Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Responsibility
• Financial Integrity

Social Achievements

• Commitment to vocational training and continuing education; roughly Û500 million invested, 40% in vocational training, 60% in continuing education; 12,000 young people enrolled in apprenticeship and work-study programs.
• Siemens Leadership Framework introduced to evaluate managerial achievement in four areas: financial results, employee motivation, customer satisfaction, and process quality; 5,000 managers participated.

Governance Achievements

• Implementation of the highest standards of corporate governance; careful consideration of recommendations from the German Corporate Governance Code, U.S. and European regulations; detailed description of corporate governance system in the report.

Climate Goals & Targets

Environmental Challenges

• Difficult and unstable macroeconomic environment; structural crises in key sectors; dramatic declines in demand in the carrier segment of the Information and Communications business; paradigm shift in the telecom industry; reduced investment budgets from telecom operators; difficulties in the Industrial Solutions and Services Group due to economic downturn and structural problems; weaknesses in the IT market affecting Siemens Dematic.

Mitigation Strategies

• Extensive and robust business portfolio; unwavering focus on innovation management; global network of innovation; management systems to optimize business excellence; anticipation of normalization in the power plant sector; early-warning systems and flexible production structures in automation and drives and lighting businesses; steps to provide Industrial Solutions and Services with a solid basis for future success; transformation from technology provider to business problem solver; adjustment of operations in Information and Communications; Operation 2003 initiative focusing on restoring profitability, integration of acquisitions, increasing U.S. profitability, asset management, and cost reduction; portfolio adjustments where necessary.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy efficiency
• Sustainable urban development
• Healthcare
• Globalization
• Supply chain sustainability
• Compliance
• Employee well-being
• Responsible value creation

Environmental Achievements

• Customers reduced CO2 emissions by 210 million tons through Siemens' ecofriendly products and solutions.
• Siemens factory in Gebze, Turkey, consumed 25% less energy and 50% less water than its predecessor.
• Hospital in Bremerhaven, Germany, reduced energy consumption by more than 25% and CO2 emissions by 4,130 tons annually.
• Oslo metro vehicles consumed 30% less energy than conventional rail cars.
• Europe's largest wind farm (Whitelee, Scotland) installed with Siemens turbines, reducing CO2 emissions by up to eight million tons annually.

Social Achievements

• Launched Diversity Initiative to foster a diverse workforce.
• Improved healthcare quality and affordability through innovative technologies.
• Implemented occupational safety and health management programs.
• Continued commitment to social responsibility in the communities where Siemens operates.

Governance Achievements

• Established a comprehensive compliance program and processes.
• Settled lawsuits related to bribery allegations.
• Improved compliance structures and processes, becoming a benchmark for other companies.
• Achieved top rating in the Dow Jones Sustainability Index for Codes of Conduct/Compliance and Risk & Crisis Management.

Climate Goals & Targets

Environmental Challenges

• Global financial and economic crisis impacting demand for products and services.
• Climate change and the need to reduce greenhouse gas emissions.
• Growing demand for energy and dwindling natural resources.
• Need for sustainable urban development and efficient infrastructures.
• Globalization and international competition.
• Supply chain disruptions.

Mitigation Strategies

• Implemented cost-cutting measures and restructured the company.
• Developed and expanded the Environmental Portfolio of green technologies.
• Increased investments in research and development, particularly in green technologies.
• Focused on innovation- and technology-driven growth markets.
• Expanded local presence to serve customers more effectively.
• Improved supply chain management through central procurement, global value sourcing, and supplier reduction.

Supply Chain Management

Responsible Procurement

• Expected suppliers to respect human and employee rights and comply with environmental requirements, occupational health and safety standards, and anti-corruption regulations.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: UN Global Compact, Greenhouse Gas Protocol Initiative

Certifications: LEED Gold Green Building certification (Gebze factory)

Third-party Assurance: PricewaterhouseCoopers (PwC)

Sustainable Products & Innovation

• Environmental Portfolio of green technologies
• Energy-efficient combined-cycle power plants
• Energy-saving lamps
• Intelligent building management systems
• Renewable energy systems and components
• Environmental technologies for water management and air pollution control

Awards & Recognition

• No. 1 position in the Diversified Industrials sector of the Dow Jones Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance & Compliance
• Resource Conservation
• Human Rights
• Supply Chain Management

Environmental Achievements

• Reduced CO2 emissions by approximately 33 percent since fiscal 2014 (from 2.2 million tons to 1.5 million tons in fiscal 2018).
• Enabled customers to reduce their CO2 emissions by 609 million metric tons in fiscal 2018.
• 80% of electricity consumption at German sites covered by renewables.
• 35 percent reduction in greenhouse gas emissions at Melbourne Museum through energy efficiency improvements.

