Let us start by addressing Siemens’ goal of achieving carbon neutrality by 2030, leveraging its DEGREE framework. How are you measuring progress, particularly in decarbonization, ethics, and resource efficiency?
The DEGREE framework is at the core of Siemens' sustainability efforts. It represents our 360-degree view of what matters to us as a company, including decarbonization, ethics, governance, resource efficiency, equity, and employability. These elements define our corporate culture and values. When engaging with customers, we focus on our portfolio's contributions, particularly in decarbonization, energy efficiency, and circularity.
We measure our impact using a bottom-up and top-down approach across several categories. For instance, more than 90% of our business enables our customers to achieve a positive sustainability impact in the areas of decarbonization and energy efficiency, resource efficiency and circularity, and people centricity and societal impact.
In DEGREE we have also set us the ambitious target to reduce our CO2 Emissions physically by 90% by 2030, meaning not through offsets. And we are making strong progress toward this goal, having already halved our operations-related CO2 emissions compared to the baseline year of 2019.
I am also pleased to tell you that the Science Based Targets initiative (SBTi) has validated our 2030 and 2050 targets against their net-zero standard. This validation is a testament to our unwavering commitment to sustainability and our leadership in driving the industry toward a net-zero future.
Siemens has set ambitious goals like transitioning to a fully electric fleet and achieving 100% renewable energy for its buildings. What challenges have you faced in implementing these changes?
Transitioning to a 100% electric fleet by 2030 sounds straightforward, but it involves many logistical challenges. For example, it's not just about ordering electric vehicles. We also need to install charging infrastructure at our sites, allocate space, and plan for productivity concerns. Employees often ask whether time spent charging their vehicles is productive or personal time. Additionally, some of our service vehicles need to be modified to accommodate tools like ladders, which means we’re not just changing the cars—we’re changing how we work.
We are also working toward making all our buildings net-zero and powered by renewable energy. This requires installing solar panels, heat pumps, and efficient lighting systems, among other improvements. Our ability to implement these changes is greatly supported by the fact that we offer many of the necessary technologies ourselves, such as e-chargers, microgrids, and building automation systems.
These efforts not only reduce our own emissions but also allow us to demonstrate to customers how they can achieve similar results.
Siemens plays a significant role in various sectors, including industry, electrification, buildings, healthcare, and transportation. Can you provide examples of how technological innovations are driving decarbonization in these sectors?
Siemens’ technological expertise, combined with over 175 years of domain knowledge, enables us to lead the sustainability transformation across the above mentioned sectors. . One powerful example is in electricity grids. Many grids are decades old, designed when electricity flowed only one way, from power plants to homes. Today, with solar panels and other renewable sources, current flows in both directions. This requires grids to be more adaptable and smarter.
Our grid software allows utilities to increase the capacity of power lines by up to 30%, avoiding the need to build new infrastructure. This is crucial because more than 70% of the world’s electricity consumption flows through infrastructure planned or analyzed by Siemens’ grid simulation portfolio. We’re optimizing the delivery of electricity to around 1.3 billion people. In transportation, we’ve implemented autonomous driving technology in systems like the Paris Metro and Hamburg S-Bahn, allowing for a 30% increase in train density on the same tracks and significant energy savings. These examples show how Siemens is enabling a faster, more efficient, and more sustainable world.
You have mentioned the importance of regulations and incentives in advancing sustainability goals. How does Siemens navigate global regulatory frameworks, and how does this influence your sustainability efforts?
Regulation plays a critical role in driving the sustainability transition. Governments need to push for regulatory changes while providing the right incentives to make it financially viable. In the U.S., we see more incentives, while in China, there's a rapid transition fueled by government support. Europe, with its complex regulatory environment, requires careful balancing of subsidies to avoid creating competition within the EU.
As a global company, Siemens must navigate these diverse regulatory landscapes while seeking opportunities to drive sustainability forward. For example, if we pilot a recycling initiative in India due to local pressures, we don’t create multiple versions of the same product. Instead, we scale successful innovations globally. This approach allows us to leverage our size and experience to make impactful changes across different regions.
Collaboration is key in tackling climate change and advancing sustainability. How is Siemens working with global partners to accelerate the transition to a circular economy and mitigate climate change?
Siemens collaborates with more than 300 partners through Siemens Xcelerator, our open business platform.. Another well-known example is SiGreen, a Siemens decarbonization platform that tracks the carbon footprint of individual products along the supply chain. SiGreen has joined forces with industry stakeholders like Catena X, an automotive partnership program in Europe and the Estainium association, a cross-industry ecosystem that includes universities, SMEs and large companies. More than 200 companies in over 25 countries are SiGreen customers.
We’re also working on a digital battery passport that tracks the lifecycle of batteries from raw materials to end-of-life recycling. This partnership between the automotive industry, battery manufacturers, and Siemens allows for full traceability of the resources that go into batteries, helping optimize their useful life and to ensure that they can be recycled efficiently. Such collaborations demonstrate how Siemens is helping industries transition to circular models while driving innovation in sustainability.
With Siemens being a global leader in multiple sectors, how does the company balance the need for profitability with its sustainability goals?
Sustainability and profitability are not mutually exclusive. At Siemens, we believe that scaling sustainability impact at speed requires making it profitable. This is why we carefully consider the value proposition of every product throughout its lifecycle, for example, whether through repairs, refurbishments, or recycling. Our approach allows us to decouple resource consumption from business growth, creating a sustainable and profitable business model.
The transition to a circular economy and decarbonization requires creative thinking and collaboration, but if done right, it can create new revenue streams and opportunities. For us, sustainability is a strategic business decision, and we’re committed to proving that it can drive both environmental and financial success
