Sustainability

report
2021
 Our Purpose

Technology to
Transform the Everyday

Key figures 1

303,000 € 62.3 billion 15.0 % € 6.7 billion

Employees Revenue Adjusted EBITA margin 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

Health

Siemens Siemens
Healthineers 2

SCOPE OF SUSTAINABILITY
REPORT

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  3
Foreword  4
The COVID-19 Pandemic  8

1 5
Siemens at a glance  11 Social93

1.1 Our DEGREE framework 5.1 Working at Siemens 94

sets clear and measurable ambitions 12 5.2 Diversity, Equity & Inclusion 100
1.2 Company profile 14 5.3 Professional education and
1.3 Strategy 17 lifelong learning 103
1.4 Our contribution to sustainable 5.4 Occupational health and
development of societies 20 safety management 106
1.5 Our key areas of impact 26 5.5 Corporate citizenship 110
1.6 Customers 28
1.7 Research and development 32
6
2
Our sustainability indicators 113

Our sustainability management  36

7
2.1 Materiality assessment 37 Annex  130
2.2 Sustainability governance and organization 40
7.1 Reporting methodology 131
2.3 Partnerships and collaborations
7.2 Environmental Portfolio reporting
for sustainability 43
principles134
2.4 Sustainability ratings reflect our
7.3 Task Force on Climate-Related
­performance 45
Financial Disclosures (TCFD) 139

3
7.4 GRI Standards – key topics
and boundaries 146
Governance47 7.5 WEF IBC Metric 148
7.6 SASB – Electrical Electronic
3.1 Compliance 48
Equipment Index 152
3.2 Human rights 56
7.7 The United Nations Global Compact 154
3.3 Sustainable supply chain practices 62
7.8 United Nations CEO Water Mandate 159
3.4 Cybersecurity and data privacy 67
7.9 Independent auditor’s limited

4
assurance report  161
7.10 Notes and forward-looking statements 164
Environment  73 7.11 Further information and
Holistic environmental protection 74 information resources 166

4.1 Climate action 76

4.2 Conserving resources 83
4.3 Product stewardship 88

SIEMENS SUSTAINABILIT Y REPORT 2021 3

Foreword

Foreword

Technology with Purpose

How we can improve quality of life while using fewer resources.

Dear Readers, In collaboration with our

customers and partners, we’re
the world is changing, at an increasing pace every
working to transform industry,
day. At the same time, in some ways the world isn’t
changing fast enough to overcome the ecological and infrastructure, mobility, and
social challenges that confront us all. healthcare: the backbone of our
society.
Thanks to technological progress we are able to pro-
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 with
in 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
with new technologies we can generate progress and
The dilemma of our time growth for every society, while consuming fewer re-
But there’s a price to pay for that progress, and that sources. We call this “Technology with Purpose”.
price is increasing every day. We’re emitting ever
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’re
societies. 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 can entirely free from fossil fuels. Artificial intelligence
we manage to provide a good life for more and more lets 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 safeguard that were mostly in use before, we are thus signifi-
the foundations of life for future generations? cantly reducing CO2 emissions – while at the same
time carrying 1.5 million more passengers.
The answer is: We need to decouple economic growth
from 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
provide new, affordable, sustainable mobility, coun-
Doing more with less is something we can already do teract urban sprawl, and create new opportunities for
today. In the past decades, for instance, technological economic growth and employment.
progress has enabled more than 30 countries to de-
couple economic growth and consumption from
carbon emissions.

SIEMENS SUSTAINABILIT Y REPORT 2021 4

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, and With our new ambitious DEGREE 1 framework, we are
resources. With our British customer TrakRap, for in- taking yet another step forward. It represents a whole
stance, 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, and
less 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 our
green hydrogen, and we’re connecting them with environment and on mitigating damage to the cli-
industries and energy storage facilities. Our model mate. 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 to
shows how an entire community can be supplied with work at our company and to eliminate landfill waste
100 percent renewable energy, and how hydrogen by 2030.
can serve for long-term energy storage. This helps
ease grid bottlenecks and keep the power grid flexible. Sustainability is the heart of our
business and the engine that drives it.
These and many other projects show: With the right
technology, we can do more with less. If we truly
Which is why we’ve developed an
want to become more sustainable and achieve our ambitious new sustainability
climate goals, however, we have to move even faster framework: DEGREE.
and make sustainable technologies the new standard.
We’ve adopted sustainability as a strategic imperative
Here we at Siemens are leading by example. for all our investment decisions – whether they’re
about corporate acquisitions, customer projects, or
What we expect from ourselves assessments 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 – an
for making our factories and large buildings initiative of like-minded companies – we’ve agreed
­climate-neutral. to convert entirely to renewable energy by 2030, to
use or run all our buildings on a CO2-neutral basis, and
What drives us is our desire to apply technology that to switch entirely to electric vehicles.
will make our own activities – and those of our part-
ners and customers – more sustainable. The Dow 1 DEGREE is an acronym for Decarbonization, Ethics, Governance,
Resource E
­ fficiency, Equity, and Employability.
Jones Sustainability Index (DJSI) published in Novem-
ber 2021 ranked Siemens as the most sustainable

SIEMENS SUSTAINABILIT Y REPORT 2021 5

 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 is
2020). To achieve this goal we support our suppliers, recognized around the world.
for example, with Carbon Web Assessments to ana-
lyze their carbon footprint and reduce it efficiently. Shared principles, rules, and solutions for
transformation
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 of that 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 our
ual 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 progress
resilient 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 a forming 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 train-
ing and development, helping our employees develop That’s why we’re investing extensively in research and
a positive, forward-looking mindset that helps them development. 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’re
Last year, we invested more than 300 million euros developing principles, rules, and solutions to speed
in training and development. We use our own digital up 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 make
We support our employees to take on today’s cutting-edge technologies the standard of
tomorrow.
challenges, grow from them and rise
above them. We refer to this as a
Growth Mindset.
Dr. Roland Busch Judith Wiese
For us, responsibility includes conscientiousness,
integrity, and adherence to our values. We support
that with a strong across-the-board compliance system
and 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

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 and
We 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 of
well. ANNUAL FINANCIAL REPORT 2021 COMBINED case numbers in Europe, insofar as the number of
MANAGEMENT REPORT 8.3.1 STRATEGIC RISKS infections of our people is relatively low compared
to the overall case numbers in Europe (considering
Balance between opportunities and risks only those European countries that host ­Siemens
Since the beginning of 2021, more and more vaccines 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 some
industry and mechanical engineering have recovered countries such as Germany, we have been able to
more quickly than expected. The general economic offer all our people the chance to get vaccinated by
situation 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 our
­Siemens has continued to follow an accelerated and people and keep up their motivation. Although the
value-enhancing course of growth across all business global employee survey showed a high degree of
segments and regions. satisfaction with Siemens’ handling of the crisis and
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 have
people. Despite the hope and optimism fueled by led to widespread COVID-19 fatigue. In video
vaccinations, we are still committed to preventing the messages from Managing Board members and in
further spread of the coronavirus, combating it, and local 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 and
sustainable hygiene and protection concepts together their co-workers, but have also made an invaluable
with all our people. contribution to the success of our company with their
responsible behavior over many months and under
Lasting protection and enduring extremely difficult working conditions in many cases.
appreciation
The COVID-19 crisis team established in 2020 and Trust 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 and
developments quickly and efficiently. The established solutions. 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 → With its smart building solutions, Siemens Smart
and largely managed by the charitable Infrastructure creates safe and protected indoor
organization Siemens Caring Hands 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
institutions, as well as those affected by the crisis revive economic and social life. For example, the
worldwide. 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 of
has 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 from
initiatives in collaboration with NGOs in certain Siemens and its partners into its existing health
countries and other global initiatives managed and safety protocols. As a result, the center was
directly by Siemens Caring Hands e.V. For able 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 the of 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 and
used to provide additional medical devices, sustainably while also reducing the risks for
hygiene sets, masks, and food to affected families passengers. With our MaaS (Mobility as a Service)
and facilitate access to education in digital platforms, we can help railway operators provide
formats. The aid fund supports COVID-19 seamless mobility. Transparent travel details and
projects 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, and safe 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 a
provided aid funds totaling approximately country-wide basis in Spain, for example, where
€18 million, via both the COVID-19 Aid Fund and the railway operator Renfe has engaged Siemens
other charitable projects directly financed with Mobility and everis to develop and operate a
company 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 our
refit its factory in Marburg for the production of customers and partners can trust Siemens to help
COVID-19 vaccines in a record time of only five them solve their pressing challenges and make a real
months. This success will now be transferred to difference 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 first
company to bring a new mRNA vaccine to market,
together with Pfizer.

SIEMENS SUSTAINABILIT Y REPORT 2021 9

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 given
rise to new opportunities to develop modern ways of
working 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 Model
as an early move to set the course for the
transformation 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 when
sensible and feasible. This new model aims to
establish a work and leadership culture that is based
on trust and self-determination – independent of
face-to-face encounters. By focusing on results
instead of presence in the office, we empower our
people 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 the

first major international companies to establish a
culture that not only enhances the motivation and
performance of its people, but also strengthens its
position as an attractive employer that is prepared to
react flexibly to future crises. Above all, however, this
approach 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 2021 11

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 fight
global warming

E thics
foster a culture of trust, adhere to ethical standards, and
handle data with care

G overnance
apply state-of-the-art systems for effective and
responsible business conduct

R esource efficiency
achieve circularity and
dematerialization

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

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

A 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 within
holders – 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 all
addressing the three aspects of ESG, we are building a Siemens-affiliated companies excluding Siemens
better 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 our
erment, and growth, supports inclusive economic expectations as majority shareholder.
opportunities, and ensures that our people and
businesses remain resilient and relevant for whatev-
er the future holds.