Social Achievements

• Invested more than €500 million annually in training and education for employees.
• Granted software licenses for PLM software to more than 3,000 educational institutions in over 70 countries.
• Launched the “Charter of Trust” in cooperation with the Munich Security Conference.
• One of the world’s largest private training companies, with approximately 11,000 young people enrolled in training programs.

Governance Achievements

• Implemented a robust Compliance System based on prevention, detection, and response.
• Launched the Siemens Integrity Initiative, committing over US$ 70 million to 55 projects combating corruption.
• Rated the most sustainable company in its industry by RobecoSam/Dow Jones and listed in the DJSI World Index for the 19th consecutive time.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions across the entire value chain (supply chain, own operations, customer products/services).
• Managing compliance risks in a complex global business environment.
• Ensuring respect for human rights across diverse global operations and supply chains.

Mitigation Strategies

• Global CO2-Neutral Program aiming for carbon neutrality by 2030.
• Drive Energy Efficiency Program investing €100 million to improve energy efficiency at Siemens sites.
• Robust Compliance System with prevention, detection, and response mechanisms.
• Siemens Integrity Initiative to combat corruption.
• Risk-based approach to supply chain management with supplier audits and codes of conduct.
• Human rights framework with due diligence processes and grievance mechanisms.

Supply Chain Management

Supplier Audits: 3,688 Corporate Responsibility Self-Assessments (CRSA) and 765 supplier quality audits with integrated sustainability questions in 2018.

Responsible Procurement

• Code of Conduct for Siemens Suppliers and Third-Party Intermediaries
• Risk-based approach to supplier selection and monitoring
• External sustainability audits

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, UN Global Compact, UN Guiding Principles Reporting Framework

Certifications: ISO 14001

Third-party Assurance: Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Siemens' products, solutions, responsible business practices, thought leadership, and community engagement contribute to these SDGs.

Sustainable Products & Innovation

• Environmental Portfolio products and solutions
• “Blue” product line for eco-transparency

Awards & Recognition

• Rated the most sustainable company in its industry by RobecoSam/Dow Jones
• Listed in the DJSI World Index for the 19th consecutive time

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Ethics
• Governance
• Resource efficiency
• Equity
• Employability

Environmental Achievements

• Reduced CO2 emissions by 2,958 tons equivalent through rooftop solar PV plants
• Reduced CO2 emissions by 1,068 tons equivalent through Power Purchase Agreement
• Reduced energy consumption by 2,634 MWh equivalent to 2,081 tons of CO2 emission equivalent through energy efficient centralized chiller and HVLS fans
• Reduced CO2 emissions by 73 tons equivalent through reuse and reclaim of transformer oil
• Energy savings of 80 MWh through Adiabatic Mist cooling
• Energy savings of 9 MWh through Variable Frequency Drive (VFD) installation
• Energy savings of 34 MWh through reduction of heated water volume in rotor machine washing tank
• Energy savings of 55 MWh through usage of electromagnetic feeders
• Energy savings of 103.3 MWh through HVLS fans, chiller optimization, and Electropolishing process improvements
• Energy savings of 11 MWh through LED lighting replacement

Social Achievements

• Launched Healthy and Safe @ Siemens program focusing on physical and mental well-being
• Implemented COVID-19 care package for families of deceased employees and workers
• Provided transition assistance programs like ‘Siemens Nivrtti’ for employees aged 55 and above
• Conducted training programs on health and safety measures and skill upgradation for employees and workers

Governance Achievements

• Board periodically reviews Siemens Business Conduct Guidelines (BCG)
• CEO & Managing Director and CFO & Executive Director responsible for sustainability decisions
• Annual review of NGRBCs performance

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• ESG risks associated with business counterparts (downstream)

Mitigation Strategies

• ESG due diligence tool for assessing downstream counterparts
• Supplier audits and improvement measures to address sustainability risks
• Siemens Group Code of Conduct for Suppliers and Third-Party Intermediaries

Supply Chain Management

Supplier Audits: 83.5% underwent CRSA; 24% underwent ESA

Responsible Procurement

• Siemens Group Code of Conduct for Suppliers and Third-Party Intermediaries
• Corporate Responsibility Self-Assessment (CRSA)
• External Sustainability Audits (ESA)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Reducing greenhouse gas emissions
• Developing sustainable products and solutions

