Sustainability
report2021

Our Purpose

Technology toTransform the Everyday
Key figures 1

303,000 € 62.3 billion 15.0 %Employees

Adjusted EBITA margin

Revenue€

6.7 billion

Net income

for the Industrial Businesses

Joint values unite us under the brand Siemens with Siemens Healthineers (SHS)
Digital transformation of Industry,
Infrastructure and Mobility
HealthSiemens

Siemens
Healthineers 2

SCOPE OF SUSTAINABILITYREPORT

All indicators in the report are shown including 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 Including Varian.
2 Publicly listed subsidiary of Siemens; Siemens’ share in Siemens Healthineers: 75 %.

SIEMENS SUSTAINABILIT Y REPORT 2021

2

Content

Contents
Contents 3Foreword 

4

The COVID-19 Pandemic 

81

Siemens at a glance 

11Working at Siemens

94

12

5.2 	Diversity, Equity & Inclusion

100

5.3 	Professional education and

1.2

Company profile

14

1.3

Strategy

17

1.5

Our key areas of impact

26

Customers

28

1.7

Research and development

32

Our sustainability management 

36

2.1

Materiality assessment

37

2.2

Sustainability governance and organization 40

2.3 	Partnerships and collaborations
for sustainability43

2.4 	Sustainability ratings reflect our­performance

103safety management

106

Corporate citizenship

110

Our sustainability indicators

113

20

1.6

2

lifelong learning
5.4 	Occupational health and1.4 	Our contribution to sustainable
development of societies

Social93
5.1

1.1 	Our DEGREE framework
sets clear and measurable ambitions

5

45

3

5.5

6
7

Annex 

130

7.1

131

Reporting methodology

7.2 	Environmental Portfolio reporting
principles134
7.3 	Task Force on Climate-Related
Financial Disclosures (TCFD)

139

7.4 	GRI Standards – key topics

Governance47
3.1

Compliance

48

3.2

Human rights

56

3.3

Sustainable supply chain practices

62

3.4

Cybersecurity and data privacy

67

4

7.5

and boundaries

146

WEF IBC Metric

148

7.6 	SASB – Electrical Electronic
Equipment Index
7.7

The United Nations Global Compact

154

7.8

United Nations CEO Water Mandate

159

7.9 	Independent auditor’s limited
assurance report Environment 73

Holistic environmental protection

74

4.1

Climate action

76

4.2

Conserving resources

83

4.3

Product stewardship

88

SIEMENS SUSTAINABILIT Y REPORT 2021

3

1527.10 Notes and forward-looking statements

161
164

7.11 	Further information andinformation resources

166

Foreword

Foreword
Technology with Purpose
How we can improve quality of life while using fewer resources.

Dear Readers,
the world is changing, at an increasing pace everyday. At the same time, in some ways the world isn’tchanging fast enough to overcome the ecological andsocial challenges that confront us all.
Thanks to technological progress we are able to pro-

In collaboration with ourcustomers and partners, we’re
working to transform industry,
infrastructure, mobility, andhealthcare: the backbone of oursociety.

vide food for more people today than at any time in

Siemens has contributed to that progress – and we

history. The percentage of very low-income people

want to speed it up even more. In collaboration within the world is at its lowest level ever. And in the past

our customers and partners, we’re working to trans-

20 years alone, a billion people have escaped extreme

form industry, infrastructure, mobility, and health-poverty.

care: the backbone of our society. We’re certain that

The dilemma of our time
But there’s a price to pay for that progress, and thatprice is increasing every day. We’re emitting everwith new technologies we can generate progress andgrowth for every society, while consuming fewer resources. We call this “Technology with Purpose”.

more CO2, and we are accelerating climate change.

How “Technology with Purpose” can help

Air and water are in a concerning state in many re-Every day, our “Technology with Purpose” demon-

gions. Not to mention growing inequality in many

strates what is already possible. For instance, we’resocieties.

supplying the U.S. railway Amtrak with trains whose
new drive technologies use less energy and can run

Humanity today faces a double challenge: How canentirely free from fossil fuels. Artificial intelligence

we manage to provide a good life for more and morelets us guarantee that the trains are available almost

people and – at the same time – halt climate change

100 percent of the time. Compared with the trains

and environmental pollution? How can we safeguardthat were mostly in use before, we are thus signifi-

the foundations of life for future generations?

cantly reducing CO2 emissions – while at the sametime carrying 1.5 million more passengers.

The answer is: We need to decouple economic growthfrom the consumption of natural resources. We must

In Egypt, we’re about to build the country’s first elec-

do more with less.

trified, high-speed, long-distance train line. It will

Doing more with less is something we can already doteract urban sprawl, and create new opportunities fortoday. In the past decades, for instance, technologicaleconomic growth and employment.

provide new, affordable, sustainable mobility, coun-progress has enabled more than 30 countries to decouple economic growth and consumption fromcarbon emissions.

SIEMENS SUSTAINABILIT Y REPORT 2021

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Foreword

Another example is our digital twins. They can simu-

company in its industry group. This recognition con-late a vast range of products and processes in fields

firms that we are on the right track.

as diverse as industry, infrastructure, construction,and city planning. They help to save time, energy, andWith our new ambitious DEGREE 1 framework, we areresources. With our British customer TrakRap, for in-taking yet another step forward. It represents a wholestance, we’ve been able to develop new machines

new level in our commitment to sustainable develop-that consume 90 percent less energy and 70 percent

ment, good governance, social responsibility, andless plastic when making film packaging for bottles.

protecting the environment.

We’re building state-of-the-art plants that extract

Every day we work hard on protecting people and ourgreen hydrogen, and we’re connecting them withenvironment and on mitigating damage to the cli-industries and energy storage facilities. Our modelmate. One example of what we’re doing: We’re aim-

project at Wunsiedel in northern Bavaria, Germany,ing to put the principle of the circular economy toshows how an entire community can be supplied withwork at our company and to eliminate landfill waste

100 percent renewable energy, and how hydrogenby 2030.

can serve for long-term energy storage. This helps
ease grid bottlenecks and keep the power grid flexible.
These and many other projects show: With the righttechnology, we can do more with less. If we truly
want to become more sustainable and achieve ourclimate goals, however, we have to move even fasterand make sustainable technologies the new standard.

Sustainability is the heart of ourbusiness and the engine that drives it.
Which is why we’ve developed an
ambitious new sustainability
framework: DEGREE.
We’ve adopted sustainability as a strategic imperative

Here we at Siemens are leading by example.

What we expect from ourselves

for all our investment decisions – whether they’re
about corporate acquisitions, customer projects, orassessments of suppliers.

Six years ago, we were one of the world’s first large
industrial corporations to commit to becoming

By joining the Science Based Targets initiative (SBTi)­climate-neutral by 2030. Since then, we’ve cut our

we’ve committed to reporting on our own operating

CO2 emissions by more than half. And we’re working

emissions and those in our value chain.

­full-speed to achieve our ambitious goal even earlier,if possible. For this purpose we designed, for example,

And we’ll be backing up that commitment with addi-

digital twins that help us to develop a clear timeline

tional actions. As a member of the Climate Group – anfor making our factories and large buildings

initiative of like-minded companies – we’ve agreed­climate-neutral.

to convert entirely to renewable energy by 2030, touse or run all our buildings on a CO2-neutral basis, andWhat drives us is our desire to apply technology thatto switch entirely to electric vehicles.

will make our own activities – and those of our partners and customers – more sustainable. The Dow
Jones Sustainability Index (DJSI) published in November 2021 ranked Siemens as the most sustainable

SIEMENS SUSTAINABILIT Y REPORT 2021

5

1 DEGREE is an acronym for Decarbonization, Ethics, Governance,
Resource E­ fficiency, Equity, and Employability.

Foreword

We also want to cut emissions throughout our value

All of this shows: We’re speeding up our company’s

chain at least by 20 percent until 2030 (basis: fiscal

sustainable transformation. And this commitment is2020). To achieve this goal we support our suppliers,

recognized around the world.

for example, with Carbon Web Assessments to analyze their carbon footprint and reduce it efficiently.

Shared principles, rules, and solutions fortransformation

Empowered employees are crucial to our success.

We’ve already gained a lot of ground, and we’re proud

Diverse, inclusive teams can do wonders if each ofthat not even a pandemic has been able to stop us.

the team members can contribute their own individ-

But we still have a long way to go. That goes for ourual abilities and feels respected and motivated.

company as well as our entire society.

We help our employees to embrace change, remain

At Siemens, we’ll continue working hard for progressresilient and relevant, and thus sustainably employ-at every level. We’re encouraging change – and trans-

able over a long working life with their skills in aforming the everyday: We want to make people’s lives

constantly changing and challenging environment.

better all over the globe – today and in the future.

That's why we at Siemens continually invest in training and development, helping our employees develop

That’s why we’re investing extensively in research anda positive, forward-looking mindset that helps themdevelopment. In global alliances like the UN Global

take on challenges, grow from them, and ultimately

Compact, the World Economic Forum, and econsense,

rise above them. We refer to this as a Growth Mindset.

and in collaboration with many universities, we’reLast year, we invested more than 300 million euros

developing principles, rules, and solutions to speed

in training and development. We use our own digitalup sustainable transformation worldwide.

knowledge to move learning into the digital world.
To date, we have around 100,000 pieces of digital

Most of all, we’ll keep working for and with our cus-learning content available.

tomers to do more with less every day. We will only
be able to build a sustainable world if we can makeWe support our employees to take onchallenges, grow from them and rise
above them. We refer to this as a
Growth Mindset.

today’s cutting-edge technologies the standard of
tomorrow.

Dr. Roland BuschFor us, responsibility includes conscientiousness,
integrity, and adherence to our values. We support
that with a strong across-the-board compliance systemand clear guidelines for how we do business.
In society as well, we’re working for greater integrity
and a fair market environment. With the S­ iemens
Integrity Initiative, we’re supporting organizations
around the world to combat corruption.

SIEMENS SUSTAINABILIT Y REPORT 2021

6

Judith WieseForeword

SIEMENS SUSTAINABILIT Y REPORT 2021

7

The COVID-19 Pandemic

THE COVID-19 PANDEMIC
Healthy and safe amid the pandemic

Again in 2021, COVID-19 was our constant companion.

according to the prevailing circumstances andWe are still in the pandemic, crisis and emergency

communicated transparently via local channels. The

management was a particular challenge this year as

success of this approach is attested by the trend ofwell.

case numbers in Europe, insofar as the number of

ANNUALFINANCIALREPORT

2021

COMBINED

MANAGEMENT REPORT 8.3.1 STRATEGIC RISKS

Balance between opportunities and risks
Since the beginning of 2021, more and more vaccines

infections of our people is relatively low comparedto the overall case numbers in Europe (considering
only those European countries that host ­Siemens
locations).

have been approved and the global vaccination
campaign against the coronavirus has gathered pace.

Siemens supports national vaccination campaigns as

In addition, some sectors such as the automotive

the most important tool against COVID-19. In someindustry and mechanical engineering have recovered

countries such as Germany, we have been able tomore quickly than expected. The general economic

offer all our people the chance to get vaccinated bysituation has improved despite considerable regional

the company’s Medical Services.

differences. The demand for our services has grown
and we have been able to satisfy this demand and

The longer the pandemic lasts, the more important it

deliver consistently good operating results. Thus,

becomes to protect the health and safety of our­Siemens has continued to follow an accelerated andpeople and keep up their motivation. Although thevalue-enhancing course of growth across all businessglobal employee survey showed a high degree ofsatisfaction with Siemens’ handling of the crisis andsegments and regions.

the support we provide to our people, the restrictions
Nothing is more important to us than protecting our

imposed on people’s private and work activities havepeople. Despite the hope and optimism fueled by

led to widespread COVID-19 fatigue. In video

vaccinations, we are still committed to preventing themessages from Managing Board members and in

further spread of the coronavirus, combating it, andlocal and centralized initiatives, Siemens has

curbing it with all our strength. This commitment

expressed its appreciation for the fact that our people

requires that we as a company continue to implement

have not only been able to protect themselves andsustainable hygiene and protection concepts together

their co-workers, but have also made an invaluablewith all our people.

contribution to the success of our company with their

Lasting protection and enduring
appreciation

responsible behavior over many months and under
extremely difficult working conditions in many cases.

The COVID-19 crisis team established in 2020 andTrust in our solutions

the decentralized emergency management teams

The second year of the pandemic has shown that we

continued to closely observe the course of the global

will navigate the crisis safely, making a valuable

pandemic in 2021 and reacted to regional

contribution to society with our many initiatives anddevelopments quickly and efficiently. The establishedsolutions. This is demonstrated by the following

hygiene and protection concepts were adjusted

activities and projects:

SIEMENS SUSTAINABILIT Y REPORT 2021

8

The COVID-19 Pandemic→ The COVID-19 Aid Fund, established in April 2020
andlargely

managedbytheorganization

Siemens

Caringcharitable→ With its smart building solutions, Siemens Smart
Infrastructure creates safe and protected indoor

e.V.,

spaces in office buildings and factories, healthcare

continued to provide quick, unbureaucratic

facilities, and public buildings. These solutions

support to aid organizations and medical

help to combat the spread of the virus and safely

Hands

institutions, as well as those affected by the crisis

revive economic and social life. For example, theworldwide. Since April 2020, Siemens and our

National Center for Civil and Human Rights

people have donated more than €7 million, which(NCCHR), in Atlanta (United States), was one ofhas been used to finance important aid projects

the first cultural institutions to integrate thermal

throughout the world. These include local

imaging and air purification technologies frominitiatives in collaboration with NGOs in certain

Siemens and its partners into its existing healthcountries and other global initiatives managed

and safety protocols. As a result, the center was

directly by Siemens Caring Hands e.V. Forable to reopen its doors to visitors and offer a safe

example, Siemens has made a lasting contribution

place for learning and open dialog in the midst

to combating the pandemic in India by using theof the pandemic.

aid fund to supply 100 oxygen concentrators to→ Especially during the COVID-19 pandemic,

hospitals in Bengaluru, Goa, and Chennai, in

mobility is essential for keeping society and the

addition to the company’s local efforts in that

economy healthy and running smoothly. ­Siemens

country. The concentrators help treat COVID-19

Mobility’s products and solutions help mobility

patients. In addition, donated funds have been

providers continue to operate efficiently andused to provide additional medical devices,sustainably while also reducing the risks forhygiene sets, masks, and food to affected families

passengers. With our MaaS (Mobility as a Service)and facilitate access to education in digitalplatforms, we can help railway operators provide

formats. The aid fund supports COVID-19

seamless mobility. Transparent travel details andprojects in more than 40 countries, including

options to plan and pay for trips – even intermodal

Brazil, India, the United States, Germany, Vietnam,

trips – without physical contact help make travel

Sudan, Mexico, South Africa, Canada, andsafe and comfortable and therefore contribute to

Bangladesh.

a more sustainable use of public mass transit.

→ Since the beginning of the pandemic, Siemens has

One MaaS solution will be deployed on aprovided aid funds totaling approximately

country-wide basis in Spain, for example, where€18 million, via both the COVID-19 Aid Fund andthe railway operator Renfe has engaged Siemens

other charitable projects directly financed with

Mobility and everis to develop and operate acompany funds.

smart MaaS platform.

→ Bringing a vaccine quickly to market is critical for
combating a pandemic. Siemens Digital Industries

In these times of dramatic change for companies,

helped the pharmaceutical company BioNTech

industries, and markets, it has been shown that ourrefit its factory in Marburg for the production ofcustomers and partners can trust Siemens to help

COVID-19 vaccines in a record time of only fivethem solve their pressing challenges and make a realmonths. This success will now be transferred todifference in the world.

other production facilities in order to make the
COVID-19 vaccine available throughout the world
as quickly as possible. BioNTech was the firstcompany to bring a new mRNA vaccine to market,
together with Pfizer.

SIEMENS SUSTAINABILIT Y REPORT 2021

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The COVID-19 Pandemic

The course has been set for a new normal
The past months have been strenuous and often
challenging. However, the pandemic has also givenrise to new opportunities to develop modern ways ofworking and new forms of collaboration. After many
months of learning and experimentation, ­Siemens
will not simply go back to the “old world” – because
we have evolved as individuals and as an organization.
The coronavirus crisis and the resulting measures
have shown that mobile working offers many
advantages that had previously not been utilized –both for individuals and for the company. In July 2020,
Siemens introduced its New Normal Working Modelas an early move to set the course for thetransformation to a “new normal.” The goal is to offer
all our people anywhere in the world mobile working
two to three days per week on average, and whensensible and feasible. This new model aims toestablish a work and leadership culture that is basedon trust and self-determination – independent offace-to-face encounters. By focusing on results
instead of presence in the office, we empower ourpeople to adopt new, more flexible ways of working,and to choose for themselves the work environment
where they can give their best performance.
With this new working model, Siemens is one of thefirst major international companies to establish aculture that not only enhances the motivation andperformance of its people, but also strengthens its
position as an attractive employer that is prepared toreact flexibly to future crises. Above all, however, thisapproach shows exactly what Siemens is: a modern
and leading technology company filled with people
who drive transformation with courage and passion.

SIEMENS SUSTAINABILIT Y REPORT 2021

10

Page 11 – 35

Siemens at
a glance

SIEMENS SUSTAINABILIT Y REPORT 202111

1.1 Our DEGREE framework sets clear and measurable ambitions

1.1

Our DEGREE framework
sets clear and measurable ambitions
D ecarbonization

support the 1.5°C target to fightglobal warming

E thics

foster a culture of trust, adhere to ethical standards, andhandle data with care

G overnanceapply state-of-the-art systems for effective andresponsible business conduct

R esource efficiency
achieve circularity anddematerialization

E quityfoster 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 clear framework for sustainability
Sustainability is an integral part of our business – it

The DEGREE framework is based on six fields of action

is part of our DNA. We are taking our ESG commit-that drive sustainability and are dynamic and continu-

ment to the next level with our DEGREE framework.

ously evolving. We have set clear priorities and ambi-

It constitutes a 360-degree approach for all stake-tions for key ESG issues, which we are driving withinholders – our customers, our suppliers, our investors,

our own operations and together with our customers

our people, the societies we serve, and our planet. In

and suppliers. The DEGREE framework applies to alladdressing the three aspects of ESG, we are building a

Siemens-affiliated companies excluding Siemensbetter future that helps us stay within the planetary

Healthineers (SHS). The sustainability concept of SHS

boundaries, helps us foster a culture of trust, empow-

follows the same basic principles, which reflects ourerment, and growth, supports inclusive economic

expectations as majority shareholder.

opportunities, and ensures that our people andbusinesses remain resilient and relevant for whatever the future holds.

SIEMENS SUSTAINABILIT Y REPORT 202112

1.1 O ur DEGREE framework sets clear and measurable ambitions

What are our ESG ambitions and priorities? And what progress did we make until end of fiscal 2021?
14 global ambitions and key figures for Siemens excluding Siemens Healthineers, unless otherwise noted.
Baseline

Decarbonization

1.

Net zero operations by 2030 in line with

Progress until end of FY 21 Ambitions

926 kt CO22

– 36 %– 50 %

SBTi pathway  12.

Net zero supply chain by 2050,

8,098 kt CO2e 3– 20 %–1%

20 % emissions reduction by 2030

Ethics3.

Striving to train 100 % of our people on−−

76 % 4100 %Siemens’ Business Conduct Guidelines
every three years

Governance4.

ESG-secured supply chain based on supplier−−Suppliers committed−−−−

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

Long-term incentives based on
ESG criteria  5Resource
efficiency

6.

Next-level robust ecodesign for 100 % of relevant

26 % 6

100 %

26 %

Siemens product families by 2030
7.

Natural resource decoupling through increased−−

Part of Eco Efficiency @ Siemens 6

7,000 t 6

7,000 t−−purchase of secondary materials for metals
and resins 7
8.

Circularity through waste-to-landfill reduction– 50 %

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

Equity9.

30 % female share in top management by 2025

10. Access to employee share plans: maintain high22.7 % 3

27.5 %

30 %98 % 6

98 %

100 %

level and expand globally to 100 %  8
11. Global commitment to the New Normal
Working Model

Employability−−––

Roll-out continued

9

12. Double digital learning hours

7h 3

x 2.5

x2

by 2025
13. Access to employee assistance program:

82 % 3

87 %

100 %

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

0.31 3– 13 %– 30 %

aggregated LTIFR by 2025
10

FURTHER INFORMATIONON OUR AMBITIONS

1 S
 cience Based Targets Initiative inclusive of Siemens Healthineers equivalent to 50 % reduction in emissions
from business operations (scope 1 and 2) by 2030.
2 Baseline FY 19. 2030 SBTi reduction path requires 50 % operative CO2 emissions reductions (Scope 1 and 2).
3 Baseline FY 20.
4 Since the beginning of FY 20.
5 Assessment based on the Siemens internal ESG / sustainability index, based on customer satisfaction (Net Promoter Score), CO2 reduction, training hours.
6 Baseline FY 21.
7 Product specifications for the use of secondary plastics are in development.
8 Where legally possible and reasonable.
9 For employees with job profiles that make this possible and reasonable.
10 LTIFR: Lost Time Injury Frequency Rate (Siemens employees and temporary workers).

SIEMENS SUSTAINABILIT Y REPORT 2021

13

1.2 Company profile

1.2

Company profile– Internationally active, focused technology
company– Purpose:

By combining the real and digital worlds, Siemens
empowers its customers to transform their industries

Technology

toTransform

theand their markets.

­Everyday– Combining the real and digital worlds tobenefit customers and society

In addition to its core businesses of Digital Industries,
Smart Infrastructure, and Mobility, Siemens is the
majority shareholder of the exchange-listed company
Siemens Healthineers (SHS) – a globally leading pro-

A focused technology company

vider of medical technology that is shaping the future

Siemens AG (Berlin and Munich) is a technology com-of healthcare.

pany focused on the fields of industry, infrastructure,mobility, and healthcare.

Businesses and services
Industrial businesses
Digital Industries

Smart Infrastructure

Mobility

Other businesses

Portfolio Companies

Services

Siemens ­Advanta

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

COMPANY PRESENTATIONSIEMENS SUSTAINABILIT Y REPORT 2021

14

Siemens Healthineers1

Siemens
Financial Services

Siemens
Real Estate

GlobalBusiness Services

1.2 Company profile

Shaping the industrial revolutions
Digitalization –Combining the real andthe digital worlds inindustry, infrastructure,mobility, and healthcare

4th Industrial Revolution

Automation –Automation of production
and computerization

3rd Industrial Revolution

Electrification –Introduction of the assemblyline and advances intransportation

2nd Industrial Revolution

1st Industrial Revolution

Steam power –Shift from manual tomechanical production

Our corporate structure

Shaping the industrial revolutions

Our corporate structure comprises business units,

Siemens has shaped the industrial revolutions evercountries, and service and governance units. Our

since it was founded. Thanks to its extensive portfolio

national subsidiaries are close to our customers,

expertise and many years of experience in combining­create market opportunities, and drive growth on thethe real and digital worlds, Siemens is able to help

basis of a lean organizational structure. Siemens

shape the sustainable development of Industrie 4.0.

presents itself as one company in every country,
based on close collaboration between business units.
The service and governance units develop, transform,
and operate services efficiently for Siemens and forexternal customers. They ensure efficient, simplified,and robust governance.

SIEMENS SUSTAINABILIT Y REPORT 2021

15

1.2 Company profile

Milestones of a 174-year history

Key figures 1

Siemens is a technology company that operates in

In fiscal 2021, which ended on September 30, 2021,

nearly all countries of the world. Ever since it

Siemens generated revenues of €62.3 billion and a

was founded in 1847, it has stood for technicalprofit after taxes of €6.7 billion. As of Septem-­performance, innovation, quality, reliability, andber 30, 2021, the company had around 303,000 em-

internationality.

ployees worldwide.

Milestones in a 174-year history

1866

The dynamo makes
electricity part ofeveryday life

Pointer telegraphlays the foundation of
Siemens as a global
company

1879

1925

World’s firstelectric railway

Siemens electrifies the
Irish Free State with ahydroelectric power plant

2012

2010

TIA Portal takes automationa stage further

Test operation of theworld‘s largest rotor foroffshore wind turbines

2016

MindSphere, the cloudbased IoT operating system

1 Including Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021

1816 – 1892

1847

16

Werner von Siemens,
company founder,
visionary and inventor

1959

SIMATIC revolutionizes
automation

1983

First magnetic
resonance imaging
scanner

1975

Breakthrough of highvoltage direct-current(HVDC) transmission

2018

2019

2020

Charter of Trust: a joint
initiative for a secure
digital world

Launch of firstproject for
Siemensstadt 2.0

Comfy workplace app makes
it safe to return to the officeduring the coronavirus
pandemic

1.3 Strategy

1.3

Strategy– Continuous improvement on the basis of four
strategic priorities

digital transformation of industry, smart infrastructure, and sustainable mobility. Under our strategy– Sustainability is an integral part of ourthe core business units have more entrepreneurial

business: Our technologies and solutions­

freedom to focus on their own customers and markets.

support the transition toward a sustainable

We maximimize the benefits for customers by com-futurebining the real and digital worlds.

– Clear action fields and ambitions along our
DEGREE framework

Siemens’ unique ability to combine the real and digital worlds is based on three elements: Using its
experts’ profound domain knowhow, Siemens isWith the spin-off of Siemens Energy on Octo-

developing digital applications for specific industries.

ber 1, 2020 our company entered a new chapter. In

In addition, Siemens is pooling expertise to drive thethis new phase as a focused technology company,

core technologies that are used across the company.

Siemens is focusing on technologies that drive the

And thanks to a strong ecosystem including custom-

Our four strategic priorities

Value for our customers
We identify the needs of ourcustomers as early as possible –ideally before our customers
themselves are aware of them.

Technology with sense
and purpose
Innovative technologies have been
the beating heart of ­Siemens formore than 170 years – and will be in
the future as well.

COMPANY PRESENTATIONSIEMENS SUSTAINABILIT Y REPORT 2021

17

Strengthening andempowering people
We strengthen our customers,
partners, and employees so thatthey can make the most of theirabilities.

Growth mindset
We will continue to growand learn – with curiosity,
resilience, experimentation,
and adaptability

1.3 Strategy

ers, partners and startups, Siemens brings customer-oriented innovations fast to market.

DEGREE: A clear framework forsustainability
The answers to the challenges of our time are vitally

Digitalization, automation and sustainability areimportant for the quality of life for people living today

growth engines for our business. Here, our coreand future generations. Every degree counts as webusiness and our digital business reinforce eachstrive to responsibly fulfill the needs of a constantly

other in a virtuous cycle. This effect forms the foun-evolving society. DEGREE underlines the necessity todation of our growth strategy for achieving more

limit global warming to 1.5 degrees Celsius.

profitable growth. As a focused technology company, we want to strengthen our position in all ourThat is why we are taking our sustainability approachmarkets and enter adjacent profitable markets.

to the next level with our DEGREE framework. It­represents a 360-degree approach that includes all

The company is rapidly driving its technology port-

critical action fields for Siemens. With this approach,folio: software and automation solutions and an IoT

we address all our stakeholders: our customers, ourplatform, plus core technologies in areas such as

investors, our people, the societies which we serve,

artificial intelligence (AI), digital twins, 5G, industri-and our planet:al edge and cybersecurity. Since Siemens’ core business and its digital business will increasingly reinforce each other in the future.

Sustainability is an integral part of ourbusiness
Sustainability is an integral part of our business. With
our technologies and solutions, we empower ourcustomers to drive sustainable growth and transform
industries toward a sustainable future. Our DEGREE
framework outlines the relevant focus topics for

D for Decarbonization – With our portfolio, we help our­Siemens. It contains six action fields, within whichcustomers lower their emissions and thereby achieve

we have defined 14 ambitions. We continually

their decarbonization goals. Besides aiming to make our­develop these action fields in order to address central

own business operations climate-neutral by 2030, we

ESG aspects (E for Environment, S for Social, and G for

also strive to lower all emissions ­associated with us –Governance) from the perspective of all our

from our supply chain t­ hroughout the use phase of our­stakeholders.

products. With its commitment to the Science Based
Targets initiative, Siemens s­ upports the Paris Climate“Sustainability is part of our DNA:
It is not an option,
it is a business imperative.”
Judith Wiese, Chief People and Sustainability Officer,

and member of the Managing Board of Siemens AG

SIEMENS SUSTAINABILIT Y REPORT 2021

18

Agreement goal to limit global warming to 1.5 degrees
Celsius. 1

1

Science Based Targets initiative including SHS.

1.3 Strategy

E for Ethics – At Siemens, we pursue a zero-tolerance

nity. Thereby, we aim to create a sense of belonging

approach to corruption as well as other violations ofand a safe environment, where all our people can give

applicable laws and our own Business Conduct Guide-

their best. By 2025, we plan to have a 30 % ­femalelines. Our values and ethical standards are embedded

share in our top management. Also, we want to main-in our Business Conduct Guidelines, on which we willtain access to employee share plans at a high levelprovide regular training to all our people. Our com-and expand globally to 100 %.3 As one of the firstpany is marked by a culture of trust. We co-foundedmajor industrial players we have committed to a “newthe initiative “Charter of Trust” to protect data andnormal” 4 in which our people can work ­remotely forpromote cybersecurity in a trustworthy digital world.

two to three days per week, fostering a culture of trustand empowerment.

G for Governance – It has been clearly shown thatstrong governance goes hand in hand with better,

E for Employability – In a constantly changing world,

more sustainable business. Besides embedding these

it is critically important that we as a company and as

principles in our own management systems, we ex-

individuals remain resilient and relevant. At Siemens,

tend them to our suppliers, who are obliged to follow

we are constantly investing into development anda comprehensive Code of Conduct. Furthermore,education of our people. We strongly focus on digitalsustainability criteria are an integral element of ourlearning,

long-term variable compensation programs for both

­occupational health & safety. For example, we are

the Managing Board and our senior ­management.

aiming to reduce the injury rate by 30 % until 2025,

1

employeeassistanceprogram,andcompared to the baseline year 2020. 5
R for Resource Efficiency – We want to accelerate

ADDITIONAL INFORMATION

recycling and circular economy. Therefore, we havedeveloped a new standard for the design of environ-

The DEGREE framework applies to Siemens AG

mentally friendly products, which contains clear

except­Siemens

Healthineers,

which

is

an

product design criteria and shall cover 100 % of

independently stock-listed company. Under the­­relevant product families. Our technology enables­Siemens brand, we are closely connected to Siemenssustainable design approaches for products and

Healthineers­solutions, both for our customers and ourselves. In­sustainability in all its dimensions. These values

via

sharedvalues,including

addition, we promote decoupling from naturalcontain the central ESG aspects (E for Environment,

resources by increasingly purchasing secondary­

S for Social, G for Governance) from the perspective­materials.2 By 2025, we are aiming to reduce ourof all our stakeholders – the foundation of DEGREE

landfill waste by 50 % from the baseline year 2021.

framework. In its sustainability concept, Siemens
Healthineers pursues the same values, which

E for Equity – Equality and respect are the core of our­represent our expectations as majority shareholder.

corporate values. Our goal is to be the employer of

The specific Siemens Healthineers sustainability

choice and to foster diversity, inclusion, and commu-­approach is described in a dedicated report.

1 Assessed based on Siemens-internal ESG/Sustainability index, basedon Customer Net Promoter Score, CO2 Reduction, Training Hours.
2 Product specification for use of secondary materials under­development.

3 Where legally possible and reasonable.
4 For employees with job profiles that make this feasible and­reasonable.
5 LTIFR: Lost Time Injury Frequency Rate (of Siemens employees andtemporary workers).

SIEMENS SUSTAINABILIT Y REPORT 2021

19

1.4 Sustainable development of societies

1.4

Our contribution to sustainable­development of societies– Effective

influenceinachieving

UN’s­Sustainable Development Goals (SDGs)

The United Nations’ 17 Sustainable Development
Goals (SDGs) and their 169 targets serve as a compass– Our contribution is measured with Businessfor the joint efforts for change that must be made by

to Society (B2S) methodology, using six

governments, businesses, cities, and civil society as

globally valid areas of impact– SDGs included in our DEGREE sustainability

The SDGs and their related targets address the mostframeworka whole if we are to achieve a more sustainable future.
important economic, social, environmental, and

ty
ili
b
a

bonization
Decar

Et

cs
hi

Em
pl
oy

Allocation of the SDG goals to Siemens sustainability framework DEGREE

Governanc
e

ity
Equ
cy
f i cien
Resource ef

SIEMENS SUSTAINABILIT Y REPORT 2021

20

1.4 Sustainable development of societies­governance-related challenges of our times, and thus

to carbon neutrality. These technologies support

help stimulate transformational change. Adopted ascustomers in achieving their objectives while­values, the SDGs also influence Siemens as a c­ ompany.

consuming fewer resources. To varying extents,­

They are firmly associated with our new DEGREE­Siemens helps achieve most of the SDGs in the­sustainability framework, which serves in-house toUN’s Agenda 2030 in four important ways:

guide our sustainability management, and also lays
down the details of our ambitions for sustainability.

→ through our products and solutions,

The SDGs are reflected as well in our Business to→ by doing business responsibly,­Society (B2S) methodology, which exemplifies ­Siemens’→ through our expertise and thought leadership,

global effect on the outside world, and how we generate value for all our stakeholders.

and→ through our corporate citizenship activities andcommunity engagement.

The long-term priorities for Siemens as part of oursustainable development agenda are clear: We want
to apply our engineering expertise and our approachto connect the real and digital worlds, improve­people’s quality of life, and protect the planet. This isespecially supported by our corporate purpose of“Technology to Transform the Everyday.” The UN’s
17 SDGs have thus become ­fixtures of our everyday­business. Siemens deploys its technology portfolio tosupport the public and private sectors in the digitaltransformation of industry, ­building and network
infrastructures, mobility, and healthcare, and thus
can tap extensive business opportunities for value-­enhancing growth. At the same time, we offer
cost-effective, innovative solutions for the transition

SIEMENS SUSTAINABILIT Y REPORT 2021

21

1.4 Sustainable development of societies

How we contribute to achieving the SDGs

Goal 5 – Achieve gender equality andFrom a global standpoint, these are the SDGs where­empower all women and girls

Siemens has a high or medium impact:
We firmly believe that promoting ­diversity in theGoal 3 – Ensure healthy lives and promote

workforce serves the interests of both society andwell-being for all at all ages

Siemens itself. Diversity reinforces our innovative
strength, unleashes employee potential, and directly

We make a significant impact on SDG 3 through ourcontributes to our business success. Through ourbusiness portfolio, especially through Siemens

human resources management, we are also­

Healthineers and the production technology we pro-

­supporting a transformation in top management,

vide to pharmaceutical companies. In addition to thewhere there is room for improvement. Here we are

impact of our portfolio, we also care about the healthrecruiting more women for top managerial positions,and safety of our people and contract workers. Sep-and including more women in networking activities,

arately from Siemens Healthineers, Siemens sets

trainings, and mentoring programs. Excluding

ambitious goals for access to Employee Assistance­Siemens Healthineers, Siemens aims to have globally

Programs, and for reducing employee accident rates

30 % of its top management positions filled by women(Lost Time Injury Frequency Rate – LTIFR). And weby 2025.

participate in health-related community engagement
activities, such as cancer awareness campaigns andGoal 7 – Ensure access to affordable,

mobile clinics.

­reliable, sustainable, and modern energy
for all

Goal 4 – Ensure inclusive and equitable
quality education and promote lifelong

Our business portfolio covers the entire spectrum oflearning opportunities for all

applications for modern smart grids and energy

Lifelong learning is a basic prerequisite if we are to­decentralized energy structures powered by Siemens

distribution systems. The rapid expansion of­
ensure employability for our people and in the job

technology creates a more diverse energy mix andmarket in general. We offer access to education in

improves the security of energy supplies. The Internet

multiple ways, including learning and educationof Energy and data-based technologies foster energy­opportunities for all our people, as well as vocational

intelligence and lead the way toward a sustainable

and more advanced training through partnerships

energy landscape. Our technologies facilitate accesswith schools and universities. Education for ­customers

to clean, reliable, low-carbon energy.

and suppliers is likewise high on our agenda. We also
aim to inspire young people to pursue careers in
STEM fields (science, technology, engineering andmathematics)­

throughnumerous­citizenship activities around the world.

SIEMENS SUSTAINABILIT Y REPORT 2021

22

corporate1.4 Sustainable development of societies

Goal 8 – Promote sustained, inclusive andGoal 11 – Make cities and humansustainable economic growth, full and­settlements inclusive, safe, resilient, andproductive employment and decent work

sustainable

for all
Siemens is a trusted partner for municipal g­ overnments,
Siemens is committed globally to the New Normal

offering solutions across all infrastructure domains to

Working Model. Our aim amid this new normal is formake cities more efficient, sustainable, and resilient –all our people around the world to be able to work on

for instance, with intelligent transportation solutions,a mobile basis two to three days a week, whereverefficient and safe buildings, and smart-city initiatives

feasible and reasonable. Mobile working has many

leveraging the power of digitalization.

advantages – for the individual, but also for the­company, for instance by ensuring that we are pre-Goal 12 – Ensure sustainable c­ onsumption

pared to respond flexibly in future crises. Our world-and production patterns

wide business operations and our position as athought leader mean that in many countries we

Siemens is committed to using resources responsibly

contribute toward the growth of gross domestic prod-

and recognizes that the circular economy offers

uct (GDP). We are committed to offering attractive

highly beneficial opportunities for business, the­jobs and f­ acilitating employment, and we are encour-­environment, and society. So by the end of thisaging the uncoupling of economic growth from en-­decade we want to evolve even further toward theergy ­consumption.

circular economy, for example by increasing the­percentages of metals and plastics we procure as

Goal 9 – Build resilient infrastructure,promote­inclusiveandsecondary materials. We also aim to reduce oursustainableamount of landfill waste. Siemens has worldwide­industrialization, and foster innovation

strategic initiatives for the design phase and end oflife-cycle for its products and operations, and is

As a global technology company and innovation­committed to robust, ecologically friendly design.

­leader in electrification, automation, and d­ igitalization,

We apply disruptive technologies and innovative

Siemens supports sustainable industrialization. Withbusiness models to make an active contribution to

our engineering and our knowledge of n
­ umerous

the circular economy.

sectors and digital technology, we help our business
partners across the entire value chain, from design
to production, and from operations to maintenance.
We believe in international partnerships as key toinnovations. A large percentage of our customers
and suppliers are small and medium-sized enterprises (SMEs). We have officially adopted sustainability
as an additional strategic imperative for our investment decisions.

SIEMENS SUSTAINABILIT Y REPORT 2021

23

1.4 Sustainable development of societies

Goal 13 – Take urgent action to combat

requirements of the United Nations Global Compact

climate change and its impacts(UNGC), the Human Rights Declaration, and all otherrelevant regulations into our supply chain and to

Siemens was one of the world’s first ­industrial firms­promoting their principles through our work withto commit to making its own business activities car-external organizations and institutions.

bon-neutral by 2030. By 2020 we had halved our own
operations’ carbon footprint from the 2014 figure,

Goal 17 – Strengthen the means ofand thus met our intermediate target. The company­implementation and revitalize the ­Global

is now stepping up its existing activities for physicalPartnership for Sustainable D­ evelopment

decarbonization all along the value chain. Siemens,
excluding Healthineers, has committed to reducing

As a global company and advocate of free trade, weemissions in its supply chain by 20 percent from thebelieve2020 level by 2030, and is aiming to have a carbon-­development and to our company’s success. In­

neutral supply chain by 2050. Our targets have been

addition,­chosen on the basis of the reduction track of the­digitalization, project financing, and public-private

partnerships
wearerecognize

key
the

to

sustainable

importanceof

Science Based Targets initiative. This ensures that ourpartnerships for sustainable development. In all ofefforts are consistent with the levels aimed for by thethese areas, we are partnering with international

Paris Climate Accords. Our technologies help custom-organizations, business organizations, think tanks,

ers in a vast range of industries to ­improve their en-

nongovernmental

ergy efficiency permanently, with a positive businessacademia, including the UNGC, World Economic­

scenario, and to reduce CO2 emissions.

organizations

societies for sustainable development,
provide access to justice for all, and build
effective, accountable, and inclusive institutions at all levels
We anchor integrity and compliance throughout ourcompany and advance the Siemens Integrity Initiativewith external stakeholders. By these means andthrough our activities with other players, we support
fair competition and ensure our company’s long-term
success. Siemens is committed to incorporating the

SIEMENS SUSTAINABILIT Y REPORT 2021

24

and

­Forum (WEF), econsense, Transparency International,
and numerous universities.

Goal 16 – Promote peaceful and inclusive(NGOs),

1.4 Sustainable development of societies

Business to Society – measuring oursocial impact

Customers and governments thus get useful
information, for example in the course of large­

We measure our impact on sustainable development­infrastructure projects. Employee feedback on social

with our Business to Society (B2S) methodology. This

media posts indicates that our contribution toapproach is based on the Measuring Impact Frame-­societies makes our people proud to work for Siemens.

work published by the World Business Council forTransparently contributing to society thus provides

Sustainable Development (WBCSD) and allows us totangible business value to Siemens. We will continue

measure in quantitative terms the social impact of

to apply the methodology within customer projects

our activities in six different action zones: advancing

and bidding procedures. Both in-house and for thethe economy, promoting skills and jobs, driving inno-

general public, we will keep up communicating our

vation, protecting the environment, improving qual-

impact on sustainable development and the value it

ity of life, and shaping social change. Not only that,brings for all stakeholders.

it also gives us an objective assessment of the effects(impacts) of our projects, locations, and business,
including activities in different countries and theirsocieties. The B2S approach was launched as a pilot
project in fiscal 2015. By the end of fiscal 2021, morethan 35 countries had completed their analyses. The
approach has four steps:

1. Analyze the most relevant development priorities
in a given context (such as global, national,
project);
2. Identify and measure our contribution to thesepriorities;
3. Define strategic actions to enhance ourcontribution
­

and

help

shape

furtherdevelopment;
4. Be transparent about our contributions bykeeping external and internal stakeholders­
informed.

SIEMENS SUSTAINABILIT Y REPORT 2021

25

1.5

Our key areas of impact
Creating value for our stakeholders in fiscal 2021: selected highlights of Siemens’ (including SHS) global impact
through its six Business to Society action pillars. This approach considers Siemens including SHS and differs from our
DEGREE framework. Further information on how the data was gathered can be found in theStrengthening the
economyBuildingskillsREPORTING METHOD SECTION

Drivinginnovation

Economic value:

Global employment:

Research and development:

Generated €281 billion of gross value added,1Siemens opened up possibilities for 5 million€ 4.9 billion spent on research and development€ 62.3 billion in revenue; operating in aroundjobs, 2.6 million of them in developing and(R&D), 44,900 R&D employees, R&D intensity

200 countries

emerging economies; 303,000 2 Siemens

7.8 %, 43,400 patents granted

employees; around 34,400 2 new hires
Financing:

Setting up innovation networks:

Siemens Financial Services – With more than

Professional education and lifelong

Siemens’ global venture unit, next47, provides

2,900 Siemens Financial Services experts,

learning:

capital to help start-ups

Siemens Financial Services helps to enable

Around 6,700 apprentices and students in dual

projects mainly in the area of infrastructure andstudy programs worldwide, € 318 million

Digital transformation:technology for approximately 285,000 customers

invested in vocational education and training,

Digital Industries – Digital solutions boost

around the world through financing solutions€ 165 million of that in employee training. This

cost-effectiveness and productivity among our

totaling € 30.4 billion

equated to an average of € 573 and 22 hours per

customers; for instance, simulation software

employee.

saves billions of miles of road testing in thedevelopment of autonomous vehicles. Charter

Attractive jobs:of Trust – joint initiative between Siemens andMore than 100,000 Siemens employees

companies all over the world to create a moreexcluding SHS took part in the Siemens employee

secure digital world

share program in 2021; as shareholders, they arealso co-owners. Personnel expenses for wages

University partnerships:

and salaries: € 20.1 billion; pension contributions

Siemens works closely with the researchof approximately € 4.0 billion

excellence in international ecosystems

3

Diversity:
26.7 % of the Siemens workforce is women;
19.6 % of management positions are held by
women; 167 nationalities; the Ability@Siemens
initiative promotes a culture of integration forabout 5,000 persons with disabilities

1 Fiscal 2019.
2 Including Varian.
3 
Contributions to defined benefit plans, defined contribution plans, and state plans. Figures comprises thetotal of all continuing and discontinuing operations.

SIEMENS SUSTAINABILIT Y REPORT 2021

26

1.5 Our key areas of impact

Protecting theenvironment

Improving qualityof life

Shaping achanging society

Decarbonizing society:

Health:Supply chain management:

88 Mt greenhouse gas reduction throughSiemens Healthineers – 174 million patient

Clear commitment from around 63,000 suppliers

Environmental Portfolio products in operation

touchpoints provide access to healthcare into the Siemens Group Code of Conduct forby our customers

underserved countries; 64 AI-supported products

Suppliers and Third Party Intermediaries,

help improve clinical decision-making

394 external sustainability audits performed

Smart Infrastructure – Guaranteed reduction of

Mobility:

Integrity:€ 4.0 billion (1995 – 2044) in utility costs for our

Siemens Mobility – Providing mobility solutions

Some U.S.$ 120 million in funding provided forcustomers. To date, that guarantee has alreadythat enable safe, reliable, clean, affordable public

85 projects as part of the Siemens Integrity

been surpassed by 20 %transportation to carry people sustainably, door

Initiative to combat corruption and fraud in more

to doorthan 50 countries; around 72,000 employees

Efficiency in consumption:

Carbon footprint:

have already completed global online training– 36 % Scope 1 and Scope 2 emissions since

Security:

FY 2019 according to our SBTI 1-based reduction

Smart Infrastructure – Security solutions protect

path, 78 % of total energy consumption is green

people and materials, enhance operating

Human rights:

electricity

efficiency, safeguard business operations, andComprehensive due diligence process regarding

ensure complianceenvironmental and social risks implemented

92 % of total waste is recycled or recovered;Occupational health and safety:

Social responsibility:

With our digital marketplace “SiEasy”, we enable

New corporate program “Healthy and Safe @€ 40.6 million in community investment

idle equipment, machines, furniture andSiemens” launched; reduction of the LTIFR: Lost

materials to continue to be used within Siemens.