SIEMENS SUSTAINABILIT Y REPORT 2021 12

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 Progress until end of FY 21 Ambitions

Decarbonization 1. Net zero operations by 2030 in line with 926 kt CO22 – 36 % – 50 %

SBTi pathway  1
2. Net zero supply chain by 2050, 8,098 kt CO2e 3 –1% – 20 %
20 % emissions reduction by 2030

Ethics 3. Striving to train 100 % of our people on −− 76 % 4 100 %

Siemens’ Business Conduct Guidelines
every three years

Governance 4. ESG-secured supply chain based on supplier −− Suppliers committed −−

commitment to the Supplier Code of Conduct
5. Long-term incentives based on −− ESG criteria anchored −−
ESG criteria   5

Resource 6. Next-level robust ecodesign for 100 % of relevant 26 % 6 26 % 100 %

efficiency Siemens product families by 2030
7. Natural resource decoupling through increased −− Part of Eco Efficiency @ Siemens 6 −−
purchase of secondary materials for metals
and resins 7
8. Circularity through waste-to-landfill reduction 7,000 t 6 7,000 t – 50 %
of 50 % by 2025 and toward zero landfill waste
by 2030

Equity 9. 30 % female share in top management by 2025 22.7 % 3 27.5 % 30 %

10. Access to employee share plans: maintain high 98 % 6 98 % 100 %
level and expand globally to 100 %  8
11. Global commitment to the New Normal −− Roll-out continued ––
Working Model 9

Employability 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 INFORMATION

ON 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 By combining the real and digital worlds, Siemens
company empowers its customers to transform their industries
– Purpose: Technology to Transform the and their markets.
­Everyday
– Combining the real and digital worlds to In addition to its core businesses of Digital Industries,
benefit customers and society 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 Siemens Healthineers1

Other businesses Services

Siemens Siemens Global

Portfolio Companies Siemens ­Advanta
Financial Services Real Estate Business Services

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

COMPANY PRESENTATION

SIEMENS SUSTAINABILIT Y REPORT 2021 14

1.2 Company profile

Shaping the industrial revolutions

Digitalization –
Combining the real and
the digital worlds in
industry, infrastructure,
4th Industrial Revolution mobility, and healthcare

Automation –
Automation of production
and computerization
3rd Industrial Revolution

Electrification –
Introduction of the assembly
line and advances in
2nd Industrial Revolution
transportation

1st Industrial Revolution Steam power –

Shift from manual to
mechanical production

Our corporate structure Shaping the industrial revolutions

Our corporate structure comprises business units, Siemens has shaped the industrial revolutions ever
countries, 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 combining
­create market opportunities, and drive growth on the the 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 for
external 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 technical profit after taxes of €6.7 billion. As of Septem-
­performance, innovation, quality, reliability, and ber 30, 2021, the company had around 303,000 em-
internationality. ployees worldwide.

Milestones in a 174-year history

1866 1847 1816 – 1892

The dynamo makes Pointer telegraph

electricity part of lays the foundation of Werner von Siemens,
everyday life Siemens as a global company founder,
company visionary and inventor

1879 1925 1959

Siemens electrifies the

World’s first
Irish Free State with a SIMATIC revolutionizes
electric railway
hydroelectric power plant automation

2012 2010 1983 1975

First magnetic Breakthrough of high-

Test operation of the TIA Portal takes automation
resonance imaging voltage direct-current
world‘s largest rotor for a stage further
scanner (HVDC) transmission
offshore wind turbines

2016 2018 2019 2020

MindSphere, the cloud- Charter of Trust: a joint Launch of first Comfy workplace app makes
based IoT operating system initiative for a secure project for it safe to return to the office
digital world Siemensstadt 2.0 during the coronavirus
pandemic
1 Including Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021 16

1.3 Strategy

1.3

Strategy

– Continuous improvement on the basis of four digital transformation of industry, smart infrastruc-
strategic priorities ture, and sustainable mobility. Under our strategy
– Sustainability is an integral part of our the 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-
future bining the real and digital worlds.
– Clear action fields and ambitions along our
DEGREE framework Siemens’ unique ability to combine the real and dig-
ital worlds is based on three elements: Using its
experts’ profound domain knowhow, Siemens is
With 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 the
this 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 Strengthening and

We identify the needs of our empowering people
customers as early as possible – We strengthen our customers,
ideally before our customers partners, and employees so that
themselves are aware of them. they can make the most of their
abilities.

Growth mindset
We will continue to grow
Technology with sense and learn – with curiosity,
and purpose resilience, experimentation,
Innovative technologies have been and adaptability
the beating heart of ­Siemens for
more than 170 years – and will be in
the future as well.

COMPANY PRESENTATION

SIEMENS SUSTAINABILIT Y REPORT 2021 17

1.3 Strategy

ers, partners and startups, Siemens brings custom- DEGREE: A clear framework for
er-oriented innovations fast to market. sustainability
The answers to the challenges of our time are vitally
Digitalization, automation and sustainability are important for the quality of life for people living today
growth engines for our business. Here, our core and future generations. Every degree counts as we
business and our digital business reinforce each strive to responsibly fulfill the needs of a constantly
other in a virtuous cycle. This effect forms the foun- evolving society. DEGREE underlines the necessity to
dation of our growth strategy for achieving more limit global warming to 1.5 degrees Celsius.
profitable growth. As a focused technology compa-
ny, we want to strengthen our position in all our That is why we are taking our sustainability approach
markets and enter adjacent profitable markets. to the next level with our DEGREE framework. It
­represents 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, our
platform, 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 busi-
ness and its digital business will increasingly rein-
force each other in the future.

Sustainability is an integral part of our

business
Sustainability is an integral part of our business. With
our technologies and solutions, we empower our
customers 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 our
­Siemens. It contains six action fields, within which customers lower their emissions and thereby achieve
we have defined 14 ambitions. We continually their decarbonization goals. Besides aiming to make our
­develop 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 our
­stakeholders. products. With its commitment to the Science Based
Targets initiative, Siemens s­ upports the Paris Climate
Agreement goal to limit global warming to 1.5 degrees
“Sustainability is part of our DNA: Celsius. 1
It is not an option,
it is a business imperative.” 1 Science Based Targets initiative including SHS.
Judith Wiese, Chief People and Sustainability Officer,
and member of the Managing Board of Siemens AG

SIEMENS SUSTAINABILIT Y REPORT 2021 18

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 of and 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 % ­female
lines. 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 will tain access to employee share plans at a high level
provide regular training to all our people. Our com- and expand globally to 100 %.3 As one of the first
pany is marked by a culture of trust. We co-founded major industrial players we have committed to a “new
the initiative “Charter of Trust” to protect data and normal” 4 in which our people can work ­remotely for
promote cybersecurity in a trustworthy digital world. two to three days per week, fostering a culture of trust
and empowerment.
G for Governance – It has been clearly shown that
strong 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 and
a comprehensive Code of Conduct. Furthermore, education of our people. We strongly focus on digital
sustainability criteria are an integral element of our learning, employee assistance program, and
long-term variable compensation programs for both 1
­occupational health & safety. For example, we are
the Managing Board and our senior ­management. aiming to reduce the injury rate by 30 % until 2025,
compared to the baseline year 2020. 5
R for Resource Efficiency – We want to accelerate ADDITIONAL INFORMATION

recycling and circular economy. Therefore, we have

developed a new standard for the design of environ- The DEGREE framework applies to Siemens AG
mentally friendly products, which contains clear except
­ Siemens Healthineers, which is an
product design criteria and shall cover 100 % of independently stock-listed company. Under the
­
­relevant product families. Our technology enables ­Siemens brand, we are closely connected to Siemens
sustainable design approaches for products and Healthineers via shared values, including
­solutions, both for our customers and ourselves. In ­sustainability in all its dimensions. These values
addition, we promote decoupling from natural contain the central ESG aspects (E for Environment,
resources by increasingly purchasing secondary
­ S for Social, G for Governance) from the perspective
­materials.2 By 2025, we are aiming to reduce our of 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 our ­represent 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, based 3 Where legally possible and reasonable.
on Customer Net Promoter Score, CO2 Reduction, Training Hours. 4 For employees with job profiles that make this feasible and
2 Product specification for use of secondary materials under ­reasonable.
­development. 5 LTIFR: Lost Time Injury Frequency Rate (of Siemens employees and
temporary workers).

SIEMENS SUSTAINABILIT Y REPORT 2021 19

1.4 Sustainable development of societies

1.4

Our contribution to sustainable

­development of societies

– Effective influence in achieving UN’s The United Nations’ 17 Sustainable Development

­Sustainable Development Goals (SDGs) Goals (SDGs) and their 169 targets serve as a compass
– Our contribution is measured with Business for 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 a whole if we are to achieve a more sustainable future.
– SDGs included in our DEGREE sustainability The SDGs and their related targets address the most
framework important economic, social, environmental, and

Allocation of the SDG goals to Siemens sustainability framework DEGREE

bonization
Decar
ty
bili Et
a
hi
oy

cs
pl
Em

Governanc
e
Equ
ity

cy
f i cien
Resource ef

SIEMENS SUSTAINABILIT Y REPORT 2021 20

1.4 Sustainable development of societies

­governance-related challenges of our times, and thus to carbon neutrality. These technologies support
help stimulate transformational change. Adopted as customers in achieving their objectives while
­
values, the SDGs also influence Siemens as a c­ ompany. consuming fewer resources. To varying extents,
­
They are firmly associated with our new DEGREE ­Siemens helps achieve most of the SDGs in the
­sustainability framework, which serves in-house to UN’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 gen- and
erate value for all our stakeholders. → through our corporate citizenship activities and
community engagement.
The long-term priorities for Siemens as part of our
sustainable development agenda are clear: We want
to apply our engineering expertise and our approach
to connect the real and digital worlds, improve
­people’s quality of life, and protect the planet. This is
especially supported by our corporate purpose of
“Technology to Transform the Everyday.” The UN’s
17 SDGs have thus become ­fixtures of our everyday
­business. Siemens deploys its technology portfolio to
support the public and private sectors in the digital
transformation 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 and
From a global standpoint, these are the SDGs where ­empower all women and girls
Siemens has a high or medium impact:
We firmly believe that promoting ­diversity in the
Goal 3 – Ensure healthy lives and promote workforce serves the interests of both society and
well-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 our contributes to our business success. Through our
business 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 the where there is room for improvement. Here we are
impact of our portfolio, we also care about the health recruiting 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 Assistance ­Siemens 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 we by 2025.
participate in health-related community engagement
activities, such as cancer awareness campaigns and Goal 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 of
learning opportunities for all applications for modern smart grids and energy
distribution systems. The rapid expansion of
­
Lifelong learning is a basic prerequisite if we are to ­decentralized energy structures powered by Siemens
ensure employability for our people and in the job technology creates a more diverse energy mix and
market in general. We offer access to education in improves the security of energy supplies. The Internet
multiple ways, including learning and education of Energy and data-based technologies foster energy
­opportunities 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 access
with 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 and
mathematics)
­ through numerous corporate
­citizenship activities around the world.

