our employee survey, which is going to focus on employee satisfaction, but also on employee engagement, and where we derive on a regular manner measures, activities, and initiatives to really foster and enhance the engagement of our employees. Nevertheless, as part of our transformation, we are also streamlining administrative processes because we are convinced we have to really become faster.
As I mentioned, NLP and NLP as an overall program to really enhance the competitiveness of the company, there is also one pillar which is called winning attitude. In this pillar, we are really looking into the way we work together, our collaboration models, our performance mindset, cultural things of really increasing the speed of decision-making, but also mindset questions in terms of how does this company become even better. This is an integral part of the NLP initiative as well, and it's also contributing to recharge.
Thank you so much, Sabine. Thank you for your valuable insights. I would be handing back to Renata for the last presentation for today before we start our Q&A session. Thank you.
Thank you, Christina. Next, I'd like to provide you with a short update on the progress that we made regarding our supply chain due diligence. Last year, I used the picture of a winding route of regulations to show how crucial the right processes, methods, and projects were for navigating the dynamic regulatory landscape. Since then, the situation hasn't become easier. On the contrary, on our winding road, there are now storms brewing on the horizon. We find ourselves in a world where the political climate has intensified, new economic challenges are arising, and various legal uncertainties need to be handled.
This has significant impacts on our company, which in the worst case could potentially lead to supply chain disruptions. By proactively identifying and addressing different kinds of risks in our value chain, we avoid possible hazards and support the protection of our company. This also applies to human rights risks. At Mercedes-Benz, regulations were not the motivating factor for us to start protecting human rights.
Therefore, we will also not stop considering human rights in times of political and judicial uncertainties. Protecting human rights is and remains a cornerstone of our sustainable business strategy. This means staying committed, especially when Mercedes-Benz and the whole industry faces significant headwinds. Additionally, our efforts are recognized externally. Last year, we again received positive external recognition from different rankings and benchmarks such as Leader Chart or Amnesty International. These good results and leading positions reinforce that we are on the right track and motivate us to continue our efforts and ambitions to remain a front runner in the industry. A Mercedes must be produced under high ethical and environmental standards. That includes the responsible sourcing of the materials and services we use as we move towards an all-electric future. As said before, the work is about more than just ethics and responsibility.
It's also about building a resilient supply chain to prevent harm from our company. As a global company with complex and far-reaching supply chains, we are aware of the challenges and risks associated with sourcing raw materials. Our procurement department identified 24 critical raw materials associated with high human rights and environmental risks, including aluminium, cobalt, and lithium, and we are committed to fully analyzing these risks. By 2028, we intend to define appropriate measures for 100% of our raw materials that pose an increased risk for human rights violations. We again made significant progress last year, and we 65% overachieved our assessment target of 60%. This step-by-step approach ensures that we identify the most critical areas, make our supply chains more transparent, conduct audits, implement mitigation measures where necessary, and effectively monitor our actions. In November last year, we documented this effort in our 2024 Mercedes-Benz Raw Material Report.
We also continue to make the progress of our raw material assessments a part of our executive remuneration. This, again, underlines how serious we take this issue. By creating transparency, identifying risks early, and taking proactive measures, we are fully committed to respecting human rights. We also bolster our supply chains and our business operations, especially in an increasingly volatile geopolitical environment. Since we truly believe that adequate due diligence thrives on collaboration, we engage with rights holders, NGOs, and other stakeholders to challenge and bolster our approaches and continuously improve. This open dialogue ensures that we remain both ambitious and grounded in reality. Let me give you a concrete example. Aluminium is used, among others, for our wheels and batteries and is increasingly gaining importance. By reducing the overall vehicle weight, it can make a significant contribution to improving fuel efficiency and decreasing carbon emissions.