Time Injury Frequency Rate for Siemens

Siemens Stiftung:In this way, we extend the service life time of ouremployees and temporary workers by 8 %The charitable foundation, established in 2008,

used equipment and avoid additional resourcecompared to the previous year; acting quickly,

promotes with its international project work

extraction from natureeffectively and adapted to the respective local

access to basic services, high quality education

situation during the COVID-19 pandemic in orderand an understanding of culture. With a network

to ensure the health and safety of our peopleof over 100 cooperation partners the foundation

course in the Business Conduct Guidelines

Circular economy:

develops solution approaches and programs with
Global commitment to the New Normal
Working Model
1 S
 cience Based Target Initiative; base year 2019.
2 For employees with job profiles that make thisfeasible and reasonable.

SIEMENS SUSTAINABILIT Y REPORT 2021

27

2

a focus on technological and social innovations

1.6 Customers

1.6

Customers– “Customer impact” guides our actions→ On top of that, digitalization has ushered in– Key Account Management: A holistic ­approach

sweeping operational changes – including lean

to the customer– Regular measurement of customer ­satisfaction

to name just two examples.

management and agile software development,→ Data-driven business models and technology-­
based services are booming.

Putting customers first has a long tradition at S
­ iemens.
When it comes to technology, innovation, andAs these changes advance, our customers’ needs are­sustainability, our customers are always at the heart

also changing. So as a company, we must adjust asof what we think and do: Everything begins with

well, and listen carefully to our customers so we canthem.

provide them with the best possible help in adapting

1

to change.
That’s why we’ve made customer benefit a strategic
priority. We listen so we can understand our c­ ustomers’

Our customers are among our most importantneeds as early as possible – best of all, even before

stakeholders, along with our suppliers, partners,

our customers themselves become aware of them.

Focus on customer impact

investors, and our people. We engage in critical dialog
and engage with them, answer their questions, and­encourage discussion. This helps us better understandWhat do our customers want? How can we be sure to

our stakeholders’ expectations and take the righthelp them stay relevant, even during phases whenstepsmarkets are constantly shifting, and our customers

maintaining and enhancing trust.

tostrengthen

ourpartnerships

while

themselves are undergoing transformations?
We provide products, solutions, and services in a
­ lmostOur approach must continuously adapt to a world of

every country in the world. To meet our customers’

ever-accelerating change:needs and the constantly changing demands of themarkets, Siemens draws on a global sales force that

→ Growth markets can be volatile.

takes its guidance from our regional companies. Key→ Innovation and development cycles havesuccess factors are a strong customer focus,

shortened drastically.
→ As barriers to market entry are lowered, nimble­digitalization, and efficient and lean processes, aswell as collaboration with external partners.

new competitors are entering the scene.
→ Digitalization can be disruptive, but it alsooffers new business opportunities.

Our regional teams can also call upon our global­network of partners, which includes consultants,
distributors, integrators, technical procurement­

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

SIEMENS SUSTAINABILIT Y REPORT 2021

28

­experts, construction companies, machine builders,and more.

1.6 Customers

Questions such as “How to create business value fromdigital technologies?” or “Will new digital players a­ ttack
my core business and with whom to partner?” play an

Technology with a goal and purpose:important role.

We help customers improve theirsustainable performance

Increasingly complex solutions driven by ­digitalization,
along with new and changing business models andThrough our portfolio – which primarily covers

holistic strategies for sales ecosystems, require robust­automation and digitalization in the process andselling skills and a strongly value-oriented customer

manufacturing industries, as well as intelligent­

approach.

infrastructure for buildings and energy systems,­­mobility solutions for rail and road transport, andTo address these challenges, at Siemens we rely on a­medical technology for the healthcare sector – wemature and structured Key Account Management

have an impact on the fulfillment of numerous

approach.

­sustainable development goals (SDGs).
We intend to help our customers refocus on­sustainable solutions and transform potential risks

Key Account Management:

into ­competitive advantages with our technology anda holistic ­approach to meeting­innovation. Siemens has a unique store of expertisecustomer needs

for managing this transition so as to make­sustainability into a growth engine, transform supply
chains, and protect our people.

New solutions for the digital world

Key Account Management is the company-wide
program that structures and drives systematic­­business relationships with Key Customers. While all
our customers are served by the general Sales

The digital transformation is also changing all areas­organization, Key Customers are attended to also inof life: how we stay informed, how we travel, how

our Key Account Management approach.

we shop – and how we manufacture products. And
it’s also changing business models.

As part of our ESG assessment, we’re preparing to

The speed of innovation and the ability to disrupt are

and social risks for our key accounts. Following a pilot

becoming key success factors in global competition.

run and full implementation, we’ll discuss this in more

This increases the pressure in all industries – and at

detail in our next report.

include a regular risk assessment of environmental

the same time, it creates new business opportunities,
but is also characterized by an increasing complex-

Siemens Vertical Markets

ity and uncertainty for our customers, suppliers,

The main principle for successful Key Accountand partners.

­Management is – beyond the basic sales approach –a special understanding of our customers’ verticalmarkets along with the collaboration among ­allcustomer-­­facing parties – across functional,organizational,­

and­(“Go-to-market“ approach).

SIEMENS SUSTAINABILIT Y REPORT 2021

29

regional

boundaries

1.6 Customers

Such a holistic view makes it easier to develop ­suitableThanks to harmonized processes, Key Accountsales strategies that consider individual business fac-

­Management helps us act as ONE company and serve

tors, opportunities, vulnerabilities, and the entire

our customers in a global, sustainably coordinatedecosystem in the respective industries.

approach.

Siemens has therefore structured Key AccountIn the Vertical Market approach, Key Account­Management according to vertical markets (Siemens­Managers operate as the interface between our Key

Vertical Markets/SVMs and Vertical Markets/VMs)

Customers and Siemens. They have a deep under-

which, through company-wide cooperation, provide

standing of the challenges involved, so they can

our Key Customers with a comprehensive range ofgenerate profitable growth with solutions that

products, solutions, and services across all business­successfully meet those challenges.

areas. In the SVMs, several Siemens businesses work
together to serve each market on a cross-business

Our Key Account Management approach, which webasis. In the VMs, markets are served by a single

apply worldwide, enables our Sales and Key Account­Siemens business.

Management representatives to adequately map andaddress all relevant customer needs and r­­equirements.

Siemens Vertical Market Management

Siemens VerticalMarkets (SVM)

Key AccountManagement

ner
art
al p
ern
Ext

2
sinessCore bu

Oth

er b
usin

ess

Core business 1essCorporate
Accounts

VerticalMarkets(VM)

Emerging Verticals

Customers

SIEMENS SUSTAINABILIT Y REPORT 2021

30

Sales

1.6 Customers

Systematically measuring and improving
customer satisfaction

Regardless of the score, we initiate a follow-up

What is more, we regularly measure customer

When a score is low and considered critical, we take­satisfaction – and, by extension, the quality of ourimmediate action to identify key issues and determine

partnerships – using the Net Promoter Score (NPS).

what measures need to be taken to improve the

The management compensation integrates long-term­relationship.

­process after the survey, both internally and e­ xternally.

performance bonuses based on ESG criteria and isanchored in the DEGREE framework under Governance. The assessment is based on the Siemens­internal ESG-/sustainability index, which comprises
the elements of customer satisfaction (Net Promoter

Our customers’ satisfaction is
our top priority

Score), CO2 reduction, and training hours.
SUSTAINABILIT Y GOVERNANCE AND ORGANIZATIONIn response to areas with potential for improvement, therelevant business units and regional entities e­ stablish

This systematic evaluation is based on comprehensive

measures for improvement that are r­ eviewed on a regu-

annual customer satisfaction surveys. The score itself

lar basis. By making these ­adjustments, we aim to im-

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

prove our customer ­relations and make Siemens thewould recommend Siemens to a colleague or busi-

partner of choice for all our customers.

ness partner?”
Smooth service, support, and proximity to our c­ ustomers
The survey pursues a holistic approach to customer

have always been our top priorities, even during therelations that includes following up through the im-

COVID-19 pandemic.

plementation of processes and systems designed tohelp foster long-term customer loyalty.1

Siemens measures customer satisfaction ­annually. This
year’s continuing increase in the Net Promoter Score

1In most cases, the survey questions focus on the business unit
(BU) level. However, the overall score can be aggregated up to the­business level and to the level of the entire company.

SIEMENS SUSTAINABILIT Y REPORT 2021

31

motivates us even more to keep meeting our customers’high expectations and demanding needs – especially intoday’s difficult environment.

1.7 Research and development

1.7

Research and development– Innovation that benefits people everywhere– Focus on core technology and innovation fields– Collaboration with partners as enabler→ Decentralized energy systems intelligently link
local energy production with consumers and­intermediate storage systems as the proportionof electricity generated by renewable sources
grows. Predictive and optimization tools i­ mprove

Our purpose is to provide innovations that improvegrid flexibility, creating emission-free buildings

the quality of life and benefit people all over theand smart charging infrastructures to provide aworld, thus contributing to various SDGs and thefuture-oriented path to more stable, ­lower-priced

implementation of the portfolio-related action areasand carbon-free power supplies.

Decarbonization and Resource Efficiency in our→ The availability of large, economical energy­DEGREE framework and verifying both the range­storage systems is essential for the success ofand the extensive benefits of our products andthe energy transition. Developed by Siemens,­applications.

these storage systems enable innovative forms

Innovation strengthens Siemens and its
customers

powered trains and ships

Our research and development (R&D) activities areof transport such as battery- and hydrogen-­→ Power electronics for inverters has always playeda major role in industry. As the amount ofgeared toward developing innovative, sustainable

electricity generated by renewable energy­

solutions for our customers and for Siemens­sources grows, power grids will also depend on­businesses and toward simultaneously s­ afeguarding

advances in power electronics to facilitate stable

our competitiveness. Our broad t­echnology port-

operation.

folio supports both public- and private-sector enti-→ Future mobility systems will increasingly beties with innovative solutions and business models­electrified and interconnected. Therefore, wein the transition to a ­carbon-neutral future. We

are working to develop a national charging

focus on core ­technologies and innovation fields –infrastructure for cars and trucks, fleet­

Company Core Technologies (CCT) – that play an

management­

essential role in the success of Siemens and its

supported integration and management of­customers. The joint implementation of our CCTs

­multimodal transportation systems.

systems,andthedigitallyby the company’s operating units and unit Technol- → Blockchain technology enables transactions
ogy ensures that research activities and business­between equal partners to be documented in a

strategies are ­carefully aligned and that all units

tamper-proof and transparent manner in ordercan profit ­equally and quickly from technologicalto allow peer-to-peer energy trading and ensure

developments. In fiscal 2021, the company focuseda transparent carbon footprint in multi-company

on the following CCTs:

supply chains.

SIEMENS SUSTAINABILIT Y REPORT 2021

32

1.7 Research and development→ Generators, switchgear, and other equipment

state-of-the-art diagnostic procedures arewill profit from innovative materials that can, for­generating larger and larger volumes of data.

example, boost the efficiency of power

Here, AI enables improved decision-making­generation and enable the lightweight design

thanks to data analysis, thus increasing ourof railway ­vehicles.

­customers’ productivity.

→ Additive manufacturing processes facilitate the→ In the area of medical technology, sensor

flexible production of components that have­systems and robotics represent two further focal

completely new topologies and are important

points for research, on the basis of which

innovation drivers. Siemens, which benefits asincreasingly complex applications can be­a user of this technology, is also involved in­automated. These technologies enable complex­developing a digital tool chain that will support

medical systems to function even in remotethedesignandsubsequent

printingof­components – “error-free and from one cast.”

areas and less-developed regions, while­
simultaneously­

improvingthesystems’→ We are shaping the future of automation. Our­efficiency. They also bring healthcare closer togoal is to cut engineering expenses, increase

people, make high-quality healthcare available

flexibility

everywhere and reduce both the frequency and–throughtheintegrationofautonomous manufacturing machines, for­instance – and improve our customers’­

cost of medical complications.
→ Digital twins involve the modeling and­productivity, while reducing energy consump-­simulation of systems and processes, including

tion. Advanced robotics plays a key role here,

the development and manufacturing of p
­ roducts.

particularly in the area of manufacturing.

Digital twins make it easier to accelerate the→ The Industrial Internet of Things (IIoT) is thecommissioningof

manufacturing

plants,result of the increasing networking of field­

improve time to market and optimize the­­devices. The IIoT enables field devices to be­operation of infrastructures throughout theirequippedwithadditional

software-based­functions during ongoing operations and makes

life-cycles.
→ Industrial cybersecurity is a key technology forit possible for the data produced by these

digitalization. The security of industrial facilities­devices to be evaluated in the field or in theand the protection of data and intellectual

cloud. It facilitates the development of new­property are important requirements not only

­operating and business models in areas such as

for customers, but also for governments andpredictive remote maintenance and optimized

societies, which demand that these r­ equirements

energy use. Our MindSphere solution offers an

are to be fulfilled.

open, cloud-based operating system for the IIoT.

→ Complex, highly distributed industrial software→ Industrial facilities and infrastructures are

systems that integrate the software of different­generating ever-growing amounts of data. With

providers can be developed only by using new

the help of machine-based data analysis andmethods and processes in software system

artificial intelligence (AI), we help plant­development.

operators to increase availability, improve­­operational quality, and minimize the stressplaced on humans and the environment. AI also
provides assistance in clinical processes, since

SIEMENS SUSTAINABILIT Y REPORT 2021

33

1.7 Research and development

After four years, the CCT portfolio was revised on

This CCT will now include R&D activities in the areas

October 1, 2021, in order to better support the newof life-cycle optimization (design tools, digital twins,

Siemens strategy and accommodate changed market

algorithm optimization) and decarbonization (tools

demands, while continuing to contribute to thefor the sustainability transformation and the green­success of Siemens and it customers through thefactory, carbon footprint transparency and optimiza-provision of Technology with Purpose. These changestion). The newly created CCT “Integrated Circuits &include among others the expansion and renaming

Electronics” bundles R&D activities in fields such asof the CCT Decentralized Energy Systems tooptimized design and resource-efficient manufactur-­“Sustainable Energy & Infrastructure.”ing, the testing and operation of industrial electronics
and the recycling of electronics-based products.

We use our core technologies in all businesses – for the
long-term success for Siemens and its customers

Company Core Technologies

Data Analytics &AI

Connectivity &Edge

Simulation &Digital Twins

Software Systems &Processes

Automation

Cybersecurity& TrustSustainable Energy &Infrastructure

Additive Manufacturing &Materials

Power Electronics

User Experience

Integrated Circuits &Electronics

SIEMENS SUSTAINABILIT Y REPORT 2021

34

1.7 Research and development

Continued high investment in R&D 1

We are also working closely with scientists from

In fiscal 2021, we reported R&D expenditure of­leading universities and research institutions, not€4.9 billion, compared to €4.6 billion in fiscal 2020.

only under bilateral research cooperation agreements,

The resulting R&D intensity, defined as the ratio of

but also in publicly funded collective research p­ rojects.

R&D expenditure to revenue, was 7.8 %, compared

Our focus here is on our strategic research partners,

to 8.3 % in fiscal 2020. Additions to capitalized de-especially the eight Centers of Knowledge ­Interchange

velopment expenses amounted to €0.3 billion, com-

(CKIs) we maintain at leading universities worldwide.

pared to €0.4 billion in the previous year. As of

With the Siemens Research and Innovation Ecosystem

September 30, 2021, Siemens held approximately(RIE), newly launched on 1 October, 2021, Siemens

43,400 granted patents worldwide in its continuing

wants to address the challenges of today with tech-

operations and had an average of 42,500 R&D employ-nologies of the future in a collaborative manner.

ees, compared to 40,900 patents and 40,800 R&D
employees in fiscal 2020.

Aligned with the Siemens technology portfolio, we
work closely with the research excellence in these
dedicated ecosystems and focus on broader regional€ 4.9 billion
R&D expenditure FY 2021

opportunities.
Siemens’ global venture unit, Next47, provides capitalto help start-ups expand and scale. It serves as thecreator of next-generation business for Siemens by

We are further developing technologies on the basis

building up, acquiring, or partnering with start-ups atof our open innovation concept. In 2021, an external

any stage in their development. Next47 focuses on­platform was added to the originally in-house plat-

anticipating how technologies will impact our ­markets.

form of the Siemens Innovation Ecosystem (SIE). This

This knowledge is enabling Siemens and Siemens’ cus-

platform enables many in-house and external teams

tomers to grow and thrive in the age of digitalization.

to work ­together with partners, customers, suppliers,

ANNUAL FINANCIAL REPORT 2021 COMBINED MANAGEMENT

universities, and other experts in a global network ofknowledge and inspiration. July 2021, for example,
saw the start of the Tech for Sustainability campaign,in which research into new technologies for a moresustainable future is broken down into fields of application. The SIE is currently used by more than
30,000 registered users.
1

FY 2021 figures inclusive Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021

35

REPORT 4.3 RESEARCH AND D­ EVELOPMENT

Page 36 – 46

Our sustainability
management

SIEMENS SUSTAINABILIT Y REPORT 2021

36

2.1 Materiality assessment

2.1

Materiality assessment– Materiality assessment updated on the basis

materiality assessment, we were able to prioritize theof external frameworks and dialog with

relevant sustainability topics, which were discussed

stakeholders– Material sustainability topics identified andBoard. The material topics form the framework for thewith and confirmed by our S­ iemens Sustainability

grouped with an emphasis on shared values

implementation and accelerated advancement ofand responsibility

sustainability within the company – at the central– Material sustainability topics applied ascorporate level, in our business units, and in theguiding principles for the DEGREE ­framework

countries where we operate. Our DEGREE frameworkis the visible outcome of this work. ­Siemens strives
to continuously improve sustainability management

Key topics as guiding principles

and understands the materiality assessment to be aprerequisite for process management in order to

Our materiality assessment is based on external

identify and manage potential opportunities and risks.

frameworks such as the UN Global Compact and the

The Siemens business units derive their key action

Standards of the Global Reporting Initiative (GRI),

areas from the DEGREE framework with due regard

which form the basis for our reporting. The key topics

to the requirements and basic conditions of their local

in our report are structured on the basis of ESG issues

markets.

(ESG = Environment, Social, Governance). Moreover,
the ongoing dialog with external and internal

Identification and prioritization of topics

stakeholders plays a key role in the materiality process.

Material topics are selected on a step-by-step basis.

These stakeholders particularly include investors,

The list of potentially relevant sustainability topics

customers, suppliers, our people, communities,(approx. 100) was based on extensive research of­policymakers, media, nongovernmental organizations,ratings, rankings, and peers. The subsequent short-­

business associations, and academic ­institutions.

listing was conducted in workshops. Afterward, three

Updating of the materiality assessment

perspectives were evaluated in expert workshops andin interviews with internal and external stakeholders.

We updated our materiality assessment with anemphasis on Smart Infrastructure, Digital Industries,→ Stakeholder perspective:

and Mobility in fiscal 2021. The resulting topics

This perspective refers to sustainability topics thatlargely match the material topics of Siemens

are deemed to be material by external stakeholders

Healthineers, which were determined as part of ansuch

independent materiality assessment. The goal was togovernment officials, and NGOs, as well as internal

identify the key economic, ecological, and social

stakeholders (stakeholder relevance). The

ascustomers,

investors,

suppliers,

topics for Siemens in accordance with the GRI

most material topics from the perspective of ourStandards. To this end, we consulted relevant

stakeholders are sustainable product design andstakeholders and viewed the impact from an inside-

life-cycle management and climate protection,out perspective. We also considered the outside-in

and therefore also social and ecological standards

impact (double materiality). With the aid of the

SIEMENS SUSTAINABILIT Y REPORT 2021

37

2.1 Materiality assessmentin the supply chain, as well as corporate governance

Shared-value and responsibility topics

and sustainability leadership.

The material sustainability topics were then groupedin accordance with the shared-value and responsibility→ Inside-out perspective:

approach.

This perspective refers to sustainability topics thatcan be positively or negatively influenced by the

Shared values are associated with social progresscompany’s

businessand business value. Companies need to make arelationships,

andactivities,business
services

positive contribution to society in order to maintain(sustainability relevance). The most material

their “social license to operate.” Shared-value topics

products

andtopics in which Siemens can exert the greatest

are those for which we want to create added value

influence on society and the environment arethrough our activities, products, and services; our rolesocial and ecological standards in the supply chain,

as thought leaders; and our corporate citizenshipclimate protection, and sustainable product design

activities; and by meeting key systemic challenges toand lifecycle ­management.

the benefit of society. At the same time, we strive toseize business opportunities for Siemens.

→ Outside-in perspective:
This perspective refers to sustainability topics that

Responsibility refers to material topics for which we

can be associated with opportunities and risks ofbear the responsibility to prevent material negative

the company’s business activities or financial

impacts on people, society, or the environment in oursituation (business criticality). The mostbusiness activities. Such impacts could also present

material sustainability topics from the perspective

a potential financial or reputation risk for our businessof the influence on our business activities and theactivities.

generation of lasting value are climate protection,
life-cycle

Our material sustainability topics are clearly linked to

management, and social and ecological standards

the Sustainability Development Goals (SDGs), ourin the supply chain.

four strategic priorities and our DEGREE framework.

sustainableproduct

designand

STRATEGYAs the result of our materiality assessment, we haveidentified 15 material sustainability topics of greatest

The linkage of the material sustainability topics to therelevance to our stakeholder groups and of greatest

GRI can be found here:

importance for their sustainability impact and impact
on Siemens. We plan to conduct the materiality­assessment at least every five years.

SIEMENS SUSTAINABILIT Y REPORT 2021

38

ANNEX GRI INDEX

2.1 Materiality assessment

Material sustainability topics are clearly linked to the Sustainability Development Goals (SDGs)
and our four strategic priorities and served as basis for our DEGREE framework.
Sustainability topics

SDGs

STRATEGY

Strategic
priorities

DEGREE

Climate protection 1

D ECARBONIZATION

Sustainable product design andlife-cycle management 1

R ESOURCE EFFICIENCY

Shared Values

Innovation and business model 2

D ECARBONIZATIONR ESOURCE EFFICIENCY

Partner management and collaboration 2

D ECARBONIZATIONG OVERNANCE

Responsible governance 2

G OVERNANCE

Future of work 2

E QUIT Y
E MPLOYABILIT Y

Dimension

Sustainable handling of natural resources
and material efficiency 2

R ESOURCE EFFICIENCYSocial and ecological standards inthe supply chain 1

G OVERNANCE

Cybersecurity and data management 2

E THICS

Responsibility

Employee health and safety 2  E MPLOYABILIT Y

Diversity, equity & inclusion 2

E QUIT Y

Customer safety and product quality 2

G OVERNANCE

Corporate governance andsustainability leadership 2

G OVERNANCE

ESG risk management 2

G OVERNANCE
E THICS

Compliance management 2

G OVERNANCE
E THICS

1 Top 3 material sustainability topics.
2 12 additional material sustainability topics.
Result of the assessment of organizational impacts (inside-out, i.e., on the environmentand society), stakeholder relevance and business criticality (outside-in)

SIEMENS SUSTAINABILIT Y REPORT 2021

39

TECHNOLOGY WITH PURPOSECUSTOMER VALUESTRENGTHENING AND EMPOWERING PEOPLEGROWTH MINDSET D EFINITION OF THE MATERIAL TOPICS – BUNDLED ACCORDING TO SHAREDVALUE AND RESPONSIBILIT Y

2.2 Sustainability governance and organization

2.2

Sustainability governanceand organization– The Sustainability Board is the central steer-

More detailed information on the structure and re-ing committee for the ongoing strategicsponsibilities of the Managing Board and Supervisory­development of sustainability– Business and country CEOs are responsiblefor implementing sustainability policies– ESG criteria are included in the compensa-

Board can be found in management’s Corporate
Governance Statement in our

ANNUAL REPORT .

tion system for members of the Managing

Clear organizational structure andresponsibilities

Board and senior managers

All strategic sustainability activities are overseen by
our Chief Sustainability Officer (CSO). The CSO is amember of the Siemens Managing Board and chairs

Sustainability management is a company-wide effort

the Siemens Sustainability Board (SSB), which consiststhat derives from our corporate purpose. It is at theof representatives of the businesses, countries, andheart of everything we do. Sustainability is firmly

units with governance responsibilities (technical androoted within our organization and has been an­

professional functions).

­integral component of management compensation
since fiscal 2020.

The SSB is the central steering committee for theFoundation: corporate governancestrategic development of sustainability at Siemens,
and makes decisions regarding key sustainability

The cornerstone for sustainability-based corporate

matters. Where necessary, the Managing Board

management

addresses

iscompliancewithrecognizedsustainability-related

risks

and

principles of corporate governance. Siemens AG is

opportunities of strategic and company-wide

governed by German corporate law, under which it

importance, and adopts appropriate measures. For

has a two-tier board structure consisting of aexample, it was the Managing Board that adopted theManaging Board and a Supervisory Board. As the top

DEGREE sustainability framework in fiscal 2021. The

management body, the Managing Board is obligated

SSB motivates and supports the organization in taking

to serve the company’s best interests and achievesustainability aspects into account when making

sustainable growth in company value. The members

business decisions. At quarterly meetings, the SSBof the Managing Board are jointly responsible for the

discusses and hones its focus on strategic sustainability

entire management of the company and decide on

topics, such as CO2 reduction, the framework for ESG

basic issues of business policy and corporate strategy,

and human rights risks, and nonfinancial reporting,as well as single-year and multiyear planning. The

as well as rankings and ratings. The board adopts

Supervisory Board oversees and advises the Managing

relevant sustainability measures and initiatives orBoard in its management of the company’s business.

submits recommendations for action to the Managing

At regular intervals, the Supervisory Board discusses

Board. During fiscal 2021, the SSB decided on mattersbusiness development, planning, strategy, and thesuch as the SBTi commitment, putting the DEGREE

implementation of that strategy.

sustainability framework into operation, and amateriality analysis to serve as the basis for thefurther pursuit of sustainability.

SIEMENS SUSTAINABILIT Y REPORT 2021

40

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

Sustainability Board
Businesses

Chair: CSO

Units withgovernanceMembers:› Businesses› Countries› Units with governanceCountries

Sustainability Department

Functional
governance

Sustainability
implementation

The Siemens Sustainability Director heads theSustainability
governance­systems, they must also take account of business

Sustainability Department and supports the CSO in

opportunities and business risks that relate toperforming his or her duties. In this capacity, thesustainability. They also set the targets for strategic

Sustainability Director reports to the CSO and is asustainability activities in their sphere of responsibility.

member of the SSB. The Sustainability Department
monitors trends in sustainability, analyzes the

In their implementation work, the CEOs of the various

potential impact on Siemens, prepares decisions forbusinesses

initiatives and pilot projects, provides support with

Sustainability Managers, whom they appoint. These

their implementation, and promotes efforts by the

Sustainability Managers maintain close contact withandcountries

aresupportedby

SSB to anchor new sustainability topics within thetheir colleagues and the Sustainability Department.

company.

They also organize a network of sustainability experts
with the aim of ensuring that all sustainability

The CEOs of businesses and countries are responsible

measures and initiatives are implemented within thefor implementing sustainability within the Group.

units. All units with governance functions areThis responsibility includes taking sustainability

additionally responsible for the company-wide

aspects strategically into account all along the value

implementation of sustainability aspects within theirchain within their organizations’ business activities.

spheres of responsibility. They analyze new

In all their decisions, strategies, processes, andsustainability requirements specific to their markets

SIEMENS SUSTAINABILIT Y REPORT 2021

41

2.2 Sustainability governance and organizationand customers, and are in charge of implementing

The ESG indicators reflect relevant strategic and socio-

guidelines, management systems, and strategic

political topics. For the Stock Awards Tranche 2021,

programs, as well as long-term targets and KPIs. They

which was awarded in November 2020, these indica-

report on their activities in the Siemens Sustainability

tors are reduction of CO2 emissions, digital learning

Report.

hours per employee, and the Net Promoter Score (NPS)

Sustainability reflected in managementcompensation
In fiscal 2019, the compensation system for members

for measuring customer satisfaction. As well as for themembers of the Managing Board, these criteria areapplicable analogously for all senior managers g­ lobally
who are eligible for Stock Awards.

of the Managing Board was reviewed in depth andrevised further; it was then endorsed by a large major-

Additional sustainability matters, including succession

ity at the Annual Shareholders’ Meeting in February

planning, sustainability/diversity, and employee

2020. As part of the refinement of the system, a focus

satisfaction, are also defined as individual targets forwas established for sustainability aspects. As part ofshortterm variable compensation (bonuses).

the long-term variable component of compensation(Siemens Stock Awards), alongside a comparison of

To link compensation more firmly to long-term growth

total shareholder return (TSR) against an international

and performance of the company, the level of the long-index (the MSCI World Industrials Index), a second

term variable component of compensation was raised;performance criterion was introduced, in the form of

it now ranges from a minimum of 30 % to a maximum

an internal ESG/Sustainability index, weighted at 20 %,of 42 % of target total compensation.

with three equally weighted indicators.

REPORT 2021

COMPENSATION

CO2 Emissions

Digital learning hours
per employee

Net Promoter Score (NPS)

Amount of greenhouse gases

The total number of digital learning

Customer intention to recom-

emittedcompany’s

hours completed in virtual trainer-

mend us, measured on a scale ofbusiness operations in tons of CO2

led training sessions, self-paced

1 (extremely unlikely) to 10 (ex-equivalent, excluding carbon off-

learning, learning on the job,tremely likely). NPS is defined as thesets (for example, certificates).

community-based virtual learning,

number of promoters (%) minus

andthe number of detractors (%).

by

the

hybridtraining

sessions

divided by the total number of
employees.

SIEMENS SUSTAINABILIT Y REPORT 2021

42

2.3 Partnerships and collaborations for sustainability

2.3

Partnerships and collaborations
for sustainability– Close networking and cooperation with our
stakeholders

Our new DEGREE sustainability framework is also
founded on dialog with our customers, investors,– Partnerships are key to sustainable development and business success– Siemens is an active member of numerous
business associations and organizations

suppliers, and our people, and with society at large,
and on acknowledging the impact our business hason the planet. This new framework thus represents a
360-degree stakeholder approach.

In dialog with politics and society
As a company that operates globally, we partner in a

As a global company, we work with our customers tovariety of ways with a very diverse set of players. Ourfind innovative solutions to some of the most pressing

efforts here are in line with SDG 17, which calls for aissues facing the planet. For that reason, dialog withrevitalized, strengthened global partnership thatpolicymakers is intrinsic to our social responsibility,

brings together governments, civil society, the private

and is of tremendous importance to our success as asector, the United Nations, and other entities.

company. We base the priorities of our political activities
on our business strategies and innovation fields.

Only by collaborating closely with stakeholder groups
can we make serious progress on complex andOur advocacy activities focus on the following topics

intertwined sustainability challenges such as

and policy areas, among others: cybersecurity,environmental concerns. We maintain a constantdigitalization (including Internet of Things / IoT anddialog for that purpose with investors, customers,

artificial intelligence, or AI), decarbonization andsuppliers, our people, communities, policymakers,

climate change action, energy, R&D, and trade

media, nongovernmental organizations, business

policy, as well as connected and automatedorganizations, and academia. Our management and­m obility for rail and road. We have joined forces

the relevant specific units with governance functions

with leading companies from around the world toare in charge of this task. For example, overall

establish t­ he Charter of Trust, which aims to makeresponsibility for dialog with policymakers lies with

thethe Managing Board of Siemens AG. Within the(digital

world

safer

and

more

secure HT TPS://WWW.CHARTEROFTRUST.COM/ ).

various business units, the unit’s CEO is responsible
for coordinated dialog. The Managing Board has

Furthermore, we support the goal of achieving atasked the Government Affairs Department withcarbon-neutral Europe by 2050 – announced as part

performing the necessary coordination duties andof the European Green Deal – through a variety ofhas given it the powers it needs for the purpose.

commitments, including our active memberships in
the European Alliance to Save Energy (This engagement with our stakeholder groups creates

NET/ ) and the

HT TPS://EUASE.

EUROPEAN GREEN DIGITAL COALITION .

value on all sides of the equation through exchangesof knowledge and information, as well as throughAs part of the European Green Deal, “fit for 55” is an

creative partnerships. It helps us improve business

important – and tangible – step toward the goal of

conditions and reduce both external and internal risks.

reducing carbon emissions by 55 % until 2030 and

SIEMENS SUSTAINABILIT Y REPORT 2021

43

2.3 Partnerships and collaborations for sustainability

achieving complete climate neutrality by 2050. The

We also work closely with the Organization forproposed measures establish conditions under which

Economic Cooperation and Development (OECD), thecompanies can now make long-term plans. A fair andUnited Nations, the European Union, and the World

reasonable carbon price will accelerate the embrace

Economic Forum (WEF). We are involved in variousof low-carbon technologies, and should thus extend

initiatives of the WEF, such as the Partnering Against

to as many sectors as possible so as to encourage theCorruption Initiative (PACI).

transition to a carbon-neutral economy. Siemens willcontinue to do its part here – because we have theWe cooperate as well with the United Nations, fornecessary technologies and knowledge to reduce CO2

instance as part of our commitment to the Tenemissions and energy consumption, and to conserve

Principles of the United Nations Global Compact

resources.

(UNGC). When it comes to environmental issues, we
support the United Nations Framework Convention

Our political involvement is guided by firm principles.

on Climate Change (UNFCCC) and the UN climate

We are politically neutral and take a zero-tolerance

conferences, plus we are actively involved in the CEO

approach to corruption, violations of fair competition

Water Mandate. Furthermore, we have joined theprinciples, and other breaches of applicable law andWorld Bank’s Carbon Pricing Leadership Coalitioninternal regulations. Siemens does not make political(CPLC), and we advocate for the global introduction

donations and contributions (donations to politicians,of carbon pricing. We are additionally committed topolitical parties, or political organizations). All

the UNGC Women’s Empowerment Principles andcontributions that support purely political purposes

have signed the Diversity Charter, an initiative by theor the representation of political interests, such as

German government.

election events for political campaigns, are prohibitedby our internal guidelines.

Engagement in associations andorganizations

For years, we have supported One Young World(OYW), a nonprofit organization that champions
young business leaders around the globe in order tobuild a better world with more responsible, more

In addition, Siemens is a member of numerous

effective leadership. At the 2021 OYW Summit inbusiness associations and similar organizations, someMunich, we celebrated ten years of our CEOs’ involve-of which advocate for their members’ interests in thement with the organization.

political arena. Selected examples of the mostimportant memberships in our three core markets(the European Union, the United States of America,and China) are: the International Chamber ofCommerce (ICC), the VDMA (Verband Deutscher
Maschinen- und Anlagenbau e.V.), the German
Electrical and Electronic Manufacturers’ Association(ZVEI), the U.S. Chamber of Commerce, and theEuropean Chamber of Commerce in China (EUCCC).
More information on political activities at Siemens
can be found here:

HT TPS://NEW.SIEMENS.COM/GLOBAL/

EN/COMPANY/ABOUT/CORPORATE-FUNCTIONS/GOVERNMENTAFFAIRS.HTMLSIEMENS SUSTAINABILIT Y REPORT 2021

44

2.4 Sustainability ratings reflect our performance

2.4

Sustainability ratings
reflect our performance– Our engagement is recognized in a numberof ratings and rankings– This helps continuously improve our sustainability performance– It also strengthens the Siemens brand andenhances the satisfaction of our people

1. Markets and customers increasingly want
information about ratings and rankings, andthey’ve begun requiring these assessments aspart of their contract terms.
2. More and more investors are developing theirown ratings and rankings to assess companies’
sustainability performance.
3. We want to be able to benchmark ourselves

Our commitment to sustainability is widely recognizedagainst peers and competitors so we canin a variety of significant ratings and rankings. This

introduce the right steps for improvement andrecognition corroborates the wisdom of ourdetect important trends in sustainability.

sustainability strategy, and at the same time it also

4. Strong performances in relevant, acknowledged

provides us with a yardstick for continuous

ratings strengthen the ­Siemens brand andimprovement.

enhance the satisfaction of our people.

We actively involve ourselves with external ratings
and rankings as a way of measuring our performanceagainst similar companies and competitors. There are
four reasons why this engagement is important to us:

SIEMENS SUSTAINABILIT Y REPORT 2021

45

2.4 Sustainability ratings reflect our performance

Siemens’ sustainability performance has received recognition in external ratings and rankings

AA

PRIME

28.4

A–

Constant leader for
five years (AAA / AA)

Prime status in
ESG Corporate
Ratings since 2016

5th in our industry
with strong management of ESG risks1

Over 10 years at­leadership level(A / A-) in Climate
Change61

57

Silver recognition level andas such within the leading
companies in our industry(top 25 %)Constituent of the­V igeoEiris EUROZONE
120 index since 2020

81
pointspointspoints#1 in our industry, morethan 20 years
in the World
Index (top 10 %)Part of the
FTSE4Good Index family

pointsRating highlights

Innovation
management

Customer relationshipmanagement

Cybersecurity
program

1 High risk exposure is in line with the industry average.

SIEMENS SUSTAINABILIT Y REPORT 2021

Green products andservice / ecodesign

46

Environmental
management system

Compliancemanagement system

Page 47 – 72

Governance
Responsible Business
Practice

EthicsGovernanceFoster a culture of trust, adhere to ethical

Apply state-of-the-art systems for effective andstandards, and handle data with care

responsible business conduct

Our key ambitions:

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

Business Conduct Guidelines every three years

commitment to the Supplier Code of Conduct→ Long-term incentives based on ESG criteria1

Additional topics:→ Zero-tolerance approach to breaches ofapplicable laws and our own internal
guidelines

Additional topics:→ Focus on human rights: climate protection,
occupational safety, and responsible→ A global, risk-based compliance system→ Aiming for a leading role in cybersecurity

sourcing of minerals
Digital ESG Risk Due Diligence Tool
→ ­(ESG Radar)1

 ssessment based on Siemens-internal ESG-/sustainability Index, based on customer satisfaction
A(Net Promoter Score), CO2 reduction, training hours.

SIEMENS SUSTAINABILIT Y REPORT 2021

47

3.1 Compliance

3.1

Compliance– Zero-tolerance approach to breaches of appli-

Our compliance organization contributes in particular

cable laws and our own internal guidelines

to the achievement of the UN’s Sustainable– A global, risk-based compliance system

Development Goal (SDG) 16, “Peace, Justice and– All our business activities are guided by ourStrong Institutions.” That goal includes a call forvalues: “responsible – excellent – innovative”

companies to dramatically reduce corruption andbribery in all their forms.

and other breaches of applicable laws and of theWorldwide commitment tofighting corruption

values laid down in our Business Conduct Guidelines

Beyond our company’s borders – and in collaboration(BCGs). If violations do occur, we respond consistently

with other international and national organizations –Siemens takes a zero-tolerance approach to corruption

and vigorously following defined procedures. But

we’re committed – including as part of our Collective

compliance means more than just complying with

Action activities – to fighting corruption andlaws and internal regulations: It’s the foundation ofpromoting fair competition in our markets

all our decisions and activities, and the key to integrity

THE SECTION ON “COLLECTIVE ACTION” BELOW . Part of that

SEE ALSO

in business conduct. Our premise is this: Only clean

engagement is our commitment to the United

business is Siemens business. This applies worldwide

Nations Global Compact (UNGC) and our involvement

and at all levels of the organization. At Siemens,in the World Economic Forum and its Partnering

standing up for integrity means that everywhere we

Against Corruption Initiative (PACI). In addition, we

do business, we act in accordance with our values:

actively support the United Nations Convention

responsible – excellent – innovative. And we’ve also

against Corruption and the Anti-Bribery Convention

anchored that approach in our new DEGREE frameworkof the Organisation for Economic Cooperation andunder “E” for “Ethics.”

STRATEGY

AT A GLANCE

Development (OECD), and we have been supporting
their implementation for years as part of Business 20(B20). The Ten Principles of the UNGC, along with theother guidelines, are a foundation for our company-

Zero-tolerance approach tobreaches of applicable law and ourBusiness Conduct Guidelines

SIEMENS SUSTAINABILIT Y REPORT 2021

48

wide work in this domain and are also enshrined inour code of conduct: the Siemens BCGs that provide
direction for all our activities.
GUIDELINES

BUSINESS CONDUCT

3.1 Compliance

Siemens and its roughly 303,000 employees operate

and the general public. They also serve as anin many different countries throughout the world

expression of our values and lay the basis for detailed

with customers in both the private and public sectors

internal regulations. The BCGs are binding for allthat serve a vast array of industrial sectors. Our global

Siemens employees around the world.

business operations are governed by numerous

BUSINESS CONDUCT GUIDELINES

national legal systems and a variety of political, social,and cultural settings, which are constantly changing.

Our compliance system is designed to ensure that our

Accordingly, the environment where Siemens

business practices worldwide comply with these

conducts its business, and thereby carries out its

guidelines and follow applicable laws. To attain thatcompliance activities, is correspondingly complex.

goal, the system is based on three pillars – prevent,detect, and respond – and covers the activity fields

The Siemens compliance systemanti-corruption, anti-money laundering, antitrust,

Our BCGs contain the fundamental principles andCollective Action, data privacy, export control, andrules for our conduct, both within Siemens and in ourhuman rights.

HUMAN RIGHTS and

DATA PRIVACY

relationships with our customers, external partners,

Siemens compliance system
Prevent
Vorbeugen

ndgie
pRoea

e n e te
ne ct
n

Res

Management
responsibility
Verantwortung desManagements

re

D

n

Er

k

Activity fields
Korruptionsbekämpfung

Kartellrecht

Datenschutz

Menschenrechte

Anti-Corruption

Antitrust

Data Privacy

Human Rights

Geldwäscheprävention
Anti-Money Laundering

SIEMENS SUSTAINABILIT Y REPORT 2021

49

Collective Action
Collective Action

Exportkontrolle
Export Control

3.1 CompliancePreventive measures include compliance risk

To obtain feedback directly from Siemens employees,

management, preparing of topic-specific guidelines

regular survey questions are conducted on the topic

andcomplianceof integrity within the Siemens Global Employee

requirements into our business processes, andprocedures,

incorporating

Survey (SGES). The surveys are held annually on

providing comprehensive training and advice for ourselected integrity topics. The results from this fiscal

people. Channels for reporting compliance violations –year show a continuous positive trend in the entire

such as the “Tell Us” whistleblower system and theorganization’s perception and awareness of integrity

Ombudsperson as well as professional and fairand responsible business conduct. The next survey isinvestigations – are indispensable for recognizing andscheduled for fiscal 2022.

completely

resolving

mattersofmisconduct.

Unambiguous responses and clear consequences

Compliance risk management

serve to punish misconduct and eliminate weaknesses.

To be effective, the Siemens compliance system

To ensure that our compliance system is put into

needs to be continuously adjusted in order to meetaction and meets our requirements, our internal audit

business-specific risks and multiple local legal

department continuously performs compliancerequirements. The findings from compliance risk

controls and audits.

management, as well as compliance controls andaudits, serve as a basis for deriving measures to

One of the key components of this compliance systemfurther develop the compliance system.

is our managers’ responsibility. That is why the global
Legal and Compliance department is directly assigned

The goal of compliance risk management is to detectto the Chairman of the Managing Board as acompliance risks at an early stage and take appropriate

governance function. Our Chief Compliance Officer

steps to prevent or mitigate risks. Risk assessment isdelivers quarterly reports directly to the Managing

also integrated into individual business processes andBoard and Supervisory Board of Siemens AG.

tools that evaluate risks in any given business

The global compliance structure combines strong

Thus, compliance can make an important contribution

Group-level governance with the work of qualified

to achieving our corporate goals.

decisions and take appropriate risk mitigation steps.

compliance officers who ensure that the compliancesystem is implemented worldwide. They work closely

Compliance risk management is an integral part ofwith employees and managers, who assume personal

theresponsibility for compliance within their respective

Management (ERM) programbusiness units.

company-wide

Siemens

Enterprise

Risk

ANNUAL REPORT 2021

8.3.1 CHAPTER RISK , which creates a holistic view of all

identified risks throughout the Group. Each entity and
The entire management team has to act on oureach region assess its business risks in relation tocommitment to compliance and ensure that allcompliancebusiness decisions and transactions that fall within

systematically also evaluated.

risks.

Current

developmentsaretheir area of responsibility comply with both therelevant legal requirements and our own values andIn close collaboration with the relevant businesses,

company guidelines. Siemens managers demonstrate

the early identification and assessment of thea strong commitment to compliance. Compliance andcompliance risks involved in new digital businessintegrity are therefore deeply anchored in ourmodels are a core part of our risk management process.

corporate culture.

SIEMENS SUSTAINABILIT Y REPORT 2021

50

3.1 Compliance

Additional information from internal data sources is

In fiscal 2021, we’ve also defined our long-term

included in order to provide a holistic overview ofcompliance priorities. The priorities are constantly

compliance risks. Cross-functional exchange at

evolving, so we can work from a reliable, long-term

regular meetings and an annual Corporate Compliance

perspective when developing our compliance efforts.