SIEMENS SUSTAINABILIT Y REPORT 2021 22

1.4 Sustainable development of societies

Goal 8 – Promote sustained, inclusive and Goal 11 – Make cities and human
sustainable economic growth, full and ­settlements inclusive, safe, resilient, and
productive 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 for make 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, wherever efficient 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 the
­company, 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 a
thought 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, the
­
jobs and f­ acilitating employment, and we are encour- ­environment, and society. So by the end of this
aging the uncoupling of economic growth from en- ­decade we want to evolve even further toward the
ergy ­consumption. circular economy, for example by increasing the
­percentages of metals and plastics we procure as
Goal 9 – Build resilient infrastructure, secondary materials. We also aim to reduce our
promote
­ inclusive and sustainable amount of landfill waste. Siemens has worldwide
­industrialization, and foster innovation strategic initiatives for the design phase and end of
life-cycle for its products and operations, and is
As a global technology company and innovation ­committed to robust, ecologically friendly design.
­leader in electrification, automation, and d
­ igitalization, We apply disruptive technologies and innovative
Siemens supports sustainable industrialization. With business 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 to
innovations. A large percentage of our customers
and suppliers are small and medium-sized enterpris-
es (SMEs). We have officially adopted sustainability
as an additional strategic imperative for our invest-
ment 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 other
relevant regulations into our supply chain and to
Siemens was one of the world’s first ­industrial firms ­promoting their principles through our work with
to 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 of
and thus met our intermediate target. The company ­implementation and revitalize the ­Global
is now stepping up its existing activities for physical Partnership 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, we
emissions in its supply chain by 20 percent from the believe partnerships are key to sustainable
2020 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,
­ we recognize the importance of
chosen on the basis of the reduction track of the ­digitalization, project financing, and public-private
Science Based Targets initiative. This ensures that our partnerships for sustainable development. In all of
efforts are consistent with the levels aimed for by the these 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 organizations (NGOs), and
ergy efficiency permanently, with a positive business academia, including the UNGC, World Economic
­
scenario, and to reduce CO2 emissions. ­Forum (WEF), econsense, Transparency International,
and numerous universities.
Goal 16 – Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all, and build
effective, accountable, and inclusive in-
stitutions at all levels

We anchor integrity and compliance throughout our

company and advance the Siemens Integrity Initiative
with external stakeholders. By these means and
through 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

1.4 Sustainable development of societies

Business to Society – measuring our Customers and governments thus get useful
social impact information, for example in the course of large
­
We measure our impact on sustainable development ­infrastructure projects. Employee feedback on social
with our Business to Society (B2S) methodology. This media posts indicates that our contribution to
approach is based on the Measuring Impact Frame- ­societies makes our people proud to work for Siemens.
work published by the World Business Council for Transparently contributing to society thus provides
Sustainable Development (WBCSD) and allows us to tangible 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 the
the 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 their
societies. The B2S approach was launched as a pilot
project in fiscal 2015. By the end of fiscal 2021, more
than 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 these
priorities;
3. Define strategic actions to enhance our
contribution
­ and help shape further
development;
4. Be transparent about our contributions by
keeping 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 the REPORTING METHOD SECTION

Strengthening the Building Driving

economy skills innovation

Economic value: Global employment: Research and development:

Generated €281 billion of gross value added,1 Siemens opened up possibilities for 5 million € 4.9 billion spent on research and development
€ 62.3 billion in revenue; operating in around jobs, 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 and study 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 the
development of autonomous vehicles. Charter
Attractive jobs: of Trust – joint initiative between Siemens and
More than 100,000 Siemens employees companies all over the world to create a more
excluding SHS took part in the Siemens employee secure digital world
share program in 2021; as shareholders, they are
also co-owners. Personnel expenses for wages University partnerships:
and salaries: € 20.1 billion; pension contributions Siemens works closely with the research
of approximately € 4.0 billion 3
excellence in international ecosystems

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 for
about 5,000 persons with disabilities

1 Fiscal 2019.
2 Including Varian.
3 
Contributions to defined benefit plans, defined con-
tribution plans, and state plans. Figures comprises the
total of all continuing and discontinuing operations.

SIEMENS SUSTAINABILIT Y REPORT 2021 26

 1.5 Our key areas of impact

Protecting the Improving quality Shaping a

environment of life changing society

Decarbonizing society: Health: Supply chain management:

88 Mt greenhouse gas reduction through Siemens Healthineers – 174 million patient Clear commitment from around 63,000 suppliers
Environmental Portfolio products in operation touchpoints provide access to healthcare in to the Siemens Group Code of Conduct for
by our customers underserved countries; 64 AI-supported products Suppliers and Third Party Intermediaries,
help improve clinical decision-making 394 external sustainability audits performed
Efficiency in consumption:
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 for
customers. To date, that guarantee has already that 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 door than 50 countries; around 72,000 employees
Carbon footprint: have already completed global online training
– 36 % Scope 1 and Scope 2 emissions since Security: course in the Business Conduct Guidelines
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, and Comprehensive due diligence process regarding
ensure compliance environmental and social risks implemented
Circular economy:
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 and Siemens” 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 our employees and temporary workers by 8 % The charitable foundation, established in 2008,
used equipment and avoid additional resource compared to the previous year; acting quickly, promotes with its international project work
extraction from nature effectively and adapted to the respective local access to basic services, high quality education
situation during the COVID-19 pandemic in order and an understanding of culture. With a network
to ensure the health and safety of our people of over 100 cooperation partners the foundation
develops solution approaches and programs with
Global commitment to the New Normal a focus on technological and social innovations
Working Model 2

1 S
 cience Based Target Initiative; base year 2019.
2 For employees with job profiles that make this
feasible and reasonable.

SIEMENS SUSTAINABILIT Y REPORT 2021 27

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 management and agile software development,
– Regular measurement of customer ­satisfaction to name just two examples.
→ 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, and As these changes advance, our customers’ needs are
­sustainability, our customers are always at the heart also changing. So as a company, we must adjust as
of what we think and do: Everything begins with well, and listen carefully to our customers so we can
them. 1
provide them with the best possible help in adapting
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 important
needs as early as possible – best of all, even before stakeholders, along with our suppliers, partners,
our customers themselves become aware of them. investors, and our people. We engage in critical dialog
and engage with them, answer their questions, and
Focus on customer impact ­encourage discussion. This helps us better understand
What do our customers want? How can we be sure to our stakeholders’ expectations and take the right
help them stay relevant, even during phases when steps to strengthen our partnerships while
markets are constantly shifting, and our customers maintaining and enhancing trust.
themselves are undergoing transformations?
We provide products, solutions, and services in a
­ lmost
Our 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 the
markets, 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 have success factors are a strong customer focus,
shortened drastically. ­digitalization, and efficient and lean processes, as
→ As barriers to market entry are lowered, nimble well as collaboration with external partners.
new competitors are entering the scene.
→ Digitalization can be disruptive, but it also Our regional teams can also call upon our global
offers new business opportunities. ­network of partners, which includes consultants,
distributors, integrators, technical procurement
­

1 We call any current or potential purchaser of Siemens products or

­experts, construction companies, machine builders,
services, no matter what the sales channel, a “customer.” Some and more.
customers who are especially significant for Siemens are called Key
Customers.

SIEMENS SUSTAINABILIT Y REPORT 2021 28

1.6 Customers

Questions such as “How to create business value from

digital 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 their
sustainable performance Increasingly complex solutions driven by ­digitalization,
along with new and changing business models and
Through our portfolio – which primarily covers holistic strategies for sales ecosystems, require robust
­automation and digitalization in the process and selling 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, and To address these challenges, at Siemens we rely on a
­medical technology for the healthcare sector – we mature 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 on

­sustainable solutions and transform potential risks Key Account Management:
into ­competitive advantages with our technology and a holistic ­approach to meeting
­innovation. Siemens has a unique store of expertise customer needs
for managing this transition so as to make
­sustainability into a growth engine, transform supply Key Account Management is the company-wide
chains, and protect our people. program that structures and drives systematic
­
­business relationships with Key Customers. While all
New solutions for the digital world our customers are served by the general Sales
The digital transformation is also changing all areas ­organization, Key Customers are attended to also in
of 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
include a regular risk assessment of environmental
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.
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 Account
and partners. ­Management is – beyond the basic sales approach –
a special understanding of our customers’ vertical
markets along with the collaboration among ­all
customer-­
­ facing parties – across functional,
organizational,
­ and regional boundaries
­(“Go-to-market“ approach).

SIEMENS SUSTAINABILIT Y REPORT 2021 29

1.6 Customers

Such a holistic view makes it easier to develop ­suitable Thanks to harmonized processes, Key Account
sales 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 coordinated
ecosystem in the respective industries. approach.

Siemens has therefore structured Key Account In the Vertical Market approach, Key Account
­Management according to vertical markets (Siemens ­Managers 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 of generate profitable growth with solutions that
products, solutions, and services across all business ­successfully 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 we
basis. In the VMs, markets are served by a single apply worldwide, enables our Sales and Key Account
­Siemens business. Management representatives to adequately map and
address all relevant customer needs and r­­equirements.

Siemens Vertical Market Management

Corporate Siemens Vertical

Accounts Markets (SVM) Key Account
Management
s
es

ner
siness 1

siness
ess

art

Vertical
usin

al p
Core bu

Markets
Core bu
er b

ern

(VM)
Ext
Oth

Emerging Verticals

Sales
Customers

SIEMENS SUSTAINABILIT Y REPORT 2021 30

1.6 Customers

Systematically measuring and improving Regardless of the score, we initiate a follow-up

customer satisfaction ­process after the survey, both internally and e
­ xternally.
What is more, we regularly measure customer When a score is low and considered critical, we take
­satisfaction – and, by extension, the quality of our immediate 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-term ­relationship.
performance bonuses based on ESG criteria and is
anchored in the DEGREE framework under Gover-
nance. The assessment is based on the Siemens
­internal ESG-/sustainability index, which comprises Our customers’ satisfaction is
the elements of customer satisfaction (Net Promoter our top priority
Score), CO2 reduction, and training hours.
SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION In response to areas with potential for improvement, the
relevant 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 the
would 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 the
relations that includes following up through the im- COVID-19 pandemic.
plementation of processes and systems designed to
help foster long-term customer loyalty.1 Siemens measures customer satisfaction ­annually. This
year’s continuing increase in the Net Promoter Score

1 In most cases, the survey questions focus on the business unit
motivates us even more to keep meeting our customers’
(BU) level. However, the overall score can be aggregated up to the high expectations and demanding needs – especially in
­business level and to the level of the entire company.
today’s difficult environment.

