“Sustainability is in our very DNA. It’s not an option. It’s a business imperative. Based on our successful track record, we’re now setting ourselves even more ambitious targets. We’ll accelerate our efforts and raise the bar to create considerably more value for all our stakeholders. Sustainable business growth goes hand in hand with the value we create for people and our planet.”
Judith Wiese, Chief Human Resources Officer, Chief Sustainability Officer and member of the Managing Board of Siemens AG
DEGREE - A clear framework for Sustainability
The answers to the challenges of our time matter – for the quality of life of people today and generations to come. Every degree counts as we strive to responsibly meet the needs of an ever-evolving future. This is why we are taking our ESG commitment to the next level now with our DEGREE framework. It constitutes a 360-degree approach for all stakeholders – our customers, our suppliers, our investors, our people, the societies we serve, and our planet.
Decarbonization
Support the 1.5°C target to fight global warming
- Net Zero operations by 2030, with 55% emissions reduction by 2025 and 90% by 2030
- Net zero supply chain by 2050, 20% emissions reduction by 2030
Ethics
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
Governance
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
Resource efficiency
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
Equity
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
Employability
Enable our people to stay resilient and relevant in a permanently changing environment
- Increase digital learning hours to “25 by 25”
- 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
Support the 1.5°C target to fight global warming
- Net Zero operations by 2030, with 55% emissions reduction by 2025 and 90% by 2030
- 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
- Increase digital learning hours to “25 by 25”
- 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
Siemens receives an A- rating
For fiscal 2022, Siemens received an A- rating for climate change and is once again among the CDP leadership band.
CDP Global is a non-profit organisation that runs a global environmental impact disclosure system for investors, companies, cities, states and regions.
Siemens: among leading companies in the industrial conglomerate sector
In 2022, Siemens ranked again among the leading companies within the industrial conglomerate industry group with top scores in innovation, operational eco-efficiency, social and environmental reporting.
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 among the leading companies
Siemens received 70 points in its scorecard, placing it in the top 2% of all companies evaluated that operate in the same industry.
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
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. 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 among the leading companies
In 2022, Sustainalytics lists Siemens among the 10% of companies with the best ESG Risk Rating in the industrial conglomerates segment. The management of material ESG risks at Siemens is rated as strong. The company's overall exposure is high and below 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 three levels of risk management: weak, average, and strong.
Copyright ©2021 Sustainalytics. All rights reserved. This section contains information developed by Sustainalytics (www.sustainalytics.com). Such information and data are proprietary of Sustainalytics and/or its third party suppliers (Third Party Data) and are provided for informational purposes only. They do not constitute an endorsement of any product or project, nor an investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Their use is subject to conditions available at https://www.sustainalytics.com/legal-disclaimers.
In 2022, VigeoEiris' analysis resulted in 59 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.
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.
In Korea, for Korea
Siemens has been doing business in Korea since 1950’s as participated in the reconstruction and infrastructure projects after the Korean War. Over the past decades, Siemens never settled in simply satisfying present-day needs, always seeking to anticipate society's demands. At Siemens, sustainability means long-term economic success coupled with environmental awareness and the social responsibility that goes with being a good corporate citizen. In this pursuit satisfying society's needs, we shaped our portfolio to quickly answer all future changes.
As a global citizen, Siemens has been targeting the sustainable goal on education, health, poverty, environment and so much more. Siemens contributes to the achievement of these goals by providing access to clean and affordable energy solutions, by creating smart and livable cities, by providing access to innovative healthcare systems and much more.
So, we have contributed Korea's sustainable growth providing various business cooperation efforts, active investments, and developments based on high technology and global experience as a partner of Korea.
Measurable factors that contribute to economic success and social stability
To determine what contribution we make to society, we use our customized Business to Society (B2S) methodology. The Business to Society method is based upon the Measuring Impact Framework developed by the World Business Council for Sustainable Development (WBCSD). With this “Siemens – Business to Society” methodology we identify and measure our contribution to the things that really matter to a country, like sustaining economic growth, developing local skills and fostering innovation, sustaining the environment, strengthening the urban infrastructure, improving quality of life and shaping societal transformation. The results of this analysis help us to identify the issues and action fields that are of importance to our society. Illustrating the gathered data, our contribution to Korea's sustainable growth is shown in the Siemens Korea Value Map.