Risk Workshop also makes it possible to identify and

These priorities are supplemented by focus areas andmonitor emerging or changing risks. The results ofspecific activities for each fiscal year, and they

the risk assessment are therefore a key starting point

continued to guide our work in fiscal 2021. Every

for the ongoing development of our compliance system.

compliance employee is actively encouraged andcommitted to the fulfillment of our priorities.

Compliance priorities in fiscal 2021
Our compliance priorities are the foundation for theCompliance training

continuous development and improvement of our

To ensure that compliance and integrity are deeply

system. We keep a close watch on the ever-evolving

anchored in the organization, both Siemens

requirements in the compliance environment andemployees and the Compliance department receive

strive to fulfill them. Among the challenges in thistargeted, group-oriented, risk-based training on

regard are changes in market conditions and in thecompliance topics.

compliance risks of our business activities.

Compliance priorities
Foster integrity
Support business management to meet its
responsibilities for compliance and further
strengthen the culture of integrity in ourcompany and beyond.

Committed to businessco

Provide an excellent complianceteam through a first-class learningand development landscape andclose collaboration.

SIEMENS SUSTAINABILIT Y REPORT 2021

51

Culture ofownershipti
ec s
Eff ces
o
r
p

ve
es

Commi
t
to busi ted
ne
ss

E

xc
m e llete p l i a n t
am nceExcellent compliance teamContinue providing our businesses withthe appropriate level of assurance within
our compliance system.

Fosterintegrity

e risknagnce
Ma assuradanFurther intensify cooperation
between the compliance organization and our businesses andreinforce our compliance system’s
market and customer focus.

Manage risk and assurance

pliance priorities
Com

Effective processes
Continue to further optimize
and streamline our compliance
processes.

3.1 Compliance

Compliance training for the Siemens organization

In addition, Siemens employees around the worldemphasizes three core aims:

completed about 374,000 training programs for
specific target groups in fiscal 2021. 1

1. To impart values and raise awareness of fundamental compliance issues among all employees
2. To convey in-depth specialized knowledge tomanagers and specific target groups
3. To provide additional materials on all relevant
compliance topics

New target for BCG training
As part of the new DEGREE framework, Siemens has
expanded the existing training target to include thegroup of employees without online access. In the
future, we plan to train all employees on the BCGs incampaign cycles that run for three years each (without

Employees learn about the compliance activity fields

SHS). The current cycle covers the fiscal years fromthrough programs such as mandatory web-based2020 to 2022.

trainings on the contents of our BCGs. In addition to
the mandatory training courses, there are also

Within the current cycle, we have trained 76 % of ouradditional training materials that can be used for

employees worldwide on the BCGs.

specific target groups; these are available on the
global learning platform. Because of the global

Starting fiscal 2022, we are planning to provide

coronavirus pandemic (COVID-19), many of thein-person training for employees who until now

classroom training sessions were converted to

couldn’t be included in Siemens’ internal IT system

virtual formats in fiscal 2021 in order to maintainfor training. Annual face-to-face training sessions will
be held at every production site worldwide. We aim

training continuity.

to ensure that every employee receives training
The BCG training was rolled out to around

during the campaign’s recurring three-year cycle, in

77,000 employees worldwide, and 72,000 of themkeeping with the new DEGREE target. No in-person(approximately 93 %) successfully completed thesessions were held during the past two fiscal years

training by the end of fiscal 2021. 1

because of worldwide COVID-19 restrictions.
For the third year of the campaign cycle, this meansthat in order to reach our goal to train employees at

181,000

since the start of the campaign, 181,000

employees were trained on the contents of
the Business Conduct Guidelines
1

This figure includes Siemens Healthineers employees.

our production facilities, fiscal 2022 remains for thetarget achievement. 2 In fiscal 2023, a new three-year
cycle will begin and will comprise annual trainings
both in person and online.
Moreover, integrity dialogs are conducted every year.
In this initiative managers have an opportunity to
discuss current compliance issues with their teams aswell as to specifically communicate and inform about
selected compliance topics.

2 Occasionally employees may not be able to take part in the available
in-person formats over the coming year because of illness or vacation.

SIEMENS SUSTAINABILIT Y REPORT 2021

52

3.1 ComplianceTraining programs are planned and initiated according

Both business partners and suppliers are required toto regional conditions. A learning management

sign a predefined code of conduct. In addition,system helps track mandatory trainings for the

depending on the risk classification, audits can be

defined and regionally specified target groups, andcarried out at the business partners’ premises by thethe completion of training requirements is regularly

Siemens audit function or external service providers.­

reported to the management of the respective unit.

CHAPTER 3.3 SUPPLY CHAIN

trainers with the educational and content-related skills

Early detection of warning signs ofmoney laundering

they need for the various compliance training courses.

Siemens has a declared goal of doing business only

Because of the ongoing pandemic, this concept waswith reliable customers, business partners, and other

implemented virtually again fiscal 2021.

third parties. That’s why we perform risk-based checks

A comprehensive train-the-trainer concept equipsof our business counterparts’ identity and financial

Collaborations with business partners

backgrounds as well as the origin of their payments inUnder certain circumstances, Siemens can be heldorder to ensure that payments come from legitimate

liable for the illegal activities of certain third parties

sources. To help our employees better detect and(such as business partners acting as intermediaries,

identify money-laundering risks, we regularly holdresellers, and consortium partners), whom we referawareness trainings all over the world. Whereto as business partners. Transactions with Siemens

necessary, Siemens reports suspicious matters to the

could be misused to gain undue advantages for the

responsible authorities.

business partner, or for Siemens.
To provide focused support for our business, risk-­
Each Siemens unit is responsible for its own businesstriggering warning signals were revised and further

partners. They must be carefully selected by thedetailed in fiscal 2021.

responsible operational unit and must undergo a riskneeds to be adequately monitored for the duration

Compliance indicators andwhistle-blowingof the business relationship; in other words, the need

At Siemens, we offer all employees and external thirdfor the relationship and performance, taking into

parties protected channels through which they canaccount remuneration, is regularly reassessed. We

report violations of external and internal rules. Reports

have established mandatory processes and related

made through these channels are forwarded to ourbased compliance due diligence process. This process

tools for this purpose that are continuously refinedcompliance organization and are monitored. Possible

to cover risks that arise.

misconduct can also be reported directly to thecompliance officers in the individual business units

Decisions about engaging a business partner areor to management. Our employees make use of thesetransparent and risk-oriented, and are based on thereporting channels regularly. In fiscal 2021,

most recent compliance due diligence procedures.

394 compliance cases were reported that required

Appropriate remediation measures are initiatedfurther inquiry or investigation. We believe that thedepending on the risk classification of the businessincrease in cases from 332 in fiscal 2020 is within arelationship and the risks identified.

normal fluctuation range when taking the COVID-19

SIEMENS SUSTAINABILIT Y REPORT 2021

53

3.1 Compliancepandemic into account. The total number ofdisciplinary measures for compliance violations infiscal 2021 was 121 (188 in fiscal 2020).

Collective Action and the ­Siemens Integrity Initiative
If substantial progress is to be made in combating
corruption and fostering fair competition, large

The number of disciplinary measures in a fiscal year

numbers of stakeholders must act collectively. The

doesn’t necessarily reflect the number of complianceglobal Siemens Integrity Initiative earmarks morecases reported in the same period. Frequently,

than US$100 million to support organizations anddisciplinary action isn’t taken in the year in which the

projects that combat corruption and fraud throughunderlying cases were reported or the investigation –Collective Action, education, and training. The

which follows a careful procedure – was completed.

Siemens Integrity Initiative focuses on supporting

A compliance case may also result in multiple

projects that have a clear impact on the businessdisciplinary actions or none at all.

environment, can demonstrate objective andmeasurable results, and have the potential to beCompliance indicators 1

scaled up and replicated.
Fiscal year
2021

2020

Building upon the Third Funding Round from 2018,

Compliance cases reported

394

332

in December 2020 we invited short-listed partners to

Disciplinary sanctions

121

188

submit applications for additional support, adhering

therein warnings

62

90

to the published criteria for application and selection.

therein dismissals

49

63

A team of experts from various disciplines and regions

therein other²

10

35

1 Continuing and discontinued operations
2 Includes loss of variable and voluntary compensation components, transfer,and suspension

We believe that the evidence demonstrates that our

carefully reviewed the projects, presented them to
the Siemens Steering Committee for approval, andthen introduced them to the World Bank for what’s
known as the “non-veto” process and to the European
Investment Bank for information.

compliance system is well-designed and effectively
implemented. Due to the nature of our business

In July 2021 we announced the eight additional new

operations, the environments where we work, andprojects that will be funded for three years beginning

our wide range of different geographic regions, weJuly 1, 2021, each for a total of up to US$20.5 million

don’t regard the number of incidents as unusual.

and with activities in more than 27 countries.

More information on significant ongoing and futurecharges of corruption, antitrust violations, and otherviolations of the law can be found in

COMBINED

MANAGEMENT REPORT CHAPTER 8.3.4 COMPLIANCE RISK, AND
NOTE 22 IN NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

US$120 million in support for
85 projects in 50 countries

FOR FISCAL 2021.

So far we’ve allocated approximately US$120 million
for 85 projects in more than 50 countries across all
funding rounds. This information is provided in ourannual report on the Siemens Integrity Initiative.
WWW.SIEMENS.COM/INTEGRIT Y-­I NITIATIVESIEMENS SUSTAINABILIT Y REPORT 2021

54

3.1 Compliance

The Siemens Integrity Initiative constitutes one

We’ll continue our development of a complianceelement of a 2009 settlement between Siemens andsystem tailored to the individual risks andthe World Bank and another 2013 settlement between

opportunities

Siemens and the European Investment Bank (EIB).

organizational structure at Siemens. In our global

Results and progress in fiscal 2021
In fiscal 2021, we again made significant progress

of

our

businesses

and

our

employee survey in fiscal 2022, we’ll again solicit
our employees’ feedback on integrity at Siemens inorder to be able to derive appropriate measures.

with our Siemens compliance system, including:→ The global BCGs training was updated toemphasize the importance of integrity andcompliance in the company and among its
employees. The training’s content, formats, andexecution were adapted to current conditions
and further developed.
→ We formed global teams of compliance experts
to focus on defined topics. This is intended to“Ethical management of thecompany is very important to us.
That’s why we’re committed to acollective approach and support
international initiatives tocombat corruption.”
CEO Roland Buschaddress major challenges on a cross-organizational basis while also identifying opportunities for

Finally, in fiscal 2022 we’ll continue to implement

improvement in efficiency and efficacy by

the projects of the Siemens Integrity Initiative andtapping into all of Siemens’ knowledge. Withinmonitor their progress.

these networks, the ongoing monitoring ofcompliance risks was supplemented with a global group of experts who will help detect risks fromnew digital business models at an early stage anddefine proposals to mitigate those risks.

Outlook for fiscal 2022
Our compliance priorities described above willcontinue to guide our work and will be further
detailed with focus areas for fiscal 2022. Ourparamount goal is to provide Siemens with thehighest level of certainty in matters of complianceand to promote a market environment of integrity.
In fiscal 2022, as part of the “Ethics” (E) aspect of the
DEGREE program, we’ll engage in a variety of projects
to cultivate integrity and intend to train our employees
in the Siemens BCGs in the context of the new
objectives.

SIEMENS SUSTAINABILIT Y REPORT 2021

55

WWW.SIEMENS.COM/INTEGRIT Y-­I NITIATIVE

3.2 Human rights

3.2

Human rights– Respect for human rights remains in focus at
all times

taken to counter them. In these efforts, we are guided
by international standards that help companies– Commitment to compliance with interna­
tional standards

define their approaches to human rights andcontinuously optimize them. These standards include– Inclusion of all key partners

the United Nations Guiding Principles on Business andHuman Rights and the Guidelines for Multinational
Enterprises published by the Organization for

As a global company, we are well aware of our

Economic Cooperation and Development (OECD).

responsibility to society. We are unreservedly

They highlight the importance of a due diligencecommitted to safeguarding and respecting humanprocess that is able to proactively identify, assess, andrights in every stage of the value chain. We understandprevent any human rights violations to protect those

this to be a key element of acting with integrity andaffected or at least mitigate their impacts as much as

responsible corporate governance. Our holistic

possible.

approach to respecting human rights is not limited toour own business locations: We also consider our

The Business Conduct Guidelines

supply chain and the business activities of our

Our pledge to safeguard human rights is anchored incustomers. Our goal and aspiration is to identify any

our Siemens Business Conduct Guidelines (BCGs)

human rights violations occurring anywhere in our

COMPLIANCE ). The BCGs are binding on all employees

value chain as early as possible and to mitigate

and business partners worldwide. They set out theidentified risks responsibly.

fundamental principles and rules that apply to ouractions within our company and in relation to our

Our new DEGREE framework consists of different

customers, external partners, and the public.

components to address the multifaceted issue ofhuman rights in the areas of G (Governance), E (Ethics),

Siemens is committed to complying with theand E (Equity).

following international standards and also expects
its business partners to observe the following

Commitment to human rights andinternational standards

guidelines, where applicable:

Our human rights principles are firmly grounded in→ TheInternational

Bill

of

Human

Rights,the United Nations 2030 Agenda for Sustainableconsisting of:Development.

· the Universal Declaration of Human Rights,

Siemens

believes

that

the

corresponding Sustainability Development Goals(SDGs) can only be fully achieved if any potentiallynegative impacts within the value chains are
examined in greater detail and effective action is

SIEMENS SUSTAINABILIT Y REPORT 2021

56

· the International Covenant on Civil and Political
Rights, and· the International Covenant on Economic, Social
and Cultural Rights.

3.2 Human rights→ The European Convention for the Protection of

discuss both progress and challenges and identify

Human Rights and Fundamental Freedoms,

improvement measures. Furthermore, the Chief→ The Tripartite Declaration of Principles concerning

Compliance Officer reports to the Supervisory Board

Multinational Enterprises and Social Policy of theand Managing Board at a regular basis and alsoInternational Labour Organization (ILO),

provides information on topics relating to human→ The ILO Declaration on Fundamental Principles

rights on an ad hoc basis.

and Rights at Work,→ The OECD Guidelines for Multinational Enterprises

The SSB has given the Sustainability and Compliance(after adoption of the core elements of the UN

departments the task of ensuring that the respect for

Guiding Principles on Business and Human Rights

human rights is more deeply embedded in thein 2011),company’s worldwide processes and business→ The UN Guiding Principles on Business andHuman Rights, anddecisions. To this end, the two departments havedeveloped a framework program aimed at ensuring→ The Ten Principles of the United Nations Global
Compact.

the respect for human rights and agreed tosuccessively realize improvement potential across all
program dimensions. In fiscal 2021, these efforts

Beyond that, Siemens AG reaffirmed its commitment

were focused on capacity building, awarenessto workers’ fundamental rights in an international

creation and the implementation of a comprehensive

framework agreement signed by trade unions anddue diligence approach in customer-related business.

employee representatives in 2012.

SIEMENS’ HUMAN RIGHTS FRAMEWORKThe following fundamental rights are among thoseContinuous improvement measuresenshrined in the abovementioned agreements andWe view living up to our responsibility for humanguidelines and in our Business Conduct Guidelines:

rights as a continuous improvement process. Siemens→ No discrimination, respect for the principles ofacross its value chain to systematically identify andemploys risk management programs and procedures

equal opportunity and equal treatment,

assess risks of human rights violations at an early→ Free choice of employment (no forced labor),

stage and mitigate these risks depending on the→ Prohibition of child labor,

company’s leverage potential.

→ Fair pay,
→ Freedom of collective bargaining and association,

Human rights in the supply chain→ Compliance with safety rules.

Maintaining sustainable supply chains is one of ourManagement and responsibilities

guiding principles. Siemens suppliers commit to
uphold the Siemens Group Code of Conduct for

Our actions in support of respect for human rights

Suppliers and Third Party Intermediaries and Businessand our commitment to implementing the UN

Partners, which affirms the fundamental humanGuiding Principles on Business and Human Rights arerights of our suppliers’ employees.

monitored by the Siemens Managing Board and theSiemens Sustainability Board (SSB). These bodies

SIEMENS SUSTAINABILIT Y REPORT 2021

57

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 about human rights issues ensured at Siemens?

Policy and circulars

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

Training and competence building

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

Reporting and external

How are human rights activities and issues disclosed?

Stakeholder engagement

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

This Code encompasses the following points:

sustainability audits. Whenever deviations from the→ Fair labor conditions (pay, working hours, vacation),principles of the Code of Conduct for Siemens→ Right to freedom of association,

Suppliers, and therefore also violations of the human→ Responsibility for health and safety standards,

rights principles defined in this document are→ Prohibition of discrimination,

identified, we work with the supplier to clarify how→ Prohibition of forced labor and child labor,

lasting corrective action can be taken within a→ Provision of anonymous grievance mechanisms.

reasonable time frame.

SUPPLY CHAIN

Siemens takes a risk-based approach to identifying

In case of severe violations, we reserve the right topotential risks in its supply chain. This includes

terminate the supplier relationship.

Corporate Responsibility Self-Assessments (CRSAs) by M ATERIAL HUMAN RIGHTS RISK ISSUES WITHIN OUR

suppliers, internal supplier audits, and external

VALUE CHAINSIEMENS SUSTAINABILIT Y REPORT 2021

58

3.2 Human rights

With regard to the new German Supply Chain Due

Fair pay and active codetermination

Diligence Act (LkSG), which will enter into force on

Fair and transparent pay is an indispensable element

January 1, 2023, we have established a cross-of appreciative, respectful dealings with our people.

functional working group to evaluate the effects of

In Germany, the collectively agreed-to pay system

the new law on Siemens.

forms the basis for equal pay within the areas coveredby collective agreements. Raises for those outside

Human rights in the workplace
The BCGs

collective agreements are also handled without

BUSINESS CONDUCT GUIDELINES are an integral

discrimination after review on the basis of our defined,

element of all employment contracts. Every employee

market-based “pay-parity” methodology. A full 88 %is responsible for respecting human rights. Siemensof employees in Germany are covered by collective

does not tolerate discrimination, sexual harassment,

agreements. Approximately 98 % are subject to co-or any other form of personal attack on individuals or

determination. The remaining 2 % are executive staff

groups. In addition, the principles of equal opportunity

with no codetermination rights. Siemens negotiatesand equal treatment apply without restriction.

wages with unions in free collective bargaining
negotiations.

The principles of diversity, equal opportunity, andinclusion are all embedded in our business goals andprocesses. We acknowledge that we must ourselves
effect the transformation we want and remaincommitted to creating a more equitable, more

For further information, please see the chapters:
OCCUPATIONAL HEALTH AND SAFET Y,

with a focus on

DIVERSIT Y and

WORKING AT SIEMENSPRODUCT STEWARDHIP.

as “Black Lives Matter” and changes are needed to

Human rights in the case of businessdecisions by customers

address the injustice that black Americans and other

Siemens strives to systematically operationalize any

minorities still have to endure. For this reason, we

human rights risks within its value chain by means oflaunched the “Courageous Conversations” platform

a company-wide due diligence approach. This also

for our people in the U.S., where they can share their

includes the business conducted by our customers.

sustainable future. We believe that movements such

experiences and learn from each other. More than
3,500 employees participated in this dialog format in

We operate in nearly 200 countries, including

2021. In our Supplier Diversity Program, we identify

countries with a challenging social and political

opportunities for pro bono work to promote social

context.

justice and collaborate with minority-controlled
businesses in a targeted manner. To promote diversity

Our stakeholders are increasingly asking whatamong suppliers, Siemens, Siemens Healthineers,

responsibility companies bear for the businessand the Siemens Foundation together have donatedactivities of their customers. We recognize this andmore than US$ 8 million to historically black colleges

take action to ensure that our risk due diligenceand universities and to organizations that improveaccess to COVID-19 vaccines in minority communities.
 
MATERIAL

HUMAN

RIGHTSRISKISSUESWITHINOURVALUE CHAIN

The early detection of­environmental and social risks
plays a key role in human rights
due diligence.

SIEMENS SUSTAINABILIT Y REPORT 2021

59

3.2 Human rights

procedures continue to evolve and that we work toassess possible environmental and social risks in
our operational business on an even morecomprehensive basis and at an earlier stage.
Material human rights risks within our value chain,including in the business relationships of our→ Our

experienceindealingwith

critical/

controversial projects,→ Expertise supplied by external human rights
experts, and→ Insights from dialogs with investors, ­Siemens
shareholders, NGOs, and peer groups.

customers, that we have identified are summarized
in the following

TABLE .

As a key element of the new DEGREE framework, wehave successfully rolled out the new digital Risk DueMaterial human rights risk issues within
our value chain
Human rights risk issues in the
supply chain› Fair labor conditions› Freedom of assembly› Discrimination› Forced labor› Child labor› Health and safety
Human rights risk issues in theworkplace› Health and safety› Fair labor conditions› Discrimination

Diligence Tool (ESG Radar) in the area of governanceon the basis of the abovementioned material risk
fields. This will help Siemens identify and assess
possible environmental and social risks, and theassociated human rights and reputational risks, earlier
and on an even more comprehensive basis in the caseof business decisions made by customers. The tool
can be used to check over 60 different risk indicatorsfor individual business activities. Together withexternal human rights experts, targeted mitigation
measures are defined depending on how pronounced
the risk profile is and what kind of influence ­Siemens
has. The Risk Due Diligence Tool will be continuallyrefined and expanded to cover critical human rights

Human rights risk issues in the case ofbusiness decisions by customers›	Business-specific environmental
and social risks 1› Country-specific risks›	Impact on local communities(such as indigenous population,
ethnic or religious minorities)› Fair labor conditions› Modern slavery› Discrimination› Occupied territories
1 Including in the areas of coal, oil, and gas and mining, for example.

issues.
As part of our responsible business conduct practices,
we also look at counterpart risks. Our business
responsibles assume responsibility for the periodic
risk assessment of key customers with regard toenvironmental and social risks and their related
human rights and reputation risks. The developmentof this process is ongoing and will be finalized infiscal 2022.

We believe it is essential to integrate the key risk fields

Training and skill building

into our due diligence procedures. The following

Siemens firmly believes that the principles ofassessments have been considered:sustainability can be fully and effectively practiced only

→ Results of the materiality assessment in the area

beliefs. Continuous skill building is a key factor in thisof human rights from fiscal 2019. We conducted

regard. Our activities in this area are geared toward

if they constitute a voluntary pledge based on corean online survey of 500 stakeholders, including

specific target groups. Siemens provides training for

suppliers, customers, NGOs, think tanks, investors,

suppliers, interactive training formats for employees,

shareholders, government representatives, andand tailored skill-building activities for global andour people,

regional salespeople and specific functions such as
Compliance and Environment, Health, and Safety (EHS).

SIEMENS SUSTAINABILIT Y REPORT 2021

60

3.2 Human rights

Our brochures “Sustainability in the Supply Chain” andNetworks and coalitions“Siemens Group Code of Conduct for Suppliers andA regular dialog with peer group companies creates

Third Party Intermediaries and Business Partners”

a platform founded on mutual trust for a more in-­ SUPPLY CHAIN support and sensitize our suppliers to

depth discussion of human rights. This also helps us

the importance of embedding these values, as wellcome up with fresh ideas and harness past experiences

as the sustainability requirements they entail, more

for continuous improvement measures within our

deeply in their own supply chains. Siemens also offers

company. This kind of mutual dialog focuses on

web-based training on sustainability and human

discussing challenges and solutions, addressing

rights in the supply chain for all our suppliers.

conflicts of goals, and identifying possible areas ofshared action. After all, we firmly believe that we can

A new, global web-based training program forachieve faster progress by concerted action than byenvironmental, social, and human rights due diligenceacting alone.

was successfully conducted in fiscal 2021. Although
the training program is available to all employees,

Siemens is a member of the Global Business Initiative

participation is required for a smaller target groupon Human Rights (GBI). This initiative is one of theconsisting of senior managers, salespeople, and risk

leading international network initiatives in the area

management professionals. In total, 31,000 employeesof human rights. It consists of over 20 companies

had participated in the training program by the end of

from all over the world. Siemens is also represented
in the European Business and Human Rights Peerfiscal 2021.

Learning Group of the Global Compact Network. In
In addition, our Human Rights Knowledge Hub offers

Germany, Siemens is also involved in the working

further training materials on topics such as moderngroups of econsense 1 in the areas of business andslavery, occupied territories, and effective grievancehuman rights and human rights in the supply chain.

mechanisms.
Besides regular dialog with peer groups and think
We also plan to launch an internal platform to enabletanks, we also interact regularly with external humana regular dialog across businesses, countries, andrights advisors on the subject of training, sensitization,

specific departments and openly discuss challenges,

and due diligence. In addition, we communicate

risk fields, and examples of good practice.

regularly with investors, shareholders, rating agencies,

Grievance mechanism and channels
Siemens offers all our people an external third parties
protected channels for reporting violations of external
and internal rules. Reports issued by these means areforwarded to our Compliance organization andfollowed up. The same channels can also be used toreport human rights violations to the company.
COMPLIANCE

WWW.SIEMENS.COM/HUMANRIGHTSSIEMENS SUSTAINABILIT Y REPORT 2021

61

and NGOs.

1 econsense is a Forum for Sustainable Development of German
Business.

3.3 Sustainable supply chain practices

3.3

Sustainable supply chain practices– Assumption of responsibility on the basis

According to the UN Global Compact, the “supplyof the holistic approach summarized as

chain makes a significant impact in promoting human“Prevent – Detect – Respond”– Evaluation of suppliers on the basis of self-

and anti-corruption policies.” 1 Moreover, improved

assessments and on-site audits– Focus on human rights: climate protection,

the principles of a circular economy can reducerights, fair labor practices, environmental progress,
waste management and use of materials based on

occupational safety, and responsible sourc­

consumption of natural resources. In addition, we

ing of minerals

have increased our focus on climate protection in our
supply chain in recent years.

The procurement activities of Siemens are wideranging: The company purchased goods and services
valued at just under €28 billion in fiscal 2021,
equivalent to approximately half our total revenue.

Siemens purchased goods and services

We are aware that our worldwide purchasing activities

worth €28 billion from 145 countries

have a major impact on local communities and thebusiness practices are therefore an integral part of

Responsibility for the worldwide
supplier network

purchasing policy at Siemens. We expect our suppliers

Sustainability in the supply chain is based on a holistic

not only to contribute to the economic success of our“Prevent – Detect – Respond” approach and is designed

company, but also to ensure strict compliance withto minimize risk.

environment in our procurement markets. Sustainable

oursustainability

requirements,

which

are

summarized in the S­ iemens Group Code of Conduct

We expect all suppliers to make a firm commitment tofor Suppliers and Third Party Intermediaries. The

our Siemens Group Code of Conduct for Suppliers andobligation of suppliers to observe our Code of

Third Party Intermediaries (“Code”): The requirements

Conduct is an essential basis for fulfilling theset out in the Code must be accepted by all suppliers.

Governance (“G”) ambitions of our DEGREE framework.

The Code, which was introduced more than ten years
ago, is based on the principles outlined in the United

Our supplier network is broadly diversified. We work

Nations Global Compact. The Code also builds on thewith about 63,000 suppliers in around 145 countries.

Siemens Business Conduct Guidelines (BCGs), which set

There is great variation in the overall conditions thatout the basic principles of sustainability for the entire

apply across these countries. As a result, strict

company.

compliance

with

the

globalsustainability

requirements that apply to our suppliers is a majorAmong other things, suppliers declare their willingness

challenge in our day-to-day purchasing activities.

to respect the fundamental rights of employees,
establish high standards for health, safety, andenvironmental protection, and pursue a zero-tolerance

1 https://www.unglobalcompact.org/what-is-gc/our-work/supply-chain

SIEMENS SUSTAINABILIT Y REPORT 2021

62

3.3 Sustainable supply chain practices

strategy in relation to corruption and bribery. The Code

→ Risk levels for individual countries are introduced

also contains a section on preventing purchases ofbased on sustainability indicators for key areas

conflict minerals, meaning minerals produced in certain

such as legal compliance, corruption and bribery,

countries that yield profits for armed groups in particular.

human rights in the workplace, child labor, andmore. We base these assessments on information

The Code also includes provisions on preventing moneyfrom internationally recognized organizations.

laundering and terrorist financing, export control and→ Suppliers may be assigned to other strategic

customs, and ensuring data protection. In addition,categories based on factors such as specificsuppliers are obligated to institute a protected grievance

preparations for projects with high local

mechanism for their employees. An accompanying

purchasing volumes, for example.

Code of Conduct brochure and a web-based training
module are provided to aid in supportive communication.

Self-assessments and site audits as
control mechanisms

Supplier management follows clear criteria

We perform suitable reviews according to the risk

The supplier management process at S
­iemens

assessment for suppliers based on the categories

includes strict criteria for supplier selection andoutlined above. These reviews range from supplierqualification. On this basis, we can quickly identify

self-assessments of their own sustainability practices

and counteract any sustainability risks also whento sustainability audits conducted on-site by external

admitting new suppliers. This may apply to suppliers

auditors.

with the following risk characteristics:

Number of audits
4,267
Sustainability
self-assessments→ Locations in high-risk countries→ Products according to the requirements forresponsible sourcing of minerals→ Products and services with large carbon footprints→ Products that fall under laws like REACh(regulation on the Registration, Evaluation,
Authorization and Restriction of Chemicals) or
RoHS (Restriction of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment)

319
On-site supplierquality audits1→ General aspects of supplier quality management394
Sustainability
audits2(including sustainability-related topics)→ Plant

engineering(risksassociatedwithconstruction contractors)

1 Conducted by Siemens auditors with integrated sustainability questions.
2 Conducted by external auditors.

To identify these risk characteristics, we categorize

Self-assessments

our suppliers according to several factors:

Corporate Responsibility Self-Assessments (CRSAs) are→ Purchased material and service fields are assigned

reviewed regularly and updated as needed to take new

to the abovementioned risk groups as part of ourstandards and regulations into account. Accordingly,

processes. This makes it possible to assign

new potential suppliers undergo a binding qualification

measures to individual suppliers (e.g., specificprocess, while existing suppliers are reassessed every

contract clauses, obtaining proof, possibly

three years.

part of the supplier qualification process, which isflagging the supplier for an on-site audit).

SIEMENS SUSTAINABILIT Y REPORT 2021

63

3.3 Sustainable supply chain practices

The number of completed CRSAs declined by around

Quality audits with sustainability questions

10 % from 4,759 self-assessments in fiscal 2020 to

The quality audits of suppliers conducted by ­Siemens

4,267 in 2021. This moderate decrease is mainly

auditors included questions on the subject of

attributable to the lower number of new suppliers

sustainability that cover all aspects and requirements

resulting from the general reduction of our supplierof the Code. We conducted 319 on-site audits

pool from around 65,000 in 2020 to 63,000 in theworldwide in fiscal 2021, that being about 15 % lesspast fiscal year. On the other hand, the number ofthan in the previous year.

agreed-upon improvement measures increased infiscal 2021. The effects became apparent only in 2021

Supplier quality audits with integrated sustainability questions

due to the fact that new topics were added to the

Fiscal year

Code of Conduct and incorporated into the CRSA only

(Number)

2021

2020

late in fiscal 2020. In particular, we made larger

Europe, C.I.S.,1 Africa, Middle East

116

144

additions to the Code of Conduct in the categories ofAmericas8977“Legal compliance/prohibition of corruption andAsia, Australia

114

153

bribery” and “Respect for the basic human rights of

Total

319

374

employees,” which are now also reflected in the

1 Commonwealth of Independent States.

higher number of improvements.

External sustainability audits
Corporate Responsibility Self-Assessments (CRSA)¹

From our point of view, external sustainability audits
are the most effective method of assessing the

Fiscal year
(Number)

2021

2020

sustainability performance of our suppliers. They are

Europe, C.I.S.,² Africa, Middle East

1,505

1,439

conducted by one of our external audit service

Americas555

936

providers and serve as a control mechanism for
suppliers with a high risk assessment.

Asia, Australia

2,207

2,384

Total

4,267

4,759

External sustainability audits (ESA)

Fiscal year

Fiscal year

Agreed-upon improvement (number) ³

2021

2020

Legal Compliance/prohibition ofcorruption and bribery

1,152

1,085

Respect for the basic human rights of
employees

773

655

Prohibition of child labor

149

144

Health and safety of employees

705

511

Environmental Protection

680

754

Supply Chain

145

130

Total

3,604

3,279

1 Self-assessments completed mainly by suppliers from non-OECD countries witha purchasing volume of >€50,000 per year. Questionnaires that were initiated,­completed, and concluded in the reporting period.
2 Commonwealth of Independent States.
3 Improvement measures agreed with suppliers relate either to actual deviations fromthe Siemens Group Code of Conduct for Suppliers or to structural improvements inmanagement systems and the lack of specific processes and guidelines implemented by the supplier.

2021(Number)

2020

Europe, C.I.S.,¹ Africa, Middle East

123

65

Americas44

19

Asia, Australia

227

Total

394

185
2

269

Fiscal year
Agreed-upon improvement measures (number)

3

Legal Compliance/prohibition of corruption
and bribery
Respect for the basic human rights of
employees

2021

2020

1,141

937

2,446

1,877

Prohibition of child labor

89

95

Health and safety of employees

2,430

2,064

Environmental Protection

227

161

Supply Chain

284

260

Total

6,617

5,394

1 Commonwealth of Independent States.
2 
Includes audits conducted virtually as well as audits carried out by third parties at our
suppliers based on the same standards and are accepted by Siemens.
3 
Improvement measures agreed-upon with suppliers relate either to actual deviations
from the Siemens Group Code of Conduct for Suppliers or to structural improvements inmanagement systems and the lack of specific processes and guidelines implemented by
the supplier.
SIEMENS SUSTAINABILIT Y REPORT 2021

64

3.3 Sustainable supply chain practices

The improvement of the COVID-19 situation especially

Responsible sourcing of minerals

since the spring of 2021 actually made it possible toSiemens is working hard to prevent the use of

conduct more external sustainability audits thanminerals from areas of conflict and high-risk areas in

before the COVID-19 pandemic. Compared to 269

the supply chain that are covered by the risk definition

sustainability audits in fiscal 2020, 394 audits were

set out in Annex 2 to the OECD’s Due Diligence

conducted in 2021, which equals of an increase of

Guidance for Responsible Supply Chains of Minerals

approx. 46 %. This number includes 65 audits that wefrom Conflict-Affected and High-Risk Areas.

conducted virtually due to the COVID-19 pandemic,
where the auditor inspected the supplier’s facility by

To this end, we have developed principles for themeans of a remote video link. Also included are 14

responsible sourcing of minerals (Responsible

audits at companies which Siemens purchases from

Minerals Sourcing Policy) and integrated them into

but which were ordered by a third party and verified

our purchasing process. These principles offer aby our audit provider. Those audit reports fully meet

uniform, company-wide standard for supply chain

the Siemens expectations and were given to us withmanagement in this area. Our approach to theseapproval of the audited companies.

topics is geared toward the risk-based requirements

For monitoring purposes, audits can be repeated or

the use, sources, and origins of these minerals within

follow- up audits can be performed by our external

our supply chains, we investigate the smelting plantsof the OECD’s Due Diligence Guidance. To determine

audit service providers. It is also possible for the

involved. Siemens is a member of the Responsible

responsible purchasing departments at Siemens toMinerals Initiative (RMI), an organization of moreagree on a series of optimization measures with thethan 400 industrial companies that provides auditing

supplier. During this process, we remain committed

programs for smelting.

to our partnerships with our suppliers and help themto improve. However, if the problems continue or a

We use the Conflict Minerals Reporting Template

supplier does not show a willingness to take necessary(CMRT) published by the RMI to survey our more than

remedial action, we remove that supplier from our list.

2,600 relevant suppliers and elicit the information we

Our central warning message process is intended toassociated with the production of tin, tantalum,

ensure even faster, more efficient responses totungsten, and gold (3TG).

need about smelters in our supply chain that are

violations of the requirements laid out in the Code. In
this process, suppliers can be blocked in local systems

We share our findings regarding identified smelters

around the world through central messaging.

with our RMI partners. The initiative then reviews
whether the smelters are certified. Siemens is an

Sustainability topics with a particularneed for action

active member of the Responsible Minerals Assurance

Three focus topics play an important role in responsiblethat are not yet certified to participate in audit programs.

supply chain practices due to their strong connection

In this process, Siemens supports the smelters as they

with other Siemens sustainability activities. Thesemove toward the final audit and certification.

include safeguarding human rights, including

Individual results are communicated on the RMI

responsible sourcing of minerals, lowering CO2

website:Process and urges the decision-makers of smelters

WWW.RESPONSIBLEMINERALSINITIATIVE.ORG

emissions in our supply chain, and ensuring healthand safety, especially on project construction sites.

Based on the European Commission’s risk definition
relating to “armed conflict,” “regions with weak or nogovernance,” and “regions where human and people’s

SIEMENS SUSTAINABILIT Y REPORT 2021

65

3.3 Sustainable supply chain practices

rights are systematically violated,” Siemens also

operations and explains how these emissions canapplies its established risk assessment system tobe sustainably reduced. In a second part, theevaluate further minerals beyond the 3TG grouping.

supplier’s primary data can be queried.

Cobalt is one of the minerals or metals that have been
incorporated into the Siemens due diligence processThis tool is based on the following methodology:

following RMI’s development of an auditing standard
and reporting specifications for cobalt (CRT) in→ The basis is the model calculation of our external

addition to its 3TG due diligence process specifications.

partner, which divides our suppliers into product

Siemens now also conducts supplier audits for cobalt,

and service categories and assigns an industry

focusing on battery manufacturers.

average for CO2. This value is supplemented by acountry-specific figure for CO2, also based on

Further information and the text of our Responsible

internationally available data.

Minerals Sourcing Policy can be found at→ Since early 2021, we ask our suppliers to inform

WWW.SIEMENS.COM/RESPONSIBLEMINERALS .

us about their implemented CO2 reduction
measures and their CO2 management via CWA.

Program to reduce CO2 in the supply chain

Based on the given answers, we update theAs part of the Siemens Carbon Neutral Program andcalculated CO2 reductions and their remaining

our reporting to the CDP, we publish the upstream

footprint.

greenhouse gas emissions caused by our suppliers. In
our Carbon Reduction@Suppliers approach, which is

Detailed information on this development andimplemented with an external partner, we prepare

the CWA is provided atanalyses based on economic data to model the CO2

SUPPLIERS .

WWW.SIEMENS.COM/­C ARBON-

footprint for each one of our suppliers.
In fiscal 2021, we contacted 7,100 suppliers andSo, in 2021 the supply chain emissions for ourby the end of this fiscal year we had received more

Siemens DEGREE ambition (Siemens without SHS)

than 1,800 answers reporting the efforts towere reduced by 0.6 % to 8,048 kt CO2e since – forreducing their CO2 footprint. Their answers resulted

the first time – we included our suppliers’ CO2

to an average reduction of 7.6 % against our

reductions which they already had executed. Taking

formerly calculated CO2 footprint, respectively an

the 1.5 % increase of our Procurement Volume into

absolute amount of 104 kt CO2e.

account, the CO2 emissions were reduced by more

Enforcing occupational safety at construction

than 2 %.

sites
Description of the “Carbon Reduction at

Our supply chain management and EHS experts

Suppliers” program

have jointly established a selection process for

In 2018/19, we set the basis of this program when

suppliers that primarily perform construction

weservices for Siemens. Before these contractors cancontacted

andsurveyed

more

than

9,000 suppliers in over 90 countries and thenbe added to our supplier pool and used, EHS experts

worked extensively on a process for identifying ourreview and confirm the responses given by potential

suppliers’ CO2 footprints and reducing emissions

contractors to occupational health and safety

through individual agreements on targets.

questions. We also regularly review the risk
potential associated with the relevant service

Today we use a web-based tool known as the“Carbon Web Assessment (CWA),” which shows our
suppliers the highest CO2 emitters in their

SIEMENS SUSTAINABILIT Y REPORT 2021

66

categories and update our review methodology.

3.4 Cybersecurity and data privacy

3.4

Cybersecurity and data privacy– Aiming for a leading role in cybersecurity

cyberattacks. Siemens recognized early on that

– Global expertise and governance structures

cybersecurity would be an integral part of the digital– Data protection is part of the compliancerevolution, and it has successfully addressed the issue bysystemcreating a centralized cybersecurity ecosystem. The
company has developed a holistic approach to
cybersecurity that helps to provide the best possible

Cybersecurity rapidly gaining inimportance

protection for its IT1 and OT2 infrastructure as well as its
products, solutions, and services.

Digitalization is involved in so many aspects of ourlives. Hospitals, factories, power plants, power grids,

Our new DEGREE framework addresses the topic ofwater systems, intelligent infrastructures, connectedcybersecurity under “E” for Ethics. That commitment ismobility – digital systems have become indispensable

further reinforced by Siemens’ participation in foundingin many sectors of the economy. Wherever large

the “Charter of Trust” initiative to protect data andvolumes of information are stored, potential criminal

promote cybersecurity within a trustworthy digital world.

attacks are never far away. That makes cybersecurity
one of today’s most relevant issues – not just for

Siemens is certain that it will become more and morecompanies but for society as a whole. And its

important to be able to trust the digital world. We’re a

relevance is expected to increase over the coming

recognized industry leader in cybersecurity, and our goal

years. It will be a crucial instrument for helping

is to protect data and continue to develop cybersecurity

businesses safeguard critical infrastructures, protect

to create a more trustworthy digital world.

sensitive information, and ensure their business
continuity.

Our cybersecurity performance has won outside

It’s easy to see why secure digital systems are so

DJSI, for example, has recognized us as a leadingnecessary: The Internet of Things (IoT) is one of thecompany relative to our peers.

recognition from sustainability ratings and rankings. The

driving technologies behind the digitalization ofindustry, just as it also drives nearly all S­ iemens

The Cybersecurity Department works to be a trusted

business fields. And as one of Siemens’ strategic goals,

partner in the digital world for our society, our customers,

this digital transformation will only succeed if

and Siemens units themselves. Siemens can draw on

Siemens can be certain that data and connected

decades of expertise: The company’s small IT security

systems will remain secure. So, cybersecurity is a top

team back in 1986 has grown to a staff of about 1,300

priority for Siemens.

cybersecurity experts. They develop and adopt leading
technologies, leverage our internal network, andAn approach that covers all levels simultaneously –maintain a dialog with other companies. We want tofrom the operational level to the field level and fromcontinuously improve resilience through clear, holistic

access control to copy protection – is absolutely

accountability and ownership. We rely on a culture ofessential

tokeeping

industrial

facilities

comprehensively safe from internal and external

SIEMENS SUSTAINABILIT Y REPORT 2021

67

1 Information technology
2 Operational technology

3.4 Cybersecurity and data privacy

ownership for all aspects of cybersecurity. All ofEnergy and Siemens Healthineers to participate inwhich gives ­Siemens a very broad foundation for

the CSB.

protecting itself, its customers, and society at large.
Since cybersecurity is a priority for top management,
Our Cybersecurity unit has the task of protecting our

the Global Chief Cybersecurity Officer reports directlyinternal office environment and our Siemens plants

to the responsible member of the Managing Board,

around the world. We develop our own security

quarterly to the full Managing Board, and annually tosolutions for that purpose, integrate them into our IT

the Supervisory Board.

and OT environments, and are careful to provide
continuous maintenance for systems throughout

The Cybersecurity Department tracks the following

their life cycle.

issues and carries out the following activities:

To further enhance the cybersecurity business for→ Measures in information technology, operational

Siemens AG, we’re taking the next step: We’re offering

technology, and product and solution security

a selection of highly mature security services for our→ Cybersecurity risk management

external customers. In close collaboration with the→ Monitoring and reporting on the status andBusiness, we’re defining our go-to-market strategy

progress of cybersecurity measures and checks

and making the most our access to our customers.1→ Cyber readiness and second line of defense

Responsibilities for cybersecurity clearly
defined→ Mandatory global cybersecurity awarenessassessments 2
measures and annual IT cybersecurity global
awareness trainings→ Coordinating the joint bodies (such as the CSB),

Approximately

1,300

experts for Cybersecurity

work for Siemens

tasks, and topics by central and local cybersecurity
teams in the businesses and countries→ Strengthening cybersecurity at a global level in
different industries beyond company boundaries
through the activities of the Charter of Trust: 3 forexample, through its Board of Directors,

A Cybersecurity Board (CSB) has been established to

management forum, and various task forces. The

coordinate cybersecurity across the entire Siemens

Cybersecurity Department is also a service

ecosystem. Chaired by the Global Chief Cybersecurity

provider for the entire Siemens cybersecurity

Officer, the Board is intended to steer the company’s

ecosystem.

overall cybersecurity approach. The company units
are represented on the CSB by their Chief Cybersecurity

The cybersecurity organization was developed:

Officers. The Board provides a collaborative platform
for advancing strategic initiatives throughout Siemens
and its affiliated companies in order to address
security

issuesandestablish

cybersecurity→ To protect Siemens’ infrastructure and products
from cyberattack→ To monitor the threat landscape and initiate therequirements and recommendations – which thenecessary measures to ensure cyber resilience

company’s various units then define more specifically→ To identify, assess, and call attention tofor themselves. Collaboration agreements have also

cybersecurity risks and actively manage themenabled the Chief Cybersecurity Officers at Siemens
1 https://new.siemens.com/global/en/products/services/cybersecurity.html.

SIEMENS SUSTAINABILIT Y REPORT 2021

68

2 https://new.siemens.com/global/en/products/­
services/cybersecurity/assessments-for-operational-technology.html
3 https://www.charteroftrust.com/

3.4 Cybersecurity and data privacy→ To apply country-specific laws and regulations

The Siemens cybersecurity organization has alsothat affect our products, solutions, andtaken steps to further mitigate risk. These initiatives

infrastructure and take action accordingly

improve our cyber resilience by helping us better→ To reduce the risk of harm to customers

prepare for possible cyberattacks, respond to them

→ To reduce the risk of business interruption

more effectively, and recover from them more rapidly.

