Sustainability
report2023

Our Purpose

We create technology
to transform the everyday,
for everyone
Key figures

320,000
Employees

78 billion€

Revenue

15.4%

Adjusted EBITA margin
for the Industrial Businesses€

8.5 billion

Net income

We are connected to Siemens Healthineers (SHS) under the Siemens brand through shared values.
Industry, Infrastructure, and Mobility
Healthcare

Siemens

Siemens
Healthineers 1

SCOPE OF SUSTAINABILITYREPORT

All indicators in the report include Siemens Healthineers (SHS), unless otherwise noted.
For the sake of readability, the masculine form is used; it is representative of people of any gender.

1

Publicly listed subsidiary of Siemens; Siemens’ share in Siemens Healthineers: 75%.

SIEMENS SUSTAINABILIT Y REPORT 2023

2

Contents

Contents
Contents 3Foreword 

41

Siemens at a glance 

71.1 	Our DEGREE sustainability framework
sets measurable ambitions85Social81
5.1 Working at Siemens

82

5.2 	Diversity, Equity & Inclusion

89

1.2 Company profile10

5.3 	Professional education and lifelong learning

93

1.3 Strategy

17

5.4 	Occupational health and safety management

97

5.5 Corporate citizenship102

2

Our sustainability management 20

2.1 Materiality assessment

21

2.2 Sustainability governance and organization

23

2.3 Partnerships and collaborations for sustainability

26

2.4 Sustainability ratings reflect our performance

29

3

6

Our sustainability indicators

7106

Annex 124

7.1 Reporting methodology

125

7.2 	Reporting principles for Customer

Governance31

Avoided Emissions

3.1 Compliance and Ethics

32

3.2 Human rights

40

3.3 Sustainable supply chain practices44

7.4 	Task Force on Climate-Related

3.4 Cybersecurity and data privacy

49

Financial Disclosure (TCFD)

4

128

7.3 	Our contribution to sustainable ­developmentof societies

132
136

7.5 	GRI Standards – key topics and boundaries

144

7.6 WEF IBC Metric

146

7.7 	SASB – Electrical Electronic Equipment Index

150

Environment 54

7.8 United Nations CEO Water Mandate

152

Holistic environmental protection

55

7.9 	Independent auditor’s report on a limited
assurance engagement 

4.1 Climate action

58

7.10 Notes and forward-looking statements

4.2 Conserving resources

65

7.11 	Further information and

4.3 Product stewardship

71

4.4 EU taxonomy

76

SIEMENS SUSTAINABILIT Y REPORT 2023

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information resources

154
156
157

Foreword

Foreword

Scaling sustainability impact

Our purpose – which has guided us for 176 years – is to

In a tumultuous year of record-shattering heatwaves, wild-

create technology to transform the everyday, for everyone.

fires and floods, and despite rising energy prices, inflation,

This technology with purpose touches the lives of customers,

supply chain challenges, labor shortages, plus the impact ofpartners, and consumers everywhere – improving the quality

growing geopolitical tensions, we remain optimistic aboutof life for billions of people worldwide. Technology withtechnology as the answer to some of the world’s biggest

purpose is about leveraging digitalization for optimized

challenges. Our technology empowers our customers andresource usage and circularity readiness and accelerating thepartners to scale their sustainability impact faster across theenergy transition through renewable integration, energy

backbone of our economies. As we approach a critical tipping

efficiency, and electrification. It is about societal impact

point for our planet, the demand to accelerate the digitalby designing and operating the most efficient train andand sustainability transformations has never been greater.

e-mobility solutions within sustainable communities, built
upon decarbonized building technologies. And it is about

As a leading technology company, Siemens supports cus-

pioneering breakthroughs in healthcare to improve the lives

tomers all over the world to become more competitive,of patients and their families.

resilient, and, above all, more sustainable. Our portfolio
enables a positive impact on our planet and society at scale.

Combining the real and digital worlds

Today, it is about more than just managing negative foot-Our strategy is to combine the real and digital worlds –prints; it is about a company’s handprint and increasingly­harnessing the power of hardware and software, or OT andexpanding businesses’ net-positive impact on the world.

IT. More than 90% of Siemens AG’s business enables positiveThat is why Siemens has integrated its sustainability strategy

sustainability outcomes for our customers. Worth highlight-

in our business activities, technology roadmap, investment

ing is that our products sold to customers in fiscal 2023 will,

decisions, own operations, and governance. We empowerover the course of their lifetime, avoid around 190 million

our customers to accelerate their sustainability goals along

metric tons of CO2 equivalent emissions – a significant

three impact areas: decarbonization & energy efficiency,
resource efficiency & circularity, people centricity & societal
impact.

increase in avoided emissions over the prior year. This
represents more than the equivalent emissions of the­­Netherlands. In contrast, our own operations and supply

chain accounted for around 12 million tons of greenhousegas emissions.

SIEMENS SUSTAINABILIT Y REPORT 2023

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Foreword

To help our customers and partners accelerate their transfor-

We have a clear position on responsible business conduct.

mation, we recently introduced Siemens Xcelerator, an open

And our DEGREE commitments are based on that. Ethicaldigital business platform that makes digital transformation

behavior, integrity and compliance are nonnegotiable. They

easier, faster, and more scalable for companies of all sizes. A

go beyond strict adherence to rules by firmly placing respon-

key element of this platform is a growing ecosystem ofsible action sustainably at the core of our culture and busi-

partners. The sustainability impact we create is more powerfulness conduct.

when all partners pool their strengths and work together
toward a common goal.

We are also focused on our own environmental footprint: In
2015, as one of the first global companies to do so, we

We are able to empower our customers to scale sustainability

committed to becoming carbon neutral by 2030. Today, we

impact because we address challenges across the entire

are on track, and we have already accelerated. We are proud

value chain – with deep domain know-how across many

to have reduced our CO2 footprint from our operations byindustries and across ecosystems of suppliers, partners, and

50% (without offsetting) since 2019 and are targeting 90%

in 2030. We reduced our energy consumption by 9% sincecustomers.

fiscal 2021, meanwhile 96% of our locations have impleAn excellent example of the power of ecosystems is how

mented a water strategy.

software can track and manage carbon footprints throughout
lifecycles and along supply chains. SiGREEN, an emissions-­

Applying our own technologies in our own operations is key

tracking tool on our Siemens Xcelerator platform, enables

to achieving these ambitions. In Nanjing, China, for example,

companies to connect to all their suppliers, enabling data-

we consolidated three production sites into one lean anddriven decisions to reduce product carbon footprints andgreen digital native factory, which was first built as a digital

decarbonize at scale.

twin. This led to annual savings of 5,000,000 kWh of energy,

Our DEGREE sustainability framework

3,300 metric tons of CO2, and 6,000 m3 of water. At thesame time, productivity went up by 20%. For Siemens,

And we do not stop at the sustainability impact of our port-

rethinking scalable products and services for a sustainablefolio. We define our environmental, social, and governanceworld should go hand in hand with savings, efficiency gains,(ESG) ambitions within our DEGREE sustainability framework –and customer value.

a 360-degree approach reflecting our core sustainability
values. We look at sustainability from every angle with clear
ambitions in six fields of action – Decarbonization, Ethics,
Governance, Resource efficiency, Equity, and Employability.

SIEMENS SUSTAINABILIT Y REPORT 2023

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Foreword

Our sustainability ambitions are supported by 320,000­colleagues who bring our purpose to life every day – in an
increasingly inclusive environment in 190 countries aroundthe world. Within Siemens AG, women now hold 31% of top
management roles, having achieved our 2025 ambition for
30% two years ahead of time. Our people are at the heart ofthis company. In fiscal 2023 we invested €416 million in our
active learning culture, ensuring sustainable employability inrapidly changing markets. We have also made progress in thenumber of hours our people spent learning across the threestrategic focus areas of digitalization, sustainability, andleadership: On average, our people have accrued 23 digitallearning hours per person per year. And they are on track toincrease that to our ambition of 25 digital learning hours by
2025.

Easier, faster, and at scale
We create technology to transform the everyday, for everyone.
By combining the real and digital worlds we can accelerate
digital and sustainability transformations easier, faster, andat scale. Together, by scaling across ecosystems, we willcontinue to leverage the power of the digital world to havea positive sustainability impact in our precious real world. At
Siemens, what’s good for business and good for the planetand society go hand in hand.

Dr. Roland Busch		

Judith Wiese

SIEMENS SUSTAINABILIT Y REPORT 2023

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Pages 7 – 19

Siemens at
a glance

SIEMENS SUSTAINABILIT Y REPORT 2023

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1.1 Our DEGREE sustainability framework sets clear and measurable ambitions

1.1

Our DEGREE sustainability framework setsmeasurable ambitions
D  ecarbonization
support the 1.5°C target
to fight global warming

E  thics

foster a culture of trust, adhere to ethical standards,
and handle data with careG  overnanceapply state-of-the-art systems for effective
and responsible business conduct

R  esource efficiency
achieve circularityand dematerialization

E  quity

foster diversity, inclusion, and community development
to create a sense of belonging

E  mployability

enable our people to stay resilient and relevant
in a permanently changing environment

A strong framework for sustainability
Sustainability is an integral part of our business. We are

The DEGREE sustainability framework is based on six fields oftaking our ESG commitment to the next level with ouraction that drive sustainability and are dynamic and contin-

DEGREE sustainability framework. The framework provides a

uously evolving. We have set clear priorities and ambitions

360-degree approach to our core sustainability values.

for key ESG issues, which we are driving towards. The
DEGREE sustainability framework applies to all Siemens-­

By addressing the three aspects of ESG, we are building aaffiliated companies, excluding Siemens Healthineers (SHS).

better future that helps us to

However, the sustainability approach at SHS follows thesame basic principles, which reflects our expectations as its→ Stay within the planetary boundaries;→ Foster a culture of trust, empowerment, and growth;→ Support inclusive economic opportunities;→ Ensure that our people and businesses remain resilient andrelevant for the future.
SIEMENS SUSTAINABILIT Y REPORT 2023

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majority shareholder.

1.1 Our DEGREE sustainability framework sets clear and measurable ambitions

What are our ESG ambitions and priorities, and what progress did we make by end of fiscal 2023?
Baseline

Decarboni­
zationProgressat the end of FY 23

FY 19: 737 kt CO2e

1.	Net Zero operations by 2030, with 55%

Ambitions– 50%

2.	Net Zero supply chain by 2050, 20% emissions

FY 20: 8,098 kt CO2e

– 20% by 2030

– 1%

– 100% by 2050

reduction by 2030

Ethics3.	Striving to train 100% of our people on Siemens’ From FY 23

Governance

4.	ESG-secured supply chain based on supplier69%

100% by 2025

Business Conduct Guidelines every three years−−

Suppliers committed−−−−

ESG criteria anchored−−commitment to the Supplier Code of Conduct
5.

Resource
efficiency– 55% by 2025
– 90% by 2030

emissions reduction by 2025 and 90% by 2030

Long-term incentives based on ESG criteria 1

FY 21: 26%

6.	Next-level Robust Eco Design for 100% of

100% by 2030

51%

­relevant Siemens product families by 2030
7.	Natural resource decoupling through increased − −Metals 35%−−

purchase of secondary materials for metals and − −Resins <1%−−

resins 2
8.

Circularity through waste-to-landfill reduction

FY 21: 0%– 50% by 2025

– 15%

~ –100% by 2030

of 50% by 2025 and toward zero landfill waste
by 2030

Equity9.	30% female share in top management by 2025 FY 20: 22.7%
FY 21: 98%

10.	Access to employee share plans: maintain

31.1%

30% by 2025

99.9%

~ 100% by 2025high level and expand globally to up to 100% 3
11.	Global commitment to the New Normal−−

Rollout continued––­Working Model 4

Employability 12. Increase digital learning hours to “25 by 25”

55

13.	Access to Employee Assistance Program:

FY 20: 7h

23h25h by 2025

FY 20: 82%

96%

100% by 2025

­maintain high level and expand globally to
100% by 2025
14.	30% improvement in Siemens’ globally

FY 20: 0.31

– 26%

– 30% by 2025

­aggregated LTIFR6 by 2025
1
2
3
4
5
6

Assessment based on the Siemens internal ESG/sustainability index, which is based on customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning hours.
Product specifications for the use of secondary plastics are in development.
Where legally possible and reasonable.
For employees with job profiles that make this possible and reasonable.
Digital learning hours per headcount on average.
LTIFR: Lost Time Injury Frequency Rate (Siemens employees and temporary workers).

MORE INFORMATIONON OUR AMBITIONSSIEMENS SUSTAINABILIT Y REPORT 2023

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1.2 Company profile

1.2

Company profile– A leading technology company with a global

By combining the real and digital worlds, Siemens helps its­footprint

customers accelerate their own digital transformations– We create technology to transform the everyday,(easier, faster and at scale) and achieve their sustainability

for everyone

targets.

customers, planet, and society

In addition to its core businesses (Digital Industries, Smart– Combining the real and digital worlds to benefit
Infrastructure, and Siemens Mobility), Siemens is the majority
shareholder of the exchange-listed company Siemens

A leading technology company

Healthineers AG (SHS), a leading global provider of medical

Siemens AG (Berlin and Munich) is a technology company

technology. Siemens also holds a minority interest in thefocused on the fields of industry, infrastructure, mobility,

exchange-listed company Siemens Energy AG, which oper-

and healthcare.

ates in the field of energy transmission and generation.

Businesses and services
Industrial businesses
DigitalIndustries

Smart
Infrastructure

Siemens
Healthineers1

Mobility

Portfolio
Companies

Services
Siemens
Financial Services

1

Siemens
Real Estate

Publicly listed subsidiary of Siemens; Siemens’ share in Siemens Healthineers is 75%.
SIEMENS COMPANY PRESENTATIONSIEMENS SUSTAINABILIT Y REPORT 2023

10

GlobalBusiness Services

Siemens ­Advanta

1.2 Company profile

As a minority interest, Siemens Energy AG is not included in

Siemens Healthineers

this Sustainability Report. Siemens is a technology company

Based on its foundation in in vitro diagnostics, image-guided

that operates in nearly all countries of the world. Ever since

therapy, in vivo diagnostics, and cancer care, Siemens

it was founded in 1847, Siemens has provided solutions to

Healthineers aims to fight the most dangerous non-commu-

global challenges and stands for innovation, quality, andnicable diseases such as cancer, stroke, and coronary heartreliability. We are focused on leveraging the digital and sus-

disease worldwide, enable efficient workflows in hospitals,

tainability transformation to drive sustainable growth.

and improve access to modern medical care. Today, morethan three billion people around the world still lack access to

Industrial businesses

adequate medical care. Depending on where you live, this

Digital Industries

lack of access is even true in developed countries. It is the

The industrial world faces tremendous challenges. As our

privilege of Siemens Healthineers to provide innovative

planet‘s resources are finite, we must decarbonize and do

healthcare solutions and services which make healthcare

more with less. Digital Industries’ offerings enable customers

affordable and accessible for underserved communities

to optimize entire value chains from product design andeverywhere.

development through production and post-sale services.
With its advanced software solutions in particular, Digital

Key figures

Industries supports customers in their evolution towards the

In fiscal 2023, which ended on September 30, 2023, Siemens“Digital Enterprise,” resulting in increased flexibility andgenerated revenues of €78 billion and profits after tax ofefficiency of production processes and reduced time to€8.5 billion. As of September 30, 2023, the company had

market for new products.

approximately 320,000 employees worldwide.
SIEMENS FINANCIAL REPORT FISCAL 2023, COMBINED MANAGEMENT

Smart Infrastructure

REPORT, CHAPTER 7, OVERALL ASSESSMENT OF THE ECONOMIC POSITION

Siemens Smart Infrastructure drives the decarbonization,
resource-efficiency, and people-centricity of energy systems,

Customersbuildings, and industries by connecting the real and digital

Putting customers first is a longstanding tradition atworlds. This helps to improve the way people live and work

Siemens.1 When it comes to technology, sustainability, andby paving the way for the sustainability transition to an

innovation, our customers are always at the heart of whatall-electric world with decarbonized power supply and effi-

we think and do: everything begins with them. That is why

cient energy use.

we have made “customer impact” a strategic priority. We listen
to understand our customers’ needs as early as possible, andSiemens Mobility

ideally, before our customers even become aware of them.

Siemens Mobility drives the decarbonization and resource-­
efficiency of transportation by connecting the real and digital

To meet our customers’ needs and the constantly changing

worlds. Leveraging digital technologies enables lifecycle

demands of the markets, Siemens draws on a global sales

cost-optimized rail infrastructure and rolling stock, 100%

force that takes its guidance from our regional companies.

system availability, maximized network capacity, and opti-

Key success factors include a strong customer focus, digitalmized customer experience and processes to support atransformation, efficient processes, and collaboration withmobility shift in our society.

external partners.

1

SIEMENS SUSTAINABILIT Y REPORT 2023

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We call any current or potential purchaser of Siemens products or services, no matter
what the sales channel, a “customer.” Some customers who are especially significant
for Siemens are called “Key Customers”.

1.2 Company profile

Sustainable growth through digitaltransformation

Customer Impact

The COVID-19 pandemic has rapidly accelerated digitalization.

approach to systematically structure and drive our Key Cus-

New business models are emerging, and the importance of

tomer relationships company-wide. While all our customers

collaborative partnerships within ecosystems is increasing,are served by the general Sales organization, Key Customers

especially in the context of sustainability challenges thatare also managed through our Key Account Management

cannot be solved unilaterally. We need to achieve more, andapproach.

At Siemens we rely on a mature Key Account Management

we need to do it sustainably while consuming fewer
resources. We can do this by increasing our efficiency with

Over and above our basic sales approach, Siemens’ primary

the help of new technologies and by working in ecosystems

principles for successful Key Account Management are awith new business models to keep resources in circulation.

special understanding of our customers’ technology andvertical markets along with the collaboration among all

Combining the real and digital worlds represents a major

customer-facing parties – across functional, organizational,

leap forward for Siemens and our customers as well as forand regional boundaries (“go-to-market” approach).

industries, planet, and society. This will help shape a world
where intelligent manufacturing, smart energy systems,

Our harmonized Key Account Management process enables

smart buildings, and connected mobility can make our infra-

us to act as one company and serve our customers in a

structure more sustainable and our lives easier.

global, sustainably coordinated approach.

Technology is driving sustainability, and the digital transformation is also essential to accelerating sustainability. To
speed up our customers’ digital transformation and increase
their value added, we have created Siemens Xcelerator, an

Key Account Management – A holistic

open digital business platform. It is intended to accelerate

approach to meeting customer needs

digital transformation (easier, faster, and at scale). It comprises three fundamental elements:

software, and digital services from Siemens and certified

Systematically measuring and improving
customer satisfaction

partners based on standard application programming

We use the Net Promoter Score (NPS) every year to measureinterfaces (APIs)

customer satisfaction, and by extension, the quality of our

1. A curated modular portfolio of IoT-enabled hardware,

2. An ever-growing open ecosystem of partners

partnerships. Management compensation at Siemens also

3. An evolving marketplace that enables customers, partners,

includes a component that is based on customer satisfaction.

and developers to explore, teach, and exchange digitalThis component incorporates long-term performance incen-

solutions.

tives using ESG criteria and is defined under Governance in
our DEGREE sustainability framework. The assessment is

The platform is constantly growing and provides many market-­based on the internal ESG/Sustainability index, which

tested solutions that enable customers to easily begin their

includes the Net Promoter Score2, among others.3

sustainability projects. These projects can include managing

SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION

energy efficiency, integrating renewable energies, and saving
resources. Siemens Xcelerator provides cybersecurity­standards at every level to reduce risks for customers.

2

3
SIEMENS SUSTAINABILIT Y REPORT 2023

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Assessment based on the Siemens internal ESG/sustainability index, which is basedon customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning
hours.
Siemens without SHS.

1.2 Company profile

tion surveys conducted annually worldwide. The score itself

Innovation strengthens Siemens and its
customers

is based on a single question: “How likely is it that you would

Our Research and Development (R&D) activities are geared

recommend Siemens to a colleague or business partner?”

towards developing innovative and sustainable solutions for

Siemens’ systematic evaluation draws from customer satisfac-

Siemens’ customers and businesses, while simultaneously
The survey pursues a holistic approach to customer relations

strengthening our competitive positioning. This is also how

because it follows up by implementing processes and systems

we contribute to society.

designed to help foster long-term customer loyalty.

4

We focus on core technologies and innovation fields –Regardless of the score, we initiate a follow-up process after

Siemens Company Core Technologies – that play an essential

the survey, both internally and externally. When a score isrole in the success of Siemens and its customers. The imple-

low and considered critical, we take immediate action tomentation of our core technologies by our operating

identify key issues and determine what measures are needed­businesses and Technology – our central R&D department –to improve the relationship.

ensures that research activities and business strategies areclosely aligned, and that all businesses can profit equally andquickly from technological developments. For example:

Our customers’ satisfaction
is our top priority→ Data Analytics & AI: Industrial facilities and infrastructures are generating ever-growing amounts of data. Using
methods of machine-based data analysis and artificial

Despite the tense global situation (for example, with supply

intelligence (AI), we help operators increase availability,

bottlenecks for materials and goods), our customers have

improve operational quality, and reduce the stress onrecognized us for our customer support, reliable products,

humans and the environment. At the same time, ourand a wide range of offerings. By consistently addressing

quality statement on industrial-grade AI expresses its

their concerns, we have achieved a higher Net Promoter

trustworthiness, reliability, and robustness according to

Score than the previous year.

the requirements suggested for the European Union’s
upcoming AI Act.

We are focusing on areas where we can make a difference.

→ Connectivity & Edge: The Industrial Internet of Things

This means creating sustainable, long-term value for our(IIoT) is the result of the increasing networking of fieldcustomers, for the environment, for society, and for thedevices. The IIoT enables field devices to be equipped

people who work for Siemens.

with additional software-based functions during ongoing

Research and Development
At Siemens our purpose is to provide innovations that
improve the quality of life and create added value for people

operations and makes it possible for the data generated
by these devices to be evaluated in the field or in thecloud.
→ Simulation & Digital Twin: Digital twins are the resultof modeling and simulating systems and processes,

all over the world.

including the development and manufacturing of products.
Digital twins make it easier to accelerate the commissioningof manufacturing plants, speed up time-to-market, andimprove the operation of infrastructures throughout theirlifecycles.

4

In most cases, the survey questions are focused on the business unit level. However,
the overall score can be aggregated up to the business level and to the level of theentire company.

SIEMENS SUSTAINABILIT Y REPORT 2023

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1.2 Company profile→ Software Systems & Processes: Complex, distributed

Siemens Healthineers’ focus also lies on other research prior-industrial software systems that integrate software fromities with the goal of shaping the healthcare of the future.

different providers can only be developed using new

These include medical technology, sensor systems, andmethods and processes in software system development.

robotics and any of the increasingly complex applications→ Power Electronics: Power electronics for inverters havethat can be automated. By using digitalization and AI respon-always played a major role in industry. As the amount of

sibly, Siemens Healthineers is increasing the quality, efficiency,

electricity generated by renewable energy sources grows,

and effectiveness of care at all levels of the healthcare

the stable operation of power grids will also depend on

delivery system.

advances in power electronics.
→ Additive Manufacturing & Materials (from fiscal 2024

Siemens supports research, founders, and students to help

on: Advanced Manufacturing & Circularity): Because ofdrive the development of innovative solutions. We work

the increasing importance of circularity for our customers

closely with scientists at more than 500 leading universities

and society, we will sharpen our focus on elements likeand research institutions, not just through bilateral research

recycling. Additive manufacturing technologies continue

cooperation agreements but also in publicly funded collec-

to play an essential role by facilitating flexible production:

tive research projects. With the Siemens Research and Inno-

for instance, component designs with optimized material

vation Ecosystem program (RIE), we want to address today’s

utilization and an optimized performance-weight ratio.

challenges with technologies of the future in a collaborative→ Future of Automation: We are shaping automation

approach. In fiscal 2023 we collaborated in 16 local Siemens

technologies with the goal of cutting engineering

Research and Innovation Ecosystems around the globe3.

expenses, increasing flexibility – by integrating autonomous
manufacturing machines, for example – and improving

Siemens’ global venture unit, Next47, provides capital to

our customers’ productivity while also reducing energy

help enterprise-focused start-ups expand and scale. It nurtures

consumption.

next-generation business for Siemens by partnering with

→ Cybersecurity & Trust: Industrial cybersecurity is a key

global start-ups at the early and expansion stages of theirtechnology for digitalization. The security of industrial

development. Next47 seeks to anticipate the impact thatfacilities and the protection of data and intellectual prop-

new technologies will have on our markets. This knowledge

erty are important requirements for customers as well as

enables Siemens and its customers to grow and thrive in thegovernments and societies.

age of digitalization.

→ Sustainable Energy & Infrastructure: Energy generation
is moving away from the paradigm of large, centralized

Continued high investment in R&D

power plants towards a network of smaller independent

In fiscal 2023, we reported research and development

generators. Sustainable infrastructure and energy sources

expenses of €6.2 billion, compared with €5.6 billion in fiscal

are essential to this transformation.

2022. The resulting R&D intensity, defined as the ratio of→ Integrated Circuits & Electronics: Integrated Circuits &R&D expenses to revenue, was rated at 8.0%. Additions toElectronics bundles R&D activities in areas like optimized

capitalized development expenses amounted to €0.3 billion.

circuit design and resource-efficient manufacturing, theAs of September 30, 2023, Siemens held approximately

testing and operation of industrial electronics, and recy-

45,000 granted patents worldwide in its continuing opera-cling electronics-based products.

tions.

COMBINED MANAGEMENT REPORT→ User Experience: Users expect intuitive operation in all
our products. The purpose of the User Experience coretechnology is to find out how customers use Siemens
products, what functions they need, what they expect,
and what is unnecessary.

3
SIEMENS SUSTAINABILIT Y REPORT 2023

14

Siemens without SHS.

1.2 Company profile

Our Siemens Company Core Technologies drive technology development to master key sustainability challenges
Data Analytics &AI

Connectivity &Edge

Simulation &Digital Twin

Trustworthy AI in
critical IT/OT infrastructures
to safeguard sustainability,transparency, safety, security,and privacy

Robust IoT wirelessconnections and edge
­solutions for efficient management of energy consumption
in buildings and grids

Data-based digitalbuilding twin and knowledge
graphs to optimize building
operation over the lifecycle(e.g., Siemens headquarters)

Future ofAutomation

Cybersecurity &Trust

Automation hardware based on Supervisory
Control and Data Acquisition
enables the reuse of waste­water in agriculture

SiGREEN for a trustworthy exchange of productcarbon footprints in the value
chain, with verifiable credentials for transparency and­controlSustainable
Energy &Infrastructure

Advanced
Manufacturing &Circularity

Lifecycle Assessment and optimization of production, supply
chain, logistics, and trans­
portation for Environmental
Product Declaration

Tools and procedures for designing products that optimize resource use, including AM designs
and strategies for 4R (reuse,­remanufacture, repair, recycle)

PowerElectronics

User
Experience

Tools for optimizing
energy efficiency, advanced
lifecycle services, and circular
economy designs for powerelectronic systems

Serious gaming toincrease awarenessof the product carbon­footprint

Patent portfolio reflects sustainable innovation
Siemens’ sustainable innovation is reflected in the company’s patent portfolio. Using the LexisNexis® PatentSight®
patent information platform, we evaluate our sustainable
innovations against the United Nations’ 17 defined Sustainable Development Goals (SDGs) and the corresponding
169 targets. 46.8% of the active patent families in Siemens’
patent portfolio relate to at least one SDG, mainly in the
categories of Good Health and Well-Being (SDG 3), Industry,Innovation, and Infrastructure (SDG 9), Affordable and Clean
Energy (SDG 7), and Climate Action (SDG 13).

SIEMENS SUSTAINABILIT Y REPORT 2023

15

Integrated
Circuits &Electronics
Reduce-reuse-recycle
approaches through lifecycle management for­electronics-based products

Software
Systems &Processes
Siemens Water Apps (SIWA)
for greater efficiency andsecurity of the water supply

1.2 Company profile

SDG-related Siemens IP portfolio by SDG category
Absolute figures represent patent families. Multiple assignments of patents possible.

low
be
e
f
i
: L teraw

SDG
Hu 02:
ng Ze
er

27

sible
SDG 12: Respon ndaConsumption
Production

Portfolio
Size

956
794

288

10
57

SDG 0
4: Quality
Education

30

188

h
Healt
ood
3: G ll-Beinge
G0
SD nd W
a

6,276
1,434

323

l
ab
in nitta
us mu:S
11 Com
SDG and
es
Citi

SD
G
05
Eq : Genuality der

1,588

ie
s

SIEMENS SUSTAINABILIT Y REPORT 2023

N

Pover o
ty

SDG 1
3: C
Acti limat
e
on

SD
G

SDG 01:ro14

ife on
15: L
SDG Land

5,207

e

16

SD
G
Inn 09:Inf ovat Industry
ras iontru and ,ctu
re

SDG 07: Affordable
and Clean Energy

r
te
Wa
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a
Cle ation
06:
it
SDG d Sanan

1.3 Strategy

1.3

Strategy– We combine the real and the digital worlds to scale
sustainability impact

Global megatrends
Complexity in the industrial world has never been greater– Siemens’ business is focused on enabling customers
to achieve positive sustainability impact along

than today. Several megatrends are driving us to rethinkestablished ways of doing things:

three customer value propositions: decarbonization &energy efficiency, resource efficiency & circularity,→ Environmental change and the associated climate change,

people centricity & societal impact– The DEGREE sustainability framework defines clear

along with extreme weather conditions like increasing

fields of action for our sustainability ambition

flooding and drought, pose critical challenges. Current
legislation alone is insufficient to effectively combat
environmental change. We are also facing challenges
related to resource efficiency and material extraction,

Siemens is a leading technology company with a portfolio

water scarcity, and biodiversity loss.

designed to drive the digital and sustainable transformation→ In times of crisis, glocalization can create a greater balanceof industry, infrastructure, mobility, and healthcare. We

between the global and the local in our economy. For

firmly believe that technology is the answer to creating a

instance, by ensuring production of our products andsustainable future. As key pillars of our strategy, digitaliza-

solutions near our customers, we can strengthen ourtion and sustainability help future-proof our business andresilience to shocks while also reducing the environmental

that of our customers.

impact of our products.
→ Increasing urbanization, especially in less-developed

Siemens offers technologies and solutions to advance

regions, is a significant megatrend. In this context, thegrowth as societies transition toward a more sustainable

demand for more sustainable and efficient products,

future. We enable our customers to accelerate the energy

technologies, and solutions – including passenger trans-

transition, create more resource-efficient factories, smarter

portation and access to renewable energy – continues tobuildings, and cleaner transportation, and advance health-

grow as more and more people move to cities.

care. By combining the real and the digital worlds, we→ As global population growth progresses at a slower pace,empower our customers to be more competitive and more

our societies are aging, and an increasing number ofresilient while simultaneously reducing their environmental

people need medical care. This demographic change is

impact. Managing data across complex value chains has

also contributing to a shortage of workers across industries.

become an important prerequisite for accelerating this→ Lastly, digitalization continues to accelerate advancements

transformation. Siemens’ industrial metaverse and digitalin connectivity, the Internet of Things (IoT), automation,

twin technologies integrate data from physical factories andand AI technologies. Digitalization is being rapidly

products across entire lifecycles to optimize production

adopted by multiple industries in the public and private

design, increase production efficiency, and reduce CO2e

sectors. By optimizing processes, it can play a decisive roleemissions and the consumption of energy, water, and raw

materials. Our products, services, and solutions demonstrate
how technology advances sustainability and is helping shape
the world we want to live in.

SIEMENS SUSTAINABILIT Y REPORT 2023

17

in reducing environmental impacts.

1.3 Strategy

Scaling sustainability impact
These megatrends and their impacts are reshaping the needs

Supporting our customers in their sustainability
transformationof our customers and markets. To create a holistic picture ofSiemens’ business is focused on enabling customers topotential futures, we execute sustainability scenario analyses

achieve a positive sustainability impact along the followingthat enable us to map impacts and risks, identify opportunities,

value propositions:and find new ways to create value through pathways by
2030 and 2040. Strategic insights are derived from scientific

Decarbonization & energy efficiency

frameworks like the Intergovernmental Panel on Climate

We support our customers with their efforts to decarbonize

Change’s (IPCC) Representative Concentration Pathways

their infrastructure and operations, drive energy-efficiency,(RCPs) and Shared Socioeconomic Pathways (SSPs) as well as

and future-proof entire industries. We do this by offering

market trends and expert knowledge. The sustainability

products, systems, solutions, and services that are based on

scenarios illustrate different possible development pathways

our strategic focus on digitalization, electrification, andfor the global economy and Siemens’ operating environment

automation. For example, our energy-efficient products andacross the focus topics climate, circularity, biodiversity, andsolutions support the transition from fossil fuels to renew-

society that take into account both an organized 1.5°C and aable energy sources, and our electrification solutions enabledisorganized 3°C pathway. These scenarios guide the devel-

renewable grid integration and the electrification of heat

opment of our sustainability strategy.

and hydrogen. Across industries, we offer energy optimization and carbon footprint management throughout our

To further increase our positive impact, we believe that

products’ lifecycles and supply chains. In buildings, we offer

working in ecosystems is the best way to jointly create seam-energy efficiency and decarbonization solutions, such asless solutions for our customers and their specific challenges.

smart buildings and smart energy management for a reducedThis approach increases our own sustainable offerings andcarbon footprint. Our rail systems offer low-carbon mobility

solutions and facilitates our customers’ sustainability trans-

and increased energy efficiency.

formation. Our commitment to sustainability covers theentire value chain. Based on our strategic priority to produce

Resource efficiency & circularity

purpose-driven technology, we strive to create a positive

Through their use of our digital technology, our customers

long-term impact for our customers with our products across

can achieve resource efficiency and profitability. For

our operations and through connected ecosystems.

instance, we harness digitalization to reduce the requirements of physical assets and resources. We combine the real
and the digital worlds with our digital twin technology, avirtual representation of a physical product or process that isused to simulate, predict, and optimize its physical counterpart. Digital twins enable users to do more with fewer
resources and make current and future environmental footprints transparent. Our building solutions also contribute to
optimized space utilization and ultimately increase resource
efficiency. Our mobility solutions focus on enhanced network
capacity and extended lifecycles.

SIEMENS SUSTAINABILIT Y REPORT 2023

18

1.3 Strategy

People centricity & societal impact

Social: Equity, Employability

We enable our partners and customers to improve people’s

Equal treatment and respect are the core of our corporate

lives today and transform the backbone of societies for avalues. Our goal is to position Siemens as the inclusive

better tomorrow. For instance, our technologies support theemployer of choice in all our relevant talent markets. We

well-being, productivity, safety, and security of building

foster diversity, equity, inclusion, and community develop-

tenants and operators. Similarly, in the field of mobility,

ment in order to create a sense of belonging and a healthy

passengers and operators benefit from greater safety andand safe environment where all our people can give theirconvenience thanks to our technologies. They also promote

best. At Siemens, we invest in the education, development,

the socioeconomic development of communities by enablingand individual growth of our people. We maintain a strong

access to basic goods, resilient electric power, affordable real

focus on digital learning, employee assistance programs,

estate, food and water, healthcare, education, and public

and occupational health and safety.

transportation.

DEGREE: High ambitions for sustainability

Governance: Ethics, Governance
At Siemens, we believe that the way we do business is as

Sustainability is integral to our business and influences

important as our business success. Our values and ethicaleverything we do. The DEGREE sustainability framework

principles are embedded in our Business Conduct Guidelines,

defines our comprehensive approach to sustainability. Acrosswhich are mandatory throughout the company. In addition

six fields of action, the framework defines clear priorities forto embedding these principles in our own management

us in key sustainability areas that we drive in our own oper-

systems, we extend them to our suppliers who are required

ations and in collaboration with our partners, suppliers, andto follow a comprehensive Code of Conduct. Beyond that,

customers. We continuously develop these priorities andwe have made sustainability criteria an integral part of ourambitions while fully integrating the expectations of all our

long-term variable compensation programs1 for both thestakeholders. The fields of action are defined along theManaging Board and our senior management.2

dimensions of Environment, Social, and Governance:
The DEGREE sustainability framework applies to Siemens AG
Environment: Decarbonization, Resource efficiency

apart from Siemens Healthineers (SHS), which is an indepen-

As part of DEGREE, we have set high ambitions to signifi-

dent stock-listed company. In its sustainability concept, SHS

cantly reduce CO2e emissions in Siemens’ operations andpursues the same values as Siemens AG, because they repre-

upstream supply chain. Our approach to resource efficiency

sent our expectations as the majority shareholder. SHS’s own

accelerates recycling and promotes a more circular business.

sustainability approach is described in a dedicated report.

Our software and simulations reduce the use of substances

OUR DEGREE SUSTAINABILIT Y FRAMEWORKof concern and other resource usage and introduce recycledmaterials as early as the design and simulation phases of our
products, factories, and solutions. In addition, we promote
the decoupling of natural resource consumption from economic growth by increasing the amount of secondary
materials that we purchase.

1

2
SIEMENS SUSTAINABILIT Y REPORT 2023

19

Assessment based on the Siemens internal ESG/sustainability index, which is basedon customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning
hours.
Siemens without SHS.

Pages 20 – 30

Our sustainability
management

SIEMENS SUSTAINABILIT Y REPORT 2023

20

2.1 Materiality assessment

2.1

Materiality assessment– Materiality assessment based on GRI 2021

– 15 material sustainability topics of the greatest­relevance to Siemens– Material impacts, risks, and opportunities as part

Identifying and prioritizing the topics
In 2023, Siemens conducted internal workshops to help
identify our material topics by assessing their impacts, risks,and opportunities from two different perspectives:of our strategic considerations→ Inside-out perspective:

Key topics as guiding principles
Our materiality assessment is based on external frameworks

Siemens took a closer look at its positive and negative
impacts on the environment and society (inside-out) causedby the company’s business activities.

like the UN Global Compact and the Standards of the Global
Reporting Initiative (GRI 2021), which are the foundation forDuring the inside-out assessment, we identified actual andour reporting. The key topics covered in this report are struc-potential positive and negative impacts for 17 sustainability

tured based on ESG.

topics and evaluated them according to their likelihood andtheir severity. Based on evaluations of the individual impacts,

Materiality assessment

our material topics were derived. These topics are the foun-

We updated our materiality assessment with an emphasis

dation for determining the content of the GRI report. Including

on our industrial businesses Digital Industries, Smart Infra-

the outside-in perspective (see below) does not alter the

structure, and Mobility in fiscal 2023 based on the GRI 2021

results.

standards. Our aim was to identify our company’s key economic, ecological, and social impacts on the environment

The material topics where Siemens can exert the greatest

and society in accordance with the updated GRI Standards.

influence on society and the environment are climate action,

The resulting topics also align with Siemens Healthineers’social and ecological standards in the supply chain, and(SHS) material topics, which were determined in an indepen-­sustainable product design and lifecycle management. These

dent materiality assessment.

topics received the highest scores in this year’s analysis.

The material topics form the framework for implementing→ Outside-in perspective:

sustainability in the company – at the central corporate

The outside-in perspective refers to sustainability topics thatlevel, in our business units, and in the countries. Siemens

can be associated with opportunities and risks for the

strives to continuously improve sustainability management­c ompany’s business activities or financial situation. Thisand understands the materiality assessment to be a prereq-

perspective was taken into account in the inside-out per-uisite for identifying and managing potential opportunities

spective in order to introduce the double materiality principle

and risks. The Siemens business units derive their key actionof future regulation.

areas from the requirements and basic conditions of their
The material sustainability topics with the highest degree of

local markets.

influence on our business activities and the generation oflasting value are climate protection and sustainable productdesign and lifecycle management.

SIEMENS SUSTAINABILIT Y REPORT 2023

21

2.1 Materiality assessment

Result of the materiality assessment

and “Innovation and business model” were merged into one

We identified 15 material sustainability topics of the greatest

combined topic, “Innovation and business model.”relevance to Siemens from both perspectives. “Waste andhazardous substance management” and “Employee develop-

The alignment of our material sustainability topics with thement” were determined in fiscal 2023 to be two additional

GRI framework and the SDGs can be found here:material topics. The two topics “Responsible governance”

ANNEX GRI INDEX,ANNEX SUSTAINABLE DEVELOPMENT GOALS

Siemens’ material sustainability topics are clearly linked to the United Nations’ Sustainability Development Goals (SDGs).
They also serve as the basis for our considerations related to the DEGREE sustainability framework as well as our overall­portfolio strategy and customer considerations. STRATEGY
Sustainability topics

SDGs

Climate action

1

DEGREED ECARBONIZATION

Innovation and business model

D ECARBONIZATIONR ESOURCE EFFICIENCYG OVERNANCE

Cybersecurity and data management

E THICS

Social and ecological standards in the supply chain

G OVERNANCE

Corporate governance and sustainability leadership

G OVERNANCE

Partner management and collaboration

G OVERNANCED ECARBONIZATIONESG risk management

G OVERNANCE
E THICS

Compliance management

G OVERNANCE
E THICS

Sustainable product design and lifecycle management

R ESOURCE EFFICIENCY

Waste and hazardous substance management

R ESOURCE EFFICIENCY

1

Sustainable handling of natural resources andmaterial efficiency

R ESOURCE EFFICIENCYDiversity, equity, and inclusion

E QUIT Y

Future of work

E QUIT Y
E MPLOYABILIT Y

Employee development

E QUIT Y
E MPLOYABILIT Y

Employee health and safety

1

E MPLOYABILIT Y

Top 2 material sustainability topics.

SIEMENS SUSTAINABILIT Y REPORT 2023

22

2.2 Sustainability governance and organization

2.2

Sustainability governance and organization– Responsibility for sustainability at Siemens lies

Supervisory Board meets regularly to discuss business devel-with the Managing Board and Chief Sustainability

opment, planning, strategy, and the implementation of that

Officer, supported by the Siemens Sustainability

strategy.

Board– The Sustainability Executive Committee is ourMore detailed information on the structure and responsibilities

guidance body for Siemens’ sustainability businessof the Managing Board and Supervisory Board can be foundwith a focus on portfolios, market segments, andin thego-to-market topics­M ANAGEMENT REPORT, CORPORATE GOVERNANCE STATEMENT– ESG criteria are included in the compensation­system for members of the Managing Board andsenior managers

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED

Clear organizational structure andresponsibilities
In 2023, we significantly strengthened our sustainability
organization throughout the company by introducing the

At Siemens, sustainability is rooted in all that we do, includ-

Sustainability Executive Committee (EC SUS) and Heads ofing our business purpose and strategy, corporate culture,

Sustainability in key businesses and business units, and we

processes, and guidelines. The management of sustainability

increased the responsibility of the Global Head of Sustain-

matters is embedded across our Siemens businesses, Service

ability (Global Head of SUS) and the Siemens Sustainability

and Governance units, and countries. Sustainability has also

department.

been an integral component of management compensation
since fiscal 2020. Put simply, we strive to make sustainability

The Managing Board addresses sustainability-related risks

everyone’s responsibility at Siemens.

and opportunities of strategic and company-wide impor-

Foundation: Corporate governanceWe believe that compliance with recognized principles oftance and adopts appropriate measures. The Managing
Board also approves any changes to the DEGREE sustainability
framework.

corporate governance is the cornerstone of sustainability-­
based corporate management. Siemens AG is governed by

The Siemens Sustainability Board (SSB) monitors andGerman corporate law, under which it has a two-tier board

resolves Siemens’ sustainability topics, including tracking

structure consisting of a Managing Board and a Supervisory

the progress of our DEGREE ambition, providing input andBoard.

guidance on sustainability reporting, and acting as a catalyst
for regional sustainability initiatives with the potential to

As the top management body, the Managing Board isscale across Siemens. The SSB is composed of representa-

responsible for serving the company’s best interests and fortives from Siemens’ businesses, countries, and Service andachieving sustainable growth in company value. The Managing

Governance units. The SSB meets four times per year or

Board members are responsible for the entire management

more frequently as needed. The SSB provides updates andof the company and decide on key issues of business policy

recommendations to the Managing Board.

and corporate strategy.
The Sustainability Executive Committee (EC SUS) acts as
The Supervisory Board oversees and advises the Managing

guidance body for Siemens sustainability business – theBoard in its management of the company’s business. The

Siemens portfolio that enables positive sustainability impact

SIEMENS SUSTAINABILIT Y REPORT 2023

23

2.2 Sustainability governance and organization

by addressing and financing (i) decarbonization and energy

ations for the Siemens sustainability business in alignment

efficiency, (ii) resource efficiency and circularity as well aswith the Managing Board, EC SUS, and the CEOs.

(iii) people centricity and social impact – with a focus on
portfolio market segments and go-to-market topics, and it

CEOs are ultimately responsible for all sustainability topics inmeets on an ad hoc basis to discuss relevant subjects.

their area of responsibility. This includes responsibility for

Chaired by Siemens’ CEO, the EC SUS includes Siemens’ Chiefthe sustainability business, implementation of DEGREE,

Sustainability Officer, the CEOs of key businesses, Chiefsustainability reporting, the Sustainability Risk Due Diligence

Strategy Officer, General Counsel, and Global Head of SUS.

Process, and other related responsibilities.

The Chief Sustainability Officer (CSO) oversees Siemens’

The CEOs of Digital Industries, Smart Infrastructure, Siemenssustainability topics. The CSO is a member of the Siemens

Mobility, and Siemens Financial Services (SFS) are supported

Managing Board, chairs the Siemens Sustainability Boardby their respective Heads of SUS to achieve their sustainability(SSB), and is a member of the Sustainability Executive Com-

mandates. The Heads of SUS also assist the Global Head ofmittee (EC SUS). The CSO is also responsible for the Siemens

SUS with their responsibilities in the Sustainability depart-

Sustainability department.

ment, as they pertain to their businesses. Heads of SUS havea governance reporting line to the Global Head of SUS in

The Global Head of Sustainability (Global Head of SUS) leads

addition to their reporting line to their respective CEOs. The

the Siemens Sustainability department. In this capacity, theHeads of SUS are appointed by the respective CEOs, in align-

Global Head of SUS reports to the CSO on all Siemens sus-

ment with the Global Head of SUS.

tainability topics excluding sustainability business andrelated strategy topics. For the latter topics, the Global Head

In addition, the CEOs of the business units in Digital Indus-of SUS reports to Siemens’ CEO. The Global Head of SUS is atries, Smart Infrastructure, Siemens Mobility, and SFS eachregular member of the SSB. The Global Head of SUS regularly

appoint Sustainability Managers who have a governanceinforms the Supervisory Board on sustainability matters.

reporting line to the Heads of SUS and to their reporting line
to their respective CEOs.

The Siemens Sustainability department is responsible fordeveloping our DEGREE sustainability framework in coordi-

Lead Country SUS Managers support their respective Leadnation with the SSB, businesses, Service and GovernanceCountry CEOs and their assigned countries. They also lead

units, and countries and controlling the DEGREE target

Siemens’ sustainability topics within the scope of responsi-

achievements. Responsibility for sustainability reporting andbility of the Lead Country management.

the Net Zero Operations Program1 also lies with the Sustainability department. It also governs the purchase of carbon

Our Service and Governance units are responsible for theoffsets and the Sustainability Risk Due Diligence Process2.

ongoing development of sustainability-related topics within

The Sustainability department also supports sustainability

their own mandate in line with the DEGREE sustainability

initiatives with scalability across Siemens. This includes

framework and regulatory and organizational requirements.

developing the processes, training, and tools needed toaddress overarching sustainability topics for our countries,

Lastly, Sustainability Risk Due Diligence Subject Matterbusinesses, and Service and Governance units in collaboration

Experts are appointed by and support Digital Industries,

with other Siemens organizations. Finally, the Sustainability

Smart Infrastructure, Siemens Mobility, and SFS to responsibly

department is responsible for developing strategic consider-conduct the Sustainability Risk Due Diligence Process.

1

2

Siemens has established the Net Zero Operations Program, which is comprised of aseries of greenhouse gas (GHG) emission reduction initiatives targeting real estate,production, our vehicle fleet, and related topics to address our commitment to GHG
reduction under the DEGREE ambition “Net Zero Operations by 2030.” For moredetails, see chapter 4.1 Climate action.
Siemens has established the Sustainability Risk Due Diligence Process to ensurethat environmental, social, and associated human rights and reputational risks­(Sustainability Risks) are appropriately assessed and mitigated. The Sustainability
department, as the governance owner, has established minimum company-widestandards for the Sustainability Risk Due Diligence Process in our customer-related
business that are applicable to the businesses and SFS.

SIEMENS SUSTAINABILIT Y REPORT 2023

24

2.2 Sustainability governance and organization

CEOs in businesses and lead countries are responsible for anchoring sustainability in their organizations
Overview of roles and responsibilities
Supervisory Board

Managing Board incl. Chief Sustainability Officer

Sustainability Executive Committee

Siemens Sustainability Board

Sustainability Organization incl. Global Head of Sustainability
Business and SFS
Service & Governance units
Countries

Sustainability reflected in managementcompensation
The current compensation system for the members of theManaging Board of Siemens AG has been in place since fiscal
2020. It incorporates long-term performance incentives

G overnance

Progress on DEGREE ambition #5:
Long-term incentives based on ESG criteria

based on ESG criteria and is defined under the field of action

Siemens grants long-term variable compensation in the

Governance in our DEGREE sustainability framework. We

form of Stock Awards. Long-term variable compensationassess the Managing Board’s performance against Siemens’

represents at least 30% and at most 42% of total target

internal ESG/Sustainability index. Targets include CO2e

compensation. Since fiscal 2020, allocated Stock Awards

emissions, digital learning hours, and the Net Promoter­

depend on a comparison of total shareholder return

Score (NPS) for measuring customer satisfaction. Additional(TSR) with an international sector index (the MSCI World

sustainability matters are also defined as individual targets

Industrials Index) and on an internal ESG/Sustainability

for short-term variable compensation (bonuses).

index, weighted at 20%, with three equally weighted

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENT

indicators. The ESG indicators reflect relevant strategic
and socio-political topics. For the Stock Awards Tranche

REPORT, COMPENSATION REPORT 2023

2023, which was awarded in November 2022, these
indicators include CO2e emissions, digital learning
hours, and the Net Promoter Score (NPS) for measuring

customer satisfaction. These criteria are applicable toManaging Board members of Siemens AG and all senior
managers globally who are eligible for Stock Awards.
Progress
ESG criteria anchored
Siemens without SHS

SIEMENS SUSTAINABILIT Y REPORT 2023

25

2.3 Partnerships and collaborations for sustainability

2.3

Partnerships and collaborations
for sustainability– Close collaborations with our stakeholders

non-financial reporting legislation, trade policy, and con-– Partnerships are key to long-term sustainable

nected and automated mobility for rail and road.