SIEMENS SUSTAINABILIT Y REPORT 2021 31

1.7 Research and development

1.7

Research and development

– Innovation that benefits people everywhere → Decentralized energy systems intelligently link
– Focus on core technology and innovation fields local energy production with consumers and
– Collaboration with partners as enabler ­intermediate storage systems as the proportion
of electricity generated by renewable sources
grows. Predictive and optimization tools i­ mprove
Our purpose is to provide innovations that improve grid flexibility, creating emission-free buildings
the quality of life and benefit people all over the and smart charging infrastructures to provide a
world, thus contributing to various SDGs and the future-oriented path to more stable, ­lower-priced
implementation of the portfolio-related action areas and carbon-free power supplies.
Decarbonization and Resource Efficiency in our → The availability of large, economical energy
­DEGREE framework and verifying both the range ­storage systems is essential for the success of
and the extensive benefits of our products and the energy transition. Developed by Siemens,
­applications. these storage systems enable innovative forms
of transport such as battery- and hydrogen-­
Innovation strengthens Siemens and its powered trains and ships
customers → Power electronics for inverters has always played
Our research and development (R&D) activities are a major role in industry. As the amount of
geared toward developing innovative, sustainable electricity generated by renewable energy
­
solutions for our customers and for Siemens ­sources grows, power grids will also depend on
­businesses 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 be
ties with innovative solutions and business models ­electrified and interconnected. Therefore, we
in 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
­ systems, and the digitally
essential role in the success of Siemens and its supported integration and management of
­
customers. The joint implementation of our CCTs ­multimodal transportation systems.
by the company’s operating units and unit Technol- → Blockchain technology enables transactions
ogy ensures that research activities and business ­between equal partners to be documented in a
strategies are ­carefully aligned and that all units tamper-proof and transparent manner in order
can profit ­equally and quickly from technological to allow peer-to-peer energy trading and ensure
developments. In fiscal 2021, the company focused a 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 are

will profit from innovative materials that can, for ­generating larger and larger volumes of data.
example, boost the efficiency of power Here, AI enables improved decision-making
­generation and enable the lightweight design thanks to data analysis, thus increasing our
of railway ­vehicles. ­customers’ productivity.
→ Additive manufacturing processes facilitate the → In the area of medical technology, sensor
flexible production of components that have ­systems 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 as increasingly complex applications can be
­
a user of this technology, is also involved in ­automated. These technologies enable complex
­developing a digital tool chain that will support medical systems to function even in remote
the design and subsequent printing of areas and less-developed regions, while
­
­components – “error-free and from one cast.” simultaneously
­ improving the systems’
→ We are shaping the future of automation. Our ­efficiency. They also bring healthcare closer to
goal is to cut engineering expenses, increase people, make high-quality healthcare available
flexibility – through the integration of everywhere and reduce both the frequency and
autonomous manufacturing machines, for
­ cost of medical complications.
instance – and improve our customers’
­ → Digital twins involve the modeling and
­productivity, 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 the commissioning of manufacturing plants,
result of the increasing networking of field
­ improve time to market and optimize the
­
­devices. The IIoT enables field devices to be ­operation of infrastructures throughout their
equipped with additional software-based life-cycles.
­functions during ongoing operations and makes → Industrial cybersecurity is a key technology for
it possible for the data produced by these digitalization. The security of industrial facilities
­devices to be evaluated in the field or in the and the protection of data and intellectual
cloud. It facilitates the development of new ­property are important requirements not only
­operating and business models in areas such as for customers, but also for governments and
predictive 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 different
­generating ever-growing amounts of data. With providers can be developed only by using new
the help of machine-based data analysis and methods and processes in software system
artificial intelligence (AI), we help plant ­development.
operators to increase availability, improve
­
­operational quality, and minimize the stress
placed 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 new of life-cycle optimization (design tools, digital twins,
Siemens strategy and accommodate changed market algorithm optimization) and decarbonization (tools
demands, while continuing to contribute to the for the sustainability transformation and the green
­success of Siemens and it customers through the factory, carbon footprint transparency and optimiza-
provision of Technology with Purpose. These changes tion). The newly created CCT “Integrated Circuits &
include among others the expansion and renaming Electronics” bundles R&D activities in fields such as
of the CCT Decentralized Energy Systems to optimized 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 & Connectivity & Simulation & Software Systems &
AI Edge Digital Twins Processes

Cybersecurity Sustainable Energy & Additive Manufacturing &

Automation & Trust Infrastructure Materials

Integrated Circuits &

Power Electronics User Experience 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 of ­leading 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
opportunities.

€ 4.9 billion Siemens’ global venture unit, Next47, provides capital

R&D expenditure FY 2021 to help start-ups expand and scale. It serves as the
creator of next-generation business for Siemens by
We are further developing technologies on the basis building up, acquiring, or partnering with start-ups at
of our open innovation concept. In 2021, an external any stage in their development. Next47 focuses on
­platform 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 of REPORT 4.3 RESEARCH AND D
­ EVELOPMENT

knowledge and inspiration. July 2021, for example,

saw the start of the Tech for Sustainability campaign,
in which research into new technologies for a more
sustainable future is broken down into fields of appli-
cation. The SIE is currently used by more than
30,000 registered users.

1 FY 2021 figures inclusive Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021 35

 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 the
of external frameworks and dialog with relevant sustainability topics, which were discussed
stakeholders with and confirmed by our S
­ iemens Sustainability
– Material sustainability topics identified and Board. The material topics form the framework for the
grouped with an emphasis on shared values implementation and accelerated advancement of
and responsibility sustainability within the company – at the central
– Material sustainability topics applied as corporate level, in our business units, and in the
guiding principles for the DEGREE ­framework countries where we operate. Our DEGREE framework
is the visible outcome of this work. ­Siemens strives
to continuously improve sustainability management
and understands the materiality assessment to be a
Key topics as guiding principles prerequisite 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 of
­policymakers, media, nongovernmental organizations, ratings, rankings, and peers. The subsequent short-­
business associations, and academic ­institutions. listing was conducted in workshops. Afterward, three
perspectives were evaluated in expert workshops and
Updating of the materiality assessment in interviews with internal and external stakeholders.
We updated our materiality assessment with an
emphasis on Smart Infrastructure, Digital Industries, → Stakeholder perspective:
and Mobility in fiscal 2021. The resulting topics This perspective refers to sustainability topics that
largely match the material topics of Siemens are deemed to be material by external stakeholders
Healthineers, which were determined as part of an such as customers, investors, suppliers,
independent materiality assessment. The goal was to government officials, and NGOs, as well as internal
identify the key economic, ecological, and social stakeholders (stakeholder relevance). The
topics for Siemens in accordance with the GRI most material topics from the perspective of our
Standards. To this end, we consulted relevant stakeholders are sustainable product design and
stakeholders 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 assessment

in the supply chain, as well as corporate governance Shared-value and responsibility topics
and sustainability leadership. The material sustainability topics were then grouped
in accordance with the shared-value and responsibility
→ Inside-out perspective: approach.
This perspective refers to sustainability topics that
can be positively or negatively influenced by the Shared values are associated with social progress
company’s business activities, business and business value. Companies need to make a
relationships, and products and services positive contribution to society in order to maintain
(sustainability relevance). The most material their “social license to operate.” Shared-value topics
topics in which Siemens can exert the greatest are those for which we want to create added value
influence on society and the environment are through our activities, products, and services; our role
social and ecological standards in the supply chain, as thought leaders; and our corporate citizenship
climate protection, and sustainable product design activities; and by meeting key systemic challenges to
and lifecycle ­management. the benefit of society. At the same time, we strive to
seize 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 of bear the responsibility to prevent material negative
the company’s business activities or financial impacts on people, society, or the environment in our
situation (business criticality). The most business activities. Such impacts could also present
material sustainability topics from the perspective a potential financial or reputation risk for our business
of the influence on our business activities and the activities.
generation of lasting value are climate protection,
sustainable product design and life-cycle Our material sustainability topics are clearly linked to
management, and social and ecological standards the Sustainability Development Goals (SDGs), our
in the supply chain. four strategic priorities and our DEGREE framework.
STRATEGY

As the result of our materiality assessment, we have

identified 15 material sustainability topics of greatest The linkage of the material sustainability topics to the
relevance to our stakeholder groups and of greatest GRI can be found here: ANNEX GRI INDEX

importance for their sustainability impact and impact

on Siemens. We plan to conduct the materiality
­assessment at least every five years.

SIEMENS SUSTAINABILIT Y REPORT 2021 38

 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. STRATEGY

Strategic
Sustainability topics SDGs priorities DEGREE

Climate protection 1 D ECARBONIZATION

Sustainable product design and R ESOURCE EFFICIENCY

life-cycle management 1

Innovation and business model 2 D ECARBONIZATION

R ESOURCE EFFICIENCY
Shared Values

Partner management and collaboration 2 D ECARBONIZATION

G OVERNANCE

Responsible governance 2 G OVERNANCE

Future of work 2 E QUIT Y

E MPLOYABILIT Y

Sustainable handling of natural resources R ESOURCE EFFICIENCY

and material efficiency 2

Dimension

Social and ecological standards in G OVERNANCE

the supply chain 1

Cybersecurity and data management 2 E THICS

Employee health and safety 2 E MPLOYABILIT Y

  

Diversity, equity & inclusion 2 E QUIT Y

Responsibility

Customer safety and product quality 2 G OVERNANCE

Corporate governance and G OVERNANCE

sustainability leadership 2

ESG risk management 2 G OVERNANCE

E THICS

Compliance management 2 G OVERNANCE

E THICS

1 Top 3 material sustainability topics. TECHNOLOGY WITH PURPOSE CUSTOMER VALUE

2 12 additional material sustainability topics.
STRENGTHENING AND EMPOWERING PEOPLE GROWTH MINDSET
Result of the assessment of organizational impacts (inside-out, i.e., on the environment
and society), stakeholder relevance and business criticality (outside-in)  D EFINITION OF THE MATERIAL TOPICS – BUNDLED ACCORDING TO SHARED
VALUE AND RESPONSIBILIT Y

SIEMENS SUSTAINABILIT Y REPORT 2021 39

2.2 Sustainability governance and organization

2.2

Sustainability governance
and organization

– The Sustainability Board is the central steer- More detailed information on the structure and re-
ing committee for the ongoing strategic sponsibilities of the Managing Board and Supervisory
­development of sustainability Board can be found in management’s Corporate
– Business and country CEOs are responsible Governance Statement in our ANNUAL REPORT .