→ To prevent a loss of reputation and market share→ To minimize risk of penalties

Here are some of the activities that aim to reducethese risks’ probability and impact:

Ensuring cybersecurity calls for an effort from every
one of our people, both to protect our products,→ The Cybersecurity Improvement Program (CSIP)

solutions, and services and to safeguard our own IT/

was intended to reduce risk and protect S­ iemens’

OT infrastructure. This lays the groundwork for ourmostcustomers to be able to buy products and solutions

implementing consistent security solutions. The

that meet their security requirements, and with which

CSIP was a four-year program that was concluded

they can run their own systems reliably and securely.

in September 2021.

criticalassetsbydevelopingand→ The paramount goal of Enhanced Microsoft
Siemens provides cybersecurity training for its

Security (EMS) was to make the S­iemens

employees every year. In 2020, 87 % of all employees

cybersecurity organization a cybersecurity leader

took part in the online cybersecurity training toby integrating native Microsoft technology while

protect the company.

at the same time improving user-friendliness.
This program concluded in fiscal 2021 and was

The training courses were offered barrier-free for the

succeeded by the Zero Trust program.

first time in the financial year 2021. Therefore, the→ The Zero Trust program will run for two years. It

rollout was delayed by a few months and theapplies EMS findings to factories, business IT, andparticipation rate was 79 % on the reporting date.

products. The program is based on the principle

However, we assume that we will at least achieve theof “never trust, always verify” and aims to checkparticipation rate of the previous year.

Cybersecurity insurance and risk analysis

each individual connection in real time and topermit only trustworthy communication.

To protect the company even more and reduce the

The threat landscape is ever-changing and ever-potential financial impact of cyber incidents, options

expanding, so it’s important to keep a constant eye

for risk transfer have been explored in detail. After anon it and set up new initiatives and programs tointernational call for bids for insurance, the currently

ensure that we keep adapting and improving.

insurable cyber-risks were transferred to a consortiumof insurers. The coverage emphasizes losses caused
by incidents such as breaches of information security
and data privacy within Siemens or by third parties.
Taking out cyber-insurance also supports Siemens’
businesses, because our customers often requireconfirmation of cybersecurity risk coverage. The
scope and limits of the risk transfer to the insurance
market are reviewed annually.

SIEMENS SUSTAINABILIT Y REPORT 2021

69

3.4 Cybersecurity and data privacy

Building high levels of cybersecurity into
Siemens products and solutions

Siemens CERT secures our internal infrastructure,

Siemens products, solutions, and services contain a

us, and evaluates the potential impact on thesignificant amount of software and IT-relatedcompany. In the event of a security incident, ourcomponents, which in many cases are used in theexperts analyze the cause and initiate counter­

continuously monitors the cyberthreat landscape forcontext of critical infrastructures and could become

measures to minimize harmful impact. Appropriate

more exposed to cyberthreats. Regulatory andinterest groups (and the authorities, if required) arecustomer-specificalso informed.

securityrequirementsareincreasing and need to be addressed by Siemens.
Siemens has established a company-wide Product &ProductCERT handles security issues related to

Solution Security (PSS) initiative to define guidanceSiemens products and solutions. The Security

and mandatory requirements for PSS and to

Vulnerability Monitoring service has been operating

continuously improve their implementation within

for more than ten years and is constantly on thethe business units. This is managed, among otherlookout for information on vulnerabilities in software

things, by means of the so-called PSS Maturity. PSS

and hardware components that are built into ­Siemens

Maturity stands for a proprietary, standards-based

products or used in Siemens’ IT infrastructure. Undermaturity model, which shows the extent to which thethe “Vilocify” 2 brand, this monitoring also lays theestablished business and design processes are being

groundwork for external activities that offer the

expanded and constantly improved with regard toservice to a broader customer base. New security

security activities and requirements. The maturity

recommendations are published each month inmodel covers several subject areas, which aretandem with Microsoft Patch Day. Its goal of is tomeasured at various levels and is adaptable toestablish transparency, inspire trust, and improve

respective business. Evaluation is performed annuallyplanning reliability for customers, who appreciate theat the organizational level, the results are discussed

regular Siemens Security Advisory Day. We also workwith the unit management, and corresponding

with external researchers and partners to monitor

improvement programs are initiated. Continuous

and improve our services.

improvement

andcontinuous

learning

arefundamental to implementing security by design.

Proactively dealing with threats,
incidents, and vulnerabilities
Siemens has established two teams for this purpose.
Both Siemens CERT 1 and Siemens ProductCERT are
dedicated teams of seasoned security experts who
can provide an immediate response to security threats
and incidents affecting Siemens products, solutions,services, or infrastructure.

1 Computer Emergency Response Team2 https://vilocify.com/

SIEMENS SUSTAINABILIT Y REPORT 2021

70

3.4 Cybersecurity and data privacy

For Siemens, protecting the personal data of our

Employees committed to data protection
and regular training

customers, our people, and partners is an expression

Continuously keeping up with data protectionof responsible interaction. As digitalization advances,

requirements isn’t just a task for IT – it also involves

handling personal data is also becoming an

our people and processes. That’s why internal

Protection of personal data

increasingly important success factor. That’s why

regulations such as our Business Conduct Guidelines

processing personal data in compliance withrequire every employee to comply with dataapplicable data protection laws, including the Generalprotection requirements.

Data Protection Regulation (GDPR), is of utmost
importance to Siemens. Our DEGREE framework

Siemens employees also receive regular trainings onprioritizes handling data carefully – under “E” forhow to handle personal data that are tailored to
specific functions and target groups. In fiscal 2021,“Ethics.”

Siemens developed a new web-based data

Implementing data privacy requirements
within the Group: The data privacy
management system“Essentials” level that’s mandatory for all employees

To put data privacy into action throughout the Group,

specialized “Nuggets” designed for specific fields andSiemens has made it an integral part of the Siemens

target groups.

compliance system. The company has put a dataprotection training program composed of an
who process personal data as part of their job, andprivacy management system into place to ensure that

Data transfers

all our business activities comply with data privacy

Transfers of personal data within the Group are

requirements, and that personal data is processedcovered by binding internal data protection

transparently for all concerned in compliance withregulations: the Siemens Binding Corporate Rules on

the applicable law (referral to the Compliance

Data Protection (BCR). Back in 2014, Siemens was one

chapter).

COMPLIANCE .

of the first companies in Germany to introduce a
mandatory, Group-wide instrument of this kind. WithThe data privacy management system is composed

the BCR, Siemens Group companies around the worldof the following components that will effectively

have an obligation to process personal data from dataprotect the personal data of our customers, businesssubjects in the European Union in accordance withpartners, and our people.

European data protection standards.

Transparency and data subject rights
We believe transparency about processing is a key
component of effective data protection. Our web­sites and digital products and solutions include data
privacy policy statements that inform users aboutprocessing steps and data subject rights. The
applicable data protection law focuses on protecting
the people whose data is processed and grants themcomprehensive data protection rights (including theright of access to processed personal data). To comply,
Siemens has introduced a global process that provides
a centralized hub where data subjects can assert theirrights and get answers.

SIEMENS SUSTAINABILIT Y REPORT 2021

71

Data privacy management system ensurescompliance with data protection require­ments throughout all business processes3.4 Cybersecurity and data privacy

Data protection among our suppliers andpartners

Inspection
The requirements and measures described in thisA holistic approach to data protection only works if

section are subject to regular verification, anddata protection requirements are consistently

Siemens conducts risk-based data protection auditsobserved and implemented within the Group and alsoof its processing activities, products, and services. The

by our external suppliers and partners. Our suppliers

focus of data protection audits in fiscal 2021 was on

and partners undergo a preliminary data protection

storing personal data on Siemens IT systems inaudit and are required by contract to adhere to data

compliance with the data protection laws, secure dataprotection standards.

exchanges between Siemens IT systems, security ofData protection in our products andsolutions (privacy by design)(for example, the IT infrastructure for company

Siemens wants to ensure that its products andsimilar attacks.

solutions can be used in compliance with all relevant

systems where sensitive personal data is processed
medical offices), and defending against phishing anddata protection rules. So for Siemens, privacy by

Reporting data protection violations

design means that compliance with the law,

A fast response is essential in the event of a datatransparency, informational self-determination, dataprotection violation. This is the only way to ensure

minimization, and data security are already appliedthat these violations are terminated swiftly and thatwhen functions and services are developed, and that

all involved parties both in-house and external (suchthey’re incorporated into the design. This approachas the data subjects and the regulatory authorities)

means that privacy by design is securely integrated

are informed immediately. To facilitate this, Siemens

into our product development processes.

has established a global Data Privacy Incident Processthat uses central reporting channels and includes the

Siemens is well aware that using its products andservices may lead customers to entrust Siemens withprocessing one of their most precious assets: theirdata. If Siemens processes personal data for acustomer, it does so under contractual terms thatgovern how the data is handled, including transfers
to third parties.

Documentation
Siemens documents the purpose, risk, and security
standards applied to all of the Group’s processing
activities in a central database: the Register ofProcessing Activities. This register serves as a place
to evaluate whether data protection law permits agiven processing activity and to document compliancewith the applicable laws.

SIEMENS SUSTAINABILIT Y REPORT 2021

72

relevant stakeholders.

Page 73 – 92

Environment
Conservation of natureand resources

Decarbonization

Resource efficiency

support the 1.5°C target to fightachieve circularity andglobal warming

dematerialization

Our key ambitions:

Our key ambitions:→ Net zero operations by 2030 in line with SBTi

→ Next-level Robust Eco Design for 100 % of relevant

pathway 1

Siemens product families by 2030

→ Net zero supply chain by 2050, 20 % emissions
reduction by 2030

→ Natural resource decoupling through increased
purchase of secondary materials for metals andresinsAdditional topics:→ Circularity through waste-to-landfill reduction of

Joining the EP100, EV100, and RE100→ 
initiative

50 % by 2025 and toward zero landfill waste by2030

2→ Portfolio to support customers in climate
Additional topics:

protection→ Improving energy efficiency by 10 % until
2030
Continuous increase in share of material→ 
1 SBTi: Science-Based Targets initiative.
2 Improving energy productivity (EP), Use of electric vehicles (EV) and useof renewable energy (RE).

recycling of total waste→ Phasing out single-use plastics at our sites
worldwide

SIEMENS SUSTAINABILIT Y REPORT 2021

73

Holistic environmental protection

Holistic
environmental protection
As a company with many production facilities andresponsibility for implementing our environmental

office locations worldwide, our activities have a wide-principles is defined in the EHS Principles, a Managing

ranging impact on the environment. This impact

Board guideline. Our Global EHS board of experts

extends to everything including the production anddevelops environmental protection measures andconversion of raw materials, preproduction in the

programs and, together with our Sustainability Board,

supply chain, our own manufacturing activities, ouradvises the Managing Board member responsible for

product development, use by customers, reuse andenvironmental protection. The EHS experts and thedisposal, and utilization of transport services. It issustainability officers in our business areas help line

primarily the result of energy utilization, land use, themanagers implement our environmental guidelines

emission of airborne pollutants, the emission ofand programs. The company’s environmental risks

greenhouse gases, and the generation of solid andand opportunities are assessed in terms of uniform

liquid waste − all of which can have negative effects

criteria and reported to the Siemens Enterprise Risk

on surface water, groundwater, the soil, biodiversity,

Management Team in Siemens AG’s Environmental

and the climate.

Council, which comprises the environmental experts
ofthecompany’s

businesses

andregional

Our main challenges include the reduction of theorganizations as well as experts in corporate

environmental impact of product utilization − agovernance, environmental protection, supply chain

challenge that is already being met to a large extent

management, sustainability, real estate management,by our products, which are characterized by long life

andcycles, reparability, reusability, and reliability as wellmanagement is based on the ISO 14001 andas the minimal, low-emission utilization and/or

50001 norms for energy-intensive units and on the

consumption of energy, raw materials, auxiliary

IEC 62430 norm for the environmentally compatible

materials, and fuel.

design of solutions, services, and products that are

insurance.

Operational

environmental

implemented via our own binding standard.
In managing the environmental impact of ourbusiness activities, we go beyond mere compliancewith the applicable statutory requirements. We

DEGREE defines the framework for ambitious
environmental programs.

reconcile economic, environmental, and social

Our environmental programs are embedded in ourrequirements and honor our responsibility to society.

DEGREE sustainability framework and focus on the

Our forward-looking commitment strengthens our

reduction of greenhouse gas emissions and increasing

customers’ competitiveness and lays the foundation

resource efficiency along the entire value chain.

for our future success. It includes the identification

Through our commitment to the Science Basedand active management − often in collaboration withTargets Initiative, we are supporting the achievement

our business partners − of the environmental impactof the 1.5-degree Celsius target set by the Parisof all our activities along the entire value chain.

Climate Agreement, while Eco Efficiency @ Siemens,
our resource efficiency program, is helping reduce all

Siemens’ activities are based on its own environmental

our environmental impacts by fostering the circular

guidelines. A member of Siemens’ Managing Board

economy and the general dematerialization ofis appointed to ensure their implementation. The

business processes.

SIEMENS SUSTAINABILIT Y REPORT 2021

74

Holistic environmental protection

Eco Efficiency @ Siemens

Responsible ProductDevelopment
Products and solutions are at the coreof business. Evaluating our portfolio
and applying an eco-design approachto relevant product families supports
us in selling eco-efficient products
and solutions.

Clean Supply Chain

Efficient Own
Operations

A clean supply chain is central on thepath to decoupling natural resourceuse. Which is why we will be sourcing
more secondary materials and takecontinuous action to initiate thereplacement of regulated substances
according to IEC 62474.

Efficiently managing our own
production sites and offices
continues to be key in ourenvironmental approach, particularly
by enhancing waste management
practices and using clean energy
effectively.

In joining the Science Based Targets Initiative,

waste and promoting the elimination of waste­Siemens has committed itself to further reducing all

materials. Our products’ environmental aspects willgreenhouse gas emissions generated along the entire

also be included in our customer feedback system invalue chain. Our goal is to reduce the CO2 emissions

order to continuously generate and implementfrom our business operations to the point that our

feedback regarding their Robust Eco Design. Launchedbusiness segments’ contribution is compatible withthis fiscal year, Eco Efficiency @ Siemens will run until

the 1.5-degree Celsius target in terms of the2030. Time-­limited environmental initiatives − such

recognized climate models. Measures at our businessas projects in the areas of water, biodiversity, andoperations − such as the electrification of our vehicle

packaging − round out our environmental program.

fleet, the conversion to green electricity, and building
optimization − as well as in the supply chain and the

In a rapidly expanding global economy characterized

expanded value chain will play a key role in target

by ongoing urbanization and world populationachievement. The related ambitions are bundled under

growth, the importance of environmental protection

the “D“ for decarbonization in our DEGREE framework.

will increase. Since the start of the EU Green Deal, atthe very latest, it has been obvious that the creation

Eco Efficiency @ Siemens focuses on Robust Ecoof a greenhouse-gas-neutral planet will require a

Design − the design of products, services, andfundamental structural transformation of the market

solutions to meet strict standards of environmental

economy. The term “circular economy” defines acompatibility. Our procurement and production

framework for moving from a linear, resource-

activities also consider resource efficiency, addressing

intensive economy to a circular, resource-conserving

the twin goals of increasing the share of secondary

form of value creation and for shaping such valuematerials in plastics and metals, and continuously

creation accordingly. It is precisely for this reason that

reducing the share of materials which pose potential

we have chosen to formulate a key element of the “R”

risks to health and the environment. Although thefor Resource Efficiency in our DEGREE framework asshare of renewable energies is now high and will“the achievement of a circular economy andincrease further, we aim to additionally increasedematerialization”: we want to emphasize theenergy efficiency in our operations and offices. We

compensation and rebound effects that are necessary

have also undertaken fostering the circular economy

for our new circular business model and innovativeand dematerialization by further reducing landfill

processes.

SIEMENS SUSTAINABILIT Y REPORT 2021

75

4.1 Climate action

4.1

Climate action– Our pledge: We are making a contribution to

Our approaches to reducing emissions target thelimiting global warming to 1.5 degrees Celsius

entire value chain. During the use phase of our– Our targets: CO2-neutral business operations

products, the main source of CO2 emissions is the useby 2030 and CO2-neutral supply chain by 2050

of electrical energy. Consequently, the key levers for– Our path: Continuous reduction of emissions

lowering emissions during the product use phase arefrom business operations, collaboration withto boost energy efficiency and promote digitalization.

suppliers, and a portfolio that helps ourCO2 savings are calculated and reported for thecustomers protect the environment

products of the Siemens Environmental Portfolio.
Our binding climate protection targets and measures

We have pledged to make an important contribution

are grouped within the “D” (Decarbonization) category

to decarbonizing the global economy, which scientistsof our DEGREE framework for sustainability at S
­ iemens.

say must be done well before the end of thean appropriate governance structure, including

Transparency on greenhouse gas
emissionsstrategy and risk management, and by acting in

We report our greenhouse gas emissions on the basis

accordance with the recommendations of the Taskof the Greenhouse Gas Protocol corporate standard

21st century. We will achieve this goal with the aid ofForce on Climate-related Financial Disclosures (TCFD).

published by the World Resources Institute (WRI) andIn addition, our products and solutions make an

the

World

Business

Councilfor

Sustainable

important contribution to decarbonization by ourDevelopment (WBCSD). Direct greenhouse gas

customers, while also presenting a businessemissions (Scope 1) arise from sources that are in theopportunity for ­Siemens.

company’s possession or under its control. Indirect

We have strengthened our climate protection strategy

use of purchased electricity and district heating. Sincewith our validated 1.5 degree Celsius Science Basedfiscal 2016, we have also reported upstream Scope 3

Target and by joining the initiatives

RE100 (COMPLETE

emissions, arising within our supply chain, from

EV100 (CONVERSION

sources such as business travel, capital goods, fuels,

greenhouse gas emissions (Scope 2) arise from the

CONVERSION TO GREEN ELECTRICIT Y),

OF THE VEHICLE FLEET TO ELECTRIC VEHICLES), andEP100

and energy-relevant activities and shipments. Scope 3(NET-­Z ERO EMISSION BUILDINGS). As key elements of ouremissions from our supply chain have been calculated

management approach, the reduction of CO2

using a cross-regional, macroeconomic input-­output

emissions in the company’s own operations ismodel based on our volume of purchased goods andembedded in the Long-term Incentive (LTI)

services. We are reporting downstream Scope 3

compensation

emissions, including those arising from the use of ourcomponentoftheseniormanagement of Siemens (excluding SHS), and our

products, our investments, employee commuting,business units are charged with the responsibility ofand work-from-home activities, for the first time

reducing their respective emissions.

in 2021.

REFERENCE TOSUSTAINABILIT Y IN MANAGEMENT COMPENSATIONSIEMENS SUSTAINABILIT Y REPORT 2021

76

4.1 Climate action

Thus, our former “Carbon Neutral 2030” program on

Greenhouse gas emissions (Siemens AG)

the one hand has been subsumed into our Science

Fiscal year(in 1,000 metric tons of CO2 equivalents)

2021

2020 1

Scope 1

386

424

Scope 2 2

208

253

Sum Scope 1 and 2

595

678

Purchases goods & services

8,813

8,607

Capital goods

381

419

Fuel and energy-related activities

263

282

Waste in operations

24

28

Transportation upstream

797

740

Business travel

63

126

Employee Commuting 3

94

94

Sum Scope 3 Upstream

10,435

10,296

Use of sold products

453,350

483,813

Investments

5,486

13,582

Sum Scope 3 downstream

458,836

497,395

469,271507,691

Scope 3

Total Scope 3

Based Target and, on the other hand, will be continued
under the title “Net Zero 2030” for our business
operations as part of our DEGREE framework forsustainability. By committing to the Science Based
Targets, we have pledged to reduce the CO2 emissions
from our own business operations by 50 % from 2019by the year 2030. We will then offset the remaining
CO2 emissions with high-quality CO2 certificates toachieve our “Net Zero 2030” target. At Siemens(excluding SHS), the integration of CO2 reduction into
the Long-term Incentive components of managementcompensation strengthens the responsibility of ouroperating business units. We have also issued aninternal guideline defining the first parameters forthe subsequently necessary procurement of CO2
certificates with an emphasis on high-quality CO2
certificates meeting established standards andmaking a positive contribution to the achievement of

1 The extrapolation method for scope-1 and scope-2 emissions was adjusted in fiscal
2021 and hence fiscal 2020 values adapted. For further information, please refer tothe chapter REPORTING METHOD.
2 We calculate our emissions from electricity consumption on the basis of the CO2
emission factors of local sites according to the market-based approach.
3 
Not part of supply chain emissions reduction.

the Sustainable Development Goals, including those

Climate protection targets within thevalue chain

renewable sources by the year 2030 at the latest.

that are not related to climate protection.
By joining the RE100, we have pledged to convert ourelectricity consumption completely to electricity fromGreen power currently accounts for 78 % of our power
consumption.

Siemens SBTi commitment
By joining the Science Based Targets Initiative, Siemens has

As part of our commitment to EV100, we are striving

pledged to reduce emissions from its own operations

to convert our motor vehicle fleet completely to(Scope 1 and 2) by 50 % by the year 2030 and its Scope 3

electric vehicles by the year 2030.

emissions (upstream and downstream) by 15 % compared
to 2019. These targets evince our commitment to make a

Our membership in EP100 bolsters our commitment

contribution to limiting global warming to 1.5 degrees

to only owning or leasing buildings with no net CO2

Celsius and keeping climate change in check.

emissions by the year 2030.
With regard to Scope 3 emissions, we are particularly

By extending the “Carbon-Neutral 2030” program that

focused on reducing emissions within our supply

was first launched in 2015, our new Science Based Target

chain. Therefore, the goal of Siemens (excluding SHS)

now applies to the entire value chain. Moreover, we haveis to reduce our supply chain emissions by 20 % by

pledged to speed up the physical reduction of CO2

the year 2030 and eliminate them completely by theemissions in our own business operations.

year 2050. These targets are likewise part of our
DEGREE framework.

SIEMENS SUSTAINABILIT Y REPORT 2021

77

4.1 Climate action“Net Zero 2030”: Moving toward CO2
neutrality

Use of renewable energy

Siemens launched the global “CO2-neutral” program

worked continuously to increase the share of

aimed at its own business operations in September

electricity consumption represented by electricity

2015. Under this program, we reduced the carbon

from renewable sources. Our goal is to use 100 %Even before we joined the RE100 Initiative, wefootprint of our own operations by 54 % between

green electricity by the year 2030 at the latest. In

2014 and 2020 (as reported last year, including

fiscal 2021, more than 78 % of our company-wide­Siemens Energy), thus achieving our intermediatepurchased electricity consisted of electricity fromtarget last year.

renewable sources. Thus, we reduced emissions by atotal of 518 thousand metric tons of CO2 per year

Compared to the fiscal 2020, we reduced our Scope

compared to the average electricity mix.

1 and Scope 2 emissions by 83 thousand metric tonsof CO2 or 12 % in 2021. Scope 1 and 2 emissions

Due to regulatory restrictions in countries such as

decreased by 36 % since fiscal 2019, contributing toIndonesia, Peru, and Ecuador, the complete

our SBTi commitment. This reduction is due primarily

conversion to green electricity is not yet possible atto the continued implementation of our energy

this time. Through our membership in RE100, we areprocurement policies, as well as a number of otherattempting to have these regulations amended tomeasures and initiatives, which are briefly describedmake this conversion possible.

in the following.
In purchasing green electricity, we follow the
Emission reduction as part of the “Net Zero 2030”
program(in kt CO2 for Siemens AG)1

purchasing guidelines of the WWF’s “Next Generation
Green Electricity” initiative.
Siemens and Stadtwerke München (SWM), Munich’s
municipal utilities company, have entered into a
power purchase agreement (PPA) for electricity
derived from wind power: As of January 1, 2021, the2021

new Siemens campus in Erlangen derives the majority– 36 %3926

of the green energy it requires from wind farms,
2030

701

595

0

which will lose access to subsidies under the German
Renewable Energy Act (EEG) starting in 2021.
The use of biogas is another component of ourdecarbonization strategy. By using biogas, we have

FY2019 2

FY
2020

FY
2021

1 As reported in respective fiscal year.
2 As reported in FY 2020.
3 Compared to FY 2019.

SIEMENS SUSTAINABILIT Y REPORT 2021

78

FY
2030

been able to reduce our annual emissions by
22.5 thousand metric tons of CO2 compared to theuse of conventional natural gas.

4.1 Climate action

Reduction of motor vehicle fleet
emissions

We have issued a new guideline defining principles

We are working to reduce the emissions from oursetting maximum permissible emissions in the supply

motor vehicle fleet, which comprises approximately

chain and construction activities.

for the CO2-neutral operation of new buildings and43,000 vehicles, and are striving to electrify itcompletely by the year 2030 as part of our EV100

In 2021, the Nuremberg Chamber of Industry andcommitment. These emissions totaled approximately

Commerce for Middle Franconia awarded its

194 thousand metric tons of CO2 in fiscal 2021.

“Sustainable Business Parks and Commercial Buildings”
award to the Siemens Erlangen Campus. It was the

By issuing a new motor vehicle fleet guideline andonly project in Erlangen and only one of three in the

expanding our charging infrastructure to currently

region to receive this award, by which the CIC’s expert

1,472 charging points, we have increased the number

jury recognized the campus’s “holistic sustainabilityof exclusively electric vehicles to 656 and the number

concept with extensive employee offerings andof hybrid vehicles to 2,719. Thus, currently aroundmobility concept, as well as the hybrid wood design.”

8 % of our vehicles are pure electric vehicles or at least

In particular, the space-efficient design and greening

hybrid vehicles. We are striving to increase thisof facades and roofs on the campus grounds were

proportion substantially in the coming years on the

singled out for recognition.

way to fulfilling our EV100 pledge.
The headquarters of Siemens Smart Infrastructure in
Another component of our strategy to reduce fleet

Zug (Switzerland) has been under renovation since

emissions is the introduction of a flexible company

May 2021 with the goal of converting it to a CO2-­

car model with battery-electric and hybrid vehicles

neutral site by the year 2023. Investments of approx.

for senior managers. With the aid of an app, senior€63 million are planned to achieve this goal.

managers can switch their company car at any time,change it to suit their needs, or even temporarily

Siemens Mobility Austria has installed a 500-kWp

suspend the use of their company car entirely.

photovoltaics plant at its Vienna-Simmering location,

Reduction of building emissions

110 households or 240 electric cars for a full year.

which will generate enough electricity to power

With regard to building emissions, we want to own
or lease only buildings with no net CO2 emissions byUnder our New Normal Working Model, we

the year 2030 as part of our EP100 pledge. We intend

permanently allow employees to work remotely forto achieve this goal by means of various measures

two to three days per week whenever possible. This

such as building new CO2-neutral buildings,

new policy will reduce emissions from the use of ourmodernizing existing buildings, and leasing officebuildings and from daily commutes, while increasing

space with the lowest possible emissions. When all

the emissions generated by people working fromother measures have been exhausted, we will

home. We calculate the total emissions generated inpurchase high-quality CO2 certificates to offset theCategory 3.7 “Employee Commuting” as 94 thousand

remaining emissions. Currently, 32 Siemens locations

metric tons of CO2 and the emissions caused byhave no net CO2 emissions during regular operations.

working from home as 22 thousand metric tons of
CO2 (use of IT equipment).

SIEMENS SUSTAINABILIT Y REPORT 2021

79

4.1 Climate action

Use of an internal CO2 price

Therefore, emissions from the use phase of ourIn the United Kingdom and Brazil, we currently use

products will continuously decrease over time due toan internal CO2 price to manage our decarbonization

new product generations as well as the continuous

activities. In the United Kingdom, we charged a priceconversion to renewable energy in the users’ markets.

of GBP 31 per metric ton of CO2, using a methodology
based on the recommendations of the “High-­Level

The use of our products sold in fiscal 2021 will cause

Commission on Carbon Pricing.” Most of the proceeds

emissions of 453.4 million metric tons of CO2 in thewere employed to support decarbonization activities

operations of our customers during their anticipatedin the area of heating systems, including theuseful lives, mainly due to the electricity consumed

installation of a heat pump to replace a gas-fired

and the long service lives, given that the emissions

boiler at our factory in Hebburn. In fiscal 2022, theto be generated over the entire assumed useful life

price will rise to GBP 40 per metric ton in order tomust be reported in the year of sale according to the

support the electrification of the motor vehicle fleet.

Greenhouse Gas Protocol. We calculate theseIn Brazil, USD 40 per metric ton of CO2 is charged andemissions by application of the global power mix

the proceeds are used to finance decarbonization

emissions factor of the International Energy Agency

measures.

(IEA). As part of our Science Based Targets, we havepledged to reduce the Scope 3 emissions generated

Upstream emissions
Our

upstream

emissions

during the use phase of our products (Scope 3.11
areapproximately

10.4 million metric tons of CO2 equivalents (million“Use Phase Emissions”) by 15 % from 2019 by theyear 2030.

metric tons CO2e) and are therefore considerably
higher than the emissions in our own business

Our electric motors, which are highly efficient andoperations. This is due to the fact that the operations

have very long useful lives, are the main source ofin our supply chain are usually more energy-intensive

emissions in the use phase.

than our own, primarily because they process raw
materials. In our supply chain, as part of our upstream

The use of trains powered by green hydrogen insteademissions, we have set the goal for Siemensof diesel is one example for the reduction of emissions(excluding SHS) of reducing the CO2 emissions

in the use phase of our products. In the joint funding

generated in our supply chain by 20 % from 2020 byproject “H2goesRail,” the German national railway

the year 2030 and in the long term of having a CO2-

operator Deutsche Bahn and Siemens plan to deploy

neutral supply chain by 2050. A detailed description

a train that can be powered by hydrogen (Mireo Plus H)of our efforts to this end is provided in the chapter

in the Tübingen region in 2024, which will save

Supply Chain.

approx. 330 metric tons of CO2 per year when green

SUPPLY CHAIN.

CO2 emissions arising in the use phase of
our products
We offer our customers highly efficient and long-lived

hydrogen is used.
In manufacturing operations, the use of “SIMATIC
Energy Manager” helps our customers visualize theirproducts that fulfill their function for a long period ofenergy consumption, assess potential energy efficiency

time and are especially dependent on electricity forsavings, and compare key performance indicators

their operation due to our strategic focus on

across production facilities and factories. As a result,electrification,

both energy costs and CO2 emissions can be reduced.

automation,

SIEMENS SUSTAINABILIT Y REPORT 2021

80

and

digitalization.

4.1 Climate action

Portfolio elements mitigate adverse environmental

Emissions from the value chain and savings
by the Environmental Portfolio

impacts and reduce emissions of CO2 and othergreenhouse gases that are mainly responsible for(in millions of metric tons of CO2)

climate change (CO2 emissions).

458.8

The Environmental Portfolio technologies of Siemens
that make the biggest contribution to the overall
reduction of our customers’ CO2 emissions are∼ 42xcomponents for smart and distributed power grids,

87.5

frequency

converters,

rail

transportationofpassengers and goods, and building technology.
10.4

0.6

11.0

The revenues generated on the Siemens Environmental
Portfolio amounted to €19.1 billion in the past fiscal

Upstream
emissions1

Own
operations

Cradle to gate

Use phase andinvestments

Savings from
Environmental
Portfolio1

year. Thus, our Environmental Portfolio accounted for
31 % of our total revenues. In addition, our newly
installed Environmental Portfolio elements helped ourcustomers reduce their CO2 emissions by another otal annual savings of products installed since 2002 by our customers andTstill in use in fiscal 2021.

8.4 million metric tons in fiscal 2021. Including all theEnvironmental Portfolio elements in use by our

Siemens Environmental Portfolio for­climate-conscious product use

customers, we helped our customers reduce their CO2
emissions by 87.5 million metric tons in fiscal 2021.

Our Environmental Portfolio is our biggest contribution

CO2 emission reduction at our customers therefore

to mitigating climate change. It comprises products,

increased compared to the portfolio-adjusted value ofsystems, solutions, and services (Environmental

80.4 million metric tons in fiscal 2020.

Portfolio elements) that meet one of the selection
criteria defined 15 years ago when we began to collectdata on the Environmental Portfolio, such as energy

Results of the Environmental Portfolio

efficiency above a defined threshold value and the use

Fiscal 2021

of energy from renewable sources.
Due to portfolio changes in the direction of

Revenue generated with
the Siemens Environmental
Portfolio (continuing operations, in € billion)

19.1

electrification, automation, and digitalization, not all
portfolio elements that make a positive contribution
to decarbonization, such as our digitalization portfolio
and our energy-efficient electric motors, meet thecurrently

appliedselection

criteria

fortheEnvironmental Portfolio. We are also preparing forGreenhouse gas reductions in
the reporting year at ourcustomers through elements ofthe Environmental Portfolio
newly installed in the reporting
year (continuing operations, inmillions of metric tons)

8.4

the introduction of the EU Taxonomy, which willprescribe a new classification system for sustainablebusiness activities. We therefore plan to revise ourEnvironmental Portfolio in the coming fiscal year toreflect these changed framework conditions. The
savings are calculated by comparison with reference
solutions known as baselines. The Environmental

SIEMENS SUSTAINABILIT Y REPORT 2021

81

Greenhouse gas reductions in
the reporting year through­Environmental Portfolio
products in operation at ourcustomers’ sites (continuing
operations, in millions of
metric tons)

87.5

4.1 Climate action

Just as a declining emissions factor for global power

Shaping climate policy frameworks

generation will reduce our customers’ emissions

Beyond its own measures and activities, Siemens(Scope 3.11 “Use Phase Emissions”) as a result of theparticipates in committees and associations whererising share of renewable energy, it will also lead toit advocates further changes in the climate policy

lower reductions of our customers’ CO2 emissions

frameworks to support the following aspects:

even with comparable increases in energy efficiency.

→ Using energy as efficiently as possible, advancing
More detailed information on our Environmental

electrification, and increasing the share of energy

Portfolio reporting principles is presented in the Annex.

from renewable sources,

Investment-related emissions→ Accelerating the decarbonization of all sectors bymeans of sector coupling, among other measures,

The financing solutions provided by Siemens→ Redesigning energy markets to ensure adequate

Financial Services (SFS) enable infrastructure projects

investments in sustainable, secure, and efficientand technology that make a significant contributionenergy systems,

to decarbonization. Specifically, SFS provides equity→ Accelerating the integration of highly flexible

and debt financing solutions to support projects withtechnologies such as energy storage batteries, ina total installed capacity of more than 25,000 MW oforder to integrate renewable energy while also

wind energy, 12,000 MW of solar energy, andassuring system stability,

480 MW of other renewable energy production→ Implementing a CO2 price in order to integrate(including battery storage) throughout the world.

the actual costs associated with CO2 emissions

To the extent that SFS committed to finance fossil

to set in motion a shift to low-carbon technologies

into business decisions. It should be high enoughfuel generation projects in the past fiscal year, thein line with the pledges made in the Paris

SFS financing contributions correspond to total

Agreement (COP21).

emissions of approx. 5.5 million metric tons of CO2
over the term of the projects (Scope 3.15
“Investments”).

SIEMENS SUSTAINABILIT Y REPORT 2021

82

4.2 Conserving resources

4.2

Conserving resources– Recorded baseline values for the new

Siemens groups its principal strategies, targets, andEco Efficiency @ Siemens environmental

measures for conserving resources and promoting a

program and the DEGREE framework– Equal treatment of primary and secondary

Efficiency” in its DEGREE sustainability framework.

energy in future calculation of energy

That also includes the ambition of reducing landfill

efficiency

waste from operations 50 % from the 2021 figure by

circular economy under the letter “R” for “Resource– Introduction of new waste categories such as2025 and staying on track to reduce landfill wastematerially recycled waste and landfill wastequantities further by 2030. We also want to increase

to support the improvement of the circular

the percentage of waste that can be recovered or

economyrecycled by 2030, and to encourage waste avoidancein the disposal of production machinery. We are also
working to increase our waste efficiency even further.

The “R” for Resource Efficiency indicates that an

These targets are defined for Siemens excluding SHS.

environmentally conscious use of limited resources
is an integral part of the Siemens DEGREE framework.

Alongside the goals of the Eco Efficiency @ Siemens

And the Efficient Own Operations category of the

program, we are actively pursuing resource

Eco Efficiency @ Siemens environmental program

conservation in other areas as well: Further­also situates dematerialization and the circularimportant areas of environmental protection at

economy within the operational context of improving

Siemens AG include recognizing and mitigating water

resource conservation. The focus here is on improving

risks, reducing emissions of volatile organic

energy efficiency and reducing the environmental

compounds (VOCs), and improving biodiversity.

impact of our waste.
Decarbonization and dematerialization necessitate

Efficiently managing global protection of
the environment and resources

using electricity from renewable sources, because

The global goals of the Eco Efficiency @ Siemens

extracting energy from fossil sources inevitably also

program are converted to local targets and measuresmeans consuming finite resources and generatingwith the aid of environmental and energy manage­

environmentally harmful emissions. In this regard,

ment system. All our sites have an environmental

exactly what the energy is used for is not a criticalmanagement system in place. At least 185 of ourconcern. For that reason, we no longer distinguishlocations, 180 of which have been audited by external

between electricity and heat – we consider bothauditors, now have environmental management

forms of energy together when it comes to improving

systems that comply with ISO 14001. Anotherefficiency. And since supplying all our locations’

27 Siemens locations have implemented energy

energy needs from renewable sources will also havemanagement systems compliant with ISO 50001.

implicationsforbiodiversity

andresource

consumption, we’ve set ourselves the goal of

To meet our responsibility to the environment, we not

improving the energy efficiency of our production

only look at our own areas of action, but also assess

sites and offices 10 % from the fiscal 2021 figure

energy efficiency and waste reduction in the supply

by 2030.

chain for energy-intensive products.

SIEMENS SUSTAINABILIT Y REPORT 2021

83

4.2 Conserving resources

We take a holistic approach to air pollution by

To determine energy consumption by our company

analyzing our emissions locally at our office andvehicles, we calculated the consumption of all cars

production sites, and also emissions of volatileused by employees and for services, as well as ourorganic compounds (VOCs) and ozone-depletingtrucks. In fiscal 2021 the company fleet consumed

substances (ODSs) at our most important sites. Our

about 2.66 million gigajoules in fuel. The figure frominternal

now

the previous year was 2.53 million gigajoules. The

implemented these principles on a binding basis;

environmental

standardhas

increase of 5 % can be traced back to the resumptionsome of the terms go above and beyond theof business travel as a consequence of the COVID-19

requirements of local law. For all our sites that havepandemic.

significant energy consumption, we have exploredthe possibility of local power generation to improve

Total energy consumption of Siemens without SHS inenergy efficiency.

fiscal 2021 came to 7,373 million gigajoules. This
consumption will provide the basis for calculating theWater is one of humanity’s most important resources.

energy efficiency of the Eco Efficiency @ Siemens

So for some years now, our company has been

program.

analyzing water scarcity, water pollution, climatechange, and the evolution of flooding andEmissions of air pollutants

precipitation patterns at our sites, and we include theIn addition to the greenhouse gas emissions addressed

results in our business decisions, such as whenin the chapter on climate protection, Siemens alsochoosing a site or adopting precautionary measures.

gathers data on other emissions that result from our

Determining base values for the
Eco Efficiency @ Siemens program in
fiscal 2021

for environmental protection. These “volatile organic

business activities and that are of great significancecompounds” are used as solvents in paints andadhesives, and for impregnation and surface cleaning

Following the successful conclusion of the Serve theprocesses. They are precursors of ground-level ozone,

Environment program, fiscal 2021 represents theand thus contribute to what is known as “summer

base year for the new Eco Efficiency @ Siemens

smog.” Siemens also monitors the use of substances

program for Siemens without SHS. The sum ofthat can potentially harm the ozone layer, to ensure

primary and secondary energy represents the basecompliance with the international Montreal Protocol

figure for calculating future energy efficiency. The

on Substances that Deplete the Ozone Layer, as welllandfill waste from fiscal 2021 will set the base figure

as various national laws.

for assessing our reduction of this waste in the
coming years.

We reduced our emissions of volatile organic

Energy use reduced

to 253 metric tons. This decline can be almost

compounds by another 31 % from the previous year,

The use of primary energy decreased 3 % in fiscal 2021.

exclusively attributed to the sale of gear manufacturer

Consumption of natural gas and liquid petroleum gas

Flender.

also decreased from the previous year; the reduction

substances decreased by 0.05 metric tons of R11

here was also 3 %. Heating needs, on the other hand,equivalent and now come to 0.03 (R11 is one of therose 22 %. Only small amounts of other fossil fuels

many substances that produce ODSs).

were

consumed.

Ourelectricity

Totalemissionsofozone-depleting

consumption

decreased again slightly and is now 5,329 million

We determined the quantity of nitrogen oxides in ourgigajoules. In all, this yields a reduction of 7 % inrelevant thermal processes with the aid of

secondary energy.

computational

SIEMENS SUSTAINABILIT Y REPORT 2021

84

procedures,

assuming

typical4.2 Conserving resources

Primary energy

Secondary energy(1,000 gigajoules)(1,000 gigajoules)

Natural gas/liquid petroleum gas

Fuel oil, coal, gasoline/diesel

Electricity

District heating

3,199 1

3,118

70 1

62

6,036 1

5,329

1,097 1

1,337

Fiscal 2020

Fiscal 2021

Fiscal 2020

Fiscal 2021

Fiscal 2020

Fiscal 2021

Fiscal 2020

Fiscal 2021

Total

3,283 1

3,198

Fiscal 2020

Fiscal 2021

Total

7,133 1

6,665

Fiscal 2020

Fiscal 2021

1 
The extrapolation method was adjusted in fiscal year 2021 and hencefiscal 2020 values adapted. For further information, please refer to thechapter REPORTING METHOD.

Atmospheric pollutant emissions

further subdivided into groups of waste for recycling,
thermal recovery, landfill, and other disposal. These

Fiscal year
(in metric tons)

2021

2020

new categories have been implemented for Siemens,

Volatile organic compounds

253

368

excluding SHS. Waste flows from construction or

Ozone-depleting substances in metric tonsof R11 equivalent¹

0.030

0.085

1 The R11 equivalent is a measure of ozone depletion potential.

combustion conditions. For fiscal 2021 this yieldeda figure of 93 metric tons for our environmentally
relevant sites, compared to 94 metric tons the year
before. This figure includes nitrogen oxides that aredemolition work are reported separately because
these types of waste come about independently fromproduction.

Waste
Waste
(in 1,000 metric tons)

12
Hazardous
waste

released in burning the fuels listed under primaryenergy.

Efficient waste management

Fiscal 2021

The environmental relevance of waste depends on
the type of waste and the method used for its disposal.
We distinguish between hazardous and nonhazardous waste, and between construction anddemolition waste. We modified these waste
categories this fiscal year. We can now distinguishthermal recovery from material recycling. The groupsof hazardous and nonhazardous waste are each

SIEMENS SUSTAINABILIT Y REPORT 2021

85

276

235
Nonhazardous
waste

Total

28
Constructionwaste4.2 Conserving resources

Year-on-year, nonhazardous waste decreased by 9 %.

Water risk analysis

The volume of hazardous waste decreased by 36 %The aim of our water strategy is to minimize thecompared to the previous year. In both cases thisadverse local effects of our water consumption anddecline can be almost exclusively attributed to theuse. Here we take account of such factors as water

sale of gear manufacturer Flender. Construction

scarcity,waterpollution,

flooding,

and

the

waste decreased 76 % over the same period. The

consequences of climate change. For the purpose, we

sharp decrease in construction waste is mainly the

analyzed our environmentally relevant locations

consequence of the partial completion of the Siemens

using the Aqueduct Water Risk Atlas from the World

Erlangen Campus. In all, total waste was reduced 31 %Resources Institute (WRI). With the aid of additional
internal analytical systems, Siemens assesses the risks

from fiscal 2020.

that result on the local level from our sites’ activities
The quantity of landfill waste in waste for disposal

and sets them in relation to regional water risks.

came to 7 kt in fiscal 2021 for Siemens without SHS.

Locations found to have a high risk in this assessment

This is the base value for our ambition under DEGREE

must set targets to reduce it. In fiscal 2021, 84 % of

and Eco Efficiency @ Siemens of reducing our landfill

our locations had implemented this water strategy.

waste 50 % from the current fiscal year’s figure by 2025.

The data shown do not include SHS. The percentage

Recycling and recovery

decreased from fiscal 2020 because additional
locations were included in our environmental
reporting. As part of our regular review of all water

Recycling and Recovery

risk assessments, the water risk analyses for these(in %)

newly included sites will be performed in the coming
fiscal year, and the Siemens water strategy will be put
into action there.
Fiscal 2020

Fiscal 2021

Total

Total

93

92

84 %1

Share of recycling andrecovery in total waste1
1

of our locations have implemented
a water strategy

Excluding construction waste.

The amount of materials recycled from waste as a

Our total water consumption decreased 2 % from thepercentage of total waste came to 83 % for Siemens

previous year and is now 15.05 million m3. The largest

without SHS. All figures exclude construction waste.

share of our water consumption is for cooling

We plan to increase the percentage of recycled waste

processes. These processes leave the water’s chemicalin the years to come. The quantity of recycled wastequality largely unchanged, so that the water can befrom fiscal 2021 will provide the base figure for thisreturned directly to the receiving water body or

purpose.

groundwater.

The rate of recycling and thermal recovery remained1almost unchanged, and is now 92 %.