­business success– Siemens is an active member of numerous business

Our political involvement is guided by strong principles:

associations and organizations→ We are politically neutral and take a zero-tolerance
approach to corruption, violations of fair competition
Siemens operates in nearly every country in the world. We
work with our customers to find innovative solutions tosome of the world’s most pressing issues. We believe thatprinciples, and other breaches of applicable law andinternal regulations.
→ Siemens does not make political donations or contributions

close collaboration with our stakeholders enables us to maketo politicians, political parties, or political organizations.

serious progress on complex sustainability challenges. We→ Any contributions that support purely political purposes

maintain a consistent dialog with all our stakeholders,or the representation of political interests – for example,

including customers, investors, suppliers, our people,

election events for political campaigns – are prohibited bycommunities, policymakers, media, non-governmental­

our internal guidelines.

organizations, business organizations, and academia. In
addition, our DEGREE sustainability framework is also based

Engagement in associations and organizations

on a 360-degree stakeholder approach.

Siemens is a member of numerous business associations andIn dialog with politics and society
Our Managing Board, CEOs, and governance departments inother organizations, some of which advocate for their members’ interests in the political arena. Selected examples ofthe most important memberships are:our business units oversee stakeholder engagement. The
overall responsibility for Siemens’ dialog with policymakers→ The International Chamber of Commerce (ICC)

lies with our Managing Board, which has given the Govern-→ The German Mechanical Engineering Industry Association

ment Affairs department a mandate for company-wide
coordination tasks and the corresponding governanceresponsibilities. Within the business units, the unit’s CEO is
responsible for a coordinated dialog with the policymakers.

(VDMA)→ The German Electrical and Electronic Manufacturers’
Association (ZVEI)→ The European Round Table for Industry (ERT)→ The U.S. Chamber of Commerce

The way that regulations and legislation are shaped has in→ The European Chamber of Commerce in China (EUCCC)

many cases impacted Siemens and our products and solutions. Therefore, we believe that maintaining an ongoingMore information on political activities at Siemens can bedialog with political decision-makers is crucial for our

found on our

GOVERNMENT AFFAIRS website.

­company’s success and for our commitment to sustainability.
We have joined forces with leading companies from aroundWe prioritize our activities based on our business strategies

the world to establish the Charter of Trust, which aims toand innovation fields. As a result, our advocacy activities

make the digital world safer and more secure.

focus on but are not limited to the following topics: cyber­security, digitalization, climate protection, energy, R&D,

SIEMENS SUSTAINABILIT Y REPORT 2023

26

WWW.CHARTEROFTRUST.COM

2.3 Partnerships and collaborations for sustainability

We also support the goal of achieving a carbon-neutral

have also joined the World Bank’s Carbon Pricing Leadership

Europe by 2050, which was announced as part of the Euro-

Coalition (CPLC), and we advocate for the global introduction

pean Green Deal. We will achieve this through a variety ofof carbon pricing. We are likewise committed to the UNGC

commitments, including our active memberships in the

Women’s Empowerment Principles and have signed the

EUROPEAN ALLIANCE TO SAVE ENERGY and the

EUROPEAN GREEN

Diversity Charter, an initiative by the German government.

DIGITAL COALITION .

For over ten years we have supported One Young World
We work closely with the Organization for Economic Cooper-(OYW), a non-profit organization that supports young busi-

ation and Development (OECD), the United Nations (UN),ness leaders around the globe to build a better world with

the European Union, and the World Economic Forum (WEF).

more responsible, more effective leadership. At the 2023

Siemens participates in a number of WEF initiatives, including

OYW Summit in Belfast, we championed this event by send-

the WEF CEO Climate Leaders Coalition. We also cooperate

ing more than 45 of our Siemens colleagues to participate.

with the United Nations, for instance, as part of our commitment to the Ten Principles of the United Nations Global

Siemens collaborates with numerous partners globally

Compact (UNGC). On several environmental issues, we support

across the topics of decarbonization and energy efficiency,

the United Nations Framework Convention on Climate

resource efficiency and circularity, and people-centricity andChange (UNFCCC) and the UN Climate Change Conferences,

societal impact. Our selected strategic sustainability partner-

and we are actively involved in the CEO Water Mandate. We

ships are listed below.

Partnership organization

Description

Decarbonization and energy efficiency
The Climate Group→ EV100→ EP100→ RE100

The EV100 initiative expedites the shift to electric vehicles (EVs). Siemens intends for EVs to account for
100% of its fleet by 2030. We are also investing in the establishment of charging infrastructure in thesame timeframe.
EP100 brings together over 125 ambitious businesses committed to improving energy efficiency. Siemens
is committed to owning only assets that are Net Zero carbon in operation and occupying only assets thatare Net Zero carbon in operation by 2030.
RE100 unites hundreds of ambitious companies committed to 100% renewable electricity. Siemens is­committed to reaching this target by 2030.

United Nations→ Conference of the Parties (COP)→ Global Compact (UNGC) Working
Group on Climate

The United Nations Conference of Parties (COP) is the world’s highest decision-making body on climate
issues. COP connects stakeholders from politics, society, and business for discussions about the global path
to Net Zero. COP provides a unique opportunity to showcase Siemens as a multiplier of change thatempowers customers and societies to drive their sustainability transformation. The 28th session of the
COP was held in Dubai, UAE in 2023.
The United Nations Global Compact (UNGC) is the world’s largest corporate sustainability initiative. It calls
for companies to align their strategies and operations with universal principles on human rights, labor,
environment, and anti-corruption. Siemens is active in the UNGC’s Working Group on Climate.

U.S. Department of Energy (DOE)
Better Buildings initiative

Better Buildings is an Initiative of the U.S. Department of Energy (DOE) that is designed to improve thelives of the American people by driving leadership in energy innovation. Siemens is an active participant in
the initiative’s Better Climate Challenge.

The World Bank Carbon Pricing
Leadership Coalition (CPLC)The Carbon Pricing Leadership Coalition (CPLC) brings together leaders from government, the private­sector, academia, and civil society to expand the use of carbon pricing policies. Siemens is a member ofthe coalition and actively advocates for the global introduction of carbon pricing.

The World Economic Forum (WEF)→ Alliance for Clean Air→ Alliance of CEO Climate Leaders→ ESG Practitioners

The World Economic Forum (WEF) is the international organization for public-private cooperation. Siemens
is a founding member of the WEF Alliance for Clean Air, which brings together business leaders to measure
and reduce value chain air pollutant emissions, invest in innovation, and work with policy­makers andpeers to champion the social, economic, and climate benefits of tackling air pollution.
The WEF Alliance of CEO Climate Leaders is a CEO-led community committed to defining bold climate
goals and accelerating the Net Zero transition by setting science-based targets, disclosing emissions, andcatalyzing decarbonization and partnerships across global value chains.
The WEF ESG Practitioners help implement the recommendations from the WEF Stakeholder Capitalism
Metrics in reports.

SIEMENS SUSTAINABILIT Y REPORT 2023

27

2.3 Partnerships and collaborations for sustainability

Partnership organization

Description

Resource efficiency and circularity
The European Union (EU) Businessand Biodiversity Platform

The EU Business and Biodiversity Platform provides a unique forum for dialog and a policy interface for­discussing the links between business and biodiversity at the EU level. Siemens is an active member of the
Platform.

The European Union (EU) Circular
Plastics Alliance Declaration

The EU Circular Plastics Alliance aims to boost the EU market for recycled plastics. The Alliance covers thefull plastics value chain and includes over 330 organizations representing industry, academia, and publicauthorities. Siemens is an active member of the Alliance.

The Federation of German Industries(BDI) Circular Economy Initiative

The BDI Circular Economy Initiative is a network of about 60 organizations across the entire industrial­spectrum. Siemens is a founding member of the Circular Economy Initiative.

Responsible Minerals Initiative(RMI)

The Responsible Minerals Initiative (RMI) is one of the most utilized and respected resources used by­companies in a variety of industries for addressing responsible minerals sourcing issues in their supply
chains. Siemens is an active member of RMI and is involved in advancing the topic of responsible minerals
sourcing at Siemens.

People-centricity and societal impact
The European Union (EU) Agency for EU-OSHA is the EU’s information agency overseeing occupational safety and health at work. Siemens is a
Safety and Health at Work (OSHA)
partner of the EU-OSHA Healthy Workplaces Campaign and is committed to championing safe and healthy
work in the digital age.
Global Business Initiative (GBI) on
Human Rights

The Global Business Initiative (GBI) works to shape practices, inspire commitment, and build the capability
for implementing respect for human rights, in line with the UN Guiding Principles on Business and Human
Rights. Siemens is an active member of the Initiative.

The International Organisation of
Employers (IOE) Global Occupationaland Health Network (GOSH)

The IOE GOSH is a network of more than 150 member organizations focused on improving occupational
health and safety, providing forums to identify and, discuss emerging trends and international best practices.
Siemens is an active member of the Network.

One Young World (OYW)One Young World (OYW) is a non-profit organization that empowers and develops young leaders to build afair, sustainable future for all. Siemens has been an active partner of OYW for over a decade, with over 500
Siemens delegates having participated the annual OYW Summits since they began.

United Nations Global Compact(UNGC) European Working Group on
Business and Human Rights

The United Nations Global Compact (UNGC) is the world’s largest corporate sustainability initiative. It calls
for companies to align their strategies and operations with universal principles on human rights, labor,
environment, and anti-corruption. Siemens is a member of the European Working Group on Business andHuman Rights.

G7 and the International Labour
Organization (ILO) Vision Zero Fund

The Vision Zero Fund is an initiative of the G7 countries aimed at preventing work-related deaths, injuries,
and disease in sectors operating in or aspiring to join global supply chains. The ILO administers and implements the fund’s projects. Siemens was the first private sector donor to join the fund.

The World Economic Forum (WEF)
Chief Health Officer Group

The World Economic Forum (WEF) is the international organization for public-private cooperation. Siemens
is an active member of the WEF Chief Health Officer Group, which works to advance the overall well-beingof the workforce.

Support for non-profit organizations
that promote business integrity
and the fight against corruption
worldwide

So far we have allocated about US$120 million to 85 projects in more than 50 countries across all f­ unding
rounds. Information is available on the INTEGRIT Y INITIATIVE WEBSITE and the SIEMENS INTEGRIT Y
INITIATIVE REPORT 2022 .

Cross-topic partnerships
The Conference Board (TCB)The Conference Board (TCB) is a non-profit corporate membership and research organization that organizes
conferences and peer learning groups, conducts economic and business research, and publishes economic
indicators. Siemens is active in multiple TCB Councils on topics like corporate sustainability, the environment,
and well-being.

econsense

Econsense is a German economic sustainability network whose members’ objective is to actively shape thetransition to a more sustainable economy.​Siemens is a founding member of econsense, member of theBoard of Trustees and the Executive Board, and an active participant in working groups on Environment,
Climate, Disclosure and Reporting, Business and Human Rights, and Human Rights in the Supply Chain.

The World Business Council for
Sustainable Development (WBCSD)

The World Business Council for Sustainable Development (WBCSD) is a community of over 200 leadingorganizations that are working together to take action to limit the climate crisis, restore nature, and tackle
inequality. Siemens has actively participated in a number of workstreams, including those focused on­carbon accounting and reduction and the sustainable built environment.

SIEMENS SUSTAINABILIT Y REPORT 2023

28

2.4 Sustainability ratings reflect our performance

2.4

Sustainability ratings reflect our performance– Our engagement is recognized in a number of ratings

status and a B rating, the best rating in our industry (Industrial– These ratings help us continuously improve ourConglomerates). Prime status recognizes companies forsustainability performance– They also strengthen the comparability and trans­

being one of the leaders in their respective industry.

parency of our sustainability performance for our

Sustainalytics

customers and investors

Sustainalytics’ ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a

Our approach to ESG ratingscompany is managing those risks. In 2023, we were once
again rated as one of the leading companies in our industry

We are proud that our commitment to sustainability and our(Industrial Conglomerates) with a risk rating of 28.4 points

efforts are reflected in our public assessments and ratings.

(Medium Risk).

Siemens actively participates in several sustainability ratings
to provide our capital markets and our customers with robust

S&P Global Corporate Sustainability Assessment (CSA)/

information and support the comparability and transparency

Dow Jones Sustainability Index (DJSI)of our sustainability performance. Ratings also give us

The S&P Global CSA is an annual evaluation of companies’

important insights that assist in our continuous improvement.

sustainability practices. The CSA focuses on sustainability

We focus primarily on the six ratings summarized below.

criteria that are both industry-specific and financially material.
In fiscal 2023, Siemens again ranks second among ourSiemens continues to achieve strong results in externalindustry peers (Industrial Conglomerates) with a score of­sustainability ratings in fiscal 2023, confirming our leading

81/100. Siemens has been listed in the Dow Jones Sustain-

position in the industry.

ability World Index (DJSI World) for over 20 years.

ESG ratings in fiscal 2023

EcoVadis

MSCI

EcoVadis provides supplier sustainability ratings for global

The MSCI ESG Rating scores global companies on a scale ofsupply chains. Siemens received 77 points on its scorecard in

AAA (leader) to CCC (laggard) based on exposure to industry-­2023, placing it among the top 1% of all companies assessed

specific ESG risks and the ability to manage those risks rela-by EcoVadis in our industry. Thanks to this rating, Siemens istive to peers. In fiscal 2023, Siemens was given an overall

being awarded the EcoVadis Gold medal.

MSCI ESG rating score of AA. In addition, Siemens is a member
CDPof the MSCI World ESG Index.

CDP is a not-for-profit charity that runs a global disclosure
ISS ESGsystem that helps investors, companies, cities, states, and

The ISS ESG Corporate Rating evaluates companies’ ESG-­ regions manage their environmental impacts. In the mostrelated risks, opportunities, and impacts along the corporate

recent CDP Climate Change Rating, Siemens’ climate efforts

value chain. Companies are rated from D- to A+ on theircontinue to be recognized with the rating score A-, whichsustainability performance based on an absolute best-in-

maintains its position at the Leadership Level of the CDP

class standard. For ISS ESG, Siemens again received prime

rating.

SIEMENS SUSTAINABILIT Y REPORT 2023

29

2.4 Sustainability ratings reflect our performance

Siemens’ sustainability performance has received high recognition in external ratings
External
sustainability
ratings
Latest Siemens
score

AA

B-

28.4

81/10077

A-

Siemens
industry rank

Leader

1st in our industry

Top 15%

Top 1%

Top 1%Top in industry(industry
average C-)

Progress fromprevious
assessment

Unchanged

Unchanged

Improvementof 1.7 points

Unchanged+7 points

Unchanged

Leader (AAA/AA)
for 7 years

Prime status

Strong “Carbon –­Products andServices” risk
management

Over 20 years in
the World Index

Gold medal

Over 10 years
at leadershiplevel (A/A-) for
Climate Change

Highlights

Siemens has also satisfied the requirements to be included in several additional ESG stock market indices
Additional
ESG indices

Included in the
FTSE4Good Index Series

SIEMENS SUSTAINABILIT Y REPORT 2023

30

Included in theEuronext Vigeo Euro 120 Index

Pages 31 – 53

Governance
Responsible Business
Practices

EthicsGovernanceFoster a culture of trust, adhere to ethical standards,

Apply state-of-the-art systems for effective andand handle data with care

responsible business conduct

Our key ambitions1

Our key ambitions1→ Striving to train 100% of our people on Siemens’→ ESG-secured supply chain based on supplier

Business Conduct Guidelines every three years­commitment to the Supplier Code of Conduct→ Long-term incentives based on ESG criteria2

Additional highlights:→ Zero-tolerance approach to breaches of applicable

Additional highlights

laws and our own internal guidelines→ Focus on human rights within supply chain: climate→ A global, risk-based compliance system

protection, occupational safety, and responsible→ Aiming for a leading role in cybersecurity

sourcing of minerals→ Comprehensive environmental and social due­diligence in customer business (ESG Radar)

12

Siemens without SHS.
Assessment based on the Siemens internal ESG/sustainability index, which is based on customer satisfaction (Net Promoter Score), CO2 reduction, and digitallearning hours.

SIEMENS SUSTAINABILIT Y REPORT 2023

31

3.1 Compliance and ethics

3.1

Compliance and ethics– Zero-tolerance approach to breaches of applicablelaws and our internal guidelines– A global, risk-based compliance system– Ethics and integrity are the basis for sustainablebusiness practices

Our Compliance governance and policies
The Siemens Compliance organization oversees our compliance system and is chaired by our Chief Compliance Officer,
who is responsible for all legal and operational aspects ofcompliance. The Compliance organization is part of Siemens
global Legal and Compliance department. It is led by theGeneral Counsel, who reports directly to our President andManagement approachCEO.

Operating with integrity and in compliance with laws andregulation is fundamental to stakeholder trust and our com-Siemens Chief Compliance Officer reports directly topany’s continued success. Siemens and its roughly 320,000

Siemens’ CEO on functional matters, in addition to reporting

employees operate in multiple countries around the world.

to the Managing Board and the Siemens AG Supervisory

Our customers in both the private and public sectors serve a

Board on a quarterly and ad-hoc basis.

vast array of industries. Our global business operations aregoverned by numerous national legal systems and take place

Compliance Officers in the business ensure that our Compli-

in a variety of political, social, and cultural settings that areance system is implemented worldwide. They work closely

constantly changing. Therefore, Siemens’ business andwith employees and managers, who assume personal

compliance environment is correspondingly complex.

responsibility for compliance in their respective business
units.

The way that Siemens and our partners do business impacts
the markets and societies where we operate. Unethical andWe believe that it is necessary for the entire management

unlawful conduct like corruption, cartel arrangements, andteam to act on our commitment to compliance and ensure

money laundering can distort competition, hinder economic

that all business decisions and transactions that fall withindevelopment, and threaten human rights and democracy. As

their area of responsibility comply with both the relevant

a global player, Siemens is responsible for setting an example

legal requirements and our own values and company guide-in all its operations and in collaboration with all its stake-lines.

holders. By building alliances against corruption and promoting fair competition together with stakeholders fromAt Siemens, we take a zero-tolerance approach to corruption

politics, business, and society, Siemens can through Collec-

and other breaches of applicable laws and of our Businesstive Action help establish the conditions for fair competition

Conduct Guidelines (BCGs).

and thereby promote innovation.
Our BCGs contain the behavioral principles and rules that
Under certain circumstances, Siemens can be held liable for

guide our conduct, both within Siemens and in our stake-the illegal activities of third parties: for example, businessholder relationships. They also serve as an expression of ourpartners acting as suppliers, intermediaries, resellers, andvalues and lay the foundation for detailed internal regula-consortium partners. Transactions conducted by businesstions. The BCGs are binding for all Siemens employees

partners can be misused to gain undue advantages for thearound the world.

business partner or for Siemens.

SIEMENS SUSTAINABILIT Y REPORT 2023

32

3.1 Compliance and ethics

We also believe that acting on the basis of our Ethical Princi-

The Siemens compliance system

ples allows us to focus even more on responsible business

The goal of compliance at Siemens is to ensure that ourpractices. We aspire to support the sustainable development

worldwide business practices follow the applicable laws andof Siemens and the societies where we operate by adhering

comply with the BCGs. Our Compliance organization covers

to responsible business practices.

the following activity fields:

Worldwide commitment to fighting corruption→ Anti-corruption

In collaboration with other international and national orga-→ Anti-money laundering

nizations, we are committed to fighting corruption and→ Anti-trust­promoting fair competition in our markets and beyond.

→ Data privacy→ Human rights

This approach is also reflected in our Collective Action→ Export control­activities, which includes our commitment to:
HUMAN RIGHTSCYBERSECURIT Y AND DATA PRIVACY→ The United Nations Global Compact (UNGC)→ The World Economic Forum and its Partnering Against
Corruption Initiative (PACI)

To ensure compliance throughout the company, the Siemens
comprehensive compliance system is based on the three→ The United Nations Convention Against Corruption andpillars of prevention, detection, and response.

the Organization for Economic Cooperation and DevelopPreventive measures include compliance risk management,

ment (OECD)’s Anti-Bribery Convention→ The implementation of these conventions as part of­Business 20 (B20)

preparing topic-specific guidelines and procedures, incorporating compliance requirements into business processes, ourCollective Action activities, and providing comprehensive

The Ten Principles of the UN Global Compact, the OECD

training and advice to our people.

Guidelines for Multinational Enterprises, and other key
guidelines are embedded in our BCGs and provide a founda-

In addition, protected channels for reporting compliancetion and direction for all our activities.

violations like the “Tell Us” whistle-blower system, the

BUSINESS CONDUCT

Ombudsperson, and professional and fair investigations are

GUIDELINES“We help our customers andpartners around the world drive
their digital and sustainabletransformation. Without excuses or
exceptions, we always act ethically,legally, and with the highest
integrity.”
CEO Roland BuschSIEMENS SUSTAINABILIT Y REPORT 2023

33

indispensable for identifying and resolving matters of individual misconduct. Our reporting channels also allow ourpeople to submit reports anonymously.
We believe that transparent communication and clear consequences help reduce and resolve incidents of individual
misconduct. Our internal audit department also continuously
performs compliance controls and audits to ensure that ourcompliance system is put into action and meets our worldwide requirements.

3.1 Compliance and ethics

The Siemens compliance system
Prevent

Management
responsibility
Res
et

ec

nd

t

po
D

Activity fields
Anti-trust

Anti-Corruption

Anti-Money Laundering

Export Control

Data Privacy

Human Rights

Ethics management at Siemens

We are committed to fulfilling these requirements in all our

In our business activities, we are committed to going beyond

actions and decisions. In the complex environment of thelaws and regulations. Our BCGs define how we interpret our

global economy, “doing the right thing” is not always easy.

responsibility, what is expected of all employees, and how

Our new Siemens BCG training helps us to better assess

we act as a company.

­situations in our work environment and make the rightdecisions. We believe that by acting responsibly beyond laws

Our ethical principles have been integrated in the updated

and regulations, we can continue achieving Siemens’ successversion of our BCGs. Responsible business conduct with all

in collaboration with our business partners.

stakeholders and consistent consideration of Ethical Principles
are expected in our decisions and are becoming increasingly

Ethical standards for artificial intelligenceimportant in view of the many changes and challenges in the

Siemens prioritizes ethical standards and responsible busi-

world. Accordingly, we firmly anchored them in our BCGs:

ness conduct in the digital world; specifically, by protecting
data, mitigating biases, supporting data sovereignty, and→ We are honest and truthful in our dealings

ensuring trustworthy and responsible AI. We implement→ We respect the dignity, privacy, and inherent rights ofsafeguards for transparency, accountability, technicalindividuals

robustness, security, and safety while promoting fairness→ We protect the health, occupational safety, and personal
security of our people→ We act in line with our responsibility for the environment→ We engage with reputable and law-abiding partners→ We explore ethical concerns

SIEMENS SUSTAINABILIT Y REPORT 2023

34

and accessibility.

3.1 Compliance and ethics

Our commitment to ethical standards is demonstrated by

Both business partners and suppliers are required to sign a

integrating AI ethics into all our business processes, products,

code of conduct. In addition, depending on their risk classi-

and solutions. This includes:

fication, audits can be conducted on the business partners’
premises by the Siemens audit function or external service→ Applying generally accepted and trustworthy AI frameworks

providers.

SUSTAINABLE SUPPLY CHAIN PRACTICES

to AI tools in anticipation of the upcoming AI regulation
To support the compliance experts on business partner topics,in the EU.
→ Raising awareness and providing guidance to employees

Siemens established the Business Partners Network. Thisand stakeholders on ethical implications in AI decision-­

network operates in different workstreams, some of whichmaking.

are connected with specific projects and others that are
related to specific questions on the subject of collaboration

Collaboration with business partners

with business partners.

Each Siemens department is responsible for its own business
operational department and must undergo a risk-based

Preventing money laundering and terrorism
financingcompliance due diligence process. Business partners have to

Siemens strives to only maintain business relationships withbe adequately monitored for the duration of the business

reputable customers, suppliers, partners, and companies

relationship. This means that we regularly assess the need

whose business activities comply with legal requirements

for the continued relationship and provision of services,and whose financial resources are of legitimate origin. We

taking into account remuneration and other relevant circum-

use a risk-based approach to verify the identity and economic

stances.

background of customers, suppliers, business partners, andpartners. They must be carefully selected by the responsible

other third parties and the origin of payments to ensure they
We have established mandatory processes and the associ-come from legitimate sources. When necessary, Siemens

ated tools for this purpose that are continuously refined toreports suspicious activities to law enforcement authorities.

cover any risks that may arise.

Handling of compliance cases

Decisions about engaging a business partner are transparent

At Siemens, compliance cases are handled in accordance

and risk-oriented. They are also based on the most recent

with a clearly structured process that includes key steps suchcompliance due diligence procedures. Appropriate remediation

as reporting channels, internal investigations, and responses

measures are initiated depending on the risk classification of

to identified violations (see the diagram below).

the business relationship and the risks identified.

Company-wide process for handling compliance cases (simplified presentation)
Complianceinvestigation

Allegation received

Assessment
carried out by
examining or
evaluating theallegation before
mandating an
investigation

SIEMENS SUSTAINABILIT Y REPORT 2023

35

MandatingResearchand planning

Investigation

Preparation of
the investigation
reportDisciplinary
measures andremediation

3.1 Compliance and ethics

Siemens offers a range of reporting channels to enable allCompliance risk management

employees and outside third parties to flag potential compli-

To be effective, the Siemens compliance system needs to beance violations to the company. For instance, complaints cancontinuously adjusted in order to meet business-specific

be reported by way of the protected whistle-blower systemrisks and multiple local legal requirements. The findings“Tell Us” or to the independent Siemens Ombudsperson.

from compliance risk assessments, along with compliance

Reports received through these channels are forwarded tocontrols and audits, help us identify opportunities to further

our Compliance organization. Complaints can also be

develop the compliance system.

reported directly to the Compliance Officers in our business
units or to the senior management. Whistle-blowers at

The goal of compliance risk management is to detect compli-

Siemens are protected by national laws and also by internal

ance risks early and take appropriate steps to prevent orcompany regulations that prohibit the punishment or othermitigate risks. Risk assessments and tool solutions thatdetrimental treatment of anyone who reports a suspicious­support risk evaluations are also integrated into individual

activity in good faith.

business processes to support our employees in taking
appropriate risk mitigation steps.

Every complaint is taken seriously. If the allegations prove tobe sufficiently plausible, the Compliance organization deter-

Compliance risk management is an integral part of themines whether there is sufficient information to justify an­company-wide Siemens Enterprise Risk Management (ERM)internal investigation. Indications about other matters areprogramforwarded to the affected Siemens department or business

MANAGEMENT REPORT, 8.3.1 STRATEGIC RISKS ,unit for further action.

holistic view of all identified risks throughout the Group.

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED

which provides aEvery entity and region assesses their business risks in relaInternal investigations are conducted based on binding,tion to compliance risks. Current developments are also

clearly defined standards to ensure the fair and respectful

systematically evaluated.

treatment of employees. These standards prohibit unlawful
or disproportionate actions. However, if an internal investiga-

As a core part of our risk management process, we collabo-

tion leads to the finding that an employee has demonstrably

rate closely with relevant business units to identify andviolated any laws or internal regulations, they can expect

assess compliance risks within new digital business models.

appropriate disciplinary consequences.

Continuous Compliance Risk Management implements abottom-up evaluation of the local risk environment in eachAll circumstances within a compliance case, including theof Siemens’ entities on a worldwide basis in all activity fields

locally applicable legal environment and any participation

defined by Compliance. CEOs, business leaders, Compliancerights of the competent employee representative bodies, are

Officers, and experts from every entity meet during the fiscal

duly considered during the proceedings.

year to identify and assess compliance risks.1 The risks identified are then aggregated and presented during annual

Affected Siemens entities are obligated to implement theCompliance Risk and Performance Reviews to the Compli-

additional recommendations of the investigation reports,

ance Management Council. The risks are documented in the

including measures to effectively remedy the situation.

Compliance Risk Tracking tool.
Additional information from internal data sources is included
to provide a holistic overview of compliance risks. Cross-­functional knowledge exchanges take place at regularmeetings, and an annual Corporate Compliance Risk Workshop helps us identify and monitor emerging or changing
risks. The results of the risk assessments are a key starting
point for the ongoing development of our compliance system.

1

At SHS, formal Compliance Risk Assessments are conducted every three years, withthe last being performed in fiscal 2023.

SIEMENS SUSTAINABILIT Y REPORT 2023

36

3.1 Compliance and ethics

Targets→ We are transforming and modernizing the technology

Our ethics approach is also embedded in our DEGREE

that supports our compliance management system in­sustainability framework within the field of action Ethics.

order to keep pace with the digital transformation of ourcompany. This includes our new cloud-based solutions,which we have leveraged to further streamline and automate our risk-based compliance processes and support

E Ethics

data-driven holistic risk management and continuous

Progress on DEGREE ambition #3:
Striving to train 100% of our people on
the Siemens Business Conduct Guidelines
every three years

control activities. With these cloud-based solutions, we
aim to improve assurance and efficiency of complianceactivities at Siemens.

Compliance training

As part of the DEGREE sustainability framework,

To ensure that compliance and integrity are embedded

Siemens has set itself the ambition of training all

throughout the organization, Siemens employees and theemployees on BCGs in a three-year cycle. The current

Compliance organization receive targeted, group-oriented,

cycle started in fiscal 2023. By end of this fiscal year therisk-based training on compliance topics.

new BCG training “Doing the right thing!” has beenrolled out to 71% of all active employees worldwide

Our employees learn through mandatory web-based train-with a current KPI result of 69% newly trained employees

ings and non-mandatory learning products about compli-

in this cycle. Therefore, the DEGREE ambition for Ethics

ance topics and on the content of our BCGs. We train all ouris on track.

employees (full-time and part-time) worldwide. Employersof external employees are contractually obligated to comply

Progress
From FY 23

with the Supplier Code of Conduct and must ensure compli69%

100% by 2025

ance by external employees as part of the onboarding process

Siemens without SHS

We strive to train every employee worldwide on the BCGs in
a recurring three-year cycle, according to the Ethics DEGREE
target. The new three-year cycle started in fiscal 2023. In

Actions and results

July 2023, the rollout of an update to our BCG web-based
training began, which now includes our Ethical Principles.

Progress in fiscal 2023

Our learning management system SABA tracks the mandatory

In fiscal 2023, we continued to make progress with ourtraining courses. The completion of training requirements is

Siemens compliance system, including:visible in our SABA dashboard, and detail reporting is available
for the management on demand.

→ Enhancing our integrated risk management approachwith updated technology to better continuously monitor

In addition, materials are regularly offered through theand update risks. This enables us to rapidly adapt toIntegrity Dialog initiative. With this initiative, managers have­factors like emerging risks, business transformation, andan opportunity to discuss and raise awareness of current

changing regulatory and geopolitical conditions.

compliance topics with their teams.

SIEMENS SUSTAINABILIT Y REPORT 2023

37

3.1 Compliance and ethics

Non-mandatory learning products in diverse formats are alsopresented in the form of learning paths in our global learning

Compliance indicators¹
Fiscal year

platform My Learning World.
The BCG training was rolled out to 190,000 employees
worldwide, and 129,000 of them (approximately 68%) had

2023

2022

Compliance cases reported

416

363

Disciplinary sanctions

166

212

therein warnings

87

90

therein dismissals

43

74

therein other²

36

48

successfully completed the training by the end of fiscal 2023.

129,000

employees were trained on the content of

1
2

Continuing and discontinued operations.
Includes loss of variable and voluntary compensation components, transfer, andsuspension.

our BCGs in fiscal 2023
We believe that the evidence demonstrates that our compliancesystem is well-designed and effectively implemented. Due toSiemens employees around the world also completed about

the nature of our business operations, the environments

461,000 training programs for specific target groups in fiscal

where we work, and our company’s geographic distribution,

2023.2

we do not regard the number of incidents as unusual.

“Ethical corporate governance andcompliance are non-negotiable. Our
approach goes beyond strict
compliance with laws andregulations by placing integrity at
the center of our corporate culture
and business processes.”More information on significant ongoing and future charges

CEO Roland Busch

Compliance indicators and whistle-blowersof corruption, antitrust violations, and other violations of thelaw can be found in

SIEMENS REPORT FOR FISCAL 2023, COMBINEDMANAGEMENT REPORT, CHAPTER 8.3.4 COMPLIANCE RISKS, AND NOTES TOCONSOLIDATED FINANCIAL STATEMENTS, NOTE 22 LEGAL PROCEEDINGS

Stakeholder involvement in our complianceapproachCompliance-related questions are included in the annual
Siemens Global Employee Survey in order to evaluate theeffectiveness of the compliance system within the company.
We also use the survey to acquire a better understanding of

Our employees use our reporting channels regularly. A total

the degree to which ethical conduct is embedded in ourof 416 compliance cases that required an inquiry or investi-

corporate culture. The results of last year’s survey show angation were reported in fiscal 2023. We believe that theincrease in the already high approval rates3 relative to theincrease in compliance cases from the previous year falls

perception and awareness of integrity, ethics, and responsible

within the range of normal fluctuation. The total number ofbusiness conduct throughout the organization.

disciplinary measures imposed for compliance violations was
166 in fiscal 2023.
The number of disciplinary measures in a fiscal year does notnecessarily reflect the number of compliance cases reported
in the same period. This is because disciplinary action may
not be taken in the same year as the case was reported orwhen the investigation was completed. Furthermore, one
compliance case may result in multiple disciplinary actions
or none at all.
2
3

SIEMENS SUSTAINABILIT Y REPORT 2023

38

This figure includes Siemens Healthineers employees.
At the same time, the overall response rates decreased from 167,900 in fiscal 2022 to
161,550 in fiscal 2023.

3.1 Compliance and ethics

Collective Action and the Siemens Integrity
Initiative
We believe that in order for substantial progress to be madein combating corruption and fostering fair competition,
large numbers of stakeholders must act collectively.
The Siemens global Integrity Initiative earmarks more than
US$100 million to support organizations and projects that
combat corruption and fraud through Collective Action,
education, and training.
The Siemens Integrity Initiative focuses on supporting projects that have a clear impact on the business environment,
can demonstrate objective and measurable results, and havethe potential to be scaled up and replicated.
So far, we have allocated approximately US$120 million for
85 projects in more than 50 countries across all funding
rounds. Detailed information on this subject is provided in
the Siemens Integrity Initiative’s annual reports.
WWW.SIEMENS.COM/INTEGRIT Y-INITIATIVE

US$120 million in support for
85 projects in 50 countries
The Siemens Integrity Initiative constitutes one element of a2009 settlement between Siemens and the World Bank andanother 2013 settlement between Siemens and the European Investment Bank (EIB).

SIEMENS SUSTAINABILIT Y REPORT 2023

39

3.2 Human rights

3.2

Human rights– Commitment to respect human rights in accordancewith international standards

The Chief Compliance Officer, also appointed to serve as the
Siemens Human Rights Officer by the Managing Board of– Continuous assessment of actual and potential

Siemens AG, reports to the Supervisory Board and Managing

adverse impacts on people and environment

Board on a regular and ad hoc basis on issues concerning

throughout our value chain– Regular dialogs with human rights-focused externalbusiness coalitions

human rights: for example, the German Supply Chain Due
Diligence Act (LkSG), for which Legal Compliance is theoverarching coordination body.
The SSB has assigned overall responsibility for human rights

Management approachto the Siemens Sustainability and Compliance departments.

As a global company, we are well aware of our responsibility

Their primary task is to proactively and systematically ensure

to society. We are unreservedly committed to safeguardingthat respect for human rights is deeply embedded in ourand respecting human rights in every stage of the value

company-wide processes and decision-making. To achieve

chain. We understand this to be a key element of acting with

this, both departments regularly assess opportunities for

integrity and responsible business conduct.

improvement in accordance with international standards.
The Supply Chain, People and Organization, Environment,

The way we function in our own operations, in our supply

Health and Safety, Corporate Security, and Siemens Realchain, and in our downstream value chain may affect the

Estate departments are responsible for embedding andeconomic development and advancement of society.

maintaining human rights-related due diligence require-

Siemens takes a holistic approach to respecting humanments within their processes. This responsibility also includes

rights. We strive to continuously assess actual and potential

the conceptualization and delivery of training and continuous

adverse impacts on people and the environment and inte-

learning formats.

grate our findings in our company’s policies, procedures, andrespecting human rights is an integral part of our manage-

Commitment to human rights and international
standards

ment systems and is embedded across company functions

The principle of respect for human rights is firmly grounded

and business operations globally.

in the United Nations 2030 Agenda for Sustainable Develop-

due diligence practices. Therefore, our commitment toManagement and responsibilities

ment. Siemens believes that the 17 Sustainability Development Goals (SDGs) can only be fully achieved if potentially

The Siemens Managing Board and the Siemens Sustainability

negative impacts within the value chains are examined in

Board (SSB) monitor Siemens’ actions in relation to humandetail and effective action is taken to counter them. In theserights and our commitment to implementing the Unitedefforts, we are guided by international standards that help

Nations Guiding Principles on Business and Human Rights.

companies define their approaches to human rights andThese bodies review our progress and our challenges andcontinuously optimize them. These standards include theidentify opportunities for improvement.

United Nations Guiding Principles on Business and Human
Rights and the Guidelines for Multinational Enterprises­published by the Organization for Economic Cooperation
and Development (OECD). They highlight the importance ofdue diligence systems that proactively identify, assess, andmitigate potential adverse human rights impacts.

SIEMENS SUSTAINABILIT Y REPORT 2023

40

3.2 Human rights

The Business Conduct Guidelines

them responsibly to the extent that they can be influenced

Our commitment to respecting human rights is anchored in our
Siemens Business Conduct Guidelines (BCGs)COMPLIANCE

AND ETHICS . They set out the fundamental principles and rulesthat apply to our actions relating to human rights in ourby the company.

Actions and resultscompany and with our customers, external partners, and the

Human rights in our own workforce

public. The BCGs are binding for all employees worldwide. In

The BCGs are an integral element of all employment con-addition, the Siemens Group Code of Conduct for Suppliers

tracts.

and Third-Party Intermediaries (Supplier Code of Conduct),discrimination, sexual harassment, or any other form ofwhich is mainly focused on rules of conduct relating topersonal attack on individuals or groups. In addition, thehuman rights, applies to the company’s suppliers, third-party

principles of equal opportunity and equal treatment applyintermediaries, and business partners.

without restriction. We foster diversity, equal opportunity,

BUSINESS CONDUCT GUIDELINES . Siemens does not tolerate

and inclusion in the interest of creating an open and
Beyond that, Siemens has reaffirmed its commitment toworkers’ fundamental labor rights in an International Frame-­welcoming work environment.

DIVERSIT Y, EQUIT Y & INCLUSION

work Agreement signed with trade unions and employee

Human rights in the supply chain

representatives in 2012. This specifically includes the right

One of our guiding principles is to maintain sustainable

to collective bargaining and freedom of association.

supply chains. Siemens’ suppliers commit to upholding the
Supplier Code of Conduct, which affirms the fundamental

Targets

human rights of our suppliers’ employees. In fiscal 2023, we

Our DEGREE sustainability framework consists of a number

modified the Supplier Code of Conduct to include additionalof fields of actions that address the multifaceted issue of

requirements from new regulations and prepared its rollout

human rights in the areas of G (Governance), E (Ethics),

readiness for fiscal 2024.

E (Employability), and E (Equity).

1

The Code encompasses but is not limited to the following
Regarding our approach to respecting human rights, we havehuman rights topics:

established measures that encompass our own operations, oursupply chain, and customer-related business activities.

Continuous improvement measures→ Fair work conditions (pay, work hours, vacations)→ Right to freedom of association→ Responsibility for health and safety standards

We view fulfilling our responsibility to human rights as a

→ Prohibition of discrimination

continuous improvement journey. In fiscal 2023, Siemens→ Prohibition of forced labor and child labor

modified its policies, processes, and methods to align with

→ Provision of anonymous grievance mechanisms

regulatory requirements like the LkSG. We have establisheda cross-functional Committee with the aim of ensuring gov-

Siemens takes a risk-based approach to identifying potential

ernance oversight and decision-making on future measuresrisks in its supply chain. This includes Corporate Responsibility

related to the LkSG.

Self-Assessments (CRSAs) by suppliers and external sustainability audits. When deviations from the Supplier Code of

In consideration of future regulatory developments andConduct and violations of the human rights principles are

increased stakeholder expectations, we strive to continu-

identified, we work with suppliers to clarify how lasting

ously modify the company’s risk management programs andcorrective actions can be taken within a reasonable time-procedures across our value chain.

frame.

We aim to systematically identify and assess the risk ofIn the case of severe violations, we reserve the right tohuman rights violations at an early stage and to mitigate­terminate the supplier relationship.

SUSTAINABLE SUPPLY CHAIN PRACTICESRISK ISSUES IN OUR VALUE CHAIN
1

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

41

MATERIAL HUMAN RIGHTS

3.2 Human rights

Siemens’ human rights framework
I. Periodic human rights impact review process
How are the material human right aspects and human rights
risk issues for Siemens periodically identified?

Periodic review

II. Transactional human rights due diligence process

Risk identification
How are risks in projects
identified?

Risk management(incl. monitoring)
What are effective
mitigation measures?

Risk assessment
How are risks
assessed?

Grievance mechanism

How are effective complaint channels provided?

III. Overarching pillars
Awareness

How is awareness of human rights issues ensured at Siemens?

Policy and circulars

How is Siemens’ commitment to respecting human rights embedded
in policies and circulars?

Training and competence building

How do you develop target group-specific human rights training for Siemens?

Reporting and external communications

How are human rights activities and issues disclosed?

Stakeholder engagement

How do you build an open dialog with external and internal stakeholders?

Risk identification

How are risks along the value chain identified?

Risk management

What are effective prevention and mitigation measures?

Human rights in customer-related businessWe are strengthening our governance with regards to envi-

Siemens is committed to operationalizing systematic andronmental, social, and human rights due diligence inpreventive human rights due diligence along its value chain.

­customer-related business through targeted capacity-building,This is also applicable to downstream due diligence with acontinuous due diligence tool-related enhancements (in our

focus on customer-related business.

ESG Risk Due Diligence Tool, the ESG Radar), expanding­relevant risk indicators for risk oversight creation, embedding
environmental and social risk considerations in the company’srisk management processes, and strengthening risk mitigation
pathways with the support of external human rights expertise.

The early detection of ­environmental

We are also enhancing our control mechanisms with aand social risks plays a key role­primary focus on our business sales department and contin-

in human rights due diligence.

uously reassessing material areas of adverse impacts – forexample, those resulting from certain business fields – sothat they can be embedded in our due diligence systems.

SIEMENS SUSTAINABILIT Y REPORT 2023

42

3.2 Human rights

These initiatives have been incorporated into our internal

Compliance, and Environment, Health, and Safety (EHS). In

guidelines and policies. They have also led to the creation of

fiscal 2023, we revised the mandatory BCG training for ourcustomized roles and responsibilities within our key functions,people and included specifics on fundamental rights at work.

our businesses, and our regions. As part of our commitment
to responsible business conduct, we have piloted the process

External and internal expert dialogs and regular knowledge-­of environmental, social, and human rights deep-dive due

sharing are also conducted in the area of environmental

diligence that will be conducted annually for established key

and social risks: for example, on responsible business due

business partners and strategic partners. This process has

diligence in conflict regions.

been piloted in fiscal 2023 and will become mandatory
beginning in fiscal 2024.

Grievance mechanism and channels
Siemens offers protected channels for reporting violations ofMaterial human rights risks that we have identified in our

external and internal rules to all our people and external

value chain are summarized in the table below.

third parties. The reports generated by these channels areforwarded to our Compliance organization and followed up.
The same channels can also be used to report human rights

Material human rights risk issues inour value chain
Human rights risk issues in the supply chain› Fair working conditions› Freedom of assembly› Discrimination› Forced labor› Child labor› Health and safety
Human rights risk issues in own workforce› Fair working conditions› Freedom of association and collective bargaining› Discrimination› Forced labor› Child labor› Health and safety
Human rights risk issues in the case ofbusiness decisions by customers›	Business-specific environmental and social risks1› Country-specific risks›	Impacts on local communities(e.g., Indigenous population,
ethnic or religious minorities)› Fair working conditions› Modern slavery› Discrimination› Occupied territories
1	Including in the areas of coal, oil, and gas and mining, for example.

violations to the company.

COMPLIANCE AND ETHICS

Networks and coalitions
We maintain a regular dialog with our peers, and we aim toestablish mutual trust and drive a more in-depth discussion
on human rights. This kind of dialog focuses on discussing
challenges and solutions, addressing areas of improvementwith regard to responsible business conduct practices, andidentifying potential areas to join forces. We firmly believethat we can achieve faster, more impactful progress throughcollective action compared to acting alone.
Siemens is a member of the Global Business Initiative on
Human Rights (GBI). This initiative is one of the leadinginternational network initiatives in the field of human rights.
Siemens is also represented in the UN Global Compact Network’s European Business and Human Rights Peer Learning
Group. In Germany, Siemens is involved in econsense2
working groups in the areas of business and human rights
and human rights in the supply chain.
In addition to regular dialogs with peers and think tanks,
we engage with external human rights advisors to derive
responsible risk mitigation pathways, training and capacity-­

Training and skill buildingbuilding methods, and ways to strengthen due diligence

Our continuous skill building activities are geared towardpractices. In addition, we engage with investors, sharehold-specific target groups. Siemens provides interactive training

ers, customers, journalists, rating agencies, and NGOs.

formats for employees, suppliers, and global and regionalsalespeople and for specific functions like Sustainability,

2
SIEMENS SUSTAINABILIT Y REPORT 2023

43

econsense is a forum for the sustainable development of German business.

3.3 Sustainable supply chain practices

3.3

Sustainable supply chain practices– Based on a holistic “Prevent – Detect – Respond”
approach– Evaluation of suppliers based on self-assessments
and on-site audits

Our governance and policies for strategic
procurement
The core objectives of the strategic procurement processes areto sustain the company’s success by making a consistently high

– Focus on human rights: climate protection andresponsible sourcing of minerals

contribution to our earnings from purchases of materials andservices, to assert high quality standards along the entire
supply chain, to identify and exploit opportunities to create
value through procurement competence, and to ensureManagement approach­compliance and sustainability. Sustainability is our guiding

Siemens procures materials and services from all over the

principle. The sustainability initiatives we take are an essential

world. We work with approximately 67,700 suppliers in

aspect of the successful implementation of our programs. Ouraround 140 countries. In fiscal 2023, Siemens purchased

understanding of sustainability in the supply chain is based on

goods and services valued at just under €37 billion, theour company values to be responsible, excellent and innova-

equivalent of about half of our total revenue. Due to thetive. As a Support Function in the Service and Governancevarying conditions in these countries, ensuring strict compli-

units, Siemens Supply Chain Management has the process andance with our globally applicable sustainability requirements

regulation responsibilities for procurement principles.

poses a significant challenge for our daily procurement
practices.

Our mandated purchasing units take general responsibility
for implementing and complying with Siemens’ procurement

Our purchasing activities have impacts on our suppliers,

principles. Therefore, only mandated purchasing units are

local communities, and the environment in our procurement

authorized to conclude contracts with suppliers.

markets. As such, we monitor and engage with our suppliers
to drive and support their efforts to enhance sustainability

We have developed policies that describe our standards forpractices. Our supplier relationships provide us with the

suppliers in terms of their social, environmental, and ethicalopportunity to make contributions to securing jobs andperformance. They lay the foundation for guiding supplierpromoting adherence to both international work and envi-

selection, evaluation, and ongoing engagement.

ronmental standards. Using our holistic sustainable supply
chain management approach, we work to prevent situations

The Siemens Code of Conduct for Suppliers and Third-Party

where suppliers may be tempted to compromise the well-­Intermediaries (Supplier Code of Conduct) is designed tobeing of their workforce or violate environmental regulations.

cover our sustainability requirements. Among other principles, it is based on the principles outlined in the United
Nations Global Compact (UNGC) and our Business Conduct
Guidelines (BCGs), which sets out the basic principles ofsustainability for our suppliers.