Yet, this raw material is associated with certain human rights risks, including working conditions, the rights of communities and indigenous peoples, but also environmental risks. To address these risks, we have taken several actions. Last year, we expanded our strategic partnership with our aluminium supplier, Hydro. We jointly initiated a program together with three Brazilian civil society organizations aimed at improving the livelihoods and living conditions in a poverty-driven region of the Brazilian Amazon. The main goal of the Corridor Program is to assume a joint responsibility to leave a positive legacy of the industrial presence in the Para region. This includes empowering local communities at the beginning of the supply chain to achieve better economic, environmental, and social outcomes and to ensure their participation in decision-making processes. By investing in sustainable infrastructure and social initiatives, we reduce the risk of human rights violations before they arise.
Now, let's turn to what happens when the risks materialize. We have an assessment process that allows us to act swiftly. At Mercedes-Benz, we follow the principle of empowerment before withdrawal, aligning with the recommendations of NGOs because we believe that improving the status quo has more impact than taking the easiest route of withdrawing from certain regions and countries. Also, at the individual supplier level, we strive to collaborate with them to address findings instead of quickly excluding suppliers when issues arise. While the exclusion of supply chain participants is always the last resort, it remains a final measure when our due diligence requirements are not met. This has been the case in the aluminium sector, where we have excluded supply chain actors that are not fulfilling our high standards. This demonstrates not only the strength of our approach, but also how seriously we take our responsibility.
It helps our company to prepare for and align with various regulatory requirements and meets our own internal ethical standards as described in our principles on social responsibility and human rights, which will be updated soon. The Corridor Program is just one example that shows how collaboration with external partners can truly give rise to promising initiatives and help us to tackle risks in various settings. We are aware that a single company cannot solve all issues on its own. That is why Mercedes-Benz collaborates with various partners to promote sector-wide solutions. This is especially important since human rights are such a broad, complex topic with many risks also beyond mining and extractions. Besides production material, we also see risks in the procurement of non-production material.
For example, the service sector is often associated with human rights risks, including poor working conditions such as long working hours and delayed or unpaid wages. Also, the logistics sector is an important part of our value chain. There is no doubt for us that every person who directly or indirectly contributes to bring our vehicles to the market should do so under conditions that respect human rights. Here, close collaboration with partners is key. That is why we joined the newly convened Roundtable of Road Transport Logistics, which was initiated by the German Federal Ministry of Labor and Social Affairs and the GIZ. The initiative emerged in response to the trucker protests in Germany in 2023, where truck drivers were protesting against poor working conditions and unpaid wages.
This multi-stakeholder initiative aims to achieve a common understanding of the risk situation and conditions of the road transport logistics in Germany, as well as the identification of suitable prevention and remediation measures. I am sure that this project will help to further improve measures and processes in road transport logistics for the protection of human rights. Lastly, I would also like to provide you an update concerning our engagement to establish a cross-sectoral grievance mechanism in Mexico. Since the launch, a lot of work has been done together with other companies and in close collaboration with civil societies. Coordination units have been established, IT infrastructure is in place, and channels are open for submitting complaints. Several complaints have already been submitted and processed, which proves its effectiveness.
The inauguration of the Sector-Wide Grievance Mechanism, MRDH, demonstrates what is possible when companies join forces and involve civil society organizations from the very beginning. However, the future success of the project requires additional partners, which is why we strongly encourage additional companies to participate. The example shows how diverse the risks are that we encounter in our highly complex supply chains. At the same time, they illustrate how equally diverse the measures are to effectively mitigate risks. By proactively identifying and tackling risks in our value chain, we continuously improve the situation for people working directly and indirectly for our company. Further, this contributes to the resilience of our supply chains. We create real impact by setting high standards, engaging in meaningful partnerships, and taking responsibilities for the workers in our value chain.
We actively engage on the ground and increase the effectiveness of mining standards by holding several board seats in raw material initiatives, such as in the Initiative for Responsible Mining Assurance. The promotion of sustainable and robust supply chains remains key for our business continuity, the protection of our brand, as well as the identification of new opportunities, also and especially in challenging times. Thank you, and back to you, Christina, for the Q&A session.