SIEMENS SUSTAINABILIT Y REPORT 2021

86

Without Siemens Healthineers4.2 Conserving resources

The total volume of wastewater, excluding chemically

Initiatives for greater biodiversity

unchanged cooling water, came to 4.6 million m3 in

Biodiversity is the variability among all living

fiscal 2021. This is equivalent to a decrease of 9.6 %organisms from all sources and all the ecologicalfrom fiscal 2020. Most of the wastewater, excluding

complexes of which they form a part. Whenchemically unchanged cooling water, is sewage. The

biodiversity declines, ecosystems and their benefits

reduction in sewage wastewater can be partially

are threatened, which poses a threat to society’s w­ ell-

attributed to the sale of gear manufacturer Flender.

being and has an adverse impact on human health.

Additionally, the sale caused a substantial reduction

Biodiversity is an important aspect of Siemens’of cooling water discharged as wastewater.

environmental management, and many locations are
pursuing measures to promote biodiversity. To further
raise awareness of aspects of biodiversity, in the past

Water withdrawal

fiscalyear

experts

prepared

severalvideo

presentations for our people, our people prepared

Fiscal year
(in million cubic meters)

2021

2020

and distributed internal informational materials for

Other water withdrawal

4.54

5.07

Biodiversity and Environment Day, our people wereencouraged to take action on their own, and a

Cooling water (flows heated,but chemically unchanged backinto the receiving water system)

10.51

10.26

Total

15.05

15.33

corporate biodiversity site was set up on the intranet.
The new site includes information and contacts for
local initiatives, shown on a virtual map. The initiatives
have given rise to a great many activities, such as
setting up nest boxes for wild bees, planting insect-Wastewater

friendly meadows, supporting birds’ nesting, planting(in million cubic meters)

10.51
Cooling water(flows back heated but
chemically unchanged into
the receiving water)
2021

4.55
Total wastewater
without chemicallyunchanged cooling
water

15.06
total

and preserving forests, and preserving existingbiodiversity in planning and carrying out construction
work, as we have done for instance at our new
campus in Erlangen.

Incidents relevant to the environment,
and fines
Siemens uses a worldwide reporting system todocument environmental incidents. In fiscal 2021 werecorded 14 minor incidents: These involved spills ofdye, diesel, hydraulic oils, or resins. Furthermore,
5 losses of coolants were reported and a minor fine.
For more information about the methods used,environmental reporting, and environmental datacollection, see the chapter

SIEMENS SUSTAINABILIT Y REPORT 2021

87

REPORTING METHOD.

4.3 Product stewardship

4.3

Product stewardship– Robust Eco Design to increase resource
efficiency throughout the life cycle

specifications for the environmentally friendly designof the products and solutions of its business units.

– Extensive revision of the Siemens Standard

The implementation of this standard is thefor the environmentally friendly design ofresponsibility of the heads of the operating businessproducts and solutions– Clear commitment to material efficiency byunits and is an integral part of the annual
environmental review according to ISO 14001.

increasing the proportion of secondary raw
materials, reducing substances of very highIn the development of our eco design approach, weconcern, and paying attention to recyclability

focus mainly on increasing the resource productivity

in product designof our solutions in the applications of our customers
by striving for the optimal interaction of products andEnvironmentally friendly product designon the basis of established standards

services throughout the life cycle. We currently see
increasing the efficiency of manufacturing andinfrastructure solutions as the most effective lever for

The rising expectations of society for corporate

reducing environmental impacts. Other strategic

environmental responsibility have led to stricter

aspects of our environmentally friendly productlegislation, but also increasing demands on the part

design relate to the specification of requirements forof our customers and investors. This trend has also

the production and material composition of products

increased the strategic importance of eco design,and solutions aimed at improving recyclability inmeaning the consideration of environmental aspects

order to continuously optimize material efficiency

in the design of products, services, and solutions

over the entire product life cycle.

throughout the life cycle.
This approach is embedded in our new Siemens
DEGREE framework as “R” for Resource Efficiency.
Accordingly, we strive to refine our eco design

We focus on resource efficiency
over a product’s entire life cycle

approach by intensifying the use of life-cycle
assessments and environmental product declarations,and by paying greater attention to service andrecycling aspects in designing our products. Our

The environmental impacts of products, services, andambition is to apply the extended “Robust Eco Design”

solutions are largely decided already in theapproach to all products, services, and solutions byspecification of design requirements. Fundamental

the year 2030 in order to increase the number of life-

eco design approaches at Siemens include increased

cycle assessments and environmental productresource efficiency and decarbonization in production,

declarations, raise the proportion of secondary

increased productivity and efficiency during use, andmaterials, and improve recyclability. Siemens

product construction designed to improve recyclability.

therefore also espouses the European Green Deal, theIn accordance with the international standard

goal of which is to transition to a modern, resource-

IEC 62430, Siemens enforces its own global

efficient, and competitive economy. The European

environmental standard, which comprises binding

Commission presented an action plan for the circular

SIEMENS SUSTAINABILIT Y REPORT 2021

88

4.3 Product stewardship

economy in March 2020. This document shows how

When a product, service, or solution meets all the

products can be designed more sustainably, supports

criteria, it is deemed to fulfill the principles of “Robust

circular economy processes and sustainable consumer

Eco Design” (RED), meaning a design that fulfills bothbehavior, and also aims to prevent waste and keepbusiness and environmental requirements. To thisresources in circulation for as long as possible byend,

productsareassigned

totechnicallymeans of recycling. The EU has enacted a ban on

homogeneous product families in the business units

disposable plastic products with the goal of reducing

and checked against the RED criteria. A given

waste quantities in the medium-term future. As of

homogeneous product family could meet the criteria

July 2021, the law prohibits the production of certainin full or in part or not at all. If a criterion is completely

disposable plastic products in the EU. These issues

fulfilled, all revenue generated on the product ishave now been taken up by Siemens and are being

attributed to fulfillment; if it is only partially fulfilled,addressed in a dedicated Green Deal project.

Exercising product stewardship with
DEGREE and the environmental program
Eco Efficiency @ Siemens

only 25 % of revenue is classified as such; if it is not
fulfilled at all, the corresponding revenue isdisregarded. Based on the degrees of fulfillment of
the individual RED criteria, the average value isapplied as the RED implementation degree of the

Toward the goal of product stewardship as it relates

given product family. The revenue share of the RED-

to environmental protection, the comprehensive

conformant portfolio is then calculated by multiplying

environmental program Eco Efficiency @ Siemens

the RED implementation degree by the revenues ofsets particular priorities in the categories of “Robust

the given product families. The implementation

Eco-Design” and “Clean Supply Chain.”degree KPI for “Robust Eco Design” is calculated as theratio of the total RED-conformant revenue shares to

The principal idea behind “Robust Eco Design” is to

the total revenues of the relevant product families.

assess and improve the environmental impacts of ourOur goal is to embed “Robust Eco Design” in the life-

products, solutions, and services on a sound,cycle management processes for all relevant productcomprehensive basis. To this end, the following

families by the year 2030, with a current focus on

criteria are applied systematically:tangible products such as hardware, for example. In
2021, the share of revenues generated on relevant→ Use perspective: In portfolio and product lifecycle

management,

theproduct families that meet the criteria of “Robust Eco

environmental

Design” was 55 % and the “Robust Eco Design”

performance of relevant product families is(without SHS revenues and internal services such as

assessed from the perspective of use, the market,

real estate) implementation degree was 26 %.

and customers by incorporating questions
regarding environmental requirements for

The “solid foundation” criterion of the “Robust Eco

homogeneous product families into customer

Design” approach also goes beyond the previous

surveys, among other steps.

requirements

forlife-cycle

assessments

and→ Solid foundation: The quantitative assessment ofenvironmental product declarations insofar as thethe environmental impacts of relevant productfulfillment of this criterion now also requires

families is applied as the basis for eco design

application at the level of product families. For thecharacteristics and environmental productcurrent orientation of the “Robust Eco Design”

declarations.

approach, coverage by full-scale life cycle assessments→ Materials reduction: The principles of materials(for purposes of “solid foundation”) and environmental

reduction such as attention to repairability,

product declarations (as environmental statements)

reusability, and recyclability are reflected in theplay a role at the product family level and form part ofrequirement specifications.

the RED KPI.

SIEMENS SUSTAINABILIT Y REPORT 2021

89

4.3 Product stewardship

Eco Efficiency @ Siemens Robust Eco Design approach

Manufacture·	Operational
resource efficiency·	Less waste / higher
energy efficiency
Sales / Service·	Substantiatedenvironmental
claims· Repairability· Reusability·	Retrofits &Refurbishment

Procurement·	More secondary
material·	Fewer substancesof concern

Planning

Use· Durability·	Resource
productivity &Energy efficiency· Upgradeability

Restoration / ­Recycling· Recyclability·	Suitability for
Remanufacture

Reuse·	Reusability· Repairability

Another essential aspect of the “Responsible Productreduce the share of our revenues generated on

Development” program category is systematic

products that contain substances of very high concern

surveys of customers to determine their challenges

for environment and health by the year 2030. Withand the environmental protection requirements ofregard to secondary materials, we focus on suppliers

their applications. To this end, questions on thisof raw materials and semi-finished products made ofsubject will be added to the customer satisfaction

metal and plastic who can be directly influenced bysurveys by the year 2030 in order to develop

way of appropriate specifications.

innovative solutions to help reduce adverse
environmental impacts in the future.

For metals with a main mass consisting almost

The tasks in the program category of “Clean Supply

a proportion of 38 % in the past fiscal year. This

entirely of iron, copper, and aluminum, we calculated
Chain” are directly derived from the “material

proportion is calculated as the weighted average ofreduction” criterion of the “Robust Eco Design”

the shares of secondary materials in the three above-

approach. Our goals are to increase the proportion ofmentioned metals on the basis of regional or global

secondary materials for metals and plastics andaverage values derived from the literature. For

SIEMENS SUSTAINABILIT Y REPORT 2021

90

4.3 Product stewardshipplastics, the proportion of secondary materials is lessprogram. In addition, internal IT methods andthan 1 % because suitable recycling chains have notprocesses have been continuously adjusted with theyet been fully established for technical plastics.

goal of taking a more proactive and safe approach toMoreover, the corresponding product specifications

the use of materials and substances and in order toand standards have been upgraded.

more efficiently fulfill the declaration requirements
such as those of the EU SCIP database and IEC 62474.

Another essential aspect of a “Clean Supply Chain” isthe reduction of substances of very high concern,

Currently, up to 67 % of our sales (without sales ofsuch as declarable substances, which will be explained

SHS) are still achieved with products that containin greater depth in the next section. All targets

substances or substance groups listed among thementioned above must be achieved in order toregulated substances according to IEC 62474. Thisdecisively improve resource efficiency and reducetransparency enables us to take continuous action toenvironmental impacts. We are working on this goal

initiate their replacement, whenever this is technically

together with our business partners.

possible and reasonable.

Examples of solutions to increase resource efficiency at Siemens

SIHARBOR
port

Digital industries (DI) / Large
Drives Applications (LDA)
provide a solution for energy
supply for ships at ports toimprove air and noise
pollution

MindSphere
IoT Platform

Easy Sparovation Part

energymanagement

Rail spareparts

DI solutions make customers
assess and improve theirenergy consumption

Additive manufacturing ofspare parts improves material
efficiency
andproduct
weight,implements,
circularity, reduces CO2
footprints.

Siveillance
Access Mobile
access solutions

Smart Infrastructure (SI)develops digital key software
as a service solution to
support its customers inbecoming more resource
efficient

Risk-conscious handling of declarable
substances“reThink:Plastic@Siemens”
In view of the greatly increased use of plastics in a

Another essential aspect of product stewardship is

wide range of applications, Siemens has decided to

the responsible handling of problematic andaddress this issue with a strategic initiative known aspotentially harmful substances, such as those“reThink:Plastic@Siemens” in order to make aregulated by the EU REACh Regulation. Under thecontribution to the responsible, sustainable use ofearlier “Product Eco Excellence” (PrEE) program, weplastics as part of the company’s commitment toestablished important foundations for the digital,

product stewardship. In the analysis conducted underautomated, and therefore efficient data processing

this initiative, we found that plastics are being usedof the corresponding substance data by fiscal 2020.

more and more for technical and economic reasons,

For example, the level of usage of the industrial

but they also offer ecological advantages compared

substances data platform known as BOMcheck by ourto other materials in most cases. A detailed analysis

suppliers has been increased as part of the PrEEof the plastics used by Siemens generally shows that

SIEMENS SUSTAINABILIT Y REPORT 2021

91

4.3 Product stewardshipa distinction must be made between the use oftechnical plastics in products with average life cyclesof 10 to 30 years and the use of basically disposable
plastics used in packaging, for example. The use ofplastics in packaging was analyzed in detail andconfirmed in fiscal 2021. It was shown that plastics
used in transport usually generate lower environmental impacts such as CO2 emissions, forexample, due to the lower weight of such plastics
compared to other materials. The results of thisanalysis were also incorporated into the Siemens
Environmental Standard and will now additionally be
tracked in a software in order to provide even more
effective support to the environmentally friendly
design of packaging.
As part of the “Robust Eco Design” approach, thecompany strives to increase the proportion of
secondary raw materials in the technical plastics usedin the company’s products.

SIEMENS SUSTAINABILIT Y REPORT 2021

92

Page 93 – 112

SocialContribution topeople and society

EquityEmployability

foster diversity, inclusion, andenable our people to stay resilient

community development to create aand relevant in a permanently

sense of belonging

changing environment

Our key ambitions:

Our key ambitions:→ 30 % female share in Top Management by 2025

→ Double digital learning hours by 2025

→ Access to employee share plans: maintain high→ Access to employee assistance program: maintainlevel and expand globally to 100 % 1→ Global commitment to the New Normal Working

high level and expand globally to 100 % by 2025
→ 30 % improvement in Siemens’ globally aggre-

Model 2gated LTIFR 3 by 2025

Additional topics:

Additional topics:→ Support for our people through attractive
employer benefits and offers
High appreciation for diversity through→ “Diversity Charter”→ Social engagement with three strategic
priorities

of a company-wide growth mentality
qualified→ Wide range of opportunities for career
entry and qualification
Healthy and Safe @ Siemens program→ 

1 Where legally possible and reasonable.
2 
For employees with job profiles that make this possible and reasonable.
3 
LTIFR: Lost Time Injury Frequency Rate (of Siemens employees andtemporary workers) baseline FY 2020.

SIEMENS SUSTAINABILIT Y REPORT 2021

→ “MyGrowth” program for the development

93

introduced

5.1 Working at Siemens

5.1

Working at Siemens– Global values and global corporate culture

best to help our company and our customers. An– 303,000 1 employees worldwide

integration-minded,– Supporting our people by offering attractive

approach and corporate culture will play a crucial role

benefits

empowering

managementin achieving continuous transformation. These
factors will provide guidance, and should build astrong sense of belonging, along with a safe

The COVID-19 pandemic showed us that companies

environment. To manage the challenges that

may suddenly and unexpectedly be faced withtransformation presents, a growth mindset issignificant new challenges, which at the same timeessential. That includes maintaining a lively curiosity,

may sharply accelerate the digitalization process.

staying resilient, experimenting and adapting. We

Hybrid workplaces, questions of work-life balance,

want to support our people in remaining resilient as

and the need to work with partners and acrosspeople and relevant as skilled workers. That calls fordifferent ecosystems will all become more and moredeveloping generic capabilities, accepting change,

important. To deal effectively with this transformation,and learning how to learn, as well as keeping our skills

we aim to build a corporate culture at Siemens that

continuously developing.

can take change for granted.

We rely on gifted people and a growthmindsetWe’ve combined all this in our HR aspiration: toadvance an integrative, enabling culture for theupcoming transformation that ensures lasting

Finding solutions for these challenges is what inspires

business success and long-term employability for ourour aim to #TransformTheEveryday, and is the key topeople. We constantly invest in all levels of training

our company’s sustainable success. To achieve thatfor our workforce, support their willingness togoal, Siemens is concentrating on its four strategic

experiment and learn, and help them develop apriorities, two of which are especially important for

personal growth mindset.

human resources (HR): empowered people and a
growth mindset. This focus on people highlights the

DEGREE is linked to our HR goals

fact that our company’s future success is closely

We have adopted ambitious goals with our DEGREE

intertwined with the success of our people.

sustainability framework. The three “E” in DEGREE –We are in the midst of a cultural change at ­Siemens

the highest priority for the Siemens HR system.

Ethics, Equity and Employability – are the fields within which we want to empower all our people to ask
questions, take risks, and do what they think will be1

 ll employee figures in this chapter refer to the headcount andA
includes Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021

94

SIEMENS AT A GL ANCE

5.1 Working at Siemens

Promoting a culture of trust in the realand digital worlds→ The Werner von Siemens Award is given in six
different categories to honor achievements that

Our values and ethical standards for doing businesshave had a positive impact on Siemens andare anchored in our Business Conduct Guidelines

beyond. Elements of our DEGREE framework are(BCGs). Our BCGs define the basic principles andan integral part of the Werner von Siemens

rules for our conduct both inside and outside theAward. In 2021, the trophies were presented tocompany, and are binding for all our employees,

teams that have enabled our customers tomanagers, and top management alike, worldwide.

transform

theirindustries,

contributetotechnological innovation, serve as a role model

COMPLIANCE

in digitization, or participate in an initiative
Based on this culture of trust, we place fair treatment

characterized

and respect at the heart of our value system. Our

responsibility. More than 7,500 employees

aim is to treat everyone fairly and respectfully,

participated in this competition in 2021, andregardless of skin color, ethnic or social background,submitted 413 entries.

religion, age, disability, sexual identity andorientation, world view, or gender.

HUMAN RIGHTS.

Our goal is to be the employer of choice – which is
supported by our top employer ranking of various

byingenuityandsocialSiemens employee share program
strengthens identification with thecompanyorganizations worldwide and reflects diversity,

Employee-share ownership is an integral part of the

inclusion and a sense of belonging.

Siemens DEGREE framework: We aim to maintain
access to our employee share program at the 98 %To highlight our culture of trust and empowerment,

level and expand it globally to 100 %.2 Owning a stake

we are pursuing two initiatives that concentrate onin the company is intended to motivate our people tounderstanding our people’s experiences and taking

take personal responsibility for their own actions. This

them into account, and on recognizing our people’sownership culture has a long tradition at S
­ iemens.

achievements:

The first profit-sharing program was introduced back

→ We use the results of our Siemens Global

which has been offered annually since 2008, is one

Employee Survey (SGES) at regular intervals toof the largest employee share programs in the world.

assess the efficacy and success of our actions,

More than 100,000 employees invested in their

and

for

company in 2021, which means that almost 45 % of

improvement. In January 2021, we had a 67 %all eligible employees participated. 3 In addition,

response rate to the SGES. The average level ofSiemens AG distributed around 490,000 free bonus

in 1858. Today, the global Siemens share program,toderiveanynecessary

steps

1

approval for relevant aspects such as innovation,

shares to employees in the past fiscal year as part ofdiversity, transparency, and management was

the global share program.1

above 77 %.1
Siemens Healthineers has its own share program that
it offers to its employees.
1 Excluding SHS.
2 Where legally possible and reasonable. The DEGREE target does not
apply to SHS.
3 Excluding SHS. Participation is open to all employees who were
employed by a participating Siemens subsidiary on October 1 of theprevious calendar year and who continue to be employed at a participating Siemens subsidiary at least until the last day of the applicableoffer period. Members of the Managing Board are excluded.

SIEMENS SUSTAINABILIT Y REPORT 2021

95

5.1 Working at Siemens

Employee structure and development

The percentage of dismissals – as a percentage of all

As of September 30, 2021, Siemens employedemployee exits – was 11 % in the reporting period,

303,000 people around the world. That represents

compared to 15 % for the previous year. All otheran increase of about 10,000 employees fromdifferences result from changes in the basis of

September 30, 2020; 56 % of all employees were inconsolidation and other changes.

Europe, the Commonwealth of Independent States(CIS), Africa and the Middle East, 21 % were in North

Siemens employee hires

America, Central America and South America, and 23 %Fiscal year

in Asia and Australia. Out of our total workforce, 94 %(in thousands)

2021

2020

have permanent contracts. In Asia and Australia,

Siemens

34.4

25.2

around one-fifth of the contracts are temporary, while

Europe, C.I.S.,¹ Africa, Middle East

13.7

11.7

in the other regions more than 95 % of our employees

Americas

10.6

7.5

Asia, Australia

10.1

6.0

have permanent employment contracts.

1 Commonwealth of Independent States.

The percentage of women in the total workforce is
27 %.

Women hired
Siemens employees

Fiscal year

(as a % of total number of employees)

September 30, 2021

(as a percentage of new hires)

21 %Americas156 %Europe, C.I.S., 1
Africa, Middle East

2020

Siemens30

30Europe, C.I.S.,¹ Africa, Middle East29

29

Americas33

32

Asia, Australia

29

29

Commonwealth of Independent States.

303,000
Total

23 %
Asia,
Australia

27 %Employee turnover rate ¹
Fiscal year
(in %)

2021

2020

Employee decision

4.7

3.5

Other reasons for exit

5.0

4.8

Total

9.7

8.4

1 Employee turnover is defined as the ratio of voluntary and involuntary exits from
Siemens during the fiscal year to the average number of employees.

Proportion of womenas a percentage of
total employees
12021

Working hours and working time arrangements

Commonwealth of Independent States.

Average standard weekly working hours¹
September 30,

Hires and exits(in hours)

The number of new hires increased by approximately

Siemens

36 % compared to fiscal 2020, while the number ofEurope, CIS, Africa, Middle East

38.0

37.9

exits increased by 17 %.

Americas

41.0

41.1

Asia, Australia

41.9

41.5

2

1 
Contractual weekly working hours.
2 Commonwealth of Independent States.

SIEMENS SUSTAINABILIT Y REPORT 2021

96

2021

2020

39.5

39.3

5.1 Working at Siemens

Employee benefits and opportunities fortoday and tomorrow

Use of working hour programs at Siemens
September 30,(in thousands)

2021

2020

Part-time

13.8

13.9

Employees on leave or absence

6.3

6.2

Amid a constantly changing world, we continuously
compare the employee benefits and opportunities weprovide, and revise them so that we can offer flexible
benefits programs that will support our people’s
physical, mental, financial, and social well-being,

Changes in age distribution

both today and tomorrow. The Siemens benefits

The distribution of employees by age group remained

programs have the target of enabling our people toalmost unchanged from the previous year. The averagerealize their full potential and strengthening theirage in the reporting period was 42 years.

resilience with a variety of insurance policies, support
benefits, retirement arrangements, and elective

Age structureplans. To understand the constantly changing, diverse(as a percentage of total employees)

Siemens

September 30, 2021
< 35

35 – 4445 – 54

> 54

30 %

30 %

23 %

17 %

needs of our global team and their families, we watch
the external market and track the latest trends andinnovations in our industry and we keep an eye tosustainability.

Europe, C.I.S.,¹
Africa, Middle East

25 %

28 %

26 %

20 %

Americas

26 %

26 %

25 %

24 %

44 %

Asia, Australia

38 %

15 %

Pensions 1
We offer defined benefit and/or defined contribution3%

pension plans. The largest pension plans are in
Germany, the United States, the United Kingdom,1

and Switzerland. Contributions and amounts

Commonwealth of Independent States.

recognized as expense for state plans and definedCommitment to fair pay

contribution plans came to € 1,932 million in

We want to guarantee fair pay (coverage of basic

fiscal 2021. Of this figure, amounts recognized asneeds) at least in accordance with the statutory

expense for defined contribution plans were

national minimum wage. Subject to national€ 484 million. Contributions to state plans came toregulations, Siemens adheres to the principle of€ 1,449 million. Employer contributions to defined“equal pay for equal work,” for instance equity inbenefit plans amounted to € 2,041 million. The

wages for women and men with the same job profile/company’s major defined benefit plans are fundedsame role.

with assets in segregated entities. In accordancewith local laws, these plans are managed in the

We also review pay parity at regular intervals, so as tobeneficiaries’ interest by way of contractual trust

eliminate unjustified differences (with the same job

agreements with each separate legal entity. The

profile,anddefined benefit plans cover 442,000 participants,

performance, etc.), as further testimony to our

including 178,000 actives, 84,000 deferreds withunwavering commitment to fair payment forvested benefits, and 180,000 retirees and surviving

employees. In 2021 we reviewed our 21 largest

dependents.

role,

competencies,

experience,

countries (selected by revenue) on the basis of ourdefined, market-based pay parity methodology. We areworking with the companies in these largest countries
to establish a long-term cultural change in support ofour targets.

SIEMENS SUSTAINABILIT Y REPORT 2021

97

1 Figures comprises the total of continuing and discontinuing operations.

5.1 Working at Siemens

The Siemens Group also takes a sustainable approach→ With mobile working within this New Normal, weto the oversight of the pension investment process,want to motivate our people, improve the com-

applying an ESG framework.

pany’s performance, and strengthen ­Siemens’
profile as a flexible, attractive employer. Mobile

Siemens Pensionsfonds AG has been a PRI signatory

working and flexibility of work location in thesince 2020. All asset managers must be PRI

hybrid New Normal Working Model (2–3 days ofsignatories and be able to provide evidence of anmobile work per week as a worldwide standard

ESG policy. ESG factors are integrated into theoffering for our people) also strengthens our abil-

investment process. Siemens Pensionsfonds AG

ity to attract and retain the best talent for S­ iemens.

1

invests selectively in liquid asset classes, with a focus

Our DEGREE ambition of global commitment toon companies that have an above-average ESG

the New Normal Working Model supports this aim

rating (best-in-class approach). Among the key

worldwide.4

elements of the ESG reporting are ESG scores andthe portfolio’s carbon footprint.

→ We also encourage balance of work and caregiving relatives. Siemens is well aware that thisconcern is growing in importance, and we sup-The internal asset manager, Siemens Fonds Invest

port our people in Germany who provide care forGmbH, has also been a PRI signatory since 2020, andfamily members. We offer these people various

has adopted its own ESG policy to define how ESG

support options through the Elder Care program.

factors are treated in the investment process.

This program is based on four pillars: time off

Siemens Fonds Invest GmbH is working on

work and flexible working, communication,

converting all its publicly traded funds (UCITS ) into

counseling, and training in health matters.

2sustainable Article 8 funds under the EU Disclosure
Regulation 3.

Childcare at Siemens
As part of its family-friendly corporate policy, for

Work-life balancefiscal year 2021 Siemens AG supported its people in

There is an increasing desire for more flexibility andGermany with a general tax-free childcare allowance

more individual solutions depending on phase of lifeof up to € 100 per calendar month per child for thewhen it comes to organizing working hours and work

care of preschool-age children at a kindergarten or

location. For this reason, we offer our people flexible

similar establishment. In addition, Siemens AG grants

working models, which are structured according to

its part-time employees in Germany (15-30 hours per

the local requirements in their various countries, andweek) a further tax-free childcare allowance during

in ways compatible with the employees’ roles.

parental leave. For fiscal 2021, this amounted to up

Examples include mobile working, part-time hours,to € 500 per child per calendar month for childcaresabbaticals, time-outs, parental leave, and partial

at a kindergarten or similar establishment, forearly retirement.

children up to 14 months of age.

→ Mobile working will establish itself after the pan-For our people in Germany, there are also further

demic as the core element of a New Normal andoptions, such as around 1,500 5 childcare places, apromote a sustainable work culture and working

summer vacation childcare program, and parent-childenvironment

health retreats.

THE COVID-19 PANDEMIC .

1 Principles for Responsible Investment.
2 Undertakings for Collective Investments in Transferable Securities.
3 EU 2019 / 2088.

SIEMENS SUSTAINABILIT Y REPORT 2021

98

4 For employees with job profiles that make this possible and reasonable.
The Siemens New Normal Working Model is not offered at SHS.
5 Excluding SHS.

5.1 Working at Siemens

As a future-oriented company, we have a responsibility

Our talent programs for individual careerpaths

to actively consider and shape the influence of current

Through a focused integration and development ofand future trends on our people, our work, and ourthe next generation of leaders, we make a sustainable

working environment. This is what lies at the heart

contribution toward a diverse, agile managementof the #FutureOfWork initiative. In order to tackle

team, and thus to the transformation of Siemens.

The FutureOfWork@SIEMENS initiative

structural change, it engages with two essential
questions: HOW will we work in the future→ The Siemens CEO* Program is an exceptional(#NewWork), and WHAT will we work on in the future

opportunity for outstanding candidates in the(#NextWork)?

field of general management. By specificallydeveloping their leadership skills and their global→ #NewWork includes making organizations more
flexibleanddeveloping

individualandorganizational adaptability, such as agile formsof organization and forms of collaboration,

networks, the program prepares participants for
future management responsibilities, especially infast-growing digital business models.
→ The Siemens Finance Excellence Program (FEP) is

leadership, and flexible working conditions.

a finance leadership program and a stepping→ #NextWork addresses the existential question ofstone for future leaders in finance who have a

our future jobs, namely which activities and roles

digital mindset. All FEP associates are assigned awill exist tomorrow and beyond – both inside andpersonal mentor from among Siemens’ financeoutside our company. In this context, we identify

leadership team, accompanied by custom-­the capabilities needed to enable an organization
as a whole, but also our individual people, toprepare for the work of tomorrow.

tailored development programs.
→ The Siemens Graduate Program (SGP) is aninternational trainee program that offers apersonalized career path for ambitious “masterTo succeed, this collaborative design of #NewWork

graduates,” with a customized development trackand #NextWork must rely on a cultural change thatandcan only be brought about through the cooperation

throughout the company.

of all our people.

SIEMENS SUSTAINABILIT Y REPORT 2021

99

excellent

networking

opportunities

5.2 Diversity, Equity & Inclusion

5.2

Diversity, Equity & Inclusion– Focus on strengthening sense of belonging– “Diversity Charter” reinforces respect for­diversity– A DEGREE ambition: 30 % female share in Top
Management by FY25

A global strategy with local
implementation
We have been working for years now to build adiverse, equitable, inclusive corporate culture – andhave had measurable success, for example on the1share of women in management positions globally.
In past years we established a global Diversity,
At Siemens, we make a practice of transforming daily

Equity & Inclusion network, which is active in manylife – for our customers, our people, and society atregions of the world. Working with our Chieflarge. But this transformation also means committing

Diversity Officer (CDO), the global Diversity,

to diversity, equity & inclusion. To us, diversity stands

Equity & Inclusion Office provides support andfor the inclusion and interaction of different ways ofassistance for a great many activities.

thinking, backgrounds, experiences, skills, andindividual qualities across all levels and dimensions

Siemens AG and the company’s Central Worksof the company. Equity is an integral part of ourCouncil have adopted a Diversity Charter for

corporate culture. Inclusion enables every voice to beGermany. It provides an anchor for the strategic

heard and get involved. The sense of belonging

relevance of diversity, as well as the key principles

strengthens our people and taps hitherto unused

by which diversity can be appreciated.

growth potential for everyone. In a nutshell, thismeans: #BelongingTransforms.

Through sponsorships and strategic partnerships,
we are also involved in other formats and initiatives,

We actively promote diversity, equity, and inclusion

such as the “Charta der Vielfalt” diversity charter andby creating a working environment that is open andthe “Chefsache” initiative.

appreciative for all. Our commitment to human rights
is anchored in the Siemens Business Conduct

We continually assess how well these measures are

Guidelines (BCGs). We do not tolerate discrimination

succeeding and revise our initiatives to enhanceof any kind. The guidelines clearly state: “We respect

diversity further. We employ key figures such as thethe personal dignity, privacy, and rights of eachpercentage of women, generations, and nationalities

individual.“ They also make it clear that Siemens is

as a way of regularly monitoring the efficacy of ourcommitted to maintaining a workplace that is open

workforce diversity initiatives. In 2021, Siemens

to everybody regardless of ethnic origin, culture,received a great many diversity prizes and awards all

religion, age, disability, skin color, gender, sexual

over the world, including “Forbes Magazine’s Best

identity and orientation, or world view.

Employers for Women” and a “100 % rating from the1 Not applicable to SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

100

HUMAN RIGHTS

5.2 Diversity, Equity & Inclusion

Disability Equality Index” in USA, and “Human Rights

Women in the workforce

Campaign Foundation – Mejores Lugares Para Trabajar

In 2021, the percentage of women in the workforce

por Equidad LGBT“ in Mexico.

at Siemens is at 27 % 1.

Pride@SIEMENS: Network for
the LGBTIQ* community

Employees in management positions 1
September 30, 2021

Siemens supports the UN initiative for global
LGBTIQ* Standards of Conduct for Business. Many
locations fly rainbow flags, especially in the week
before Christopher Street Day. This is how Siemens
takes a stand and commits to “color for more
openness,” a signal to all that we welcome everyone,whatever their sexual orientation. On top of that,since 2018 every Siemens social media channel has
been rainbow-colored throughout Pride Month. We

Employees in management
positions

29,900Percentage of female employees
in management positions

19.6 %

1 Employees in management positions include all managers withdisciplinary responsibility. Varian included.

also provide ways for our LGBTIQ* people to networkwith each other around the world. Just one example

We aim to keep expanding gender equality. Our

is Pride@Siemens, a network for our people who

commitment to advancing women at all levels of theidentify as lesbian, gay, bisexual, transsexual, or

company is not limited to complying with statutory

intersex, and for their allies.

or regulatory requirements. For instance, we aim toincrease the number of women in top management 2
to 30 % globally by September 30, 2025.3 We arealso pursuing a variety of initiatives, programs, andmeasures to advance a cultural change toward gender
parity, diversity, and integration. Among the manydifferent women’s networks around the world are:

1 Varian included.
2 This does not affect local or company-specific diversity targets andrequirements set by law or regulation. More details about the targets
and staffing requirements that apply to Siemens AG, as well as thediversity concepts that are being pursued for the Supervisory Board andManaging Board of Siemens AG, can be found in the annual “Corporate
Governance Statement” available on the Siemens Investor Relations
website, under the “Corporate Governance” heading.
3 Not applicable to SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

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5.2 Diversity, Equity & Inclusion→ Leading Women in Industry (LWI): The in-house

The Ability@Siemens initiative aims to promote a

LWI network is committed to helping placeculture of integration for the around 5,000 disabled

women in more management positions. We

employees currently working at Siemens in Germany.

advance this mission with strategic fields of

It is based on a groundbreaking inclusion agreement

action such as flexible working hours, mobile

with the General Representative Board for Disabledworking, and individual career development.

Employees.1→ Global Leadership of Women@Technology &­Innovation (GLOW@TI): This in-house network for

Siemens also supports the worldwide #PurpleLightUp

women with a background in science aims to

movement, which honors the economic contribution

promote careers for women.
→ GROW2GLOW:The

GROW2GLOW

of working persons with disabilities all over the world,

network

as a signal of respect for the International Day ofprovides business coaching for women as a way

Persons with Disabilities (IDPD) proclaimed by theof helping them realize their full potential.

United Nations, celebrated on December 3 each year.

Inclusion of persons with disabilities

In 2021 Siemens also joined the Valuable 500 – an

Siemens advocates equal opportunity for persons

initiative launched by the World Business Forum towith disabilities, their inclusion in society and theplace the concerns of persons with disabilities on

workplace, and their self-determined participationcompanies’ management agendas.

and right to be treated with respect. What counts for
us is the person – disabilities should have no relevanceat all. For that reason, we also aim for a barrier-freework environment. But at Siemens, inclusion means
more than just accessibility. It is a holistic way of
thinking and acting that eliminates both visible andinvisible barriers, and encourages a culture of aware,equal-opportunity participation and understanding
as a way of supporting and enabling persons withdisabilities.

SIEMENS SUSTAINABILIT Y REPORT 2021

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1

Inclusion Agreement for Siemens AG Germany.

5.3 Professional education and lifelong learning

5.3

Professional education andlifelong learning– Broad portfolio for vocational education andtraining (VET) and lifelong learningbusiness, we teach core components of the dual
vocational education and training, which helps foster– “MyGrowth” program to develop a companywide growth mindset

employability wherever the participants reside. At
present, our programs have 45 participants from– One of our DEGREE ambitions: Double digitallearning hours by 2025 1

17 countries.

Lifelong learning is crucial to successIn the past fiscal year, Siemens spent €165 million on

Our company’s success depends on having highly

employee training, which corresponds to an average

qualified and skilled people: the right people withof € 573 per employee. We have a wide range ofthe right skills are crucial to our growth. That’s whylearning content and formats to help our people

we invested approximately €318 million inenhance their qualifications.

employee education and training in fiscal 2021.

Vocational training to start your career
Throughits

educational

institution

Siemens

Professional Education (SPE), Siemens is one of the€ 165 million

largest companies in Germany for secondary school
graduates.

Currently

thecompany

has

invested in employee training.

4,711 apprentices and students in dual study programsin Germany, 1,029 of them coming in from other

This equated to an average of €573 percompanies and 3,682 employed at Siemens. In

employee in fiscal 2021.

autumn 2021, 1,085 school graduates began anapprenticeship or dual study program with our

Global Learning World (GLW) is an in-house training

company. In addition to these learners in Germany,

establishment that offers ongoing training for our

we train more than 2,000 young people all over thepeople around the globe. We provide a broad range

world. Our SPE program includes apprenticeships andof courses: Along with content in technology anddual study programs in technical, IT, and commercial

other specialties, they also include developmental

fields and also offers development opportunities forcourses for social skills like team leadership and teamdisadvantaged young people.

building. On average, each employee spent about
22 hours in training during the fiscal year. In terms

International Tech Development programs: Ourof the DEGREE ambitions, excluding Siemensinternational programs are intended for members of

Healthineers, each employee completed about

the upcoming generation from Europe and beyond.

17

In a format tailored to the needs of international

compensation includes long-term performance

hours

of

digitallearning.

Management

incentives based on ESG criteria and is defined under
1 Not applicable to SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

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5.3 Professional education and lifelong learning

Governance in our DEGREE framework. Assessments→ The GLOW@TI (Global Leadership of Women@

are based on the internal ESG/Sustainability index,

Technology & Innovation) initiative focuses on

including reduction of CO2 emissions, digital learning

attracting, developing, and retaining talented

hours per employee, and the Net Promoter Score

women with a background in STEM or innovation(NPS)

fields. It supports women in realizing their fullformeasuringcustomersatisfaction.

potential and aims to promote a culture of inno-

SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION

vation through strong networks between depart-

People development programs
customized for global or local use

ments and organizations.
→ The Siemens Leadership Excellence (SLE)Our range of options in our people development

programs are aimed at high-ranking executives

includes the following programs:

on various levels with the goal of strategicallystrengthening

succession

planningand→ The Siemens Core Learning Paths (CLP) arepromoting the corporate culture. These programs

specifically designed for areas like Sales, Project

support participants in identifying sustainable

Management, Procurement, Production, andand effective solutions for their business

Software Architecture. They provide the target

challenges and provide a shared understanding

group with self-guided learning content andof core competencies needed for management

trainer-supported virtual training sessions. In

and transformation. The programs also support

fiscal 2021, a total of 28 Core Learning Paths

us in building a strong global network of

were made available to the relevant target groups

managers, both within the company and beyond.

around the world. The earned qualifications are
create career opportunities for our people

Future-oriented learning and career
growth and development instruments

throughout the company, and therefore they

The MyGrowth program combines our learning andinternationally comparable within Siemens andsupport and promote systematic personnel

career development tools and content, and is intended

development.

to promote continuous growth. MyGrowth has three→ The Siemens Potential Development Programs

components:(PDP) comprise more than 30 decentralized
development programs for selected employees→ MyGrowth Self-reflection: To build a successful

with potential. The emphasis is on professional

career, it’s essential to know one’s own strengths

development, preparing for future roles, andand weaknesses and to be aware of one’s

personal growth. In addition to targeted

personal stage of development. A variety of tools

development

and services are offered with content like coach-measuressuchastraining,

mentoring, shadowing, and assignments abroad,ing (Peer2Peer), identifying strengths (Strength-

participants

theirscope), and perception by others (feedback tool).

benefitbyexpandingprofessional networks and becoming more visible→ MyGrowth Learning (My Learning World): Our

to management. This is how the programs also

online learning platform offers more thanmake a significant contribution to strategic

100,000 learning resources that aim to satisfy our

succession planning. Some of the Potential-

people’sDevelopment Programs are specifically designed

requirements. Our people can benefit from afor the advancement of women.

large number of learning formats here, including

SIEMENS SUSTAINABILIT Y REPORT 2021

104

differentinterests

andspecial5.3 Professional education and lifelong learning

videos, e-learning modules, virtual training
courses, technical literature, podcasts, andFuture Fund supports transition

e-books. Through the use of artificial intelligence,

to a new work world

users also receive customized recommendations

Siemens AG and its Central Works Council

for learning content based on their usage

intend to proactively shape the structural

behavior.

transformation. We’re working together to→ MyGrowth Career (Own Your Career): “It starts

create a learning organization that is able towith you”: This concept allows you to shape yourmaster structural transformation while also

own career development; it’s integrated into a

optimizing opportunities for change that canholistic concept and is based on your current

benefit our people. A Future Fund has beensituation. The core components are the Open Job

created for this purpose. It encourages

Market, Job Tagging (where you can show you’redevelopment programs intended to support ourinterested in a particular job), a People Profile topeople in staying oriented in a disruptiveincrease your visibility, and Job Shadowing andemployment environment and enabling them

Mentoring to learn from and with others.

to qualify and learn beyond their previous
limits. It finances projects relating to structural

The new Growth Talks are regular, forward-looking,change that go beyond site boundaries, withstrength-based conversations that support bothsupport from site management and Works

individual and organizational growth, performance,

Councils.

and well-being. Support materials such as discussion
guidelines, questions for reflection, and workshop

A total of €100 million has been made available

templates help our people, teams, and managers

for the Future Fund for four (fiscal) years

maintain an ongoing, respectful, and encouraging

starting in January 2019.1 More than €8 million 2

dialog about individual development and learning.

was approved for Future Fund projects in fiscal
2021. After a surge at the beginning of the

The well-established Performance Management

initiative, fewer applications were submitted

Process (PMP) also focuses on developing our people

compared with the prior year.

in their current role and on strengthening theirperformance. The continuous dialog between ourpeople and management builds transparency and ashared understanding.

SIEMENS SUSTAINABILIT Y REPORT 2021

105

1 The fund included Siemens Energy until that company
was spun off.
2 Excluding Siemens Energy and SHS.

5.4 Occupational health and safety management

5.4

Occupational health andsafety management– The COVID-19 pandemic: a trial by fire forworldwide EHS management– Healthy and Safe @ Siemens program launched– Accident rates reduced even more

Occupational safety and health management areincorporated into our DEGREE framework, primarily
under “E” for Employability.

COVID-19 pandemic places new demands
on health and safety management

Maintaining, fostering, and improving the safety and

Maintaining and strengthening individual andwell-being of our people is a key task of ourorganizational resilience – and by the same token, theorganization. It’s enshrined in our Business Conductsustainability of our operating business – became

Guidelines (BCGs), our internal monitoring systems,

even more important during the COVID-19 pandemic.

and our company-wide risk management and control

Our health and safety management proved once

process. The “Siemens EHS Principles” provide theagain to be reliable and fully capable of handling thisbinding core and anchor for our actions in this area.

crisis.

The Principles also include an obligation for all
operating units to document a management system

The impact of the pandemic varied in different

certifiable to ISO 45001. The efficacy of thesecountries and different operating businesses. We

management systems is reviewed internally every

established a global internal COVID-19 monitoring

year and is also certified externally at the operating

system at an early stage to identify developments

units in keeping with market requirements. The

promptly and respond quickly. Our sites were put

conversion of management systems from OHSAS 18001

under partial or complete temporary lockdown.

to ISO 45001 was successfully completed.

However, on the basis of our protection concepts,
business continuity was largely unimpaired.

The Environmental Protection, Health Management,
and Safety (EHS) professional function bears much of

We provided extensive testing opportunities andthe associated responsibility at Siemens. It’s organizedpromoted vaccination in a number of countries. To

locally, it’s integrated into each area of business andsupport our people and their families in countries

each national company, and it reports directly to thewhere the public healthcare system faced especiallyrespective business managers. The EHS Officers

severe challenges, Siemens Medical Services offeredcoordinate collaborations with experts in the many

assistance, organized hotels where our infecteddifferent fields of action involved. The main task ofpeople could be isolated, and relocated medical

this professional function is to advise managers andequipment to regions where it was most needed.

teams and support them in managing their specificareas of responsibility. Its profile has changed
significantly in recent years: Rather than monitoring
compliance with rules and workflows, the focus is
now on supporting our people in dealing safely withdynamically changing requirements.

SIEMENS SUSTAINABILIT Y REPORT 2021

106

5.4 Occupational health and safety management

Inclusion, interaction, and personal
development→ Another example is the “Improvement Dialog”
approach that’s a key component of the Healthy

The pandemic accelerated the digitalization of ourand Safe @ Siemens program. “Improvement

work systems. Last year, our people were working

Dialogs” are initiated on specific health and safety

wherever possible on a mobile basis – a hitherto

topics or related issues. The dialogs collect a va-

unknown situation that had both positive andriety of views and experiences and then changes

negative implications for their health, safety, andand improvements are explored and adopted.

well-being. Our people were faced with many

→ For health and safety experts, there’s a “Futurechanges and adjustments. We’re working actively to

Skills @ EHS” initiative that provides an orienta-

channel these changes toward a “New Normal” withtion with comprehensive learning resources.

a more flexible, more adaptable, and more self-

We’ve also introduced an “Advanced Safety

determined way of working. To keep the change

Futures” program for the EHS professional function,

and adjustment process healthy and safe, we

whose participants will become the ambassadorsconcentrated on encouraging interaction, intensifyingof an expanded understanding of health andcommunication, and offering focused learning

safety management.

opportunities with the goal of optimally including
teams in designing their own jobs.

