To Beat Climate Change, Digitalize the Electrical World
Electrifying the world’s infrastructure is the critical next step to de-carbonization. We must consider tactics to speed progress toward this goal
Improving the competitive position of our customersInvestments into low-carbon technologies are paying off: they increase our customers’ and our own competitiveness and they help preserve the environment. The advancement of energy-efficient, resource-saving technologies has been the focus of Siemens for many years now. Both the environment and people’s quality of life benefit from this commitment. As do our customers because the associated energy savings can help them slash production costs over time and strengthen their competitiveness.
Lay the right foundations for sustainable cities now
70% of all emissions will come from cities. If we want to win the battle against climate change, we need to win the battle in the cities first.Dr. Roland Busch, Member of the Managing Board of Siemens AG
It’s our role to be a leader in this battle against climate change – to show that it works, that there is a positive business case, that there are great opportunities for doing this. Our carbon neutral program is one good example.Jenny Bofinger-Schuster, Senior Vice President Sustainability & Cities, Siemens AG
Carbon-neutral operations by 2030Siemens is one of the first major industrial companies aiming to achieve a worldwide net-zero carbon footprint by 2030. To reach this goal, we will invest some 100 million Euros in energy-efficiency projects at our production facilities and buildings until 2020.
Carbon-neutral operations: Most current figures
of our German sites use 100% green energy
of CO2 emissions reduced since the launch of Siemens' CO2 neutral program
Euros expected annual savings in operating costs starting 2020 due to investments in energy-efficiency projects
In 2018 and 2019, the global ambitions of putting a price on carbon emissions significantly increased. In order to meet the climate objectives of the Paris Agreement and take tangible action on climate change, it is crucial to accelerate the implementation of international carbon pricing mechanisms. So far, governments around the globe have raised approximately US$44 billion in carbon pricing revenues. These funds are being used to invest in low-carbon infrastructure or foster technological advancements. As of April 2019, 57 initiatives have been implemented or scheduled at the international, national, and regional levels.
In response to these developments, companies are increasingly integrating a climate-related approach into their business strategies. By implementing internal carbon pricing, they are triggering emission reduction initiatives and reducing risk exposure. According to World Bank Group and CDP (Carbon Disclosure Project), around 1,300 companies are currently using internal carbon pricing or are planning to do so within the next two years. As part of Siemens’ commitment to become carbon neutral by 2030, Siemens has launched two internal carbon pricing pilot projects in the UK and Brazil.
UK Carbon Investment Fund
Siemens UK has launched a carbon reduction Investment Fund in order to support Siemens’ global commitment of being carbon neutral by 2030. During the financial year 2019, the fund of £240k was created by charging UK businesses an internal carbon price of £13 per ton of carbon emissions from gas and electricity. This specific price was set in order to raise enough seed funding for 5-10 projects as part of the pilot project phase. More than 60 innovative ideas were submitted by employees over six weeks to rapidly reduce carbon emissions in the Siemens UK operations. These range from innovation solutions, such as using a digital twins for gas turbines, to energy efficiency measures like funding new air curtains for factories. The six most compelling ideas have been rewarded with funding in the fiscal year 2019.
As a part of Siemens’ commitment to be carbon neutral by 2030, Siemens in the UK has pioneered a carbon reduction programme to help us drastically bring down the carbon emissions from our own buildings and infrastructure.Juergen Maier, CEO Siemens UK
Carbon pricing in Brazil
Following a similar approach as the UK, Siemens Brazil will launch a carbon reduction Investment Fund as part of the pilot project in October 2019. To determine the internal carbon price for future investments, Siemens Brazil adopted the recommended level of the High-Level Commission on Carbon Pricing and set the price at US$40 per ton of carbon emissions. This value reflects the ambition to reduce the carbon footprint and set the country on a corrective course in fulfilling the Paris Agreement. 80% of the funds collected will be used for carbon reduction projects defined by the community of Siemens experts (e.g. Siemens Energy Managers). The remaining 20% will be allocated to projects nominated by all Siemens employees. Every year, different carbon reduction actions will be supported via such a fund mechanism.
Internal carbon pricing allows Siemens to increase opportunities on climate change mitigation and reduces the risk of making a decision without considering potential additional costs. Our customers are also embracing and discussing carbon pricing initiatives in Brazil.André Clark, CEO Siemens Brazil
Siemens' Analysis on Germany’s Energy transition plan 2050As a leading partner in decarbonization for our customers and society, Siemens understands what is technologically and economically feasible in order to transition to a low carbon energy system in the near future. We assess what technological shifts will be required over the next 30 years, when to take these steps and the costs involved.
Taking Germany as an example of a country with an ambitious decarbonization plan, we examined what measures would be needed to achieve at least an 80 percent reduction in greenhouse gas emissions.
Siemens’ Environmental Portfolio – our decarbonization driverWith its Environmental Portfolio, Siemens tackles major challenges, such as climate change, environmental pollution and resource scarcity. The Environmental Portfolio comprises products, systems, solutions and services that meet one of our criteria, namely energy efficiency or the use of renewable energies. Offerings from the Environmental Portfolio help to alleviate negative impact on the environment and to reduce emissions of carbon dioxide and other greenhouse gases contributing to global warming.
Our Environmental Portfolio in facts and figures
What characterizes a product in the Environmental Portfolio?
Renewable energy systems and components qualify for our Environmental Portfolio as well as products and systems, that are far more energy-efficient in the use phase at our customers than comparable solutions, i.e. yield an increase in energy efficiency of at least 20% or a greenhouse gas reduction of at least 100,000 metric tons of CO2 equivalents in the reporting year.