Welcome to the Mercedes-Benz Group Sustainability Update Conference Call. At our customers' request, this call will be recorded. The replay of the call will also be available as an on-demand audio webcast in the Investor Relations section of the Mercedes-Benz website. If you have difficulties during this call, please press 0 and the hash key on your telephone keypad for operator assistance.
If you want to ask a question after the presentation, please press 9 and the star key on your telephone keypad, and you will receive a confirmation that you are now in the queue. To withdraw your question, please press 3 and the star key on your telephone keypad, and you will hear a confirmation that your question got removed from the queue. I would like to remind you that this telephone conference is governed by the Safe Harbor wording that you will find in our published results documents.
Please note that our presentations contain forward-looking statements that reflect management's current views with respect to future events. Such statements are subject to many risks and uncertainties. If the assumptions underlying any of those statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. Forward-looking statements speak only to the date on which they are made. May I now hand over to Christina Schenck, Head of Mercedes-Benz Investor Relations and Treasury?
Thank you very much, and welcome to our Q&A session. I'm happy to welcome back our three board members here today: Renata Jungo Brünger, responsible for integrity, governance, and sustainability; Jörg Burzer, responsible for production, quality, and supply chain management; and Sabine Kohleisen, responsible for human relations and labor director.
Welcome back. We would like to ask you to focus your questions on our sustainable business strategy and the presented matters. I totally understand there's a lot of other interesting topics at the moment. For that, please reach out to the Investor Relations team, and we're happy to help you out. As a matter of fairness, please limit the questions to a maximum of two, and I will hand back to the operator to explain the procedure.
If you want to ask a question, please press 9 and the star key on your telephone keypad. To withdraw your question, please press 3 and the star key on your telephone keypad. If you have difficulties raising a question, please press 0 and the hash key on your telephone keypad for operator assistance.
Thank you very much, and I have a long list of questions here, and I would start with Hannah Häuser from Federated Hermes Limited. Hannah, over to you.
Thank you very much for the presentation. I have two questions. The first one is: How does the board assess the company's management of transition risk associated with launching a number of new ICE models in the next three years? Maybe you can discuss how the path dependencies and potentially mislearning by doing opportunities are considered when deciding to continue the development of more and more new ICE vehicles. The second question is that you mentioned some details on the Automotive Industrial Action Plan discussions Mercedes is having with the European Commission. Could you please elaborate on the discussions the company is having with European and other policymakers in terms of the support that's needed to improve the attractiveness of EVs and plug-in hybrids? Thank you.
Thank you very much. I would start with the first question, maybe to you, Jörg, and then we hand over to you.
All right. Thank you for the question, Hannah. It is very important that we understand that at the end, the customer decides what he or she wants to buy. That is why it is as important to have ICE models and both BEV models. The core topic and the key topic is to be flexible on the one hand in production, as I laid out with one slide where we showed the REMBUB of the CLA. We were fully flexible on the line, and if the customer requirements are increasing to 100% BEV, we can do that.
What is also important is that we are massively investing in our BEV models, the CLA. The first powertrain in the CLA in the REMBUB will be a BEV. All I laid out in this presentation, the very, very competitive technical features, more than 790 km range, more than 320 km charging ability within 10 minutes. It is very, very important for us that we are really focusing also our development R&D resources, but also our production planning strategy on really making the transition successful to BEVs. At the end, the customer decides.
Thank you. For the second question, do you want to jump in?
Yes, sure. I t is clear. I want to underline that we have a clear ambition and that we have not changed our ambition to make our mobility carbon neutral. However, we need also to make a reality check. If you see that when the preconditions are not synchronized with what happens in the outside in the world, we have to do, a discussion between politics and industries. T hat is very important.
We started to collaborate with the European Commission, who started, this very important strategic initiative, a dialogue with the automotive industry to develop an action plan. We had the first meeting during the last months, and you have heard about the results. There are some changes of the regulations probably coming out. For example, the achievement of the fleet targets can be spread over the three years. We welcome this initiative, but there is more to discuss. We need also to see that the conditions framework outside is changing. We need to improve the charging infrastructure, for example, and all that needs to come together. What we have observed in the last years is that probably there were not enough collaboration between politics and industries and also society and also the scientifics. We need really to work on that. I'm looking forward.