We encourage our people to get involved in order toensure healthy, safe working conditions, and we

In addition to health and safety trainings on specificfoster self-organization as one of the best ways to

topics, we significantly expanded the scope of otherdeal with the requirements of the “new normal.”opportunities for learning and dialog, especiallypertaining to resilience, psychological safety, andpsychosocial risk management.

1

The new Healthy and
Safe @ Siemens program 1
A major milestone this fiscal year was the launch of the→ Both managers and team members can take ad-

Healthy and Safe @ Siemens program as the successor

vantage of continuously updated digital optionsof two separate previous programs, Healthy@Siemens

for self-paced learning: for instance, via the EHS

and Zero Harm Culture@Siemens. In the new program,

Channels and Knowledge Boards in Siemens

our people at company locations performed a self-

Learning World.

assessment followed by “improvement dialogs” on four

→ More time has been provided for discussions
among managers and team members about
health, safety, and well-being on the job. The(virtual) “Walk & Talk 2.0” and EHS-related internal social networks are one expression of thisintensified interaction and dialog.

1

Siemens excluding SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

107

main topics:

5.4 Occupational health and safety management

The program’s framework has been enlarged to

New Healthy and Safe @ Siemens programorganizational resilience: It no longer focuses entirely
on bodily health and integrity, but now places more
attention on mental health and psychological safety.

Foster Positive
Work Climate

This is intended to strengthen the sense of well-being
and the resilience of our people and to support themin dealing with change. The key was actively involving
the workforce in designing their work environments.

Evolve Leadershipin Health and Safety

In our local organizations, health and occupationalsafety committees play an important role, withmanagement and employee representatives working
together to coordinate initiatives for a healthy, safe

Enhance Health and Safety
Learning

work environment. Many Siemens local companies
also developed supplementary campaigns. In
Germany, for example, a comprehensive range of
instruments was applied to improve resilience (aOptimize
Processes & Resources“Resilience Toolbox”), and many colleagues took
advantage of it.

Resilience toolbox

Action modules
for Health &Safety Days

Leadershiptraining

Lectures for all ofour people

Toolboxelements

Team
workshops

24/7 available
elements (online)

Integrated offersfrom partners

SIEMENS SUSTAINABILIT Y REPORT 2021

108

Resiliencecoaching

5.4 Occupational health and safety management

The Healthy and Safe @ Siemens program also aims

Despite declining accident rates, there were four fatal accidents

for two important objectives that have beenin fiscal 2021. Two temporary workers suffered fatal electrical

incorporated into the Siemens DEGREE framework 1:

shocks, one while testing a transformer and the other while
performing maintenance on a circuit breaker. The third fatality→ 100 % access to EAPs (Employee Assistance
Programs) by 2025

was a contract worker who fell from a roof during demolition
work. Another contractor was run over by a mobile crane duringtransport work.

As an integral part of our psychosocial risk
management, the EAPs help everyone anonymously

Each accident is a source of grief for the people concerned andto identify and to cope with psychosocial personal

their families, friends, and colleagues. And for us as a company,

stressors. In 2021, 87 % 1 of our colleagues had accessit’s a renewed call to keep ensuring and improving a safe, healthy

to these programs. By that we want to support all ourwork environment for our people and partners.

people around the world to establish healthpromoting behaviors – and also to raise awarenessof psychosocial issues in society as a whole.

LTIFR Employees and Temporary Workers ¹
Fiscal year

→ Improving the global accident rate (Lost Time
Injury Frequency Rate, LTIFR) by 30 % by 2025(base year: 2020)

13 %Reduction in accident rate (LTIFR)

Employees

2021

2020

0.27

0.28

Temporary Workers 2

0.39

0.68

Total

0.28

0.30

1 
Lost Time Injury Frequency Rate: number of lost-time cases (LTC) x 200,000/work
hours; LTCs are accidents that result in at least one lost day of work.
Siemens including SHS.
2 
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.

compared to previous year
according to our DEGREE ambition 1
Fatalities (work-related)
In reference to the target in the Siemens DEGREE

Fiscal year

framework of reducing the accident rate (LTIFR) by

2021

2020

30 % by 2025 (base year 2020: LTIFR 0.31 1) an

Employees––

improvement to 0.27 1 has already been achieved.

Temporary Workers

2–

Accident numbers low

Contractors

2

1

Total

4

1

The number of work-related accidents further declinedin the last fiscal year.
The majority of incidents are finger injuries and theconsequences of falls or slipping. Many incident
reports indicate that despite all efforts at prevention
and inspection, a hazard wasn’t properly identified oreliminated.

1

Siemens excluding SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

109

5.5 Corporate citizenship

5.5

Corporate citizenship– Improving people’s living conditions

strategy, one that is embedded in our DEGREE– Giving societies access to knowledge andframework, specifically the main focus is on “Equity,”technologies– A variety of projects with three strategic

which strengthens the identification of different target

priorities

groups with the company, and on “Employability,”
which is achieved through a range of training measurescovering all phases of life.

Corporate

citizenshipis

Siemens’

voluntary

Based on our core business and our competencies,

commitment to delivering benefits for society in every

Siemens has defined three strategic focus areas forcountry in which we operate. As defined by Werner

its corporate citizenship activities: access to

von Siemens over 170 years ago, the company’s

technology, access to education, and sustaining

mission is to provide technologies that improve quality

communities. Our corporate citizenship activities

of life and create lasting value for society. Based on theextend beyond traditional philanthropy. We harness

SDGs, we identify topics that are relevant for the

our technological competencies and leverage ourdevelopment of a country and illustrate how we arecapabilities and products.

making a positive contribution to achieving them. The
goal of this approach is not to reduce the risks

The Siemens Stiftung, along with six other Siemens

associated with the company’s business activities, but

foundations, complements our corporate citizenshipto give something back to the societies in which theinitiatives.

company operates. Thus, corporate citizenship is an
important element of our company’s sustainability

OUR MOST IMPORTANT AREAS OF IMPACT

HT TPS://WWW.SIEMENS-STIFTUNG.ORG/EN/FOUNDATION/
BENEFACTOR/

Our Core Areas

Access totechnology

Access to
education

Sustaining
communities

With the aid of our core competencies
in digitalization, automation, andelectrification, as well as scientificresearch, we strive to give as many
people as possible the chance to use
the latest technologies.

Knowledge is a resource on which our
future depends. Therefore, improving
educational prospects and allowing
broad access to education are criticallyimportant challenges for all societies
everywhere in world.

Our goals are to establish stable living
conditions, protect values, unleash
creativity, improve intercultural
understanding, and contribute toprogress.

SIEMENS SUSTAINABILIT Y REPORT 2021

110

5.5 Corporate citizenship

Creating lasting value with ashared-value approach

Community Investment 1

In accordance with our corporate strategy

AT A

GL ANCE ,andresponsibility

for

the

selection

26 %Americasmanagement of nonprofit and socially innovative
activities lies with the local units or local managementin each country. This approach is designed to makeFiscal 2021

sure that we provide support and create value where€ 40.6 million
total

it is needed most. In the process, we combine indepth local knowledge with the need for a long-term
commitment to overcome social challenges that mayvary from region to region.

48 %
EMEA

1 Community investment includes donations as well as sponsoring activities in theareas of education, science and the arts and culture.

Our goal in each society is to help improve generalliving and healthcare conditions (access to technology),

Another significant factor of corporate responsibility

enhance educational and training opportunities for theat Siemens are our employee donation programs,labor market (access to education), and strengthen

which combine the company’s commitment to societysocial cohesion and cultural identification (sustaining

with our people’s wish to be more engaged on acommunities). At the same time, we enhance thepersonal level. The Cents4Sense program allows

reputation of Siemens, strengthen its local footprint,

employee shareholders to donate one dividend ofcreate a wider understanding of its technologies,

their Siemens shares to support social projects. Since

position ourselves as an attractive employer, and lay

it began in 2018, Cents4Sense has raised nearly

the foundation for future innovation. We measure the€ 655,000 for selected social projects.

achievement of these goals on the basis of theindividual underlying targets.

Access to education is relevant forsocieties around the world

With our principles on sponsorship activities,

The promotion of education can take different forms

donations, charitable contributions, and memberships,

and pursue different objectives, but the overriding

we have also created a global framework that provides

goal is to enhance future opportunities and give

guidance for local activities. The guidance outlines

young people the tools to master future challenges.

how all kinds of potential contributions can be

Thanks to its width and depth, the Siemens portfolio

employed correctly and in a targeted manner while

offers a variety of opportunities for tackling problems

ensuringthat vary from region to region and for finding thetransparency

regardingallactivities

best possible solutions in close cooperation with local

worldwide.

partners. In doing so, Siemens also improves market
Corporate volunteering is an important lever andaccess for qualified and urgently needed young

driver of the corporate citizenship activities ofprofessionals, thereby positioning itself as a reliable

Siemens: Our own Corporate Volunteering Standard

partner for the public sector.

outlines a common global concept and a framework
for Siemens AG. Corporate volunteering is an efficient

Our commitment ranges from enabling STEM- oriented

way for individuals to make a difference in society andtraining and promoting excellence through competition

helps to enhance employee satisfaction and retention.

to providing free software licenses and setting up new

One example of this work is the transnational

institutional education paths, such as dual education

initiative of the employees of Siemens Financial

and apprenticeship systems.

Services. In 35 projects, for example, children’s facilities
and parks are cleaned up on a sustainable basis.

SIEMENS SUSTAINABILIT Y REPORT 2021

111

26 %
Asia,
Australia5.5 Corporate citizenshipA skilled workforce is essential for the growth of aA pillar of the educational mission of Siemens Turkey

nation and the living conditions of its population. In

is the provision of scholarships for talented, but

China, Siemens promotes the “China Intelligent

financially disadvantaged youths. A key aspect of thisManufacturing Challenge” contest, in which more thanprogram is to evenly promote all genders. Another

60,000 university and vocational school students haveimportant element is the assignment of mentors fromparticipated since 2011. By involving a strong network

Siemens Turkey. Since 2018, 40 students haveof partners, this program promotes the sustainable

received financial support and have been accompanied

development of engineering education in the country,

by more than 50 Siemens mentors. The Darüssafaka

which also benefits companies like Siemens.

Robotic Club provides targeted assistance to children
who have lost their parents and prepares them for

Impactful corporate citizenship
Everywhere in the world, people are adversely

professional careers.

such as disastrous floods and even the COVID-19

Access to technology on the basis of ourcore competencies

pandemic.

Access to modern and reliable infrastructure, for

The company has therefore set itself the goalor even basic medical care, is a fundamentalof tackling regionally different problems andprerequisite, especially in developing countries, foraffected by unforeseeable events and disasters

example by securing the energy supply, clean water,

finding the best possible solutions in close

improving the quality of life of many people andcooperation

securing prospects for their future.

with

the

local

authorities.

Immediate humanitarian aid may consist offinancial and particularly also technical support

Another way that Siemens helps people improve theiron the basis of the company’s portfolio. Ourlife prospects with the aid of education is to provide

people are also activated by way of donation-

laptops and digital devices to socially disadvantaged

matching campaigns.

families in countries such as Germany, Portugal,
Canada, and Singapore. These programs are

One example of such work is the immediate aid

accompanied by knowledge transfer workshops led

provided after the devastating floods thatby our people.

struck Germany, Belgium, and the Netherlands
in July 2021. Siemens supported the efforts of

Promotion of social cohesion

different emergency response organizations

Local identification with cultural heritage is also

to alleviate the suffering caused by the floods

important for social cohesion. That is why we have awith donations totaling €2.1 million, including

philosophy of supporting cultural and social activities€1.2 million donated by our people. In addition,

as well. The “Siemens Art Program” in particular goesthe “Siemens4Siemens” app developed on thea long way to helping us live up to this objective

basis of Mendix software enabled affected

through a diverse range of projects, such as theemployees to receive urgently needed in-kind“Fascination with Science” project by the photo artist

assistance from other employees.

Herlinde Koelbl.

To combat the COVID-19 pandemic, donations

The protection of the environment and thetotaling more than €5.7 million were usedconservation of natural resources are two goals thatparticularly to provide medical equipment,

are also of the utmost importance for sustaining

improve hygiene measures, and ensure basic

communities. On the occasion of Earth Day, forcare for disadvantaged groups via Siemens AG

example, Siemens UK provided educational materials

donation initiatives and the Siemens Caring

to 214 elementary schools so that children can be

Hands relief fund in fiscal 2021.

taught how to conserve natural resources.

SIEMENS SUSTAINABILIT Y REPORT 2021

112

Page 113 – 129

Our sustainability
indicators

SIEMENS SUSTAINABILIT Y REPORT 2021

113

6 Our sustainability indicators

Sustainability Key Performance Indicators (KPIs)

Fiscal/September 30thUnit

FY 2021

FY 2020+/–

Standard

12.7 %GRI 201-1,
WEF

SIEMENS AT A GLANCE
Total revenue

Total

Fiscal Year

Billion €

62.3

55.3

Contribution to GDP (gross domestic
product) generation 1

Total

Fiscal Year

Billion €

281

n. a.

WEF

Total

Fiscal YearNo. ­(rounded)

5,000,000 n. a.

WEF

in developing andemerging countries

Fiscal YearNo. ­(rounded)

2,600,000 n. a.

WEF

Jobs enabled 1

Research and development 2
R&D expenses

Total

Fiscal Year

Billion €

4.9

4.6

6.4 %

R&D intensity

Total

Fiscal Year% of r­ evenue

7.8 %

8.3 %

– 5.6 %

Additions to capitalized development
expenses

Total

Fiscal Year

Billion €

0.3

0.4

– 33.6 %Average number of R&D employees

Total

Fiscal YearNo. ­(rounded)

42,50040,800

4.2 %Patents granted

Total

Sept. 30th

No. ­(rounded)

43,40040,9006.1 %WEF

GOVERNANCE
Compliance (continuing and discontinued operations)

Total

Compliance cases reported

allegations ofbribery
allegations of­bribery related toactual year

Disciplinary sanctions

Business Conduct Guideline Training –graduating quota current year

Fiscal Year

Fiscal Year

Fiscal Year

No.

No.

No.

394

93

5

332

18.7 %GRI 205-3,
206-1, 3071, 406-1,
419-1, WEF

n. a.

GRI 205-3,
206-1, 3071, 406-1,
419-1, WEF

n. a.

GRI 205-3,
206-1, 3071, 406-1,
419-1, WEF
GRI 205-3,
206-1, 3071, 406-1,
419-1, WEF

allegations of bribery
related to previous
years
Fiscal Year

No.

5

n. a.

Total

Fiscal Year

No.

121

188

– 35.6 %GRI 205-3,
WEF

warnings

Fiscal Year

No.

62

90

– 31.1 %GRI 205-3,
WEF

dismissals

Fiscal Year

No.

49

63

– 22.2 %GRI 205-3,
WEF

others  4

Fiscal Year

No.

10

35

– 71.4 %GRI 205-3,
WEF

Total

Fiscal Year% of invited
employees

92.6 %

86.1 %

7.6 %GRI 205-2,
WEF

1 Based on FY 2019 data. Calculation methodology described in the Annex.
2 Continuing Operation (with Varian / without Flender).
3 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.
4 Includes loss of variable and voluntary compensation elements, transfer, and suspension.

SIEMENS SUSTAINABILIT Y REPORT 2021

114

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020

Total

Fiscal YearNo. ­(rounded)

72,000

EMEA

Fiscal YearNo. ­(rounded)

AmericasFiscal Year

Asia / Australia
Graduated other specific Compliancetrainings for employees

Sustainability Key Performance Indicators (KPIs)+/–

Standard

165,000– 56.4 %GRI 205-2,
WEF

34,000105,000– 67.6 %GRI 205-2,
WEF

No. ­(rounded)

19,00027,000– 29.6 %GRI 205-2,
WEF

Fiscal YearNo. ­(rounded)

19,00033,000– 42.4 %GRI 205-2,
WEF

Total

Fiscal YearNo. ­(rounded)

374,000

277,000

35.0 %GRI 205-2,
WEF

Integrity Initiative – Projects

Total

up to
Sept. 30th

No.

85

77

10.4 %GRI 102-12,
WEF

Integrity Initiative – Finance budget
provided

Total

up to
Sept. 30th

Million US $

120.0

98

21.8 %GRI 102-12,
WEF

Purchasing Volume (PVO) / Procurement
volumeTotal

Fiscal Year

Billion €

27.8

26.7

4.1 %

GRI 102-9

Number of relevant (> € 10,000 annual
volume) suppliers

Total

Fiscal YearNo. ­(rounded)

63,00065,000– 3.1 %GRI 102-9– 10.3 %GRI 308-2,
407-1, 4081, 409-1,
414-2

4.6 %

GRI 308-2,
407-1, 4081, 409-1,
414-2,– 40.7 %GRI 308-2,
407-1, 4081, 409-1,
414-2

Business Conduct Guideline Training –persons graduating current year

Supply chain management

Total

Sustainability self-assessments 1

EMEA

AmericasAgreed improvement measures out of
Sustainability self-assessments

Fiscal Year

Fiscal Year

No.

No.

No.

4,267

1,505

555

4,759

1,439

936

Asia / Australia

Fiscal Year

No.

2,207

2,384

– 7.4 %GRI 308-2,
407-1, 4081, 409-1,
414-2

Total

Fiscal Year

No.

3,604

3,279

9.9 %

GRI 308-2,
414-2– 14.7 %GRI 308-2,
407-1, 4081, 409-1,
414-2– 19.4 %GRI 308-2,
407-1, 4081, 409-1,
414-2

15.6 %GRI 308-2,
407-1, 4081, 409-1,
414-2– 25.5 %GRI 308-2,
407-1, 4081, 409-1,
414-2

Total

Supplier quality audits with sustainability EMEA
questions

Americas

Asia /Australia
1

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

No.

No.

No.

No.

319

116

89

114

374

144

77

153

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 2021

115

6 Our sustainability indicators

Fiscal/September 30th

Sustainability Key Performance Indicators (KPIs)

Total

External sustainability audits

EMEA

AmericasAgreed improvement measures out of
external sustainability audits

Fiscal Year

Fiscal Year

Fiscal Year

Unit

No.

No.

No.

FY 2021

394

123

44

FY 2020

269

65

19

+/–

Standard

46.5 %GRI 308-2,
407-1, 4081, 409-1,
414-2, WEF

89.2 %GRI 308-2,
407-1, 4081, 409-1,
414-2, WEF

131.6 %GRI 308-2,
407-1, 4081, 409-1,
414-2, WEF

Asia / Australia

Fiscal Year

No.

227

185

22.7 %GRI 308-2,
407-1, 4081, 409-1,
414-2, WEF

Total

Fiscal Year

No.

6,617

5,394

22.7 %GRI 308-2,
414-2, WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

386

424

– 9.0 %GRI 305-1,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

352

391

– 10.0 %GRI 305-1,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

17

14

27.1 %GRI 305-1,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

< 0.1

< 0.1

Fiscal Year

1,000 metrictons of CO2
equivalents

1

1

7.6 %

GRI 305-1,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

1619– 15.1 %GRI 305-1,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents<1<1

Fiscal Year

1,000 metrictons of CO2
equivalents

208

253

– 17.7 %GRI 305-2,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

755

826

– 8.7 %GRI 305-2,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

595

678

– 12.2 %GRI 305-1,
305-2, WEF

ENVIRONMENT
Climate Action
Greenhouse Gas Emissions

Total

CO2 emissions

SF6 emissions
Scope 1CH4 emissions

N2O emissions

HFC-gas emissions
Other Kyoto gas
emissions

Scope 2

Total
(market based)
Total(location based)

Scope 1 + 2

SIEMENS SUSTAINABILIT Y REPORT 2021

Total

116

GRI 305-1,
WEF

GRI 305-1,
WEF

6 Our sustainability indicators

Sustainability Key Performance Indicators (KPIs)

Scope 1 + 2 Reduction to LY

Total

Total (Scope 1 + 2)
Reduced emissions through energy fromrenewable sources

Gas from renewablesources (Scope 1)
Electricity fromrenewable sources(Scope 2)

Scope 3

Total

Total
Purchased goods &services

Capital goods

Scope 3 Upstream

Fuel & energy-related activities

Waste in operations
Transportation
upstreamBusiness travel
Employee commuting

Total
Scope 3 Downstream

Use phase emission

Investment SFS 1
1

Fiscal/September 30thUnit

FY 2021

FY 2020

Fiscal Year

1,000 metrictons of CO2
equivalents

83

Fiscal Year

1,000 metrictons of CO2
equivalents+/–

Standard

225– 63.2 %GRI 305-5,
WEF

541

546

– 1.0 %GRI 305-5,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

220

Fiscal Year

1,000 metrictons of CO2
equivalents

518

546

– 5.1 %GRI 305-5,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

469,271507,691– 7.6 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

10,435

10,296

1.4 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

8,813

8,607

2.4 %

GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

381

419

– 9.1 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

263

282

– 6.7 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

24

28– 14.3 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

797

740

7.7 %

GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

63

126

– 49.8 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

94

94

0.0 %

GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

458,836

497,395– 7.8 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

453,350

483,813– 6.3 %GRI 305-3,
WEF

Fiscal Year

1,000 metrictons of CO2
equivalents

5,486

13,582– 59.6 %GRI 305-3,
WEF

Emissions out of Siemens Finance Service (SFS) activities in financing fossil energy production projects.

SIEMENS SUSTAINABILIT Y REPORT 2021

117

GRI 305-5,
WEF

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020+/–

Total number

Sept. 30th

No. ­(rounded)

43,00044,000– 2.3 %

Electrical vehicles

Sept. 30th

No. ­

656

n. a.

Hybrid vehicles

Sept. 30th

No. ­

2,719

n. a.

Rate of electrical andhybrid vehicles

Sept. 30th

% of total fleet

8%

n. a.

Fleet emissions (partof Scope 1 emission)

Fiscal Year

1,000 metrictons of CO2
equivalents

194

205

– 5.1 %

Fuel consumption
fleet

Fiscal Year

1,000
­gigajoule

2,658

2,530

5.1 %

Total

Sept. 30th

No.

32

17

88.2 %GRI 305-5,
WEF

Total

Fiscal Year

Billion €

19.1

18.0

6.2 %

SASB RT-EE410a.3

Total

Fiscal Year% of total revenue (Sales to3rd. parties)

30.7 %

32.6 %– 5.7 %SASB RT-EE410a.3

Greenhouse gas reductions in thereporting year achieved by our customers through products of the Siemens
Environmental Portfolio newly installedin the reporting year

Total

Fiscal Year

Mt CO2

8.4

7.0

20.1 %GRI 305-5,
WEF

Greenhouse gas reductions in the­reporting year achieved by our­customers through new and throughpreexisting products of the Siemens
Environmental Portfolio

Total

Fiscal Year

Mt CO287.5

80.4 2

8.9 %GRI 305-5,
WEF

Fiscal Year

1,000
­gigajoule– 5.3 %GRI 302-1,
SASB RT-EE130a.1

Fiscal Year% of totalenergy­consumption

17.7 %

302-1, SASB
RT-EE130a.1

Fiscal Year% of totalenergy­consumption– 6.8 %GRI 302-1,
SASB RT-EE130a.1

Sustainability Key Performance Indicators (KPIs)

Standard

Greenhouse Gas – Fleet and Real Estate Management

Siemens fleet(owned or leased vehicles)

Siemens sites with Net-Zero CO2­emissions

GRI 305-1,
WEF

Environmental Portfolio 1
Revenue from Environmental Portfolio
Share of Revenue from Environmental
Portfolio

Conservation of Resources 3

Total
Energy Consumption: Primary &­Secondary Energy

Share of renewableenergy sources
Share of grid­electricity

9,863

46.4 %

54.0 %

10,41639.4 %

58.0 %

1 Continuing Operation – Industrial business.
2 For comparability reasons value is adjusted regarding the discontinued Flender business (– 69.2 Mt CO2).
3 The calculation method regarding Energy Consumption was changed in FY 21 – therefore FY 20 data were adapted. See chapter Reporting Method.

SIEMENS SUSTAINABILIT Y REPORT 2021

118

6 Our sustainability indicators

Sustainability Key Performance Indicators (KPIs)

Total
Natural gas & liquidgas
Energy Consumption: Primary Energy

Gas from renewablesources
Gas share fromrenewable sources
Fuel oil, gasoline,
dieselTotal

Electricity (total)
Energy consumption: Secondary Energy

Electricity (renewable sources)
Electricity Share of
renewable energy
sources

District heating

SIEMENS SUSTAINABILIT Y REPORT 2021

119

Fiscal/September 30th

Unit

Fiscal Year

1,000
­gigajoule

Fiscal Year

1,000
­gigajoule

Fiscal Year

1,000
­gigajoule

Fiscal Year% of total gas
used

Fiscal Year

1,000
­gigajoule

Fiscal Year

1,000
­gigajoule

Fiscal Year

1,000
­gigajoule

Fiscal Year

1,000
­gigajoule

Fiscal Year% of total electricity used

Fiscal Year

1,000
­gigajoule

FY 2021

3,198

3,118

399

13 %

62

6,665

5,329

4,173

78 %

1,337

FY 2020

3,283

3,199

+/–

Standard– 2.6 %GRI 302-1,
SASB RT-EE130a.1– 2.5 %GRI 302-1,
SASB RT-EE130a.1

0

GRI 302-1,
SASB RT-EE130a.1

0  %

GRI 302-1,
SASB RT-EE130a.1

70– 11.3 %GRI 302-1,
SASB RT-EE130a.1– 6.6 %GRI 302-2,
SASB RT-EE130a.1– 11.7 %GRI 302-2,
SASB RT-EE130a.1

1.7 %GRI 302-2,
SASB RT-EE130a.1

15.3 %GRI 302-2,
SASB RT-EE130a.1

21.9 %GRI 302-2,
SASB RT-EE130a.1

7,133

6,036

4,101

68 %

1,097

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020+/–

Standard

Total

Fiscal Year

1,000 tons

275.5

397.5

– 30.7 %GRI 306-3

Non-hazardous
waste – total

Fiscal Year

1,000 tons

235.2

259.1

– 9.2 %GRI 306-3

Non-hazardous
waste – recycled / recovered

Fiscal Year

1,000 tons

222.3

245.7

– 9.5 %GRI 306-3

Non-hazardous
waste – landfill / otherdisposal

Fiscal Year

1,000 tons

12.9

13.5

– 4.4 %GRI 306-3– 35.9 %GRI 306-3,
SASB RT-EE150a.1– 47.2 %GRI 306-3,
SASB RT-EE150a.1

Sustainability Key Performance Indicators (KPIs)

Waste

Hazardous waste –total
Hazardous waste –recycled / recovered
Waste

Recycling & Recovery rate

1

6.1

18.5

11.6

1,000 tons

6

7

– 17.1 %Construction waste –total
Fiscal Year

1,000 tons

28

120

– 76.2 %GRI 306-3

Construction waste –recycled / recovered

Fiscal Year

1,000 tons

13

113

– 88.2 %GRI 306-3

Constructionwaste – landfill / other disposal

Fiscal Year

1,000 tons

15.2

7.4

105.0 %GRI 306-3

Total w/o.
­construction waste

Fiscal Year

1,000 tons

247.0

277.5

– 11.0 %GRI 306-3

Recycled / recovered
waste

Fiscal Year

1,000 tons

228.4

257.2

– 11.2 %GRI 306-4

Waste to landfill / ­other disposal

Fiscal Year

1,000 tons

19

20

– 8.3 %GRI 306-3

Total ­
(w/o construction)

Fiscal Year% of total waste(w/o construction)

92 %

93 %

– 0.2 %GRI 306-4

Hazardous waste

Fiscal Year% of total hazardous waste

52 %

63 %

– 17.7 %GRI 306-4

Fiscal Year% of total
non-hazardous
waste

95 %

95 %

– 0.3 %GRI 306-4

Fiscal Year% of construction waste

47 %

94 %

– 50.4 %GRI 306-4

Fiscal Year% of total waste(w/o construction)

8%

7%

3.0 %

GRI 306-4

Fiscal Year% of total waste(w/o construction)

3%

n. a.

Total
(w/o construction)
Total(w/o construction)

Siemens without SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021

1,000 tons

11.8

Fiscal Year

Construction waste

Landfill rate 1

Fiscal Year

1,000 tons

GRI 306-3,
SASB RT-EE150a.1

Hazardous waste –landfill / otherdisposal

Non-hazardous
waste

Landfill / other disposal rate

Fiscal Year120

GRI 306-4

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020

Fiscal Year% of total waste(w/o construction)

83 %

n. a.

GRI 306-4

Total(w/o construction)

Fiscal Year% of recycled / recovered
waste total (w/oconstruction)
88 %

n. a.

GRI 306-4

Total

Fiscal Year

Million ­cubic
meter

15.0

15.3

– 1.8 %GRI 303-3,
WEF

Other water withdrawal

Fiscal Year

Million ­cubic
meter

4.5

5.1

– 10.5 %GRI 303-3,
WEF

Chemically unchanged coolingwater ­(returned
to receiving water
body chemicallyunchanged, butwarmed)Fiscal Year

Million ­cubic
meter

10.5

10.3

2.5 %

GRI 303-3,
WEF

Total

Fiscal Year

Million ­cubic
meter

15.1

15.3

– 1.5 %GRI 303-4

Fiscal Year

Million ­cubic
meter

3.0

3.3

– 9.5 %GRI 303-4

Sustainability Key Performance Indicators (KPIs)

Total(w/o construction)
Material Recycling rate 1+/–

Standard

Water

Water withdrawal

Sanitary wastewater
Manufacturing­processes

Wastewater

Rate sites with implemented water
strategy 1

Fiscal Year

Million ­cubic
meter

0.7

0.6

23.6 %GRI 303-4

Other (including
losses)Fiscal Year

Million ­cubic
meter

0.8

1.0

– 17.1 %GRI 303-4

Cooling water­discharged as­wastewater

Fiscal Year

Million ­cubic
meter

0.1

0.2

– 61.0 %GRI 303-4

Total wastewater(w/o chemicallyunchanged coolingwater)

Fiscal Year

Million ­cubic
meter

4.6

5.0

– 9.6 %GRI 303-4

Chemically unchanged coolingwater ­(returned
to receiving water
body chemicallyunchanged, butwarmed)Fiscal Year

Million cubic
meter

10.5

10.3

2.4 %

GRI 303-4

Total

Sept. 30th

% of sites

84

95– 11.6 %GRI 303-1,
WEF

Total

Fiscal Year

metric tons

253

368

– 31.1 %GRI 305-7,

0.030

0.085

– 64.2 %GRI 305-6,

92.8

94.4

– 1.6 %GRI 305-7 ,Atmospheric pollutant emissions
Volatile Organic Compounds

Ozone-depleting substances

Total

Fiscal Year

metrictons (R11­equivalent) 2

Nitrogen oxides

Total

Fiscal Year

metric tons

1 Siemens without SHS.
2 R11 equivalent measures ozone depletion potential.

SIEMENS SUSTAINABILIT Y REPORT 2021

121

6 Our sustainability indicators

Fiscal/September 30th

Sustainability Key Performance Indicators (KPIs)

Unit

FY 2021

FY 2020+/–

Standard– 12.5 %GRI 307-1,
SASB RT-EE150a2– 46.2 %GRI 307-1,
SASB RT-EE150a2

Additional environmental topics

Environment-related incidents

Total

Total
Quantity reportablespillsReportable spills

Fiscal Year

Fiscal Year

Fiscal Year

No.

No.

kg

14

7

380

16

13

n. a.

GRI 307-1,
SASB RT-EE150a2
GRI 307-1,
SASB RT-EE150a2

Quantity recovered
spillsFiscal Year

kg

346

n. a.

Sites with EHS management system
ISO 14001:2016

Total

Sept. 30th

No.

185

173

6.9 %

Sites with EHS management system
ISO 50001

Total

Sept. 30th

No.

27

29

– 6.9 %

Full-Scale Life Cycle Assessments (LCA)

Total

Sept. 30th

No.

158

206

-23,3 %

Environment Product Declarations (EPD)

Total

Sept. 30th

No.

1.240

1.168

6,2 %

Fiscal Year% of total revenue (Sales to3rd. parties) 1

79 %

70 %

13.0 %

Fiscal Year% of total revenue (Sales to3rd. parties) 1

71 %

71 %

– 0.9 %

Fiscal Year% of total revenue (Sales to3rd. parties)

67 %

n. a.

SASB RT-EE410a1

293,000

GRI 102-7,
SASB RTEE_000B

Product Stewardship

Share of “Full-Scale Life Cycle
Assessment (LCA)” revenue

Total

Share of “Environment Product Declarations (EPD)” revenue

Total

Rate of products by revenue that contain
IEC 62474-declarable substances 2

Total

SOCIAL
Working for Siemens 3

Siemens employees

Total

Sept. 30th

No. ­(rounded)

303,000

3.4 %1 We consider the revenue of a business unit in relation to Siemens revenue once we have carried out at least one “Full-Scale LCA” or “EPD” for their products or systems. ­No ­product-related coverage is calculated.
2 Siemens without SHS.
3 All employee data in this section are based on headcount and include Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021

122

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020+/–

Standard

Sept. 30th

% of total
employees

56.4 %

58.8 %– 4.1 %GRI 102-8

Sept. 30th

% of total
employees

20.5 %

19.3 %

6.2 %GRI 102-8

Sept. 30th

% of total
employees

23.2 %

21.9 %

5.9 %GRI 102-8

Sept. 30th

% of total
employees

29.6 %

29.6 %

0.0 %GRI 102-8,
WEF

age group 35 – 44

Sept. 30th

% of total
employees

29.9 %

29.7 %

0.7 %GRI 102-8,
WEF

age group 45 – 54

Sept. 30th

% of total
employees

23.5 %

23.9 %– 1.7 %GRI 102-8,
WEF

age group > 54

Sept. 30th

% of total
employees

17.0 %

16.8 %

1.2 %GRI 102-8,
WEF

Blue-collar Workers

Sept. 30th

% of total
employees

17.4 %

18.7 %– 7.0 %GRI 102-8,
WEF

White-collar Workers

Sept. 30th

% of total
employees

82.6 %

81.3 %

1.6 %GRI 102-8,
WEF

Average number of employees

Total

Fiscal YearNo. ­295,582

294,468

0.4 %GRI 102-7,
WEF

Average age of employees

Total

Sept. 30th

Years

42

41

2.4 %

GRI 102-8

Employee nationalities

Total

Sept. 30th

No. ­

167

168

– 0.6 %GRI 405-1

Total

Sept. 30th

% of total
employees

26.7 %

26.2 %

1.9 %GRI 102-8,
WEF

EMEA

Sept. 30th

% of total
employees

25.8 %

25.3 %2.0 %GRI 102-8,
WEF

AmericasSept. 30th

% of total
employees

28.2 %

27.6 %

2.2 %GRI 102-8,
WEF

Asia / Australia

Sept. 30th

% of total
employees

27.7 %

27.4 %

1.1 %GRI 102-8,
WEF

Total

Sept. 30th

No. ­(rounded)

29,90027,200

9.9 %

Women

Sept. 30th

% of total
management
positions19.6 %

18.4 %

6.5 %GRI 102-8,
WEF

Total

Sept. 30th

% of total
employees

94.0 %

93.7 %

0.3 %GRI 102-8,
WEF

Total

Fiscal YearNo. ­(rounded)

34,40025,20036.5 %GRI 401-1,
WEF

EMEA

Fiscal YearNo. ­(rounded)

13,70011,70017.1 %GRI 401-1,
WEF

AmericasFiscal YearNo. ­(rounded)

10,6007,50041.3 %GRI 401-1,
WEF

Asia / Australia

Fiscal YearNo. ­(rounded)

10,1006,000

68.3 %GRI 401-1,
WEF

Women – Total

Fiscal YearNo. ­(rounded)

10,2007,400

37.8 %GRI 401-1,
WEF

No / other gender­entry (miscellaneous)Fiscal Year

No.

12

n. a.

Sustainability Key Performance Indicators (KPIs)

EMEA
Americas
Asia / Australia
age group < 35
Employee Structure

Female employees

Employees in management positions 1

Employees with permanent working
contract

Hirings

1 Employees in management positions include all managers with disciplinary responsibility.

SIEMENS SUSTAINABILIT Y REPORT 2021

123

GRI 401-1,
WEF

6 Our sustainability indicators

Sustainability Key Performance Indicators (KPIs)

Fiscal/September 30thUnit

FY 2021

FY 2020

Fiscal Year% of average
number of
employees

11.6 %

Fiscal Year% of average
number of
employees
EMEA

Fiscal Year% of average
number of
employees
Americas+/–Standard

8.6 %

34.9 %GRI 401-1,
WEF

8.0 %

6.8 %

17.6 %GRI 401-1,
WEF

18.1 %

13.2 %

37.1 %GRI 401-1,
WEF

Fiscal Year% of average
number of employees Asia /Australia
15.4 %

9.4 %

63.8 %GRI 401-1,
WEF

Fiscal Year% of average
number of
female employees

13.2 %

9.7 %

36.1 %GRI 401-1,
WEF

Fiscal Year% of average
number of
male employees

11.0 %

8.1 %

35.8 %GRI 401-1,
WEF

Fiscal Year% of average
number employees in age
group

26.8 %

18.8 %

42.6 %GRI 401-1,
WEF

Fiscal Year% of average
number employees in age
group

7.8 %

6.0 %

30.0 %GRI 401-1,
WEF

Fiscal Year% of average
number employees in age
group

4.4 %

3.4 %

29.4 %GRI 401-1,
WEF

age group > 54

Fiscal Year% of average
number employees in age
group

2.3 %

2.0 %

15.0 %GRI 401-1,
WEF

Total

Fiscal Year% of new hires

30.2 %

29.7 %

1.7 %GRI 401-1,
WEF

EMEA

Fiscal Year% of new hires

28.6 %

28.6 %

0.0 %GRI 401-1,
WEF

AmericasFiscal Year% of new hires

33.5 %

32.2 %

4.0 %GRI 401-1,
WEF

Asia / Australia

Fiscal Year% of new hires

28.9 %

28.7 %

0.7 %GRI 401-1,
WEF

Germany

Sept. 30th

No. (­rounded)

5,000

5,400

– 7.4 %GRI 405-1,
WEF

Total

EMEA

Americas

Asia / Australia

Women
Hiring Rate

Menage group < 35

age group 35 – 44

age group 45 – 54

Female employees new hired

Disabled employees

SIEMENS SUSTAINABILIT Y REPORT 2021

124

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020

Fiscal Year% of average
number of
employees

9.7 %Fiscal Year% of average
number of
employees

Fiscal Year% of average
number of
employees

Fiscal Year% of numberof total exits

Retiring expected
within next 5 years 2

Sept. 30th

% of total
number employees

Part-timeth

Sept. 30

On leave of absence

Sept. 30th

Germany

Sustainability Key Performance Indicators (KPIs)+/–

Standard

8.4 %

15.5 %GRI 401-1,
WEF

4.7 %

3.5 %

34.3 %

5.0 %

4.8 %

4.2 %

11.3 %

14.5 %– 22.1 %10.3 %

10.0 %

3.0 %No. ­(rounded)

13,80013,900– 0.7 %

No. ­(rounded)

6,300

6,200

1.6 %

Sept. 30th

No. ­(rounded)

83,60087,700– 4.7 %GRI 102-41

Germany

Sept. 30th

% of total
German employees

97.7

97.8

– 0.1 %GRI 102-41

Total

Sept. 30th

Hours

39.5

39.3

0.5 %

EMEA

Sept. 30th

Hours

38.0

37.9

0.3 %

AmericasSept. 30th

Hours

41.0

41.1

– 0.2 %

Asia / Australia

Sept. 30th

Hours

41.9

41.5

1.0 %

Community Total

Sept. 30th

No.

26

35

– 25.7 %GRI 404-2,
WEF

Active participants

Sept. 30th

No.

5

5

0.0 %

GRI 404-2,
WEF

Community Total

Sept. 30th

No.

68

76

– 10.5 %GRI 404-2,
WEF

Active participants

Sept. 30th

No.

7

10

– 30.0 %GRI 404-2,
WEF

Community Total

Sept. 30th

No.

910

1,134

– 19.8 %GRI 404-2,
WEF

Active participants

Sept. 30th

No.

76

64

18.8 %GRI 404-2,
WEF

Total (w/o SHS)

Fiscal Year

No. (rounded)

100,700

102,600– 1.9 %GRI 401-2

Fiscal Year% ofemployees 4

45 %

44 %

2.3 %

GRI 401-2

Fiscal Year% of ­Siemens
Healthineers AG
employees

52 %

50 %

4.2 %

GRI 401-2

Total

Decision employee
Turnover Rate 1

Other reasons (= notdecision empl.)
Dismissals

Employees – use of working hour
programs
Employees represented by an independent trade union or covered by collective
bargaining agreements

Average weekly standard working hours 3

GRI 102-8

Talent Entry Programs

Siemens CEO* Program

Siemens Finance Excellence Program(FEP)

Siemens Graduate Program (SGP)

Employee Share programs
Employees participating in the Siemens
employee share plans

Participation rate of employee shareplans

Total (w/o SHS)
Siemens Healthineers AG

1 Turnover rate is defined as the ratio of voluntary and involuntary exits from Siemens during the fiscal year to the average number of employees.
2 Estimated retiring age 63 years.
3 Contractually agreed weekly working hours at the end of the business year.
4 Based on employees with eligibility to share plans.

SIEMENS SUSTAINABILIT Y REPORT 2021

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6 Our sustainability indicators

Sustainability Key Performance Indicators (KPIs)

Fiscal/September 30thUnit

FY 2021

FY 2020+/–

Standard

Pensions 1

Contributions to defined benefit plans,state plans and defined contribution
plans

Total

Fiscal Year

Million €

3,974

5,451

– 27.1 %GRI 401-2

Contributions todefined contribution
plans

Fiscal Year

Million €

484

710

– 31.8 %GRI 401-2

Contributions tostate plans

Fiscal Year

Million €

1,449

1,844

– 21.4 %GRI 401-2

Employercontributions todefined benefit plans

Fiscal Year

Million €

2,041

2,898

– 29.6 %GRI 401-2

Total

Sept. 30th

No. (rounded)

6,700

6,800

– 1.5 %GRI 404-2

Outside of Germany

Sept. 30th

No. (rounded)

2,000

2,000

0.0 %

GRI 404-2

Germanyth

Sept. 30

No. (rounded)

4,700

4,800

– 2.1 %GRI 404-2

Germany ‒ internals

Sept. 30th

No. (rounded)

3,700

3,900

– 5.1 %GRI 404-2

Germany – for third
parties

Sept. 30th

No. (rounded)

1,000

900

11.1 %GRI 404-2

Germany – newinternals starting infiscal year

Fiscal Year

No.

1,085

1,161

– 6.5 %GRI 404-2

Fiscal Year

No.

788

767

2.7 %

GRI 404-2

Training and development

Apprentices and dual students

Average number of interns / students
with an educational / learning target (e.g.
mandatory internship, doctoral student) Total

Fiscal Year

No.

45

51

– 11.8 %GRI 404-2,
WEF

Number of home countries of participants
Fiscal Year

No.

17

15

13.3 %GRI 404-2,
WEF

Spend on education (apprenticeship)

Total

Fiscal Year

Million €

153.1

159.0

– 3.7 %GRI 404-2,
WEF

Spend on employee training

Total

Fiscal Year

Million €

164.8

161.9

1.8 %

GRI 404-2,
WEF

Spend on employee education andtraining

Total

Fiscal Year

Million €

317.9

320.9

– 0.9 %GRI 404-2,
WEF

Spend on employee training per­employee

Total

Fiscal Year

€

573

551

4.0 %

GRI 404-2,
WEF

Spend on employee training per full time
employee
Total

Fiscal Year

€

581

559

3.9 %

GRI 404-2,
WEF

Total

Fiscal Year

No.

22

17

29.4 %GRI 404-1,
WEF

Digital learning

Fiscal Year

No.

19

11

72.7 %GRI 404-1,
WEF

On-site training

Fiscal Year

No.

3

6

– 50.0 %GRI 404-1,
WEF

Women

Fiscal Year

No.

22

17

29.4 %GRI 404-1,
WEF

Men

Fiscal Year

No.

22

17

29.4 %GRI 404-1,
WEF

Blue-collar Workers

Fiscal Year

No.

12

7

71.4 %GRI 404-1,
WEF

White-collar Workers

Fiscal Year

No.

24

19

26.3 %GRI 404-1,
WEF

International Tech development­programs

Average training hours per employee

Participants

1 Contains data from the discontinued Flender business and the new acquired Varian business.
SIEMENS SUSTAINABILIT Y REPORT 2021

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6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020

Total

Fiscal Year% to base year
(2020)

28 %

n. a.

GRI 404-1,
WEF

Digital learning

Fiscal Year% to base year
(2020)

71 %

n. a.

GRI 404-1,
WEF

Siemens Core Learning Paths (CLP)

Total

Fiscal Year

No.

28

44

Modules in Siemens digital global learning platform “My Learning World”

Total

Fiscal Year

No. (rounded)

100,000

Siemens Potential-Development
Programs (PDP)

Total

Fiscal Year

No.

Total

Fiscal Year

Temporary Workers

Sustainability Key Performance Indicators (KPIs)

Growth rate of learning hours to base
year

+/–

Standard– 36.4 %GRI 404-2,
WEF

59,00069.5 %GRI 404-2,
WEF

34

32

6.3 %

GRI 404-2,
WEF

No.

4

1

300.0 %GRI 403-9,
WEF

Fiscal Year

No.

2

0

GRI 403-9,
WEF

Employees

Fiscal Year

No.

0

0

GRI 403-9,
WEF

Contractors

Fiscal Year

No.

2

1

Total 1

Fiscal Year

No.

0.001

0.000

GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

0.007

0.000

GRI 403-9,
WEF

Employees

Fiscal Year

No.

