Supply Chain Management at Siemens intends to focus on energy efficient, low carbon emission suppliers
Working with reliable and conscientious suppliers is not a new concept for Siemens which obliges its partners to meet the requirements of the Code of Conduct. Decarbonization will be therefore another key element of our future collaboration and partnership.
1. Gaining Transparency
In 2018 and 2019, Siemens SCM conducted information surveys to more than 10,000 suppliers to gain transparency over our suppliers‘ CO2 reduction plans and actions and their willingness to cooperate in joint efforts on this topic. We also managed to developed an economic model with an external service provider to calculate the CO2 footprint of all products and services delivered by our suppliers.
2. From calculated Transparency to Primary Data provided by the suppliers
This step was followed by development of the “Carbon Reduction@Suppliers” approach. We designed a “Carbon Web-Assessment” (CWA) which is combined with our CO2 calculation tool. During the first pilot in April 2020, selected buyers approached pilot suppliers for a primary data information. The vast majority showed positive results and very promising CO2 reduction actions which they had already implemented.
3. Way forward in sourcing decision
In fiscal year 2021, Siemens SCM will begin to roll out our ‘Carbon Reduction@Suppliers‘ initiative with some thousand suppliers to be contacted. Our aim is to receive as many responses via CWA as possible to replace the calculated CO2 footprints with real data provided by our suppliers. This data will be the basis of future individual CO2 reduction plans. We strive to be as informative and transparent as possible. A series of videos will accompany our program with information on the tools and how to provide the necessary data, as well as learning content for CO2 reduction. The first video can be seen here.
We trust in a cooperation with energy efficient, low carbon emission suppliers.
"Carbon Reduction @ Suppliers" at a glance
Set with us the right strategic direction in climate change.
"Carbon Reduction @ Suppliers" is designed to support our suppliers in their target setting and action plans for reducing their climate footprints.
Watch our first video describing our intentions and plans for future collaboration with our suppliers.
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