Siemens purchased goods andservices worth €37 billion fromabout 140 countries

The Supplier Code of Conduct requires suppliers to adhere to
standards on:→ Fundamental rights of employees, including a protected
grievance mechanism for employees→ Health, safety, and environmental protection

SIEMENS SUSTAINABILIT Y REPORT 2023

44

3.3 Sustainable supply chain practices→ Zero-tolerance strategy to prevent corruption and bribery

The Decarbonization field of action commits us to reducing→ Preventing purchases of conflict minerals produced in

upstream emissions in our supply chain. As part of thiscertain countries that yield profits for armed groups, ineffort, Siemens has set a target to reduce CO2e emissions

particular

generated in our supply chain by 20% by 2030 compared to→ Preventing money-laundering and terrorist financing

2020. We also aim to achieve Net Zero emissions in our→ Export control and customs

supply chain by 2050.1→ Data protection→ Compelling their suppliers to comply with the principles
of our Supplier Code of Conduct
Sustainable business practices are an integral part of our
Procurement Principles at Siemens. For instance, it requires
the Supplier Code of Conduct to be incorporated into all
new and extended procurement contracts. Procurement is

D Decarbonization

Progress on DEGREE ambition #2:
Net Zero supply chain by 2050,
20% emissions reduction by 2030

responsible for ensuring that suppliers accept the SupplierIn fiscal 2023, supply chain emissions decreased by

Code of Conduct and do not depart from it.

1% compared to the baseline year 2020, reaching
8,029 kt CO2e, with the carbon reduction measures

Targets

implemented by our suppliers being reflected in thisWe expect all suppliers to commit to and follow our Supplier

number. If the increase in purchasing volume of

Code of Conduct. This is also reflected in our DEGREE

around 33% is included, CO2e emissions were however­sustainability framework as a part of the Governance field ofaction.

reduced even further in relation to the purchasing
volume.

1

Progress
FY 20: 8,098 kt CO2e

G Governance

Progress on DEGREE ambition #4:
ESG-secured supply chain based on
supplier commitment to our Supplier
Code of Conduct
We expect our suppliers not only to contribute to the– 1%– 20% by 2030
– 100% by 2050

Siemens without SHS

Actions and results

economic success of our company but also to ensure

Supplier management follows clear criteria

strict compliance with our sustainability require-

At Siemens, supply chain sustainability is supported by aments, which are summarized in the Siemens Supplierholistic Prevent – Detect – Respond approach with the aim of

Code of Conduct. The obligation of suppliers toeffectively mitigating risks.

observe our Code of Conduct is an essential foundation for fulfilling our governance ambitions bundled

Our aim is to raise supplier awareness of the importance ofunder “G” in our DEGREE sustainability framework.

integrating our values and meeting sustainability requirements. Siemens also provides web-based training on

Progress­sustainability and human rights in the supply chain for all
our suppliers.

Suppliers committed
Siemens without SHS

1

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

45

3.3 Sustainable supply chain practices

strict criteria for supplier selection and qualification. When

Self-assessments and site audits as control
mechanisms

engaging with new suppliers, we categorize and if necessary

Based on the risk categories, we conduct appropriate evalu-

proactively address potential sustainability risks based onations of suppliers in accordance with our risk assessment.

these criteria. This may apply to suppliers exhibiting the

These reviews range from supplier self-assessments of their­following risk characteristics:

own sustainability practices to on-site sustainability audits

The supplier management process at Siemens incorporates

conducted by external auditors.
→ Locations in high-risk countries→ Products subject to the requirements for the responsible

Corporate Responsibility Self-Assessments
CRSAs are an integral part of our supplier qualification pro-sourcing of minerals→ Products and services with large carbon footprints

cess. They are subject to regular review and updates to alignthem with evolving standards and regulations. As part of thisTo identify these risk characteristics, we categorize ourprocess, potential suppliers undergo a mandatory qualifica-­suppliers as follows:tion procedure, while existing suppliers are re-assessed
every three years.

→ Purchased material and service fields: We classify suppliers
based on the specific types of materials and services they

The number of completed CRSAs increased by about 4% fromprovide. This allows us to tailor our measures to individual

4,912 in fiscal 2022 to 5,096 in fiscal 2023. The number ofsuppliers: for example, incorporating specific contract

agreed-upon improvement measures increased in fiscal 2023

clauses, requesting proof of compliance, or flagging themto 5,493, as compared to the 3,109 reported in fiscal 2022.

for on-site audits.
→ Country risk levels: Suppliers are assigned to risk levels
based on country-specific sustainability indicators inareas like legal compliance, corruption and bribery,
human rights in the workplace, and child labor.
We centralize sustainability-related data about our supplierson the SCM Sustainability Platform, which enables us togather information from diverse internal and external sources.
This includes data on carbon reduction initiatives, corporate
responsibility self-assessments (CRSA), on-site audit results,
and risks associated with conflict minerals. All employees in
Siemens’ purchasing departments can access this integrated
tool.
Information is evaluated in the platform using a point system
and is presented visually. This uniform assessment approachenables sustainability to serve as a consistent evaluation
factor throughout Siemens. It supports and complements
local purchasing decisions with globally available supplier

Corporate Responsibility Self-Assessments (CRSA)¹
Fiscal year
(Number)

Europe, Middle East, Africa, C.I.S.²

1,122

1,147

767

654

Asia, Australia

3,207

3,111

Total

5,096

4,912

Agreed upon improvement³

2023

2022

Legal Compliance/prohibition of corruption
and bribery

1,698

915

Respect for the basic human rights of
employees

1,194

564

Prohibition of child labor

168

80

Health and safety of employees

1,103

879

Environmental protection

1,116

546

Supply chain

214

125

Total

5,493

3,109

2
3

SIEMENS SUSTAINABILIT Y REPORT 2023

46

2022

Americas1

sustainability information.

2023

Self-assessments completed mainly by suppliers from non-OECD countries with apurchasing volume of > €50,000 per year. Questionnaires that were initiated,­completed, and concluded in the reporting period.
Commonwealth of Independent States.
Improvement measures agreed on with suppliers relate either to actual deviations
from the Supplier Code of Conduct, structural improvements in management­s ystems, or a lack of specific processes and guidelines implemented by the supplier.

3.3 Sustainable supply chain practices

External sustainability audits

series of improvement measures with suppliers. In fiscal

From our perspective, external sustainability audits are the2023, improvement measures were agreed on to address amost effective means of evaluating our suppliers’ sustain-

variety of potential social impacts. These impacts include

ability performance. These audits are conducted by ourhuman rights and the health and safety of employees as well

external audit service provider and serve as a control

as environmental impacts like a lack of certification and­mechanism for suppliers identified as high-risk.

failure to reduce CO2e emissions.
During this process, we remain committed to our supplier

External sustainability audits (ESA)

partnerships, and we work to help them improve. However,
if problems persist, or the supplier demonstrates a lack of

Fiscal year
2023

(Number)

2022

willingness to take the necessary corrective actions, weremove them from our supplier list.

Europe, Middle East, Africa, C.I.S.¹

97

113

Americas51

50

Asia, Australia

333

263

Suppliers can also be blocked in local systems around the

Total 2481

426

world via our IT-based Global Master Data Management
process for suppliers.

Fiscal year

Agreed upon improvement 3

2023

2022

Legal Compliance/prohibition of corruption
and bribery

1,308

1,101

Respect for the basic human rights of
employees

3,977

2,717

Prohibition of child labor

106

82

Health and safety of employees

3,511

2,802

Environmental protection

285

271

Supply chain

334

302

Total 2

9,521

7,275

1
2
3

Commonwealth of Independent States.
Includes audits conducted virtually as well as audits carried out by third parties at our
suppliers based on the same standards, which are accepted by Siemens.
Improvement measures agreed on with suppliers are based on actual deviations fromthe Supplier Code of Conduct, structural improvements in management s­ ystems, or alack of specific processes and guidelines implemented by the supplier.

Sustainability topics with a specific need for action
Two focus topics play an important role in our sustainablesupply chain practices, given their strong connection toother sustainability initiatives at Siemens. These include theresponsible sourcing of minerals and reducing CO2e emissions in our supply chain.

Responsible sourcing of minerals
Siemens is working hard to prevent the use of minerals fromareas of conflict, and high-risk areas in the supply chain thatare covered by the risk definition set out in Annex 2 of theOECD’s Due Diligence Guidance for Responsible Supply
Chains of Minerals from Conflict-Affected and High-Risk
Areas. To support the responsible sourcing of minerals, we

We slightly increased the number of external sustainability

developed the Responsible Minerals Sourcing Policy, which

audits compared to fiscal 2022. In fiscal 2023, the figure

is integrated into our purchasing process. This policy sets arose by about 13% to 481 audits. This figure includes

uniform standard for supply chain management across the

13 audits that we conducted virtually, where the auditor

company. Our approach aligns with the risk-based require-

inspected the suppliers’ facilities by remote video. Alsoments of the OECD’s Due Diligence Guidance.

included are four audits verified by our audit service provider
that were conducted on behalf of third parties at companies

To determine the use, sources, and origins of these minerals

that also have supplier relationships with Siemens. Thesein our supply chains, we investigate the smelting plants

audit reports fully comply with Siemens’ requirements andinvolved. Siemens is a member of the Responsible Minerals

were provided to us with the approval of the audited companies.

Initiative (RMI), an organization of more than 400 industrial
companies that provide auditing programs for smelting. We

We also may repeat audits or conduct follow-up audits

use the Conflict Minerals Reporting Template (CMRT) publishedthrough our external audit service provider. Our responsibleby the RMI to survey our more than 2,300 relevant suppliers

purchasing departments at Siemens can also agree on aand elicit the information we need about smelters in our

SIEMENS SUSTAINABILIT Y REPORT 2023

47

3.3 Sustainable supply chain practices

supply chain that are associated with the production of tin,

Supplier+s is based on the following methodology:tantalum, tungsten, and gold (3TG). We share our findings
on identified smelters with our RMI partners. The initiative→ Suppliers are categorized into product or service categories

then reviews the smelters’ certification. In this process,and country of origin and are then assigned an industry

Siemens supports the smelters as they move toward the final

average for CO2e emissions based on the calculation

audit and certification stage. Individual results arecommunicated on the RMI website­

WWW.RESPONSIBLE­

model developed by our external partner.

→ We ask our suppliers to provide information via supplier+s
about their implemented CO2e reduction measures and

MINERALSINITIATIVE.ORG.

their overall CO2e management. Based on their responses,

Siemens extends its risk assessment system to evaluate

we calculate the resulting emissions reduction and theminerals beyond the 3TG grouping using the risk definitions

remaining carbon footprint of the supplier.

provided by the European Commission for “armed conflict,”“areas witnessing weak or non-existent governance andPositive feedback on our Carbon Reduction@Suppliers pro-security,” and “[areas with] widespread and systematic vio-

gram encouraged us to open the formerly internal tool (CWA

lations of international law, including human rights abuses.”

Carbon Web Assessment) to external use by other companies

Cobalt and mica are two minerals that have been included inin the form of the supplier+s tool. Detailed information on

Siemens’ due diligence process. This inclusion follows the

supplier+s is provided at

WWW.SIEMENS.COM/CARBON-SUPPLIERS .

RMI’s development of an auditing standard and reporting
specifications – the Extended Minerals Reporting Template

4,324 suppliers – who stand for 43% of our Scope 3 upstream(EMRT), designed specifically for cobalt and mica – in addition(tier 1) footprint – have provided us with primary data by

to the existing specifications for 3TG minerals. Siemens

taking part in our Carbon Reduction@Suppliers program.

conducts supplier audits for cobalt and mica, with a particular

2,038 of them have shared their decarbonization plans withfocus on battery manufacturers.

us by joining the supplier+s platform, which was launched infiscal 2023. Based on the responses we received and calcu-

More information and the text of our Responsible Minerals

lated, there was an average reduction of 9% in the previously

Sourcing Policy can be found at­calculated emissions for these suppliers, equivalent to a

WWW.SIEMENS.COM/­RESPONSIBLEMINERALS .

decrease of 464,000 metric tons of CO2e. This indicates that

our suppliers have been more supportive in reducing our
Our Carbon Reduction@Suppliers program

carbon footprint in the supply chain compared to the previous

In our Carbon Reduction@Suppliers program, we collaborate

year’s reduction of 359,000 metric tons of CO2e. This effort

with an external partner to analyze the economic data andhelped reduce our Siemens Scope 3 upstream footprint

model the carbon footprint of each of our suppliers. To

against our baseline year 2020 by 0.9% and against thefacilitate this process, we utilize a web-based tool called

previous year 2022 by 3.3%.1

supplier+s that highlights the main sources of suppliers’
CO2e emissions and provides guidance on how to reducethem. Once suppliers have completed the learning phase,they provide us with their primary data through the tool.

1
SIEMENS SUSTAINABILIT Y REPORT 2023

48

Siemens without SHS

3.4 Cybersecurity and data privacy

3.4

Cybersecurity and data privacy– Leading role in cybersecurity– Global expertise and governance structuresmeans that they can be more exposed to cyberthreats.
­Regulatory- and customer-specific security requirements are
increasing, and Siemens needs to address them.

We believe that data protection is an integral part of respon-

Siemens takes a holistic approach to addressing cybersecurity

sible business conduct. Cybersecurity and data privacy arein the best interest of our customers. It is essential to the

key success factors for Siemens, and for digitalization incomprehensive protection of both industry and society fromgeneral. While data privacy practices cover personal datainternal and external cyberattacks.

from a legal perspective, cybersecurity focuses on protecting
products, solutions, and services, information technology

Our cybersecurity governance and policies(IT), and operational technology (OT). Our primary objective

The Cybersecurity Board (CSB), chaired by the Global Chief

is to maintain strong data protection and a high level of

Cybersecurity Officer, is responsible for the implementation

cybersecurity for the company and all our stakeholders.

and coordination of cybersecurity throughout Siemens. The
member of the Siemens AG Managing Board responsible forcybersecurity is part of the CSB, as are the Chief Cybersecurity

Cybersecurity

Officers of each of Siemens’ businesses.

Management approach

Given the importance of cybersecurity for the senior man-

Cybersecurity is rapidly growing in importanceagement, the Global Chief Cybersecurity Officer reports
directly to the responsible member of the Managing Board,

Digital systems have become indispensable in many sectors

quarterly to the entire Managing Board, and annually to theof the economy: for instance, in hospitals, factories, smart

Supervisory Board.

buildings, e-mobility, and connected mobility. Wherever
sensitive data are stored, potential security threats are never

The CSB provides a collaborative platform for advancing

far away. As a result, cybersecurity is one of today’s moststrategic initiatives that address security issues and establish

relevant issues, not just for companies but for society as acybersecurity requirements and recommendations through-whole. Its relevance is only expected to increase, with cyber-out Siemens and its affiliated companies. In addition, asecurity becoming crucial for helping businesses safeguard­collaboration agreement enables the Chief Cybersecurity

critical infrastructures, protect sensitive information, andOfficer at Siemens Healthineers to participate in the CSB.

ensure business continuity.
Having recognized early on that cybersecurity is an integral
As one of Siemens’ strategic goals, the digital transformation

part of the digital revolution, Siemens built a cybersecurity

will only succeed if Siemens can be certain that connectedorganization both at the corporate level and in the busi-

systems and the data contained within them will remain

nesses and countries. All information security rules andsecure. That is why Siemens places the highest priority on

regulations at Siemens are documented and detailed in the

cybersecurity.

Cybersecurity Policy Framework. The framework outlines theroles and responsibilities and the rules and practices that

Siemens’ products, solutions, and services contain a signifi-

offer a guide for how Siemens and its business units protect

cant amount of software and IT-related components and are

information and business processes.

often used in the context of critical infrastructures – which
SIEMENS SUSTAINABILIT Y REPORT 2023

49

3.4 Cybersecurity and data privacy

The Information Security Policies define the mandatory high-Siemens is one of the industry leaders in cybersecurity. Ourlevel requirements and general rules for information security.

cybersecurity performance is highly regarded, as evidenced

The policies serve as blueprints for establishing and managing

by our sustainability ratings and rankings. For example, theinformation security at Siemens. The requirements are based

Dow Jones Sustainability Index (DJSI) has ranked Siemens as

on the domains defined in Annex A of the internationala leading company in cybersecurity relative to our peers.

standard ISO/IEC 27001. Siemens’ cybersecurity governancehas been ISO 27001-certified since November 2017.

Siemens products, solutions, and services
Siemens is implementing a company-wide Product andOur commitment to cybersecurity is further reinforced by

Solution Security (PSS) initiative. The objectives of the initia-

Siemens’ participation in founding the “Charter of Trust”

1

tive are to formulate PSS recommendations and binding

initiative to protect data and promote cybersecurity in arequirements and to apply and continuously improve themtrustworthy digital world.

in all the businesses.

Targets

The PSS initiative is managed by the PSS Maturity model, a

Our DEGREE sustainability framework addresses the topic ofproprietary, standards-based model. It shows the extent tocybersecurity under “E” for Ethics. We are proactively working

which the established business and design processes aretoward safeguarding and promoting cybersecurity atbeing expanded and constantly improved in terms of their

Siemens. To achieve this, Siemens employees need tosecurity activities and requirements. Evaluations are per-complete a web-based training on cybersecurity on an­formed annually at the organizational level, the results areannual basis.

discussed with each unit’s management team, and corresponding improvement programs are initiated.

Actions and results
The Corporate Cybersecurity department and the cybersecurity

To further strengthen Siemens’ cybersecurity business, ourdepartments in our businesses manage the following issues

businesses offer selected high-maturity security services toand activities:

external customers in collaboration with the Corporate
Cybersecurity department.

→ Developing and implementing proactive cybersecurity
strategies adapted to the business→ Proactive and reactive measures for product and solution

Continuing education and young talentdevelopment

security and to safeguard information technology andIn fiscal 2023, 95% of our employees completed the manda-

operational technology

tory cybersecurity awareness training. The training cycle→ Risk management framework as a part of the Enterprise
Risk Management system with clearly defined roles

began in January 2023 and ran until the end of September
2023.

→ Monitoring and reporting on the status and progress ofcybersecurity measures and checks→ Cybersecurity-readiness and second-line-of-defense

In addition, we offer the training “Driver’s License” to a target2

group of approximately 8,000 employees who are trained to→ Developing mandatory global cybersecurity awarenessapply all of Siemens’ IT/OT security guidelines. All of ourmeasures, annual IT cybersecurity global awareness train-

employees also have access to continually updated training

ings, and specific cybersecurity expertisecourses and learning opportunities on product and solution
security through My Learning World, the Siemens global
learning platform.

1
2

https://www.charteroftrust.com/.
https://www.siemens.com/global/en/company/digital-transformation/cybersecurity/
governance.html#SecondLineofDefense.

SIEMENS SUSTAINABILIT Y REPORT 2023

50

3.4 Cybersecurity and data privacy

launched the CyberMinds Academy in 2022. This is a world-

Proactive approach to handling threats andvulnerabilities, reactive approach to incidents

wide one-year program that combines learning modules

Siemens CERT3 and Siemens ProductCERT are dedicatedwith professional experience designed to develop young

teams of experienced security experts who can provide an

talents into cybersecurity specialists.

immediate response to potential security threats andDue to the growing demand for cybersecurity experts, we

Cybersecurity insurance and risk analysis­incidents affecting Siemens’ products, solutions, services, orinfrastructure.

To protect the company and reduce the potential financial
impact of cyber incidents, we have explored risk transfer

Siemens CERT secures our internal infrastructure, continu-

options in detail. Following an international call for insurance

ously monitors cyberthreats, and evaluates their potential

bids, the currently insurable cyber risks were transferred to a

impact on the company. When security incidents occur, ourgroup of insurers in fiscal 2021. The coverage emphasizes

experts analyze the causes and initiate countermeasures tolosses caused by incidents such like as breaches of information

minimize harmful impacts, and the appropriate stakeholder

security and data privacy within Siemens or by third parties.

groups (and the authorities, if required) are informed.

The scope and limits of the risk transfer to the insurance
market are reviewed annually.

Under the Special Vulnerability Handling program, CERT also
takes proactive steps to support a consistently high level ofSiemens’ Cybersecurity department has also acted to mitigate

protection by addressing potential vulnerabilities before any

risk even more. For example:

damage occurs.

→ As industrial environments become increasingly digi-

The ProductCERT team addresses security issues that affecttalized, the share of software grows significantly, as does

Siemens products and solutions. It is the central point of

the number of associated vulnerabilities. To mitigate

contact for reports of security gaps in Siemens products. As

these risks, Siemens is automating the collection anda key partner of the Siemens business units, the ProductCERT

distribution of information about vulnerabilities with theteam supports the entire process – from identification togoal of offering end-to-end security for our customers.

resolution of vulnerabilities – and provides crucial informa-

These efforts include our collaboration with the Common

tion to customers. Updated Siemens Security Advisories are

Security Advisory Framework (CSAF) 2.0 from the OASIS

published on a monthly basis to ensure our level of transpar-

Consortium

ency. With the CSAF format, we are among the leading→ Since 2022, Siemens has been working intensively to
encrypt the most important data in the post-quantum

industrial manufacturers for the automated distribution ofvulnerability information.

era. As part of this work, the previous crypto algorithms
have had be completely replaced with new methods.

In addition, our Vilocify Vulnerability Services4 continually

Because it is our expectation that crypto algorithms will

search for information about vulnerabilities in software andneed to be updated much more frequently in the future,

hardware components used in Siemens’ products and infra-

the project also addresses the encryption lifecycle in the

structures. As a final step, product security must be guaranteed

form of an expiration date for the classification of docu-

by means of verification tests. To this end, we have developed

ments.

the Siemens Extensible Security Testing Application (SiESTA5),→ Our Zero Trust initiative, whose motto is “Never trust,always verify,” has been extended to fiscal 2024. The

which enables the dedicated identification of vulnerabilities
in infrastructures, products, and solutions.

objective is to check every internal and external connection
between IT/OT devices and products in real time and only
permit trustworthy communications.

3
4
5
SIEMENS SUSTAINABILIT Y REPORT 2023

51

Computer Emergency Response Team.
https://www.siemens.com/global/en/products/services/digital-enterprise-services/
industrial-security-services/vilocify-vulnerability-services.html.
https://new.siemens.com/global/en/products/services/cybersecurity/siesta.html.

3.4 Cybersecurity and data privacy

Artificial intelligence in cybersecurity

Our data privacy governance and policies

Artificial intelligence (AI) serves a crucial function in

Siemens has established a global Data Privacy organization

Siemens’ cybersecurity endeavors. The Siemens AI-basedthat follows Siemens’ business structure with data privacy

implementation dynamically identifies security threats by

responsibility residing with each business unit and country.

detecting anomalies in our network and systems. This action

Overall responsibility lies with the Chief Data Privacy Officer

taken against security breaches helps mitigate potential harm.

who reports directly to the CEO of Siemens AG, on an annual
and ad hoc basis. The Chief Data Privacy Officer also issues

AI also boosts the effectiveness of our cybersecurity proce-the internal Siemens Data Privacy Policies. Our Corporate

dures by automating day-to-day tasks. This automation

data privacy team manages and oversees regulations,enables our security teams to concentrate on more intricate­policies, and standards for data privacy in conjunction withand pressing issues.

Data Privacy Managers in the business units and countries.

Despite the advantages, it is important to note that AI can

Our internal Compliance Policy requires every Siemensalso be used as a tool of cyber attackers by enhancing theemployee to collect and process personal data confidentially,

complexity of their malicious actions. The attackers might

only for legitimate and predetermined purposes, and in aharness AI to automate their attacks, evade conventionaltransparent manner. This requirement is also reflected in our

security systems, or even simulate human behavior to escapeBCGs, which contain a section on data privacy requiring

detection.

every employee to comply with the data protection requirements of the laws and regulations within the legal systems

To be well-prepared for these scenarios, we’ve establishedwhere they are operating, as well as with Siemens’ policies.

stringent security protocols aimed at ensuring a safe andIn addition, the Siemens Compliance Handbook contains

responsible application of AI. Our approach helps maintainrequirements for processing personal data, for documentation,

the integrity of our systems and shields us from potential

and for reporting incidents.

risks.
Transfers of personal data within the Group are covered byThrough meticulous implementation and ongoing surveil-binding internal data protection regulations: the Siemens

lance, we intend to minimize these risks and amplify the

Binding Corporate Rules on Data Protection (BCR). With thebenefits of AI.

BCR, Siemens Group companies around the world have an
obligation to process personal data from data subjects in theEuropean Union in accordance with European data protection

Data privacy

standards, even when the recipient of the personal data is
located outside the European Economic Area (EEA).

Management approach
Protection of personal data in the era ofdigitalization

Targets
Our DEGREE sustainability framework prioritizes the carefulhandling of data under “E” for Ethics. Our overarching goal is

Siemens believes that protecting the personal data of oura zero-tolerance approach to breaches of applicable laws andstakeholders is our ethical responsibility. As digitalization

our own internal guidelines. We are proactively working

and new technologies like artificial intelligence advance,

toward achieving this goal by implementing our data privacy

data protection becomes increasingly important for ourmanagement system.

stakeholders and for Siemens’ success. That is why processing
personal data in compliance with applicable data protection
laws, including the General Data Protection Regulation(GDPR), is of utmost importance to Siemens.

SIEMENS SUSTAINABILIT Y REPORT 2023

52

3.4 Cybersecurity and data privacy

Actions and results

Assessing and fostering our privacy by design processes was

Siemens’ data privacy management systema key focus area in fiscal 2023. Privacy by design at Siemens
is supported by our Privacy by Design Toolkit, a software

To put our data privacy measures into action throughout thesolution that helps process owners incorporate data privacy

Group, Siemens has made them an integral part of our com-in all the stages of product development. One of the Toolkit

pliance system. Our data privacy management system wasmodules includes data privacy questions that must be

established to ensure that all our business activities comply

answered before the launch of a planned product or service.

with data privacy requirements and the applicable laws. The

The toolkit is intended to integrate data privacy from thesystem specifies policies, procedures, and controls requiredvery beginning of a product’s development. We also rolled

by the GDPR, including data subject rights, a privacy incident

out a new privacy by design awareness training program forprocess, mandatory trainings, audits, and keeping a record

product developers in a virtual classroom, learn about andof processing activities.

discuss data privacy challenges drawn from real businessexamples. As part of our global audit plan, selected Siemens

Transparency and rights of data subjects

products were also included in our data privacy audits.

Our websites, digital products, and solutions include data
privacy policy statements that inform users about processing

Data protection at our suppliers and partners

steps and data subject rights. When we process personal

Data protection requirements are consistently observed anddata on behalf of customers, we do so under contractual

implemented within the Group and by our external suppliers

regulations that govern how the data is handled, including

and partners. Suppliers and partners undergo a preliminary

the transfer of customer data to third parties.

data protection audit and are required by contract to adhere
to data protection standards.

We want our people to be committed to data
­protection and regular training

Documentation

Siemens’ employees receive regular training on how to

Siemens documents the purpose, risk, and security standards

handle personal data that is tailored to specific functions

applied to all the Group’s processing activities in a central

and target groups. For this purpose, we developed a web-

database: the Register of Processing Activities. This registerbased data protection training program consisting of anallows us to evaluate whether data protection law permits a“Essentials” level that is mandatory for all employees who

given processing activity and to document compliance withprocess personal data as part of their job and specialized

the applicable laws.

“Nuggets” designed for specific fields and target groups.
Controls
All data protection requirements and measures at Siemens
are subject to regular controls. Siemens conducts risk-based
data protection audits of its processing activities, products,
Data privacy management systemand services.

to ensure compliance with data protection
requirements in all business processes

Treatment of data protection violations
In the event of a potential data protection violation, a rapid

Data protection in our products and solutions

response is essential to ensuring that the violation is swiftly(privacy by design)

stopped and corrected. To facilitate this, Siemens has estab-

Siemens wants to ensure that its products and solutions can belished a global Data Privacy Incident Process that uses central

used in compliance with all relevant data protection rules. At

reporting channels and aims to immediately inform all

Siemens, privacy by design means that compliance with theinternal and external stakeholders (including the data

law, transparency, informational self-determination, data

­subjects and regulatory authorities).

minimization, and data security are already applied when
products and services are developed. Therefore, ­privacy bydesign is integrated into our product development processes.
SIEMENS SUSTAINABILIT Y REPORT 2023

53

Pages 54 – 80

Environment
Conservation of nature andresources

Decarbonization

Resource efficiency

support the 1.5°C target to fight global warming

achieve circularity and dematerialization

Our key ambitions1

Our key ambitions1→ Net Zero operations by 2030, with 55% reduction→ Robust Eco Design approach to be implemented forby 2025 and 90% by 2030
→ Net Zero supply chain by 2050, 20% emissions
reduction by 2030

100% of relevant Siemens product families by 2030
→ Natural resource decoupling through increased
purchase of secondary materials for metals andresinsAdditional highlights→ Circularity through waste-to-landfill reduction of→ Part of the EP100, EV100, and RE100 initiative2

50% by 2025 and toward zero landfill waste by→ Portfolio to support customers in climate protection

2030→ Disclosure of Taxonomy-eligible and Taxonomy-­aligned revenues, capital expenditures, and operating
expenditures

Additional highlights→ Assessment of our biodiversity footprint as foundation for further improvements→ Improvements to energy efficiency as part of our
Eco Efficiency @ Siemens target→ Implementation of water strategy almost completed

1
2

Siemens without SHS.
Improving energy productivity (EP), use of electric vehicles (EV), and use of renewable energy (RE).

SIEMENS SUSTAINABILIT Y REPORT 2023

54

Holistic environmental protection

Holistic environmental protection

Management approach

Our internal sustainability network includes environmental

Siemens is a global company with locations all over theofficers at our sites and specialists in product-related envi-

world and activities across a wide range of markets. With ourronmental protection. The Environmental Protection depart-

global reach, we aim to minimize our negative impacts andment is developing programs to support Siemens’ businesses

maximize our positive impacts on the environment: from thein their efforts to reduce greenhouse gas (GHG) emissions

production of raw materials for our products and in ourin our operations and promote resource efficiency. The

supply chain and our own production operations to the use,

­Sustainability department is responsible for the consolidated

recycling, and disposal of those products.

Siemens GHG reporting and our Net Zero Operations Program.

The significance of environmental protection is continuouslyWith the support of our EHS experts and sustainability officers,

increasing. In a rapidly growing global economy characterized

the operational managers in our global units oversee theby ongoing urbanization and rising population numbers,

implementation of environmental guidelines and programs.

Siemens supports a number of global green transformation
initiatives. These initiatives include the European Green

Siemens has also founded expert panels to ensure that

Deal, which aims to transition to a circular economy, restore

environmental considerations are integral to our decision-­biodiversity, reduce pollutant emissions into the environ-making. The Global Board EHS is comprised of subject-matter

ment, reduce net greenhouse gas emissions by at least 55%

experts who develop environmental protection measures

below 1990 levels by 2030, and achieve climate neutrality byand programs and provide advice to the Chief People and2050.

Sustainability Officer in consultation with the Siemens­Sustainability Board.

As part of the New Circular Economy Action Plan, the European
Commission proposed the Ecodesign for Sustainable Products

Siemens’ Environmental Council assesses Siemens’ environ-

Regulation (ESPR) in March 2022. This regulation aims tomental risks, opportunities, and trends based on uniform

address products’ most harmful environmental impacts andcriteria and reports them to the Siemens Enterprise Risk

to transition society from a linear approach to a circularManagement. The council is composed of environmental

approach to conducting business.

experts from our business units and countries as well as

Our governance and policies on environmental
protection
The Siemens’ Chief People and Sustainability Officer, a member of the Managing Board, works to ensure that we operate
in compliance with our environmental guidelines. Our EHS
Principles serve as internal binding guidelines for this purpose.

SIEMENS SUSTAINABILIT Y REPORT 2023

55

experts in corporate governance, environmental protection,
supply chain, sustainability, finance, technology, real estate,
and insurance.

Holistic environmental protection

Siemens governs all relevant ecological considerations

Siemens’ environmental objectives and ambitions arethrough our Environmental Protection Standards. These

embedded in our Eco Efficiency @ Siemens environmental

policies enable us to oversee and improve environmental

program, the DEGREE sustainability framework, and othermanagement at our sites and to involve our suppliers, service

environmental initiatives. The respective targets are detailed

providers, and contracting partners through the Siemensin the Environmental chapters that follow.

Group Code of Conduct for Suppliers and Third-Party Intermediaries. With these policies and activities, we extend
environmental protection beyond our own business opera-

Actions and results

to increasingly mitigate the environmental impact of ourEnvironmental management standards andsystems

products, systems, solutions, and services.

Our environmental management is based on the ISO 14001

tions. Our environmental policies also include a commitment

WEBSITE ON ENVIRONMENTAL PROTECTION

and 50001 standards for energy-intensive business units andon the IEC 62430 norm for the environmentally compatible

Evaluating sustainability aspects is integral to our due diligencedesign of products, systems, solutions, and services.

guidance. This means considering environmental protection
in decisions about corporate mergers and acquisitions.

Our own mandatory standard aims to ensure the implementation of these norms, stating that all Siemens’ sites are

Our environmental policies require our sites to avoid activities

required to have an environmental management system inthat have negative impacts on local biodiversity, conduct

accordance with ISO 14001. Sites must also operate in com-water risk analyses, and implement water protection mea-

pliance with existing local environmental regulations andsures. These factors are particularly important in vulnerable

our internal environmental guidelines. Internal environmen-

areas. The policies also include mandatory regulations fortal audits are conducted at least once per year to assess andhandling and reducing CO2e emissions and waste, especiallymonitor environmental protection at our sites.

landfill waste.

As a result, all of our sites have an environmental manageLastly, we drive environmental awareness with our Businessment system in place. At least 182 of them, of which 180

Conduct Guidelines and Supplier Code of Conduct, whichhave been audited by external auditors, have environmental

include environmental protection requirements.

management systems that are certified according to the

SUSTAINABLE SUPPLY CHAIN PRACTICESCOMPLIANCE AND ETHICS

ISO 14001 standard. This certification requires, among otherthings, that all employees whose work has an impact on theTargets

environment at these sites be trained in personnel- andWe strive to go beyond legal requirements by managing theenvironmental impact of our business activities throughout

location-specific environmental protection topics.

the value chain. We are also aiming to increase our align-

Training on environmental protection

ment with economic, ecological, and social requirements.

We are continuously working to increase and improve theThis helps us to increase our customers’ competitiveness,knowledge and awareness of our employees of environmental

while simultaneously supporting the environmental compat-

protection. To this end, Siemens has implemented mandatory

ibility of our business. In collaboration with our businessawareness trainings on environmental topics for all employees

partners, we plan to steadily reduce the environmental

as it is covered in the Siemens Business Conduct Guidelines.

impact of our products, systems, solutions, and services. We
do this by creating options for repair, reuse, recycling, andOur information campaigns on World Environment Day andrefurbishment and by minimizing our own use or consumption

Earth Overshoot Day aim to raise awareness of environmen-

of energy, materials, and supplies – while also minimizing

tal protection in a global context. As part of the “Thank You”

emissions.

campaign, we recognize employees who have made exceptional contributions to environmental conservation, and weshare their portraits and success stories on our Siemens
World internal information platform.

SIEMENS SUSTAINABILIT Y REPORT 2023

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Holistic environmental protection

Our Eco Efficiency @ Siemens program
Our Eco Efficiency @ Siemens program addresses environ-

DEGREE, Eco Efficiency @ Siemens,

mental factors specific to our products, systems, solutions,and our environmental initiatives

and services and our production. It also defines objectives

give Siemens a broad range offor improving our environmental management: for example,­instruments to guide our objectives

by encouraging a circular economy and generally demateri-in environmental protection

alizing our business processes.
The program has three components. At the center of theGreen Deal

Responsible Product Development program component is

We continue to pursue the Green Deals @ Siemens project

our Robust Eco Design approach. The program intends towith the goal of evaluating the European Union’s Green

introduce methods and rules for dematerialization along theDeal policy and similar developments around the world andentire value chain. The second component of the program, a

implementing the associated requirements. Specialized

Clean Supply Chain, aims to increase the percentage of sec-

project groups are working to ensure that the legal require-ondary materials we use and to reduce regulated substances

ments are implemented efficiently.

by 2030. The third component, Efficient Own Operations,aims to reduce environmental impacts at our own sites.

Eco Efficiency @ Siemens

Responsible ProductDevelopment

Clean Supply Chain

Efficient Own Operations

Products and solutions are at the core ofour business. Evaluating our portfolio andapplying an Ecodesign approach to relevant product families supports us in selling
eco-efficient products and solutions.

A clean supply chain is central to the journeyof decoupling natural resource use. That is
why we will increasingly source secondary
materials and take action to replace regulated substances according to IEC 62474.

At the heart of our environmental approachis our ability to efficiently manage our­production sites and offices – especially byenhancing waste management practices
and using clean energy.

SIEMENS SUSTAINABILIT Y REPORT 2023

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4.1 Climate action

4.1

Climate action– Our pledge: We are making a contribution to limiting
global warming to 1.5°C

With global temperatures rising, we are committed to help
mitigate climate change. At the same time, Siemens is– Our targets: To reduce emissions from business
operations at Siemens without SHS by 55% by 2025
and by 90% by 2030
– Net Zero operations by 2030 and in our supply
chain by 2050
– Our path: Continuous reduction of emissions frombusiness operations, collaboration with suppliers,

assessing climate-related risks and opportunities and potential measures for adapting to climate change in order toensure business continuity and functioning supply chains.

Our climate-protection governance and policies
Climate-related issues are managed as part of our environmental protection management.

HOLISTIC ENVIRONMENTAL PROTECTION

and a portfolio that helps our customers protect
the environment

For climate protection, the Environmental Protection department supports our businesses in their efforts to reduce CO2eemissions in their operations. The Supply Chain Management

Management approachdepartment helps our business units promote decarboniza-

At Siemens, we recognize the urgency of climate protection.

tion in the supply chain at our suppliers and through our

It is our top priority to contribute to the objectives set out inmaterial purchases. Our business units are responsible for

the Paris Agreement, which includes the goal of limiting

reducing their respective emissions. The Sustainability

global warming to 1.5°C above preindustrial levels. As adepartment is responsible for the consolidated Siemens GHG

global technology company, we acknowledge that ourreporting and our Net Zero Operations Program and defines

activities along the value chain – including procurement,

the necessary management and GHG reporting approaches.

product design, production, and the use of our products andservices – generate greenhouse gas (GHG) emissions (here-

For our approach to and governance for managing climate-­

after CO2e emissions). This is contributing to a global tem-related risks and opportunities, please see our reporting onperature increase and other irreversible changes to our

TASK FORCE ON CLIMATE-REL ATED FINANCIAL DISCLOSURES (TCFD) .

planet and ecosystems.
We have pledged to aim to make an important contribution
The Siemens portfolio is simultaneously supporting theto the decarbonization of the global economy. We aim totransition to a low-carbon economy. We are doing this byreach this goal with the assistance of an appropriate gover-focusing on automation and digitalization, smart infrastruc-nance structure, including strategy and risk management,ture for buildings with decentralized energy systems andand by acting in accordance with the recommendations ofcharging solutions, and intelligent transportation solutions.

the Task Force on Climate-Related Financial Disclosures

For instance, our energy-efficient products and solutions can(TCFD). Our commitment to the initiatives

RE100 (COMPLETE

support the transition from fossil fuels to renewable energy

CONVERSION TO RENEWABLE ELECTRICIT Y),

EV100 (CONVERSION OF THE

sources, and our electrification solutions enable renewable

VEHICLE FLEET TO ELECTRIC VEHICLES), andEP100 (NET ZERO EMISSION

grid integration and the electrification of heat and hydrogen.

BUILDINGS) further supports us in our efforts to achieve ourThis also creates more business opportunities for Siemens.

decarbonization targets.

SIEMENS SUSTAINABILIT Y REPORT 2023

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4.1 Climate action

Targets
Our commitment to climate protection is also reflected in thefield of action Decarbonization in our DEGREE sustainability
framework.

Our 1.5°C Science-Based Target
By joining the Science-Based Targets initiative (SBTi),D Decarbonization

Progress on DEGREE ambition #1:
Net Zero operations by 2030,
with 55% emissions reduction by 2025
and 90% by 2030

Siemens has pledged to reduce emissions from its own

Compared to fiscal 2022, we reduced our Scope 1 andoperations (Scope 1 and 2) by 50% and its value chain

Scope 2 emissions in 2023 by 32 thousand metric(Scope 3) by 15% by 2030 compared to 2019. Our commit-

tons of CO2e or 8%. We reduced our Scope 1 andment to the SBTi is aimed at aligning our business activities

Scope 2 emissions by a total of 50% since fiscal 2019.

with the 1.5°C decarbonization pathway under the terms ofThis reduction is primarily due to the rigorous imple-

recognized climate models to ensure that our greenhousementation of a number of measures and initiatives,

gas emissions will be consistent with the Paris Climate

which are briefly described below.

Agreement’s 1.5°C target.

Decarbonization targets for our own operations

RE100: 80% renewable electricity for Siemens
EV100: 11% electric vehicles at Siemens

Our Net Zero 2030 pledge

EP100: There are currently 33 Siemens sites with noWe have expanded our ambitions beyond the scope of our

net CO2e emissions during regular operations

validated Science-Based Target and shortened our timeline
for decarbonization: As part of our DEGREE sustainability
framework (without Siemens Healthineers), we set a goal for

Progress– 50%

FY 19: 737 kt CO2e

– 55% by 2025
– 90% by 2030

all Siemens production facilities and buildings worldwide
and our vehicle fleet to achieve a Net Zero1 carbon footprint
by 2030. In effect, this means reducing CO2e Scope 1 and 2

emissions in Siemens’ business operations for Siemens without

Emissions reduction as part of the
Net Zero 2030 program(in 1,000 metric tons of CO2e for Siemens without SHS)

Siemens Healthineers (SHS) by 90% by 2030, compared to
2019. To achieve this target, Siemens has pledged to invest
an additional €650 million in its own decarbonization efforts

to
2019

by 2030. Any residual emissions will then be balanced withhigh-quality carbon offsets that meet established standards.

– 50%

737

– 55%
402

To drive additional transparency on our journey to 2030, we

to
2019

370

– 90%
332

set an ambitious interim reduction target for our business

75

operations at Siemens without SHS of 55% by 2025 compared to 2019.

–75

By joining the RE100 initiative in 2021, we reinforced our

FY
2019

commitment to a transition to 100% renewable energy by

Emissions  

2030 at the latest. As part of our commitment to EV100, weare striving to completely convert our motor vehicle fleet toelectric vehicles by 2030. Our EP100 pledge strengthens ourcommitment to only own or lease buildings that have no net
CO2e emissions by 2030.
1

Siemens defines Net Zero as reducing CO2e emissions by 90% and compensating any
residual emissions in the Net Zero target year and any CO2e emissions thereafter withhigh-quality carbon offsets.

SIEMENS SUSTAINABILIT Y REPORT 2023

to
2019

59

Siemens without SHS

FY
2022
Carbon offsets

FY
2023

FY
2025

FY
2030

4.1 Climate action

Decarbonization targets for our upstream anddownstream value chain
Regarding Scope 3 emissions, we are focused in particular
on reducing emissions in our supply chain and in the usephase of our products.
Therefore, we set the target for Siemens without SHS to
reduce the CO2e emissions generated in our supply chain byGreenhouse gas emissions1
Fiscal year
(In 1,000 metric tons of CO2 equivalents)

2023

2022

Scope 1

387

393

Scope 22163

189

Sum Scopes 1 and 2

550

582

Purchases goods & services

9,276

9,557

Capital goods

416

458

Fuel and energy-related activities

111

137

Waste in operations

29

25

Transportation upstream

884

1,118

Business travel

227

122

Scope 320% by 2030 compared to 2020, and over the long term toachieve Net Zero emissions in the supply chain by 2050. This
ambition is also part of our DEGREE sustainability framework.
More details on our decarbonization targets for the supply
chain and DEGREE KPI can be found in

SUSTAINABLE SUPPLYCHAIN PRACTICES .

105

98

Sum of Scope 3 upstream

11,048

11,515Use of sold products

469,180

442,175

Investments

2,960

3,915

Employee commuting

As part of our Science-Based Targets, we pledged to reduce
our entire Scope 3 emissions, upstream and downstream, by
15% by 2030 compared to 2019. This target also includes theuse phase of our products (Scope 3.11 Use of sold products).

Sum of Scope 3 downstream

472,140

446,090

Total Scope 3

483,188457,606

Decarbonization targets in managementcompensation

1
2

As a key element of our management approach, the reduc-3tion of CO2e emissions in our operations is embedded in the3

Siemens including SHS.
We calculate our emissions from electricity consumption on the basis of the CO2
emission factors of local sites according to the market-based approach.
Not part of supply chain emissions reduction.

Long-term Incentive (LTI) compensation component for the

The actions we take within our business processes along

Siemens senior management (without SHS). Managementwith focused actions in our supply chain and expanded value

compensation incorporates long-term performance incen-

chain are key to achieving our targets.

tives based on ESG criteria and is defined under Governancein our DEGREE sustainability framework. The assessment isUsing renewable energy

based on the internal ESG/Sustainability index, which

Even before Siemens joined the RE100 initiative, we worked

includes, among other goals, the reduction of CO2e emis-

continuously to increase the share of electricity we obtainsions.

2

SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION

from renewable sources. Our goal is to use 100% renewableelectricity by 2030. In fiscal 2023, more than 79% of the

Actions and results

electricity we purchased consisted of electricity from renew-

Transparency on greenhouse gas emissions

able sources. As a result, we reduced emissions by a total of
454 thousand metric tons of CO2e per year compared to the

We report our greenhouse gas emissions based on the

average electricity mix. A complete conversion to renewable

Greenhouse Gas (GHG) Protocol corporate standard. Directelectricity is not possible yet due to regulatory restrictions ingreenhouse gas emissions from our own operations (Scope 1)

some countries. Through our membership in RE100, we are

and indirect emissions from purchased electricity and districtworking toward the amendment of these regulations toheating (Scope 2) are calculated for all sites. We also reportmake complete conversion a reality. In purchasing renewable

our emissions in our upstream and downstream value chain(Scope 3), including emissions originating in our supply
chains and the use of our products.

2

Assessment based on the Siemens internal ESG/sustainability index, which is based on
customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning hours.

SIEMENS SUSTAINABILIT Y REPORT 2023

60

4.1 Climate action

electricity, we follow the purchasing guidelines of the WWF’s

additional boost, with BEVs comprising 69% of all new orders

Next Generation Green Electricity initiative.

from May to the end of September of 2023.

Siemens has also entered power purchasing agreements

Reducing building emissions(PPA) to support our supply with renewable electricity. For

Regarding building emissions, we are committed to only

instance, in Kalwa, India, we joined a joint venture that

owning and occupying assets that are net zero carbon in

produces renewable electricity using photovoltaic systems.

operation by the year 2030 as part of our EP100 pledge. We

Another PPA with Enovos Energie Deutschland in Germany’splan to achieve this goal through various measures, includ-South Eifel region will consist of a total of 11 photovoltaic

ing building new CO2-neutral buildings, modernizing existing

systems (currently under construction) with a total capacity

buildings, and leasing office space that produces the lowestof about 200 GWh a year. Südeifel GmbH & Co KG is respon-

possible emissions. Once we have exhausted all possible

sible for the planning, construction, and operation of themeasures, we plan to purchase high-quality carbon offsets tosystems and for marketing the renewable electricity. Siemens

compensate for the remaining emissions. Today 37 of ourwill purchase 39.1 GWh of electricity per year beginning inlocations have no net CO2e emissions during regular operation.

January of 2024.

We issued a guideline that defines the criteria for the
The use of biogas is another component of our decarboni­
zation strategy. This has reduced our annual emissions by
13 thousand metric tons of CO2e compared to the use of
conventional natural gas.

CO2-neutral operation of new buildings and sets maximum
permissible emissions in the supply chain and in construction

activities. In fiscal 2023, we launched our new SRE3 Green
Lease Guideline to improve the ESG performance of all newleases. Following the guideline, the renovation and expansion

In the U.S. we’ve conducted pilot purchases of over 3.6 mil-of our Texas facility is planned to reduce 90% of emissions.

lion liters of sustainable aviation fuel.

In California, a relocation led to using 58% less space andReducing motor fleet emissions

reducing CO2e emissions by 68 metric tons.

We are working to reduce the emissions from our motor

With our New-Normal Working Model, emissions from thevehicle fleet, which comprises around 44,000 vehicles, anduse of our buildings and commuting will be reduced, while

are striving to electrify it completely by 2030 as part of ouremissions from working from home increase. In total, weEV100 commitment. In fiscal 2023, these emissions totaled

calculated emissions from category 3.7, Employee Commut-

about 210 thousand metric tons of CO2e.
We increased the number of electric vehicles to around
4,100 and charging points to around 2,750 in fiscal 2023.
In the UK, we have already made a lot of progress in creating
an exclusively electric vehicle fleet. As a result, 23% of thecompany fleet is now all-electric, and electric vehicles
accounted for 44% of all new car orders at the end of fiscal

ing, at 105 thousand metric tons of CO2e, while emissions

created by working from home amounted to 24 thousand
metric tons of CO2e, largely due to using IT equipment. For
more details, see

WORKING AT SIEMENS .

Using an internal CO2e priceIn the UK and Brazil, we are currently using an internal CO2e
price to manage our decarbonization activities. In the UK, weraised the price per ton of CO2e in fiscal 2023 to GBP50 from

GBP40 to create a clear pathway to increasing CO2e costs. A

2023.

major portion of the proceeds is being used to expand the

In Germany, our commitment to electrification has seen

charging infrastructure for electric vehicles at our new officeprogress. Of our fleet, over 1,700 vehicles are battery electric

location in Farnborough, UK. In Brazil, a so-called shadow

vehicles (BEVs). In fiscal 2023, BEVs comprised 37% of all our

price of US$240 per ton of CO2e was established to support

vehicle orders – a significant increase from the past averages. Initiatives to accelerate electrification, combined withenergy efficiency in buildings and factories and, for example,
to support electrification of the motor vehicle fleet.

the rollout of special-edition electric models, have led to an
3
SIEMENS SUSTAINABILIT Y REPORT 2023

61

Siemens Real Estate.

