Siemens Reduces CO₂ Emissions by 54

Mid-term carbon dioxide reduction targets achieved

Sustainability metrics incorporated into the compensation system for Management Board members

Innovative digital ESG tools provide a foundation for assessing sustainability risks in customers’ business operations

High scores achieved on the Dow Jones Sustainability Index, particularly in the areas of innovation, environment, and cybersecurity

Siemens announced that it has achieved its previously set mid-term carbon reduction targets. Since 2014, the company’s carbon footprint within its own value chain has been reduced by more than half (54%). As a result, Siemens has exceeded its target of reducing global carbon dioxide (CO2) emissions by 50% by 2020, surpassing the goal by four percentage points. Including Siemens Energy, the company’s carbon emissions have decreased by approximately 1.2 million metric tons compared to 2014, primarily due to four initiatives: increasing energy efficiency measures, utilizing distributed energy systems, purchasing green energy, and reducing fleet emissions. Siemens plans to achieve carbon neutrality in its business operations by 2030. The company recently released details on this plan along with other updates regarding sustainability.

“The pandemic has fundamentally changed our lives and laid bare the vulnerabilities of today’s societies, economies, and ecosystems. To create value responsibly, we need to build a sustainable future that strikes a balance between human development and the protection of our planet. Decarbonization is a key milestone on our path toward this goal,” said Roland Busch, Deputy CEO of Siemens AG. “ “We now have unlimited opportunities to create a better world. We are helping our customers reshape key economic sectors and improve the lives of billions of people every day.”

To better integrate sustainability into operations, environmental, social, and governance (ESG) criteria have also been incorporated into the compensation system for members of the company’s Managing Board. Siemens’ internal ESG/sustainability index comprises three equally weighted key performance indicators (KPIs). For the company’s 2020 stock awards, these KPIs are: CO₂ emissions reductions (environment), training hours per employee (social), and the Customer Recommendation Index, which measures customer satisfaction (governance). Similar to the system adopted by the Managing Board, the ESG criteria also apply to all senior executives worldwide who are eligible for company stock awards.

“Our recent successes demonstrate that sustainability can go hand in hand with business profitability. In this way, we are creating long-term value for our customers, employees, and society as a whole,” said Judith Wiese, Chief Human Resources Officer, Member of the Managing Board, and Head of Sustainability at Siemens AG. “Siemens’ innovative and digital solutions empower companies and our customers to improve energy efficiency, drive automation, and advance decarbonization. Together with our partners, we will strive to unlock further potential to make systems used in industry and infrastructure more sustainable and environmentally friendly.”

Furthermore, to address potential environmental and social risks earlier and more comprehensively, Siemens launched an innovative digital early-warning system on October 1 to support sales-related business decisions. The ESG Due Diligence Tool, developed in collaboration with external experts, is available to all Siemens sales departments. The tool covers risk identification, assessment, mitigation, and monitoring, and combines internal information with external data.

For many years, Siemens’ commitment to sustainability has been widely recognized. In the globally renowned Dow Jones Sustainability Index (DJSI), the company once again achieved high scores in numerous areas, including innovation, environment (specifically operational eco-efficiency and product management), and the newly introduced cybersecurity category.