Manufacturing Employee wearing hard hat in factory

Our Environmental, Social and Governance (ESG) strategy

Transforming the everyday for a better tomorrow

While the notion of multinational companies demonstrating purpose in delivering value to a broad range of stakeholders has gained momentum in recent years, this is nothing new for Siemens. For more than 170 years, we have been a part of the fabric of the U.S., engaging with many different communities and investing ourselves in our shared success.


Our mission is to help solve the world’s biggest challenges, improve the lives of people all over the world, and leave our planet stronger than we found it. A clean environment, healthy communities, workers prepared for the jobs of tomorrow, and a business that reflects the diversity of the customers, industries, and societies we serve and high ethical standards—these are our imperatives.


As a result, our environmental, social and governance (ESG) efforts are integral to every facet of our business. They imbue our work with purpose, and ensure that what we do is truly positioned to provide value for every customer, industry, and country we operate in. Not just today, but for decades to come.


We demonstrate our ESG commitment through our DEGREE model: decarbonization, ethics, governance, resource efficiency, equity, and employability—described below.

We are proud to have been the first global industrial company to commit to 100 percent carbon neutrality by 2030, and we have already reduced carbon by 54 percent in 2020. As an active supporter of the Paris Climate Agreement, we will continue to do our part to reduce emissions, foster healthy communities, and ensure that we are all prepared for a changing tomorrow and support the 1.5-degree Celsius target. 


As one of the world’s leading technology companies, we need society’s trust and acceptance to achieve our goals. Therefore, integrity is the basis for every one of our actions, and what we expect of every employee, as well as our partners and customers. By prioritizing ethics, we ensure that our partnerships are transparent and that we mitigate any risks. And because of Siemens’ size and influence, we help set high ethical standards across the industry. This includes our supply chain. Our partners commit to a range of sustainability principles, including fair labor practices, anti-trafficking standards, the health and safety of employees, environmental protections, and fundamental human rights.

Siemens operates in 200 countries and territories, so we’re only as strong as our supply chain. In a vast array of markets, a diverse supply chain is essential.


We’re proud that 20 percent of our suppliers are diverse. Every year, we spend $970M with businesses owned by women, people of color, veterans, and other diversely owned suppliers. We do this because we believe in leveling the economic playing field, and because diverse suppliers offer us a competitive advantage: They possess a nuanced understanding of the needs of different populations and open us up to new innovations and perspectives. In an increasingly multifaceted, varied marketplace, our ability to adapt to people’s needs is what will keep our business strong and sustainable.


Siemens also announced new grants for business development and entrepreneurship for Black-owned businesses in seven metropolitan areas across the United States, awarding $140,000 in grants to businesses in Atlanta, Baltimore, Chicago, Detroit, New York, Orlando, and Pasadena.


Additionally, we have developed something we call the Siemens Environmental, Social and Governance (ESG) Radar in collaboration with external and human rights experts, so that we can make data-driven decisions to identify, assess, mitigate, and monitor ESG risks in projects and with potential customers and vendors. This has, in part, led to our AAA rating from the world’s largest provider of ESG indices, MSCI ESG Ratings.

Sustainability is at the heart of our business practices—and resource efficiency is a business imperative.

From decentralized power generation, deep electrification and creating resilient microgrids to making buildings smarter about long-term operating costs, we are committed to doing our part to lead and advocate for sustainable and equitable policies that drive innovation, while also combating climate change. We understand that, more than ever, innovation in industry, infrastructure, and mobility must advance an equitable society, strengthen the economy, and sustain the environment.


The urgency surrounding sustainability is most evident in light of the accelerating threat of climate change. Siemens is focused on deploying and investing in technologies and services that intelligently connect energy systems to buildings and industry, with an eye toward energy efficiency, reliability, and smaller carbon footprints. We not only provide our customers with the software and the hardware of a smarter future—we show them how to make a smoother, cost-effective, fluid leap.

At Siemens, we know that we cannot thrive unless our company reflects the richness of the world in which we work, because a diverse workforce understands the lived experiences of the many communities with which we create solutions. That’s why we have built a workplace that strives for inclusive and equitable policies, practices, attitudes, and cultural messages that reinforce the importance of diversity. A key component of this is to create a corporate culture that fosters equity by encouraging employees to speak up; managers to have courageous conversations and take courageous action; and leaders to hold themselves accountable for meaningful commitments.


Siemens earned a 100-percent rating on the 2021 Corporate Equality Index, as well as the 2020 Corporate Equality Index. 2020 also brought Siemens’ first-ever appearance on the Disability Equality Index® (DEI), a national benchmarking of businesses to gauge their level of disability workplace inclusion. With the initial appearance on the list, Siemens earned a top score of 100 percent.


The Siemens Foundation has invested nearly $130M to advance equitable workforce programs and STEM education. And during the pandemic, the Siemens Foundation has provided $9.5M in grants for community health centers, Historically Black Colleges and Universities (HBCUs), the CDFI Fund, and equitable vaccine distribution.


Learn more about Siemens USA's plan for Diversity, Equity and Inclusion

Siemens is committed to building the next generation of skilled workers equipped to engineer, innovate, and engage in a changing world. Where a manufacturing job once meant working an assembly line, today it means operating cutting-edge software. Workers must now be trained in a range of STEM skills to succeed in the advanced manufacturing that will define industry and infrastructure for decades to come. Meanwhile, companies must shift from the old way of doing business to digital, advanced manufacturing and infrastructure if they are going to thrive.


We invest more than $37 million annually in workforce training for U.S. employees and have hire more than 4,000 U.S. military veterans over the past decade. Siemens also has granted billions of dollars of software and hardware to academic institutions, while supporting apprenticeship, technical training and teacher certification programs. Our long-term value and success require us to ignite and sustain today’s workforce and tomorrow’s scientists and engineers because they will transform the industries that are the backbone of our economy.