4.1 Climate action

Upstream emissions

Our Blue GIS portfolio is a prime example of our efforts to

Our upstream emissions total roughly 11 million metric tons

reduce emissions. The portfolio combines the advantages ofof CO2e and are therefore considerably higher than thegas-insulated switchgear with climate-friendly technologies.

emissions from our own business operations. This is because

Using a fluorine-gas-free, non-toxic insulating gas reduces

our supply chain operations are typically more energy-­ the CO2e emissions of medium-voltage switchgear throughintensive than our own operations – primarily because our
supply chain processes raw materials.
A detailed description of our efforts to reduce CO2e emissions in our supply chain is available in

SUSTAINABLE SUPPLYCHAIN PRACTICES .

out their entire lifespan.

Our contribution to climate protection for ourcustomers (customer avoided emissions)
To make our portfolio’s contribution to decarbonization
more transparent, we report the amount of CO2e emissions

CO2e emissions in the use phase of our products

During the use phase of our products, the main source ofCO2e emissions is electricity consumption. This means thatthe key strategies for reducing emissions during the productthat our products and solutions avoid compared to reference

solutions. Customer avoided emissions represent the difference between the CO2e emissions of a Siemens offering andthe CO2e emissions of a baseline or reference scenario.

use phase aim at increasing energy efficiency and promoting
automation and digitalization.

Emissions from the value chain and avoided CO2e emissions
at customers

Our strategic focus on energy efficiency, automation, and(in million t CO2-equivalent)

472.1

digitalization in industry, electrification, buildings, andtransportation allows us to offer our customers productsthat are highly efficient, high-quality, and long-lasting. Our
efficient electric motors are also an important factor in usephase emissions.

~41×
189.9

Emissions produced in the use phase of our products willcontinuously decrease over time due to new product generations and to the ongoing transition to renewable energies
in our users’ markets.
The use of our products sold in fiscal 2023 will generate
469 million metric tons of CO2e over the entire expected
product use phase (Scope 3.11 Use of sold products). We are

11.0

0.6

11.6

Upstream
emissions

Own operations

Cradle to gate

Use phase andinvestments

Avoidedemissions at
customers

using a constant emission factor over the anticipated product use phase. Our scope 3 emissions increased due to an
expansion of the reported portfolio as well as increased sales

Customer avoided CO2e emissions are widely reported in themarket; however, there is currently no universally accepted

volumes. We use the final product calculation method. If westandard for their calculation. Therefore, approaches andapplied the intermediate approach instead, emissions fromresults are often not comparable due to different definitions

the use of our products sold in fiscal 2023 would be consid-

and product portfolios. Siemens is actively involved in aerably lower. These emissions are primarily created by the

number of working groups and associations that are working

electricity used and the product’s lifespan.

to support the standardization of calculations and reportingof customer-related CO2e emissions: for example, we are

involved with the WBCSD and the EU Green Digital Coalition.

SIEMENS SUSTAINABILIT Y REPORT 2023

62

4.1 Climate action

At Siemens we have developed our own method that meets

indirect decarbonization impacts, we refrain from including

our standards for high-quality and transparent metrics. We

the avoided emissions from enabling technologies in our

calculate the avoided emissions for all products and services

overall customer avoided emissions total of 190 million

sold and investments made by Siemens in each fiscal year

metric tons of CO2e emissions.

over the course of their entire use phase at our customers.
This approach aligns with the accounting principles defined

Investment-related emissions

for calculating Scope 3 emissions (Scope 3.11 Use of sold

The financing solutions provided by Siemens Financial Ser-products) in the GHG Protocol. For a detailed description ofvices (SFS) fund infrastructure projects and technologies

our methodology for calculating customer avoided emis-that make a contribution to decarbonization. Specifically,sions, please see

SFS provides equity and debt financing solutions to support

REPORTING PRINCIPLES FOR CUSTOMER AVOIDEDEMISSIONS .

projects with a total installed capacity of 27,500 MW of windenergy, 14,900 MW of solar energy, and 2,400 MW of otherIn fiscal 2023, we helped our customers avoid 190 million

renewable energy production technologies (including battery

metric tons of CO2e emissions. The Siemens technologies

storage) worldwide. In fiscal 2023, SFS Equity Finance also

emissions at our customers are frequency converters, rail-

solutions and technologies that actively remove CO2e fromthat make the largest contribution to the avoidance of CO2e

invested in carbon removal companies to support innovative

bound passenger and freight transportation, and building

the atmosphere.

systems.
Where SFS agreed to finance fossil power generation projects
in fiscal 2023, its financial contributions corresponded to
Avoided emissions at our customers

about 3 million metric tons of CO2e over the expected­duration of the financing of these projects (Scope 3.15

Fiscal Year(in million t CO2-equivalent)

2023

2022

Siemens190

153

investments).

Carbon offsets
Our internal offsetting policy has established binding guide-

When applied alone, this metric does not reflect all of ourlines for procuring carbon offsets. This policy aims to ensure

portfolio’s positive impacts on our partners and customers.

consistency and quality in offset programs. The carbon off-

Software, electrification, and automation technology andsets derived from projects for removing or avoiding CO2eother “enabling technologies” play a crucial role in achieving

emissions must meet minimum quality criteria, including

global environmental goals by providing systems that sup-external certification, selection based on the Oxford Offset-

port the transition to a low-carbon economy. For example,

ting Principles, and internal quality controls. Despite oursolutions from Smart Infrastructure can facilitate the trans-

high standard for all offsetting, physically reducing emissions

formation to an electrification of the global energy system.

remains Siemens’ top priority. We also do not deduct carbon

Even though they do not show a direct decarbonization

offsets from our CO2e footprint in order to maintain transpar-

impact on the product level, the electrification and automation products sold by Smart Infrastructure in fiscal 2023

ency regarding our emissions.

contributed to the decarbonization of power generation

Shaping the climate debate and policy

systems by avoiding 4.6 million metric tons of CO2e emis-

Siemens is part of a number of platforms and initiatives thatsions. The description of our methodology for calculatingallow us to participate in the debate on climate-related issues.

these “enabling” customer avoided emissions can be foundFor example, as part of the UN Global Compact Peer-Learningin ourGroup, we are sharing knowledge and lessons learned on

REPORTING PRINCIPLES FOR CUSTOMER AVOIDED EMISSIONS .

However, because there is no recognized market standard
for a calculation methodology to quantify these enabling or

SIEMENS SUSTAINABILIT Y REPORT 2023

63

various climate-related topics with other companies.

4.1 Climate action

Beyond our various measures and activities, Siemens also
participates in committees and associations where it advocates for more changes in climate policy frameworks in orderto support the following activities:→ Accelerating decarbonization in all sectors through efficientenergy use and electrification and by increasing the shareof energy from renewable sources→ Redesigning energy markets to ensure that adequate
investments are made in sustainable, secure, and efficientenergy systems→ Driving the development of local energy production fromrenewable sources, local energy markets, and sector
coupling→ Accelerating the digitalization of the energy system toenable the integration of renewable energies, continuous
grid optimization, and the integration of prosumers, while
guaranteeing grid stability→ Implementing a CO2e price that enables actual emissions-­

related costs to be integrated into business decision-­making. The price should be high enough to trigger a shift
to low-carbon technologies in line with the pledges madein the Paris Agreement (COP 21).

SIEMENS SUSTAINABILIT Y REPORT 2023

64

4.2 Conserving resources

4.2

Conserving resources– Assessment of our biodiversity footprint as­foundation for further improvements– Accomplished energy reduction as part of ourWater use in water-stressed areas can exacerbate water
scarcity, degrade water quality, and harm aquatic habitats
and biodiversity.

energy efficiency ambition– Implementation of water strategy almost completed

Lastly, biodiversity loss is comparable to the threat of climatechange, because it can disrupt the functioning of ecosystems,
creating far-reaching impacts on people’s health and liveli-

Management approachhoods.

As a company producing a diverse array of products, systems,
world, we strive to reduce the environmental impacts of ourOur governance and policies for conserving
resources

sites through the limited use of resources.

To mitigate these impacts, we made the responsible use ofsolutions, and services, and with office locations around thelimited resources an integral part of environmental protection
Energy is an important resource in production, and its usage

at Siemens. Information on our holistic environmental pro-

reduction is a key strategy for decarbonization. While we aim

tection governance and policies can be found into obtain all our electricity from renewable sources, we

ENVIRONMENTAL PROTECTION .

­recognize that even the generation of renewable electricity,

HOLISTIC

for example, through wind turbines or photovoltaics, canTargets

have negative impacts on the environment because these

Our commitment to conserving resources is also reflected insystems must be manufactured, they change the local

the field of action Resource efficiency in our DEGREE sustain-­landscape when in operation, and they must be disposed ofability framework.

at the end of their lifecycle.
The component Efficient Own Operations of our Eco EffiThe emission of air pollutants like volatile organic com-ciency @ Siemens program aims to reduce the environmental

pounds (VOCs) and ozone-depleting substances (ODSs) can

impact of our sites through dematerialization and circularlead to ground-level ozone and have adverse health effects,

economy principles. We focus on improving our energy effi-

and some are potent greenhouse gases.

ciency and reducing the environmental impact of the waste
we generate. When it comes to environmentally responsible

While many types of waste can be recycled or reprocessed inenergy use, we focus on reducing emissions from powera functioning circular economy, the production of landfill

generation in addition to minimizing energy consumption

waste contributes to land use and greenhouse gas emissions,

itself. As part of our commitment, we aim to improve ourand it influences local biodiversity and can cause healthoverall energy efficiency by 10% by 2030 compared to 2021.1

problems for people and ecosystems. By fostering recycling,
Siemens can also reduce potential impacts in the down-

Building on the success of previous reduction initiatives, ourstream value chain like marine plastics pollution and in thetarget is to achieve a 50% reduction in landfill waste by 2025

upstream value chain from sourcing primary raw materials.

compared to fiscal 2021 as we progress toward zero landfill
waste by 2030. Additionally, we want to continuously
increase our material recycling rate by 2030.1
1

SIEMENS SUSTAINABILIT Y REPORT 2023

65

Siemens without SHS.

4.2 Conserving resources

In addition to our Eco Efficiency @ Siemens program, we
actively pursue resource conservation through other initia-

Actions and results

tives. We have implemented initiatives to manage our envi-

Energy management and energy efficiency

ronmental impact in areas like water, air pollutants, andFor energy-intensive units, we adhere to the ISO 50001

biodiversity. Currently, we have specific targets for water andstandard, which aims to ensure the effective management of

air pollutants at some of our sites.

energy consumption in our operations. Currently, 45 Siemenssites have implemented energy management systems com-

The global goals of the Eco Efficiency @ Siemens program

pliant with ISO 50001. This also requires our sites to conduct

are converted into local targets and measures implemented

regular internal and external energy and carbon audits.

by our sites’ environmental and energy management systems.
To calculate energy efficiency, we analyze our energy consumption in relation to sales development. Due to reduced
energy usage by 9.1% and a growth in sales, we increased

R Resource efficiency

our energy efficiency by 39%1 in fiscal 2023 compared toProgress on DEGREE ambition #8:
Circularity through waste-to-landfill
reduction of 50% by 2025 and toward
zero landfill waste by 2030

fiscal 2021.

39%¹

Landfill waste is the type of waste with the greatest
environmental impact. That’s why we want to reduce

improvement of efficiency in primary &both our hazardous and our non-hazardous landfill

secondary energy use compared to 2021

waste by 50% by fiscal 2025 compared to fiscal 2021
and have included these ambitions in our DEGREE

When looking at Siemens’ total energy consumption, wesustainability framework as well as the Eco Efficiency

differentiate between primary and secondary energy. Our@ Siemens program. With the aid of worldwide work-

primary energy consumption declined 16.5% in fiscal 2023.

shops, we have developed and implemented measures

Our consumption of natural gas and liquid petroleum gas

to improve our waste management. Compared to thedeclined 22.2% compared to the previous fiscal year. Withbase year 2021, we reduced our landfill waste by 15%.

continuing gas shortages, this was a special focus for
Siemens in fiscal 2023. To determine energy consumption by

Progress
FY 21: 0%

our company vehicles, we calculated the consumption of all– 15%

Siemens without SHS– 50% by 2025

cars used by employees and for services and our trucks. In~ –100% by 2030

fiscal 2023, the company fleet consumed about 2,894 thousand gigajoules of fuel, which is a 1% decrease from theprevious fiscal year.
Secondary energy consumption means the purchase ofelectricity and district heating at our sites worldwide. Overall, the consumption of secondary energy decreased by 2.8%
compared to the previous year. Our electricity consumption
now stands at 5,586 thousand gigajoules.

1
SIEMENS SUSTAINABILIT Y REPORT 2023

66

Siemens without SHS.

4.2 Conserving resources

Primary energy

Secondary energy(1,000 gigajoules)(1,000 gigajoules)

Natural gas /liquid petroleum gas

2,927
FY 2022

Fuel oil,gasoline / diesel

2,277

63

FY 2023

FY 20223,010Electricity

232

5,629

FY 2023

FY 2022Total

FY 2022

District heating

FY 2023

2,513

6,792

FY 2023

FY 2022

Emission of air pollutants
We take a comprehensive approach to air pollution by analyzing
local emissions at our various office and production facilities
around the world. We also pay close attention to emissions
from volatile organic compounds (VOC), pollutants fromcombustion processes, and where they are still present,ozone-depleting substances (ODS) at our environmentally
relevant sites. Based on our internal environmental standards,

1,163

5,586

FY 2022

1,016
FY 2023

Total

6,602
FY 2023

Atmospheric pollutant emissions
Fiscal year
(in metric tons)

2023

2022

Volatile organic compounds

250

274

Ozone-depleting substancesof R11 equivalent1

0.044

0.036

1

The R11 equivalent is a measure of ozone depletion potential

these principles and procedures are implemented on a man-

We reduced our VOC emissions by another 9% from thedatory basis.

­previous year to 250 metric tons in fiscal 2023. Total ODS
emissions increased slightly, amounting to 0.044 metric tons

The mandatory environmental management system for ourin fiscal 2023.

sites includes the requirement to establish targets and­measures for reducing air pollutants, and where applicable,

We determined the quantity of nitrogen oxides in our relevant

to address and mitigate their impact.

thermal processes with the aid of computational procedures,
assuming typical combustion conditions. For fiscal 2023,

Our Environmental Protection Standards include a commit-

this yielded a figure of 53 metric tons for our environmen-

ment to phase out ODSs. In fiscal 2023, we held VOC andtally relevant sites compared to 58 metric tons the year

ODS training workshops to increase awareness of the harmful

before. This figure includes nitrogen oxides that are released

effects of air pollutants, improve the data quality at sites,by burning the fuels listed under primary energy.

and provide recommendations for the reduction and phaseout of VOCs and ODSs.

SIEMENS SUSTAINABILIT Y REPORT 2023

67

4.2 Conserving resources

Efficient waste management

In fiscal 2023, the share of material recycling in our total

The environmental relevance of waste depends on the typewaste stream (excluding construction waste) remained atof waste and the method used for its disposal. To reduce81%.

hazardous waste, we work on increasing our material recycling rate and reducing our landfill waste. To enhancematerial efficiency in our production processes, we implement practices like regrinding sprue parts at plastic molding

Material Recycling(in %)

sites.
To support resource efficiency in production, our sites track

FY 202281

waste data using a standard process that undergoes regular
audits that aim to ensure accuracy and compliance. In addi-

Totaltion, we distinguish between hazardous and non-hazardous
waste is further subdivided into material recycling, thermal
construction or demolition work are reported separately,

81
Total

Share of material recycling
in total waste1

waste. The treatment of hazardous and non-hazardous
recovery, thermal disposal, and landfill. Waste flows fromFY 2023

1

Excluding construction waste.

because these waste categories are created independent of

Water use and risk analysis

production. We then go beyond the monitoring of our own

Water is one of humanity’s most important resources. For

activities to analyze the waste generated throughout our

this reason, Siemens has been analyzing water scarcity,

upstream supply chain.

water pollution, local fire risks, climate change, and flooding
and precipitation patterns at our sites for several years. We

The volume of non-hazardous waste generated by Siemens’consider these analyses in our business decisions: for exam-own operations declined by 4% compared to the previous

ple, when we select the location for a new site or implementfiscal year, whereas the volume of hazardous waste

precautionary measures.

decreased in the same period by 8%. Construction waste
increased by 88% in fiscal 2023, mainly driven by the con-

We establish water targets at multiple sites to account for the

struction site at our Campus in Erlangen. Compared to fiscal

specific local environment and to drive effective mitigation

2022, the total waste volume increased by 2% in fiscal 2023.

measures. At the corporate level, we have implemented adefined water strategy, and have conducted risk assessments
to shape local water targets.

Waste(in 1,000 metric tons)

Our individual sites then implement their own water initiatives in alignment with these targets. For instance, bygreening the roofs of our Siemens Campus in Erlangen, we

34
Construction waste
13
Hazardous
waste

215
Non-hazardouswaste

FY 2023

261
total

return rainwater back into the natural water cycle throughevaporation, rather than disposing of it in the sewer system.
The aim of our water strategy is to minimize the adverse
local effects of our water consumption and use. In fiscal
2022, we expanded the analysis of our water-related risks toinclude our supply chain. Based on this analysis, we derived
further measures for sustainable water use. Siemens India as
an example achieved sustainable water management bydriving various measures, including utilizing water-efficient

SIEMENS SUSTAINABILIT Y REPORT 2023

68

4.2 Conserving resources

appliances, installing rainwater harvesting systems at four
major factory locations, and building water reclamation

Water discharge(in million m3)

facilities (zero liquid discharge facilities). These measuresenable us to reduce fresh water consumption by, among
other things, utilizing treated water for landscaping and

1.03
Surface water
FY 2023

toilet flushing.

13.56

Our water risk analysis begins with an assessment of our

3.33
3rd-party water

total

9.20
Groundwater

environmentally relevant sites using the Aqueduct Water
Risk Atlas from the World Resources Institute (WRI). With theaid of an internal analytical tool, Siemens assesses local-levelrisks resulting from our sites’ activities, and then assesses
them in relation to regional water risks. Sites with a high-risk

Initiatives for greater biodiversity

assessment need to define targets to reduce the level of risk.

The aim of Siemens’ environmental management system is

In fiscal 2023, 96% of our sites implemented this water

to work to preserve a diverse natural environment. Biodiversity

strategy.

and conservation are defined in our environmental policies
as environmental aspects at the company level that need to
be assessed locally. The objective is to ensure that the businessactivities at our factories and offices do not reduce species

96%

diversity beyond an unavoidable minimum. This approach ispart of our location planning, which also includes initiatives
to foster biodiversity by creating habitats that provide bothof our sites have implemented

shelter and food. Examples range from planting native vegeta-a water strategy

tion, creating homes for insects, birds, mammals, reptiles,
and amphibians to taking inventories of the local biodiversity

Our water strategy provides foundational support to ourat our sites. Two locations in Germany are using sheep ascompliance with the Do No Significant Harm (DNSH) criteria“lawn-mowers” to reduce our impact on flora and fauna by

for sustainable use and protection of water and marine

maintaining green spaces. Siemens employees are actively

resources in the EU Taxonomy.

engaged in protecting and increasing biodiversity at theirlocations: for example, by volunteering for tree-planting

In fiscal 2023, our total water withdrawal was 14.26 million m³.

campaigns and participating in cleanup events.

The largest share of our water use is for cooling processes.
These processes leave the water’s chemical quality largely

For our Siemens Campus in Erlangen, we have developed aunchanged, so that the water can be returned directly to thecomprehensive biodiversity concept that enables us toreceiving water body or groundwater. In fiscal 2023, our­preserve existing trees, plant native fruit trees, and create

water discharge was 13.56 million m .

suitable nesting habitats for many species, among other3

initiatives.
Water consumption is a water substream with a major environmental impact, because the water is no longer available

To further develop our approach to biodiversity, we havefor the ecosystem’s use. Siemens’ water consumption isentered a strategic partnership with The Biodiversity Consul-

mostly linked to evaporation and is comparably small, withtancy to help Siemens scientifically assess our biodiversity

just 0.51 million m of total water consumption. Of thisfootprint. This assessment was conducted in fiscal 2023 andamount, 0.07 million m3 are accounted for by water con-covered the biodiversity impacts of our own operations andsumption in water stress areas.

those of our upstream value chain: for instance, impacts of3

the raw materials we purchase. The assessment and thetransparency we acquired on our biodiversity footprint are
an important step toward developing our biodiversity strategy.
SIEMENS SUSTAINABILIT Y REPORT 2023

69

4.2 Conserving resources

Incidents relevant to the environment and fines
Siemens uses a worldwide reporting system to document
environmental incidents. In fiscal 2023, we recorded nosignificant incidents resulting in fines over US$10,000. We
recorded 14 minor environmental spills or gas losses with
low impacts. They involved spills of chemicals, diesel,
hydraulic oils, or resins and losses of coolant gases.

Stakeholder involvement in conserving resources
Stakeholder engagement is a crucial aspect of our environmental protection efforts, and we utilize various channels toengage in regular stakeholder dialogs, including with local
communities. One of the communications channels used is
our internal Environmental Protection Newsletter, where weshare updates, achievements, and upcoming initiatives
related to environmental protection. We also promote theuse of best practices and knowledge transfers within
Siemens through global workshops in order to facilitate ourefforts in this regard.
For more information about the methods used, environmental
reporting, and environmental data collection, see
METHODOLOGY .

SIEMENS SUSTAINABILIT Y REPORT 2023

70

REPORTING

4.3 Product stewardship

4.3

Product stewardship– Increase relevant product families for Robust Eco
Design– Increase coverage rate of Robust Eco Design
We focus on resource efficiency

approach across relevant product families.

– Significant increase of lifecycle assessment (LCAs)Management approachover a product’s entire lifecycle

At Siemens, we are aware that product design has far-reaching

Our governance and policies for productstewardshipeffects on nature and our environment. As a market leader

The Environmental Protection department is responsible forand technology pioneer in many fields, we take a keen interest

planning, preparing, organizing, and implementing rulesin the long-term impacts of our portfolio. Ensuring theand regulations for product stewardship. It aims to ensure

environmental compatibility of our products, systems,

consistency, transparency, implementation, and compliancesolutions, and services is a key priority.

with regulatory frameworks within its areas of responsibility
and reviews their effectiveness.

Extracting and processing finite resources contribute to as
much as 90% of global biodiversity loss and approximately

With our Ecodesign approach, we aim to contribute to climate

50% of global CO2e emissions1. Both of these consequences

protection at our customer sites and increase dematerialization

can impact the composition, resilience, productivity, andthrough our circularity approach and our digital portfolio

carrying capacity of natural and managed ecosystems as

elements.

CLIMATE ACTIONCOMPANY PROFILE

well as people’s livelihoods. In 2023, the global economy
was only 7.2% circular, meaning that just 7.2% of all material

Fundamental Ecodesign approaches at Siemens include

inputs into the economy were secondary materials.

increased resource efficiency and decarbonization during

2

production, higher productivity and efficiency during use,
As such, we aim to reduce the environmental impact of ourand product designs that support circularity. In accordance

products, systems, solutions, and services as early as thewith the international standards IEC 62430 Environmentallydesign phase and minimize the need for raw material

Conscious Design for Electrical and Electronic Products,

extraction. Our Ecodesign approach considers relevant eco-

ISO 14006, and ISO 14009, Siemens applies the Robust Eco

logical factors during product planning and design, because

Design (RED) approach. The Ecodesign Appendix, which is a

this phase determines up to 80% of a product’s lifecycle

mandatory component of Siemens’ Environmental Protection

environmental impact. We also address these challenges

Standard, provides a framework for assessing and determining

through various initiatives: for instance, our Tech for Sus-a product’s environmental impact throughout all phases of

tainability Bootcamp 2023, Ecodesign learning programs,

its lifecycle. It also provides a framework for the environmen-

and our Sustainability Business portfolio.

tally compatible design of products, systems, solutions, and

3

1
2
3

IRP (2019). Global Resources Outlook 2019: Natural Resources for the Future We
Want. (Global Resources Outlook | Resource Panel).
https://www.circularity-gap.world/2023.
Ecodesign your future: How Ecodesign can help the environment by making products
smarter. Publications Office of the European Union (https://op.europa.eu/en/­
publication-detail/-/publication/4d42d597-4f92-4498-8e1d-857cc157e6db).

SIEMENS SUSTAINABILIT Y REPORT 2023

71

4.3 Product stewardshipservices. The implementation of this standard is the respon-products, systems, solutions, and services by 2030. In fiscal

sibility of the heads of Siemens’ operating units and is an2023, 65% of our third-party revenue was defined as rele-

integral part of the company’s annual environmental review

vant for our RED approach, compared to 57% in fiscal 2022.

according to ISO 14001.

In addition, our goal is to increase the number of LCAs and
EPDs available. As a result, we are continuously expanding

Targets

our database for monitoring and communicating the envi-

Our Ecodesign approach is also embedded in the field ofronmental performance of our products, systems, solutions,action Resource efficiency in our DEGREE sustainability

and services.

framework. The main objective is to introduce methods andrules for circularity and dematerialization along the entire
value chain.

R Resource efficiency

R Resource efficiency

Progress on DEGREE ambition #6:
Next-level Robust Eco Design for 100%of relevant Siemens product families
by 2030

Progress on DEGREE ambition #7:
Natural resource decoupling throughincreased purchase of secondary
materials for metals and resins
We want to increase the procurement of secondary
materials for metals and resins and implement a­circular economy. In fiscal 2023, we purchased 35%

The quota of Robust Eco Design implementation forof the metals – primarily iron, copper and aluminum

the relevant portfolio elements currently stands atused in the manufacture of our products – from

51% compared to 35% in the year 2022. Only whenrecycled sources. This percentage is the weighted

the rate of implementation reaches 100% can it beaverage of the secondary material proportions of theassumed that all relevant product families have com-three metals based on average regional or global

pleted each individual phase for Robust Eco Design.

values from literature values and supplier information. Last year this share was 34%. Moreover, in fiscal

Progress
FY 21: 26%

2023 we sourced < 1% of the resins used to make our
51%

100% by 2030

products from recycled sources. We continue to workwith the recycling chains for technical plastics

Siemens without SHS­currently being established, and on further developing
product specifications as well as material standards inthis context.

Applying RED in all relevant product families

Progress

Our aim has been to intensify the use of lifecycle assess-

Metals 35%

ments (LCAs) and environmental product declarations

Resins <1%(EPDs), which will allow us to identify environmentallycompatible design alternatives that take circularity into
account and can be integrated into product specifications.
Our ambition is to apply the RED approach to all relevant4

4

Relevant: All products, systems, solutions, and services whose sales are not negligible,that will not be discontinued in the foreseeable future, or are not part of a confirmed
spin-off.

SIEMENS SUSTAINABILIT Y REPORT 2023

72

Siemens without SHS

4.3 Product stewardship

Expanding our use of secondary materials→ Extend the lifespan of our products, systems, solutions,

We want to proportionately increase our procurement ofand services through proper maintenance, repairability,

secondary metal and resins by 2030. To achieve this, we areand upgradability

concentrating on suppliers of raw materials and semifinished→ Maximize the value and benefit from our products, systems,

products that can be directly influenced by our purchasing

solutions, and service by implementing efficient return

specifications.

logistics systems, promoting take-back initiatives, andLimiting declarable substances

adopting As-a-Service business models.

At the same time, we want to continuously reduce declarable

RED phases

substances in all our products. Measurements and more

The RED approach involves three phases:

details can be found in the section “Actions and results.”→ Phase 1 – Application perspective

Actions and results

The goal and scope of requirements for relevant product

Our program Eco Efficiency @ Siemens has defined special

families are defined, and relevant product families areenvironmental protection priorities in the categories Robust

analyzed in terms of the environmental parameters

Eco Design and Clean Supply Chain.

required by markets and customers. They are then catego-

Robust Eco Design for future-fit product families
RED focuses on the systematic application of Eco­design to all

rized based on their underlying technology and design
specifications so they will meet the needs and demandsof stakeholders.

lifecycle phases. The aim is to identify strategies that make aproduct’s life as environmentally compatible as possible and→ Phase 2 – Solid foundationthat allow all materials to be recycled. At the same time,

The environmental impacts of product families are quan-material and energy flows and losses will be reduced to thetified using LCAs based on ISO standards. EPDs are usednecessary minimum.

to communicate a product’s environmental impact andother environmental indicators that measure circularity.

RED measures

This phase provides the basis for the determination of

The RED approach is designed to identify potential measuresenvironmental footprint improvement measures. For

for improving the environmental impacts of our products,

details, see our

LCA EPD BROCHURE

systems, solutions, and services, for example, to:→ Phase 3 – Dematerialization→ Improve product resource efficiency by reducing material

The preceding assessments are conducted to identify

inputs or replacing physical components and functions

environmental design alternatives, the results are inter-with digital solutions, otherwise known as dematerialization

preted, and where feasible they are incorporated into

→ Optimize product energy efficiency by minimizing energy

environmentally optimized design specifications. Typicalconsumption during use and designing environmentally

Ecodesign strategies applied in this phase include increas-sound operation modes

ing the use of secondary materials (recyclates), product→ Enhance product durability and reliability by selecting

repairability, upgradeability, or suitability for refurbishment,materials that help extend a product’s lifespan and main-

remanufacturing, and recycling, and the evaluation oftain its functionality

new business models that enable take-backs after a
product’s use.

SIEMENS SUSTAINABILIT Y REPORT 2023

73

4.3 Product stewardship

Siemens’ vision of an almost completely closed lifecycle when applying our RED approach
Production

Use

Re
f

e n t an dhm
bisturingur nufacaemrEcodesigna nd
Repair

Raw material
extractionsereu

Manufacturing

Recycling

Waste recovery

Implementation rate of our RED approach

the implementation rate KPI for RED is calculated as the ratio

In line with our DEGREE ambition, we consistently monitor

of the total RED-conformant revenue share to the total reve-our progress with implementing the Siemens RED approachnues of the relevant product families.

across the relevant product families in our business units,
excluding Siemens Healthineers (SHS), and supporting busi-

The RED approach allows us to use good practice results tonesses such as Real Estate.

identify practical Ecodesign measures in a product family
that can then be used in other product families. Scheduled

To do this, we classify products, systems, solutions, and ser-community meetings of product-related environmental

vices into groups that share similar technical characteristics,

p rotection practitioners facilitate this good practice­and we evaluate them based on RED criteria. The rate of­knowledge-sharing across our business units. We also hostimplementation of the individual RED phases is then assessed

Ecodesign case studies on an internal wiki to facilitatein each of the relevant product families. If a criterion in a RED

knowledge-sharing between our business units.

phase has been met, all the revenue generated by the productis considered RED-conformant. If a criterion is only partially

Focus in fiscal 2023

met, 25% of the revenue is considered RED-conformant. If a

As a critical precondition for implementing our RED

criterion is not met, the corresponding revenue is disregarded.

approach, we worked on developing automated solutions to
calculate LCAs and generate EPDs in fiscal 2023. This aims to

The RED implementation rate for each product family is thenfacilitate Ecodesign comparisons and the systematic use ofdetermined by averaging the fulfillment levels of the individual

LCAs and EPDs at Siemens. We also published an

RED criteria. We calculate the revenue share of our RED-con-

ON ECODESIGN to ensure alignment, increase transparency, andformant portfolio by multiplying the RED implementation

accelerate knowledge generation on Ecodesign.

rate with the revenues of the given product families. Lastly,

SIEMENS SUSTAINABILIT Y REPORT 2023

74

INTERNAL

4.3 Product stewardship

Clean Supply Chain: Using secondary materials
to decouple natural resource use

Currently, up to 50% of our revenue (Siemens without SHS)

Building on the RED phase dematerialization, the Clean

contain substances or groups of substances regulated bycomes from products, systems, solutions, and services that

Supply Chain category in the Eco Efficiency @ Siemens

IEC 62474. We are continuously seeking ways to replace­program maps our path to decoupling natural resource use

these substances whenever technically possible and reason-

from our economic growth.

able.

In fiscal 2023, we emphasized making a continuous material

By systematically applying our approaches to environmen-

change from plastics made from fossil fuels to sustainable

tally compatible product, system, solution, and service

and secondary thermoplastics. For example, we introduced

design and closely collaborating with our business partners,

a sustainable polyamide 6 composite with a recycling con-

we intend to comprehensively support the replacement oftent of 25% to 75% that engineers can apply in their designs.

declarable substances and decouple economic development

This can lead to a reduction of the product carbon footprint

from resource consumption.

of 10% to 35%, depending on the application. We also developed an internal standard for sustainable plastics and usingof biobased resins made from waste.

Risk-aware handling of declarable substancesTraining and stakeholder involvement in productstewardship
We actively involve our customers in our Ecodesign
approaches. Our business units reach out to customers to

Another essential aspect of product stewardship is thediscover their specific requirements for Ecodesign measures

responsible handling of substances that are potentially haz-and to get feedback on measures already implemented.

ardous for the environment or health, like those regulated byRegular workshops with selected customers like wholesalers

the EU REACH regulation. We modify internal IT procedures

are conducted to poll their opinions on required or ­performed

and material compliance processes with the aim of making

Ecodesign measures.

the use of these substances safer. We are also working proactively to substitute and reduce them wherever we can. We

Since fiscal 2022, the two-part Circular Design learning pro-work to continuously increase the utilization of the digitalgram has been available online to all Siemens employees.

industrial substance database BOMcheck by our suppliers.

In addition, we developed the Leading in Sustainability as

We comply fully with the declaration requirements of inter-part of the Top Management Leadership Program, a learning

national legislation and IEC 62474, and we are constantly

program for our leaders with also a focus on the circular

optimizing our interfaces and automated workflows.

economy. We maintain internal stakeholder engagement andraise awareness with measures like environmental protection
newsletters and environmental information campaigns.

SIEMENS SUSTAINABILIT Y REPORT 2023

75

4.4 EU taxonomy

4.4

EU Taxonomy

The information for Siemens’ EU Taxonomy reporting accord-

For each environmental objective, a catalog of relevant

ing to article 8 of the EU regulation (EU) 2020/852 andeconomic activities has been defined. When a businessassociated delegated acts is disclosed in its Combined Man-

activity meets the definition of an economic activity, it isagement Report – the following chapter provides further

referred to as Taxonomy-eligible. EU Taxonomy alignment

information.

then requires the fulfillment of both the criteria for Substantial Contribution (SC) and the criteria for Do No Significant

The EU Taxonomy regulation was introduced to propose aHarm (DNSH), together called Technical Screening Criteria

framework to facilitate sustainable investment as part of(TSC). Moreover, the company involved must observe Mini-

EU’s efforts to implement the European Green Deal. It is amum Safeguards (MS), e.g., compliance with human rights

key element of the European Commission’s action plan toprinciples.

achieve the EU’s ambitious goal of carbon neutrality by 2050
by redirecting capital flows towards sustainable activities

The EU Taxonomy’s catalog of economic activities includes

and help navigate transition to a low carbon economy.

business activities with the most potential for contributing to
the six defined environmental objectives. If a business activ-

The Taxonomy is a classification system which aims to identify

ity does not fall within the scope of the EU Taxonomy, it does

if a company’s activities are considered as environmentally

not give an indication that such businesses could not besustainable.

sustainable. For the reporting year 2023, EU Taxonomy
reporting is limited to the first two environmental objectives

Siemens supports the EU agenda’s general objectives of(climate change mitigation and climate change adaptation).

carbon neutrality by 2050 and the direction of capital flows
towards sustainable activities. Siemens also supports the EU

With expansion of the criteria on all six environmental objec-

Taxonomy by improving transparency helping scale up

tives for fiscal 2024, we expect an increased EU Taxonomy­sustainable investment and achieving the Union’s decarbon-

coverage for our portfolio in the next year.

ization and environmental objectives.

EU Taxonomy at a glance

EU Taxonomy in the context of our Industrial
Business

The EU Taxonomy’s classification system defines economic

Siemens’ Industrial Business, which includes Digital Indus-

activities as environmentally sustainable based on their rele-

tries, Smart Infrastructure, Siemens Mobility, and Siemens

vance to one of the following six environmental objectives

Healthineers, is developing a wide range of solutions for aand their fulfilment of predetermined criteria:

path to a sustainable future.

I. Climate change mitigation

Digital Industries (DI) offers a comprehensive portfolio of

II. Climate change adaptation

products, services and solutions for automation and soft-

III. Sustainable use and protection of water and marine

ware for the discrete and process industries. It enables

resources­customers to optimize their entire value chain from productIV. Transition to a circular economy

design, development, and production facility modeling to

V. Pollution prevention and control

production operation and after-sales service. The Digital

VI. Protection and restoration of biodiversity and ecosystems

Industry portfolio enhances efficiency, conserves resources,
and reduces greenhouse gas emissions.

SIEMENS SUSTAINABILIT Y REPORT 2023

76

4.4 EU taxonomy

The EU Taxonomy’s current eligibility rules for reporting on

Siemens Mobility enables transportation operators aroundclimate change mitigation and adaption cover the Digital

the world to make their trains and infrastructure smart andIndustries portfolio to a limited extent only. With the appli-

electrified, and contributes to efficient, low-carbon transpor-

cation of the four new environmental objectives for fiscal

tation. Leveraging the advantages of digitalization, it helps

2024 and amendments to existing objectives, an increased

increase sustainable value creation throughout the entire

coverage of business activities is expected.

lifecycle, improve passenger comfort, deliver 100% system
availability, and maximize network capacity.

The Smart Infrastructure (SI) portfolio includes a wide rangeof products, services, solutions, and software for all aspects

The Siemens Mobility portfolio is almost fully eligible,of grid management, electrical products, building automation,­contributing to climate change mitigation through manufac-

fire protection and security, e-mobility charging infrastructure,turing of low-carbon technologies for transportation, andand energy efficiency. It offers smart connections for energy

providing infrastructure for rail transportation and infra-

systems, buildings, and industries.

structure enabling public transport.

An important portion of this portfolio is devoted to integrating

Siemens Healthineers (SHS) is a global provider of healthcare

renewable energy into the power grid, increasing electromo-

products, solutions, and services with holistic system com-bility, enhancing energy efficiency in buildings, and making

petence. The portfolio serves clinical decision-making andthe measurement of infrastructure more transparent using

treatment pathways definition – from in vitro and in vivo

digital tools and data management solutions. Smart Infra-

diagnostics to image-guided therapy and innovative cancer

structure contributes to electrification with a broad portfolio

treatment. The comprehensive portfolio supports customersof low- and medium-voltage power distribution and electricalalong the entire care continuum, from prevention and early

installation equipment. The Smart Infrastructure portfolio

detection through to diagnosis, treatment, and follow-up

supports driving decarbonization, resource efficiency, andcare.

the people-centricity of energy systems, buildings, andindustries by connecting the real and digital worlds.

Siemens Healthineers concluded in its analysis of contributing
activities, that the current climate-related objectives are not

A material portion of the Smart Infrastructure portfolio is

applicable to manufacturing of medical products, which iseligible for climate objective-related EU Taxonomy reporting,Siemens Healthineers’ primary activity. Taxonomy-relevant

especially energy-efficient equipment for buildings and ser-capital expenditures are for the most part reported undervices for energy performance of buildings. With the addition

selected economic activities referring to construction andof more activities for climate change mitigation and for thereal estate. With the release of the four new environmental

other environmental objectives, we expect an increased

objectives, Siemens Healthineers expects an increased

coverage of our business activities for fiscal 2024.

­coverage of its economic activities.

Siemens Mobility (SMO) combines all Siemens businesses in

Eligibility assessment at Siemens

the area of rail passenger and freight transportation. The

The purpose of the eligibility assessment is to determine if

portfolio includes products and solutions related to rolling

Siemens’ business activities fit the description of one of thestock (like trains and locomotives), rail infrastructure (includ-

economic activities specified by the EU Taxonomy. If a

ing rail automation and electrification), and the service

Siemens business activity matches, it is then classified asbusiness, e.g., maintenance and digital services. Its offerings“eligible”. A business activity that is “non-eligible” is notcomprise software solutions, like train planning systems,

within the scope of the EU Taxonomy reporting. The eligibility

Mobility-as-a-Service (Maas), reservation management andassessments were conducted decentrally in the businesses inticketing, and a turnkey business that bundles consulting,an interdisciplinary manner involving experts, for instanceplanning, financing, constructing, servicing, and operatingfrom technical, strategy, or sustainability departments.

of complete mobility systems.

SIEMENS SUSTAINABILIT Y REPORT 2023

77

4.4 EU taxonomy

For fiscal 2023, Siemens’ Industrial Business reported its

outlined in the Delegated Acts, the assessment was con-

Taxonomy-eligible revenue shares under the following EU

ducted by technical experts on the product, site, project and/

Taxonomy activities of climate change mitigation:or supplier levels.

Economic Activity

Industrial
Business

Minimum Safeguards (MS): An additional requirement for EU

3.1

SI

Taxonomy alignment is compliance with MS as outlined in

Manufacture of renewable energy technologies

3.3	Manufacture of low carbon technologies fortransport

SMO

3.5	Manufacture of energy efficiency equipment forbuildings

SI

3.6

Manufacture of other low-carbon technologies

DI, SI

4.9

Transmission and distribution of electricity

SI

Article 18 of the EU Taxonomy Regulation. The MS criteria
require business activities to be compliant with the following
regulations:→ OECD Guidelines for Multinational Enterprises;→ UN Guiding Principles on Business and Human Rights,

6.14 Infrastructure for rail transport

SMO

6.15	Infrastructure enabling low-carbon road transportand public transport

SMO, SI

core conventions identified in the International Labor

6.16 Infrastructure enabling low-carbon water transport

SI

Organization’s (ILO) Declaration on Fundamental Rights

7.3	Installation, maintenance and repair of energy­efficiency equipment

SI

7.4	Installation, maintenance and repair of charging­stations for electric vehicles in buildings (and­parking spaces attached to buildings)→ The International Bill of Human Rights.

SI

Based on its implemented group-wide structures on risk

including the principles and rights set out in the eightand Principles at Work,analysis, corporate guidelines and due diligence processes

7.5	Installation, maintenance and repair of instruments
and devices for measuring, regulation and controllingenergy performance of buildingsSI

and mechanisms, Siemens is fulfilling the MS requirements.

7.6	Installation, maintenance and repair of renewableenergy technologies

SI

For fiscal 2023, Siemens’ Industrial Business reported

8.2	Data-driven solutions for GHG emissions reductions

DI, SI

Taxonomy-­aligned revenue shares under the following EU

9.3	Professional services related to energy performanceof buildings

SI

Alignment assessment at Siemens
In the next step, Siemens’ Taxonomy-eligible activities were
evaluated against the technical screening criteria for Substantial Contribution (SC) and Do No Significant Harm(DNSH) according to the Delegated Acts. Siemens alsoneeded to prove its compliance with Minimum Safeguards:
namely, on human rights and good business conduct rules.

Taxonomy activities of Climate change mitigation:
Economic Activity

Industrial
Business

3.1	Manufacture of renewable energy technologies

SI

3.3	Manufacture of low-carbon technologies for­transport

SMO

3.5	Manufacture of energy efficiency equipment forbuildings

SI

3.6

Manufacture of other low-carbon technologies

DI

4.9

Transmission and distribution of electricity

SI

6.14 Infrastructure for rail transport

SMO

Substantial Contribution (SC): Following the eligibility

6.15	Infrastructure enabling low-carbon road transportand public transport

SMO, SIassessment, the alignment of all eligible business activities

6.16 Infrastructure enabling low carbon water transport

SI

with the SC criteria outlined in the respective Delegated Acts

7.3	Installation, maintenance and repair of energy­efficiency equipment

SI

7.5	Installation, maintenance and repair of instruments
and devices for measuring, regulation and controllingenergy performance of buildingsSI

relevant SC criteria and the respective business activity.

7.6 	Installation, maintenance and repair of renewableenergy technologies

SI

Do No Significant Harm (DNSH): Once a business activity

8.2	Data-driven solutions for GHG emissions reductions

DI, SI

9.3	Professional services related to energy performanceof buildingsSI

was assessed. This was conducted and documented at thehighest appropriate reporting hierarchy level, such as businesssegment, product family or project level – depending on thedemonstrated a SC, its compliance with the DNSH criteria
was assessed. Based on the specific regulatory requirements

SIEMENS SUSTAINABILIT Y REPORT 2023

78

4.4 EU taxonomy

KPI results for the reporting year

Capital expenditures KPI

The key performance indicators in this section were deter-

The CapEx KPI shows the ratio of CapEx from Taxonomy-­mined based on Commission Delegated Regulation (EU)eligible and/or aligned economic activities to the total CapEx,

2021/2178 in conjunction with the International Financialreflecting additions (including additions from business

Reporting Standards applicable to the Consolidated Financial

combinations) to other intangible assets and property, plant

Statements. Based on the eligibility and alignment assess-and equipment in accordance with Note 13 to the Consoli-ments described above, the baseline values for revenue,

dated Financial Statements. In the reporting year, 34.5%

capital expenditures (CapEx), and operating expenditures(€1.3 billion) of Siemens’ CapEx were eligible, and 12.2%(OpEx) were analyzed and, if applicable, mapped to the(€0.5 billion) were aligned. The aligned CapEx is composed

respective EU Taxonomy activities. Allocations were also

as follows: a majority of €0.4 billion is related to additions toapplied based on eligible and/or aligned revenue in order toproperty, plant and equipment, the remainder pertains tolink capital expenditures and operating expenditures to theinternally generated intangible assets and capitalized right-

respective activities. Siemens implemented a supporting IT

of-use assets.

tool for the EU Taxonomy technical eligibility and alignment
assessments and associated documentation. To avoid doubleThis aligned CapEx includes €116 million related to a CapEx

counting, the mapping was consistently made to only one

plan, associated with building projects to be finalized byeconomic activity.

­fiscal 2028, summing up to a planned total volume of€1.4 billion (capitalizable and non-capitalizable costs). The

Revenue KPI

buildings are designed to minimize energy use and carbon

The revenue KPI shows the ratio of revenue from Taxonomy-­emissions (CCM 7.7).

eligible and/or aligned economic activities to the total revenue
in the Consolidated Statements of Income for the reporting

Acquisition and ownership of buildings (CCM 7.7) related toyear. Based on an assessment of the Siemens business port-

Siemens’ real estate portfolio represents the largest portion

folio, Taxonomy-eligible revenue accounted for 20.3% andin overall CapEx eligibility. The difference between Taxonomy-­

Taxonomy-aligned revenue for 16.5% of total revenue. Thiseligible CapEx and Taxonomy-aligned CapEx is impacted bytranslates into €15.7 billion in Taxonomy-eligible revenue(i) only partial availability of information on energy perfor-and €12.8 billion in aligned revenue.

mance certificates for our global portfolio and (ii) energy
certificates below the required threshold defined in theTaxonomy-eligible and aligned economic activities wereSubstantial Contribution criteria for the energy efficiency of

primarily driven by the (i) Manufacture of low-carbon tech-buildings.

nologies for transport (Climate Change Mitigation, CCM
3.3), (ii) rail transportation infrastructure (CCM 6.14), (iii)

Operating expenditures KPIInfrastructure enabling low-carbon road transport and public

The OpEx KPI shows the ratio of OpEx from Taxonomy-­transport (CCM 6.15), all associated with Mobility busi-

eligible and/or aligned economic activities to total OpEx. The

nesses, as well as (iv) energy-efficient building technologies

total OpEx comprises direct non-capitalized costs related to(CCM 3.5) and (v) services for energy-efficient building

research and development, building renovation measures,

technologies (CCM 7.5), both related to Smart Infrastructure

short-term leases, maintenance and repairs, and any otherbusinesses.

direct expenditures relating to the day-to-day servicing ofassets of property, plant, and equipment per Annex I of the

The difference between Taxonomy-eligible revenue andCommission Delegated Regulation (EU) 2021/2178. 12.4%

Taxonomy-aligned revenue is mainly due to DNSH criteria(€0.9 billion) of Siemens’ OpEx were eligible and 8.2%

related to pollution prevention as part of Appendix C, which(€0.6 billion) were aligned.

go beyond existing national regulation. This is mainly
because additionally required documentation is not completely available yet.

SIEMENS SUSTAINABILIT Y REPORT 2023

79

4.4 EU taxonomy

The majority of eligible and/or aligned expenditures relate toprocesses and assets associated with the economic activities
described for the revenue KPI: (i) Manufacture of low-carbon
technologies for transport (CCM 3.3) and (ii) rail transportation
infrastructure (CCM 6.14). These two activities account forhalf of eligible OpEx and the majority of aligned OpEx.
This aligned OpEx includes €3 million related to a CapEx
plan, associated with building projects to be finalized byfiscal 2028, summing up to a planned total volume of­€1.4 billion (capitalizable and non-capitalizable costs). The
buildings are designed to minimize energy use and carbon
emissions (CCM 7.7).
Corresponding to revenue, the difference between Taxonomy-­eligible OpEx and Taxonomy-aligned OpEx relates mainly tothe documentation of DNSH criteria for pollution prevention(Appendix C).
SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENTREPORTSIEMENS SUSTAINABILIT Y REPORT 2023

80

Pages 81 – 105

SocialContribution to people andsociety

EquityEmployability

Foster diversity, inclusion, and community develop-

Enable our people to stay resilient and relevant in ament to create a sense of belonging

permanently changing environment

Our key ambitions1

Our key ambitions1→ 30% female share in top management by 2025

→ Increase digital learning hours to “25 by 25”4

→ Access to employee share plans: maintain high level→ Access to Employee Assistance Program: maintainand expand globally to up to 100% by 20252→ Global commitment to the New Normal Working

high level and expand globally to 100% by 2025
→ 30% improvement in Siemens’ globally aggregatedModel3

LTIFR5 by 2025

Additional highlights

Additional highlights→ WIN talents, GROW, and BOND our people→ Greater equity of opportunities continues throughour global Gender Equity Program1→ Social engagement with three strategic priorities→ “MyGrowth” program to foster individual growthand performance at scale→ Broad portfolio for vocational education and training(VET) and lifelong learning→ Continued rollout of the Healthy and Safe @ Siemens
program12345Siemens without SHS.
Where legally possible and reasonable.
For employees with job profiles that make this possible and reasonable.
Digital learning hours per headcount.
LTIFR: Lost Time Injury Frequency Rate (of Siemens employees and temporary workers) baseline FY 20.