for implementing sustainability policies

– ESG criteria are included in the compensa- Clear organizational structure and
tion system for members of the Managing responsibilities
Board and senior managers All strategic sustainability activities are overseen by
our Chief Sustainability Officer (CSO). The CSO is a
member of the Siemens Managing Board and chairs
Sustainability management is a company-wide effort the Siemens Sustainability Board (SSB), which consists
that derives from our corporate purpose. It is at the of representatives of the businesses, countries, and
heart of everything we do. Sustainability is firmly units with governance responsibilities (technical and
rooted 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 the
strategic development of sustainability at Siemens,
Foundation: corporate governance and makes decisions regarding key sustainability
The cornerstone for sustainability-based corporate matters. Where necessary, the Managing Board
management is compliance with recognized addresses sustainability-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 a example, it was the Managing Board that adopted the
Managing 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 achieve sustainability aspects into account when making
sustainable growth in company value. The members business decisions. At quarterly meetings, the SSB
of 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 or
Board 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 matters
business development, planning, strategy, and the such as the SBTi commitment, putting the DEGREE
implementation of that strategy. sustainability framework into operation, and a
materiality analysis to serve as the basis for the
further 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 with
governance Members:
› Businesses
› Countries
› Units with governance
Countries

Sustainability Department

Functional Sustainability Sustainability

governance implementation governance

The Siemens Sustainability Director heads the ­systems, they must also take account of business
Sustainability Department and supports the CSO in opportunities and business risks that relate to
performing his or her duties. In this capacity, the sustainability. They also set the targets for strategic
Sustainability Director reports to the CSO and is a sustainability 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 for businesses and countries are supported by
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 with
SSB to anchor new sustainability topics within the their 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 the
for implementing sustainability within the Group. units. All units with governance functions are
This responsibility includes taking sustainability additionally responsible for the company-wide
aspects strategically into account all along the value implementation of sustainability aspects within their
chain within their organizations’ business activities. spheres of responsibility. They analyze new
In all their decisions, strategies, processes, and sustainability requirements specific to their markets

SIEMENS SUSTAINABILIT Y REPORT 2021 41

2.2 Sustainability governance and organization

and 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)
for measuring customer satisfaction. As well as for the
Sustainability reflected in management members of the Managing Board, these criteria are
compensation applicable analogously for all senior managers g
­ lobally
In fiscal 2019, the compensation system for members who are eligible for Stock Awards.
of the Managing Board was reviewed in depth and
revised 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 for
was established for sustainability aspects. As part of shortterm 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. COMPENSATION

with three equally weighted indicators. REPORT 2021

Digital learning hours

CO2 Emissions per employee Net Promoter Score (NPS)

Amount of greenhouse gases The total number of digital learning Customer intention to recom-
emitted by the company’s hours completed in virtual trainer- mend us, measured on a scale of
business 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 the
sets (for example, certificates). community-based virtual learning, number of promoters (%) minus
and hybrid training sessions the number of detractors (%).
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 Our new DEGREE sustainability framework is also
stakeholders founded on dialog with our customers, investors,
– Partnerships are key to sustainable develop- suppliers, and our people, and with society at large,
ment and business success and on acknowledging the impact our business has
– Siemens is an active member of numerous on the planet. This new framework thus represents a
business associations and organizations 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 to
variety of ways with a very diverse set of players. Our find innovative solutions to some of the most pressing
efforts here are in line with SDG 17, which calls for a issues facing the planet. For that reason, dialog with
revitalized, strengthened global partnership that policymakers is intrinsic to our social responsibility,
brings together governments, civil society, the private and is of tremendous importance to our success as a
sector, 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 and Our advocacy activities focus on the following topics
intertwined sustainability challenges such as and policy areas, among others: cybersecurity,
environmental concerns. We maintain a constant digitalization (including Internet of Things / IoT and
dialog for that purpose with investors, customers, artificial intelligence, or AI), decarbonization and
suppliers, our people, communities, policymakers, climate change action, energy, R&D, and trade
media, nongovernmental organizations, business policy, as well as connected and automated
organizations, and academia. Our management and ­m obility for rail and road. We have joined forces
the relevant specific units with governance functions with leading companies from around the world to
are in charge of this task. For example, overall establish t­ he Charter of Trust, which aims to make
responsibility for dialog with policymakers lies with the digital world safer and more secure
the Managing Board of Siemens AG. Within the (  HT TPS://[Link]/ ).

various business units, the unit’s CEO is responsible

for coordinated dialog. The Managing Board has Furthermore, we support the goal of achieving a
tasked the Government Affairs Department with carbon-neutral Europe by 2050 – announced as part
performing the necessary coordination duties and of the European Green Deal – through a variety of
has given it the powers it needs for the purpose. commitments, including our active memberships in
the European Alliance to Save Energy ( HT TPS://EUASE.

This engagement with our stakeholder groups creates NET/ ) and the EUROPEAN GREEN DIGITAL COALITION .

value on all sides of the equation through exchanges

of knowledge and information, as well as through As 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 for
proposed measures establish conditions under which Economic Cooperation and Development (OECD), the
companies can now make long-term plans. A fair and United Nations, the European Union, and the World
reasonable carbon price will accelerate the embrace Economic Forum (WEF). We are involved in various
of 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 the Corruption Initiative (PACI).
transition to a carbon-neutral economy. Siemens will
continue to do its part here – because we have the We cooperate as well with the United Nations, for
necessary technologies and knowledge to reduce CO2 instance as part of our commitment to the Ten
emissions 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 the
principles, and other breaches of applicable law and World Bank’s Carbon Pricing Leadership Coalition
internal 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 to
political parties, or political organizations). All the UNGC Women’s Empowerment Principles and
contributions that support purely political purposes have signed the Diversity Charter, an initiative by the
or the representation of political interests, such as German government.
election events for political campaigns, are prohibited
by our internal guidelines. For years, we have supported One Young World
(OYW), a nonprofit organization that champions
Engagement in associations and young business leaders around the globe in order to
organizations build a better world with more responsible, more
In addition, Siemens is a member of numerous effective leadership. At the 2021 OYW Summit in
business associations and similar organizations, some Munich, we celebrated ten years of our CEOs’ involve-
of which advocate for their members’ interests in the ment with the organization.
political arena. Selected examples of the most
important memberships in our three core markets
(the European Union, the United States of America,
and China) are: the International Chamber of
Commerce (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 the
European Chamber of Commerce in China (EUCCC).
More information on political activities at Siemens
can be found here: HT TPS://[Link]/GLOBAL/

EN/COMPANY/ABOUT/CORPORATE-FUNCTIONS/GOVERNMENT-

[Link]

SIEMENS 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 number 1. Markets and customers increasingly want

of ratings and rankings information about ratings and rankings, and
– This helps continuously improve our sustain- they’ve begun requiring these assessments as
ability performance part of their contract terms.
– It also strengthens the Siemens brand and 2. More and more investors are developing their
enhances the satisfaction of our people own ratings and rankings to assess companies’
sustainability performance.
3. We want to be able to benchmark ourselves
Our commitment to sustainability is widely recognized against peers and competitors so we can
in a variety of significant ratings and rankings. This introduce the right steps for improvement and
recognition corroborates the wisdom of our detect 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 and
improvement. enhance the satisfaction of our people.

We actively involve ourselves with external ratings

and rankings as a way of measuring our performance
against 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 28.4points
A–

Constant leader for Prime status in 5th in our industry Over 10 years at
five years (AAA / AA) ESG Corporate with strong manage- ­leadership level
Ratings since 2016 ment of ESG risks1 (A / A-) in Climate
Change

81
points
61
points
57
points

#1 in our industry, more Part of the Silver recognition level and Constituent of the
than 20 years FTSE4Good Index family as such within the leading ­V igeoEiris EUROZONE
in the World companies in our industry 120 index since 2020
Index (top 10 %) (top 25 %)

Rating highlights

Innovation Green products and Environmental

management service / ecodesign management system

Cybersecurity Customer relationship Compliance

program management management system

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

SIEMENS SUSTAINABILIT Y REPORT 2021 46

 Page 47 – 72

Governance
Responsible Business
Practice

Ethics Governance
Foster a culture of trust, adhere to ethical Apply state-of-the-art systems for effective and
standards, 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 of Additional topics:
applicable laws and our own internal → Focus on human rights: climate protection,
guidelines occupational safety, and responsible
→ A global, risk-based compliance system sourcing of minerals
→ Aiming for a leading role in cybersecurity → 
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 our Strong Institutions.” That goal includes a call for
values: “responsible – excellent – innovative” companies to dramatically reduce corruption and
bribery in all their forms.

Siemens takes a zero-tolerance approach to corruption Worldwide commitment to

and other breaches of applicable laws and of the fighting 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 –
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 and
laws and internal regulations: It’s the foundation of promoting fair competition in our markets SEE ALSO

all our decisions and activities, and the key to integrity THE SECTION ON “COLLECTIVE ACTION” BELOW . Part of that
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 framework of the Organisation for Economic Cooperation and
under “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 the
other guidelines, are a foundation for our company-
wide work in this domain and are also enshrined in
Zero-tolerance approach to
our code of conduct: the Siemens BCGs that provide
breaches of applicable law and our
direction for all our activities. BUSINESS CONDUCT
Business Conduct Guidelines
GUIDELINES

SIEMENS SUSTAINABILIT Y REPORT 2021 48

3.1 Compliance

Siemens and its roughly 303,000 employees operate and the general public. They also serve as an
in 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 all
that 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 that
compliance activities, is correspondingly complex. goal, the system is based on three pillars – prevent,
detect, and respond – and covers the activity fields
The Siemens compliance system anti-corruption, anti-money laundering, antitrust,
Our BCGs contain the fundamental principles and Collective Action, data privacy, export control, and
rules for our conduct, both within Siemens and in our human rights. HUMAN RIGHTS and DATA PRIVACY

relationships with our customers, external partners,

Siemens compliance system

Prevent

Vorbeugen

Management
responsibility
Verantwortung des
Managements
Res
pRoea

ne ct
ndgie

e n e te
n

D
re

k
n

Er

Activity fields
Korruptionsbekämpfung Kartellrecht Datenschutz Menschenrechte
Anti-Corruption Antitrust Data Privacy Human Rights

