Siemens supports ESG Convergence
Siemens is commited to the Stakeholder Capitalism Metrics, a set of environmental, social and governance (ESG) metrics and disclosures released by the World Economic Forum and its International Business Council (IBC) in September 2020, that measure the long-term enterprise value creation for all stakeholders.
Our sustainability approach
Sustainability is at the heart of our business activities. It determines our responsible business practices, our risk management approach and our technological contribution to climate protection, resource conservation and product safety in the interest of future generations.
With a strong focus on industry, infrastructure and transport, we help create agile factories, intelligent and efficient buildings, and more sustainable transport systems. This is how Siemens supports its customers to increase their competitiveness and - at the same time - sets the course for a successful energy transition in the areas of industry, transportation and buildings.
Our sustainable business practices are based on integrity, fairness, transparency and responsibility. With numerous programs, we promote the safety, training and well-being of our employees and are committed to equal rights and the further development of society.
How do we create profitable and long-term growth while making a contribution to society?
Our twelve defined principles guide and help us live up to this claim.
We take into consideration our contribution towards the UN Agenda 2030, this has influenced the assessment and derivation of the most important material topics. Regular dialogues with external and internal stakeholders play a key role in the materiality process.
Our efforts in the field of decarbonization and resource protection cover the entire value chain. Imperative for Siemens are: climate protection, the economical use of energy, the efficient use of environmentally friendly materials and the principles of recycling management, which complement each other.
- Climate neutral business operations by 2030.
- Reduction of CO2 emissions in the supply chain of 20% by 2030 and a long-term CO2-neutral supply chain by 2050.
- Contribution to the energy transition in key sectors, such as transport, buildings and industry through energy-efficient and environmentally friendly technologies.
- Use of disruptive technologies and innovative business models to actively contribute to a circular economy.
- Eco efficient Operations by 2030.
- All relevant product families covered with robust eco design criteria by 2030 and eco satisfaction performance in customer surveys by 2030.
- Increase purchased secondary materials for metals and resins by 2030.
- Continuous substitution of substances of concern by 2030.
- Energy efficiency improvement above 10% by 2030.
- Zero waste to landfill by 2030 and continuous increase of waste and end-of-life equipment material usage.
- Phase out of single-use-plastic in canteens and cafes globally by 2023.
- Foster sustainable ecosystems by anchoring biodiversity measures as part of the Siemens Environmental Management System.
We put people at the center. With numerous programs, we promote the safety, training and well-being of our employees and are committed to the further development of society.
- 20% female leaders in the two top management levels directly below the Executive Board by the end of June 2022.
- Promotion of ownership culture through the global Siemens Stock Program.
- Strengthening the appreciation of diversity through the ‘Diversity Charter’ and creating an open and non-discriminatory corporate culture.
- Promotion of employee development through both, global and decentralized programs.
- Proactive accomodation of structural change by investing €100 million in a "Future Fund" to ensure employability.
- Continuous development of occupational safety and health management measures to promote, improve and prevent the health and well-being of employees.
- Promotion of social commitment in the areas of access to technology, access to education and sustainable development of communities.
Our sustainable business practices are based on integrity, fairness, transparency and responsibility. We regard respect for human rights as part of our corporate responsibility along the entire value chain. In the area of cyber security, we assume responsibility well-beyond our corporate boundaries.
- Systematically embedding environmental, social and human rights risks in Siemens business decisions and continuously increasing transparency with regard to risk identification, risk assessment and risk management.
- Regular execution of stakeholder surveys on human rights related material topics.
- Zero tolerance for violations of applicable law and our own internal regulations.
- Preventing the use of conflict minerals in the supply chain.
- Assuming responsibility for cyber security and anchoring data security as part of the compliance system.
How do we measure our contribution?
As part of the UN Agenda 2030, the long-term priorities are clear: end poverty, protect the planet and ensure prosperity. Siemens contributes to the achievement of these priorities by providing access to clean and affordable energy solutions, creating smart and livable cities, providing access to innovative healthcare systems and much more.