SIEMENS SUSTAINABILIT Y REPORT 2023

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5.1 Working at Siemens

5.1

Working at Siemens– WIN talents, GROW, and BOND our people– 320,0001 employees worldwide– Global values and global corporate culture

Talent markets continue to be highly dynamic and com­
petitive. It is becoming harder to win and bond the highly
sought-after talents that are key to driving the Siemens
transformation. Candidates are clear about their expectations of an attractive employer:

Management approach
Structural factors such as demographic change, which con-(a) empowerment and personal choicetinue to widen the talent gap in key talent markets (including(b) skill development

digital talents), management of unstable geopolitical condi-(c) a sense of belonging and contributing to a larger purpose.

tions, and the decreasing half-life of knowledge are theprincipal challenges that we are addressing at Siemens. All

Growing our people is a vital answer in tight talent markets.

of them are driving significant workforce transformations

Gaining the trust of our people and bonding with themacross our people and organizations.

builds a competitive advantage that is regularly measured
and reflected in our Siemens Global Engagement Survey

As the COVID-19 pandemic recedes, the past year has seen
new global challenges that few had anticipated. In this

(SGES)2.

need to strengthen their resilience in order to stay relevant.

Our People & Organization governance andpolicies

More than ever, people are a determining factor for our

The People & Organization (P&O) unit, headed by our Chief

growth.

People and Sustainability Officer (CPSO), is responsible

ever-changing environment, our people and organization

Empowering people and fostering a growthmindsetfor regulations and standards for our people that establish
an integrating, empowering culture of growth and transformation, that aims to support both a sustainable businessOur aim is to establish an integrating, empowering culture

success and our people’s employability. All Governance unitsof growth and transformation that ensures both sustainable

are working with our country and local business P&O func-

business success and our people’s employability. An ambition

tions to align them with local labor laws, support them tothat we are also pursuing with our four strategic priorities,

drive transformation and digitalization, and attract and

STRATEGY two of which are especially relevant to People &retain talents.

Organization (P&O): Empowered People and a Growth Mindset are reflected in our people strategy with a further focus→ Our global and local P&O Governance are responsible foron WIN, GROW, and BOND so we can attract and retain the(global) policies, standards, and top strategic initiatives inright talents.2

P&O-related areas.
→ Our global and local P&O Business Partners (BPs) areworking with our managers to focus on strategic P&O
topics and implementation that will support the businessand functional needs.
→ Our Siemens internal Global Shared Service centers manage people operations.

1
2

All employee figures in this chapter refer to headcount and our own workforce.
Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

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5.1 Working at Siemens

Establishing a culture of trust→ Ethics: We foster a culture of trust, adherence to ethical

Siemens’ values and ethical standards for doing business are

standards, and handling data with care. Our values andanchored in our Business Conduct Guidelines (BCGs). The

ethical principles are embedded in our BCGs, on which all

BCGs define the basic principles and rules for our conduct

our people are trained regularly.

COMPLIANCE AND ETHICS

both inside and outside the company. The BCGs are binding→ Equity: Equal treatment and respect are at the core of ourfor our employees, managers, and top management globally.

corporate values. We aim to be the employer of choice

The principles of human rights, non-discrimination andand to foster diversity, inclusion, and community. In

non-intimidation, free choice of employment, prohibition of

addition to fostering a culture of trust and empowerment,child labor, prohibition of forced labor and all forms of

we want to create a sense of belonging and a safe envi-­slavery, fair employment (including adequate compensationronment where our people can give their best.

and appropriate working hours), freedom of association and

EQUIT Y & INCLUSION

DIVERSIT Y,

collective bargaining, health, occupational safety, personal→ Employability: We continually invest in all levels of train-

security, and protection and privacy of personal data areing for our people. We support their resilience as people

embedded in Siemens’ BCGs, International Framework

and relevance as skilled workers. We strive to enable ourAgreement (IFA), Human Rights policy, and Compliancepeople to manage change effectively and to surpass their­system.

previous performance levels. We focus on digital learning,

COMPLIANCE AND ETHICS

employee assistance programs, and occupational health
We place fair treatment and respect at the heart of our value

and safety measures for them.

system. Our aim is to respect the personal dignity, privacy,

AND LIFELONG

and rights of each individual. We believe that diversity­M ANAGEMENTLEARNING,

PROFESSIONAL EDUCATIONOCCUPATIONALHEALTHAND

SAFET Yenriches our workplace. We work together without regard toethnic origin, culture, religion, age, disability, skin color,

In addition, the P&O unit supports the DEGREE Governancegender, sexual identity and orientation, or worldview. We do

ambition by integrating ESG criteria into the long-term

not tolerate discrimination, sexual or any other form of­variable compensation programs3 for the Managing Board

harassment, or inappropriate behavior towards individuals

and senior management.

or groups.

ORGANIZATIONHUMAN RIGHTSSUSTAINABILIT Y GOVERNANCE AND

Targets
We have adopted ambitious, specific goals in our DEGREE
sustainability framework. The three fields of action – Ethics,
Equity, and Employability – are key priority areas for the P&O
unit at Siemens.2

OUR DEGREE SUSTAINABILIT Y FRAMEWORK

23SIEMENS SUSTAINABILIT Y REPORT 2023

83

Siemens without SHS.
Assessment based on the Siemens internal ESG/sustainability index, which is basedon customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning
hours.

5.1 Working at Siemens

Actions and results

E Equity

Progress on DEGREE ambition #10:
Access to employee share plans –maintain high level and expand globallyto up to 100% by 2025

Launch of our Siemens Employer Branding
campaign to attract and retain talents2
In 2023 we launched our new employer branding campaign
Create a better #TomorrowWithUs to win and retain talents
for Siemens as the inclusive employer of choice. Siemens is

Siemens employee share program strengthens
identification with the company

currently undergoing the most significant transformation in

Employee share ownership is an integral part of theengineering company to a technology company that drives

Siemens DEGREE sustainability framework: We aim tosustainability. Our goal is to position Siemens as the inclusive

maintain access to our employee share program at

employer of choice in all our relevant talent markets. This has

the 98% level and expand it globally to up to 100% byalso received external recognition, as Siemens has been listed

2025. Owning a stake in the company is intended toamong the “World’s Most Attractive Employers 2023” by Forbes

motivate our people to take personal responsibility

and Universum, as well as in national rankings like LinkedIn

for their own actions. This ownership culture has a“Top Company 2023” in Germany.

1long tradition at Siemens: Our first profit-sharing

the company’s history: transitioning from a mechanicalprogram was introduced back in 1858. Today the

Fair and equitable talent process

global Siemens share program, which has been

We are committed to transparent and equitable access tooffered annually since 2008, is one of the largest

career opportunities and equal pay for equal work for our

employee share programs in the world. More thanpeople. With access to our open and transparent Job Market

102,000 employees invested in their company in fis-and by leveraging new technologies to improve our skill-cal 2023, which means that almost 44% of all eligible

based recruiting, we foster cross-organizational develop-

employees participated. In addition, Siemens AG

ment. Our Siemens MyGrowth development program anddistributed around 573,000 free bonus shares totalent programs are designed to help develop our people’s

employees in the past fiscal year as part of the global

full potential.

2

share program.

OUR DEGREE SUSTAINABILIT Y FRAMEWORKPROFESSIONAL EDUCATION AND LIFELONG LEARNING

Siemens Healthineers has its own share program that

Right to collective bargaining and freedom of
association

it offers to its employees.

The principles of fair pay, the right to collective bargaining,
and freedom of association are embedded in Siemens’ BCGs

Progress
FY 21: 98%
1
2

and International Framework Agreement (IFA)
99.9%~ 100% by 2025

Where legally possible and reasonable.
Participation is open to all employees who were employee by a participating
Siemens subsidiary on October 1 of the previous calendar year and continue
to be employed at a participating Siemens subsidiary until at least the last
day of the applicable offer period. Members of the Managing Board are
excluded.

fundamental rights in an International Framework Agreement(IFA) signed with trade unions and our employee representatives in 2012.

Siemens without SHS

2SIEMENS SUSTAINABILIT Y REPORT 2023

84

COMPLIANCE

AND ETHICS. Siemens AG reaffirmed its commitment to workers’

Siemens without SHS.

HUMAN RIGHTS

5.1 Working at Siemens

According to the collective bargaining agreements in Ger-

testimony of our unwavering commitment to fair pay for ourmany, the pay system at Siemens is determined by collective

people. In fiscal 2023 we reviewed our 19 largest companies

bargaining negotiations between the trade union “IG Metall”

in different countries (selected by revenue)2 on the basis of ourand employers’ associations. 79% of our employees in Ger-

defined, market-based pay parity methodology. We aremany are covered by collective bargaining agreements, anworking with these companies to establish a long-term

additional 19% of our employees in Germany are covered by­cultural change that supports our pay parity ambitions.

collective agreements subject to codetermination by theWorks Council, and our senior managers (2% of employees
in Germany) are represented by the “Executive staff committee.”Social dialog and relationship management

Employee benefits and opportunities for today
and tomorrow
In an ever-changing world, we continuously review andmodernize employee benefits. We offer flexible benefits

Enabling a safe dialog between Siemens and our employee

programs that support our people’s physical, mental, finan-

representatives is important for building trust with our peo-

cial, career, and social well-being throughout their work-life

ple. The following employee representative bodies arejourney. With equity and inclusion in mind, the Siemens

established at Siemens:

benefits programs2 aim to empower our people to realize
their full potential and strengthen their resilience through a→ The Siemens Group Works Council, Central Works Council,

variety of benefits programs, insurance policies, retirement

local Works Councils, and other employee representative

arrangements, and elective coverage. With an eye on sus-bodies represent all employees at Siemens in Germany –tainability as well as the diverse and evolving needs of ouralso disabled people and young workers.

global team and their families, the external market is closely→ Our Siemens Europe Committee (SEC) comprises 37 rep-monitored for the latest industry trends and innovations.

resentatives from 23 countries. The SEC represents all our
people in the EU countries and the UK, Switzerland, and

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENTREPORT, PENSIONS

Norway. In addition to three regional meetings, the annual
SEC meeting with all SEC members, representatives of the

Eligibility for Siemens sponsored benefits such as sharecompany, and our CPSO took place in fiscal 2023.

plans, company pension scheme, the employee benefits→ In fiscal 2023, Siemens also held meetings with employee
representatives and unions in non-EU countries.

programs, and parental/family leave regulations varies bycountry. Country-specific plans generally follow local regulations and market practices.

Commitment to fair pay
We want to guarantee fair pay (coverage of basic needs) that

Work-life balance

at least conforms to the national statutory minimum wage.

To provide our people with even more flexibility and individ-

Subject to national regulations, Siemens adheres to theual solutions, we offer flexible working models. These models

principle of “equal pay for equal work”: for instance, equity

are structured according to local requirements and in ways

in wages for women and men with the same job profile or role.

that are compatible with the employees’ roles. For instance,
Siemens offers mobile working, part-time hours, sabbaticals,

We also review pay parity at regular intervals in order totime-outs, parental/family leave, and partial early retirement.

eliminate unjustified differences (given the same job profile,

Parental leave for first and second care enables our people torole, competencies, experience, performance, etc.) as ­further

manage their unique work-life needs.

2
SIEMENS SUSTAINABILIT Y REPORT 2023

85

Siemens without SHS.

5.1 Working at Siemens

Mobile working has been established as a core element of

There are other options that our people in Germany can

the “New Normal” in order to promote a sustainable work

benefit from; for example, approximately 1,3002 childcare

culture and environment.

places, a summer vacation childcare program, and parent-­child health retreats.

The FutureOfWork@SIEMENS initiative

E Equity

The Siemens #FutureOfWork initiative tackles structural

Progress on DEGREE ambition #11:
Global commitment to the New Normal
Working Model1

changes in the working environment by asking two essential

At Siemens, mobile working and flexibility of work

→ WHAT will we work on in the future? (#NextWork)questions:→ HOW will we work in the future? (#NewWork)

location in the established hybrid New Normal Working Model (2–3 days of mobile work per week as a

#NewWork focuses on helping organizations and individuals

standard offering for our people worldwide) also

become more flexible and adaptable. For instance, exploring

strengthen our ability to attract and retain the best

new forms of agile organization, collaboration, leadership,talent. Our DEGREE ambition of a global commitment

and flexible working conditions.

to the New Normal Working Model supports this aim
worldwide.

OUR DEGREE SUSTAINABILIT Y FRAMEWORKIn 2020, Siemens introduced #NextWork, which is a methodology we use to proactively tackle the changing environment

Progressby preparing the organization and our people to stay relevant
and employable. With #NextWork, we’re addressing the key

Rollout continued
1

For employees with job profiles that make this possible and reasonable.

Siemens without SHS

question of what our future jobs will look like. This includes
identifying the roles, skills, and tasks of tomorrow and providing specific and actionable workforce transformation
roadmaps through our WIN, GROW, and BOND measures.
PROFESSIONAL EDUCATION AND LIFELONG LEARNING

We also encourage our people to achieve a balance between

Engagement with stakeholders

work and caring for relatives. As this topic continues to growTo highlight our culture of trust and empowerment, we arein importance, we will support our people in Germany who

pursuing two initiatives that concentrate on understanding

provide care for close family members. We offer a variety ofand taking account of our people’s experiences and recog-

support options through the Elder Care program. This pro-nizing their achievements:

gram is based on four pillars: time off work and flexible
working, communication, counseling, and training on health

We use the results of our Siemens Global Engagement

matters.

­Survey (SGES)2 at regular intervals to assess the efficiency
and success of our actions and to derive any necessary steps

Childcare at Siemens

for improvement. In January 2023, we had a response rate

In fiscal 2023, as part of its family-friendly corporate policy,

for the SGES of 65% (decrease of 4 percentage points from

Siemens AG supported its people in Germany with a general

the year before). Our People Net Promoter Score (pNPS) was

tax-free childcare allowance of up to €100 per calendar

39 (+3 points from the prior year).

month per child for the care of preschool-age children at a
day-care center or similar facility. Siemens AG also grants its
part-time employees in Germany a tax-free childcare allowance during parental leave for children up to 14 months of age.
2
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86

Siemens without SHS.

5.1 Working at Siemens

In addition, the Werner von Siemens Awards2 are given in

Hires and exits

seven different categories to honor achievements that have

The number of new hires decreased by approximately 14%

had a positive impact on Siemens and beyond. Sustainability

compared to fiscal 2022, and the number of exits decreased

is an integral focus of the Werner von Siemens Awards. In

by about 15%. All other differences result from changes in

2023, the trophies were presented to the strongest Businessthe basis of consolidation and other changes.

Unit, country and five project teams that enabled our customers to transform their industries, accelerated digitalization, contributed to technological innovation, empowered

Employees hired

Siemens’ people, and positively impacted society and the

Fiscal year

environment. Approximately 7,600 employees participated(in thousands)

2023

2022

in this competition in 2023 and submitted 395 entries.

Siemens

40.7

47.3

Europe, C.I.S.¹, Middle East, Africa

17.3

19.3

Americas

12.0

13.8

Asia, Australia

11.4

14.3

Employee structure and change
As of September 30, 2023, Siemens employed 320,000
people around the world. This amounts to an increase ofabout 9,000 employees from September 30, 2022. 55% of1

Commonwealth of Independent States.

our employees were based in Europe, the Commonwealth of
Independent States (C.I.S.), the Middle East, and Africa, 24%

Women hiredin Asia and Australia, and 21% in North America, Central
America, and South America.

Siemens employees(in % of total number of employees)

24%
Asia,
Australia

September 30, 2023

21%
Americas1

Commonwealth of Independent States.

The percentage of women in the total workforce is 27%.

Siemens30

30Europe, C.I.S.¹, Middle East, Africa

29

28

Americas29

33

Asia, Australia

32

30

1

87

Commonwealth of Independent States.

(in %)

Voluntary turnover rate2

2023

2022

5.3

6.6

Involuntary turnover rate :

4.3

5.0

• Dismissals

1.1

1.2

• End of temporary contract,mutual ­consent

1.6

1.9

• Retirement

1.2

1.3

• Other reasons

0.4

0.6

Total

9.6

11.6

3

2
3

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

2022

1

Women as apercentage of total
employees

22023

Fiscal year

55%
Europe, C.I.S.1,
Middle East,
Africa27%(as a percentage of new hires)

Employee turnover rate¹

320,000
total

Fiscal year

Employee turnover is defined as the ratio of voluntary and involuntary exits from
Siemens during the fiscal year to the average number of employees.
Voluntary turnover rate is based on employee decisions.
Involuntary turnover rate is based on other reasons, including dismissals, end of
temporary contracts, mutual consent, (early) retirement, death, and other reasonsthat are not an employee decision.

5.1 Working at Siemens

Employment characteristics

Changes in age distribution

In fiscal 2023, 94% of our own workforce had permanent

The distribution of employees by age group remained almost

contracts.

unchanged from the previous year. The average age in fiscal
2023 was 42 years.

Permanent and temporary employees
Age structure

Fiscal year
(in thousands)

2023

2022

Permanent

300

290

(as a percentage of total employees)

September 30, 2023

< 30

30 – 50

16%

59%

> 50

Temporary19

20

Siemens

Total

320

311

Europe, C.I.S.1,
Middle East, Africa

13%

56%

30%

Americas

15%

53%

32%

4% of our own workforce used part-time working models.

Asia, Australia
1

Full-time and part-time employees

21%

25%

71%

8%

Commonwealth of Independent States.

Fiscal year
(in thousands)

2023

2022

Further data on Working at Siemens are disclosed in the

Full-time

305

295

indicator table.

Part-time

14

14

Total

320

311

SIEMENS SUSTAINABILIT Y REPORT 2023

88

OUR SUSTAINABLIT Y INDICATORS5.2 Diversity, Equity & Inclusion

5.2

Diversity, Equity & Inclusion– Focus on strengthening a sense of belonging– Greater equity of opportunities continues throughour global Gender Equity Program1– One of our DEGREE ambitions: 30% female share in
top management by 2025

Our governance and policies for diversity, equity,and inclusion
We have established a global Diversity, Equity, and Inclusion(DEI) unit that is active in many regions of the world. Led by
our Chief Diversity Officer (CDO), the global Diversity, Equity,1and Inclusion Office manages and supports a wide range ofactivities.

Management approach
At Siemens, we transform the everyday, for everyone – forSiemens Healthineers has its own Diversity, Equity, andour customers, our people, and society at large. This also

Inclusion (DEI) organization to manage and orchestratemeans committing to diversity, equity, and inclusion.

ambitions and activities.

We strive to create a work environment where our people are

Our commitment to Human Rights is anchored in our

empowered and feel a sense of belonging. We believe that

Siemens Business Conduct Guidelines (BCGs) and global

diversity positively impacts our teams and workplace andHuman Rights policy. We do not tolerate discrimination,leads to more creative and innovative solutions. At Siemens,

sexual or any other form of harassment, or inappropriate

diversity means the inclusion and interaction of different

behavior toward individuals or groups. The guidelines clearlyways of thinking, backgrounds, experiences, skills, and indi-state:

vidual qualities across all levels and dimensions of the company. Equity is an essential part of our corporate culture.

→ “We respect the personal dignity, privacy, and rights of

Inclusion enables every voice to be heard and every individual

each individual. We believe diversity enriches our work-to get involved.

place. We work together without regard to ethnic origin,
culture, religion, age, disability, skin color, gender, sexual

We believe that focusing on diversity, equity, and inclusion
reduces the risk of making biased talent decisions. We haveidentity and orientation, or world view.”→ “We respect the human rights of local communities and of

implemented recruitment and promotion strategies thatpeople who are particularly vulnerable.”

HUMAN RIGHTS

promote equity of opportunities through our Gender Equity
Program (GEP)1. We also offer various training opportunities

We foster a sense of belonging to empower our people andon our new Diversity, Equity, and Inclusion (DEI) Learning

to discover untapped growth potential in every individual.

Channel, we empower managers and teams through ourThis principle is reflected in the motto #BelongingTrans-

Belonging Playbook, and we foster an open dialog andforms.1

insights on diversity, equity, and inclusion for all our peopleon our Belonging Days. This helps us to foster a diverse work

Siemens also participates in strategic sponsorships andenvironment.1

partnerships that facilitate worldwide programs and initia-

PROFESSIONAL EDUCATION AND LIFELONG LEARNING

tives, including the Diversity Charter. Initiatives like theseenable Siemens to strengthen its commitment to promoting
diversity, equity, and inclusion for all its people.2

1
2
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Siemens without SHS.
Siemens AG Germany.

5.2 Diversity, Equity & Inclusion

Targets

Actions and results

Equity is one field of action in our DEGREE sustainability

We actively promote diversity, equity, and inclusion by creating

framework that contributes to a greater sense of belonging

a working environment that is open and welcoming to all

for all our people. DEGREE ambition #9 – “30% female sharepeople.

in top management” – is aimed at continuously improving
gender equity.1

Global LGBTQIA+- Standards and further
activities
Siemens supports the UN Initiative for Global LGBTQIA+Standards of Conduct for Companies.1

E Equity

Progress on DEGREE ambition #9:
30% female share in top management
by 2025In alignment with the Diversity Charter, Siemens and its
General Works Council have initiated activities like “Respect
and Appreciation,” which sponsors local projects intended tobring these values to life for our people in Germany.

We aim to increase the percentage of top management positions held by women globally to 30% by

Our German prototype program “Trans* at work” supports

September 30, 2025.1 As of September 30, 2023,

our people with collegial counselling before, during, and31.1% of top management positions were held byafter transition.1 Following its success, we developed rele-

women (+3.4% points compared to the previous

vant program guidelines for our people and managers. Inyear).

addition, we were able to work with our people to identify

OUR DEGREE SUSTAINABILIT Y FRAMEWORK

Trans Advocates who could serve as a first point of contact
Progress
FY 20: 22.7%
1

for any inquiries about the program.1
31.1%

30% by 2025

This does not affect local or company-specific diversity targets andrequirements set by law or regulation. More details about the targets andstaffing requirements that apply to Siemens AG, as well as the diversity
concepts that are being pursued for the Supervisory Board and Managing
Board of Siemens AG, can be found in the annual Corporate GovernanceStatement available on the Siemens Investor Relations website under the
Corporate Governance heading.

Siemens also released a global Diversity, Equity, and Inclusion
Learning Channel to raise awareness of the importance of amore equitable and inclusive workplace and to recognize
and address any potential biases or discriminatory practices.1

Integrating diversity, equity, and inclusion into
all aspects of our people experience journey

Siemens without SHS

During the regular review of our practices, we realized that
integrating diversity, equity, and inclusion into all aspects of
Our commitment to greater gender equity is not limited toour people experience – from recruitment and onboarding

top management or to complying with statutory and regula-to career development – is the key element in a more diverse

tory requirements; rather, it aims to ensure equal opportunities

and inclusive working environment.

for all genders at all levels of our company.
We launched our global Gender Equity Program (GEP)1 withthe aim of ensuring equity of opportunities across the entire
organization – from equitable hiring into business functions
and equitable promotions to management to representationof women in top management.1

1
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5.2 Diversity, Equity & Inclusion

Inclusion of people with disabilities

In our Pride@SIEMENS networks for the LGBTQIA+5 Commu-

Siemens strives to ensure equity for people with disabilities,

nity, our people around the world can meet and share their

their inclusion in society and the workplace, their self-deter-

thoughts, feelings, and support each other. People on themined participation, and their right to be treated with

LGBTQIA+ spectrum and straight allies6 are equally welcome.

respect. At Siemens, we believe that each person is of value
for a barrier-free work environment at Siemens, inclusion

Accountability of our local CEOs and businessleadersmeans more than just accessibility. It is a holistic way ofA lesson learned on our journey to fostering diversity, equity,

thinking and acting that eliminates both visible and invisible

and inclusion is that the involvement and accountability ofbarriers and encourages a culture of conscious, equitable

our local CEOs and business leaders is integral to the successparticipation and understanding. We believe that this way ofof the DEGREE sustainability framework Equity1 field of

thinking supports and enables people with disabilities to beaction. This led to our regular CEO Check-In sessions with theincluded and to give their best.

aim of acquiring a deeper understanding of our local com-and importance, regardless of their ability. And while we aim

munities and the societies in which we operate.
The Ability@Siemens1 initiative promotes a culture of integration for approximately 4,8003 disabled people currently

Women in the workforce

working at Siemens in Germany. It is based on an inclusion

In fiscal 2023, the share of women in the own workforce atagreement with the general representative board for dis-Siemens was 27%.

abled employees.4
For many years, we have been working to build a diverse,

Global awareness days foster the spirit oftolerance and acceptanceequitable, inclusive corporate culture, and we have achieved
measurable success. This includes our efforts to increase theWe foster the spirit of tolerance and acceptance at Siemens

global share of management positions held by women by

worldwide through our internal campaigns on global aware-

the end of fiscal 2025. In fiscal 2023, 32,900 employees

ness days: for instance, International Women’s Day andheld management positions at Siemens7. The share of

Global Accessibility Awareness Day. Beyond, in our Belonging

women in management positions was 21.6%.

Days, we are offering insights and learning opportunities on
Further data on Diversity, Equity & Inclusion at Siemens are

DEI via a global broadcast to all our people.1

disclosed in the indicator table.

OUR SUSTAINABILIT Y INDICATORS

Siemens also joined the Valuable 500, an initiative launchedby the World Economic Forum to place the concerns of per-

We are also pursuing a variety of initiatives, programs, andsons with disabilities on companies’ management agendas.

1

measures to foster a cultural change toward gender equity,

We support Employee Resource Groups (ERG)1 and people-­led

diversity, and integration. The following represent two of theactivities to help transform our business by bolstering amany different women’s networks around the world:

commitment to diversity, equity, and inclusion. These groups
include Siemens PRIDE (global), the Neurodiversity Network(United Kingdom), the Black Professional Network (UnitedStates), and Women in Tech (China).

1
3
4
5
6

7
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91

Siemens without SHS.
The number of severely handicapped employees (SHE) is based on legally definedguidelines and specifications according §§ 154-1+3 SGB IX (German Social Law).
Inclusion Agreement for Siemens AG Germany.
Lesbian, gay, bisexual, trans, queer, intersexual, and asexual.
“Straight allies” are persons who identify as heterosexual and cisgender who support
the LGBTQIA+ movement and speak out against homophobia, lesbophobia, andtransphobia.
Employees in management positions include all managers with disciplinary responsibility.

5.2 Diversity, Equity & Inclusion→ Global Leadership of Women@Technology & Innovation(GLOW@TI)1: The GLOW@TI network aims to promote
careers for women with a background in science. Womenin this network are often appointed to technology field
and research group management positions.
→ GROW2GLOW 1: The GROW2GLOW network provides­business coaching for women as a way of helping themrealize their full potential. The network comprises morethan 140 coaches in 13 countries.

Our people’s satisfaction with their belonging,inclusion, and well-being
In our Siemens Global Engagement Survey (SGES)1 in fiscal
2023, we asked our people about their belonging, inclusion,
and well-being. We are constantly working to make ourpeople feel that they can be themselves at work by implementing the measures mentioned in this section – throughout
the people experience journey at Siemens.
In fiscal 2023, Siemens received many diversity prizes andawards worldwide, including the “#Diversity:IN” in the UnitedStates and “Best Place to Work for LGBTQ+ Equality – Human
Rights Campaign (HRC)” in Mexico.1

1

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

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5.3 Professional education and lifelong learning

5.3

Professional education and lifelong learning– Broad portfolio for vocational education and train­ing (VET) and lifelong learning– MyGrowth program to foster individual growth andperformance at scale

Our P&O Talent & Leadership governance andpolicies
Siemens’ global P&O Talent & Leadership unit is responsible
for winning, developing, connecting, and retaining talents– One of our DEGREE ambitions: 25 digital learning(WIN, GROW and BOND).

hours by 20251
Our Global Learning and Growth (GLG) unit is responsible forlearning and individual growth at scale by orchestrating andManagement approach

managing our Siemens Learning & Growth ecosystem,

Siemens’ continued growth and success depends on our

including our MyGrowth program, with our learning experi-

highly qualified and skilled people. That’s why we haveence platform My Learning World, our policies, and otherdeveloped an extensive portfolio of lifelong learning oppor-

strategic learning initiatives. It gives orientation and guidance

tunities to empower our people and help them acquire rele-

to our people and leadership and manages development

vant skills and enhanced resilience for today and tomorrow.

opportunities around the globe. We provide a broad range oftrainings that cover technology and other specialties, along

We are continuously improving our learning, career develop-with developmental courses for inter-personal skills likement, and growth opportunities to positively impact ourteam leadership and team building.

people. We focus on lifelong learning and upskilling toenable our people to adapt to an ever-changing environ-

Siemens Professional Education (SPE) coordinates andment. We promote a growth mindset in order to create an­manages our international apprenticeships and dual-study

inclusive, empowering culture of growth and transformation

programs to support ongoing talent development.

that helps enhance our people’s employability and supports
As part of our commitment to our strategic priorities ofour sustainable business success.

Empowered People and Growth Mindset, a core focus is on
Our comprehensive learning portfolio enables us to continu-

driving awareness of the importance of lifelong learning.

ally expand and evolve our people’s core competencies. We

Siemens’ objective is to help our people manage change

aim to support our people in successfully managing transi-

effectively and support them in remaining resilient as indi-tion and change while simultaneously enhancing Siemens’

viduals and relevant to the employment market.

agility and resilience. Today’s talent recruitment needs tosatisfy an increasing need for digital and technical expertise.

Targets

As the pace of technological development and digitalization

In our Siemens DEGREE sustainability framework, our learn-

reduces the half-life of expertise, continuous learning anding ambition and measures related to lifelong learning are

upskilling is fundamental to Siemens’ continuing success.

embedded in Employability, one of the six fields of action, inorder to encourage our people’s resilience.1

Our ongoing investments in vocational education and training (VET) and talent-entry programs also help us attract andretain talents.

1

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5.3 Professional education and lifelong learning→ With our Siemens Potential Development Programs

E Employability(PDP)1, we have created an ever-growing network of morethan 4,000 people from 57 countries which constantly

Progress on DEGREE ambition #12:
Increase digital learning hours
to “25 by 25”

feeds our talent pipeline. Almost 40 certified programs
are hosted by different organizations according to their
specific business needs. They enable talents to acquire

In terms of our DEGREE ambitions, each employee

skills that address current and future needs through accel-completed 23 hours of digital learning (+16 hours

erated learning interventions and stretch assignments infrom fiscal 2020, the basis year – a 229% increase).

order to equip them to be powerful transformation
agents.

OUR DEGREE SUSTAINABILIT Y FRAMEWORK→ GLOW@TI (Global Leadership of Women@Technology &Progress
FY 20: 7h

Innovation)1: The GLOW@TI initiative focuses on attract23h

ing, developing, and retaining talented women with a

25h by 2025

background in STEM and associated innovation fields. The

Siemens without SHS

initiative helps women realize their full potential andpromotes a culture of innovation by building strong networks between departments and organizations.
→ Siemens Leadership Excellence (SLE)1: Our SLE programs

Management compensation at Siemens also includes a life-

are designed to connect and enable our leaders. Thelong learning component. It incorporates long-term perfor-

objective of our SLE Pipeline programs for high-ranking

mance incentives based on ESG criteria and is defined under

executives and global talents is to strategically strengthen

Governance in our DEGREE sustainability framework. The

our succession planning. Our top management leadershipassessment is based on the internal ESG/Sustainability Index,

program Leading in Sustainability helps participants think

which includes, among other things, digital learning hours.

strategically

2

about

sustainability

opportunities

forSiemens, identify sustainable solutions to their business

SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION

challenges, and provide a common understanding of the

Actions and resultscore competencies and organizational readiness required

As a responsible employer, we offer a wide range of profes-

for corporate management and transformation. The SLE

sional education and learning opportunities to our people.

Leaders’ Labs for alumni also enable Siemens to build a

These opportunities include development programs, talent-­strong global network of managers, both within theentry programs, future-oriented learning, re- and upskilling,organization and beyond. As one of the strategic learningand additional funding for appropriate programs.

priorities, we initiated the new scalable L.E.A.P. – Lead.
Empower. Accelerate. Practice. program in 2023 for all

Customized development programs for our people
Our development programs are customized for both global

management levels.

and local use. Key programs include:

Our talent entry programs for individual careerpaths→ Siemens Core Learning Paths (CLP): Designed for specificSiemens’ development and integration of the next generation

areas like sales, project management, procurement,of leaders will allow us to build diverse and agile manage-­production, and software architecture, CLPs provide self-

ment teams capable of successfully managing change andguided learning content and trainer-supported virtualtransition and driving growth. Our people are grounded in a

training sessions. In fiscal 2023, a total of 29 CLPs werestrong growth mindset and values of cohesion and dedication

made available to target groups worldwide.

that extend above and beyond our programs and even theirtime at Siemens.
1
2

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Siemens without SHS.
Assessment based on the Siemens internal ESG/sustainability index, which is based on
customer satisfaction (Net Promoter Score), CO2 reduction, and digital learning hours.

5.3 Professional education and lifelong learning→ Xcelerate Your Potential at Siemens – XPS Leadership→ MyGrowth Learning1: Our AI-driven learning platform

Program is an opportunity for outstanding candidates in

My Learning World creates a personalized learning expe-

the field of digital business management. By developing

rience that is globally accessible any time and offers moretheir skills and their global networks, the program sup-than 135,000 learning resources across a variety of topics

ports participants develop in leadership roles.

and formats in order to meet our people’s varied learning

1→ Finance Excellence Program (FEP) is a finance leadershippreferences and requirements. Our people can benefit

program that builds a foundation for future commercial

from multiple learning formats including videos, e-learning

leaders with a digital mindset. Participants benefit frommodules, virtual training courses, technical literature,

being assigned a personal mentor from Siemens’ financepodcasts, and e-books.

leadership team and customized development measures.

→ MyGrowth Career: This program allows our people to→ Siemens Graduate Program (SGP) is an international

shape their own career development. It is integrated intotrainee program for high-potential candidates with aa holistic concept and focuses on the individual’s careermaster’s degree that has been in existence for more thantrajectory. Core components of MyGrowth Career include

100 years. It offers a customized development journeythe open markets reflected in the Open Job Market andand excellent networking opportunities throughout thePeople Profile and other options like Job Tagging (show-

company.

ing interest in a particular department), Job Shadowing,
and Mentoring to encourage personal growth.

Our shift to digital learning is key
We have seen digital learning accelerate in recent years as

Siemens Growth Talks are the connecting links between thethe global pandemic compelled a shift in how we deliver

elements mentioned above. All of our people receive regular

our learning programs. This digitalization trend was well-­

performance reviews in the form of Siemens Growth Talks.

received. Based on the positive reception, we added more

These agile, ongoing, forward-looking, strength-based

digital training programs, modules, and courses with the­conversations support both individual and organizational

intention of ensuring broad-based participation and providing

growth, performance, and well-being. Support materials likelearners with flexibility.

discussion guidelines, questions for reflection, and workshop

Future-oriented learning and careerdevelopment instruments
The MyGrowth program combines our learning and career

templates help our people, teams, and managers maintainan ongoing, respectful, and encouraging dialog on personal
development and learning.

growth at scale and carve out career progression paths for

Future Fund supports the transition to a newworld of work

our people. This program comprises the following three

Siemens AG and its Central Works Council intend to take acomponents:

proactive role in shaping structural change. We’re working

development tools and content to promote continuous

together to create a learning organization that can master→ MyGrowth Self-Reflection: To build a successful career, it

structural transformation as well as optimize the opportunities

is essential for our people to know their own strengthsof change that will benefit our people. A Future Fund has

and weaknesses and to be aware of their personal stage

been established to support development programs intendedof development. A variety of tools and services are offered

to help our people stay oriented in a disruptive employment

along with content that includes identifying strengths

environment. In particular, it enables them to qualify and(Strengthscope®), perception of others (feedback tool),learn beyond their previous limits. It finances projects related

and coaching (Peer2Peer).

to structural change that go beyond site boundaries, withsupport from the site management and the Central Works
Council.

1
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Siemens without SHS.

5.3 Professional education and lifelong learning

Siemens AG in Germany allocated a total of €100 million for

Average training hours per employee

the Future Fund that will be invested over a period of four
fiscal years starting in January 2019. The term of the Future
Fund has now been extended to 2026. More than €3 million∅ 30 training hours per employee.

were approved for Future Fund projects in fiscal 2023, about€11 million less than in the previous year.

Average training hours per employee by gender

Our open SiTecSkills Academy for technicalre- and upskillingin fiscal 2023:

Working with our external education partners, we opened
the SiTecSkills Academy to the wider learning ecosystem,
because we want to share our expertise and experience inskilled worker qualification with our customers and othercompanies. In fiscal 2023, we had 18 training centers inGermany that offered about 200 trainings focused on technicalre- and upskilling, complemented by professional consulting

Women:

Men:

∅ 28h

∅ 30h

No/othergender entry:∅ 18hand support.

Vocational training to start your career

Further data on professional education and lifelong learning

With a dedicated in-house education institution for voca-

at Siemens are disclosed in the indicator table.

tional training – Siemens Professional Education (SPE) –Siemens is one of the largest training companies for

OUR SUSTAINABLIT Y INDICATORS

secondary school graduates. SPE offers apprenticeships andOur people shape Siemens’ learning activities

dual-study programs in technical, IT, and commercial fields

In our regular Siemens Global Engagement Survey (SGES)1 in

to enable young talents to strengthen their existing capabil-fiscal 2023, we asked our people about the growth mindset

ities and acquire the new skills needed to shape a digital andculture and their satisfaction with our learning opportunities.

automated future. In fiscal 2023, we had approximately
5,800 apprentices and students in dual-study programs

The feedback of the SGES underlines that digital learning

worldwide.

offers our people access to many more learning opportuni-

Lifelong learning is crucial to successties and greater flexibility.

On average, each employee spent about 30 hours in digital

The survey results also shed light on the fact that our estab-learning or on-site trainings during the fiscal year. Our new

lished Siemens MyGrowth program was successfully pro-training opportunities and learning week promotions

moted worldwide and was well-received by our people. This

resulted in an increase in the number of training hours in

was confirmed when we were recognized with several

fiscal 2023.

awards in fiscal 2023, such as two “Red Dot Design Awards”
in the categories “Corporate Design” and “Educational Illus-

In fiscal 2023, Siemens invested €237 million in our people’s

tration” for MyGrowth.

training, which corresponds to an average of €753 per
employee. In total, we invested approximately €416 million

We will continue to use the survey results to focus onin employee education and training.

­strategic learning and continuously shaping our portfolioof future-oriented learning opportunities.

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5.4 Occupational health and safety management

5.4

Occupational health and safety management– Resilience and well­-being are at the core of

EHS Officers coordinate the collaboration of EHS experts­occupational health and safety management

across the various fields of action. The main task of this

– The Healthy & Safe @ Siemens program will­continue to be rolled out worldwide– Further reduction in the accident rate

expert function is to advise managers and teams. The function’s profile has changed significantly in recent years:
Rather than monitoring compliance with rules and workflows
as in the past, the focus is now on supporting our people indealing safely with dynamically changing requirements.

Management approach
At Siemens we are committed to creating a healthy and safe

Health and safety committees that meet regularly have been

work environment for our people and to sustainably support-

established in the relevant country organizations and on theing their well-being and performance.

local level. Here, management and employee representatives
jointly coordinate the specific measures and initiatives

The world of work is changing dynamically, as are theneeded for a healthy and safe work environment.

demands and needs regarding health and safety. A core task
for our occupational health and safety department is toBased on our Business Conduct Guidelines (BCGs), we havemaintain and further improve the resilience, adaptability,

established internal monitoring systems and a company-­

and well-being of our people. We believe that focusing on

wide risk management and control process.

health and safety management reduces the risk of physicalinjuries and mental ill health. Siemens aims to mitigate

We anchor our actions in Siemens’ EHS Principles, which

health and safety risks effectively through management

embed our EHS policy. They also include an obligation for all

systems, designing healthy and safe working conditions,operating units to demonstrate a management system certi-

internal monitoring, and controls. Our Employee Assistancefiable to ISO 45001. The effectiveness of these management

Program also supports our people in coping with psychosocial

systems is subject to an annual internal review that checks,

personal concerns through individual counseling. Adapting

among other things, whether processes for risk assessments

and re-designing our work systems is a continuous task. The

and emergency management are implemented in accor-

goal is to empower our people to get involved, engage, anddance with internal and external regulations, that inspec-

participate. By changing the way we work, digitalization

tions and reviews have been carried out, significant risks andprovides the opportunity to steadily improve our health andopportunities have been identified and whether they aresafety assessments and management systems globally.

reflected in measurable goals and measures. The manage-

Our occupational health and safety governanceand policies

ment system is also externally certified according to market
requirements in the respective operating units.

The Environmental Protection, Health Management, andSiemens’ suppliers commit to upholding the Siemens Group

Safety (EHS) department manages health and safety mea-

Code of Conduct for Suppliers and Third-Party Intermediaries

sures at Siemens. It is organized locally, integrated into eachand Business Partners. This Code of Conduct obligates ourbusiness unit and each regional company, and reports

suppliers to comply with health and safety standards and todirectly to the respective business manager.

take responsibility for the health and well-being of theiremployees.

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5.4 Occupational health and safety management

Targets

We design healthy and safe working conditions by continu-

One of the DEGREE sustainability framework fields of action

ously monitoring and evaluating potential risks and deriving

is Employability1. This speaks to the ability of our people toappropriate measures. By doing so, we aim to enable our

successfully manage continually changing requirements. In

people to achieve a balanced state of well-being, better

addition to continuous professional development, individual

handle stressors, and use their capacities and resources withresilience is essential for adapting to challenging life events

greater awareness. Moreover, we empower our people toand work situations. With our health and safety ambitions togrow, work more productively, and make important contri-

maintain and expand access to the Employee Assistancebutions to the company’s success.

Program (EAP) and improve the global aggregated accident

achieve this, we provide a broad variety of resilience-focusedrate (LTIFR), we are contributing to the DEGREE field ofactivities that include training and curated learning paths via

action Employability.1

our learning platform.

WORKING AT SIEMENSPROFESSIONAL EDUCATION AND LIFELONGLEARNING

E Employability

E Employability

Progress on DEGREE ambition #13:
Access to Employee Assistance Program:
Maintain high level and expand to 100%
globally by 2025

Progress on DEGREE ambition #14:
30% improvement in Siemens’ globally
aggregated LTIFR by 2025

100% access to the Employee Assistance Program

30% improvement in the global accident rate (LTIFR)(EAP) by 2025 – As an integral part of our psychosocial

by 2025 (base year: 2020) – compared to the refer-risk management, the EAP anonymously supports

ence value of 0.31 in fiscal 2020, we have achieved

individual employees in coping with psychosocial

an improvement of 26% to date.

stress through individual consultations. In 2023, 96%
of all our colleagues worldwide had access to EAP.

Progress

This enables us to not only support all our people

FY 20: 0.31

worldwide in developing health-promoting behaviors,
but shall also help to raise general awareness of psychosocial issues in society as a whole.
Progress
FY 20: 82%

96%

Siemens without SHS

1

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2023

98

100% by 2025

Siemens without SHS

To

– 26%

–30% by 2025

5.4 Occupational health and safety management

Actions and results

In the second step, measures are defined and agreed upon

The Siemens-wide strategic priority of having empowered

for resilient health & safety management.

people guides our actions in the areas of health and safety.
Safety, health, resilience, and well-being are intangible

The results are then evaluated in the third step.

assets for our company.

The company-wide Healthy and Safe @ Siemens
program1

Elements of Healthy and Safe @ Siemens 1

Our company-wide Healthy and Safe @ Siemens (HS @ S)

ma

ch
ec

Real
it y

Too
lbo
x

Key
r

HS

Principles

nagement

We care for our own and each other’s well-being.

s
u lt
es

nt

safety. It is based on five principles:

Re
sil
ie

k

x
lbo

innovations and improvements in occupational health andyrKefrom each other, increase well-being at work, and promote

o
To

es
ul
ts

program invites employees to help shape leadership, learn

We speak up and take part in making the workplace
healthier and safer.
We are inclusive and invite a diverse range of views

Eval
u a t io n

on health and safety.

Toolbox

We are engaged in learning and sharing about how
we can work better, safer, and healthier.

Key
results

We prepare for and adapt well to changing circumstances.
Siemens has created a toolbox containing the necessary
The principles guide the process of HS @ S in three steps:

materials for implementing the HS @ S process that can bereality check, resilient health and safety management, andcustomized to each country, location, and business.

evaluation.
The program is designed to run until 2030. Individual priorities
The reality check helps build a comprehensive understanding

and objectives may be adjusted over time. Two of the keyof the status of health and safety. It includes a survey that

results (access to Employee Assistance Program and 30%

provides a snapshot of employee perception across various

improvement in the global accident rate (LTIFR)) have also

aspects in the categories “work climate,” “leadership,” “learn-been incorporated into the DEGREE sustainability frameworking,” and “processes and resources.” Results are reviewed

in the field of action Employability.1

and potential for improvement is identified. Based on thethe perceptions of management in key functions and data-

Continued demand for occupational health andsafety management

based expert views – were added to the reality check.

Addressing the increasing need to enhance both individual­Furthermore, in fiscal 2023, the management’s perceptions

and organizational resilience is crucial in today’s world. Thisof our business challenges and their impacts on health andis essential for the sustainability of our business operations

safety were added by interviews and specific local factors

and also aligns with the sustainability imperative. Over the

influencing health and safety were further analyzed.

last few years, our health and safety management continued

first rollout of the HS @ S, additional perspectives – including

to prove its resilience and reliability throughout diverse
global crises.
1
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5.4 Occupational health and safety management

To support our people’s resilience, we have implemented key→ Managers and team members engage in ongoing commu-

measures:nication about health, safety, and well-being at work.
→ We have implemented two global campaigns addressing→ We have expanded the scope of learning and exchange

contributing factors of injuries and mental health. We

opportunities, particularly regarding resilience, psycho-

also address psychosocial risks in our EHS Hazards Identi-

logical safety, and psychosocial risk management. In fiscal

fication, Risk Assessment, and Risk Control (HIRARC) pro-

2023, we added trainings on resilience and well-being tocess.

our new scalable Lead. Empower. Accelerate. Practice→ In addition, Siemens’ regional companies and business(L.E.A.P) learning program.

units have developed a variety of initiatives, including→ Managers and employees can take advantage of continu-

regular “Health Talks,” learning and action weeks, andously updated digital learning opportunities for self-­
determined learning. In the Siemens Learning World,“Safety Focus Days.”these offerings are tailored to different target groups and

The Siemens Safety Essentials

are bundled according to topic.

Maintaining health, safety, and well-being is a responsibility

PROFESSIONAL EDUCATION

that is shared by our management and people. This respon-

AND LIFELONG LEARNING→ In fiscal 2023, we launched the Digital Safety Transforma-

sibility extends beyond providing workplaces in accordancetion Series, offering an opportunity to provide our EHS

with all applicable norms, standards, and requirements. To

professionals with guidance in developing digital safety

protect and train our people, we have established the Safety

strategies and remote safety management programs,

Essentials with core safety behaviors. We expect our people

implementing emerging technologies to control risk,

to adhere to those essentials at all times and to place health,deploying EHS software, and improving digital literacy.

safety, and the environment first in all that they do whenworking for Siemens.

Safety Essentials

Driver andvehicle safety

SafetyEssentials

Hazardous
energy control
Electrical
Safetywith core safety
behaviors

Cranes andlifting

Potential
explosive gas
and vapors
Machine guarding
signage andsafety interlocks

SIEMENS SUSTAINABILIT Y REPORT 2023

100

Working at height/
fall protection

Confined spaceentry

5.4 Occupational health and safety management

Continuous expansion of health services
We are continuously expanding our spectrum of health ser-

LTIFR Employees and Temporary Workers¹

vices to support the resilience and health of our people at

Fiscal year

work and beyond. In fiscal 2023, 99% of our employees

2023

2022

1

have access to company medical care. This includes the

Employees

0.23

0.25

prevention and early identification of health problems

Temporary Workers²

0.30

0.38

through health checks, screenings, and vaccinations. We

Total

0.24

0.26

treat health issues seriously and in a timely manner, which
includes leveraging telemedicine consultations or referrals

1

to experts. In addition, we facilitate a successful return to2work by supporting our employees with reintegration measures and ergonomic advice.
94%1 of our employees were able to take advantage of awide range of health education offerings designed to

Lost Time Injury Frequency Rate (LTIFR): number of lost-time cases (LTC) × 200,000 /work hours; LTC are accidents that result in at least one lost day of work.
As a globally operating company, Siemens isn’t always authorized or able to obtain
sensitive information about contract workers‘ health and occupational safety orcomplete figures on their work hours. As a result, the Temporary Worker LTIFR for
Siemens includes only temporary workers hired by a temporary employment agency
or under a contract for work and services.