There is an ongoing discussion between the European Commission. In July, we will have the next meeting and the next results. T hat's the right way to go. Anyway, it's the first right step into the right direction. We will really intensively engage and be active and bring our part to that discussion.
Thank you, Renata and Jörg. I would move on to the next question from Jakob Herle, Union Investment.
Thank you. I have one question. Mr. Källenius has taken a nuanced stance on the proposed EU ban on combustion engines. In his statements, he emphasized that the automotive industry should be flexible, and you just re-emphasized that in the answer to the previous question. This raises a question to me about how Mercedes's lobbying effort aligns with its own climate strategy. Could you explain how Mercedes plans to enhance the clarity and consistency of its lobbying efforts and political statements to support the credibility of its climate goals linked to the Ambition 2039?
Thank you. Jakob, Renata, would you like to answer?
Yeah, I can probably start. I can just repeat what I have said. We are committed to our sustainable business strategy. We are looking to invest into electromobility in order to become carbon neutral. We know also, and politics know that also, that electromobility has to prevail if we want to achieve these goals. As I said before, we need to make also a reality check because the frameworks are not there. We are working on that. I can just remember that Mercedes-Benz has invested a double-digit billion amount already into the electromobility to make his mobility carbon neutral.
We will continue to do that. Jörg has just mentioned it. We have a huge offensive of electric models in the future. We started this year with the CLA. In 2026, plus is more to come. W e are fulfilling our task, and it is our task to bring attractive products on the market. W e do that and n ow we need to collaborate with the politics to make a reality check. Probably, you know, we have to agree on that it goes slower than we thought some years ago. We are still committed very clearly with our Ambition 2039.
Thank you very much. I would move to the next question from Wahla Maetz, Morgan Stanley. Wahla, over to you.
Hi, this is Marta Saar from Morgan Stanley Investment Management. Thank you very much for your comprehensive presentation today. I have two questions, please. With regards to your Scope 1 and 2 emissions, so they already are at minus 75% from the baseline. What constrains you from bringing those 80% and 100% targets forward and achieving it earlier than you currently plan? Are there any reasons why you couldn't do it earlier than currently planning? Second one, with regards to Reshape program, we seem to remember that Mercedes had a plan to reduce workforce by about 10% over the next 10 years. Could you just update us if that's still the case, or maybe the path forward is different given you spoke about a voluntary redundancy program during this presentation? Thank you.
Okay, first question, Jörg, to you.
Yeah, obviously for me. Thank you for the question. It's always if you work on efficiencies at the beginning, it's a little bit more easy. I would say at the end, it gets harder. That's the same with emissions. What we are doing basically right now is to really invest heavily in trying to optimize the last percentages. This takes a little bit longer. I'll give you just an example. What we have to do, for example, in our production setup, we have to modernize our paint shops.
As I laid out, we are just one week ahead of the groundbreaking of our new paint shop in Sindelfingen, which will be basically fossil-free, 100% green electricity, and an extremely high amount of efficiency potential and energy efficiency potential in this paint shop. It takes a little bit of time to build it up. Two, three years normally until you have that in operations. That's what we are seeing right now. The first portion of efficiency measures were very easy, and we were able to speed up. Now it's becoming harder, I would say. The target is the same.
Thank you. For Reshape, can I hand over to you, Sabine?
Yes, Christina. What I was talking about in the voluntary redundancy program is specifically targeted in the indirect areas. What is our aim here? We really try to improve our target operating models, really get slimmer, use AI, use technology, use digitalization. This goes hand in hand with the voluntary redundancy program. This is the indirect area. Therefore, we don't have any headcount numbers. We are looking into financials, and we are looking into better processes. This is the overall theme there. On the operational side, we are heavily dependent on our market developments.