Geldwäscheprävention Collective Action Exportkontrolle

Anti-Money Laundering Collective Action Export Control

SIEMENS SUSTAINABILIT Y REPORT 2021 49

3.1 Compliance

Preventive 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
and procedures, incorporating compliance of integrity within the Siemens Global Employee
requirements into our business processes, and Survey (SGES). The surveys are held annually on
providing comprehensive training and advice for our selected 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 the organization’s perception and awareness of integrity
Ombudsperson as well as professional and fair and responsible business conduct. The next survey is
investigations – are indispensable for recognizing and scheduled for fiscal 2022.
completely resolving matters of misconduct.
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 meet
action and meets our requirements, our internal audit business-specific risks and multiple local legal
department continuously performs compliance requirements. The findings from compliance risk
controls and audits. management, as well as compliance controls and
audits, serve as a basis for deriving measures to
One of the key components of this compliance system further 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 detect
to the Chairman of the Managing Board as a compliance risks at an early stage and take appropriate
governance function. Our Chief Compliance Officer steps to prevent or mitigate risks. Risk assessment is
delivers quarterly reports directly to the Managing also integrated into individual business processes and
Board and Supervisory Board of Siemens AG. tools that evaluate risks in any given business
decisions and take appropriate risk mitigation steps.
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.
compliance officers who ensure that the compliance
system is implemented worldwide. They work closely Compliance risk management is an integral part of
with employees and managers, who assume personal the company-wide Siemens Enterprise Risk
responsibility for compliance within their respective Management (ERM) program ANNUAL REPORT 2021

business units. 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 our each region assess its business risks in relation to
commitment to compliance and ensure that all compliance risks. Current developments are
business decisions and transactions that fall within systematically also evaluated.
their area of responsibility comply with both the
relevant legal requirements and our own values and In close collaboration with the relevant businesses,
company guidelines. Siemens managers demonstrate the early identification and assessment of the
a strong commitment to compliance. Compliance and compliance risks involved in new digital business
integrity are therefore deeply anchored in our models 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 of compliance 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 and
monitor emerging or changing risks. The results of specific 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 and
committed to the fulfillment of our priorities.
Compliance priorities in fiscal 2021
Our compliance priorities are the foundation for the Compliance 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 and employees and the Compliance department receive
strive to fulfill them. Among the challenges in this targeted, group-oriented, risk-based training on
regard are changes in market conditions and in the compliance 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 our
company and beyond.

Committed to business Manage risk and assurance

pliance priorities
Com
Further intensify cooperation Continue providing our businesses with
Foster
between the compliance organiza- the appropriate level of assurance within
integrity
tion and our businesses and our compliance system.
reinforce our compliance system’s
Ma assura
an
to busi ted

market and customer focus.

ss

d
nag
ne
t
Commi

e risk

Culture of
nce

ownership

xc
ti
ve
E

m e lle ec s
co

es

te p l i a n t Eff ces
am nc p r o
e

Excellent compliance team Effective processes

Provide an excellent compliance Continue to further optimize

team through a first-class learning and streamline our compliance
and development landscape and processes.
close collaboration.

SIEMENS SUSTAINABILIT Y REPORT 2021 51

3.1 Compliance

Compliance training for the Siemens organization In addition, Siemens employees around the world
emphasizes 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 funda-
mental compliance issues among all employees New target for BCG training
2. To convey in-depth specialized knowledge to As part of the new DEGREE framework, Siemens has
managers and specific target groups expanded the existing training target to include the
3. To provide additional materials on all relevant group of employees without online access. In the
compliance topics future, we plan to train all employees on the BCGs in
campaign cycles that run for three years each (without
Employees learn about the compliance activity fields SHS). The current cycle covers the fiscal years from
through programs such as mandatory web-based 2020 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 our
additional 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 the in-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 maintain for training. Annual face-to-face training sessions will
training continuity. be held at every production site worldwide. We aim
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 them keeping with the new DEGREE target. No in-person
(approximately 93 %) successfully completed the sessions 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 means

that in order to reach our goal to train employees at

181,000
our production facilities, fiscal 2022 remains for the
target achievement. 2 In fiscal 2023, a new three-year

since the start of the campaign, 181,000 cycle will begin and will comprise annual trainings

employees were trained on the contents of both in person and online.

the Business Conduct Guidelines

Moreover, integrity dialogs are conducted every year.
In this initiative managers have an opportunity to
1 This figure includes Siemens Healthineers employees.
discuss current compliance issues with their teams as
well 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 Compliance

Training programs are planned and initiated according Both business partners and suppliers are required to
to 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, and carried out at the business partners’ premises by the
the 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

A comprehensive train-the-trainer concept equips Early detection of warning signs of

trainers with the educational and content-related skills money 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 was with reliable customers, business partners, and other
implemented virtually again fiscal 2021. third parties. That’s why we perform risk-based checks
of our business counterparts’ identity and financial
Collaborations with business partners backgrounds as well as the origin of their payments in
Under certain circumstances, Siemens can be held order 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 hold
resellers, and consortium partners), whom we refer awareness trainings all over the world. Where
to 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 business triggering warning signals were revised and further
partners. They must be carefully selected by the detailed in fiscal 2021.
responsible operational unit and must undergo a risk-
based compliance due diligence process. This process Compliance indicators and
needs to be adequately monitored for the duration whistle-blowing
of the business relationship; in other words, the need At Siemens, we offer all employees and external third
for the relationship and performance, taking into parties protected channels through which they can
account 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 our
tools for this purpose that are continuously refined compliance organization and are monitored. Possible
to cover risks that arise. misconduct can also be reported directly to the
compliance officers in the individual business units
Decisions about engaging a business partner are or to management. Our employees make use of these
transparent and risk-oriented, and are based on the reporting channels regularly. In fiscal 2021,
most recent compliance due diligence procedures. 394 compliance cases were reported that required
Appropriate remediation measures are initiated further inquiry or investigation. We believe that the
depending on the risk classification of the business increase in cases from 332 in fiscal 2020 is within a
relationship and the risks identified. normal fluctuation range when taking the COVID-19

SIEMENS SUSTAINABILIT Y REPORT 2021 53

3.1 Compliance

pandemic into account. The total number of Collective Action and the ­
disciplinary measures for compliance violations in Siemens Integrity Initiative
fiscal 2021 was 121 (188 in fiscal 2020). 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 compliance global Siemens Integrity Initiative earmarks more
cases reported in the same period. Frequently, than US$100 million to support organizations and
disciplinary action isn’t taken in the year in which the projects that combat corruption and fraud through
underlying 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 business
disciplinary actions or none at all. environment, can demonstrate objective and
measurable results, and have the potential to be
Compliance 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 carefully reviewed the projects, presented them to

1 Continuing and discontinued operations

the Siemens Steering Committee for approval, and
2 Includes loss of variable and voluntary compensation components, transfer, then introduced them to the World Bank for what’s
and suspension
known as the “non-veto” process and to the European
We believe that the evidence demonstrates that our 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, and projects that will be funded for three years beginning
our wide range of different geographic regions, we July 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 future

charges of corruption, antitrust violations, and other
violations of the law can be found in COMBINED
US$120 million in support for
MANAGEMENT REPORT CHAPTER 8.3.4 COMPLIANCE RISK, AND
85 projects in 50 countries
NOTE 22 IN NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 our
annual report on the Siemens Integrity Initiative.
[Link]/INTEGRIT Y-­I NITIATIVE

SIEMENS SUSTAINABILIT Y REPORT 2021 54

3.1 Compliance

The Siemens Integrity Initiative constitutes one We’ll continue our development of a compliance
element of a 2009 settlement between Siemens and system tailored to the individual risks and
the World Bank and another 2013 settlement between opportunities of our businesses and our
Siemens and the European Investment Bank (EIB). organizational structure at Siemens. In our global
employee survey in fiscal 2022, we’ll again solicit
Results and progress in fiscal 2021 our employees’ feedback on integrity at Siemens in
In fiscal 2021, we again made significant progress order to be able to derive appropriate measures.
with our Siemens compliance system, including:

“Ethical management of the

→ The global BCGs training was updated to
emphasize the importance of integrity and company is very important to us.
compliance in the company and among its That’s why we’re committed to a
employees. The training’s content, formats, and collective approach and support
execution were adapted to current conditions
international initiatives to
and further developed.
→ We formed global teams of compliance experts combat corruption.”
CEO Roland Busch
to focus on defined topics. This is intended to
address major challenges on a cross-organization-
al 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 and
tapping into all of Siemens’ knowledge. Within monitor their progress.
these networks, the ongoing monitoring of [Link]/INTEGRIT Y-­I NITIATIVE

compliance risks was supplemented with a glob-

al group of experts who will help detect risks from
new digital business models at an early stage and
define proposals to mitigate those risks.

Outlook for fiscal 2022

Our compliance priorities described above will
continue to guide our work and will be further
detailed with focus areas for fiscal 2022. Our
paramount goal is to provide Siemens with the
highest level of certainty in matters of compliance
and 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

3.2 Human rights

3.2

Human rights

– Respect for human rights remains in focus at taken to counter them. In these efforts, we are guided
all times by international standards that help companies
– Commitment to compliance with interna­ define their approaches to human rights and
tional standards continuously optimize them. These standards include
– Inclusion of all key partners the United Nations Guiding Principles on Business and
Human 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 diligence
committed to safeguarding and respecting human process that is able to proactively identify, assess, and
rights in every stage of the value chain. We understand prevent any human rights violations to protect those
this to be a key element of acting with integrity and affected or at least mitigate their impacts as much as
responsible corporate governance. Our holistic possible.
approach to respecting human rights is not limited to
our 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 in
customers. 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 the
identified risks responsibly. fundamental principles and rules that apply to our
actions 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 of
human rights in the areas of G (Governance), E (Ethics), Siemens is committed to complying with the
and E (Equity). following international standards and also expects
its business partners to observe the following
Commitment to human rights and guidelines, where applicable:
international standards
Our human rights principles are firmly grounded in → The International Bill of Human Rights,
the United Nations 2030 Agenda for Sustainable consisting of:
Development. Siemens believes that the · the Universal Declaration of Human Rights,
corresponding Sustainability Development Goals · the International Covenant on Civil and Political
(SDGs) can only be fully achieved if any potentially Rights, and
negative impacts within the value chains are · the International Covenant on Economic, Social
examined in greater detail and effective action is and Cultural Rights.