Fatalities (work-related)

strengthen their health literacy. These offerings are delivered

Fiscal year

through a holistic approach that covers physical, mental, and

2023

2022

Employees

01

Temporary Workers

00

Accident numbers at a low level

Contractors

41

In fiscal 2023, the number of work-related accidents further

Total

4

2

social health and well-being.

decreased, which correlated with the reduction in the global
accident rate (LTIFR) for the same period. Accidents areanalyzed and lessons are derived to continuously improve

In fiscal 2023, a total of 62 occupational illness cases wereand minimize the occurrence of accidents. The characteris-

registered.2 The majority of cases were attributed to occupa-

tics of this year’s accidents are comparable to the previous

tional cancer.

year:
78% of the reported incidents were assigned to the “minor”

Joint contribution to our health and safety
approachcategory (minor injuries like scratches and abrasions). Finger

Our people contribute to our joint health and safety approachinjuries continued to account for the majority of incidents.

every day. There is no one-size-fits-all solution for implementing health and safety due to differing requirements,

4 fatalities occurred in fiscal 2023. One contractor lost theirtasks, and work situations throughout the company. Recog-

life due to burns sustained in an arc-flash incident, andnizing this, we want to involve our employees in the design

another contractor passed away after being struck by a pilingand implementation of our health and safety initiatives andrig’s leg. Among the other two contractor fatalities, one

programs. The active participation of our people enables our

occurred during ventilation maintenance using a lifting

company-wide, country-specific, and business-specific initia-

platform, and the other during work on a construction site

tives and programs to thrive. For instance, psychosocial risks

while using a mobile scaffold. Each incident and fatality is a

are assessed once a year via the work well-being factors

source of grief for the people concerned as well as theirembedded in the Siemens Global Engagement Survey

families, friends, and colleagues. Each incident is a renewed(SGES)1. The relevant teams then discuss and document thecall for us to keep improving and ensuring a safe and healthyrisks, opportunities, and measures, and outcomes in a struc-work environment for our people and partners.

tured follow-up process.

1
2
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Siemens without SHS.
Excluding temporary workers and contractors.

5.5 Corporate citizenship

5.5

Corporate citizenship– Improving people’s living conditions

Siemens believes that it is important to work for the good

– Giving societies access to knowledge andof society beyond our business activities and to invest intechnologies– A variety of projects with three strategic priorities

charitable work. This belief is anchored in our Corporate
Citizenship Strategy. Our principles serve as a global framework and provide guidance for local sponsorship activities,
donations, charitable contributions, and memberships. ThisManagement approachguidance defines how a variety of potential contributions

Corporate citizenship has been an integral part of Siemens

can be deployed connecting each one to our overarchingfrom the very beginning, with the aim to empower people

principles.

and societies. As defined by Werner von Siemens over
175 years ago, the company’s mission is to provide technol-

Our own Corporate Volunteering Standard describes a com-ogies that improve quality of life and create lasting value formon global corporate citizenship concept and frameworksociety based on our portfolio, knowledge, and expertise. In

which is supported by an internal volunteering platformalignment with this mission, our corporate citizenship pro-being launched in fiscal 2023.

gram aims to positively impact society in every country
where we operate through voluntary work.

Targets
As an important element of our sustainability strategy, cor-

The foundation for our approach are the UN’s Sustainableporate citizenship is embedded in the DEGREE sustainability

Development Goals. We identify key topics for our respective

framework.1 By strengthening our identification of different

countries, derive specific actions and illustrate how we aretarget groups for our corporate citizenship activities andmaking a positive contribution to achieving them. This

offering a range of training measures covering all phases ofapproach allows Siemens to focus primarily on giving back tolife, we contribute to two of the framework’s fields of action:

the societies where we operate.

Equity and Employability.

Our governance and policies for corporate
citizenshipIn every society where we operate, our ambition is to improve

Responsibility for selecting and managing non-profit andtional and training opportunities for the labor market, andsocially impactful activities lies with the local departments orstrengthen social cohesion and cultural identification. At the

management teams in each country. This approach helps tosame time, we aim to strengthen Siemens’ reputation andprovide support and create value where it is needed most.

local footprint, increase understanding of our technologies,

Simultaneously, we combine in-depth local knowledge withand position our company as an attractive employer, while

long-term commitment to overcome social challenges that

also laying the foundation for future innovation.

vary from region to region.
Along with six other international Siemens foundations andSiemens ­Caring Hands e.V., the Siemens Stiftung complements our corporate citizenship initiatives.
WWW.SIEMENS-STIFTUNG.ORG/EN

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102

general living and healthcare conditions, enhance educa-

5.5 Corporate citizenship

Actions and results

In addition, by equipping research laboratories with control

Scale sustainability impact with a shared value
approach

and automation equipment in countries like Hungary, Turkey,
and Latvia, Siemens is helping improve educational andemployment opportunities.

Grounded in our core business and competencies, we havedefined three strategic focus areas for our corporate citizen-

In fiscal 2023, we worked with TANSAM, the Tamilnadu

ship activities: access to technology, access to education,

Smart and Advanced Manufacturing Centre, to build andand sustaining communities.

equip an incubation center in India to spur industrial inno­
vation at the grassroot level. The center employs under­

In addition to participating in traditional philanthropy, we

privileged people and has already trained more than 16,000

leverage our technological expertise, capabilities, and prod-

students on Industry 4.0 skills.

ucts to contribute to society.

Access to technology on the basis of our corecompetencies
We want to share our knowledge about automation, digitalization, and intelligent infrastructure with the intention of

Donating refurbished laptops to people in need is anotherelement in our aspiration to help transform communities for abetter tomorrow. People in need can connect and interact withothers and at the same time get access to quality education.

making it accessible to people around the world.

Access to education is crucial for societies
around the world

This knowledge is especially important in developing coun-

Our commitment to education encompasses diverse activi-

tries, where it can help meet the fundamental needs of local

ties and includes STEM-oriented training and promoting

societies, including energy supply, clean water, and basic

excellence through competition to providing free software

medical care. The objective is to help these societies improve

licenses and setting up new institutional education paths,

their overall quality of life and develop new perspectives forincluding dual education and apprenticeship systems.

solving problems in the future.

Our Core Areas

Access totechnology

Access to
education

Sustaining
communities

With the aid of our core competencies indigitalization, automation, and electrification, as well as scientific research, we strive
to give as many people as possible thechance to use the latest technologies.

Knowledge is a resource on which our ­future
depends. Therefore, improving ­educational
prospects and allowing broad access to­education are critically important challenges
for all societies everywhere in the world.

Our goals are to establish stable living conditions, protect values, unleash creativity,
improve intercultural understanding, andcontribute to progress.

SIEMENS SUSTAINABILIT Y REPORT 2023

103

5.5 Corporate citizenshipThe promotion of education can take different forms andWe are continuously striving to improve our impact on social

pursue different objectives: However, the primary objective

cohesion. A major challenge in recent years included unfore-remains consistent. We aim to provide enhanced equal

seen events like the global pandemic and the war in Ukraine.

access to future opportunities, and to give young people theTo help those affected, we launched a charity program intools to master future challenges.

Germany and will continue to roll it out in other countries tobetter coordinate our measures and offer our people options

Coding skills are increasingly relevant to helping people andorganizations overcome the challenges of digitalization. As

for help.

oriented learning programs and projects designed for

Siemens Stiftung: Working for sustainable social
development

children. These include UBBU in Portugal, Hacker School in

Siemens Stiftung is an internationally operating foundation

Germany, and Project Jigyaasa in India. Many of these pro-established by Siemens in 2008 as an independent nonprofit

grams are supported by volunteers from Siemens staff.

organization. The foundation focuses on three key themes:such, Siemens supports a diverse range of programming-­

Access to Essential Services, Connected Societies and Climate
In addition to the programs mentioned above, in fiscal 2023

and Sustainability, and adopts a proactive approach towe supported the Innovation4Sustainability bootcamp, a­shaping the transformation required by these challenges. By

local initiative for more than 30 students from public STEM

working with partners in the fields of education, social

schools across Egypt. The bootcamp was designed andentrepreneurship, and culture, the foundation reinforcesdeveloped with the intention of solving industrial waste

collective learning and locally based sustainable structures.

management challenges in the electronics sector by empow-

The foundation works with the income from its €390 million

ering a group of diverse students through a series ofendowment as well as additional partner funding in Africa,

hands-on trainings, workshops, and ideation using an agile

Europe, and Latin America.

methodology throughout the bootcamp.
Siemens and its employees supported Siemens Stiftung’s
In Argentina, we worked with the Siemens Foundation Argen-projects with a number of donation campaigns during thetina to design a 30-hour internationally certified training pro-fiscal year. One example is the COVID-19 Aid Fund, whichgram based on Siemens’ 3D design software. The programsupported the “STEM Education for Innovation” initiative

provides an up-to-date technical education that meets thelaunched by Siemens Stiftung to advance innovative educa-

needs and requirements of the socio-productive sector andtion formats in Latin American countries. To date it has spent

aims to enhance employability by helping bridge the digital€0.75 million on projects that included producing 467 digital

divide for more than 2,500 students and 250 teachers.

and analog instructional media for the entire educational

Sustaining communities is key for social
cohesion

chain and providing more training for more than 245,000
STEM teachers and other interested participants in morethan 300 trainings, workshops, and webinars. The fund also

Siemens believes that identification with one’s local cultural

supported the creation of a multi-stakeholder network thatheritage is important for social cohesion. With this objective

promotes STEMplus education in 14 mainly Latin Americanin mind, we support cultural and social activities. The

countries as well as the education portal “CREA” (Centro de

Siemens Arts Program contributes to this objective with a

Recursos Educativos Abiertos), which offers more than 1,700

diverse range of projects: for example, support for the first

open educational resources for STEM lessons.

Namibian opera designed to promote intercultural understanding. In addition, we help local communities create safe
and stable environments. For instance, in fiscal 2023, we
provided accommodations at our company premises in
Warsaw to Ukrainian refugees.

SIEMENS SUSTAINABILIT Y REPORT 2023

104

5.5 Corporate citizenshipIn the fifth edition of the Cents4Sense program, employee
shareholders around the world were able to donate up to
five dividends from their Siemens shares, with the company
matching every donation. Since the program began in 2018,it has raised almost €1,280,000 for selected Siemens
Stiftung social projects in Africa, Europe, Latin America, andGermany.

Corporate commitment to strive for the creationof lasting value for society
In fiscal 2023, we delivered a total community investment of€43.2 million, and our people spent more than 36,000 h involunteer projects as part of their working time.

€

43.2

milliontotal community investment
To evaluate our activities, we measure the achievement of
the goals on the basis of the individual underlying targets
and against a framework based on the I-O-O-I (input, output,
outcome, impact) assessment method. A database andapproval tool support the operating units in their efforts andhelps to create transparency on a global level. This approachis accompanied by participation in numerous local andnational working groups and commissions with the aim of
improving the positive impact on society.

SIEMENS SUSTAINABILIT Y REPORT 2023

105

Pages 106 – 123

Our sustainability
indicators

SIEMENS SUSTAINABILIT Y REPORT 2023

106

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

SIEMENS AT A GLANCE
Total revenue

Total

Fiscal Year

Billion €

77.8

72.0

8.0%

GRI 201-1, WEF

Net income

Total

Fiscal Year

Billion €

8.5

4.4

94.2%

GRI 201-1, WEF

Adjusted EBITA Margin for the
Industrial Business

Total

Fiscal Year

%

15.4%

15.1%

2.0%

GRI 201-1, WEF

Research and development
R&D expenses

Total

Fiscal Year

Billion €

6.2

5.6

10.6%

WEF

R&D intensity

Total

Fiscal Year% of revenue

8.0%

7.8%

2.3%

WEF

Additions to capitalized­development expenses

Total

Fiscal Year

Billion €

0.3

0.3

1.7%

WEF

Patents granted

Total

Sept. 30th

No. (rounded)

45,00043,600

3.2%

WEF

Share of patent families with
SDG-relevance

Total

Sept. 30th

% of total patentfamilies

46.8%

44.8%

4.5%

WEF

Fiscal Year

No.

416

363

14.6%

GRI 205-3,
GRI 2-27, WEF

Allegations of bribery1 Fiscal Year

No.

21

12

75.0%

GRI 205-3,
GRI 2-27, WEF

Allegations of bribery
related to actual year

Fiscal Year

No.

12

7

71.4%

GRI 205-3,
GRI 2-27, WEF

Allegations of bribery
related to previous
years

Fiscal Year

No.

11

5

120.0%GRI 205-3,
GRI 2-27, WEF

Total

Fiscal Year

No.

166

212

−21.7%GRI 205-3, WEF

GOVERNANCE
Compliance (continuing and discontinued operations)
Total

Compliance cases reported

Disciplinary sanctions

BCG training – graduating quota
current year

BCG training – persons graduating
current year

Other specific compliancetrainings – persons graduating­current year
Integrity Initiative – Projects
Integrity Initiative – Finance budget
provided1
2Warnings

Fiscal Year

No.

87

90

−3.3%

GRI 205-3, WEF

Dismissals

Fiscal Year

No.

43

74

−41.9%GRI 205-3, WEF

Others2

Fiscal Year

No.

36

48

−25.0%GRI 205-3, WEF

Total

Fiscal Year% of invited
employees

67.9%

96.3%

–29.5%GRI 205-2, WEF

Total

Fiscal Year

No. (rounded)

129,300

102,000

26.8%

GRI 205-2, WEF

EMEA

Fiscal Year

No. (rounded)

75,90050,000

51.8%

GRI 205-2, WEF

AmericasFiscal Year

No. (rounded)

22,90019,000

20.5%

GRI 205-2, WEF

Asia, Australia

Fiscal Year

No. (rounded)

30,50020,00052.5%

GRI 205-2, WEF

Total

Fiscal Year

No. (rounded)461,000

409,000

12.7%

GRI 205-2, WEF

Total

up to
Sept. 30th

No.

85

85

0.0%

WEF

Total

up to
Sept. 30th

Million US$(rounded)

120

120

0.0%

WEF

Does also include allegations of granting benefits (but not taking bribes); time of the alleged misconduct may be in more than one period or may be unspecified.
Therefore it can be included in both categories.
Includes loss of variable and voluntary compensation elements, transfer and suspension.

SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Sustainable supply chain management
Purchasing Volume (PVO)

Total

Fiscal Year

Billion €

36.9

34.6

6.7%

GRI 2-6

Number of relevant (> €10,000
annual volume) suppliers

Total

Fiscal Year

No. (rounded)

67,70066,000

2.6%

GRI 2-6

Total

Fiscal Year

No.

5,096

4,912

3.7%

GRI 308-2, 408-1,
409-1, 414-2

EMEA

Fiscal Year

No.

1,122

1,147

−2.2%

GRI 308-2, 408-1,
409-1, 414-2

AmericasFiscal Year

No.

767

654

17.3%

GRI 308-2, 408-1,
409-1, 414-2

Asia, Australia

Fiscal Year

No.

3,207

3,111

3.1%

GRI 308-2, 408-1,
409-1, 414-2

Total

Fiscal Year

No.

5,493

3,109

76.7%

GRI 308-2, 414-2

12.9%

GRI 308-2, 408-1,
409-1, 414-2,
WEF−14.2%GRI 308-2, 408-1,
409-1, 414-2,
WEF

2.0%

GRI 308-2, 408-1,
409-1, 414-2,
WEF

Corporate responsibility
self-assessments (CSRA)3

Agreed improvement measuresout of CSRAs

Total

External sustainability audits

EMEA

AmericasFiscal Year

Fiscal Year

Fiscal Year

No.

No.

No.

481

97

51

426

113

50

Asia, Australia

Fiscal Year

No.

333

263

26.6%

GRI 308-2, 408-1,
409-1, 414-2,
WEF

Total

Fiscal Year

No.

9,521

7,275

30.9%

GRI 308-2,
414-2, WEF

Sites with environmental
management system ISO 14001
certification

Total

Sept. 30th

No.

182

184

−1.1%

Share of sites with environmental
management system ISO 14001­certification

Total

Sept. 30th

% of reported sites

73%

72%

0.5%

Agreed improvement measuresout of external sustainability audits
ENVIRONMENT
Holistic environmental protection

3

To be conducted mainly by suppliers from non-OECD countries with a purchasing volume > € 50,000 p.a.. Questionnaires initiated and completed in the year under review.

SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Climate action
Greenhouse gas emissions
Total

GRI 305-1, WEF

342

357

−4.4%

GRI 305-1, WEF

Fiscal Year

109

138

−20.8%GRI 305-1, WEF

CO2 emissions
from LPG

Fiscal Year

1,000 metric tonsof CO2e emissions

51

332.2%GRI 305-1, WEF

CO2 emissions
from heating oil

Fiscal Year

1,000 metric tonsof CO2e emissions

15

2

643.9%GRI 305-1, WEF

Fiscal Year

1,000 metric tonsof CO2e emissions

210

213

−1.7%

GRI 305-1, WEF

CO2 emissions
from site fuelFiscal Year

1,000 metric tonsof CO2e emissions

3

3

5.8%

GRI 305-1, WEF

CO2 emissions
from coal

Fiscal Year

1,000 metric tonsof CO2e emissions

0

0

Fiscal Year

1,000 metric tonsof CO2e emissions

0.2

0.1

37.1%

GRI 305-1, WEF

SF6 emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

30

23

31.7%

GRI 305-1, WEF

CH4 emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

< 0,1

< 0,1

N2O emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

0.0

0.2

−91.8%GRI 305-1, WEF

Fiscal Year

1,000 metric tonsof CO2e emissions

15.4

12.1

26.8%

GRI 305-1, WEF

PFC emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

00

GRI 305-1, WEF

NF3 emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

< 0,1

< 0,1

GRI 305-1, WEF

Acetylene emissions

Fiscal Year

1,000 metric tonsof CO2e emissions

0.1

1−85.9%GRI 305-1, WEF

CO2 emissions
from technical CO2

GRI 305-1, WEF

GRI 305-1, WEF

Fiscal Year

1,000 metric tonsof CO2e emissions

163

189

−13.5%GRI 305-2, WEF

Market based fromelectricity

Fiscal Year

1,000 metric tonsof CO2e emissions

142

164

−13.9%GRI 305-2, WEF

Market based fromheating

Fiscal Year

1,000 metric tonsof CO2e emissions

22

24−11.1%GRI 305-2, WEF

Total (location based)

Fiscal Year

1,000 metric tonsof CO2e emissions

624

670

−6.8%

GRI 305-2, WEF

Location based fromelectricity

Scope 1+2 reduction to last year

−1.6%

1,000 metric tonsof CO2e emissions

Total (market based)

Scope 1+2 intensity

393

Fiscal Year

HFC emissions

Scope 1+2387

CO2 emissions
from gas

CO2 emissions
from fleet fuelScope 2

1,000 metric tonsof CO2e emissions
1,000 metric tonsof CO2e emissions

CO2 emissions

Scope 1

Fiscal Year

Fiscal Year

1,000 metric tonsof CO2e emissions

597

633

−5.7%

GRI 305-2, WEF

Location based fromheating

Fiscal Year

1,000 metric tonsof CO2e emissions

28

37−25.3%GRI 305-2, WEF

Total

Fiscal Year

1,000 metric tonsof CO2e emissions

550

582

−5.5%

GRI 305-1, 305-2,
WEF

Total

Fiscal Year

metric tons of CO2eemissions per
Mio. € revenue
7.1

8.1

−12.5%GRI 305-4, WEF

Total

Fiscal Year

1,000 metric tonsof CO2e emissions

13

144.3%GRI 305-5, WEF

SIEMENS SUSTAINABILIT Y REPORT 2023

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32

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Reduced emissions through energy
from renewable sources

Scope 3Fiscal Year/
September 30th Unit+/–

Standards

Fiscal Year

1,000 metric tonsof CO2e emissions

467

482

−3.2%

GRI 305-5, WEF

Gas from renewablesources (Scope 1)

Fiscal Year

1,000 metric tonsof CO2e emissions

13

184

−26.0%GRI 305-5, WEF

Electricity fromrenewable sources(Scope 2)

Fiscal Year

1,000 metric tonsof CO2e emissions

454

465

−2.4%

GRI 305-5, WEF

Total

Fiscal Year

1,000 metric tonsof CO2e emissions

483,188457,606

5.6%

GRI 305-3, WEF

Fiscal Year

1,000 metric tonsof CO2e emissions

11,048

11,515−4.1%

GRI 305-3, WEF

Purchased goods andservices

Fiscal Year

1,000 metric tonsof CO2e emissions

9,276

9,557

−2.9%

GRI 305-3, WEF

Capital goods

Fiscal Year

1,000 metric tonsof CO2e emissions

416

458

−9.2%

GRI 305-3, WEF

Fuel- and energy-­
related activities

Fiscal Year

1,000 metric tonsof CO2e emissions

111

137

−19.0%GRI 305-3, WEF

Fiscal Year

1,000 metric tonsof CO2e emissions

29

25

16.0%

GRI 305-3, WEF

Transportation

Fiscal Year

1,000 metric tonsof CO2e emissions

884

1,118

−20.9%GRI 305-3, WEF

Business travel

Fiscal Year

1,000 metric tonsof CO2e emissions

227

122

85.4%

GRI 305-3, WEF

Employee commuting Fiscal Year

1,000 metric tonsof CO2e emissions

105

98

7.1%

GRI 305-3, WEF

Total

Fiscal Year

1,000 metric tonsof CO2e emissions

472,140

446,090

5.8%

GRI 305-3, WEF

Use of sold products

Fiscal Year

1,000 metric tonsof CO2e emissions

469,180

442,175

6.1%

GRI 305-3, WEF

Investment SFS5

Fiscal Year

1,000 metric tonsof CO2e emissions

2,960

3,915

−24.4%GRI 305-3, WEF

6,198

−2.0%

GRI 305-4, WEF
GRI 305-3, WEF

Waste in operations

Scope 3 downstream

FY 2022

Total (Scope 1 + 2)

Total

Scope 3 upstream

FY 2023

Scope 3 downstream intensity

Total

Fiscal Year

metric tons of CO2eemissions per
Mio. € revenue
6,071

GHG emissions Scope 1+2+3
upstream (“Cradle to gate”)

Total

Fiscal Year

1,000 metric tonsof CO2e emissions

11,59812,097−4.1%

Fiscal Year

1,000 metric tonsof CO2e emissions

15

19−22.2%

Biogenic CO2e emissions

Total

Greenhouse gas emissions – Fleet and real estate management

Siemens fleet(owned or leased vehicles)

4
5

Total number

Sept. 30th

No. (rounded)

44,00042,000

4.8%

Electrical vehicles

Sept. 30th

No. (rounded)

4,100

1,350

203.7%

Hybrid vehicles

Sept. 30th

No. (rounded)

2,500

3,150

−20.6%

Electrical andhybrid vehicles

Sept. 30th

No. (rounded)

6,600

4,500

46.7%

Rate of electrical andhybrid vehicles

Sept. 30th

% of total fleet

15%

11%

40.0%

Rate of electrical­vehicles

Sept. 30th

% of total fleet

9%3%

189.9%

Fleet emissions (partof Scope 1 emissions)Fiscal Year

1,000 metric tonsof CO2e emissions

210

213

−1.7%

Fuel consumption
fleet

Fiscal Year

1,000 gigajoule

2,894

2,920

−0.9%

Change in last year data caused by subsequent adjustment.
Emissions out of Siemens Financial Services (SFS) activities in financing fossile energy production projects.

SIEMENS SUSTAINABILIT Y REPORT 2023

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GRI 305-1, WEF

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022

+/–

Total

Sept. 30th

No.

37

41

−9.8%

Charging poles on company groundfor electrical vehicles
Total

Sept. 30th

No. (rounded)

2,750

2,200

25.0%

Fiscal Year

Mt CO2e

189.9

153.2

24.0%

0.5%

Siemens sites with Net Zero CO2eemissionsStandards

Use phase impact at customers
Avoided emissions: Greenhouse gas
reductions achieved by our customers
through products of the Siemens
Total
Portfolio6
EU Taxonomy
Share eligible revenue

Total

Fiscal Year% of revenue

20.3%

20.1%

Share aligned revenue

Total

Fiscal Year% of revenue

16.5%

n.a.

Share eligible operational
expenditures

Total

Fiscal Year% of relevant OpEx

12.4%

13.5%

Share aligned operational
expenditures

Total

Fiscal Year% of relevant OpEx

8.2%

n.a.

Share eligible capital expenditures

Total

Fiscal Year% of relevant CapEx 34.5%

39.7%

Share aligned capital expenditures

Total

Fiscal Year% of relevant CapEx 12.2%

n.a.

Total

Fiscal Year

1,000 gigajoule

9,115

9,802

−7.0%

GRI 302-1, SASB
RT-EE-130a.1

Share of renewableenergy sources

Fiscal Year% of total energy
consumption

51.1%

47.6%4

7.5%

GRI 302-1, SASB
RT-EE-130a.1

Share of grid­electricity

Fiscal Year% of total energy
consumption

61.3%

57.4%

6.7%

GRI 302-1, SASB
RT-EE-130a.1

Primary & secondary energy intensity Total

Fiscal Year

1,000 gigajoule per
Mio. € revenue
0.117

0.136

−13.9%GRI 302-1, SASB
RT-EE-130a.1

Total

Fiscal Year

1,000 gigajoule

2,513

3,010

−16.5%GRI 302-1, SASB
RT-EE-130a.1

Natural gas & liquidgas

Fiscal Year

1,000 gigajoule

2,277

2,927

−22.2%GRI 302-1, SASB
RT-EE-130a.1

Gas from renewablesources

Fiscal Year

1,000 gigajoule

233

3154

−26.0%GRI 302-1, SASB
RT-EE-130a.1

Gas share fromrenewable sources

Fiscal Year% of total gas used

10%

11%

−4.9%

GRI 302-1, SASB
RT-EE-130a.1

Fuel oil, gasoline,­dieselFiscal Year

1,000 gigajoule

232

63

269.5%GRI 302-1, SASB
RT-EE-130a.1

Total

Fiscal Year

1,000 gigajoule

6,602

6,792

−2.8%

GRI 302-1, SASB
RT-EE-130a.1

Electricity(total)Fiscal Year

1,000 gigajoule

5,586

5,629

−0.8%

GRI 302-1, SASB
RT-EE-130a.1

Electricity(renewable sources)

Fiscal Year

1,000 gigajoule

4,426

4,347

1.8%

GRI 302-1, SASB
RT-EE-130a.1

Electricity Share of
renewable energy
sources

Fiscal Year% of total
electricity used

79%

77%

2.6%

GRI 302-1, SASB
RT-EE-130a.1

District heating

Fiscal Year

1,000 gigajoule

1,016

1,163

−12.6%GRI 302-1, SASB
RT-EE-130a.1−8.2%−13.3%

Conservation of Resources

Energy Consumption:
primary & secondary energy

Energy Consumption:
primary energy

Energy consumption:
secondary energy

4
6Change in last year data caused by subsequent adjustment.
Calculated over the entire use phase, analogue Scope 3.11 “Use Phase Emissions”.

SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Efficiency in energy
Energy reduction

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Fiscal Year% revenue
weighted to baseyear (2021)

39%

13%

196.4%

Total (w/o SHS)

Fiscal Year% to base year
(2021)

9.1%

3.4%

163.9%

Total

Fiscal Year

1,000 tons

261.2

256.24

2.0%

GRI 306-3

Non-hazardous waste

Fiscal Year

1,000 tons

214.7

224.4

–4.3%

GRI 306-3

Hazardous waste

Fiscal Year

1,000 tons

12.7

13.74

−7.8%

GRI 306-3, SASB
RT-EE-150a.1

Construction waste

Fiscal Year

1,000 tons

33.9

18.0

88.0%

GRI 306-3

Total

Fiscal Year

1,000 tons

214.7

224.4

−4.3%

GRI 306-3

Recycling and Recovery Fiscal Year

1,000 tons

203.8

213.5

−4.5%

GRI 306-3

Total (w/o SHS)

Standards

Waste

Waste

Non-hazardous waste

Hazardous waste

Construction waste

Total waste(w/o construction waste)

4

Recycling (material)

Fiscal Year

1,000 tons

179.6

186.2

−3.6%

GRI 306-3

Recovery (thermal)

Fiscal Year

1,000 tons

24.2

27.2

−11.2%GRI 306-3

Landfill and other­disposal

Fiscal Year

1,000 tons

10.9

11.0

–0.9%

GRI 306-3

Landfill

Fiscal Year

1,000 tons

9.0

8.9

1.9%

GRI 306-3

Other disposal(thermal/chemical/
physical)

Fiscal Year

1,000 tons

1.8

2.1

−12.7%GRI 306-3

Total

Fiscal Year

1,000 tons

12.7

13.74

−7.8%

GRI 306-3, SASB
RT-EE-150a.1

Recycling and Recovery Fiscal Year

1,000 tons

7.2

8.74

−17.2%GRI 306-3, SASB
RT-EE-150a.1

Recycling (material)

Fiscal Year

1,000 tons

5.6

7.34

−22.4%GRI 306-3, SASB
RT-EE-150a.1

Recovery (thermal)

Fiscal Year

1,000 tons

1.6

1.5

7.9%

GRI 306-3, SASB
RT-EE-150a.1

Landfill and otherdisposal

Fiscal Year

1,000 tons

5.4

5.0

8.8%

GRI 306-3, SASB
RT-EE-150a.1

Landfill

Fiscal Year

1,000 tons

0.9

0.7

28.1%

GRI 306-3, SASB
RT-EE-150a.1

Other disposal(thermal/chemical/
physical)

Fiscal Year

1,000 tons

4.5

4.3

5.7%

GRI 306-3, SASB
RT-EE-150a.1

Total

Fiscal Year

1,000 tons

33.9

18.0

88.0%

GRI 306-3

Recycling and Recovery Fiscal Year

1,000 tons

27.0

17.4

55.2%

GRI 306-3

1052.9% GRI 306-3

Landfill and otherdisposal

Fiscal Year

1,000 tons

6.9

0.6

Total

Fiscal Year

1,000 tons

227.3

238.14−4.5%

GRI 306-3

Recycling and Recovery Fiscal Year

1,000 tons

211.0

222.2

4

−5.0%

GRI 306-4

Recycling (material)

Fiscal Year

1,000 tons

185.2

193.54−4.3%

GRI 306-3

Recovery (thermal)

Fiscal Year

1,000 tons

25.8

28.7

−10.2%GRI 306-3

Landfill and otherdisposal

Fiscal Year

1,000 tons

16.3

15.9

2.1%

GRI 306-3

Landfill

Fiscal Year

1,000 tons

9.9

9.6

3.8%

GRI 306-3

Other disposal(thermal/chemical/
physical)

Fiscal Year

1,000 tons

6.4

6.4

−0.3%

GRI 306-3

Change in last year data caused by subsequent adjustment.

SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Recycling & Recovery rate

Fiscal Year/
September 30th Unit

Upstream waste

FY 2022+/–

Standards

Total(w/o construction)

Fiscal Year% of total waste(w/o construction)

93%

93%

−0.5%

GRI 306-4

Hazardous waste

Fiscal Year% of total
hazardous waste

57%

64%4

−10.3%GRI 306-4

Non-hazardous waste

Fiscal Year% of total non-­hazardous waste

95%

95%

−0.2%

GRI 306-4

Fiscal Year% of construction
waste

80%

97%

−17.5%GRI 306-4

Total(w/o construction)

Fiscal Year% of total waste(w/o construction)

81%

81%

0.3%

GRI 306-4

Total

Fiscal Year

1,000 tons

1,433

1,4128

1.5%

GRI 306-1

Non-hazardous waste

Fiscal Year

1,000 tons

1,369

1,349

1.5%

GRI 306-1

Hazardous waste

Fiscal Year

1,000 tons

63

638

1.0%

GRI 306-1

Total

Fiscal Year

Million cubic meter

14.26

12.93

10.3%

GRI 303-3, WEF

Construction waste
Material Recycling rate

FY 2023

7

Upstream waste

8

Water

Water withdrawal

Surface water

Fiscal Year

Million cubic meter

1.10

1.03

7.0%

GRI 303-3, WEF

Groundwater

Fiscal Year

Million cubic meter

9.26

7.94

16.6%

GRI 303-3, WEF

3rd party water

Fiscal Year

Million cubic meter

3.85

3.91

−1.5%

GRI 303-3, WEF

Other sources

Fiscal Year

Million cubic meter

0.05

0.04

9.9%

GRI 303-3, WEF

Water withdrawal intensity

Total

Fiscal Year

Cubic meter per
Mio. € revenue

183.39179.71

2.0%

GRI 303-3, WEF

Water withdrawal inwater-stressed areas

Total

Fiscal Year

Million cubic meter

1.36

1.34

1.0%

GRI 303-3, WEF

Share of withdrawal

Fiscal Year% of total withdrawal 10%

10%4

−8.4%

GRI 303-3, WEF

Water consumption

Total

Fiscal Year

Million cubic meter

0.51

0.45

13.3%

GRI 303-5

Total

Fiscal Year

Cubic meter per
Mio. € revenue

6.52

6.22

4.8%

GRI 303-5

Total

Fiscal Year

Million cubic meter

0.07

0.07

1.5%

GRI 303-5

Consumption share

Fiscal Year% of total­consumption

15%

16.2%

−10.4%GRI 303-5

Total

Fiscal Year

Million cubic meter

13.56

12.36

9.7%

GRI 303-4

Water consumption intensity
Water consumption inwater-stressed areas

Water discharge

Discharge usage

4
7
8

4

Surface water

Fiscal Year

Million cubic meter

1.03

1.07

−3.4%

GRI 303-4

Groundwater

Fiscal Year

Million cubic meter

9.20

7.73

19.0%

GRI 303-4

3rd party water

Fiscal Year

Million cubic meter

3.33

3.56

−6.5%

GRI 303-4

Total

Fiscal Year

Million cubic meter

13.56

12.36

9.7%

GRI 303-4

Sanitary wastewater

Fiscal Year

Million cubic meter

2.80

2.90

−3.6%

GRI303-4

Manufacturing
processes

Fiscal Year

Million cubic meter

0.61

0.55

11.7%

GRI303-4

Other(including losses)

Fiscal Year

Million cubic meter

0.24

0.33

−26.3%GRI303-4

Cooling water discharged as wastewater Fiscal Year

Million cubic meter

0.14

0.13

5.2%

GRI303-4

Chemically unchanged
cooling water (returned
to receiving water bodychemically unchanged,
but warmed)
Fiscal Year

Million cubic meter

9.80

8.49

15.5%

GRI303-4

Change in last year data caused by subsequent adjustment.
Analysis of our supply chain based on purchase data by using of a macroeconomic input-output-model also adjusted for inflation.
Change in last year data caused by new calculation method.

SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Total

Sept. 30th

% of sites

96%

93%

3.8%

GRI 303-1, WEF

Volatile Organic Compounds

Total

Fiscal Year

metric tons

249.7

274.4

−9.0%

GRI 305-7

Ozone-depleting substances

Total

Fiscal Year

metric tons
(R11 equivalent)9

0.044

0.036

22.3%

GRI 305-6

Rate of sites with implemented
water strategy
Atmospheric pollutant emissions

Nitrogen oxides

Total

Fiscal Year

metric tons

53.5

57.6

−7.1%

GRI 305-7

Sulphur oxides

Total

Fiscal Year

metric tons

1.18

0.94

25.5%

GRI 305-7

Respirable dust

Total

Fiscal Year

metric tons

0.23

0.08

186.7%GRI 305-7

Environment-related incidents withsignificant fines

Total

Fiscal YearNo.

0

n.a.10

GRI 307-1, SASB
RT-EE-150a2

Amount of significant fines

Total

Fiscal Year€0n.a.10

GRI 307-1, SASB
RT-EE-150a2

Total

Fiscal Year

No.

14

7

100.0%GRI 307-1, SASB
RT-EE-150a2

Quantity reportablespillsFiscal Year

kg

3,319

2,562

29.5%

GRI 307-1, SASB
RT-EE-150a2

Quantity recovered
spillsFiscal Year

kg

2,079

342

507.7%GRI 307-1, SASB
RT-EE-150a2

Sites with energy management­system ISO 50001 certification

Total

Sept. 30th

No.

45

38

18.4%

Sites in or adjacent to protected
areas

Total

Sept. 30th

No.

25

20

25.0%

WEF

Area of sites in or adjacent to­protected areas

Total

Sept. 30th

Hectare

29011

184

57.2%

WEF

Total

Sept. 30th

No.

334

92

263.0%

Environmental Product Declarations
(EPD)
Total

Sept. 30th

No.

1,540

1,346

14.4%

Share of lifecycle assessment (LCA)
revenue13

Total (w/o SHS)

Fiscal Year% of total revenue14 39%

27%8

45.8%

Share of Environmental ProductDeclarations (EPD) revenue13

Total (w/o SHS)

Fiscal Year% of total revenue14 36%

22%8

64.1%

Rate of products by revenue that
contain IEC 62474-declarable­substances

Total (w/o SHS)

Fiscal Year% of total revenue14 50%

49%

2.2%

Additional environmental topics

Reportable spills

Product Stewardship
Lifecycle assessment (LCA)12

8 Change in last year data caused by new calculation method.
9 R11 equivalent measures ozone depletion potential.
10 Change in last year data caused by new definition with threshold.
11 Therein 49 hectare of an office location without production in Erlangen/Germany.
12 Full-scale.
13 Based on 3rd party revenue with products.
14 Siemens without SHS.
SIEMENS SUSTAINABILIT Y REPORT 2023

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SASB RT-EE410a1

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Total

Sept. 30th

No. (rounded)

320,000

311,000

2.9%

GRI 2-7, SASB
RT-EE_000B

Total

Sept. 30th

No. (rounded)

17,20016,900

1.8%

GRI 2-7

Germany

Sept. 30th

No. (rounded)

4,400

4,400

0.0%

GRI 2-8

EMEA

Sept. 30th

No. (rounded)

175,000

172,000

1.7%

GRI 2-7

SOCIAL
Working for Siemens15
Siemens employees16
Other internal workforce17
External/third party workers

Employee structure19

18

AmericasSept. 30th

No. (rounded)

66,00064,000

3.1%

GRI 2-7

Asia, Australia

Sept. 30th

No. (rounded)

78,00075,000

4.0%

GRI 2-7

Women

Sept. 30th

No. (rounded)

88,00084,000

4.8%

GRI 2-7, WEF

Men

Sept. 30th

No. (rounded)

231,000

225,000

2.7%

GRI 2-7, WEF

No/other gender entry Sept. 30th

No. (rounded)

140

180

–22.2%GRI 2-7, WEF

Gender n/a

No. (rounded)

900

1,600

–43.8%GRI 2-7, WEF

Age group < 30

Sept. 30th

No. (rounded)

50,00048,000

4.2%

GRI 2-7

Age group 30 – 50

Sept. 30th

No. (rounded)

188,000

182,000

3.3%

GRI 2-7

Age group > 50

Sept. 30th

No. (rounded)

81,00079,000

2.5%

GRI 2-7

Age n/aSept. 30th

No. (rounded)

900

1,600

−43.8%GRI 2-7

Young workers
below 15 years

Sept. 30th

% of total employees 0.0%

0.0%

Young workers
15 – 17 years

Sept. 30th

% of total employees 0.0%

0.0%

Blue-collar workers

Sept. 30th

% of total employees 16.9%

17.3%

–2.3%

WEF

White-collar workers

Sept. 30th

% of total employees 83.1%

82.7%

0.5%

WEF

Sept. 30th

% of employees inGermany

5.6%

5.7%

–1.8%

GRI 405-1, WEF

Sept. 30th

% of employees inGermany in top
management­positions

0.0%

0.0%

Sept. 30th

% of employees inGermany in middle& junior management positions

1.9%

1.8%

5.6%

GRI 405-1, WEF

Germany –Non-­management
positionsSept. 30th

% of employees inGermany in
non-management
positions

5.3%

5.5%

–3.6%

GRI 405-1, WEF

Total

Sept. 30th

No.

170

168

1.2%

GRI 405-1

Germany
Germany –Top management
positions
Disabled employees

Germany –Middle & junior­management­positions

20

Employee nationalities

21

Sept. 30th

GRI 405-1, WEF
GRI 405-1, WEF

GRI 405-1, WEF

15 All employee data in this section are based on headcount.
16 Employee refers to every natural person in an active employment relationship with a fully consolidated Siemens company. Employees are all internal workforce without apprentices,
students, interns and other internal workforce.
17 Other internal workforce/non-employees according to our financial reporting guidelines (e.g. apprentices, students, interns and other internal workforce).
18 External/third party workers who work in our workforce/contingent workers.
19 Employee structure data are only for employees, without other internal workforce and without external/third party workers.
20 Severely Handicapped Employees-rate (SHE) is based on legally defined guidelines and specifications according §§ 154-1+3 SGB IX (German Social Law).
21 Employees, without other internal workforce and without external workforce.
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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

German

Top nationalities worldwide21

Sept. 30th

FY 2023% of total employees 25%

FY 2022+/–

Standards

26%

–2.1%

GRI 405-1

AmericanSept. 30th

% of total employees 14%

14%

0.0%

GRI 405-1

IndianSept. 30th

% of total employees 12%

11%

5.5%

GRI 405-1

ChineseSept. 30th

% of total employees 10%

10%

0.0%

GRI 405-1

Czech

Sept. 30th

% of total employees 3%

3%

0.0%

GRI 405-1

Other nationalities

Sept. 30th

% of total employees 36%

36%

0.0%

GRI 405-1

Total

Sept. 30th

No. (rounded)289,600

3.6%

GRI 2-7b, WEF

Employment characteristics22

Employees with permanentworking contract

Employees with temporary
working contract

Permanent/temporary
working contract

Full-time employees in headcountPart-time employees in headcount300,100

EMEA

Sept. 30th

No. (rounded)

170,300

165,300

3.0%

GRI 2-7b, WEF

AmericasSept. 30th

No. (rounded)

65,40063,300

3.3%

GRI 2-7b, WEF

Asia, Australia

Sept. 30th

No. (rounded)

64,40061,000

5.6%

GRI 2-7b, WEF

Women

Sept. 30th

No. (rounded)

81,50077,900

4.6%

GRI 2-7b, WEF

Men

Sept. 30th

No. (rounded)

218,400

211,500

3.3%

GRI 2-7b, WEF

No/other gender entry Sept. 30th

No. (rounded)

140

170

−17.6%GRI 2-7b, WEF

Total

No. (rounded)

18,50019,500−5.1%

GRI 2-7b, WEF

Sept. 30th

EMEA

Sept. 30th

No. (rounded)

4,800

5,200

−7.7%

GRI 2-7b, WEF

AmericasSept. 30th

No. (rounded)

400

400

0.0%

GRI 2-7b, WEF

Asia, Australia

Sept. 30th

No. (rounded)

13,40013,900−3.6%

GRI 2-7b, WEF

Women

Sept. 30th

No. (rounded)

6,100

6,300

−3.2%

GRI 2-7b, WEF

Men

Sept. 30th

No. (rounded)

12,50013,200−5.3%

GRI 2-7b, WEF

No/other gender entry Sept. 30th

No.

2

12

−83.3%GRI 2-7b, WEF

Contract type n/a

No. (rounded)

900

1,600

−43.8%GRI 2-7b, WEF

Sept. 30th

Total

Sept. 30th

No. (rounded)

304,500

295,400

3.1%

GRI 2-7

EMEA

Sept. 30th

No. (rounded)

161,400

157,200

2.7%

GRI 2-7

AmericasSept. 30th

No. (rounded)

65,50063,400

3.3%

GRI 2-7

Asia, Australia

Sept. 30th

No. (rounded)

77,60074,700

3.9%

GRI 2-7

Women

Sept. 30th

No. (rounded)

78,10074,700

4.6%

GRI 2-7

Men

Sept. 30th

No. (rounded)

226,300

220,400

2.7%

GRI 2-7

No/other gender entry Sept. 30th

No. (rounded)

140

180

−22.2%GRI 2-7

Total

No. (rounded)

14,10013,800

2.2%

GRI 2-7

Sept. 30th

EMEA

Sept. 30th

No. (rounded)

13,60013,300

2.3%

GRI 2-7

AmericasSept. 30th

No. (rounded)

300

300

0.0%

GRI 2-7

Asia, Australia

Sept. 30th

No. (rounded)

160

150

6.7%

GRI 2-7

Women

Sept. 30th

No. (rounded)

9,500

9,500

0.0%

GRI 2-7

Men

Sept. 30th

No/other gender entry Sept. 30th

No. (rounded)

4,600

4,300

7.0%

GRI 2-7

No.

6

6

0.0%

GRI 2-7

21 Employees, without other internal workforce and without external workforce.
22 Employment characteristics only for employees, without other internal workforce and without external/third party workers.
SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

900

1,600

−43.8%GRI 2-7

Full-/part-time employees
in headcountFull-/part-time n/a

Sept. 30th

No. (rounded)

Employees covered by collective
bargaining agreements

Germany

Sept. 30th

% of total employees
in Germany
78.6%

78.3%

0.4%

GRI 2-30

Additional employees covered bycollective agreements23

Germany

Sept. 30th

% of total employees
in Germany
19.2%

19.5%

–1.5%

GRI 2-30

Sept. 30th

% of total employees
in Germany
2.2%

2.2%

0.0%

GRI 2-30

Sept. 30th

No. (rounded)

32,90030,900

6.5%

GRI 405-1

Sept. 30th

% of employees inall management
positions

21.6%

20.6%

4.9%

GRI 405-1

Sept. 30th

% of employees inall management
positions

78.4%

79.4%

–1.3%

GRI 405-1

No/other gender entry Sept. 30th

% of employees inall management
positions

0.0%

0.0%

Total

Sept. 30th

No. (rounded)

500

500

0.0%

GRI 405-1

Sept. 30th

% of employees in
top management
positions

30.8%

27.2%

13.2%

GRI 405-1

Sept. 30th

% of employees in
top management
positions

69.2%

72.8%

–4.9%

GRI 405-1

No/other gender entry Sept. 30th

% of employees in
top management
positions

0.0%

0.0%

Age group < 30

Sept. 30th

% of employees in
top management
positions

0.2%

0.2%

0.0%

GRI 405-1

Sept. 30th

% of employees in
top management
positions

42.7%

46.0%

–7.2%

GRI 405-1

Sept. 30th

% of employees in
top management
positions

57.1%

53.7%

6.3%

GRI 405-1

Senior managers represented by“Executive staff committee”

Germany

Diversity of employees per category and function24
Total

Women
Employees in all management­positions25
Men

Women

Men
Employees in top management
positions26

Age group 30 – 50

Age group > 50

GRI 405-1

GRI 405-1

23 Employees not covered by collective bargaining agreements, but the organization determines their working conditions and terms of employment based on collective bargaining
agreements that cover its other employees or similar agreements.
24 Diversity data only for employees, without other internal workforce and without external/third party workers.
25 Employees in all management positions with disciplinary responsibility, but without Managing Board Members.
26 Employees in top management positions with disciplinary responsibility, but without Managing Board Members.
SIEMENS SUSTAINABILIT Y REPORT 2023

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6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Sept. 30th

No. (rounded)

32,40030,400

6.6%

GRI 405-1

Sept. 30th

% of employees in
middle & juniormanagement­positions

21.4%

20.5%

4.4%

GRI 405-1

Sept. 30th

% of employees in
middle & juniormanagement­positions

78.6%

79.5%

–1.1%

GRI 405-1

No/other gender entry Sept. 30th

% of employees in
middle & juniormanagement­positions

0.0%

0.0%

Age group < 30

Sept. 30th

% of employees in
middle & juniormanagement­positions

1.1%

1.0%

10.0%

GRI 405-1

Sept. 30th

% of employees in
middle & juniormanagement­positions

64.7%

64.5%

0.3%

GRI 405-1

Age group > 50

Sept. 30th

% of employees in
middle & juniormanagement­positions

34.2%

34.5%

–0.9%

GRI 405-1

Total

Sept. 30th

No. (rounded)285,700

278,200

2.7%

GRI 405-1

Sept. 30th

% of employees in
non-management
positions

28.2%

28.0%

0.7%

GRI 405-1

Sept. 30th

% of employees in
non-management
positions

71.8%

72.0%

–0.3%

GRI 405-1

No/other gender entry Sept. 30th

% of employees in
non-management
positions

0.0%

0.1%

–100.0% GRI 405-1

Age group < 30

Sept. 30th

% of employees in
non-management
positions

17.2%

17.1%

0.6%

GRI 405-1

Sept. 30th

% of employees in
non-management
positions

58.5%

58.4%

0.2%

GRI 405-1

Age group > 50

Sept. 30th

% of employees in
non-management
positions

24.3%

24.5%

–0.8%

GRI 405-1

Production

Sept. 30th

% of total employees
in function
25.2%

25.0%

0.8%

GRI 405-1

Sept. 30th

% of total employees
in function
29.3%

28.7%

2.1%

GRI 405-1

Sept. 30th

% of total employees
in function
22.7%

22.5%

0.9%

GRI 405-1

General administration Sept. 30th

% of total employees
in function
48.4%

48.2%

0.4%

GRI 405-1

Total

Women

Men

Employees in middle & junior­management positions27

Age group 30 – 50

Women

Men
Employees in non-management
positions

Age group 30 – 50

Women in functions

Sales and marketing
Research and­development

27 Employees in middle & junior management positions with disciplinary responsibility, but without Managing Board Members.
SIEMENS SUSTAINABILIT Y REPORT 2023

118

GRI 405-1

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Sept. 30th

% of total employees
in STEM
19.3%

19.3%

0.0%

GRI 405-1

Sept. 30th

% of total employees
in STEM and­management
14.3%

13.3%

7.5%

GRI 405-1

In management­positions28

Sept. 30th

% of total employees
in revenue-generating functions and inmanagement
15.6%

14.6%

6.8%

GRI 405-1

Total

Fiscal Year

No. (rounded)

40,70047,300−14.0%GRI 401-1, WEF

Total
Women in STEM-related positions
In management­positions28

Women in revenue-generating
functions
Hirings

Hirings

EMEA

Fiscal Year

No. (rounded)

17,30019,300−10.4%GRI 401-1, WEF

AmericasFiscal Year

No. (rounded)

12,00013,800−13.0%GRI 401-1, WEF

Asia, Australia

Fiscal Year

No. (rounded)

11,40014,300−20.3%GRI 401-1, WEF

Women

Fiscal Year

No. (rounded)

12,00014,100−14.9%GRI 401-1, WEF

Men

Fiscal Year

No. (rounded)

28,50032,900−13.4%GRI 401-1, WEF

No/other gender entry Fiscal Year

No.