Therefore, currently, there is no redundancy program in shape besides some smaller units where we really try to balance our strategic workforce management also in the operational area. In both cases, this is based on double voluntariness to make sure that we do not lose our talents and to make sure that we do not lose the people that have know-how and that we want to keep. Maybe to add that overall, we do not look into headcount numbers or numbers. We only look into the financial consequences in the end.
Thank you to both of you. Moving on to Xining Zeng from OFI Invest. Xining, over to you.
Thank you for this insightful presentation. I have two questions. The first one is, will Mercedes consider providing next year the battery electric vehicle average consumption, as you already provide the CO2 emissions of the new vehicle fleet, because it will allow stakeholders to have a global view of Mercedes' BEV average efficiency? The second question regards HR controversy in the U.S.A last year with the UAW filing charge to the National Labor Relations Board for union-busting activities. According to Mercedes' principle of social responsibility and human rights, it states that in the event of organization campaigns, the company and its executives should remain neutral. Why was it not the case in Alabama? Thank you.
Okay, I would hand the first question to you, Renata.
W ith regard to battery electric vehicles consumption, we will work on that because we have a high technology. You have probably seen what the CLA can already do. We will develop that during the next years and invest more and more towards the high technology. T hat's also our game, our aim to go into that direction too. With regard to further development, batteries, the technology will develop massively during the next years. We are looking into new technology development anyway. There also should be a better average of efficiency. I don't know, Jörg, whether you want to add from a technical point of view.
Yeah, we have all our cars in the fleet certified according to WLTP. Basically, based on the production numbers and the sales numbers, you can basically easily calculate what's going on there. Basically, the information would be then available.
Good. Sabine?
Maybe with regard to the second question. We still are really convinced that we stick to the neutrality also in the case of the UAW issue in Alabama. What we did do, we wanted to enable our employees to make informed decisions and to provide all the information that is needed if you decide for or against the UAW. This process at the NLRB is still ongoing. We are quite optimistic that what has been brought up by the UAW will be resolved in our sense. Maybe I can add one other thing because we also had the UAW activities in our retail store in Manhattan. There, our employees decided to have the union inside the business. Now we are currently negotiating with the UAW of how to bring that to life. You see, it's up to our employees to decide that. We see our responsibility in trying to enable them to make informed decisions.
Thank you. I'm moving on to Steven Reitman from Bernstein. Great to have you, Steven.
Thank you very much . My question is a broader one. Obviously, with the focus on ESG, companies have been distancing themselves from military defense-related spending and the like. Obviously, with the situation changed in Europe and in a lot around the rest of the world after the change in presidency in the United States, what is Mercedes' attitude towards potentially the country's requirements for armament or increased defense spending? Can Mercedes participate in this while sticking true to the ESG principles? Thank you.
It's a broader question. Renata, maybe you want to start.
You know, it is clear Mercedes-Benz is producing civilian cars. We are working for the defense industry. We are, for example, delivering T-Class to the German Bundeswehr. Just the cars. We have certain special equipment which we are delivering. We do that already. That is already a business which exists. Now, we will have to look into that towards attitude, whether there are countries' requirements also for our industry. For the time being, it is clear we are producing civilian cars. We will like to adapt to the situation and to discuss that also from a strategic point of view in connection also with ESG requirements. That is clear. W e need to be also very open that the situation changes for the time being. As everywhere, we need also to make a reality check and keep it open for the time being and to develop also their clear strategy in that regard.
Thank you, Renata. Thanks, Steven. I'm moving on to Justin Kew from Balyasny Asset Management.
Hi, thank you so much for the great presentation. I have two questions as well. The first one is, with the volatility from a geopolitical standpoint and different customer demand, how are you trying to navigate this from a global standpoint? Is the CLA the right product to deal with all this disparity and local differences? That is my first question. The second one is more to do on the software side. Again, very excited to hear about your software side. As we have seen, China actually is quite leading the pack when it comes to software developments for the EV space. How is Mercedes actually working on to actually continue to be market leader in the software space and to drive the overall customer experience? Thank you.
Thank you, Jörg.