SIEMENS SUSTAINABILIT Y REPORT 2021 56

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 the and Managing Board at a regular basis and also
International 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 the
in 2011), company’s worldwide processes and business
→ The UN Guiding Principles on Business and decisions. To this end, the two departments have
Human Rights, and developed a framework program aimed at ensuring
→ The Ten Principles of the United Nations Global the respect for human rights and agreed to
Compact. successively realize improvement potential across all
program dimensions. In fiscal 2021, these efforts
Beyond that, Siemens AG reaffirmed its commitment were focused on capacity building, awareness
to workers’ fundamental rights in an international creation and the implementation of a comprehensive
framework agreement signed by trade unions and due diligence approach in customer-related business.
employee representatives in 2012. SIEMENS’ HUMAN RIGHTS FRAMEWORK

The following fundamental rights are among those Continuous improvement measures
enshrined in the abovementioned agreements and We view living up to our responsibility for human
guidelines and in our Business Conduct Guidelines: rights as a continuous improvement process. Siemens
employs risk management programs and procedures
→ No discrimination, respect for the principles of across its value chain to systematically identify and
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 our
guiding principles. Siemens suppliers commit to
Management and responsibilities uphold the Siemens Group Code of Conduct for
Our actions in support of respect for human rights Suppliers and Third Party Intermediaries and Business
and our commitment to implementing the UN Partners, which affirms the fundamental human
Guiding Principles on Business and Human Rights are rights of our suppliers’ employees.
monitored by the Siemens Managing Board and the
Siemens 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
Periodic review for Siemens periodically identified?

II. Transactional human rights due diligence process

Risk management
Risk identification Risk assessment
(incl. monitoring)
How are risks in projects How are risks
What are effective
identified? assessed?
mitigation measures?

Grievance mechanism How are effective complaint channels provided?

III. Overarching pillars

Awareness How is awareness about human rights issues ensured at Siemens?

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

Policy and circulars circulars?

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 to
potential 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
VALUE CHAIN
suppliers, internal supplier audits, and external

SIEMENS 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 covered
by collective agreements. Raises for those outside
Human rights in the workplace collective agreements are also handled without
The BCGs 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. Siemens of 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 negotiates
and equal treatment apply without restriction. wages with unions in free collective bargaining
negotiations.
The principles of diversity, equal opportunity, and
inclusion are all embedded in our business goals and For further information, please see the chapters:
processes. We acknowledge that we must ourselves OCCUPATIONAL HEALTH AND SAFET Y, WORKING AT SIEMENS

effect the transformation we want and remain with a focus on DIVERSIT Y and PRODUCT STEWARDHIP.

committed to creating a more equitable, more

sustainable future. We believe that movements such Human rights in the case of business
as “Black Lives Matter” and changes are needed to decisions 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 of
launched 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.
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 what
among suppliers, Siemens, Siemens Healthineers, responsibility companies bear for the business
and the Siemens Foundation together have donated activities of their customers. We recognize this and
more than US$ 8 million to historically black colleges take action to ensure that our risk due diligence
and universities and to organizations that improve
access to COVID-19 vaccines in minority communities.
 
MATERIAL HUMAN RIGHTS RISK ISSUES WITHIN OUR
VALUE CHAIN

The early detection of

­environmental 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 to → Our experience in dealing with critical/
assess possible environmental and social risks in controversial projects,
our operational business on an even more → Expertise supplied by external human rights
comprehensive basis and at an earlier stage. experts, and
Material human rights risks within our value chain, → Insights from dialogs with investors, ­Siemens
including in the business relationships of our 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, we
have successfully rolled out the new digital Risk Due
Diligence Tool (ESG Radar) in the area of governance
Material human rights risk issues within on the basis of the abovementioned material risk
our value chain fields. This will help Siemens identify and assess

Human rights risk issues in the

possible environmental and social risks, and the
supply chain associated human rights and reputational risks, earlier
› Fair labor conditions
› Freedom of assembly and on an even more comprehensive basis in the case
› Discrimination of business decisions made by customers. The tool
› Forced labor
› Child labor can be used to check over 60 different risk indicators
› Health and safety for individual business activities. Together with
external human rights experts, targeted mitigation
Human rights risk issues in the
workplace measures are defined depending on how pronounced
› Health and safety the risk profile is and what kind of influence ­Siemens
› Fair labor conditions
› Discrimination has. The Risk Due Diligence Tool will be continually
refined and expanded to cover critical human rights
Human rights risk issues in the case of issues.
business decisions by customers
› Business-specific environmental
and social risks 1 As part of our responsible business conduct practices,
› Country-specific risks
› Impact on local communities we also look at counterpart risks. Our business
(such as indigenous population,
responsibles assume responsibility for the periodic
ethnic or religious minorities)
› Fair labor conditions risk assessment of key customers with regard to
› Modern slavery
› Discrimination environmental and social risks and their related
› Occupied territories human rights and reputation risks. The development

1 Including in the areas of coal, oil, and gas and mining, for example.
of this process is ongoing and will be finalized in
fiscal 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 of
assessments have been considered: sustainability can be fully and effectively practiced only
if they constitute a voluntary pledge based on core
→ Results of the materiality assessment in the area beliefs. Continuous skill building is a key factor in this
of human rights from fiscal 2019. We conducted regard. Our activities in this area are geared toward
an 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, and and tailored skill-building activities for global and
our 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” and Networks and coalitions
“Siemens Group Code of Conduct for Suppliers and A 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 well come 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 of
shared action. After all, we firmly believe that we can
A new, global web-based training program for achieve faster progress by concerted action than by
environmental, social, and human rights due diligence acting 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 group on Human Rights (GBI). This initiative is one of the
consisting of senior managers, salespeople, and risk leading international network initiatives in the area
management professionals. In total, 31,000 employees of 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
fiscal 2021. in the European Business and Human Rights Peer
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 modern groups of econsense 1 in the areas of business and
slavery, occupied territories, and effective grievance human 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 enable tanks, we also interact regularly with external human
a regular dialog across businesses, countries, and rights 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,
and NGOs.
Grievance mechanism and channels
Siemens offers all our people an external third parties 1 econsense is a Forum for Sustainable Development of German
protected channels for reporting violations of external Business.

and internal rules. Reports issued by these means are

forwarded to our Compliance organization and
followed up. The same channels can also be used to
report human rights violations to the company.
COMPLIANCE [Link]/HUMANRIGHTS

SIEMENS SUSTAINABILIT Y REPORT 2021 61

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 “supply
of the holistic approach summarized as chain makes a significant impact in promoting human
“Prevent – Detect – Respond” rights, fair labor practices, environmental progress,
– Evaluation of suppliers on the basis of self- and anti-corruption policies.” 1 Moreover, improved
assessments and on-site audits waste management and use of materials based on
– Focus on human rights: climate protection, the principles of a circular economy can reduce
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 wide-

ranging: 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 the
environment in our procurement markets. Sustainable Responsibility for the worldwide
business practices are therefore an integral part of 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 with to minimize risk.
our sustainability requirements, which are
summarized in the S
­ iemens Group Code of Conduct We expect all suppliers to make a firm commitment to
for Suppliers and Third Party Intermediaries. The our Siemens Group Code of Conduct for Suppliers and
obligation of suppliers to observe our Code of Third Party Intermediaries (“Code”): The requirements
Conduct is an essential basis for fulfilling the set 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 the
with about 63,000 suppliers in around 145 countries. Siemens Business Conduct Guidelines (BCGs), which set
There is great variation in the overall conditions that out the basic principles of sustainability for the entire
apply across these countries. As a result, strict company.
compliance with the global sustainability
requirements that apply to our suppliers is a major Among 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, and
environmental protection, and pursue a zero-tolerance

1 [Link]

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 of based 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, and
more. We base these assessments on information
The Code also includes provisions on preventing money from 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 specific
suppliers 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 and outlined above. These reviews range from supplier
qualification. On this basis, we can quickly identify self-assessments of their own sustainability practices
and counteract any sustainability risks also when to sustainability audits conducted on-site by external
admitting new suppliers. This may apply to suppliers auditors.
with the following risk characteristics:
Number of audits
→ Locations in high-risk countries 4,267
Sustainability
→ Products according to the requirements for
self-assessments
responsible 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 319
On-site supplier 394
RoHS (Restriction of the Use of Certain Hazardous
quality audits1 Sustainability
Substances in Electrical and Electronic Equipment) audits2
→ General aspects of supplier quality management
(including sustainability-related topics)
1 Conducted by Siemens auditors with integrated sustainability questions.
→ Plant engineering (risks associated with
2 Conducted by external auditors.
construction contractors)

To identify these risk characteristics, we categorize Self-assessments

our suppliers according to several factors: Corporate Responsibility Self-Assessments (CRSAs) are
part of the supplier qualification process, which is
→ Purchased material and service fields are assigned reviewed regularly and updated as needed to take new
to the abovementioned risk groups as part of our standards 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., specific process, while existing suppliers are reassessed every
contract clauses, obtaining proof, possibly three years.
flagging 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 supplier of the Code. We conducted 319 on-site audits
pool from around 65,000 in 2020 to 63,000 in the worldwide in fiscal 2021, that being about 15 % less
past fiscal year. On the other hand, the number of than in the previous year.
agreed-upon improvement measures increased in
fiscal 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 of Americas 89 77
“Legal compliance/prohibition of corruption and Asia, 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
Fiscal year are the most effective method of assessing the
(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
Americas 555 936 providers and serve as a control mechanism for
Asia, Australia 2,207 2,384 suppliers with a high risk assessment.
Total 4,267 4,759
External sustainability audits (ESA)
Fiscal year
Fiscal year
Agreed-upon improvement (number) ³ 2021 2020
(Number) 2021 2020
Legal Compliance/prohibition of
corruption and bribery 1,152 1,085 Europe, C.I.S.,¹ Africa, Middle East 123 65

Respect for the basic human rights of Americas 44 19

773 655
employees Asia, Australia 227 185
Prohibition of child labor 149 144 Total 394 2
269
Health and safety of employees 705 511
Fiscal year
Environmental Protection 680 754
Agreed-upon improvement measures (number) 3
2021 2020
Supply Chain 145 130
Legal Compliance/prohibition of corruption
Total 3,604 3,279
and bribery 1,141 937
1 Self-assessments completed mainly by suppliers from non-OECD countries with Respect for the basic human rights of
a purchasing volume of >€50,000 per year. Questionnaires that were initiated, 2,446 1,877
employees
­completed, and concluded in the reporting period.
2 Commonwealth of Independent States. Prohibition of child labor 89 95
3 Improvement measures agreed with suppliers relate either to actual deviations from
the Siemens Group Code of Conduct for Suppliers or to structural improvements in Health and safety of employees 2,430 2,064
management systems and the lack of specific processes and guidelines implemen-
ted by the supplier.
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 in
management 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 to Siemens is working hard to prevent the use of
conduct more external sustainability audits than minerals 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 we from 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 the
means 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 a
by our audit provider. Those audit reports fully meet uniform, company-wide standard for supply chain
the Siemens expectations and were given to us with management in this area. Our approach to these
approval of the audited companies. topics is geared toward the risk-based requirements
of the OECD’s Due Diligence Guidance. To determine
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 plants
audit service providers. It is also possible for the involved. Siemens is a member of the Responsible
responsible purchasing departments at Siemens to Minerals Initiative (RMI), an organization of more
agree on a series of optimization measures with the than 400 industrial companies that provides auditing
supplier. During this process, we remain committed programs for smelting.
to our partnerships with our suppliers and help them
to 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
need about smelters in our supply chain that are
Our central warning message process is intended to associated with the production of tin, tantalum,
ensure even faster, more efficient responses to tungsten, and gold (3TG).
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 particular active member of the Responsible Minerals Assurance
need for action Process and urges the decision-makers of smelters
Three focus topics play an important role in responsible that 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. These move 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: [Link]

emissions in our supply chain, and ensuring health

and safety, especially on project construction sites. Based on the European Commission’s risk definition
relating to “armed conflict,” “regions with weak or no
governance,” 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 can
applies its established risk assessment system to be sustainably reduced. In a second part, the
evaluate 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 process This 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 a
country-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
[Link]/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 the
As part of the Siemens Carbon Neutral Program and calculated 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 and
implemented with an external partner, we prepare the CWA is provided at [Link]/­C ARBON-

analyses based on economic data to model the CO2 SUPPLIERS .

footprint for each one of our suppliers.