26

50

−48.0%GRI 401-1, WEF

Gender n/a

No.

200

228

–12.3%GRI 401-1, WEF

Age group < 30

Fiscal Year

No. (rounded)

18,40021,600−14.8%GRI 401-1, WEF

Age group 30 – 50

Fiscal Year

No. (rounded)

19,60022,600–13.3%GRI 401-1, WEF

Age group > 50

Fiscal Year

No. (rounded)

2,500

3,000

−16.7%GRI 401-1, WEF

Age n/aFiscal Year

No.

200

228

−12.3%GRI 401-1, WEF

Total

Fiscal Year% of average numberof employees
12.9%

15.4%

−16.2%GRI 401-1, WEF

Fiscal Year% of average numberof employees
in region
10.0%

11.2%

−10.7%GRI 401-1, WEF

Fiscal Year% of average numberof ­employees
in region
18.2%

21.9%

−16.9%GRI 401-1, WEF

Asia, Australia

Fiscal Year% of average numberof ­employees
in region
14.9%

19.7%

−24.4%GRI 401-1, WEF

Women

Fiscal Year% of average­number of women

14.0%

17.1%

−18.1%GRI 401-1, WEF

Fiscal Year% of average­number of men

12.5%

14.7%

−15.0%GRI 401-1, WEF

No/other gender entry Fiscal Year% of average­number of­employees with ­no/other gender

16.4%

89.8%

−81.7%GRI 401-1, WEF

Age group < 30

Fiscal Year% of average numberof employees
in age group
37.6%

46.7%

−19.5%GRI 401-1, WEF

Fiscal Year% of average numberof employees
in age group
10.6%

12.4%

−14.5%GRI 401-1, WEF

Fiscal Year% of average numberof employees
in age group
3.2%

3.7%

−13.5%GRI 401-1, WEF

EMEA

Americas

Hiring rate

Fiscal Year

29

Men

Age group 30 – 50

Age group > 50

28 Employees in management positions with disciplinary responsibility, but without Managing Board Members.
29 Hiring rate is defined as the ratio of hirings into Siemens during the fiscal year to the average number of employees.
SIEMENS SUSTAINABILIT Y REPORT 2023

119

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Fiscal Year

30,40035,800−15.1%GRI 401-1, WEF

Exits
Total

Exits30

EMEA

Fiscal Year

No. (rounded)

13,00015,000−13.3%GRI 401-1, WEF

AmericasFiscal Year

No. (rounded)

9,200

11,700−21.4%GRI 401-1, WEF

Asia, Australia

Fiscal Year

No. (rounded)

8,200

9,200

−10.9%GRI 401-1, WEF

Women

Fiscal Year

No. (rounded)

8,500

9,500

−10.5%GRI 401-1, WEF

Men

Fiscal Year

No/other gender entry Fiscal Year

No. (rounded)

21,80026,100−16.5%GRI 401-1, WEF

No.

28

10

180.0%GRI 401-1, WEF

Gender n/a

Fiscal Year

No.

118

203

−41.9%GRI 401-1, WEF

Age group < 30

Fiscal Year

No. (rounded)

8,000

9,400

−14.9%GRI 401-1, WEF

Age group 30 – 50

Fiscal Year

No. (rounded)

14,90018,200−18.1%GRI 401-1, WEF

Age group > 50

Fiscal Year

No. (rounded)

7,400

8,000

−7.5%

GRI 401-1, WEF

Age n/aFiscal Year

No.

118

203

−41.9%GRI 401-1, WEF

Total

Fiscal Year% of average n­ umberof employees
9.6%

11.6%

−17.2%GRI 401-1

Voluntary turnoverrate31

Fiscal Year% of average n­ umberof employees
5.3%

6.6%

−19.7%GRI 401-1

Fiscal Year% of average n­ umberof employees
4.3%

5.0%

−14.0%GRI 401-1

Fiscal Year% of average numberof employees inregion7.5%

8.7%−13.8%GRI 401-1

Fiscal Year% of average numberof employees inregion
14.0%

18.6%

−24.7%GRI 401-1

Fiscal Year% of average numberof employees inregion
10.7%

12.6%

−15.1%GRI 401-1

Women

Fiscal Year% of average numberof women
9.9%

11.5%

−13.9%GRI 401-1

Men

Fiscal Year% of average numberof men9.5%

11.6%−18.1%GRI 401-1

No/other gender entry Fiscal Year% of average numberof employees with
no/other gender
entry
17.7%

18.0%

−1.7%

GRI 401-1

Age group < 30

Fiscal Year% of average numberof employees inage group
16.4%

20.4%

−19.6%GRI 401-1

Fiscal Year% of average numberof employees inage group
8.0%

10.0%

−20.0%GRI 401-1

Fiscal Year% of average numberof employees inage group
9.2%

10.1%

−8.9%

GRI 401-1

Total (w/o SHS)

Fiscal Year

No. (rounded)

Total (w/o SHS)

Fiscal Year% of total employees 43.5%

Involuntary turnoverrate32

EMEA

AmericasAsia, Australia
Employee turnover rate

No. (rounded)30

Age group 30 – 50

Age group > 50
Employee share programs33
Employees participating in the
Siemens employee share plans

102,000

103,000

−1.0%

44.5%

−2.2%

30 Turnover rate is defined as the ratio of voluntary and involuntary exits from Siemens during the fiscal year to the average number of employees.
31 Voluntary turnover rate is based on employee decision.
32 Involuntary turnover rate is based on other reasons, including dismissals, end of temporary contracts, mutual consent, (early) retirement, death, and other reasons that are not an
employee decision.
33 Based on employees with eligibility to share plans.
SIEMENS SUSTAINABILIT Y REPORT 2023

120

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Total

Sept. 30th

No. (rounded)

5,800

5,500

5.5%

GRI 2-7

Germany

Sept. 30th

No. (rounded)

3,600

3,900

−7.7%

GRI 2-7

Sept. 30th

No. (rounded)

1,100

1,000

10.0%

GRI 2-7

Professional education and lifelong learning
Apprentices and dual students

Average number of interns/(doctoral)
students with an educational/
learning target (e.g. mandatoryinternship)
Total
Spending on employee educationand training

Total

Fiscal Year

Million €

416.3

374.6

11.1%

GRI 404-2, WEF

Spending on employee training

Total

Fiscal Year

Million €

237.0

205.4

15.4%

GRI 404-2, WEF

Spending on employee training
per employee

Total

Fiscal Year

€

753

667

12.9%

GRI 404-2, WEF

Spending on employee training
per full time employee

Average training hours per
employee

Average training hours per
employee category

Total

Fiscal Year

€

763

676

12.8%

GRI 404-2, WEF

Total

Fiscal Year

No.

30

26

12.1%

GRI 404-1, WEF

Digital learning

Fiscal Year

No.

23

21

9.4%

GRI 404-1, WEF

On-site training

Fiscal Year

No.

6

5

23.1%

GRI 404-1, WEF

Women

Fiscal Year

No.

28

26

9.0%

GRI 404-1, WEF

Men

Fiscal Year

No.

30

27

13.1%

GRI 404-1, WEF

no/other genderFiscal Year

No.

18

39

−54.2%GRI 404-1, WEF

Blue-collar workers

Fiscal Year

No.

22

20

12.0%

GRI 404-1, WEF

White-collar workers

Fiscal Year

No.

31

28

12.6%

GRI 404-1, WEF

Top management
positionsFiscal Year

No.

34

28

21.5%

GRI 404-1, WEF

Middle/junior management positions

Fiscal Year

No.

36

28

26.6%

GRI 404-1, WEF

Non-management
positionsFiscal Year

No.

29

26

10.7%

GRI 404-1, WEF

Function: Production

Fiscal Year

No.

30

27

12.6%

GRI 404-1, WEF

Function: Sales andmarketing

Fiscal Year

No.

27

24

10.7%

GRI 404-1, WEF

Function: Researchand development

Fiscal Year

No.

31

27

16.7%

GRI 404-1, WEF

Function: Generaladministration

Fiscal Year

No.

27

24

12.8%

GRI 404-1, WEF

Fiscal Year

No. (rounded)

136,000

116,600–16.6%GRI 404-2, WEF

Modules in Siemens digital global
learning platform My Learning World Total (w/o SHS)
Share of employees with access todigital learning offerings

Total

Fiscal Year% of total employees 99.6%

90%

10.7%

GRI 404-2, WEF

Participation rate in learning offerings Total

Fiscal Year% of total employees 100%

100%

0.0%

GRI 404-2, WEF

Fiscal Year

No.

29

0.0%

GRI 404-2, WEF

Development programs
Siemens Core Learning Paths (CLP)
Siemens Potential Development­Programs (PDP)
Xcelerate Your Potential @ Siemens(XPS)
Siemens Finance Excellence­Program (FEP)

Total

29

Total (w/o SHS)

Fiscal Year

No.

38

36

5.6%

GRI 404-2, WEF

Total community

Sept. 30th

No.

23

22

4.5%

GRI 404-2, WEF

Active participants(w/o SHS)

Sept. 30th

No.

3

2

50.0%

GRI 404-2, WEF

Total community

Sept. 30th

No.

69

68

1.5%

GRI 404-2, WEF

Active participants

Sept. 30th

No.

8

9

–11.1%GRI 404-2, WEF

SIEMENS SUSTAINABILIT Y REPORT 2023

121

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Siemens Graduate Program (SGP)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Total community

Sept. 30th

No.

954

913

4.5%

GRI 404-2, WEF

Active participants

Sept. 30th

No.

132

99

33.3%

GRI 404-2, WEF

Total

Fiscal Year

No.

4

2

100.0%GRI 403-9, WEF

Occupational health & safety34

Fatalities – work related

Fatality Rate – work related35

High-consequence work-related
injuries (excluding fatalities)

High-consequence injury rate37

Recordable injuries

Total recordable injury rate38

Lost time injuries (LTI)

Lost time injury frequency rate
(LTIFR)39

Temporary workers

Fiscal Year

No.

0

0

GRI 403-9, WEF

Employees

Fiscal Year

No.

0

1

−100.0% GRI 403-9, WEF

Contractors

Fiscal Year

No.

4

1

300.0%

Total36

Fiscal Year

No.

0.000

0.001

–100.0% GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

0.000

0.000

GRI 403-9, WEF

Employees

Fiscal Year

No.

0.000

0.0003−100.0% GRI 403-9, WEF

Total

Fiscal Year

No.

50

68

−26.5%GRI 403-9, WEF

GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

3

1

200.0%GRI 403-9, WEF

Employees

Fiscal Year

No.

47

67

−29.9%GRI 403-9, WEF

Total

Fiscal Year

No.

0.015

0.021

–28.5%GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

0.009

0.003

178.4%GRI 403-9, WEF

Employees

Fiscal Year

No.

0.015

0.022

–31.4%GRI 403-9, WEF

Total

Fiscal Year

No.

1,466

1,518

−3.4%

GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

199

210

−5.2%

GRI 403-9, WEF

Employees

Fiscal Year

No.

1,267

1,308

−3.1%

GRI 403-9, WEF

Total

Fiscal Year

No.

0.43

0.46

–6.1%

GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

0.63

0.71

–12.1%GRI 403-9, WEF

Employees

Fiscal Year

No.

0.41

0.44

–5.3%

GRI 403-9, WEF

Total

Fiscal Year

No.

805

853

−5.6%

GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

96

112

−14.3%GRI 403-9, WEF

Employees

Fiscal Year

No.

709

741

−4.3%

GRI 403-9, WEF

Total

Fiscal Year

No.

0.24

0.26

−8.2%

GRI 403-9, WEF

Temporary workers

Fiscal Year

No.

0.30

0.38

−20.5%GRI 403-9, WEF

Employees

Fiscal Year

No.

0.23

0.25

−6.5%

GRI 403-9, WEF

Number of hours worked

Employees

Fiscal Year

No. (in thousand)

614,731

600,758

2.3%

GRI 403-9

Occupational Illness cases

Selected countries

Fiscal Year

No.

62

8840

−29.5%GRI 403-10, WEF

Fatalities due to occupational Illness Selected countries

Fiscal Year

No.

6

1140

–45.5%GRI 403-10

Rate of employees covered withOHS MS that has been externallyaudited

Total

Sept. 30th

% of total number
employees

57%

57%41

0.0%

GRI 403-8

Rate employees covered with OHS
MS that has been internally audited

Total (w/o SHS)

Sept. 30th

% of total number
employees

99.9%

n.a.

Rate of access to Medical Care42

Total (w/o SHS)

Sept. 30th

% of total number
employees

99%

89%

11.8%

Rate of access to Health Education42 Total (w/o SHS)

Sept. 30th

% of total number
employees

94%

85%

11.0%

34 Excluding CTSI Oncology Solutions.
35 Number of Fatalities x 200,000 / working hours.
36 Fatality Rate w/o contractors.
37 Number of High-consequence injuries x 200,000 / working hours.
38 Number of Recordable injuries x 200,000 / working hours.
39 Number of Lost Time Cases (LTC) x 200,000 / working hours. LTC are accidents that results in at least one lost working day.
40 Due to system change of German Statutory Agency adjusted prior year figures.
41 Realignment due to calculation error in last year.
42 Scope of HM Reporting: Countries >30 employees as well as affiliated companies >30 employees.
SIEMENS SUSTAINABILIT Y REPORT 2023

122

GRI 403-8
GRI 403-6

6 Our sustainability indicators

Sustainability Key Performance Indicators(KPIs)

Fiscal Year/
September 30th Unit

FY 2023

FY 2022+/–

Standards

Total

Fiscal Year

Million €

29.2

32.1

−9.0%

GRI 201-1, WEF

Total

Fiscal Year% of Net Income

0.3%

0.7%

−53.1%GRI 201-1, WEF

Total

Fiscal Year

Million €

14.0

13.5

3.5%

GRI 201-1, WEF

Corporate Citizenship
Donations
Sponsoring Social programs(e.g. Arts and education)
Community investment total
Volunteering hours

Total

Fiscal Year

Million €

43.2

45.6

−5.3%

GRI 201-1, WEF

Total

Fiscal Year% of Net Income

0.5%

1.0%

−51.2%GRI 201-1, WEF

Total (w/o SHS)

Fiscal Year

No. (rounded)

36,50032,650

11.8%

GRI 201-1, WEF

DEGREE SUSTAINABILITY FRAMEWORK – KPI OVERVIEW (FIGURES WITHOUT SIEMENS HEALTHINEERS)
Decarbonization
Scope 1+2: Emission reduction
to base year

Fiscal Year% to base year
(2019)

−50%

−46%

9.5%

Total (w/o SHS)

Fiscal Year% to base year
(2020)43

−0.9%

2.5%

−134.0%Total (w/o SHS)

up to Sept.
30th% of total numberof employees

69.0%

99.9%44

Total (w/o SHS)

Fiscal Year% of relevant­revenue45

51%

35%

43.0%

Fiscal Year% of relevant­purchase volume

35%

34%

3.0%

Total (w/o SHS)

Fiscal Year% of relevant­purchase volume

< 1%

< 1%

Quota of waste-to-landfill reduction
to base year (w/o construction waste) Total (w/o SHS)

Fiscal Year% to base year
(2021)

−15%

−12%

20.2%

Sept. 30th

% of employees in
top management

31.1%

27.7%

12.3%

Total (w/o SHS)

Fiscal Year% of total numberof employees

99.9%

98.6%

1.3%

Digital learning hours per employee Total (w/o SHS)

Fiscal Year

No.

23

21

9.5%

Sept. 30th

% of total numberof employees

96%

87%

10.3%

Fiscal Year% to base year
(2020)

−26%

−19%

36.8%

Supply Chain: Emission reduction
to base year

Total (w/o SHS)

EthicsQuota of participants of BusinessConduct Guideline training(since FY 23)
Governance

Resource efficiency
Quota of product families with
Robust Eco Design
Purchase Quota –Secondary material for metals
Purchase Quota –Secondary material for resins

Total (w/o SHS)

EquityFemale share in top management
Share of employees with access to
Siemens employee share plans46

Total (w/o SHS)

Employability
Level of access to Employee­Assistance Program42
Improvement in global LTIFR47
to base year

Total (w/o SHS)
Total (w/o SHS)

42 Scope of HM Reporting: Countries >30 employees as well as affiliated companies >30 employees.
43 Base year 2020 is calculated w/o individual supplier emission data.
44 Year-to-year comparison between fiscal 2022 and fiscal 2023 is limited. The current cycle started in fiscal 2023.
45 In FY 23 the share of relevant revenue was 65% of total revenue Siemens w/o SHS.
46 Where legally possible and reasonable.
47 Number of Lost Time Cases (LTC) x 200,000 / working hours. LTC are accidents that results in at least one lost working day.
SIEMENS SUSTAINABILIT Y REPORT 2023

123

Pages 124 – 157

Annex

SIEMENS SUSTAINABILIT Y REPORT 2023

124

7.1 Reporting methodology

7.1

Reporting methodology

Sustainability is a fundamental principle that guides our

Nonetheless, they are consistent with the DEGREE sustain-

every action. The Sustainability Report 2023 (below, theability framework and the global nonfinancial programs and“Report”) supplements our financial reporting for fiscal

initiatives at Siemens.

2023. The present chapter describes the key elements of oursustainability reporting.

Data collection
Given the size and worldwide presence of Siemens, data

Reporting approachcollection poses a logistical challenge. Moreover, our compa-

The Report explains the strategy, organization, initiatives,

nies throughout the world need to comply with national

programs, management approach, targets, actions, andregulations on the compilation and definition of their key

results of sustainable corporate governance. It supplements

figures, which means that the generated data is not always

the financial reporting provided in the current Annual Reportcomparable. Where applicable, we point out any significant

and updates the financial reporting from the previous year.

limitations in the information presented in the Report.

It also documents the progress we have made in implementing the Ten Principles of the United Nations Global Compact,

The data presented in this Report is collected via various

the United Nations CEO Water Mandate, and the recommen-internal reporting systems, which for the most part are dif-

dations of the Task Force on Climate-Related Financial

ferent from those used to collect the financial information­Disclosures (TCFD).

presented in our consolidated financial statements. In particular, the internal reporting systems used to collect theThis Report has been prepared in accordance with the Stan-

information presented in this Report may be subject to lessdards of the Global Reporting Initiative (GRI 2021) and thestringent internal requirements for documentation, dataanti-corruption reporting recommendations of the Global

generation, and auditing, including with respect to the IT

Compact from Transparency International. Our reporting on

systems and controls employed. We reserve the right tohuman rights activities is based on the UN Guiding Principles

change the internal guidelines applicable to the collection of(UN GP) Reporting Framework and the corresponding guide-

the data published in this Report without prior notice. Due tolines.

rounding, some of the numbers presented in this Report may

Reporting period and Report boundaries
This Report refers to the Siemens 2023 fiscal year (October 1,
2022, to September 30, 2023). Any exceptions are indicatedas such. In general, the Report covers all our fully consolidated companies. As a general rule, minority interests are
not included in the Report. Unless otherwise noted, the key
indicators and information reported here relate to the company’s ongoing operations. Some management approaches
do not cover all Siemens entities or parts of the organization.
Some parts of the Siemens organization may have introduced specific programs or initiatives that differ from thegeneral approaches described in this Report.

SIEMENS SUSTAINABILIT Y REPORT 2023

125

not add up precisely to the totals presented, and percentages
may not precisely reflect the absolute figures to which theyrefer.

7.1 Reporting methodology

Methodology, environmental reporting, andcollection of environmental data

We include all Kyoto gases in our emissions calculations:

Within our environmental information system, in fiscal 2023

hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), andwe evaluated 250 reports from locations in all relevant
countries where defined threshold values for environmental
management parameters like energy usage, resource usage,
water consumption, and emissions were exceeded. We use

carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
sulphur hexafluoride (SF6). To assess the relevance of GHG
emissions other than CO2, they are converted into metrictons of CO2 equivalents (CO2e). This number is based on the
global warming potential over 100 years of each of theabsolute values – for example, energy consumption in giga-

greenhouse gases compared to the global warming potential

joules – to measure and monitor our environmental impacts.

of CO2.

We report environmental data for ongoing operations.

We follow the financial control approach to consolidate theValues have been extrapolated where applicable (e.g.,reporting of emissions.

waste, energy consumption, or emissions) to 100% coveragein order to reflect total consumption. The extrapolation is

The source of the emissions factors applied in the 2023

performed on the basis of the area not covered in the report-

reporting year is the “IEA Emissions Factors 2022” publisheding system. The difference represents a share of 20% for theby the International Energy Agency. For example, the global

reporting period. We monitor our environmental impacts at

CO2e emissions factor used for electricity generation only is

all environmentally relevant office and production sites on
the basis of environmental data collected on a quarterly

461 g CO2e/kWh. If regional calculations are available, local
emissions factors should be used.

basis.
Customer Avoided Emissions
Scope 3 upstream emissions

The description of our methodology for calculating “­ customer

Scope 3 emissions from our supply chain have been calcu-

avoided emissions” can be found the Annex on

lated using a cross-regional, macroeconomic input-output

PRINCIPLES FOR CUSTOMER AVOIDED EMISSIONS.

model based on our volume of purchased goods and services.

REPORTING

Scope 3 downstream emissions

Methodology, headcount reporting, andcollection of employee data

With regard to Scope 3 downstream emissions, we calculated

Within our global HR reporting, we report headcount num-these emissions in fiscal 2023 in line with the Greenhousebers according to our Siemens Corporate Financial ReportingGas (GHG) Protocol, and therefore accounted for andGuidelines. These Guidelines are embedded in our global HR

reported the emissions from the use of Siemens offerings

reporting standards and HR reporting landscape systemsold or investments made in the reporting year over their(HRL), which is the basis for employee reporting figures.

entire use phase duration. For calculating these emissions,“Employee” refers to every natural person in an active

in most cases we apply the global power-mix emissions

employment relationship with a fully consolidated Siemens­factor defined by the International Energy Agency (IEA). For

company. Employees are all internal workforce without

calculating the emissions of end products and key compo-

apprentices, students, interns, and other internal workforce.

nents of end products (intermediate products), we apply the

All employee figures in the Social chapters refer to head-so-called “final product approach” defined in the GHG Protocol.

count. For some companies no employee structure data areThis means that in the case of motors, for example, we takeavailable due to data delivery by SGATE (Siemens Global

into account their power loss as well as their effective power.

Adding Tool for Employees), which is a web-based tool for

If we applied the “intermediate product approach” to allcollecting, storing, and processing headcount figures forintermediate products – an approach that in the example ofcompanies that are consolidated but for a short time notmotors only takes into account their power loss – theable to deliver employee structure data. This can lead toreported emissions would be lower.

minor deviations in breakdown data.

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7.1 Reporting methodology

Employee turnover is defined as the ratio of voluntary andinvoluntary exits from Siemens during the fiscal year to theaverage number of employees. Voluntary turnover rate isbased on employee decision, whereas Involuntary turnoverrate is based on other reasons, including dismissals, end of
temporary contract, mutual consent, (early) retirement,
death, and other reasons that are not the employee’s decision.
Hiring rate is defined as the ratio of hirings into the Siemens
group during the fiscal year to the average number of
employees. The headcount numbers and rates for ­employees
in management positions include all managers with disciplinary responsibility, but without Management Board
Members (MBM).

Independent assurance
Our sustainability reporting is subject to high quality standards. Therefore, as in previous years, we commissioned an
independent audit firm to conduct a limited assurance of ourSustainability Report 2023. The results of the assurance
conducted by Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft are presented in the chapter titled “Independent
auditor’s limited assurance report.”

Editor’s noteAn effort has been made to use gender-neutral language
throughout. Nevertheless, if on occasion the masculine form
is used for easier readability, it stands for people of all genders.

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7.2 Reporting principles for Customer Avoided Emissions

7.2

Reporting principles for Customer Avoided
Emissions
For 15 years (until fiscal 2021), we reported the revenue

resulting from the use of the company’s products and solu-

generated from our Environmental Portfolio and the result-tions (avoided emissions) helps convey a full picture of theing annual reduction of greenhouse gas emissions (GHG)

company’s contribution to global decarbonization.

achieved by our customers on the basis of the internal regulations defined in our Environmental Portfolio Guideline.

The term “Customer Avoided Emissions” refers to the “posi-Starting in fiscal 2022, we began to report key figures fortive” impact determined by comparing the GHG emissions ofsustainable activities, including revenue, in accordance withtwo different solutions or scenarios. Avoided emissions are

the new EU Taxonomy regulation. We are also continuing toemissions that are saved or avoided during the customer use

calculate and report on Customer Avoided Emissions.

phase from the use of our products or financing compared to

GHG Use Phase Impact Reporting Guidelinea baseline (reference scenario).

The Siemens GHG Use Phase Impact Reporting Guideline sets

The guideline used for calculating and reporting Customer

out basic requirements and guidelines for calculating and

Avoided Emissions is based on a methodology defined byreporting emissions associated with the use of products,

Siemens itself due to the lack of a commonly used external

systems, solutions, and services sold and investments madedefinition or standard. It is aligned with the GHG Scope 3

by Siemens. It covers:

downstream reporting according to the GHG Protocol Standard.

→ Scope 3 downstream GHG emissions resulting from the

Calculation principles

use of sold products (Category 11) and investments

The calculation principles are based on the standards “A Cor-­(Category 15) according to the GHG Protocol Corporate

porate Accounting and Reporting Standard – Revised Edition”

Value Chain (Scope 3) Standard (GHG Protocol Standard)and “GHG Protocol for Project Accounting,” both published→ Customer Avoided Emissions (according to Siemens’ own

by the Greenhouse Gas Protocol Initiative. These principles
are relevance, completeness, consistency, transparency,

methodology

accuracy, and conservativeness.
The following summary will focus on the second part, thecalculation and reporting of Customer Avoided Emissions.

All Siemens Businesses and SFS are required to apply these

Customer Avoided Emissions result either from products,

principles in order to enable the integrity and credibility ofsystems, solutions, and/or services sold by Siemens or fromthe data and a true and fair presentation of Siemens’ Customer

investments made by Siemens Financial Services (SFS).

Avoided Emissions.

Customer Avoided Emissions

Accounting boundaries

A company’s carbon footprint does not measure the company’s

The accounting boundaries for data on Customer Avoided

contribution to decarbonization by its partners and customers.

Emissions only encompass the phase during which a prod-

Although the carbon footprint can indeed reflect emissions

uct, system, solution, or service is used by the customer or

reductions resulting from the use of its solutions (Scope 3

the term of an investment. Therefore, GHG emissions occur-downstream emissions) over time, it does not indicatering during other phases of the lifecycle – for instance, in thewhether these solutions have enabled the customer tosupply chain, in production, or upon end-of-life disposal –achieve lower emissions than an alternative solution (refer-

are not included in the calculation.

ence scenario). Quantifying the decarbonization impact

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7.2 Reporting principles for Customer Avoided Emissions

Accounting for Customer Avoided Emissions

Baseline methodology

All Siemens Businesses and SFS are required to report theThe baseline methodology defined in the guideline refers to

Customer Avoided Emissions for all products, systems, solu-

the comparison of a Siemens product, system, solution,

tions, services, or investments that lead to the avoidance ofservice, or investment with a reference situation in the

GHG emissions during the customer use phase.

absence of the Siemens offering. To enable credibility andavoid overstating the positive effect, the reference scenario

Customer Avoided Emissions represent the difference

has to represent as best as possible the situation that would

between the GHG emissions of a Siemens offering and thehave occurred without the Siemens solution.

GHG emissions of a baseline or reference scenario. Siemens
Businesses and SFS must account for and report the annual→ Before-and-after comparison: Refers to the difference

Customer Avoided Emissions from the use of Siemens offer-

between an initial customer situation and the situation

ings sold or investments made in the reporting year over theafter the implementation of a Siemens offering intended

entire duration of their use phase (“future impact of today’s

to improve or substitute certain characteristics. This com-revenue” similar to Scope 3 use phase emissions according

parison can be applied, for example, to cases in which ato the GHG Protocol Standard).

Siemens solution optimizes a building’s energy consumption.

Exclusion criteria:→ Direct comparison with a reference technology:

Before calculating Customer Avoided Emissions, all Siemens

Refers to the difference between the Siemens offering

products, systems, solutions, services, and investments need

and a comparable other single technology or predecessor

to be checked against the following exclusion criteria:with a similar purpose. This comparison may be applied,for example, to new product generations or the electrifi-→ Field of application: No Customer Avoided Emissions may
be accounted for and reported in the military use or
nuclear power application fields.

cation of fossil fuel technologies.
→ Comparison with the installed base: Refers to thedifference between the Siemens offering and an average→ Objections and concerns of external stakeholders: If

market solution used for the same or a similar purpose

stakeholders express concerns or objections, internal or(market standard). This comparison can be applied, forexternal information is evaluated and appropriate mea-

example, to renewable energy projects by drawing asures are taken.

comparison with the average global greenhouse gas→ Adverse effects: If evidence comes to Siemens’ attention
that a Siemens product, system, solution, service, or

emission factor for electricity generation.

investment causes considerably greater adverse environ-

Recognition of Customer Avoided Emissions

mental impacts elsewhere in the element’s lifecycle,

In general, Customer Avoided Emissions are recognized for

Customer Avoided Emissions are not calculated.

products, systems, solutions, services, or investments. In

Greenhouse gases considered

many cases, however, Siemens delivers only the components
of a complete product, system, solution, service, or invest-

The accounting for Customer Avoided Emissions includes,

ment. In these cases, it is often impossible to directly deter-where appropriate, all six greenhouse gases defined in themine the avoided emissions attributable to the components

Kyoto Protocol (so-called “Kyoto gases”), including: carbon

during the use phase with the customer.

dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur

hexafluoride (SF6), hydrofluorocarbons (HFCs), and perfluo-

rocarbons (PFCs).

Therefore, Siemens Businesses and SFS need to apply thefollowing rules when accounting for and reporting Customer
Avoided Emissions:

To assess the relevance of GHG emissions other than CO2,

they are converted into metric tons of CO2 equivalents→ Siemens supplies the entire product, system, solution,over 100 years of the respective greenhouse gas compared

Customer Avoided Emissions during the customer use

to the global warming potential of CO2.

phase.

(CO2e). This number is based on the global warming potential

service, or investment: Siemens accounts for 100% of the

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7.2 Reporting principles for Customer Avoided Emissions→ Siemens provides all core component(s), even if they only

Calculation

represent intermediate products of an end application:

Siemens Businesses and SFS are required, where applicable,

Siemens accounts for 100% of the Customer Avoided

to report Customer Avoided Emissions associated with all

Emissions during the customer use phase.

products, systems, solutions, services, or investments that

→ Siemens provides some of the core component(s): In thelead to the avoidance of emissions in the customer use

first step, all core components that are involved withphase. The amount of Customer Avoided Emissions is the

Customer Avoided Emissions are identified. In the second

difference between the GHG emissions of the given Siemens

step, the Siemens share of the total Customer Avoided

offering and the reference scenario defined above.

Emissions of the end application is determined by calculating the ratio of Siemens components to the total net

Technical parameters and assumptionsdelivery price of all core components.

The calculation of Customer Avoided Emissions is based on→ Siemens does not provide any of the core components ofdifferent parameters in order to best reflect the amount ofa product, system, solution, service, or investment:

avoided emissions during the entire use phase of a Siemens

Siemens reports no Customer Avoided Emissions.

offering, similar to the calculation of downstream Scope 3
emissions. The calculation parameters (e.g., emission factors

Optional accounting of Customer Avoided Emissions

or expected use phase duration) should be reviewed andSo far, there are no robust calculation approaches to quantify

updated regularly in order to reflect the most current status

the decarbonization effect of all portfolio elements: forof these numbers. The calculation approach should beinstance, software or automation technology. Some Siemensconsistent with the calculation of downstream Scope 3­

products, systems, solutions, or services are “enabling tech-emissions ­(Categories 11 and 15).

nologies” and do not demonstrate a direct decarbonization
effect on the product-level. Nevertheless, these enabling

In some cases, the actual parameters, like the product’s

technologies can often be critical components needed for

operating time or intended intensity of use by the customer,

the transition to a low-carbon economy. One example arecannot be reliably determined. Under these circumstances,

solutions from Smart Infrastructure which can facilitate theconservative estimates should be applied and documented­system transformation to an electrification of the global

appropriately. In general, the emissions of the referenceenergy system. Therefore, quantifying these enabling decar-

scenario and the Siemens offering should include the poten-

bonization impacts requires calculation approaches on atial development of the situation over time. The calculation

system level where these components are built in. Due to theof future emissions from products with long lifespans islack of a commonly used external definition or standard, in

subject to a high degree of uncertainty. Using an energy

fiscal 2023 Siemens began to account for these “indirect” orscenario to describe a changing emission factor would lead“enabling” decarbonization effects but has decided to report

to incomparable calculation results whenever the scenario isthem separately for the purpose of transparency and conser-

updated. Therefore, we decided to use the annually updated

vativeness. The same accounting principles are applied as

emission factors, which incorporate the changes in thedescribed above. With regard to the example from Smartglobal energy mix from year to year, in a manner consistent

Infrastructure, the calculation to determine the contribution

with the calculation of our downstream Scope 3 emissions.

to electrification and therefore decarbonization is based on
the total global energy use and the share of electrification

The source of the emission factors applied in the 2023

and automation solutions from Smart Infrastructure as part

reporting year is the “IEA Emission Factors 2022” publishedof the total global investment in electrification. The eligibleby the International Energy Agency. For example, the global

revenue, based on the EU Taxonomy, is included in theCO2e emissions factor used for electricity generation only is­calculation along with the grid mix evolution of electricity
generation.

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461 g CO2e/kWh.

7.2 Reporting principles for Customer Avoided Emissions

If regional calculations are available, local emissions factors
should be used.
Offerings with no material Customer Avoided Emissions
impact, or in cases where the calculation cannot be reliably
determined when applying reasonable cost-benefit considerations, are not considered in the accounting.
Recalculation
To enable consistency, especially over time, Siemens Businesses and SFS recalculate the Customer Avoided Emissionsin accordance with the guideline. Events that lead to relevantchanges in the data on Customer Avoided Emissions typically
include corporate mergers, acquisitions, and divestments,
mistakes in previous calculations, changes in external standards or in the Siemens calculation methodology, significant
changes in the parameters and assumptions applied in thecalculation, and any other events that lead to materialchanges in calculation estimates.

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7.3 Our contribution to sustainable development of societies

7.3

Our contribution to sustainable developmentof societies– Effective influence in achieving UN’s Sustainable
Development Goals (SDGs)

The United Nations’ 17 Sustainable Development Goals(SDGs) and their 169 targets serve as a compass for the– SDGs included in our DEGREE sustainabilitychange efforts that must be made by governments, busi-­frameworknesses, cities, and civil society as a whole if we are to achievea more sustainable future. The SDGs and their associatedtargets address the most important economic, social, environmental, and governance-related challenges of our times,
and therefore they help stimulate transformational change.
At Siemens we have adopted them as values, and so the
SDGs also influence us as a company.

ty
ili
b
a

Deca

rbonization
E

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th

Em
pl
oy

Allocation of the SDG goals to Siemens sustainability framework DEGREE

Governanc
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ity
Equ
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

cy
f i cien
Resource ef

7.3 Our contribution to sustainable development of societies

They are firmly associated with our DEGREE sustainability

How we contribute to achieving the SDGs

framework, which guides our sustainability management, andFrom a global perspective, these are the SDGs where Siemens

they also describe the details of our sustainability ambitions.

has a high or medium impact:

The long-term priorities for Siemens as part of our sustain-

Goal 3 – Ensure healthy lives and promoteable development agenda are clear: We want to apply ourwell-being for all at all ages

engineering expertise and our approach to connect the realand digital worlds, improve people’s quality of life, and protect

We make a significant impact on SDG 3 with our businessthe planet. In particular, this is supported by our corporate

portfolio, especially through SHS and the production tech-

purpose of “We create technology to transform the everyday,

nologies we provide to pharmaceutical companies. In addition

for everyone.” The UN’s 17 SDGs have therefore becometo the impact of our portfolio, we also care about the healthfixtures in our everyday business. Siemens deploys its tech-and safety of our people and contract workers. Separately

nology portfolio to support the public and private sectors infrom SHS, Siemens sets ambitious goals for access tothe digital transformation of industry, building and network

Employee Assistance Programs and for reducing employee

infrastructures, mobility, and healthcare and can offer exten-

accident rates (Lost time injury frequency rate – LTIFR). We

sive business opportunities for value-enhancing growth. At

also participate in health-related community engagement

the same time, we provide cost-effective, innovative solutions

activities like cancer awareness campaigns and mobile clinics.

for the transition to carbon neutrality. These technologies
support customers in achieving their objectives while

Goal 4 – Ensure inclusive and equitable quality­consuming fewer resources. To varying extents, Siemens

education and promote lifelong learning oppor-

helps achieve most of the SDGs in the UN’s Agenda 2030 intunities for all

four important ways:
Lifelong learning is a basic prerequisite for ensuring employ→ through our products and solutions,ability for our people and in the job market in general. We→ by doing business responsibly,offer access to education in multiple ways, including learn-→ through our expertise and thought leadership, anding and education opportunities for all our people, as well as→ through our corporate citizenship activities andvocational and more advanced training through partnerships
with schools and universities. Education for our customers­community engagement.

and suppliers is likewise high on our agenda. We also aim to
inspire young people to pursue careers in STEM fields­(science, technology, engineering, and mathematics) with
our numerous corporate citizenship activities around theworld.

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7.3 Our contribution to sustainable development of societies

Goal 5 – Achieve gender equality and empower

Goal 8 – Promote sustained, inclusive and sus-

all women and girls

tainable economic growth, full and productive
employment, and decent work for all

We firmly believe that promoting diversity in the workforce
serves the interests of both society and Siemens itself.

Siemens is committed globally to the New Normal Working

Diversity reinforces our innovative strength, unleashes

Model. Our aim with the new normal is for all our people

employee potential, and directly contributes to our businessaround the world to be able to work on a mobile basis two to

success. Our human resources management also supports a

three days a week, wherever feasible and reasonable. Mobiletransformation in top management, where there is room forworking has many advantages for the individual and also for

improvement. We are recruiting more women for top mana-

the company: for instance, by ensuring that we are prepared

gerial positions and are including more women in network-

to respond flexibly during future crises. Our worldwide

ing activities, trainings, and mentoring programs. Withoutbusiness operations and our position as a thought leader

SHS, Siemens aims to have 30% of its top management

mean that in many countries we contribute toward thepositions worldwide filled by women by 2025.

growth of the gross domestic product (GDP). We are committed
to offering attractive jobs and facilitating employment, andGoal 7 – Ensure access to affordable, reliable,

we are encouraging the decoupling of economic growthsustainable, and modern energy for all

from energy consumption.

Our business portfolio covers the entire spectrum of applica-

Goal 9 – Build resilient infrastructure, promotetions for modern smart grids and energy distribution systems.

inclusive and sustainable industrialization, andThe rapid expansion of decentralized energy structures

foster innovation

powered by Siemens technology creates a more diverse
energy mix and improves the security of the energy supply.

As a global technology company and innovation leader in

The Internet of Things and data-based technologies foster

electrification, automation, and digitalization, Siemens

energy intelligence and pave the way toward a sustainablesupports sustainable industrialization. With our engineering

energy landscape. Our technologies facilitate access toexpertise, our knowledge of numerous sectors, and ourclean, reliable, low-carbon energy.

digital technology, we help our business partners across theentire value chain, from design to production, and fromoperations to maintenance. We believe in international
partnerships as the key to innovation. A large percentage ofour customers and suppliers are small and medium-sizedenterprises (SMEs). We have officially adopted sustainability
as an additional strategic imperative for our investment
decisions.

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7.3 Our contribution to sustainable development of societies

Goal 11 – Make cities and human settlements

Goal 16 – Promote peaceful and inclusive societ-

inclusive, safe, resilient, and sustainable

ies for sustainable development, provide accessto justice for all, and build effective, accountable,

Siemens is a trusted partner for municipal governments andand inclusive institutions at all levels

offers solutions across all infrastructure domains to makecities more efficient, sustainable, and resilient – for instance,

We anchor integrity and compliance throughout our company

with intelligent transportation solutions, efficient and safe

and advance the Siemens Integrity Initiative with externalbuildings, and smart-city initiatives that leverage the powerstakeholders. By these means and through our activities withof digitalization.

other players, we support fair competition and ensure ourcompany’s long-term success. Siemens is committed toGoal 12 – Ensure sustainable consumption andincorporating the requirements of the United Nations Global

production patterns

Compact (UNGC), the Human Rights Declaration, and allother relevant regulations into our supply chain and to pro-

Siemens is committed to using resources responsibly andmoting their principles through our work with external

recognizes that the circular economy offers highly beneficialorganizations and institutions.

opportunities for business, the environment, and society. By
the end of this decade we want to evolve even more toward

Goal 17 – Strengthen the means of implementa-

the circular economy, for example by increasing the percent-tion and revitalize the Global Partnership forage of metals and plastics we procure as secondary materials.

Sustainable Development

We also aim to reduce our amount of landfill waste. Siemens
has worldwide strategic initiatives for the design phase to

As a global company and an advocate of free trade, we

the end of lifecycle of its products and operations, and isbelieve that partnerships are a key to sustainable develop-

committed to robust, ecologically friendly design. We apply

ment and to our company’s success. We also recognize thedisruptive technologies and innovative business models toimportance of digitalization, project financing, and public-­

make an active contribution to the circular economy.

private partnerships for sustainable development. In all ofthese areas, we are partnering with international organiza-

Goal 13 – Take urgent action to combat climate

tions, business organizations, think tanks, nongovernmental

change and its impacts

organizations (NGOs), and academia, including the UNGC,
World Economic Forum (WEF), econsense, Transparency

Our portfolio helps our customers reduce their emissions
and thereby achieve their decarbonization goals. Siemens
was one of the world’s first industrial firms to commit to
making its own business activities carbon neutral by 2030.
In addition to reducing emissions from Siemens' operations
without SHS by 55% by 2025 and by 90% by 2030, we also
strive to lower all emissions associated with us – from our
supply chain throughout the entire use phase of our products. Siemens without SHS is committed to a 20% reductionin emissions in its supply chain by 2030 compared to 2020
and aims to achieve a CO2 neutral supply chain by 2050.
With its commitment to science-based targets, Siemens

supports the goal of the Paris Climate Agreement to limit
climate change to 1.5°C (Science-Based Target Initiative,
including SHS).

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International, and numerous universities.

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

7.4

Task Force on Climate-Related Financial
Disclosure (TCFD)
The G20 Financial Stability Board’s Task Force on Climate-­

The Managing Board addresses sustainability-related risks

Related Financial Disclosure provides a uniform frameworkand opportunities of strategic and company-wide impor-that companies can voluntarily use to report their climate-­tance and adopts appropriate measures. The Managing

related risks and opportunities and disclose the correspond-

Board also approves any changes to the DEGREE sustainability

ing information to investors, lenders, insurers, and otherframework.

stakeholders. This Annex provides an overview of Siemens’
activities based on these recommendations and offers refer-

The Siemens Sustainability Board (SSB) monitors andences to other sources of relevant information.

resolves Siemens’ sustainability topics, including tracking

Our governance in the area of climate action

the progress of our DEGREE ambition, providing input andguidance on sustainability reporting, and acting as a catalyst

Governance at the Managing Board level

for regional sustainability initiatives with the potential to

At Siemens, sustainability is rooted in all that we do, includ-scale across Siemens. The SSB is composed of representa-

ing our business purpose and strategy, corporate culture,

tives from Siemens’ businesses, countries, and Service andprocesses, and guidelines. The management of sustainability

Governance units. The SSB meets four times per year or

matters is embedded across our Siemens businesses, Service

more frequently as needed. The SSB provides updates andand Governance units, and countries. Sustainability has also

recommendations to the Managing Board.

been an integral component of management compensation
since fiscal 2020. Put simply, we strive to make sustainability

Topics associated with climate change appeared regularly on

everyone’s responsibility at Siemens.

the agenda of EC SUS and SSB meetings in fiscal 2023 andincluded, for example, our Net Zero Operations Program

As the top management body, the Managing Board is

implementation or product-related decarbonization efforts.

responsible for serving the company’s best interests and forachieving sustainable growth in company value. The Managing

The Sustainability Executive Committee (EC SUS) acts asBoard members are responsible for the entire management

guidance body for Siemens sustainability business – theof the company and decide on key issues of business policy

Siemens portfolio that enables positive sustainability impact

and corporate strategy.

by addressing and financing (i) decarbonization and energy
efficiency, (ii) resource efficiency and circularity as well as

The Supervisory Board oversees and advises the Managing(iii) people centricity and social impact – with a focus on

Board in its management of the company’s business. The

portfolio market segments and go-to-market topics, and it

Supervisory Board meets regularly to discuss business devel-

meets on an ad hoc basis to discuss relevant subjects.

opment, planning, strategy, and the implementation of that

Chaired by Siemens’ CEO, the EC SUS includes Siemens’ CSO,

strategy.

the CEOs of key businesses, Chief Strategy Officer, GeneralCounsel, and Global Head of SUS.

In 2023, we significantly strengthened our sustainability
organization throughout the company by introducing the

The Chief Sustainability Officer (CSO) oversees Siemens’

Sustainability Executive Committee (EC SUS) and Heads ofsustainability topics. The CSO is a member of the Siemens

Sustainability in key businesses and business units, and weManaging Board, chairs the Siemens Sustainability Board

increased the responsibility of the Global Head of Sustain-(SSB), and is a member of the Sustainability Executive Com-ability (Global Head of SUS) and the Siemens Sustainability

mittee (EC SUS). The CSO is also responsible for the Siemens

department.

Sustainability department.

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7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

In addition to our strategic sustainability activities, the CSO

The CEOs of Digital Industries, Smart Infrastructure, Siemens

ensures that we operate in compliance with our environ-

Mobility, and Siemens Financial Services (SFS) are supported

mental guidelines. Our EHS Principles serve as internalby their respective Heads of SUS to achieve their sustainabil-binding guidelines for this purpose. Siemens has also

ity mandates. The Heads of SUS also assist the Global Headfounded expert panels to ensure that environmental consid-

of SUS with their responsibilities in the Sustainability depart-

erations are integral to our decision-making. The Global

ment, as they pertain to their businesses. Heads of SUS have

Board EHS is composed of subject-matter experts who

a governance reporting line to the Global Head of SUS indevelop environmental protection measures and programs

addition to their reporting line to their respective CEOs. The

and provide advice to the Chief People and Sustainability

Heads of SUS are appointed by the respective CEOs, in align-

Officer in consultation with the Siemens Sustainability Board.

ment with the Global Head of SUS.

SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION,

CDP 2023 C1,OUR DEGREE SUSTAINABILIT Y FRAMEWORKIn addition, the CEOs of the business units in Digital Industries,
Smart Infrastructure, Siemens Mobility, and SFS each appoint

Governance at the business and management levels

Sustainability Managers who have a governance reporting

The Global Head of Sustainability (Global Head of SUS) leads

line to the Heads of SUS and to their reporting line to their

the Siemens Sustainability department. In this capacity, therespective CEOs.

Global Head of SUS reports to the CSO on all Siemens­sustainability topics excluding sustainability business andLead Country SUS Managers support their respective Leadrelated strategy topics. For the latter topics, the Global HeadCountry CEOs and their assigned countries. They also leadof SUS reports to Siemens’ CEO. The Global Head of SUS is a

Siemens’ sustainability topics within the scope of responsi-

regular member of the SSB. The Global Head of SUS regularly

bility of the Lead Country management.

informs the Supervisory Board on sustainability matters.
Our Service and Governance units are responsible for the
The Siemens Sustainability department is responsible for

ongoing development of sustainability-related topics withindeveloping our DEGREE sustainability framework in coordi-

their own mandate in line with the DEGREE sustainability

nation with the SSB, businesses, Service and Governanceframework and regulatory and organizational requirements.

units, and countries and controlling the DEGREE target
achievements. Responsibility for sustainability reporting and

Lastly, Sustainability Risk Due Diligence Subject Matterthe Net Zero Operations Program also lies with the Sustain-

Experts are appointed by and support Digital Industries,

ability department. It also governs the purchase of carbon

Smart Infrastructure, Siemens Mobility, and SFS to responsibly

offsets and the Sustainability Risk Due Diligence Process. The

conduct the Sustainability Risk Due Diligence Process.

Sustainability department also supports sustainability initiatives with scalability across Siemens. This includes developing

Siemens’ Environmental Council assesses Siemens’ environ-the processes, training, and tools needed to address over-mental risks, opportunities, and trends based on uniform

arching sustainability topics for our countries, businesses,

criteria and reports them to the Siemens Enterprise Risk

and Service and Governance units in collaboration with other

Management. The council is composed of environmental

Siemens organizations. Finally, the Sustainability department

experts from our business units and countries as well as

is responsible for developing strategic considerations for theexperts in corporate governance, environmental protection,

Siemens sustainability business in alignment with the

supply chain, sustainability, finance, technology, real estate,­Managing Board, EC SUS, and the CEOs.

and insurance.
SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION,

CEOs are ultimately responsible for all sustainability topics intheir area of responsibility. This includes responsibility forthe sustainability business, implementation of DEGREE,
sustainability reporting, the Sustainability Risk Due Diligence
Process, and other related responsibilities.