0.000

0.000

GRI 403-9,
WEF

Total

Fiscal Year

No.

22

n. a.

GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

1

n. a.

GRI 403-9,
WEF

Employees

Fiscal Year

No.

21

n. a.

GRI 403-9,
WEF

Total

Fiscal Year

No.

0.007

n. a.

GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

0.003

n. a.

GRI 403-9,
WEF

Employees

Fiscal Year

No.

0.008

n. a.

GRI 403-9,
WEF

Total

Fiscal Year

No.

1,572

n. a.

GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

247

n. a.

GRI 403-9,
WEF

Employees

Fiscal Year

No.

1,325

n. a.

GRI 403-9,
WEF

Total

Fiscal Year

No.

0.510

n. a.

GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

0.828

n. a.

GRI 403-9,
WEF

Employees

Fiscal Year

No.

0.476

n. a.

GRI 403-9,
WEF

Occupational health & safety

Fatalities – work related

Fatality Rate – work related 2

High-consequence work-related injuries(excluding fatalities) 3

High-consequence injuries rate 4

Recordable injuries

Total recordable injuries rate 5

1 Fatality Rate w/o contractors
2 Number of fatalities x 200,000 / working hours.
3 SHS changed their event reporting method for some countries within the reporting period and therefore this KPI might be incomplete.
4 Number of high-consequence injuries x 200,000 / working hours.
5 Number of Recordable injuries x 200,000 / working hours.
SIEMENS SUSTAINABILIT Y REPORT 2021

127

100.0 %GRI 403-9,
WEF

6 Our sustainability indicators

Fiscal/September 30thUnit

FY 2021

FY 2020

Total

Fiscal Year

No.

856

Temporary Workers

Fiscal Year

No.

Employees

Fiscal Year

Total

Sustainability Key Performance Indicators (KPIs)+/–

Standard907– 5.6 %GRI 403-9,
WEF

115

110

4.5 %

GRI 403-9,
WEF

No.

741

797

– 7.0 %GRI 403-9,
WEF

Fiscal Year

No.

0.278

0.303

– 8.3 %GRI 403-9,
WEF

Temporary Workers

Fiscal Year

No.

0.385

0.680

– 43.3 %GRI 403-9,
WEF

Employees

Fiscal Year

No.

0.266

0.281

– 5.3 %GRI 403-9,
WEF

Occupational Illness cases

Essential Countries

Fiscal YearNo.

78+x 2n. a.

Occupational Illness frequency rate
(OIFR)

Essential Countries

Fiscal YearNo.

n. a. 3n. a.

Fatalities due to occupational Illness

Essential Countries

Fiscal Year

No.

8+x 2

n. a.

Total

Sept. 30th

% of total
number­employees

59.5 %

n. a.

Total

Fiscal Year

Million €

28.5

33.7

– 15.3 %GRI 201-1,
WEF

Total

Fiscal Year% of Net
Income

0.4 %

0.8 %

– 46.9 %GRI 201-1,
WEF

EMEA

Fiscal Year

Million €

12.4

19.5

– 36.4 %GRI 201-1,
WEF

AmericasFiscal Year

Million €

7.1

9.0

– 20.6 %GRI 201-1,
WEF

Asia /Australia

Fiscal Year

Million €

9.0

5.2

74.0 %GRI 201-1,
WEF

Total

Fiscal Year

Million €

12.1

n. a.

GRI 201-1,
WEF

EMEA

Fiscal Year

Million €

7.3

n. a.

GRI 201-1,
WEF

AmericasFiscal Year

Million €

3.3

n. a.

GRI 201-1,
WEF

Asia /Australia

Fiscal Year

Million €

1.5

n. a.

GRI 201-1,
WEF

Total

Fiscal Year

Million €

40.6

n. a.

GRI 201-1,
WEF

Total

Fiscal Year% of Net
Income

0.6 %

n. a.

GRI 201-1,
WEF

EMEA

Fiscal Year

Million €

19.7

n. a.

GRI 201-1,
WEF

AmericasFiscal Year

Million €

10.5

n. a.

GRI 201-1,
WEF

Asia / Australia

Fiscal Year

Million €

10.5

n. a.

GRI 201-1,
WEF

Lost time injuries (LTI)

Lost time injury frequency rate (LTIFR ) 1

Rate of employees covered with OHS MS
certificate

GRI 403-10,
WEF

WEF

Corporate Citizenship

Donations

Sponsoring social programs(e.g. arts and education)

Community investment total

1 Number of Lost Time Cases (LTC) x 200,000 / working hours. LTC are accidents that results in at least one lost working day.
2 Due to changes in the IT systems of German workers compensation board, the number can’t be calculated completely.
3 Due to changes in the IT systems of German workers compensation board, the OIFR can’t be calculated.
SIEMENS SUSTAINABILIT Y REPORT 2021

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6 Our sustainability indicators

Fiscal Year/
September 30th

Sustainability Key Performance Indicators (KPIs)

Unit

FY 2021

FY 2020+/–

DEGREE FRAMEWORK – KPI OVERVIEW (figures generally without Siemens Healthineers)
Decarbonization
CO2 Emission Scope 1 + 2

Fiscal Year

1,000 metric tonsof CO2 equivalents

595

678

Total (w/o SHS)

Fiscal Year% to base year
(2020) 1

0.6 %

n. a.

Total (w/o SHS)

up to Sept.
30th% of total numberof employees

76 %

n. a.

Total (w/o SHS)

Fiscal Year% of relevant
revenue 2

26 %

n. a.

Fiscal Year% of relevantpurchase volume

38 %

n. a.

< 1.0 %

n. a.

Total (incl. SHS)

Supply Chain: Emission reduction to base year– 12.2 %EthicsQuota of participants of Business conduct guideline training (since FY 2020)
Governance

Resource efficiency
Quota of product families with robust eco-design
Purchase quota – Secondary material for metals

Total (w/o SHS)

Purchase quota – Secondary material for plastics

Total (w/o SHS)

Fiscal Year% of relevantpurchase volume

Landfill waste (w/o other disposal and w/o construction waste)

Total (w/o SHS)

Fiscal Year

1,000 tons

7.0

n. a.

Total (w/o SHS)

Sept. 30th

% of persons in
Top Management

27.5 %

22.7 %

Total (w/o SHS)

Fiscal Year% of total numberof employees 3

98 %

n. a.

Digital learning hours per employee

Total (w/o SHS)

Fiscal Year

No.

17

7

Level of access to employee assistance program

Total (w/o SHS)

Sept. 30th

% of total numberof employees

87 %

82 %

Improvement in global LTIFR 4 to base year

Total (w/o SHS)

Fiscal Year% to base year
(2020)

13 %

n. a.

EquityFemale share in Top Management
Share of employees with access to S
­ iemens employee share plans

21.1 %

Employability

1 Base year 2020 is calculated w/o individual supplier emission data.
2 In FY 2021 we had a revenue share of products being in scope of the robust eco design criteria of 55 % of the total Siemens without SHS revenue.
3 Where legally possible and reasonable.
4 Number of recordable injuries x 200,000 / working hours.

SIEMENS SUSTAINABILIT Y REPORT 2021

129

142.9 %
6.1 %

Page 130 – 167

Annex

SIEMENS SUSTAINABILIT Y REPORT 2021

130

7.1 Reporting methodology

7.1

Reporting methodology

Sustainability is a fundamental principle that guides

acquired in April 2021 is not included in the numbers,

our every action. The Sustainability Report 2021

with a few exceptions. Varian’s numbers are only

supplements our financial reporting in fiscal 2021.

included in the key indicators that are also presented

This chapter describes the key elements of ourin the Annual Report, such as revenues and thesustainability reporting.

number of employees. These instances are noted in
the report. Thus, the numbers of the Flender Group,

Reporting approach

which was removed from the basis of consolidation

The Sustainability Report 2021 explains the strategy,in March 2021, are not included in the numbers fororganization, initiatives, programs, managementfiscal 2021. The Flender numbers had still beensystems, measures, and goals of sustainable corporate

presented in fiscal 2020. Minority interests are notgovernance. It supplements the financial reporting

included in the report, as a general rule. Unlessprovided in the current Annual Report and updates theotherwise noted, the key indicators and information

financial reporting from the previous year. It also

reported below relate to the company’s continuing

documents the progress we have made in theoperations. Some management approaches do not

implementation of the Ten Principles of the United

cover all Siemens entities or parts of the organization.

Nations Global Compact, as well as the United Nations

Some parts of the Siemens organization may have

CEO Water Mandate and the Task Force on Climate-introduced specific programs or initiatives that differ

Related Financial Disclosures.

from the general approaches described in this report.
Nonetheless, they are consistent with the DEGREE

This report has been prepared in accordance with theframework and the global non-financial programs

GRI Standards Comprehensive Option, as well as theand initiatives of Siemens.

anti-corruption reporting recommendations of the
Global Compact and Transparency International. Our

Data collection

reporting of human rights activities is based on theGiven the size and worldwide presence of Siemens,

UN Guiding Principles (UN GP) Reporting Framework

data collection poses a logistical challenge. Moreover,and the corresponding guidelines. All figures of the

our companies throughout the world must comply

Environmental Portfolio are reported in accordancewith national regulations concerning the compilation

with the principles set forth in the chapter onand definition of their key figures, which means thatEnvironmental

the generated data is not always comparable. Where

Portfolio

reportingprinciples.

ENVIRONMENTAL PORTFOLIO REPORTING PRINCIPLES.

applicable, we point out any significant limitationsin the information presented in the report. Generally

Reporting period and report boundaries

speaking, there are no standards applicable to all

This report refers to the Siemens 2021 fiscal year

companies for the information published in the(October 1, 2020, to September 30, 2021). Any

report. This applies in particular to certain financial

exceptions are indicated as such. In general, all our

indicators including the revenue attributable to thefully consolidated companies are covered by theEnvironmental Portfolio, for example. As a result, thereport. Only the company Varian Medical System Inc.

data published by us may not be comparable withSIEMENS SUSTAINABILIT Y REPORT 2021

131

7.1 Reporting methodology

the data published by other companies under theon the basis of environmental data collected on asame or similar designations.

quarterly basis.

The data presented in this report is collected via
various internal reporting systems which are for theCollection of data on selected areas of
impact (business-to-society contributions)most part different from those used to collect theStrengthening the economy – Economic

financial information presented in our consolidated

impactfinancial statements. In particular, the internal

An external service provider has analyzed global grossreporting systems used to collect the information

value-added (measured as the contribution to grosspresented in this report may be subject to lessdomestic product [GDP]) and the related employment

stringent internal documentation, data generation,(expressed as number of jobs) and assessed theand audit requirements, also with respect to the IT

impact of the global business activities of Siemens.

systems and controls employed. We reserve the right

Gross value-added is a measure of the value generated

to change the internal guidelines applicable to thein the economy and represents the differencecollection of the data published in this report without

between the value of goods and services sold and theprior notice. Due to rounding, some of the numbers

value of the goods and services used as an input topresented in this report may not add up exactly totheir production. Generally speaking, this value

the presented totals and percentages may not exactly

corresponds to GDP at the company level and sector

reflect the absolute figures to which they refer.

Methodology: environmental reportingand collection of environmental data

level. The sum of the gross value-added contributionsof all economic sectors is equivalent to a country’sGDP. The contribution to GDP and employment isdivided into three levels:

Within our environmental information system, we
evaluated 237 reports from locations in all relevant→ Direct contribution: The increase in GDP andcountries in which defined threshold values for

employment resulting from the supply of Siemens’

environmental management parameters such as

goods and services.

energy usage, resource usage, and emissions were

→ Supply chain spend contribution (indirect): The

exceeded in fiscal 2021. We use absolute values suchworldwide increase in GDP and employment

as energy consumption in gigajoules to measure andcaused by Siemens’ demand for goods andmonitor our environmental impacts. We reportservices from its global suppliers and theirenvironmental data for continued operations. Values

suppliers. This is often referred to as the “indirect

have been extrapolated to 100 % coverage in orderto reflect total consumption. The extrapolation iscontribution.”→ Employee spend contribution (induced): The

conducted on the basis of the area not covered in theworldwide increase in GDP and employment inreporting system. The difference represents a share

the wider economy resulting from the spendingof 18 %. In fiscal 2021, we adjusted the methodologyof salary and wages by employees of Siemensapplied to calculate the primary and secondary

and its suppliers. This is often referred to as theenergy of the extrapolated locations and refined the“induced contribution.”value by application of internal extrapolation factors.
The prior-year values were adjusted to reflect the new
methodology to ensure comparability.
We monitor our environmental impacts for allenvironmentally relevant office and production sites

SIEMENS SUSTAINABILIT Y REPORT 2021

132

7.1 Reporting methodology

This analysis was initially conducted in 2015 andIndependent assurance

updated in fiscal 2019 for Siemens excluding Siemens

Our sustainability reporting is subject to high quality

Energy. The direct contributions were calculated onstandards. As in the previous years, therefore, wethe basis of Siemens data. The indirect and induced

commissioned an independent audit firm to conduct

contributions were estimated with the aid of aa limited assurance of our Sustainability Report 2021.

macroeconomic model (PwC Escher). The reference

The results of the assurance conducted by Ernst &period for the collection of the data presented in the

Young GmbH Wirtschaftsprüfungs­
gesellschaft arechapterpresented in the chapter

OUR MOST IMPORTANT AREAS OF IMPACT

was

fiscal year 2019.

LIMITED ASSURANCE REPORT .

Improving quality of life:
Access to healthcare
Based on the World Bank definition of low-income
and lower-middle-income economies, plus the
specific additions in Africa and conflict regions in the
Middle East defined by Siemens Healthineers, 90
countries of the world have inadequate healthcare.
Touchpoints are calculated with reference to theinstalled base of imaging and advanced therapy
equipment and the number of laboratory tests sold.
Based on available usage data and expert estimates,theassumptions

appliedinperforming

thecalculations are an average number of 2,800
touchpoints per year per installed unit and an average
number of 3.6 laboratory tests per touchpoint.

Improving quality of life:
AI-supported products
AI-supported products are commercial products
containing at least one identifiable and differentiating
AI-supported component. AI-supported products withsimilar core technologies but various deployment
scenarios (e.g., cloud versus workstation, live versus
postprocessing) are counted as separate units.

SIEMENS SUSTAINABILIT Y REPORT 2021

133

INDEPENDENT AUDITOR’S

7.2 Environmental Portfolio reporting principles

7.2

Environmental Portfolio reporting
principles
Environmental Portfolio Guideline
Because

there

were

no

generally

Scope of reporting
accepted

The Environmental Portfolio-related key performanceinternational standards addressing the identification

indicators are revenue and the reduction of ourand reporting of so-called “green products” until thecustomers’ carbon dioxide emissions attributable tointroduction of the EU Taxonomy Regulation as ofelements of the Siemens Environmental Portfolio.

January 1, 2022, we report the revenue generated
from our Environmental Portfolio and the resulting

The reduction of our customers’ carbon dioxide

accumulated annual reduction of carbon dioxide

emissionsiscalculatedbycomparingtheemissions achieved at our customers in accordance

Environmental Portfolio elements with a referencewith the internal regulations defined in oursolution. The annual carbon dioxide reduction

Environmental Portfolio Guideline. Beginning in 2022,

achieved in the reporting year is calculated on the

key figures on sustainable activities will be reported

basis of technical parameters (such as installedin accordance with the new EU Taxonomy.

capacity in megawatts in the reporting year or
operating hours). For all Environmental Portfolio

This Siemens Guideline sets out criteria and processes

elements sold in a reporting year, the annual

for the qualification of elements for the Environmental

reductions are added up to calculate the annual

Portfolio, defines the roles and responsibilities as well

reduction of our customers’ carbon dioxide emissions

as the processes to account for annual customer

at the end of that year.

reduction of carbon dioxide emissions, and refers to
the financial reporting guidelines for the recognition

Our Environmental Portfolio elements are typicallyof revenue. It is based on the Reporting Principles set

long-lasting

forth in “A Corporate Accounting and Reporting

infrastructure elements such as trains that contributeStandard – Revised Edition” and the “GHG Protocol forto the reduction of carbon dioxide emissions not only

Project Accounting” issued by the Greenhouse Gas

in the reporting year, but for many years. For thisProtocol Initiative. These principles are: relevance,

reason, we also calculate the accumulated annualcompleteness, consistency, transparency, accuracy,

reduction of our customers’ carbon dioxide emissions.

and conservativeness. The revenue generated from

The accumulated annual reduction of carbon dioxide

the Environmental Portfolio is in accordance with theemissions is calculated as the reduction of ourrevenue recognition policies explained in

products

(such

as

motors)or

NOTE 2 IN

customers’ carbon dioxide emissions that can be

B.6 NOTES within the Consolidated Financial Statements

attributed to the Environmental Portfolio elements

for fiscal 2021.

installed in the current reporting period (see above),plus the elements installed since the beginning offiscal 2002 that are still in use by the customer.
­If elements installed in previous reporting periods
are no longer in use, they are no longer included in
the calculation of the accumulated annual reductionof carbon dioxide emissions in the respective
reporting period.

SIEMENS SUSTAINABILIT Y REPORT 2021

134

7.2 Environmental Portfolio reporting principles

For the Environmental Portfolio elements installed in

If the revenue generated from an Environmental

a given reporting period, we include the reduction ofPortfolio element cannot be accurately separated

carbon dioxide emissions over the entire reportingfrom our total revenue, the respective revenue is notperiod, irrespective of the actual date of installation

presented and reported due to the principle ofduring the year of first-time recognition.

conservativeness.

Governance – Processes and definitions

The Siemens Sustainability Board chaired by Siemens

The qualification and reporting of our Environmental

Managing Board member and Chief Sustainability

Portfolio elements are based on clearly defined

Officer Judith Wiese confirms any changes made toprocesses and criteria.

the composition of the Environmental Portfolio every
year. Another task of the Sustainability Board is to

In principle, the products, systems, solutions, anddiscuss potential concerns of external stakeholders

services of the Siemens operating units in thewith regard to the addition or removal of certain

industrial business can qualify for the Environmental

technologies to or from the Environmental Portfolio.

Portfolio. The entire Siemens industrial businessappropriate qualification of Environmental Portfolio

Criteria for the addition of elements tothe Environmental Portfolio

elements based on the criteria described in the

An Environmental Portfolio element can be a product,

following. Newly integrated elements are included insystem, solution, or service, as defined above.

portfolio is reviewed every year to ensure thethe report as of the date when they were added.
Elements that no longer fulfill our qualification

If all the products, systems, solutions, or services ofcriteria are removed from the Environmental Portfolio;a Siemens organizational unit meet one of theprior reporting periods are not adjusted.

selection criteria, this unit may be considered in its
entirety as an Environmental Portfolio element.

Before being added to the Environmental Portfolio,
potential new Environmental Portfolio elements are

Furthermore, a core component of a system or

subjected to a multilevel internal evaluation processsolution may qualify as an Environmental Portfolio

and reviewed by the respective Siemens entities andelement if the component provided by Siemens is key

the Sustainability Department.

to enabling the system or solution to generate an

Within this process, Siemens verifies the completenessenvironmental functionality of the overall system orof documentation supporting the fulfillment of thesolution cannot be achieved without the component

qualification criteria. It also looks for any significant

provided by Siemens. Examples of core components

environmental benefit. This means that theadverse impacts. If adverse impacts are found, it must

qualifying as elements of the Siemens Environmental

be determined whether a potential Environmental

Portfolio are transformers for wind farms.

Portfolio element, despite fulfilling the qualification
criteria, could possibly have much greater impacts on

Service types are differentiated between “product-the environment elsewhere in the element’s lifecycle.

related services” and “value-added services.” If a

If significant adverse impacts are identified, theSiemens product, system, or solution qualifies as ancorresponding element is not added to theEnvironmental Portfolio element, the revenue andEnvironmental Portfolio.

where applicable, the annual reduction of ourcustomers’ carbon dioxide emissions attributable to“product-related services” are generally accounted for

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7.2 Environmental Portfolio reporting principles

and reported in connection with the relevant

Renewable energy

Environmental Portfolio element. In the case ofThis criterion is met by technologies in the field of“value-added services,” the revenue and whererenewable energy sources or smart grid1 applications

applicable, the annual reduction of our customers’

and their respective core components. The

carbon dioxide emissions are only accounted for andrenewable energy criterion covers technologies forreported if the service itself qualifies as an

power generation from wind and biomass, forEnvironmental Portfolio element by meeting one ofexample.

the selection criteria described below.
Examples of such Environmental Portfolio elements
To qualify for inclusion in the Environmental Portfolio,
an element must meet one of the following selection

include smart metering and grid applications.

be used for military or nuclear power purposes are

Determination of the reference solution:
Baseline methods

not included in the Environmental Portfolio.

Energy efficiency and the annual reduction of ourcriteria. Products, systems, solutions, and services tocustomers’ carbon dioxide emissions are determined

Energy efficiency

by comparison with a reference solution (baseline).

The criterion for energy efficiency is an improvement

There are three different options for determining thein energy efficiency of 20 % or more during thereference solution: before-and-after comparison,customer use phase compared to the applicabledirect comparison with a reference technology, orbaseline, or a reduction of at least 100,000 metriccomparison with the installed base. The final decision

tons of carbon dioxide equivalents per reporting

as to which baseline is to be applied is made by theperiod in the customer use phase compared to therespective unit:

applicable baseline. If an energy efficiency increase
can only be reasonably defined as reduction of

Before-and-after comparison

dissipation losses, a 20 % reduction of dissipation loss

A before-and-after comparison refers to thewould also qualify products for our Environmental

determination of the difference between an initial

Portfolio.

situation at the customer and the situation after
installation of Siemens products, systems, solutions,

Examples of products and systems that meet theor services. A before-and-after comparison presupposes

abovementioned energy efficiency criteria include

the presence of previously existing products, systems,

smart building technology systems (reducing carbon

solutions, or services at the customer, the characteristics

dioxide emissions by at least 100,000 metric tons perof which are improved or replaced by the use ofreporting period) and passenger and freight rail

Siemens products, systems, solutions, or services. It

transport (20 % efficiency improvement).

makes sense to apply such a comparison when theenergy consumption of a building is improved, forexample.
1 According to the National Institute of Standards and Technology(NIST) – Smart Grid Interoperability Standards Project (USA), theterm smart grid “refers to a modernization of the electricity delivery
system so that it monitors, protects, and automatically optimizes
the operation of its interconnected elements – from central anddistributed generation through the high-voltage transmission
network and the distribution system to industrial users and building
automation systems, to energy storage installations and to end-use
consumers and their thermostats, electric vehicles, appliances, andother household devices.”

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7.2 Environmental Portfolio reporting principles

Direct comparison with a reference

The calculation of the reduction of carbon dioxide

technology

emissions is based on a specific comparison for every

Direct comparison with a reference technology refers

relevant Environmental Portfolio element with ato the difference between Siemens products, systems,baseline. For this calculation, we focus on thosesolutions, or services and either an appropriate otherelements that have a material impact on the overall

technology or predecessor system. Direct comparison

reduction of carbon dioxide emissions.

with a reference technology presupposes theare employed for the same or a similar purpose. An

Emission factors considered for
calculating the annual reduction ofcarbon dioxide emissions

example is the comparison of passenger or freight rail

For some emission reduction calculations, thetransport with air or road transport.

baseline reference for the installed base is determinedexistence of alternative or predecessor products,
systems, solutions, or services in the market, whichusing known global emission factors such as thoseComparison with the installed basefor power production. The baselines used for our

Comparison with the installed base refers to thecalculations are mainly based on data from thedifference between the Siemens products, systems,

International Energy Agency (IEA) for gross power

solutions, or services and an average of several

production and grid losses, data from theinstallations employed for the same or a similarIntergovernmental Panel on Climate Change (IPCC)

purpose. Comparison with an installed basefor fuel-based emission factors, and our own

presupposes the availability of global or regional

assessments of power production efficiency.

average data on several installed products, systems,
solutions, or services employed for the same or a

The most relevant emission factors applied in 2021

similar purpose. An example is the comparison

are:between motors with frequency converters andmotors without frequency converters.
When calculating emission reductions compared tothe baseline, we consider either direct savings (dueto the use of efficient motors, for example) or theindirect effects that occur when different products ina system interact and generate emission reductions(such as building automation components, forexample). If Siemens only delivers core components
but not the entire system, the annual reduction ofcarbon dioxide emissions by the customer is calculated
for these parts.
The baselines are reviewed annually and modified
when necessary, such as when statistical data on the
installed base must be updated due to technicalinnovations or regulatory changes.

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Category

Emission factor(g CO2/kWh)Baseline forEnvironmental Portfolio
elements

Global power generationfrom all primary energy
carriers

519

Energy conversion

Global power generationfrom fossil energy
carriers

809

Renewable energy

Use of electricity(including transmission
losses)558

All kinds of electricity
use except trains

Source: IEA (IEA World Energy Outlook 2020 with 2020 factors for the current year and2019 factors for the previous year), own calculations.

7.2 Environmental Portfolio reporting principles

For consistency reasons, we generally apply global

application of global emission factors that could differ

emission factors for calculating emission reductions

from local conditions, use patterns at customers thatunless the specific conditions of a solution require themay be different from standard use patterns applied

application of local emission factors. For example, we

for calculating the reduction of carbon dioxide

apply the emission factor 558 g/kWh for the use ofemissions, the assessment of the service life of theelectricity, based on the global energy generation

Environmental

from all primary energy carriers, as the baseline forassessments of our own production efficiency factors,

Portfolio

elements,

internal

calculating the annual reduction of carbon dioxide

the share of a core component, and expert estimatesemissions attributable to frequency converters.

if no other data is available.

Generally, our approach includes all greenhouse

As a result, the revenue from our Environmental

gases covered by the Kyoto Protocol. We consider

Portfolio and the reduction of our customers’ annual

carbon dioxide as the only relevant greenhouse gas

carbon dioxide emissions may not be comparablewith respect to power generation and electricalwith the data published by other companies underapplications; however, we include other greenhousethe same or similar designations. We report thegases in our calculations if they occur in technicalannual reduction of carbon dioxide emissions in theapplications.

period when the Environmental Portfolio element
was installed. The installation period is defined by

For some Environmental Portfolio elements, we domilestones or determined on the basis of estimatednot know the exact parameters of use by ourconstruction phases. This may differ from the timing

customers. In these cases, therefore, we applyof revenue recognition.

internal and external expert estimates, with due
In addition, the revenue generated from ourregard to the principle of conservatism.

Estimates applied for reporting purposes
To date, there are no generally valid international

Environmental Portfolio and the reduction of ourcustomers’ annual carbon dioxide emissions are
subject to internal documentation and review

standards applicable to all companies for therequirements which are less complex than thosequalification of products, systems, solutions, andapplied to our financial information. We may change

services for environmental and climate protection or

our policies for the recognition of revenue from ourfor the registration and calculation of the revenues

Environmental Portfolio and the reduction of ourand the quantity of carbon dioxide emission

customers’ annual carbon dioxide emissions in the

reductions attributable to such products, systems,

future without prior notice.

solutions, and services.
Therefore, the inclusion of elements in theEnvironmental Portfolio is based on criteria,
methodologies,

andassumptions

that

other

companies and stakeholders may view differently.
Factors that could give rise to such differences include
the choice of baseline methodology to be applied, the

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7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

7.3

Task Force on Climate-Related
Financial Disclosures (TCFD)
The Task Force on Climate­-Related Financial

was again regularly addressed during this reporting

Disclosures of the G20 Financial Stability Board

year at the meetings of the SSB. Results include thereleased a voluntary framework for companies tosuccessful adoption of a 1.5°C-aligned climate target,

reportwhich has been validated by the Science Based

their

own

climate-related

risks

and

opportunities and disclose the corresponding

Targets

information to investors, lenders, insurers, and otheroperationalization of the DEGREE framework and theInitiative(SBTi),

as

well

as

the

stakeholders. This Annex provides an overview of themateriality analysis as the basis for the further

activities conducted by Siemens on the basis of thesedevelopment of the company’s sustainability efforts.

recommendations and refers to sources with

The reduction of greenhouse gas emissions has been

additional information.

incorporated into the compensation system of theManaging Board and the senior management in the

Our climate action governanceform of an internal Siemens ESG/Sustainability Index.

Governance on the Managing Board level

Therefore, it represents the central steering element

All strategic sustainability activities are overseen bythat is monitored on a regular basis.

our Chief Sustainability Officer (CSO). The CSO is amember of the Siemens Managing Board and chairs

In addition to strategic sustainability activities, thethe Siemens Sustainability Board (SSB), which

Managing Board is also responsible for operational

consists of representatives of the businesses,

environmental protection. The responsibility for thecountries, and units with governance responsibilities

implementation of environmental guidelines is(technical and professional functions). The SSB is thedefined in the EHS Principles, an internal Managing

central steering committee for the strategic

Board guideline. The EHS Global Board, whichdevelopment of sustainability at Siemens, and makes

consistsofspecialized

experts,

develops

decisions regarding key sustainability matters. Where

environmental protection measures and programs

necessary,and advises the responsible Managing Board member

theManaging

Board

addresses

sustainability-related risks and opportunities ofin charge of environmental protection, in consultation

strategic and company-wide importance, and adopts

with the SSB.

appropriate measures. At quarterly meetings, the SSB
discusses and defines strategic sustainability topics,

Additional information:such as the decision to become carbon-neutral by

ON SUSTAINABILIT Y MANAGEMENT,SUSTAINABILIT Y REPORT, CHAPTERCDP C1,

DEGREE

2030. The SSB is therefore also responsible for our
strategic measures in the areas of sustainability andGovernance on the Business andclimate protection along the entire value chain. For

Management level

example, it was the Managing Board that adopted

The Sustainability Director of Siemens heads thethe DEGREE sustainability framework in fiscal 2021.

Sustainability Department and supports the CSO in

The DEGREE framework outlines the material topics

performing his or her duties. The Sustainability

for Siemens within which we have set ambitious

Director reports to the CSO and is a member of thegoals, including the decarbonization of Siemens’

SSB. The Sustainability Department is responsible forown operations (Scope 1 and 2) and the company’s

defining the sustainability strategy of Siemens andupstream supply chain (Scope 3). Climate change

coordinating the climate neutrality program, among

SIEMENS SUSTAINABILIT Y REPORT 2021

139

7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

other tasks. The CEOs of businesses and countries are

sustainable industrialization. These fields are

responsible for implementing sustainability within

becoming increasingly important as the world

the Group. This responsibility includes taking

transitions to a low-carbon economy, supporting oursustainability aspects strategically into account all

business strategy. We therefore see a favorable

along the value chain within their organizations’political and regulatory environment (including

business activities, including climate change as wellsustainability) as an opportunity. We see opportunities

as the defined ambitions of the DEGREE framework.

from potential improvement in the geopolitical policy

In all their decisions, strategies, processes, andenvironment, which could quickly restore a more

systems, they must also take account of businesspositive industrial investment sentiment that supports

opportunities and business risks that relate to

the growth of our markets. By enabling our customers

sustainability. They also set the targets for strategic

to lower their GHG (Greenhouse Gas) emissions

sustainability activities in their sphere of responsibility.

across our portfolio and by reducing CO2 emission in

In their implementation work, the CEOs of the various

our own operation, Siemens strives to support thebusinessesbytrend toward a low-carbon economy. Siemens also

Sustainability Managers whom they appoint. Thesewelcomes and supports, from an opportunity

andcountries

aresupported

Sustainability Managers maintain close contact withperspective, recent legislative and governmental

their colleagues and the Sustainability Department

accelerations to mitigate climate change worldwide,and build up a network of sustainability experts. This

especially in Europe through e.g. the Green Deal orsustainability network also includes specialist

Sustainable Finance Initiative.

functions such as Environment, Health, and Safety

REPORT CHAPTER 8.4 OPPORTUNITIESCOMBINED MANAGEMENT(EHS). Among other things, the EHS Department is
responsible for the Eco Efficiency @ Siemens program

Potential

transition(e.g.,

regulation,market,introduced in 2021, which strives to promote circulartechnology) and physical climate risks are assessed

economy by means of responsible product design,

as part of the risk process. We have identified anenvironmental protection, and resource conservation.

increasing sustainability focus as a risk. The increasing

The EHS Department also supports the business units

environmental, social, and governance requirementsin their efforts to reduce greenhouse gas emissions

from governments and customers as well as financing

in the company’s own operations. The Supply Chain

restrictions for greenhouse gas-emitting technologies

Management Department supports our businesscould result in additional costs. A negative publicunits in their efforts to promote decarbonization inperception could lead to reputational damage andthe supply chain.

have an impact on achieving our business goals. In
the fiscal 2021, we introduced a binding ESG risk set

Additional information:

SUSTAINABILITY REPORT, CHAPTERON

SUSTAINABILIT YENVIRONMENTCDP C1,AND

MANAGEMENT,PRODUCT ECO EXCELLENCE PROGRAM,

DEGREEof rules and associated with this, an optimized due
diligence process. This supports the Siemens
businesses with due diligence in the customeroriented environment with a view to possible

Our strategic response to climate-related
opportunities and risks

human rights and reputational risks.

Climate-related opportunities and risks

MANAGEMENT REPORT CHAPTER 8.3 RISKS

environmental and social risks as well as related
COMBINED

We have officially defined sustainability as anadditional strategic imperative for our investment

Climate change and climate protection measures aredecisions: from company acquisitions to customer

important issues for our stakeholders. We therefore

projects. As a global technology company andhelp our customers lower their greenhouse gas

innovation leader in the fields of electrification,

emissions by offering them low-carbon and energy-

automation, and digitalization, Siemens supports

efficient products, solutions, and services. Products

SIEMENS SUSTAINABILIT Y REPORT 2021

140

7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

from our Environmental Portfolio (EP) especially help

agreement. We use the web-based tool Carbon Web

our customers reduce their CO2 footprint, lower

Assessment (CWA) for this purpose.

energy costs, and enhance their profitability by way

PROTECTION

of higher productivity. In fiscal 2021, we reduced our

MANAGEMENT REPORT,

customers’ CO2 emissions by 88 million tons throughAND

SUPPLYCHAIN

andCLIMATECOMBINEDSUSTAINABILIT Y STRATEGY

all Environmental Portfolio elements installed andManagement of climate-related risks

operated at customer sites. Specifically, we helped

At the end of fiscal 2020, we published an internal

our customers reduce their CO2 emissions by a further

Sustainability Guideline establishing a new ESG Risk

8 million tons in fiscal 2021. Starting in 2022, theFramework. As an essential element of the new

new EU taxonomy will introduce a classification

DEGREE framework, specifically in the field ofsystem for sustainable business activities which could

Governance, we rolled out the Risk Due Diligence Tool

supplement or replace the current Environmental(ESG Radar), which operates on the basis of material

Portfolio reporting of Siemens AG. In addition, werisk fields.

invested €4.9 billion in research and development(R&D) activities with the aim of developing innovative

Climate-related risks and opportunities are embedded

and sustainable solutions for our customers and ourin the Siemens-wide ERM approach. All identified

own businesses. For example, our SI business unit

climate risks are assessed and measures for risk

was established with a clear focus on decentralization,

prevention, transfer, or mitigation are devised for all

decarbonization, and energy efficiency in buildings

relevant risks. In this analysis, we apply climate

and cities. The SI strategy addresses the current

parameters derived from the latest insights fromtechnologies

global studies, weather statistics, and trends, whichassociated with grid edge and electrification by

are based on international experience and the data

challenges

andharnesses

newoffering products and solutions for distributed energy

of primary insurers and reinsurers. However, thesesystems, photovoltaic inverters, energy storage,

risks would have only led to immaterial changes insmart, sustainable buildings, and electromobility

the operations, revenue, or other expenses thus far.

including charging infrastructure, all enabled by

In addition, we conduct local risk assessments anddigitalization. We have set ourselves the goal ofcontinually adjust our protection concepts to mitigate

making our own operations carbon-neutral by theidentified risks. For every new construction project,

year 2030. In the past fiscal year, for example, we

for example, our Insurance Department conducts a

already cut the emissions of our own operations byrisk analysis with particular attention to natural

more than half compared to 2014. Compared to thehazards, which influences the selection process forfiscal 2020, we reduced our Scope 1 and Scope 2

new sites and for technical, organizational, andemissions by a further 83 kt CO2 or 12 % in 2021. Our

physical protection measures. The collected data andambitious decarbonization measures and targets,

information enable us to identify geographic regions

both for our own operations and for the upstream

in which we must pay particular attention to risks

supply chain, also prevent potential transition climate

arising from changes in physical climate parametersrisks and increase our resilience and energythat could affect our locations. For example, we will

independence in our own factories. Under the Carbon

make structural adjustments to one of our German

Reduction@Suppliers approach, we apply a model tosites in Regensburg as a precautionary measure to

calculate the upstream greenhouse gases of ourprotect against heavy rainfall events. Among othersuppliers and are working intensively on methods tomeasures, we will install additional emergency

calculate the exact CO2 footprints of our suppliers andoverflow channels on the roof of the production hall

reduce emissions on the basis of individual target

to reduce any damage caused by greater water loads.

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141

7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

In 2020, we again improved our process for assessing

disruptions. We have been able to ensure thephysical risks also in order to meet the rising demands

resilience of our supply chain in times of major crisesof a changing insurance market with lower coveragewith the aid of proven risk indicators.

capacities due to higher costs for natural disasters.
Together with our insurer and other external risk data

Additional

information:

providers, we annually assess more than 80 % of our

CHAPTER ON CLIMATE PROTECTION,

insurance values with regard to fire protection, as well

SUPPLY CHAIN ;as natural disasters such as storms, floods, andAND 8.4,

SUSTAINABILIT YREPORT,SUSTAINABILIT Y IN THE

COMBINED MANAGEMENT REPORT CHAPTER 8.3

CDP C2 AND C3hurricanes. This analysis is based on standardized
RMS data (RMS = Risk Management Solution). We

Analysis of climate-related scenarios

identify the few risk-prone locations on the basis ofDifferent climate scenarios are used at Siemens forthis analysis. In Europe, we particularly analyzed

different purposes, such as the business strategy, theflooding risks. By contrast, our sites in the United

decarbonization strategy, and the identification ofStates, the Philippines, and Japan are exposed to theopportunities and risks. Our decarbonization target,

risk of storms and hurricanes. A more specific risk

which is approved by the Science Based Targets

analysis was conducted for these identified locations.

Initiative, is aligned with the 1.5°C target andWe share the results with the insurance market in thetherefore the Paris Agreement. Decarbonization willinterest of insurability and optimized, risk-adjusted

change the entire energy value chain in the coming

premiums. In addition, and in accordance with ourdecades. By providing innovative technologies, we

EHS management system, we have defined measures

see ourselves as a leading decarbonization partner tofor the identified locations such as the installation of

our customers and society in general. To fulfill thisflood barriers and the reinforcement of roofs.

role, we must have an exact understanding of the

Climate change also affects the global water balance.

30 years and beyond. We mainly rely on the scenarios

Based on the Siemens water strategy and our globallyof IHS Markit, IEA, and Bloomberg NEF for planningobligatory EHS Guidelines, every ecologically relevant

our business strategy and identifying company-wide

technological changes that must be made in the next

location must additionally conduct a water risk

risks and opportunities. These scenarios help us

assessment. This includes an assessment of climate-identify trends in the energy and mobility markets.

related water risks such as water scarcity, the risk of

For business planning purposes, we apply different

floods and droughts, and general water availability.

scenarios such as IHS Inflections and Green Rules, IEA

For this assessment, we use data from the Aqueduct

STEPS, SDS, NZ2050, and BloombergNEF New Energy

Water Risk Atlas from the World Resources Institute

Outlook. These scenarios help us predict market(WRI). With the aid of additional internal analyticaldevelopments, assess the implications of different

systems, Siemens assesses the risks that result on the

scenarios, and make business decisions on this basis.

local level from our sites’ activities and sets them inWith a view to our own business, the analysis ofrelation to regional water risks. Locations found toclimate-related scenarios enables us to predict thehave a high risk in this assessment must set targets

potential consequences in terms of regulatory

to reduce it. In fiscal 2021, 84 % of our locations had

requirements, R&D, and customer trends andimplemented this water strategy.

requirements. To test the resilience of our Carbon
Neutral Program, we have applied a specially

Natural disasters can also cause interruptions in ourdeveloped, extensive multimodal simulation tool andsupply chain. However, climate-related supply chain

compared the results with external research such as

risks are currently low thanks to our extensive supply

that of IRENA, Fraunhofer, IHS, Agora Energiewende,base

suppliers.

and IEA. Our business units also conduct business-

Nonetheless, we analyze potential supply chain

specific scenario analysis. Experts of Siemens SI have

with

only

few

SIEMENS SUSTAINABILIT Y REPORT 2021

single-source1427.3 Task Force on Climate-Related Financial Disclosures (TCFD)

developed a so-called high-price scenario by using

procedures is intended to help ensure that the

IHS Autonomy, the Sustainable Development Scenario

Managing Board and the Supervisory Board are fullyof the IEA, and the Energy Revolution Scenario of

informed about significant risks in a timely manner.

Greenpeace, in order to identify potential risks for our
CO2 reduction plan. We regularly review the

Risk management at Siemens builds on arobustness of our program to reduce our CO2

comprehensive, interactive and management-

emissions with reference to external energy priceoriented Enterprise Risk Management (ERM)

scenarios and the real development of energy prices

approach that is integrated into the organization andand adjust our measures as needed.

that addresses both risks and opportunities. Our ERM

Additional information:

Standard (Committee of Sponsoring Organizations

approach is based on the globally accepted COSO
CDP C3.2of the Treadway Commission) Enterprise Risk

Our risk management approach toclimate-related opportunities and risks

Management – Integrating with Strategy andBasic principles of risk management

Organization for Standardization) Standard 31000

Our risk management policy stems from a philosophy(2018) and is adapted to Siemens requirements. Theof pursuing sustainable growth and creating

frameworks connect the ERM process with our

economic value while managing appropriate risks

financial reporting process and our internal control

Performance (2017) and the ISO (Internationaland opportunities and avoiding inappropriate risks.

system. They consider a company’s strategy, theAs risk management is an integral part of how weefficiency and effectiveness of its business operations,plan and execute our business strategies, our risk

the reliability of its financial reporting and compliancemanagement policy is set by the Managing Board. Ourwith relevant laws and regulations to be equallyorganizational and accountability structure requires

important.

each of the respective managements of ourorganizational units to implement risk management

Our ERM process aims for early identification andprograms that are tailored to their specific industries

evaluation of, and response regarding, risks andand responsibilities, while being consistent with theopportunities that could materially affect theoverall policy.

achievement of our strategic, operational, financial
and compliance objectives. The time horizon isEnterprise Risk Management (ERM) process

typically three years, and we take a net risk approach,We have implemented and coordinated a set of risk

addressing risks and opportunities remaining after

management and control systems which support us

the execution of existing and effective measures andin the early recognition of developments that could

controls. If risks have already been considered injeopardize the continuity of our business. The mostplans, budgets, forecasts or the consolidated

important of these systems include our enterprise-financial statements (e.g. as a provision or risk

wide

and

contingency), they are supposed to be incorporated

management reporting. Strategic planning is

processesforstrategicplanningwith their financial impact in the entity’s businessintended to support us in considering potential risks

objectives. As a consequence, only additional risks

and opportunities well in advance of major businessarising from the same subject (e.g. deviations fromdecisions, while management reporting is intended

business objectives, different impact perspectives)to enable us to monitor such risks more closely as ourshould be considered. In order to provide abusiness progresses. Our internal auditors regularlycomprehensive view of our business activities, risks

review the adequacy and effectiveness of our risk

and opportunities are identified in a structured way

management. Accordingly, if deficits are detected, it

combining elements of both top-down and bottom-

is possible to adopt appropriate measures for their

up approaches. Reporting generally follows aelimination. This coordination of processes andquarterly cycle; we complement this periodic

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7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

reporting with an ad-hoc reporting process that aims

responding to project risks at an early stage, evento escalate critical issues in a timely manner. Relevant

before the bidding phase. Furthermore, we maintainrisks and opportunities are evaluated in terms ofappropriate insurance levels for potential cases ofimpact and likelihood, considering different impact

damage and liability risks in order to reduce ourperspectives,

objectives,

exposure to such risks and to avoid or minimize

reputation and regulatory requirements. The bottom-

potential losses. Among others, we address the risk

up identification and prioritization process isof fluctuation in economic activity and customer

includingbusiness

supplemented by workshops with the respective

demand by closely monitoring macroeconomic

managements of our organizational units. The top-

conditions and developments in relevant industries,

down element ensures that potential new risks andand by adjusting capacity and implementing cost-

opportunities are discussed at different management

reduction measures in a timely and consistentlevels and are included in the subsequent reportingmanner if they are deemed necessary. Worldwide

process, if found to be relevant. The topics ofthere are risks from the transmission of infectious

sustainability and especially climate change haveagents from animals to humans, from humans tobeen specifically addressed in the last few years.

humans and in other ways. Epidemic, pandemic orReported risks and opportunities are analyzed

other infectious developments such as bioterrorism

regarding potential cumulative effects and areto cause high disease rates in countries, regions or

aggregated within and for each of the organizational

continents. We constantly check information fromunits mentioned above.

the World Health Organization (WHO), the - Centers
for Disease Control and Prevention in the U.S. andResponsibilities are assigned for all relevant risks andEurope, the Robert Koch Institute in Germany andopportunities, with the hierarchical level ofother institutions in order to be able to identify early

responsibility depending on the significance of theepidemic or pandemic risks and determine andrespective risk or opportunity. In a first step, assuming

initiate related mitigation actions as early as possible.

responsibility for a specific risk or opportunity
involves choosing one of our general response

Additional information:

strategies. Our general response strategies withCHAPTER 8

COMBINED MANAGEMENT REPORT

respect to risks are avoidance, transfer, reduction or
acceptance of the relevant risk. Our general response

Climate-related risks within the risk

strategy with respect to opportunities is to “seize” themanagement system

relevant opportunity. In a second step, responsibility

Climate-related risks and opportunities arefor a risk or opportunity also involves the development,

embedded in the Siemens-wide ERM approach,initiation and monitoring of appropriate response

which addresses both risks and opportunities.

measures corresponding to the chosen response

The consideration of sustainability and especiallystrategy. These response measures have to be

climate risks and opportunities is an integral part

specifically tailored to allow for effective riskof the regular top-down process in which material

management. Accordingly, we have developed aissuesandtrendsareassignedtothevariety of response measures with different

corresponding units for the identification of risks

characteristics. For example, we mitigate the risk ofand opportunities in risk workshops. As a result,fluctuations in currency and interest rates bythese issue-related recommendations are madeengaging in hedging activities. Regarding ouravailable to all businesses in their quarterly

projects, systematic and comprehensive projectreviews. Combined with the bottom-up approach,management with standardized project milestones,

this top-down approach provides a comprehensive

including provisional acceptances during project

overview of our business activities and theexecution and complemented by clearly defined

associated risks and opportunities.

approval processes, assists us in identifying and

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7.3 Task Force on Climate-Related Financial Disclosures (TCFD)

Climate change is not treated as a separate category

contribute to this CO2 reduction, including thewithin the ERM approach, but is considered within

reduction of building emissions, the electrification of

the four topic areas of strategic, operational, financial,

the company’s vehicle fleet, and our Carbon

and compliance-related risks. Bottom-up risk

Reduction@Suppliers activities. In order to remain

processes have been implemented throughout the

carbon-neutral in our own operations after 2030, we

company to evaluate potential climate-related net

will consider offset options, among other things, torisks for ERM reporting. These processes are, forneutralize unavoidable emissions. An Offsetting

environmental

Guidance Note has laid the basis for purchasing

management system, including the corresponding

CO2 certificates. This guidance is meant to ensure therisk assessment of environmental impacts on ourconsistency and quality of offset programs.

example,appliedwithintheproduction operations or products.

