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.
In 2021 we updated our materiality assessment focusing on Siemens businesses Smart Infrastructure, Digital Industries as well as Mobility. The goal was to identify the most important material issues (economic, environmental, or social) for Siemens applying the concept of double materiality according to the CSR Directive Implementation Act, in Germany CSR-RUG. Therefore we analyzed the outside-in and the inside-out perspective besides stakeholder relevance. This materiality update helped us to prioritize relevant aspects of sustainability. We use the results to inform our strategy, constantly enhance our sustainability management and as basis for guiding processes to identify and manage potential opportunities and risks. The top three material issues identified based on the three perspectives of materiality are climate action, sustainable product design and lifecycle management as well as social and environmental standards in the supply chain.
How we identify and assess material and high priority issues:
We follow a stepwise approach in determining material issues. The materiality assessment is planned to be conducted at least every five years. The longlist of potentially relevant sustainability topics (~ 100) is derived of comprehensive desktop research on ratings, rankings and peers followed by shortlisting of relevant aspects in an internal workshop. Major next steps are the evaluation of three perspectives based on expert workshops as well as internal and external stakeholder interviews.
- Outside-in perspective:
Sustainability issues that are associated with opportunities or risks for the course of business, the annual financial statements or the situation of the company (business criticality). The top three material issues that have the greatest impact on our business and the generation of long-term value are climate action, sustainable product design and lifecycle management as well as social and environmental standards in the supply chain.
- Inside-out perspective:
Sustainability issues on which the company's business activities, business relationships, and products and services are likely to have either a positive or negative impact (sustainability relevance). The top three material issues where Siemens has the greatest impact on society and environment at large are climate action, social and environmental standards in the supply chain, cyber security and data management, sustainable product design and lifecycle management as well as partner management and collaboration.
- Stakeholder perspective:
Sustainability issues that are defined as material by key external stakeholders - such as customers, investors, suppliers, politics and NGOs - and internal stakeholders (stakeholder relevance).
DEGREE– A clear framework for sustainability
Support the 1.5°C target to fight global warming
- Net zero operations by 2030 in line with SBTi pathway
- Net zero supply chain by 2050, 20% emissions reduction by 2030
Foster a culture of trust, adhere to ethical standards and handle data with care
- Striving to train 100% of our people on Siemens’ Business Conduct Guidelines every three years
Apply state-of-the-art systems for effective and responsible business conduct
- ESG secured supply chain based on supplier commitment to the Supplier Code of Conduct
- Long-term incentives based on ESG criteria
Achieve circularity and dematerialization
- Next-level robust eco-design for 100% of relevant Siemens product families by 2030
- Natural resource decoupling through increased purchase of secondary materials for metals and resins
- Circularity through waste-to-landfill reduction of 50% by 2025 and towards zero landfill waste by 2030
Foster diversity, inclusion, and community development to create a sense of belonging
- 30% female share in Top Management by 2025
- Access to employee share plans: maintain high level and expand globally to 100%
- Global commitment to the New Normal Working Model
Enable our people to stay resilient and relevant in a permanently changing environment
- Double digital learning hours by 2025
- Access to employee assistance program: maintain high level and expand globally to 100% by 2025
- 30% improvement in Siemens’ globally aggregated LTFIR (lost time injury frequency rate) by 2025
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.
- 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.
- Continuous substitution of substances of concern by 2030.
- Energy efficiency improvement above 10% by 2030.
- 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.
- 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.
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 May 2021, Siemens received an ESG Risk Rating of 28.4 and was assessed by Sustainalytics to be at medium risk of experiencing material financial impacts from ESG factors. Siemens’s ESG Risk Rating places it 5th out of 105 in the Industrial Conglomerates industry assessed by Sustainalytics. The management of material ESG risks at Siemens is rated as strong. The company's overall exposure is high and is similar to subindustry average.
Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. The Rating distinguishes between five levels of risk: negligible, low, medium, high and severe.
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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.