SIEMENS SUSTAINABILIT Y REPORT 2023

137

SUPPLY CHAIN PRACTICES,CDP 2023 C1,ENVIORNMENT,SUSTAINABLE

CONSERVING RESOURCES,OUR DEGREE SUSTAINABILIT Y FRAMEWORK

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

Our strategic response to climate-related
opportunities and risks

Resource efficiency & circularity

The DEGREE sustainability framework includes the sustain-

can achieve resource efficiency and profitability. For

ability-related topics important for Siemens, including

instance, we harness digitalization to reduce the require-decarbonization and resource efficiency, for which we havements of physical assets and resources. We combine the real

set ambitious targets (see paragraph “Metrics and targets”).

and the digital worlds with our digital twin technology, a

These targets, in conjunction with our overall Science-Basedvirtual representation of a physical product or process that isTargets initiative-validated (SBTi) decarbonization target,used to simulate, predict, and optimize its physical counter-

apply to Siemens’ own operations and to our upstream andpart. Digital twins enable users to do more with fewer

downstream value chain.

resources and make current and future environmental foot-Through their use of our digital technology, our customers

prints transparent. Our building solutions also contribute to
We have officially adopted sustainability as an additional

optimized space utilization and ultimately increase resource

strategic imperative for our investment decisions.

efficiency. Our mobility solutions focus on enhanced network capacity and extended lifecycles.

Siemens is a leading technology company with a portfolio

STRATEGY,OUR DEGREE SUSTAINABILIT Y FRAMEWORK

designed to drive the digital and sustainable transformationof industry, infrastructure, mobility, and healthcare. We

Climate-related opportunities and risks

firmly believe that technology is the answer to creating a

Climate-related opportunities and risks are integrated into

sustainable future. As key pillars of our strategy, digitalization

our company-wide Enterprise Risk Management (ERM)and sustainability help future-proof our business and that of­process. ERM at Siemens is based on a net risk approach inour customers.

which the risks and opportunities are addressed that remain
after implementing existing, effective measures and controls.

To further increase our positive impact, we believe thatworking in ecosystems is the best way to jointly create seam-

As a global technology company and innovation leader inless solutions for our customers and their specific challenges.

the fields of electrification, automation, and digitalization,
Siemens supports sustainable industrialization. These topics

Siemens’ business is focused on enabling customers toare becoming increasingly important in the transition to aachieve a positive sustainability and climate-related impact

low-carbon economy – a development that confirms ouralong the following value propositions:company strategy. Although there are uncertainties about
the impact of climate-related changes, we consider the

Decarbonization & energy efficiency

transition to a low-carbon economy as an opportunity. A

We support our customers with their efforts to decarbonize

favorable political and regulatory environment including thetheir infrastructure and operations, drive energy efficiency,transition towards a low-carbon economy could restore aand future-proof entire industries. We do this by offering

more positive industrial investment sentiment that supports

products, systems, solutions, and services that are based on

the growth of our markets. In addition, government initia-

our strategic focus on digitalization, electrification, andtives and subsidies (including tax reforms, green and digital

automation. For example, our energy-efficient products andrecovery plans, R&D among others) lead to more government

solutions support the transition from fossil fuels to renew-

spending (e.g. infrastructure, healthcare, mobility or digita-

able energy sources, and our electrification solutions enable

lization investments) and may ultimately result in an oppor-

renewable grid integration and the electrification of heattunity for us to participate in ways that increase our revenue

and hydrogen. Across industries, we offer energy optimiza-and profit. Investments to strengthen countries’ resilience,tion and carbon footprint management throughout ourenergy and food security, as well as to diversify value chainsproducts’ lifecycles and supply chains. In buildings, we offerclose to major markets (reshoring, nearshoring) can present

energy efficiency and decarbonization solutions, such asopportunities to businesses. By enabling our customers tosmart buildings and smart energy management for a reduced

reduce their greenhouse gas (GHG) emissions using ourcarbon footprint. Our rail systems offer low-carbon mobility

portfolio and by reducing CO2e emissions in our own operations, Siemens strives to support the transition towards aand increased energy efficiency.
SIEMENS SUSTAINABILIT Y REPORT 2023

138

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

low-carbon economy. Siemens also welcomes and supports

and risks. Our decarbonization target, which is approved byrecent legislative and governmental measures to accelerate

the Science-Based Targets initiative, is aligned with the 1.5°C

the mitigation of climate change, especially in Europe suchtarget and therefore the Paris Agreement.

as through the Green Deal or sustainable finance initiatives.
SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENTREPORT, CHAPTER 8.4 OPPORTUNITIES,CDP 2023 C2.4

As described in our

STRATEGY chapter,there are several

megatrends that are driving us to rethink established waysof doing things. These megatrends and their impacts are

To leverage these climate-related opportunities, we again

reshaping the needs of our customers and markets. To create

included sustainability and decarbonization in this year’sa holistic picture of potential futures, we execute sustainabil-

strategy review, in which we formulated concrete action

ity scenario analyses that enable us to map impacts andplans for our business units in order to support our customers

risks, identify opportunities, and find new ways to createin achieving their sustainability and decarbonization goals invalue through pathways by 2030 and 2040. Strategic

an even more targeted fashion.

insights are derived from scientific frameworks like theIntergovernmental Panel on Climate Change’s (IPCC) Repre-

Potential transition risks (e.g., regulation, market, and tech-sentative Concentration Pathways (RCPs) and Shared Socio-

nology) and physical climate-related risks are assessed in our

economic Pathways (SSPs) as well as market trends andrisk process. In this process, we have generally identified theexpert knowledge. The sustainability scenarios illustraterisk of an increasing sustainability focus. Governments

different possible development pathways for the global

around the world continue to increase their focus on sustain-

economy and Siemens’ operating environment, across theability topics, resulting in the risk of increased costs tofocus topics climate, circularity, biodiversity, and society that­comply with new laws and related reporting requirements.

take into account both an organized 1.5°C and a disorganized

In addition, increasing stakeholder and investor focus on

3°C pathway. These scenarios guide the development of oursustainability topics brings reputational risk should our sus-

sustainability strategy.

tainability commitments, targets and activities be perceived
as a deceptive use of green marketing or otherwise not

By providing innovative technologies, we see ourselves as acredible. Climate change litigation has become a worldwide

leading decarbonization partner to our customers and society

phenomenon with a corresponding risk to Siemens as a large

in general. To fulfill this role, we need to have a precise

corporation. We address these risks in a variety of ways

understanding of the technological changes that must be

including through our sustainability framework DEGREE, in

made in the next few decades and beyond. We rely primarily

which we have set ambitious sustainability targets. DEGREE

on scenarios from S&P Global (formerly IHS Markit), IEA, andincludes measures to reduce our carbon footprint along with

BloombergNEF to plan our business strategy and identify

other initiatives addressing ESG topics more generally.

company-wide risks and opportunities. These scenarios help

We have implemented an ESG due diligence process thatus, for example, to identify trends in the energy and mobility

supports Siemens businesses with due diligence in the­markets. For business planning purposes, we apply different

customer-­oriented environment with a view to possible

scenarios like the S&P Global Green Rules (our baseline

environmental and social risks as well as related human rights­scenario), Inflections, and two net zero scenarios (ACCS, MTM);

and reputational risks. Finally, we believe our overall portfolio

and IEA STEPS, APS, NZE, and BloombergNEF New Energy

is very well positioned to meet the current and future

Outlook (Economic Transition Scenario, net zero scenario).

­sustainability needs of our customers and the societies in

These scenarios help us predict market developments, assess

which we operate.

the implications of various scenarios, and make business

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENTREPORT, CHAPTER 8.3 RISKS,

CDP 2023 C2.3

decisions on this basis. With a view to our own business,
analyzing climate-related scenarios allows us to predict thepotential consequences in terms of regulatory requirements,

Analysis of climate-related scenarios

R&D, and customer trends and requirements. Our business

Different climate-related scenarios are used at Siemens forunits also conduct business-specific scenario analyses.

different purposes: for instance, for our business strategy
and decarbonization strategy and to identify opportunities
SIEMENS SUSTAINABILIT Y REPORT 2023

139

CDP 2023 C3.2

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

We also apply different climate scenarios to assess physical

Climate change is not treated as a separate category in the

climate-related risks and opportunities (see paragraph

ERM approach; it is considered within the four topic areas of­“Management of climate risks in our own operations”).

strategic, operational, financial, and compliance-related

Our risk management approach to climaterelated opportunities and risks

risks. Risk processes have been implemented upstream
throughout the company to assess potential climate-related
net risks for ERM reporting.

Climate-related risks and opportunities are embedded in the
Siemens-wide ERM approach. All identified climate risks are

Material opportunities and risks are disclosed on an aggre-

assessed and measures for risk prevention, transfer, or miti-

gated basis within the abovementioned four topic areas ingation are devised for all relevant risks.

the Siemens annual report.
SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENT

Risk management at Siemens builds on a comprehensive,

REPORT, CHAPTER 8,

CDP 2023 C2.1 AND C2.2

interactive and management-oriented Enterprise Risk Management (ERM) approach that is integrated into the organi-Management of climate risks in our own operations

zation and that addresses both risks and opportunities. Our

Climate change mitigation

ERM process aims for early identification and evaluation of,

We have set ambitious decarbonization targets that apply toand response regarding, risks and opportunities that could

Siemens’ own operations and to our upstream and down-materially affect the achievement of our strategic, opera-

stream value chain (see paragraph “Metrics and targets”).

tional, financial, and compliance objectives. The time horizon
is typically three years, and we take a net risk approach,The reduction of GHG emissions in our own operations isaddressing risks and opportunities remaining after the

integrated into Long-term Incentive (LTI) compensation as­execution of existing and effective measures and controls. A

part of an internal Siemens ESG/Sustainability Index that isdetailed description of our enterprise risk management basic

applicable to members of the Managing Board and seniorprinciples and process can be found in our combined

management (Siemens without SHS). Anchoring the reduc-­management report, chapter 8.2 Risk management.

tion of GHG emissions in this system and the responsibility

SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED MANAGEMENTREPORT, CHAPTER 8,

of each of our businesses for reducing its prorated emissions
are key elements of our management approach and require

CDP 2023 C2

regular monitoring.
Climate risks in the risk management system

SUSTAINABILITY GOVERNANCE AND ORGANIZATIONThe consideration of sustainability and climate-related risks
and opportunities is an integral part of our regular top-down

Climate change adaptation

process that communicates material issues and trends at risk

We continuously evaluate the vulnerability of all Siemens

workshops to the relevant company units so they can identify

locations regarding acute physical risks based on assess-risks and opportunities. As a result, issue-related recommen-

ments provided by external suppliers and data collected

dations are available to all businesses at their quarterlyinternally. Through recurrent analyses conducted by Global

reviews. In fiscal 2023, several climate-related topics were

Risk Consultants on behalf of TÜV Süd, it is evident that theon the agenda of the top-down process, which then provided

Siemens locations significantly surpass industry standards in

input to the annual ERM process on topics that included

terms of risk protection as per the respective insurer ratingsphysical climate risks, increasing regulation, and the trans-(industry average: approximately 70, Siemens: approxi-

parency of environmental product data.

mately 80). Consequently, Siemens locations are consistently
characterized by notably low risk levels. We continuously

In conjunction with the bottom-up approach, these measuresconduct local risk assessments and collaborate closely withenable a comprehensive overview of our business activities

various stakeholders to ensure an adequate protection level.

and the related risks and opportunities.

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140

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

Furthermore, during this fiscal year, we conducted compre-

We establish water targets at multiple sites to account forhensive global training sessions, featuring the participation

the specific local environment and to drive effective mitiga-of qualified external specialists, aimed at strengthening ourtion measures. At the corporate level, we have implemented

business continuity management and standardizing oura defined water strategy, and have conducted risk assess-business impact analysis, particularly in the context of natural

ments to shape local water targets.

hazards. These initiatives also consider anticipated changes
in risk exposures due to climate change.

The aim of our water strategy is to minimize the adverse
local effects of our water consumption and use. In fiscal

Our decision-making process for selecting new locations and2022, we expanded the analysis of our water-related risks todevising sustainable, long-term protective measures is based

include our supply chain. Based on this analysis, we derived

on an exhaustive risk analysis, with a particular emphasis on

further measures for sustainable water use.

natural hazards. This includes an in-depth examination andmodeling of current risk factors and future climate scenarios,

Our water risk analysis begins with an assessment of ourfacilitating the formulation of proactive measures. In addi-

environmentally relevant sites using the Aqueduct Watertion to the assessment of physical risks, we engage in

Risk Atlas from the World Resources Institute (WRI). With thetransparent dialogues with partners to comprehensively

aid of an internal analytical tool, Siemens assesses local-levelevaluate transitional risks, such as regulatory changes,

risks resulting from our sites’ activities, and then assesses

thereby encompassing associated risks and opportunities.

them in relation to regional water risks. Sites with a high-risk
assessment need to define targets to reduce the level of risk.

We employ a range of systems and meticulously compare theIn fiscal 2023, 96% of our sites implemented this waterparameters acquired from Swiss RE (RDS), Zurich Resiliencestrategy.

Solutions (ZRS), Verizon Maplecroft, among others.

CONSERVING RESOURCES,CDP 2023 C2,

CDP 2023 WATER SECURIT Y

In fiscal 2023, we conducted the Do No Significant Harm

Management of climate risks along our value chain(DNSH) assessment with regards to future physical climate

Climate change mitigation

risks in the context of our reporting under the EU Taxonomy

In addition to our Science-Based Target, we defined a target

regulation for all activities related to the environmental

in the DEGREE sustainability framework for our upstream

objective “Climate Change Mitigation”. The assessment of

Scope 3 emissions: Siemens without Siemens Healthineers

physical climate-related risks of all eligible and substantially(SHS) has set a target to reduce CO2e emissions generated incontributing activities was conducted by technical experts

our supply chain by 20% by 2030 compared to 2020. We also

on site, supplier, and project type levels. We partnered with

aim to achieve Net Zero emissions in our supply chain by

insurers and other external risk data providers to assess

2050. Details on our upstream Scope 3 emissions in fiscal

future hazards associated with climate change, e.g. cyclone,

2023 can be found in the chapter

hurricane, typhoon, heavy precipitation, or wildfire, using

PRACTICES.

SUSTAINABLE SUPPLY CHAIN

the IPCC scenario RCP 4.5. Additionally, we defined andstarted to implement measures at locations where signifi-

In our Carbon Reduction@Suppliers program, we collaborate

cant risks have been identified.

with an external partner to analyze the economic data andmodel the carbon footprint of each of our suppliers. To

Climate change is also having an impact on water supply.

facilitate this process, we utilize a web-based tool called

Water is one of humanity’s most important resources. For

supplier+s that highlights the main sources of suppliers’

this reason, Siemens has been analyzing water scarcity,

CO2e emissions and provides guidance on how to reducewater pollution, local fire risks, climate change, and flooding

them. Once suppliers have completed the learning phase,and precipitation patterns at our sites for several years. We

they provide us with their primary data through the tool.

consider these analyses in our business decisions: for example,
when we select the location for a new site or implement
precautionary measures.

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141

CONSERVING RESOURCES,SUSTAINABLE SUPPLY CHAIN PRACTICES

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

To make our portfolio’s contribution to decarbonization

Our validated 1.5°C Science-Based Target, along with ourmore transparent, we report the amount of CO2e emissions

DEGREE decarbonization targets and our membership in thethat our products and solutions avoid compared to reference

RE100, EV100, and EP100 initiatives, is strengthening oursolutions. Customer avoided emissions represent the differ-climate protection strategy.

ence between the CO2e emissions of a Siemens offering andthe CO2e emissions of a baseline or reference scenario. In

CLIMATE ACTION,

CDP 2023 C3, C4, C6, C7, C9 AND C12

fiscal 2023, we helped our customers avoid 190 million

Science-Based Target

metric tons of CO2e emissions. The Siemens technologies

By joining the Science-Based Targets initiative (SBTi),that make the largest contribution to the avoidance of CO2e

Siemens has pledged to reduce emissions from its own

emissions at our customers are frequency converters,

operations (Scope 1 and 2) by 50% and its value chain­railbound passenger and freight transportation, and building(Scope 3) by 15% by 2030 compared to 2019. Our commit-

systems. For a detailed description of our methodology

ment to the SBTi is aimed at aligning our business activities

for calculating customer avoided emissions, please seewith the 1.5°C decarbonization pathway under the terms of

REPORTING PRINCIPLES FOR CUSTOMER AVOIDED EMISSIONS,

CLIMATE

recognized climate models to ensure that our greenhousegas emissions will be consistent with the Paris Climate

ACTION

Agreement’s 1.5°C target.
We also invested €6.2 billion (compared to €5.6 billion in
fiscal 2022) in research and development activities that are

DEGREE targets

geared towards developing innovative and sustainable solu-

As part of our DEGREE sustainability framework (without

tions for Siemens’ customers and businesses, while simul­

Siemens Healthineers), we set a goal for all Siemens production

taneously strengthening our competitive positioning. This isfacilities and buildings worldwide and our vehicle fleet toalso how we contribute to society.

achieve a Net Zero carbon footprint by 2030. In effect, thisCOMPANY PROFILE

means reducing Scope 1 and 2 CO2e emissions in Siemens’

Climate change adaptation

business operations for Siemens without Siemens Healthineers

We analyze potential risks in our supply chain, including(SHS) by 90% by 2030, compared to 2019. To achieve thisenvironmental risks. We centralize sustainability-related

target, Siemens has pledged to invest an additional €650 million

data about our suppliers on the SCM Sustainability Platform,

in its own decarbonization efforts by 2030. Any residual

which enables us to gather information from diverse internal

emissions will then be balanced with high-quality carbon

and external sources. This includes data on carbon reduction

offsets that meet established standards.

initiatives, corporate responsibility self-assessments (CRSA),
on-site audit results, and risks associated with conflict ­minerals.

To drive additional transparency on our journey to 2030, we

All employees in Siemens' purchasing departments can

set an ambitious interim reduction target for our business

access this integrated tool.

operations at Siemens without SHS of 55% by 2025 compared to 2019.

SUSTAINABLE SUPPLY CHAIN PRACTICESMetrics and targets

For scope 3 emissions, Siemens (without Siemens Healthineers)

Siemens considers climate-related risks and opportunities

has set a target to reduce CO2e emissions generated in ouralong the entire value chain. Accordingly, we define metrics

supply chain by 20% by 2030 compared to 2020. We also

for reducing greenhouse gas emissions in the supply chain,

aim to achieve Net Zero emissions in our supply chain by

in the company’s own operations, and in the goods and2050.

services we provide to our customers.

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142

7.4 Task Force on Climate-Related Financial Disclosures (TCFD)

Our ambitious decarbonization measures and targets in our3)	Efficient Own Operations: The component Efficient Own

own operations and along our value chain are helping elim-

Operations of our Eco Efficiency @ Siemens program

inate potential transitional climate risks and increasing ouraims to reduce the environmental impact of our sites

resilience and the energy independence of our production

through dematerialization and circular economy princi-

facilities.

ples. We focus on improving our energy efficiency and

CLIMATE ACTION,

CDP 2023 C4 AND C6

reducing the environmental impact of the waste we
generate. When it comes to environmentally responsible

Eco Efficiency @ Siemens program

energy use, we focus on reducing emissions from power

Our Eco Efficiency @ Siemens program addresses environ-generation in addition to minimizing energy consump-mental factors specific to our products, systems, solutions,tion itself. As part of our commitment, we aim to improveand services and our production. It also defines objectives

our overall energy efficiency by 10% by 2030 compared

for improving our environmental management: for example,

to 2021. To calculate energy efficiency, we analyze ourby encouraging a circular economy and generally demateri-energy consumption in relation to sales development.

alizing our business processes.

CONSERVING RESOURCES,The program has three components:
1)	Robust Eco Design (RED) approach: At the center of the
Responsible Product Development program component
is our Robust Eco Design approach. Our Eco Design
approach is also embedded in the field of action Resource
efficiency in our DEGREE sustainability framework. The
program intends to introduce methods and rules for dematerialization along the entire value chain. Our aim has
been to intensify the use of lifecycle assessments (LCAs)
and environmental product declarations (EPDs), which
will allow us to identify environmentally compatible
design alternatives that take circularity into account andcan be integrated into product specifications. Our ambition is to apply the RED approach to all relevant products,
systems, solutions, and services by 2030. This is associated with our goal to increase the number of LCAs and
EPDs available.
2)	Clean Supply Chain: Building on the RED phase dematerialization, the Clean Supply Chain category in the Eco
Efficiency @ Siemens program maps our path to decoupling natural resource use from our economic growth.
That is why we will increasingly source secondary materials and take action to replace regulated substances
according to IEC 62474. We want to proportionately
increase our procurement of secondary metal and resins
by 2030. To achieve this, we are concentrating on suppliersof raw materials and semifinished products that can bedirectly influenced by our purchasing specifications.

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143

PRODUCT STEWARDSHIP

7.5 GRI Standards – key topics and boundaries

7.5

GRI Standards – key topics and boundaries
Sustainability topics

SDGs

Climate action1

DEGREED ECARBONIZATION

Innovation and business model

D ECARBONIZATIONR ESOURCE EFFICIENCYGRI Standard
GRI Standard 305
EmissionsGRI Standard 201
Economic Performance

G OVERNANCE

Cybersecurity and data­management

E THICS

Social and ecological ­standards
in the supply chain

G OVERNANCE

Corporate governance andsustainability leadership

G OVERNANCE

Partner management andcollaboration

G OVERNANCED ECARBONIZATIONESG risk management

G OVERNANCE
E THICS

Compliance management

G OVERNANCE
E THICS1

Top 2 material sustainability topics.

GRI Standard 414
Supplier Social Assessment
GRI Standard 308
Supplier Environmental
Assessment
GRI Standard 413
Local communities
GRI Standard 203
Indirect Economic Impacts
GRI Standard 201
Economic PerformanceGRI 2-27
Compliance with laws and regulations
GRI Standard 205
Anti-Corruption
GRI Standard 206
Anti-Competitive Behavior
GRI Standard 408
Child LaborGRI Standard 409
Forced or Compulsory Labor

Result of the assessment of organizational impacts (inside-out, i.e., on the environmentand society), stakeholder relevance and business criticality (outside-in).
The detailed GRI Standard Index 2021 is available on our S­ ustainability website.

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144

7.5 GRI Standards – key topics and boundaries

Sustainability topics

SDGs

Sustainable product design andlifecycle management1

DEGREER ESOURCEEFFICIENCY

Waste and hazardous substancemanagement

R ESOURCE EFFICIENCY

Sustainable handling of
natural resources and material
efficiency

R ESOURCEEFFICIENCYDiversity, equity, and inclusion

E QUIT Y

Future of work

E QUIT Y
E MPLOYABILIT Y

Employee development

E QUIT Y
E MPLOYABILIT Y

Employee health and safety

1

GRI Standard

E MPLOYABILIT Y

Top 2 material sustainability topics.

GRI Standard 306
Waste (2020)
GRI Standard 301
Materials
GRI Standard 302
EnergyGRI Standard 303
Water and Effluents (2018)
GRI Standard 306
Waste (2020)
GRI Standard 405
Diversity and Equal Opportunity
GRI Standard 406
Non-Discrimination
GRI Standard 401
Employment
GRI Standard 403
Occupational Health and
Safety (2018)
GRI Standard 404
Training and Education
GRI Standard 405
Diversity and Equal Opportunity
GRI Standard 406
Non Discrimination
GRI Standard 404
Training and Education
GRI Standard 403
Occupational Health and
Safety (2018)

Result of the assessment of organizational impacts (inside-out, i.e., on the environmentand society), stakeholder relevance and business criticality (outside-in).
The detailed GRI Standard Index 2021 is available on our Sustainability website.

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145

7.6 WEF IBC Metric

7.6

WEF IBC Metric
Pillars

Theme

Principles Governingof Gover­ purpose
nance
Quality of
governing
bodyCore metrics

Reference

Sustainability Report 2023
Setting purpose
The company’s stated purpose, as the expression of the means by Siemens at a glance
which a business proposes solutions to economic, environmental p. 7 ff
and social issues. Corporate purpose should create value for all
stakeholders, including shareholders.
Governance body composition
Composition of the highest governance body and its committees by:competencies relating to economic, environmental and social
topics;executive or non-executive;
independence;tenure on the governance body;number of each individual’s other significant positions and­commitments, and the nature of the commitments;
gender;membership of under-represented social groups;
stakeholder representation.

Annual Financial Report 2023
Annual Financial Report
Annual Financial Statement
3. Notes: 31 Members of theManaging Board and Supervisory
Board p. 131 f
WWW.SIEMENS.COM/
GLOBAL/EN/COMPANY/ABOUT/
LEADERSHIP/MANAGEMENT.HTML
WWW.SIEMENS.COM/
GLOBAL/EN/COMPANY/ABOUT/
LEADERSHIP/SUPERVISORYBOARD/COMMIT TEES.HTML

Stakeholder
engagement

Material issues impacting stakeholders
A list of the topics that are material to key stakeholders andthe company, how the topics were identified and how the­stakeholders were engaged.

Sustainability Report 2023
Materiality assessment
p. 21 ff

Ethicalbehaviour

Anti-corruption
1. Total percentage of governance body members, employees
and business partners who have received training on theorganization’s anti-corruption policies and procedures, broken
down by region.
a) Total number and nature of incidents of corruption confirmed
during the current year, but related to previous years; andb) Total number and nature of incidents of corruption­confirmed during the current year, related to this year.
2. Discussion of initiatives and stakeholder engagement toimprove the broader operating environment and culture, inorder to combat corruption.

Sustainability Report 2023
Compliance and Ethics p. 32 ff
Our sustainability indicators
p. 106 ff

Protected ethics advice and reporting mechanisms
A description of internal and external mechanisms for:1. Seeking advice about ethical and lawful behaviour andorganizational integrity;
2. Reporting concerns about unethical or unlawful behaviour
and lack of organizational integrity.

Sustainability Report 2023
Compliance and Ethics p. 32 ff
Our sustainability indicators
p. 106 ff

Integrating risk and opportunity into business process
Company risk factor and opportunity disclosures that clearly­identify the principal material risks and opportunities facing thecompany specifically (as opposed to generic sector risks), thecompany appetite in respect of these risks, how these risks andopportunities have moved over time and the response to thosechanges. These opportunities and risks should integrate material
economic, environmental and social issues, including climatechange and data stewardship.

Annual Financial Report 2023
Combined Management Report 8.
Report on expected developments and associated material
opportunities and risks p. 23 ff

Risk andopportunity
oversight

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146

Omission7.6 WEF IBC Metric

Pillars

Theme

Core metrics

Reference

PlanetClimatechangeGreenhouse gas (GHG) emissions
For all relevant greenhouse gases (e.g. carbon dioxide, methane,
nitrous oxide, F-gases etc.), report in metric tonnes of carbon
dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2
emissions.
Estimate and report material upstream and downstream(GHG Protocol Scope 3) emissions where appropriate

Sustainability Report 2023
Climate action p. 58 ff
Conserving resources p. 65 ff
Our sustainability indicators
p. 106 ff

Sustainability Report 2023
TCFD implementation
Task Force on Climate-Related
Fully implement the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). If necessary, disclose Financial Disclosures(TCFD) p. 136 ff
a timeline of at most three years for full implementation.
Disclose whether you have set, or have committed to set, GHG
emissions targets that are in line with the goals of the Paris
Agreement – to limit global warming to well below 2°C above
preindustrial levels and pursue efforts to limit warming to 1.5°C –and to achieve Net-Zero emissions before 2050.
Nature loss

Land use and ecological sensitivity
Report the number and area (in hectares) of sites owned, leased
or managed in or adjacent to protected areas and/or key biodiversity
areas (KBA)

Freshwater
availability

Sustainability Report 2023
Water consumption and withdrawal in water stressed
Conserving resources p. 74 ff
areas
Our sustainability indicators
Report for operations where material: megalitres of water withdrawn, megalitres of water consumed and the percentage of each p. 106 ff
in regions with high or extremely high baseline water stress,
according to WRI Aqueduct water risk atlas tool.
Estimate and report the same information for the full value chain(upstream and downstream) where appropriate.

SIEMENS SUSTAINABILIT Y REPORT 2023

147

Sustainability Report 2023
Conserving resources p. 65 ff
Our sustainability indicators
p. 110 ff

Omission7.6 WEF IBC Metric

Pillars

Theme

Core metrics

Reference

PeopleDignity andequality

Diversity and inclusion (%)
Percentage of employees per employee category, by age group,
gender and other indicators of diversity (e.g. ethnicity).

Sustainability Report 2023
Diversity, Equity & Inclusionp. 89 ff
Our sustainability indicators
p. 106 ff

Omission

Sustainability Report 2023
Pay equality (%)
Working at Siemens
Ratio of the basic salary and remuneration for each employee­category by significant locations of operation for priority areas of p. 82 ff
equality: women to men, minor to major ethnic groups, and other Our sustainability indicators
p. 106 ff
relevant equality areas.

Siemens pursues
the principle ofperformance-­
related compensation – regardlessof gender.
Remuneration
data is regarded
confidential andis therefore notreported.

Wage level (%)
Ratios of standard entry level wage by gender compared to local
minimum wage.
Ratio of the annual total compensation of the CEO to the medianof the annual total compensation of all its employees, except theCEO.

Siemens pursues
the principle ofperformance-­
related compensation – regardlessof gender.
Remuneration
data is regarded
confidential andis therefore notreported.

Risk for incidents of child, forced or compulsory labour
An explanation of the operations and suppliers considered tohave significant risk for incidents of child labour, forced or­compulsory labour. Such risks could emerge in relation to:a) type of operation (such as manufacturing plant) and type of
supplier; andb) countries or geographic areas with operations and suppliersconsidered at risk.

Sustainability Report 2023
Human Rights p. 40 ff
Sustainable supply chain
practice p. 44 ff
Business Conduct Guidelines:

HT TPS://ASSETS.NEW.
SIEMENS.COM/SIEMENS/ASSETS/
API/UUID:5C242542-E991-4B97AF63-090AD509BE74/SAGBCG-EN.PDF

Health andwell-being

Health and safety (%)
The number and rate of fatalities as a result of work-related
injury;high-consequence work-related injuries (excluding fatalities);
recordable work-related injuries; main types of work-related
injury;and the number of hours worked.
An explanation of how the organization facilitates workers’ accessto non-occupational medical and healthcare services, and thescope of access provided for employees and workers.

Skills for the
futureSustainability Report 2023
Training provided (#, $)Professional education and lifeAverage hours of training per person that the organization’s
employees have undertaken during the reporting period, by gender long learning p. 93 ff
Our sustainability indicatorsand employee category (total number of hours of training
p. 106 ff.
­provided to employees divided by the number of employees).
Average training and development expenditure per full time
employee (total cost of training provided to employees divided by
the number of employees).

SIEMENS SUSTAINABILIT Y REPORT 2023

148

Sustainability Report 2023
Occupational health and safety
managementp. 97 ff
Our sustainability indicators
p. 106 ff

7.6 WEF IBC Metric

Pillars

Theme

Core metrics

Prosperity Employment Absolute number and rate of employment
and wealthgeneration

1. Total number and rate of new employee hires during thereporting period, by age group, gender, other indicators of­diversity and region.
2. Total number and rate of employee turnover during the­reporting period, by age group, gender, other indicators ofdiversity and region.

Sustainability Report 2023
Professional education and­lifelong learning p. 93 ff
Our sustainability indicators
p. 106 ff

Economic contribution
1. Direct economic value generated and distributed (EVG&D),
on an accruals basis, covering the basic components for the­organization’s global operations, ideally split out by:– Revenues– Operating costs– Employee wages and benefits– Payments to providers of capital– Payments to government– Community investment
2. Financial assistance received from the government: total monetary value of financial assistance received by the organizationfrom any government during the reporting period.

Siemens Annual Financial Report
2023
Consolidated Financial
Statements p. 46 ff

Financial investment contribution
1. Total capital expenditures (CapEx) minus depreciation, supported
by narrative to describe the company’s investment strategy.
2. S hare buybacks plus dividend payments, supported by narrative
to describe the company’s strategy for returns of capital toshareholders.

Annual Financial Report 2023
Consolidated Financial Statements 6. Note 19 Equity p. 70
Annual Financial Statements 3.
Note 15 Shareholder’s Equity
p. 124 f

Total R&D expenses
Innovation
Total costs related to research and development
of betterproducts andservices

Community
and social
vitality

Reference

Sustainability Report2023
Company profile p. 10 ff

Annual Financial Report 2023
Total tax paid
Consolidated Financial StateThe total global tax borne by the company, including corporate
income taxes, property taxes, non-creditable VAT and other sales ments 6. Note 2 Material
taxes, employer-paid payroll taxes, and other taxes that constitute accounting policies and criticalaccounting estimates p. 51 ff
costs to the company, by category of taxes.
Note 7 Income Taxes p. 58 f
Annual Financial Statements 3.
Note 13 Deferred tax assets
p. 123SIEMENS SUSTAINABILIT Y REPORT 2023

149

Omission7.7 SASB – Electrical Electronic Equipment Index

7.7

SASB – Electrical Electronic Equipment Index

Topic

Codified
metric code Disclosure

RT-EE-130a.1
Energy­Management(1) Total energy consumed

RT-EE-130a.1(2) Percentage grid electricity

RT-EE-130a.1(3) Percentage renewable

Reference
Sustainability Report 2023:
Environment – Conserving resources,
p. 65 ff (Energy used reduced),
Our sustainability indicators, p. 106 ff

RT-EE-150a.1
Hazardous
Waste­Management

Amount of hazardous waste
generated, percentage recycled

Sustainability Report 2023:
Environment – Conserving resources,
p. 65 ff, (Efficient Waste management),
Our sustainability indictors, p. 106 ff

RT-EE-150a.2

Number and aggregate quantityof reportable spills, quantity
recovered

Sustainability Report 2023:
Environment – Conserving resources,
p. 65 ff, (Incident relevant to the­environment),
Our sustainability indictors, p. 106 ff

RT-EE-250a.1

Number of recalls issued, total
units recalled

not applicable

RT-EE-250a.2

Total amount of monetary losses Annual Financial Report 2023
Consolidated Financial Statements 6.
as a result of legal proceedings
Notes 22 Legal proceedings, p. 71 f
associated with product safety

Product
SafetySIEMENS SUSTAINABILIT Y REPORT 2023

150

Omission

Siemens has established a comprehensive, company-wide product safety­system to ensure that our products
comply with applicable legal safety
requirements and meet the latest technical safety standards so that they do
not pose a threat to the life or healthof users or other third parties. Under
this system, all company units are
required to ensure that their products
comply with the state of the art insafety matters. The units are also
obliged to conduct systematic productmonitoring and take the necessary­corrective actions to remedy potential
product safety deficiencies.

7.7 SASB – Electrical Electronic Equipment Index

Topic

Codified
metric code Disclosure

Reference

RT-EE-410a.1
Product­Lifecycle
Management

Percentage of products by­revenue that contain IEC 62474
declarable substances

Sustainability Report 2023:
Environment – Product stewardshipp. 71 ff
Our sustainability indicators, p. 106 ff

RT-EE-410a.2

Percentage of eligible products
by revenue that meet ENERGYSTAR criteria

not applicable

RT-EE-410a.3

Revenue from renewable energy-­ Sustainability Report 2023:
Environment – Climate action,
related and energy efficiency-­
p. 58 ff,
related products
EU Taxonomy, p. 76 ff
Our sustainability indicators, p. 106 ff

Materials
Sourcing

RT-EE-440a.1

Description of the managementof risks associated with the useof critical materials

Sustainability Report 2023:
Environment – Product stewardship,p. 71 ff (Risk-conscious handling of
declarable substances),
Sustainable supply chain practices,p. 44 ff (Responsibility for the worldwide supplier network)

Business
Ethics

RT-EE-510a.1

Description of policies and­practices for prevention of:(1) corruption and bribery and(2) anti-competitive behavior

Sustainability Report 2023:
Compliance and ethics, p. 32 ff

RT-EE-510a.2

Total amount of monetary losses
as a result of legal proceedings
associated with incidents relating
to bribery or corruption

Annual Financial Report 2023:
Consolidated Financial Statements 6.
Notes 22 Legal proceedings, p. 71 f
Sustainability Report 2023:
Compliance and ethics, p. 32 ff

RT-EE-510a.3

Total amount of monetary losses
as a result of legal proceedings
associated with anti-competitive
behavior regulations

Annual Financial Report 2023:
Consolidated Financial Statements 6.
Notes 22 Legal proceedings, p. 71 f
Sustainability Report 2023:
Compliance and ethics, p. 32 ff

RT-EE-000.A

Number of units produced byproduct category

not applicable

RT-EE-000.B

Number of employees

Sustainability Report 2023
Working at Siemens p. 82 ff
Our sustainability indicators, p. 106 ff

Activity
MetricSIEMENS SUSTAINABILIT Y REPORT 2023

151

Omission7.8 United Nations CEO Water Mandate

7.8

United Nations CEO Water Mandate
Progress report

Our customers

Siemens became a signatory to the United Nations CEO

We support our customers with water management solu-

Water Mandate in 2008. We are continuing to support thetions, including the following.

Mandate in two ways: by managing water efficiently at ourown facilities and by providing solutions that help ourLeak detection­customers handle water and wastewater more efficiently.

Non-revenue water not only impacts the economic performance of water supply companies; it also increases pressure

Our own activities

on natural water resources, because more water is produced

We are continuing to implement the approach to waterand processed than is actually needed. Thanks to our techno-

resource management that we developed in 2012. This

logical innovations, Siemens can detect leaks with the help

includes monitoring factors like water scarcity, water pollution,of AI. Leaks in the pipeline network were responsible forflooding, environmental fire risks, and consequences of climate

about 10% of the water supplied by the Swedish waterchange as well as performing site-specific risk analyses.

company VA SYD that never reached consumers. With SIWA

Individual goals and measures are defined for locations with

LeakPlus, VA SYD now relies on artificial intelligence (AI) to

high water-related risks. This approach minimizes thedetect and repair leaks in its water distribution networks.

site-specific adverse impacts of our water consumption bytaking into account local risks like water scarcity, water

Virtual process control system­pollution, and flooding in environmentally sensitive areas.

Thanks to implementing cutting-edge process control tech-

You can find out more about conserving resources and water

nology at the waste management company EGLV (Emscher

consumption at Siemens’ locations in the

Genossenschaft & Lippe Verband), the customer was able

ENVIRONMENT­section of this report.

not only to save operational costs but also to contribute to
the renaturation of the Emscher and Lippe River basins

We use resources carefully. For example, Siemens India has
implemented sustainable water management by applying

through sustainable wastewater management.

various measures, including utilizing water-efficient appli-

Partnerships to reduce water loss

ances, installing rainwater harvesting system at four major

In line with our pledge to be an agile and active market

factory locations, and building water reclamation facilities

leader, we go beyond traditional distributorships and(zero liquid discharge facilities) that enable us to reduceincreasingly rely on collaborations in a variety of areas.

freshwater consumption and use treated water for landscaping

We’ve signed collaboration agreements with component

and toilet flushing.

manufacturers like Hach Analytics and with global players
like Acciona (desalination) and young entrepreneurs likeOur supply chain partners

BuntPlanet (digital portfolio). This is how our company and

The environmental protection requirements for our supply

our partners will be able to meet our customers’ require-chain partners are set out in the Siemens Group Code ofments and offer them a comprehensive, innovative productConduct for Siemens Suppliers and Third Party Intermediaries.

and system portfolio, a local presence worldwide, and ourMore information on these requirements and on supply

usual high quality while also remaining cost-effective.

chain management is available in the
CHAIN PRACTICES section of this report.

SIEMENS SUSTAINABILIT Y REPORT 2023

152

SUSTAINABLE SUPPLY

7.8 United Nations CEO Water Mandate

Social commitment
Through our memberships in international organizations, weparticipate in numerous initiatives and projects like thewater project on the Action 2020 platform of the World
Business Council for Sustainable Development. We initiate,
implement, and support projects that foster efficient water
use in various regions of the world. The Siemens Stiftung,Siemens’ nonprofit foundation in Germany, employs anentrepreneurial approach to supplying communities withclean drinking water. One example is described below.
The WeTu social enterprise in Kenya
The WeTu social enterprise founded by Siemens Stiftungworks on innovative solutions for supplying energy anddrinking water to communities in Western Kenya near Lake
Victoria. Its WeWater unit operates 13 water dispensing
stations at various locations that supply the surrounding
rural communities with safe, filtered drinking water at­economical prices.
In a multistage process, surface water is processed throughvarious prefilters, an ultra-filtration membrane, and finally
UV disinfection. Drinking water is dispensed around theclock by way of a cashless ATM system. This approach supplies
more than 3 million liters of drinking water to 16,000 people.
A variety of social marketing measures also alert customers
about how contamination can occur in home use and how
contaminated drinking water affects health.
You can find out more about Siemens Stiftung projects at:
WWW.SIEMENS-STIFTUNG.ORG/PROJECTS/WETU/SIEMENS SUSTAINABILIT Y REPORT 2023

153

7.9 Independent auditor’s report on a limited assurance engagement

7.9

Independent auditor’s report on a limited
assurance engagement
TO SIEMENS AKTIENGESELLSCHAFT, BERLIN AND
MUNICHINDEPENDENCE AND QUALITY ASSURANCE OF
THE AUDIT FIRM

We have performed a limited assurance engagement on the

We have complied with the German professional requirements

Sustainability Report of Siemens Aktiengesellschaft, Berlin

on independence as well as other professional conduct

and Munich (hereafter the “Company”), for the reporting

requirements.

period from October 1, 2022 to September 30, 2023 (hereOur audit firm applies the national legal requirements andafter the “report”).

professional pronouncements – in particular the BS WP/vBP
Our engagement exclusively relates to the English PDF-version[“Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer”:

of the report. Our engagement did not include the foreword

Professional Charter for German Public Accountants/German

and the information in the Annex to the report as well as any

Sworn Auditors] in the exercise of their Profession and theprospective disclosures and links to other web pages. The

IDW Standard on Quality Management issued by the Institutereport is published as a PDF-version atof Public Auditors in Germany (IDW): Requirements for Quality

WWW.SIEMENS.COM/

INVESTOR/EN .

Management in the Audit Firm (IDW QS 1) and accordingly

RESPONSIBILITIES OF MANAGEMENT

maintains a comprehensive quality management systemthat includes documented policies and procedures with

The Company’s management is responsible for the prepara-

regard to compliance with professional ethical requirements,tion of the report in accordance with the Sustainability

professional standards as well as relevant statutory andReporting Standards of the Global Reporting Initiative (here-

other legal requirements.

after the “GRI criteria”) and for the selection of the information to be assessed.

RESPONSIBILITIES OF THE AUDITOR
Our responsibility is to express a conclusion with limited

These responsibilities of the Company’s management include

assurance on the report based on our assurance engagement.

the selection and application of appropriate sustainability
reporting methods and making assumptions and estimates

We conducted our assurance engagement in accordance

about individual sustainability disclosures that are reasonablewith the International Standard on Assurance Engagementsin the circumstances. Furthermore, management is respon-(ISAE) 3000 (Revised): “Assurance Engagements other thansible for such internal control as management considers

Audits or Reviews of Historical Financial Information” issued

necessary to enable the preparation of a report that is freeby the International Auditing and Assurance Standards Board

from material misstatement, whether due to fraud (manipu-(IAASB). This standard requires that we plan and perform thelation of the report) or error.

assurance engagement to obtain limited assurance about
whether any matters have come to our attention that cause
us to believe that the Company’s report is not prepared, in allmaterial respects, in accordance with the GRI criteria.

SIEMENS SUSTAINABILIT Y REPORT 2023

154

7.9 Independent auditor’s report on a limited assurance engagement

In a limited assurance engagement, the procedures per-RESTRICTION OF USE

formed are less extensive than in a reasonable assurance

We draw attention to the fact that the assurance engage-engagement, and accordingly, a substantially lower level ofment was conducted for the Company’s purposes and thatassurance is obtained. The selection of the assurance proce-the assurance report is intended solely to inform the Com-

dures is subject to the professional judgment of the auditor.

pany about the result of the assurance engagement. As aresult, it may not be suitable for another purpose than the

In the course of our assurance engagement we have, among

aforementioned. Accordingly, the assurance report is notother things, performed the following assurance procedures

intended to be used by third parties for making (financial)and other activities:

decisions based on it. Our responsibility is to the Company
alone. We do not accept any responsibility to third parties.

→ Inquiries of employees and inspection of documents
concerning the sustainability strategy, sustainability

Our assurance conclusion is not modified in this respect.

principles and sustainability management including the

GENERAL ENGAGEMENT TERMS AND LIABILITY

stakeholder dialog of Siemens AG,

The “General Engagement Terms for Wirtschaftsprüfer and→ Inquiries of management and relevant employees

Wirtschaftsprüfungsgesellschaften [German Public Auditors

involved in the preparation of the report about the prepa-

and Public Audit Firms]” dated January 1, 2017 are applica-

ration process, about the internal control system related

ble to this engagement and also govern our relations withto this process, and about disclosures in the report,

third parties in the context of this engagement (WWW.DE.EY.

→ Inquiries of employees responsible for data capture and

COM/GENERAL-ENGAGEMENT-TERMS ). In addition, please refer toconsolidation, about the data capture and compilation

the liability provisions contained there in no. 9 and to themethods as well as internal controls to the extent relevant

exclusion of liability towards third parties. We accept nofor the assurance of the disclosures in the report,

responsibility, liability or other obligations towards third→ Identification of likely risks of material misstatement in
the report,

parties unless we have concluded a written agreement to thecontrary with the respective third party or liability cannot→ Analytical procedures on selected disclosures in the reporteffectively be precluded.

at Group level and at the level of the Industrial Businesses,→ Inquiries and inspection of documents relating to theWe make express reference to the fact that we will notcollection and reporting of selected data at Group level, at

update the assurance report to reflect events or circum-

the level of the Industrial Businesses and at selected sites,

stances arising after it was issued, unless required to do so→ Inquiries of employees on material qualitative statements

by law. It is the sole responsibility of anyone taking note ofin the report as well as the inspection of selected under-

the summarized result of our work contained in this reportlying documents,

to decide whether and in what way this information is useful→ Reconciliation of selected disclosures with the corresponding data in the consolidated financial statements

or suitable for their purposes and to supplement, verify or
update it by means of their own review procedures.

and group management report,→ Evaluation of the presentation of the report.

Munich, December 4, 2023

ASSURANCE CONCLUSION

Ernst & Young GmbH

Based on the assurance procedures performed and theWirtschaftsprüfungsgesellschaft­evidence obtained, nothing has come to our attention thatcauses us to believe that the Sustainability Report of Siemens

Keller

Johne

Aktiengesellschaft for the period from October 1, 2022 to

Wirtschaftsprüfer

Wirtschaftsprüferin

September 30, 2023 is not prepared, in all material respects,(German Public Auditor)(German Public Auditor)in accordance with the GRI criteria.

SIEMENS SUSTAINABILIT Y REPORT 2023

155

7.10 Notes and forward-looking statements

7.10

Notes and forward-looking statements

This document contains statements related to our futureThis document includes – in the applicable financial reporting

business and financial performance and future events orframework not clearly defined – supplemental financial

developments involving Siemens that may constitute forward-­

measures that are or may be alternative performance mea-

looking statements. These statements may be identified bysures. These supplemental financial measures should not bewords such as “expect,” “look forward to,” “anticipate,”

viewed in isolation or as alternatives to measures of Siemens’“intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project”,

net assets and financial positions or results of operations as

or words of similar meaning. We may also make forward-­

presented in accordance with the applicable financial

looking statements in other reports, in prospectuses, inreporting framework in its Consolidated Financial Statements.

presentations, in material delivered to shareholders, and in

Other companies that report or describe similarly titled alter-

press releases. In addition, our representatives may from

native performance measures may calculate them differently.

time to time make oral forward-looking statements.
Such statements are based on the current expectations andcertain assumptions of Siemens’ management; many ofthem are therefore beyond Siemens’ control. These are subject
to a number of risks, uncertainties, and factors, including,but not limited to those described in disclosures, in particularin the chapter Report on risks and opportunities, and including
reports on expected development of the Annual Report.
Should one or more of these risks or uncertainties materialize,
events of force majeure, such as pandemics, occur, or should
underlying expectations including future events occur at alater date or not at all or assumptions prove incorrect, actual
results, performance, or achievements of Siemens may(negatively or positively) vary materially from thosedescribed explicitly or implicitly in the relevant forward-looking
statement “Notes and forward-looking statements” in the
SIEMENS SUSTAINABILITY REPORT 2023. Siemens neither
intends nor assumes any obligation to update or revise theseforward-looking statements in light of developments which
differ from those anticipated.

SIEMENS SUSTAINABILIT Y REPORT 2023

156

7.11 Further information and information resources

7.11

Further information and information
resources
Additional information
The online version of the Siemens annual financial report
2023 is available at:
WWW.SIEMENS.COM/ANNUALREPORTS

Further sustainability information
Further information on our commitment to sustainability andsustainability figures are available at:
WWW.SIEMENS.COM/GLOBAL/EN/COMPANY/SUSTAINABILIT Y.HTML
 WWW.SIEMENS.COM/GLOBAL/EN/COMPANY/SUSTAINABILIT Y/SUSTAINABILIT Y-FIGURES.HTML

Further information on research, development, and innovation
at Siemens is available at:
WWW.SIEMENS.COM/GLOBAL/EN/COMPANY/INNOVATION.HTML

Further information on Siemens Stiftung is available at:
WWW.SIEMENS-STIFTUNG.ORG/EN/© 2023 by Siemens AG, Berlin and Munich

SIEMENS SUSTAINABILIT Y REPORT 2023

157

Address

Siemens AG
Werner-von-Siemens-Str. 180333 Munich
Germany

Internet

WWW.SIEMENS.COM

Phone+49 89 636-33443 (Media Relations)+49 89 636-32474 (Investor Relations)Fax+49 89 636-30085 (Media Relations)+49 89 636-1332474 (Investor Relations)Emailpress@siemens.com
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