Yeah, Justin, thanks for the question. In this geopolitical framework we're working on, as I said before, the most important topic is to be flexible from a production standpoint, but also from a product standpoint. From a product standpoint, it's even more important that we have competitive products. That's what we clearly see with the CLA. I just want to reiterate again in terms of EV characteristics and properties, more than 790 kilometers range, WLTP, obviously, and extremely high charging speed and low charging time. It is a very, very attractive product. We obviously are convinced that this is not only competitive in Germany or Europe, it's also competitive in China. It's competitive in the U.S. as well. We are very, very much looking forward to the ramp-up and to bringing this great product.
As Renata said, more and more products into the markets, into the global markets. To your second question, yes, China is a very competitive environment, especially on the software side. What we will bring on the market with MBOS and obviously also with others is, from our point of view, and we are convinced also from a customer's point of view, also in China, very, very competitive. You might know that we are also launching the CLA in China pretty soon. We are really looking forward to the success of this car.
We are a global company. We are used to manage different markets. There is always also trade law to respect, in particular with certain technologies. Software is one of these technologies. Naturally, we are working to build up resilient supply chains also in that regard so that we can be prepared to deliver in all global markets.
Thank you. We have time for one last question that goes to Joel Horrocks Taylor from Columbia Threadneedle Investments. Joel, over to you.
Perfect. Thank you very much for the series of presentations. This event is always really informative. I have two final questions. First, on the EU Automotive Action Plan, what is Mercedes' reaction to the commercial fleet decarbonization efforts hinted at in the plan, given the significant portion of Mercedes' sales that go to corporate fleets? Then second, just on Jörg's update on the Copenhagen battery recycling facility, what is Mercedes' long-term thinking on battery recycling? Is this an area which you're going to build out further into? Will the recycled minerals go directly back into Mercedes' supply chain or be sold to third parties? Thank you.
You would like to start? Yes, as I said before, we are really appreciating the efforts of the EU Commission in all directions to discuss the different points. Naturally, we are looking also into the corporate fleets. As I said, we continue to, with our efforts, decarbonize our mobility. We are also discussing with the EU. We are really, on the right path to that, to collaborate together. We are looking to the proposals there in a positive way. We appreciate that.
Yes, in terms of, Joel, in terms of battery recycling, obviously a very, very fascinating project, also personally for me, because for us, it's a little bit the mine for tomorrow and from a strategy standpoint and from a technology standpoint, extremely important and exciting. In terms of long-term thinking, obviously, this is not a pilot plant. It's really a serious plant, but it's a small serious plant. We want to prove, and that's what we're doing in the moment, that this is also a serious process which we can basically apply in serious production. This is on the way. It's very positive. Based on what we will learn in the next probably 6-10 months, will basically be the foundation for our decision on how we expand this business. Do we do that on our own? Do we do that with partners?
That's what we will think about very, very hard. Right now, as you probably also, yeah, as you said, we are really focusing on Mercedes' internal supply chain. W e're using Mercedes batteries for recycling. We use the material to bring it back into either battery factories of our partners or battery factories where we are in a partnership with others. T hat's the focus right now.
Thank you very much, ladies and gentlemen. Thank you very much for your valuable questions and for being with us today. Thank you very much to our board members for your presentations and for answering all of the questions. After the event, of course, there might be some additional questions you might have. The investor relations team, as always, is happy to take your questions. With that, I would like to hand back to you, Renata, for the closing.
Thank you, Christina. Our fourth sustainability update draws to an end. Earlier today, my colleagues here in the room and I described the importance of maintaining focus in uncertain times. I hope that today's event convinced you of our steadfast commitment to sustainability in its entire range, demonstrating determination, flexibility, and a long-term perseverance. Despite significant challenges, we remain firmly committed to our sustainable business strategy. This commitment isn't solely out of necessity, but stems from a genuine conviction. Speaking on behalf of the entire Board of Management of Mercedes-Benz, I thank you for participating in today's sustainability update. Take care and goodbye.