Even before the UN Agenda with its 17 SDGs, Siemens developed a proprietary methodology to measure the contribution to society – the ®Business to Society methodology, which allows us to quantitatively measure the social contribution of our activities in various dimensions. These dimensions include strengthening the economy, developing jobs and skills, driving innovation, protecting the environment, improving the quality of life and shaping social change. The ®Business to Society methodology also enables us to evaluate our contribution to achieving the UN's Sustainable Development Goals. Siemens has meanwhile published Business to Society reports in over 35 countries.
United Arab Emirates
Siemens receives an A- rating
The CDP rates Siemens as one of the world's most sustainable companies in the area of climate protection and has given us an A- rating for fiscal 2019.
CDP Global is a non-profit organisation comprising the CDP Worldwide Group, CDP North America, Inc. and CDP Europe AISBL.
Siemens: Number 2 among industrial conglomerates
In 2020, Siemens ranked number 2 among industrial conglomerates with top scores in areas such as innovation, cyber security and environmental protection (operational eco-efficiency and product stewardship).
The Dow Jones Sustainability World Index (or DJSI World) represents the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index, based on long-term environmental, social and governance criteria.
Siemens receives Silver Recognition Level
Siemens received 61 points in its scorecard, which corresponds to the "Silver Recognition Level".
EcoVadis carries out sustainability assessments for suppliers in global supply chains. The evaluation focuses on 21 criteria, which are divided into four overarching themes (environment, labour practices and human rights, fair business practices, sustainable procurement). These criteria are based on international CSR standards such as the Global Compact Principles, the conventions of the International Labour Organisation (ILO), the Global Reporting Initiative (GRI) standard, the ISO 26000 standard and the CERES principles.
Siemens is again a constituent of the FTSE4Good Index
In May 2020, Siemens was again confirmed as a constituent of the FTSE4Good Index.
The FTSE4Good (Financial Times Stock Exchange) index series is designed to measure the performance of companies that demonstrate strong environmental, social and governance (ESG) practices. The FTSE4Good Index is a series of stock market indices for ethical investments, launched by the FTSE Group in 2001.
Siemens is awarded the Prime Status
ISS-oekom is one of the world's leading rating agencies for sustainable investments. The ISS-oekom rating takes environmental, social and governance (ESG) aspects into account by evaluating more than 100 industry-specific indicators with grades from A+ (best grade) to D-.
Siemens is rated AA in the MSCI World Index
We continue being listed in the MSCI World index. In May 2020, MSCI confirmed Siemens' AA rating.
The MSCI World Index is a broad-based global equity index that tracks the performance of shares of large and medium-sized companies in all 23 countries of the developed markets, including the countries of the Americas, Europe, the Middle East and the Pacific Rim.
Siemens takes first place in the field of ESG
In August 2020, Siemens was rated by Sustainalytics as a leading company in the field of ESG (environmental, social, governance) within the industrial conglomerates and was ranked first out of 43. Our risk category remained stable at medium. The management of ESG material risks at Siemens AG is rated as strong.
Sustainalytics' ESG risk ratings measure how exposed a company is to industry-specific ESG risks and how well it deals with these risks. Sustainalytics' Management Score assesses the resilience of a company's ESG programs, practices, and policies.
In 2020 VigeoEiris' analysis resulted in 57 points
Vigeo Eiris’ sustainability ratings provide a complete picture of a company's sustainability performance. This allows market participants to gain ESG insights to manage risks and better consider their social and environmental impacts. The ratings combine Vigeo Eiris' assessment of a company's sustainability impact with an analysis of management's response to ESG risks.
Vigeo Eiris’ EURONEXT indices are composed of the highest-ranking listed companies according to their evaluation of their ESG performance. Siemens is constituent of the EUROZONE 120 index.