ENVIRONMENT

We have further strengthened our climate strategy
Material opportunities and risks are disclosed on an

by confirming our 1.5°C Science Based Target andaggregated basis within the abovementioned four

joining the RE100, EV100, and EP100. Key elements

topic areas in the company’s Annual Report.

of

Additional information:company’s operating activities into the long-term

themanagement

approachincludetheincorporation of CO2 reduction targets in the
CHAPTER 8,

COMBINED MANAGEMENT REPORTCDP C2.1 AND C2.2,

SUSTAINABILIT Y REPORT,

incentive (LTI) of the senior management and the
responsibility of the businesses for reducing their

CHAPTER ON ENVIRONMENT

respective emissions. Thus, our commitment toMetrics and targets

climate protection is firmly embedded in the

Siemens considers climate-related risks along thecompensation of Managing Board members andentire value chain. Accordingly, we define metrics forsenior management.

the reduction of greenhouse gas emissions in the
supply chain, in the company’s own operations, andAdditional information:

for the goods and services we provide to our

CDP C4, C6, C7 AND C9,customers. We disclose our greenhouse gas emissions
and

the

associated

ENVIRONMENT AND

risks

and

opportunities.

CDP C4Siemens was the first global industrial company tocommit to the goal of climate neutrality in 2015. By
joining the Science Based Targets Initiative (SBTi) andcommitting to decarbonization targets under the
DEGREE framework, we have reinforced our existing
decarbonization activities along the entire value
chain. Within our own operations, we want to achieve
net zero emissions (in accordance with our validated
1.5°C-aligned SBT) by 2030. In connection with our
SBTi commitment, we have also committed toreducing absolute Scope 3 emissions by 15 % by 2030
from the base year 2019. An additional target
established in the DEGREE framework is to reduce
upstream supply chain emissions by 20 % by 2030
(base year 2020) and then reduce them to net zeroby the year 2050. A number of ongoing activities will

SIEMENS SUSTAINABILIT Y REPORT 2021

145

GOVERNANCE,ENVIRONMENT,COMBINED MANAGEMENT REPORTCHAPTER 10 COMPENSATION REPORT7.4 GRI Standards – key topics and boundaries

7.4

GRI Standards – key topics andboundaries
Sustainability topics
Climate protection 1

Sustainable productdesign and life cycle
management 1
Innovation andbusiness model 2

Shared value

DEGREEGRI Standard

D ECARBONIZATIONGRI Standard 302
EnergyGRI Standard 305
EmissionsR ESOURCEEFFICIENCYGRI Standard 204
Procurement Practices
GRI Standard 301
Materials

D ECARBONIZATIONGRI Standard 201
Economic Performance

R ESOURCE EFFICIENCY

Partner management
and collaboration 2

DimensionSDGs

D ECARBONIZATIONG OVERNANCEGRI Standard 203
Indirect Economic Impacts

Responsible
governance 2

G OVERNANCEGRI Standard 201
Economic PerformanceGRI Standard 202
Market Presence

Future of work 2

E QUIT Y

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

E MPLOYABILIT Y

Sustainable handling of
natural resources andmaterial efficiency 2

1 Top 3 material sustainability topics
2 
12 additional material sustainability topics

SIEMENS SUSTAINABILIT Y REPORT 2021

R ESOURCE EFFICIENCYGRI Standard 301
Materials
GRI Standard 302
EnergyGRI Standard 303
Water and Effluents (2018)
GRI Standard 306
Waste (2020)

Result of the assessment of organizational impacts (inside-out, i.e., on the environmentand society), stakeholder relevance and business criticality (outside-in)1467.4 GRI Standards – key topics and boundaries

DEGREEGRI Standard

G OVERNANCEGRI Standard 414
Supplier Social Assessment
GRI Standard 308
Supplier Environmental
Assessment

Cyber-security anddata management 2

E THICSGRI Standard 201
Economic Performance

Employee health andsafety 2

E MPLOYABILIT Y

GRI Standard 403
Occupational Health and
Safety (2018)

Diversity, equity andinclusion 2

E QUIT Y

GRI Standard 405
Diversity and Equal Opportunity
GRI Standard 406
Non-Discrimination

Customer safety andproduct quality 2

G OVERNANCEGRI Standard 301
Materials

Corporate governance andsustainability leadership 2

G OVERNANCEGRI Standard 413
Local communities

ESG risk management 2

G OVERNANCEGRI Standard 201
Economic Performance

Sustainability topics

Responsibility

Dimension

Social and ecologicalstandards in the supply
chain 1SDGs

E THICS

Compliance management 2

G OVERNANCE
E THICS

1 Top 3 material sustainability topics
2 
12 additional material sustainability topics

SIEMENS SUSTAINABILIT Y REPORT 2021

GRI Standard 205
Anti-Corruption
GRI Standard 206
Anti-Competitive Behavior
GRI Standard 307
Environmental Compliance
GRI Standard 408
Child LaborGRI Standard 409
Forced or Compulsory LaborGRI Standard 412
Human Rights Assessment
GRI Standard 419
Socioeconomic Compliance

Result of the assessment of organizational impacts (inside-out, i.e., on the environmentand society), stakeholder relevance and business criticality (outside-in)147

7.5 WEF IBC Metric

7.5

WEF IBC Metric
Pillars

Theme

Core metrics

ReferencePrinciples ofGovernance

Governing
purposeSetting purpose
The company’s stated purpose, as the expression of the means bywhich a business proposes solutions to economic, environmental,
and social issues. Corporate purpose should create value for all­stakeholders, including shareholders.

Sustainability Report2021
Siemens at a glance
p.11ffQuality of
governingbody

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 thegovernance body; number of each individual’s other significant
positions and commitments, and the nature of the commitments;
gender; membership of underrepresented social groups; stakeholder representation.

Annual Financial Report2021
Annual Financial­Statements 6.
Notes 31 Members of theManaging Board and Supervisory Board p. 127ff
HT TPS://NEW.SIEMENS.
COM/GLOBAL/EN/COMPANY/ABOUT/MANAGEMENT.
HTML ,HT TPS://NEW.
SIEMENS.COM/GLOBAL/
EN/COMPANY/ABOUT/
SUPERVISORYBOARD/COMMIT TEES.HTML

Stakeholder
engagement

Material issues impacting stakeholders
A list of the topics that are material to key stakeholders and thecompany, how the topics were identified, and how the stakeholders were engaged.

Sustainability Report
2021
Materiality assessment
p. 37ff

Ethicalbehaviour

Anti-corruption
1. T otal percentage of governance body members, employees, andbusiness partners who have received training on the organization’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 corruption confirmed
during the current year, related to this year.
2. Discussion of initiatives and stakeholder engagement to improvethe broader operating environment and culture, in order to combat corruption.

Sustainability Report
2021
Compliance p. 48ff
Our sustainability­indicators p. 118ff

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 andlack of organizational integrity.

Sustainability Report
2021
Compliance p. 48ff
Our sustainability
indicators p. 118ff

Integrating risk and opportunity into business process
Company risk factor and opportunity disclosures that clearly
identify 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
2021
Combined Management
Report 8.
Report on expected developments and associated material opportunities
and risks p. 26ff

Risk andopportunity
oversight

SIEMENS SUSTAINABILIT Y REPORT 2021

148

Omission7.5 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
2021
Climate action p. 76ff
Conserving recources
p. 83ff
Our sustainability
indicators p. 118ff

TCFD implementation
Fully implement the recommendations of the Task Force on­Climate-related Financial Disclosures (TCFD). If necessary, disclose ­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 toachieve net zero emissions before 2050.

Sustainability Report
2021
Task Force on ClimateRelated financial Disclosures (TCFD) p. 139ff

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

Water consumption and withdrawal in water-stressed areas
Report for operations where material: megalitres of water withdrawn, megalitres of water consumed, and the percentage ofeach 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 2021

149

Omission

We are on theway to further
develop our
biodiversity
KPI, so that
we can reportthese parameters in the
futureSustainability Report
2021
Conserving recources
p. 83ff
Our sustainability
indicators p. 118ff

7.5 WEF IBC Metric

Pillars

Theme

Core metrics

Reference

PeopleDignity andequality

Diversity & inclusion (%)
Percentage of employees per employee category, by age group,­gender, and other indicators of diversity (e.g. ethnicity).

Sustainability Report 2021
Diversity, Equity & Inclusion p. 100ff
Our sustainability
indicators p. 118ff

Pay equality (%)
Ratio of the basic salary and remuneration for each employee­category by significant locations of operation for priority areas ofequality: women to men, minor to major ethnic groups, and otherrelevant equality areas.

Sustainability Report 2021
Working at Siemens
p. 94ff
Our sustainability
indicators p. 118ff

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.

Risk for incidents of child, forced, or compulsory labour
An explanation of the operations and suppliers considered to havesignificant risk for incidents of child labor, forced, or compulsory
labor. 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 2021
Human Rights p. 56ff
Sustainable supply chain
practice p. 62ff. BusinessConduct Guidelines:
HTTPS://ASSETS.NEW.
SIEMENS.COM/SIEMENS/ASSETS/API/UUID:5C242542E991-4B97-AF63-090ADEN.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.

Sustainability Report 2021
Occupational health andsafety management
p. 106ff
Our sustainability
indicators p. 118ff

Skills for the
futureTraining provided (#, $)Average hours of training per person that the organization’s­employees have undertaken during the reporting period, bygender and employee category (total number of hours of training
provided to employees divided by the number of employees).
Average training and development expenditure per full-time­employee (total cost of training provided to employees divided by
the number of employees).

Sustainability Report 2021
Professional educationand lifelong learning
p. 103ff
Our sustainability
indicators p. 118ff

150

Siemens
pursues theprinciple ofperformance-­
relatedcompensation – regardless of gender.
Remuneration
data is regarded confidential and istherefore notreported.
Siemens pursues the principle of performance-relatedcompensation – regardless of gender.
Remuteratiom
data is regarded confidential
and is notreported

509BE74/2021-SAG-BCG-

SIEMENS SUSTAINABILIT Y REPORT 2021

Omission7.5 WEF IBC Metric

Pillars

Theme

Core metrics

Reference

Prosperity

Employment
and wealthgeneration

Absolute number and rate of employment
1. Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity
and region.
2. Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity
and region.

Sustainability Report
2021
Professional educationand lifelong learning
p. 103ff
Our sustainability
indicators p. 118ff

Economic contribution
1. Direct economic value generated and distributed (EVG&D), on
an accruals basis, covering the basic components for the organization’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 2021
Consolidated Financial
Statements 41ff

Financial investment contribution
1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy.
2. Share buybacks plus dividend payments, supported by narrative
to describe the company’s strategy for returns of capital toshareholders.

Annual Financial Report
2021
Consolidated Financial
Statements 6.
Note 19 Equity p. 67
Annual Financial
Statements 3.
Note 15 Shareholder'sEquity p. 120ff

Innovationof betterproducts
and services

Total R&D expenses
Total costs related to research and development

Sustainability Report
2021
Research & Development
p. 32ff

Community
and social
vitality

Total tax paid
The total global tax borne by the company, including corporate
income taxes, property taxes, non-creditable VAT and other sales
taxes, employer-paid payroll taxes, and other taxes that constitutecosts to the company, by category of taxes.

Annual Financial Report
2021
Consolidated Financial
Statements 6.
Note 2 Material accounting policies and criticalaccountig estimates
p.46ff
Note 7 Income Taxes
p. 53ff
Annual Financial­Statements 3.
Note 13 Deffered tax
assets p. 119

SIEMENS SUSTAINABILIT Y REPORT 2021

151

Omission7.6 SASB – Electrical Electronic Equipment Index

7.6

SASB – Electrical Electronic
Equipment Index
Topic

EnergyManagement

Hazardous Waste
Management

Codified
Metric CodeDisclosure

Reference

RT-EE-130a.1(1) Total energy consumed

RT-EE-130a.1(2) Percentage grid electricity

RT-EE-130a.1(3) Percentage renewable

Sustainability Report 2021:­E­nvironment – Conservating resources, p.83ff, (Energy used reduced),
Our key areas of impact, p. 26-27,
Our sustainability i­ndicators, p. 114ff

RT-EE-150a.1

Amount of hazardous waste
generated, ­p­ercentage
recycled

Sustainability Report 2021:­Environment – Conservating
resources, p.83ff, (Efficient Waste
management),
Our key areas of i­mpact, p.26-27,
Our sustainability ­indicators, p. 114ff

RT-EE-150a.2

Number and aggregate
quantity of reportable spills,
quantity recovered

Sustainability Report 2021:­Environment – Conservating­resources, p.83ff, (Incident relevant to
the environment),
Our sustainability ­indicators, p. 114ff

In Fiscal year 2021 we reported
14 minor cases. In 6 cases spills ofdye, diesel, hydraulic oil and resins
were involved. There were also
losses of coolant in five cases. One
minor fine from penalties in theyear under review were reported.

RT-EE-250a.1

Number of recalls issued,
total units recalled

not applicable

Siemens has established acomprehensive, company-wide
product safety system to ensure our
products comply with applicablelegal safety requirements and meetthe latest technical safety standards
so that they do not pose a threat tothe life or health of users or otherthird parties.
Under this system, all company
units are required to ensure that
their products comply with thestate of the art in safety matters.
Also, the units are obliged to carryout systematic product monitoring
and take the necessary corrective
actions to remedy potential ­productsafety deficiencies.

RT-EE-250a.2

Total amount of monetarylosses as a result of legal
proceedings associated withproduct safety

Annual Financial Report 2021
Consolidated Financial Statements 6.
Notes 22 Legal Proceedings, p. 69

Product Safety

SIEMENS SUSTAINABILIT Y REPORT 2021

152

Omission7.6 SASB – Electrical Electronic Equipment Index

Topic

Codified
Metric CodeDisclosure

Reference

RT-EE-410a.1

Percentage of products byrevenue that contain IEC
62474 declarable substances

Sustainability Report 2021:­Environment – Product stewardshipp. 88ff,
Our sustainability ­indicators, p. 114ff

RT-EE-410a.2

Percentage of eligible products by revenue that meet
ENERGY STAR® criteria

not applicable

RT-EE-410a.3

Revenue from renewableenergy-related and energy
efficiency-related products

Sustainability Report 2021:
Environment – Climate action, p. 76ff
(Environmental Portfolio for climate-­
conscious product use),
Our sustainability indicators, p. 114ff

RT-EE-440a.1

Description of the management of risks associated withthe use of critical materials

Sustainability Report 2021:
Environment – Product stewardship,p. 88ff. (Risk-conscious ­handling of
declarable ­substances),
Sustainable supply chain practices, ­p. 62ff (Responsibility for the worldwide supplier network)

RT-EE-510a.1

Description of policies andpractices for prevention of:(1) corruption and briberyand (2) anti-competitive
behavior

Sustainability Report 2021:
Compliance, p. 48ff

RT-EE-510a.2

Total amount of monetarylosses as a result of legal
proceedings associated withincidents relating to bribery
or corruption

Annual Financial Report 2021:
Consolidated Financial Statements 6.
Notes 22 Legal Proceedings, p. 69
Sustainability Report 2021:
Compliance, p. 39ff

RT-EE-510a.3

Total amount of monetarylosses as a result of legal
proceedings associated with
anti-competitive behavior
regulations

Annual Financial Report 2021:
Consolidated Financial Statements 6.
Notes 22 Legal Proceedings, p. 69
Sustainability Report 2021:
Compliance, p. 39ff

RT-EE-000.A

Number of units produced byproduct category

not applicable

RT-EE-000.B

Number of employees

Sustainability Report 2021 Working
at Siemens 94ff

Product Lifecycle
Management

Materials
Sourcing

Business Ethics

Activity metric

SIEMENS SUSTAINABILIT Y REPORT 2021

153

Omission7.7 The United Nations Global Compact

7.7

The United Nations
Global Compact
Siemens has been a member of the UN Global

online on the UN Global Compact website, and theCompact since 2003, and is expressly committed toindex below describe the progress we made during

upholding the Compact’s Ten Principles. Our

fiscal 2021.

Sustainability Report 2021, our progress reports

Index of the Ten Principles of the Global Compact
Principle

Systems

Measures Taken

Achievements

Principle 1

Our pledge to safeguard human rights
is rooted in the Siemens BusinessConduct Guidelines (BCGs), which arebinding on all our people worldwide.
They set out the fundamental principles
and rules that govern our actions within
our company and in relation to ourcustomers, external partners, and the
public. The Siemens Business Conduct
Guidelines provide the ethical and legal
framework within which we conduct
our business activities.

The following are among the fundamental rights enshrined in our BusinessConduct Guidelines:

In the year under review, the numberof sustainability self-assessments came
to 4,267. We conducted 319 supplierquality audits that included sustainability
questions and 394 external sustainability
audits. In external sustainability
audits, we identified a total of
6,617 areas for improvement.

Support for humanrightsPrinciple 2
No complicity inhuman rights abuses
Principle 3
Upholding freedom of
association
Principle 4
Elimination of all
forms of forced labor
Principle 5
Abolition of child labor

They contain our basic principles andrules for our conduct internally andexternally, for example on core labor
standards for human rights.
Our Siemens Group Code of Conduct(CoC) for Suppliers and Third Party
Intermediaries ensures that these basic
rights and principles are also observedin our supply chain.
We have conducted a company-wide
internal human rights risk assessment
as part of our Compliance Risk Assessment (CRA).
SUSTAINABILIT Y MANAGEMENTSUSTAINABLE SUPPLY CHAIN PRACTICESHUMAN RIGHTSSIEMENS SUSTAINABILIT Y REPORT 2021

154

→ No discrimination; respect for the
principles of equal opportunity andequal treatment→ Free choice of employment(no forced labor)→ No child labor→ Fair and reasonable wages→ Freedom of collective bargaining
and association→ Compliance with safety rules
Our CoC includes the following aspectsof human rights:→ Fair working conditions (pay, work
hours, vacation),→ Right to freedom of association,→ Responsibility for health and safety
standards,→ No discrimination,→ No forced labor or child labor, and→ Availability of anonymous complaint
mechanisms.
SUSTAINABLE SUPPLY CHAIN PRACTICESHUMAN RIGHTSHuman rights are a matter that calls
for constant alertness. In fiscal 2018,
Siemens joined the European Businessand Human Rights Peer Learning Groupof the Global Compact Network. This organization is likewise intended as a peer
learning group on business and humanrights for European companies fromdifferent sectors and of different sizes.
Governance is a focus area under our
new DEGREE framework. Based onmaterial risk areas, we successfullyrolled out our new digital due diligence
tool for risk, the ESG Radar.
OUR KEY AREAS OF IMPACTSUSTAINABLE SUPPLY CHAIN PRACTICESHUMAN RIGHTS

7.7 The United Nations Global Compact

Index of the Ten Principles of the Global Compact
Principle

Systems

Measures Taken

Achievements

Principle 6

We actively support diversity, equal
opportunity, and inclusion by creatinga working environment that is open
and appreciative for everyone. Ourcommitment to protecting humanrights is anchored in the BCGs. We will
not tolerate discrimination. The BCGs
state unequivocally, “We respect thepersonal dignity, privacy, and rights ofeach individual.” They also make it clearthat Siemens is committed to workwith everyone, irrespective of ethnic
origin, culture, religion, age, disability,
skin color, gender, sexual identity andorientation, or world view. We are asignatory of the “Charta der Vielfalt”
diversity charter.

Our worldwide diversity networks
promote and discuss diversity topics
across the company. Leading Women inIndustry, Global Leadership of Women@
Technology & Innovation, and GROW2GLOW are some examples of suchnetworks. We use key figures (including
the percentage of women, generations,
nationalities) to regularly monitor how
effectively we implement diversity
initiatives, and we publish the results in
our Diversity & Inclusion Fact Sheet.

In fiscal 2021, 167 different nationalities were represented in the Siemens
workforce. The Ability@Siemens initiative is intended to promote a cultureof integration for the more than 5,000
persons with disabilities who currently
work at Siemens in Germany.

Elimination of
discrimination

DIVERSIT Y, EQUIT Y & INCLUSION

Focus areas for diversity include:→ Consciously addressing
unconscious bias,→ Promoting gender balance,→ Highlighting the value of globality,→ Encouraging diversity andinclusiveness.
DIVERSIT Y, EQUIT Y & INCLUSION

Siemens Professional Education (SPE)is a program that offers possibilities for
disadvantaged young people. In 2021
Siemens also joined the Valuable 500 –an initiative launched at the World Economic Forum to ensure that concerns of
persons with disabilities are included incorporate management agendas.
“Fostering diversity, inclusion, andcommunity development to create asense of belonging” was prioritized infiscal 2021 as part of the DEGREE focal
area for “Equity.”
OUR KEY AREAS OF IMPACT
DIVERSIT Y, EQUIT Y & INCLUSION

Empowering women

In fiscal 2016 we signed the CEO Statement on the UNGC Women’s Empowerment Principles. Through sponsorships
and strategic partnerships, we arealso involved in such programs andinitiatives as the “Charta der Vielfalt”
diversity charter.
SUSTAINABILIT Y MANAGEMENT
DIVERSIT Y, EQUIT Y & INCLUSION

We encourage applying the Women’s
Empowerment Principles to guideactions that advance and empower
women in the workplace, marketplace,and community, and we communicate
our progress by using sex-disaggregateddata and other indicators.
Under the DEGREE framework, Siemens(excluding SHS) is pursuing the goalof having 30 % women in top management by 2025.
DIVERSIT Y, EQUIT Y & INCLUSIONSIEMENS SUSTAINABILIT Y REPORT 2021

155

In the year under review, womenaccounted for 26.7 % of the total workforce at Siemens. The percentage ofwomen in management positions has
risen steadily in recent years, and now
comes to more than 19.6 %.
In fiscal 2021, 30.2 % of all new hires
were women.
OUR KEY AREAS OF IMPACT
DIVERSIT Y, EQUIT Y & INCLUSION

7.7 The United Nations Global Compact

Index of the Ten Principles of the Global Compact
Principle

Systems

Measures Taken

Achievements

Principle 7

Siemens has a comprehensive EHS
system in place to manage its environmental performance. All relevant
production and office sites are required
to implement an environmental management system that complies with theinternationally recognized ISO 14001
standard as well as our own internal
specifications on environmentally compatible product and system design.

We bundle our binding climate protection goals and measures under the“D” heading (Decarbonization) in our
DEGREE framework for sustainability
at Siemens.

We have reinforced our climate protection strategy further by confirming ourscience-based Targets, which aim for
1.5ºC, and by joining the RE100, EV100,
and EP100 initiatives. Anchoring our
CO2 reduction in business operations aspart of the Long-term incentives (LTI)
for Senior Management and making thebusiness units responsible for reducing
their own shares of emissions are now
significant components of our management approach.

Precautionary­approach to­environmental­challenges

ENVIRONMENT→ Net zero operation by 2030, in
compliance with SBTi targets→ Net zero supply chain by 2050,
20 % emission reduction by 2030
Our environmental programs areembedded in the DEGREE sustainability framework, and focus on reducing
greenhouse gas emissions and making
resource use more efficient all along thevalue chain. Our program for efficient
resource use, Eco Efficiency @ Siemens,
helps mitigate all our environmental
impacts by encouraging a circular economy and a general dematerialization ofbusiness processes.
The “R” for resource efficiency indicatesthat environmentally sound handlingof limited resources is an integral partof Siemens’ DEGREE sustainability
program.
Robust, ecologically sound design ofthe next stage for all of Siemens’
relevant product families by 2030
→ Decoupling from natural resources by
procuring more secondary metal andplastic materials→ Circular economy by reducing landfill
waste 50 % by 2025 and toward zero
landfill waste by 2030
On top of that, the Efficient Own­Operations component of the ­Eco
Efficiency @ Siemens environmental
program is also focusing on dematerialization and the circular economy in an
operations context as well, to improve
protection of resources. The emphasis
here is on improving energy efficiency
and reducing the environmental impactof our waste.
SUSTAINABILIT Y MANAGEMENTENVIRONMENTSIEMENS SUSTAINABILIT Y REPORT 2021

156

In terms of our own business activity,
we launched our global “CO2-Neutral”
program in September 2015. By 2020
this program had already reduced ourown operations’ carbon footprint 54 %from the 2014 figure (as was reported
for 2020, including Siemens Energy),
and thus we achieved our intermediategoal last year.
In 2021, we reduced our Scope 1 andScope 2 emissions by another 83 kt
CO2e, or 12 %, from the year before.
During the year under review, 78 % of
our electric power consumption was“green.”OUR KEY AREAS OF IMPACTSUSTAINABILIT Y MANAGEMENTENVIRONMENT

7.7 The United Nations Global Compact

Index of the Ten Principles of the Global Compact
Principle

Systems

Measures Taken

Achievements

Principle 8

Raising our people’s awareness ofenvironmental and climate protection
is intrinsic to both our environmental
strategy and our social commitment,with the core components of access totechnology, access to education, andsustaining communities. Our internal
communication measures and our corporate citizenship focus help heighten
a sense of responsibility for ecologicalissues. Protecting the environment andpreserving natural resources are twogoals that are of paramount importancefor preserving communities.

Siemens maintains a global environmental communications network
to ensure that knowledge about
environmental management, methods,
solutions, and experiences is communicated across locations, businesses, andnational borders.

In the year under review, we reported€ 40.6 million in community investment. In July 2021 we took part in the
One Young World Summit in Munich,Germany. As part of Earth Day, Siemens
UK provided teaching materials to 214
elementary schools to teach resource
conservation in ways appropriate forchildren.

Initiatives for greater
environmental
responsibility

For years, we have been an actively
involved member of One Young World,the World Bank’s Carbon Pricing Leadership Coalition (CPLC), and the World
Economic Forum (WEF).

OUR KEY AREAS OF IMPACTSUSTAINABILIT Y MANAGEMENTCORPORATE CITIZENSHIPSUSTAINABILIT Y MANAGEMENTSUSTAINABILIT Y MANAGEMENTCORPORATE CITIZENSHIP

Principle 9
Development anddiffusion of environmentally friendly
technologies

As part of our Environmental Portfolio, we develop and market products,
solutions, and services that enable ourcustomers to reduce their CO2 emissions, lower lifecycle costs, and protect
the environment.
We are preparing for the introductionof the EU taxonomy, which will provide
a classification system for sustainableeconomic activities. This will supplement Siemens’ previous Environmental
Portfolio reporting.
CLIMATE ACTION

Our Environmental Portfolio is our biggest contribution to mitigating climatechange. It comprises products, systems,
solutions, and services (Environmental
Portfolio components) that meet oneof our criteria for selection – that they
offer energy efficiency above a defined
threshold, or employ renewable formsof energy.
Our DEGREE framework has set theambitious goal of achieving next-stage,
robust, ecologically friendly design for
100 % of the relevant Siemens productfamilies by 2030.
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157

With all the Environmental Portfolio
components that we have installed forcustomers since fiscal 2002 (excluding
Siemens Energy) and that are still in
operation today, by the end of fiscal
2021 we had reduced our customers’
CO2 emissions by 88 million metric tons
(continuing operations).
During fiscal 2021, 31 % of our revenue
in continuing operations came from ourEnvironmental Portfolio.
OUR KEY AREAS OF IMPACTSUSTAINABILIT Y MANAGEMENT
CLIMATE ACTION

7.7 The United Nations Global Compact

Index of the Ten Principles of the Global Compact
Principle

Systems

Measures Taken

Achievements

Principle 10

Our Business Conduct Guidelines
contain the fundamental principles andrules for our conduct within Siemens
and in relation to Siemens’ customers,
external partners, and the generalpublic. They also serve as an expressionof our values and form the basis for detailed internal regulations. The BusinessConduct Guidelines are binding on all
our people around the world.

Siemens takes a zero-tolerance
approach to corruption and otherbreaches of applicable law and ourvalues as laid down in the BusinessConduct Guidelines. Our compliancepriorities are:Once again in fiscal 2021, we madeimportant progress in advancing the
Siemens compliance system, including:Combating corruption

Our compliance system is designed toensure that our business practices
worldwide comply with these guidelines
and follow applicable laws.
It is based on three pillars – prevent, detect, and respond – and includes activity
fields in anti-corruption, anti-money
laundering, antitrust, Collective Action,
data privacy, export controls, andhuman rights.
COMPLIANCE→ BCG training was rolled out for some
77,000 employees around the world(including SHS), and 72,000 of them(about 93 %) had completed it→ Foster Integrity,
successfully by the end of fiscal 2021.
→ Manage Risk and Give Assurance,→ We established global teams of→ Effective Processes,
compliance experts for specific→ An Excellent Compliance Team, andtopics. In this way, we aim to address→ Committed to Business.
significant cross-organizational
Our priorities will continue to guidechallenges and at the same time,
our work and will be defined in further
identify opportunities fordetail with focus areas for fiscal 2022.
improvement in terms of efficiency
and efficacy by making the most of
We actively support the United Nations
available knowledge and experience.
Convention against Corruption and the
As a part of this network, continuous
Anti-Bribery of the Organization for Ecomonitoring of compliance risks was
nomic Cooperation and Development
supplemented with a global group(OECD). Siemens’ activities in the Worldof experts to provide early detection
Economic Forum (WEF) include ourof risks from new digital businessparticipation in the Partnering Againstmodels, and to define proposals forrisk mitigation.
Corruption Initiative (PACI).
To date, we have provided some
USD $ 120 million in funding for 85
projects as part of the Siemens Integrity
Initiative to combat corruption andfraud in more than 50 countries.
As part of the DEGREE framework, weplan to provide training and refresher
courses in the BCGs for 100 % of ourpeople in three-year cycles.
COMPLIANCE

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OUR KEY AREAS OF IMPACTCOMPLIANCE

7.8 United Nations CEO Water Mandate

7.8

United Nations
CEO Water Mandate
Progress report

Our supply chain partners

Siemens became a signatory to the United Nations CEO

The environmental protection requirements for our

Water Mandate in 2008. We are continuing to support

supply chain partners are set out in the Siemens

the Mandate in two ways: by managing waterGroup Code of Conduct for Siemens Suppliers andefficiently at our own facilities and by providing

Third Party Intermediaries. Further information on

solutions that help our customers handle water andthese requirements is available in the sectionwastewater more efficiently.

SUSTAINABLE SUPPLY CHAIN PRACTICES of this report.

Our own activities

Our customers

Further information about resource conservation andWe support our customers with water management

water consumption at Siemens locations is available

solutions.

in the section

ENVIRONMENT of this report. We arecontinuing to implement the approach to water

Advanced water extraction

resource management that was developed in 2021.

Siemens has been commissioned by the A3C

The goals for locations with high water-related risks −consortium to equip eight seawater desalination

risks due, for example, to aridity, high levels ofplants in Saudi Arabia with process automation

wastewater contamination or poorly developed

systems,

technical infrastructures − must be adjusted to local

instrumentalization systems, and communications

conditions in order to reduce risks and negativetechnology. This order follows an earlier agreement

environmental impacts. Siemens’ water strategy aims

in which Siemens was named the main contractor toto minimize the negative local impacts of our watersupply the electrical, automation, and instrumentation

consumption by taking into account water scarcity

packages for the world’s first large-scale s­olar-

and other risks such as water pollution and flooding

powered seawater desalination plant. Due to the use

in environmentally sensitive areas.

of solar power, CO2 emissions at the plant, which isdrivestechnology,

process

located near the Saudi Arabian city of Al Khafji, areWe use resources carefully and avoid wasting themconsiderably lower than those at plants powered bywherever possible − for example, by participating inelectricity from non-renewable sources. Siemens’

the Leadership in Energy and Environmental Design

technology also ensures plant availability of around(LEED) certification program, whose focuses include

98 %.

efficient water utilization as a key planning element.
We require LEED certification at all our new
construction projects.

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7.8 United Nations CEO Water Mandate

Partnerships to reduce water loss

The Siemens Stiftung, Siemens’ nonprofit foundation

Siemens and BuntPlanet have signed a distributionin Germany, applies an entrepreneurial approach toagreement that enables them to offer advanced

supplying communities with clean drinking water.

solutions and provide a wide-ranging portfolio of

One example of a successful project is:

hardware, software, and services for water distribution
networks. Particularly in the area of leakage detection,

Safe Water Enterprises – Kenya

the partnership helps Siemens customers reducewater loss, guarantee water supplies and significantly

Migori country in western Kenya is a sub-Saharanincrease energy efficiency. As part of this collaboration,

region whose inhabitants have no access to clean

both partners are making a major contribution todrinking water. A Siemens Stiftung water kiosk

ensuring sustainable water supplies worldwide.

provides the Wath Onger community in Migori withup to 20,000 liters of clean water per day. The kiosk

Social commitment

is a source of income for community members,

Through memberships in international organizations,especially women. Since the installation of the kiosk,

we participate in numerous initiatives and projects

no new cases of cholera have been reported in thesuch as the water project on the Action 2020 platform

region. Other waterborne diseases such as typhoidof the World Business Council for Sustainable

and diarrhea have decreased significantly. The kiosk

Development. We initiate, implement, and support

in Wath Onger is one of 20 Safe Water Enterprises

projects to foster efficient water use in various regions

supported by the Siemens Stiftung and was initiatedof the world.

by the Lake Victoria AIDS Support Organization(LAVISO).
Further information on projects from the Siemens
Stiftung is available at:
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160

7.9 Independent auditor’s limited assurance report

7.9

Independent auditor’s
limited assurance report

The assurance engagement performed by Ernst &This responsibility includes the selection andYoung GmbH Wirtschaftsprüfungsgesellschaft relates

application of appropriate methods to prepare theexclusively to the German PDF version of thereport as well as making assumptions and estimates

Sustainability Report 2021 of Siemens AG. The

related to individual sustainability disclosures which

following text is a translation of the original German

are reasonable in the circumstances. Furthermore,

Independent Assurance Report.

the legal representatives are responsible for such

To Siemens AG, Berlin and Munichinternal controls that they have considered necessary
to enable the preparation of a report that is free

We have performed a limited assurance engagementfrom – intended or unintended – materialon the Sustainability Report 2021 of Siemens AG for

misstatement.

the reporting period from October 1, 2020 to
September 30, 2021 (hereafter the report).

Auditor’s declaration relating to
independence and quality control

Our engagement exclusively relates to the German

We are independent from the Company in accordance

PDF version of the report. Our engagement did notwith the provisions under German commercial law

include the information in the Annex to the reportand professional requirements, and we have fulfilled

as well as any prospective disclosures and links toour other professional responsibilities in accordanceother web pages. The report is published as a PDF

with these requirements.

version at

WWW.SIEMENS.COM/INVESTOR/EN.

Management’s responsibility

Our audit firm applies the national statutory
regulations and professional pronouncements for

The legal representatives of Siemens AG are

quality control, in particular the bylaws regulating the

responsible for the preparation of the report inrights and duties of Wirtschaftsprüfer and vereidigteaccordance with the reporting criteria and for the

Buchprüfer in the exercise of their profession

selection of the information to be assessed. As[Berufssatzung für Wirtschaftsprüfer und vereidigte

reporting criteria, the Company applies the

Buchprüfer] as well as the IDW Standard on Quality

Sustainability Reporting Standards of the Global

Control 1: Requirements for Quality Control in audit

Reporting Initiative (GRI) and, for the key

firms

performance indicators of the Environmental

Anforderungen an die Qualitätssicherung in derPortfolio, the reporting principles as outlined in the

Wirtschaftsprüferpraxis (IDW QS 1)].

Annex “Environmental Portfolio Reporting Principles”
and the underlying criteria set forth in “A Corporate
Accounting and Reporting Standard – Revised
Edition” and “GHG Protocol for Project Accounting”
issued by the Greenhouse Gas Protocol Initiative.

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[IDW

Qualitätssicherungsstandard

1:

7.9 Independent auditor’s limited assurance report

Auditor’s responsibility→ Inspection of the relevant documentation of the

Our responsibility is to express a limited assurance

systems and processes for compiling, aggregating,conclusion on the report based on the assurance

and validating sustainability data in the reporting

engagement we have performed.

period and testing such documentation on asample basis,

We conducted our assurance engagement in→ Analytical measures at Group level and at theaccordance with the International Standard onlevel of the Industrial Businesses regarding theAssurance Engagements (ISAE) 3000 (Revised):quality of the reported data,“Assurance Engagements other than Audits or→ Inquiries and inspection of documents on a

Reviews of Historical Financial Information,” issued

sample basis relating to the collection andby the International Auditing and Assurance Standards

reporting of the sustainability data at Group level,

Board (IAASB). This Standard requires that we plan andat the level of the Industrial Businesses and at

perform the assurance engagement to obtain limited

selected sites,

assurance about whether the report of the Company→ Inquiries and inspection of documents on a

has been prepared, in all material respects, insample basis relating to the collection andaccordance with the reporting criteria. In a limited

reporting of the key performance indicators ofassurance engagement the assurance procedures are

the Environmental Portfolio including theless in extent than for a reasonable assurance

procedures for determining the qualification ofengagement and therefore a substantially lower levelproducts, solutions, and services for theof assurance is obtained. The assurance procedures

Environmental Portfolio,

selected depend on the auditor’s professional→ Inquiries of employees from the central
Sustainability Department and other relevant

judgment.

departments on material qualitative statements
Within the scope of our assurance engagement, which
has been conducted between May and November
2021, we performed amongst others the followingof

employees

underlying documents,→ Evaluation of the presentation of disclosures in
the report.

assurance and other procedures:→ Inquiries

in the report as well as the inspection of selectedconcerningthe

Assurance conclusion

sustainability strategy, sustainability principles,

Based on our assurance procedures performed andand sustainability management including theassurance evidence obtained, nothing has come tostakeholder dialog of Siemens AG,

our attention that causes us to believe that the→ Inquiries of employees from the central

Sustainability Report 2021 of Siemens AG for the

Sustainability Department and other relevant

period from October 1, 2020 to September 30, 2021

departments responsible for the preparation ofhas not been prepared, in all material respects, inthe report in order to assess the sustainability

accordance with the reporting criteria.

reporting system, the data capture andcompilation methods, as well as internal controls
to the extent relevant for the limited assuranceof the report,→ Identificationoflikelymisstatement in the report,

SIEMENS SUSTAINABILIT Y REPORT 2021

162

risks

of

material

7.9 Independent auditor’s limited assurance report

Intended use of the assurance report

We make express reference to the fact that we do not

We issue this report on the basis of the engagement

update the assurance report to reflect events oragreed with Siemens AG. The assurance engagement

circumstances arising after it was issued unless

has been performed for the purposes of the Company

required to do so by law. It is the sole responsibility

and the report is solely intended to inform theof anyone taking note of the result of our assurance

Company as to the results of the assurance

engagement summarized in this assurance report toengagement and must not be used for purposes otherdecide whether and in what way this result is usefulthan those intended. The report is not intended toor suitable for their purposes and to supplement,

provide third parties with support in making

verify, or update it by means of their own review(financial) decisions.

procedures.

Engagement terms and liability

Munich, November 30, 2021

The “General Engagement Terms for Wirtschaftsprüfer
and Wirtschaftsprüfungsgesellschaften [German

Ernst & Young GmbH

Public Auditors and Public Audit Firms]” dated 1

Wirtschaftsprüfungsgesellschaft

January 2017 are applicable to this engagement andalso govern our relations with third parties in the

Breitsameter

Johne

context of this engagement (Wirtschaftsprüferin

Wirtschaftsprüferin(German Public Auditor)(German Public Auditor)

WWW.DE.EY.COM/

GENERAL-ENGAGEMENT-TERMS ). In addition, please referto the liability provisions contained there in no. 9 andto the exclusion of liability towards third parties. We
assume no responsibility, liability, or other obligations
towards third parties unless we have concluded awritten agreement to the contrary with the respective
third party or liability cannot effectively be precluded.

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7.10 Notes and forward-looking statements

7.10

Notes and forward-looking
statements
There is no standard system that applies acrossforward-looking statements in other reports, incompanies for qualifying products and solutions forprospectuses, in presentations, in material delivered

environmental and climate protection, or for compilingto shareholders, and in press releases. In addition,and calculating the respective revenues and theour representatives may from time to time make oral

quantity of reduced carbon dioxide emissions

forward-looking statements. Such statements are

attributable to such products and solutions.

based on the current expectations and certain

Accordingly, revenues from our Environmental

assumptions of Siemens’ management, of which

Portfolio and the reduction of our customers’ annual

many are beyond Siemens’ control. These are subject

carbon dioxide emissions may not be comparable withto a number of risks, uncertainties, and factors,

similar information reported by other companies.

including, but not limited to those described in

Revenues from our Environmental Portfolio and thedisclosures, in particular in the chapter Report on

reduction of our customers’ annual carbon dioxiderisks and opportunities including report on expected

emissions are derived from various internal reporting

development of the Annual Report. Should one orsystems that are generally different from thosemore of these risks or uncertainties materialize,

applicable to the financial information presented inevents of force majeure, such as pandemics, occur,

our Consolidated Financial Statements and are, inor should underlying expectations including future

particular, subject to less sophisticated internal

events occur at a later date or not at all or assumptions

documentation as well as preparation and review

prove incorrect, actual results, performance, or

requirements, including the IT systems in use and theachievements of Siemens may (negatively or

general internal control environment. We may change

positively) vary materially from those described

our policies for recognizing revenues from our

explicitly or implicitly in the relevant forward-looking

Environmental Portfolio and the reduction of ourstatement. Siemens neither intends, nor assumes

customers’ annual carbon dioxide emissions in the

any obligation to update or revise these forward-

future without previous notice.

looking statements in light of developments which
differ from those anticipated.

This document contains statements related to our
future business and financial performance andfuture events or developments involving Siemens
that may constitute forward-looking statements.
These statements may be identified by words suchas “expect,” “look forward to,” “anticipate,” “intend,”“plan,” “believe,” “seek,” “estimate,” “will,” “project,”or words of similar meaning. We may also make

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7.10 Notes and forward-looking statements

This document includes – in the applicable financial

Due to rounding, numbers presented throughout thisreporting–and other documents may not add up precisely to the

supplemental financial measures that are or may betotals provided, and percentages may not precisely

alternative performance measures (non-GAAP

reflect the absolute figures.

frameworknotclearlydefinedmeasures). These supplemental financial measures
should not be viewed in isolation or as alternatives

This document is an English-language translation of

to measures of Siemens’ net assets and financial

the German document. In case of discrepancies, thepositions or results of operations as presented inGerman-language document is the sole authoritative

accordance with the applicable financial reporting

and universally valid version.

framework in its Consolidated Financial Statements.
Other companies that report or describe similarly
titled alternative performance measures may
calculate them differently.

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7.11 Further information and information resources

7.11

Further information andinformation resources
Additional information
The Siemens annual financial report 2021
is available at:
WWW.SIEMENS.COM/ANNUALREPORTS

Further sustainability information
Further information on our commitment tosustainability and sustainability figures areavailable at:
WWW.NEW.SIEMENS.COM/SUSTAINABILIT Y
WWW.NEW.SIEMENS.COM/SUSTAINABILIT YFIGURES

Further information on research, development,
and innovation at Siemens is available at:
WWW.NEW.SIEMENS.COM/INNOVATION

Further information on Siemens Stiftungis available at:
SIEMENS-STIFTUNG.ORG/EN© 2021 by Siemens AG, Berlin and Munich

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Address

Siemens AG
Werner-von-Siemens-Str. 180333 Munich
Germany

Internetwww.siemens.com

Phone+ 49 (0) 89 636 - 33443 (Media Relations)+ 49 (0) 89 636 - 32474 (Investor Relations)Fax+ 49 (0) 89 636 - 30085 (Media Relations)+ 49 (0) 89 636 - 1332474 (Investor Relations)Emailpress@siemens.com
investorrelations@siemens.com© 2021 by Siemens AG, Berlin and Munich