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, SBTI (Science Based Target initiative)

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circular Economy
• Energy Efficiency
• Renewable Energy
• Supply Chain Sustainability

Environmental Achievements

• Various chemical companies have implemented initiatives to reduce energy consumption, increase renewable energy use, and improve electrification.
• Tata Europe's CCU plant captures CO2 and uses it as feedstock.
• BASF aims for climate neutrality by 2050, focusing on electrification and renewable energy.
• DuPont aims for a 23% reduction in energy consumption over 10 years using biofeedstock and renewable electricity.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High fragmentation in the chemical industry makes it difficult to achieve widespread buy-in for decarbonization strategies.
• High investments and fixed capital in chemical plants.
• Complexity of addressing Scope 3 emissions from raw materials.
• Regional variations in renewable energy supply and economic costs.
• Need for customization of decarbonization strategies for each chemical producer.

Mitigation Strategies

• Developing individualized decarbonization plans for each facility.
• Leveraging key processes like decarbonization roadmapping, energy optimization, infrastructure modernization, and service-based business models.
• Collaboration with upstream and downstream partners to address Scope 3 emissions.
• Seeking external third-party support to navigate regional complexities and identify opportunities.
• Utilizing digitalization and data-driven technologies to optimize operations and reduce emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Decarbonizing Scope 3 emissions through agreements and raw materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol Methodology

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• environmental
• employee
• social
• human rights
• anti-corruption
• bribery
• sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• supply chain disruptions
• geopolitical uncertainties
• economic slowdowns
• inflation
• rising interest rates
• cybersecurity threats
• shortage of skilled personnel
• climate change litigation
• changes in regulations
• compliance risks

Mitigation Strategies

• DEGREE sustainability framework
• ESG due diligence process
• hedging activities
• project management improvements
• cost-reduction measures
• cyber defense measures
• talent acquisition strategies
• compliance organization
• global compliance program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Ethics
• Governance
• Resource Efficiency
• Equity
• Employability

Environmental Achievements

• Reduced CO2 emissions in own operations by 60% since 2019 (overachieved 2025 interim ambition of 55% reduction)
• Decreased energy consumption by 17% since 2021
• 97% of locations implemented water strategies
• More than 25,000 Siemens products received Siemens EcoTech recognition in fiscal 2024
• Products sold to customers are projected to avoid around 144 million metric tons of CO2 equivalent emissions over their lifetime

Social Achievements

• Women hold 32.6% of top management positions, surpassing the 2025 DEGREE ambition of 30%
• Invested €442 million in employee education and training
• Employees accrued 27 digital learning hours per person, achieving the 2025 DEGREE ambition of 25 hours ahead of schedule

Governance Achievements

• 91% of employees trained on Siemens’ Business Conduct Guidelines (on track to reach 100% by 2025)
• ESG criteria included in long-term variable compensation programs for Managing Board and senior management
• Established a cross-functional governance setup to oversee generative AI

Climate Goals & Targets

Environmental Challenges

• Worsening climate crisis, rising temperatures, natural disasters, escalating energy costs, inflation, and geopolitical conflicts
• Supply chain disruptions
• Achieving faster progress on sustainability
• Ensuring ethical standards and responsible business conduct in the digital world

Mitigation Strategies

• Significant investments in future technologies (including AI) to unlock further sustainability potential
• Siemens Xcelerator open digital business platform to make digital and sustainability transformation more accessible
• Siemens EcoTech label to highlight sustainable products
• Strengthening Key Account Management
• Cross-functional Generative AI Governance task force
• Siemens Responsible Generative AI Requirements

Supply Chain Management

Supplier Audits: 430 external sustainability audits in 2024; 6,878 Corporate Responsibility Self-Assessments (CRSAs)

Responsible Procurement

• Supplier Code of Conduct
• Risk-based approach to supplier selection and qualification
• CRSAs and ESAs
• Responsible Minerals Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC, WEF IBC Metric

Certifications: ISO 14001, ISO 50001, ISO 27001

Third-party Assurance: Independent Practitioner’s Report on a Limited Assurance Engagement on Sustainability Information

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 9
• SDG 13

47% of Siemens' active patent families relate to at least one SDG.

Sustainable Products & Innovation

• Siemens EcoTech products

Awards & Recognition

• EcoVadis Platinum medal
• CDP Climate Change A List
• Forbes World’s Best Employers 2024
• Universum World’s Most Attractive Employers 2024