In fiscal 2021, we contacted 7,100 suppliers and
So, in 2021 the supply chain emissions for our by the end of this fiscal year we had received more
Siemens DEGREE ambition (Siemens without SHS) than 1,800 answers reporting the efforts to
were reduced by 0.6 % to 8,048 kt CO2e since – for reducing 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
than 2 %. Enforcing occupational safety at construction
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
we contacted and surveyed more than services for Siemens. Before these contractors can
9,000 suppliers in over 90 countries and then be added to our supplier pool and used, EHS experts
worked extensively on a process for identifying our review 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 categories and update our review methodology.
“Carbon Web Assessment (CWA),” which shows our
suppliers the highest CO2 emitters in their

SIEMENS SUSTAINABILIT Y REPORT 2021 66

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 compliance revolution, and it has successfully addressed the issue by
system creating a centralized cybersecurity ecosystem. The
company has developed a holistic approach to
cybersecurity that helps to provide the best possible
Cybersecurity rapidly gaining in protection for its IT1 and OT2 infrastructure as well as its
importance products, solutions, and services.
Digitalization is involved in so many aspects of our
lives. Hospitals, factories, power plants, power grids, Our new DEGREE framework addresses the topic of
water systems, intelligent infrastructures, connected cybersecurity under “E” for Ethics. That commitment is
mobility – digital systems have become indispensable further reinforced by Siemens’ participation in founding
in many sectors of the economy. Wherever large the “Charter of Trust” initiative to protect data and
volumes 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 more
companies 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
recognition from sustainability ratings and rankings. The
It’s easy to see why secure digital systems are so DJSI, for example, has recognized us as a leading
necessary: The Internet of Things (IoT) is one of the company relative to our peers.
driving technologies behind the digitalization of
industry, 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, and
An approach that covers all levels simultaneously – maintain a dialog with other companies. We want to
from the operational level to the field level and from continuously improve resilience through clear, holistic
access control to copy protection – is absolutely accountability and ownership. We rely on a culture of
essential to keeping industrial facilities
comprehensively safe from internal and external 1 Information technology
2 
Operational technology

SIEMENS SUSTAINABILIT Y REPORT 2021 67

3.4 Cybersecurity and data privacy

ownership for all aspects of cybersecurity. All of Energy and Siemens Healthineers to participate in
which 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 directly
internal 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 to
solutions 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 and
Business, 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
assessments 2
Responsibilities for cybersecurity clearly → Mandatory global cybersecurity awareness
defined measures and annual IT cybersecurity global
awareness trainings
→ Coordinating the joint bodies (such as the CSB),
tasks, and topics by central and local cybersecurity

1,300
teams in the businesses and countries
Approximately → Strengthening cybersecurity at a global level in
experts for Cybersecurity different industries beyond company boundaries
work for Siemens through the activities of the Charter of Trust: 3 for
example, 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 → To protect Siemens’ infrastructure and products
and its affiliated companies in order to address from cyberattack
security issues and establish cybersecurity → To monitor the threat landscape and initiate the
requirements and recommendations – which the necessary measures to ensure cyber resilience
company’s various units then define more specifically → To identify, assess, and call attention to
for themselves. Collaboration agreements have also cybersecurity risks and actively manage them
enabled the Chief Cybersecurity Officers at Siemens

1 [Link] 2 [Link]
services/cybersecurity/[Link]
3 [Link]

SIEMENS SUSTAINABILIT Y REPORT 2021 68

3.4 Cybersecurity and data privacy

→ To apply country-specific laws and regulations The Siemens cybersecurity organization has also
that affect our products, solutions, and taken 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 reduce
these 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 our most critical assets by developing and
customers 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.
→ The paramount goal of Enhanced Microsoft
Siemens provides cybersecurity training for its Security (EMS) was to make the S
­iemens
employees every year. In 2020, 87 % of all employees cybersecurity organization a cybersecurity leader
took part in the online cybersecurity training to by 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 the applies EMS findings to factories, business IT, and
participation rate was 79 % on the reporting date. products. The program is based on the principle
However, we assume that we will at least achieve the of “never trust, always verify” and aims to check
participation rate of the previous year. each individual connection in real time and to
permit only trustworthy communication.
Cybersecurity insurance and risk analysis
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 an on it and set up new initiatives and programs to
international call for bids for insurance, the currently ensure that we keep adapting and improving.
insurable cyber-risks were transferred to a consortium
of 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 require
confirmation 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 CERT secures our internal infrastructure,
Siemens products and solutions continuously monitors the cyberthreat landscape for
Siemens products, solutions, and services contain a us, and evaluates the potential impact on the
significant amount of software and IT-related company. In the event of a security incident, our
components, which in many cases are used in the experts analyze the cause and initiate counter­
context of critical infrastructures and could become measures to minimize harmful impact. Appropriate
more exposed to cyberthreats. Regulatory and interest groups (and the authorities, if required) are
customer-specific security requirements are also informed.
increasing 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 guidance Siemens 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 the
the business units. This is managed, among other lookout 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. Under
maturity model, which shows the extent to which the the “Vilocify” 2 brand, this monitoring also lays the
established business and design processes are being groundwork for external activities that offer the
expanded and constantly improved with regard to service to a broader customer base. New security
security activities and requirements. The maturity recommendations are published each month in
model covers several subject areas, which are tandem with Microsoft Patch Day. Its goal of is to
measured at various levels and is adaptable to establish transparency, inspire trust, and improve
respective business. Evaluation is performed annually planning reliability for customers, who appreciate the
at the organizational level, the results are discussed regular Siemens Security Advisory Day. We also work
with the unit management, and corresponding with external researchers and partners to monitor
improvement programs are initiated. Continuous and improve our services.
improvement and continuous learning are
fundamental 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 Team

2 [Link]

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3.4 Cybersecurity and data privacy

Protection of personal data Employees committed to data protection

For Siemens, protecting the personal data of our and regular training
customers, our people, and partners is an expression Continuously keeping up with data protection
of 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
increasingly important success factor. That’s why regulations such as our Business Conduct Guidelines
processing personal data in compliance with require every employee to comply with data
applicable data protection laws, including the General protection requirements.
Data Protection Regulation (GDPR), is of utmost
importance to Siemens. Our DEGREE framework Siemens employees also receive regular trainings on
prioritizes handling data carefully – under “E” for how to handle personal data that are tailored to
“Ethics.” specific functions and target groups. In fiscal 2021,
Siemens developed a new web-based data
Implementing data privacy requirements protection training program composed of an
within the Group: The data privacy “Essentials” level that’s mandatory for all employees
management system who process personal data as part of their job, and
To put data privacy into action throughout the Group, specialized “Nuggets” designed for specific fields and
Siemens has made it an integral part of the Siemens target groups.
compliance system. The company has put a data
privacy 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 processed covered by binding internal data protection
transparently for all concerned in compliance with regulations: 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. With
The data privacy management system is composed the BCR, Siemens Group companies around the world
of the following components that will effectively have an obligation to process personal data from data
protect the personal data of our customers, business subjects in the European Union in accordance with
partners, 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 web­
Data privacy management system ensures
sites and digital products and solutions include data
compliance with data protection require­
privacy policy statements that inform users about
ments throughout all business processes
processing steps and data subject rights. The
applicable data protection law focuses on protecting
the people whose data is processed and grants them
comprehensive data protection rights (including the
right of access to processed personal data). To comply,
Siemens has introduced a global process that provides
a centralized hub where data subjects can assert their
rights and get answers.

SIEMENS SUSTAINABILIT Y REPORT 2021 71

3.4 Cybersecurity and data privacy

Data protection among our suppliers and Inspection

partners The requirements and measures described in this
A holistic approach to data protection only works if section are subject to regular verification, and
data protection requirements are consistently Siemens conducts risk-based data protection audits
observed and implemented within the Group and also of 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 in
audit and are required by contract to adhere to data compliance with the data protection laws, secure data
protection standards. exchanges between Siemens IT systems, security of
systems where sensitive personal data is processed
Data protection in our products and (for example, the IT infrastructure for company
solutions (privacy by design) medical offices), and defending against phishing and
Siemens wants to ensure that its products and similar attacks.
solutions can be used in compliance with all relevant
data 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 data
transparency, informational self-determination, data protection violation. This is the only way to ensure
minimization, and data security are already applied that these violations are terminated swiftly and that
when functions and services are developed, and that all involved parties both in-house and external (such
they’re incorporated into the design. This approach as 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 Process
that uses central reporting channels and includes the
Siemens is well aware that using its products and relevant stakeholders.
services may lead customers to entrust Siemens with
processing one of their most precious assets: their
data. If Siemens processes personal data for a
customer, it does so under contractual terms that
govern 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 of
Processing Activities. This register serves as a place
to evaluate whether data protection law permits a
given processing activity and to document compliance
with the applicable laws.

SIEMENS SUSTAINABILIT Y REPORT 2021 72

 Page 73 – 92

Environment
Conservation of nature
and resources

Decarbonization Resource efficiency

support the 1.5°C target to fight achieve circularity and
global 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 → Natural resource decoupling through increased
reduction by 2030 purchase of secondary materials for metals and
resins
Additional topics: → Circularity through waste-to-landfill reduction of
→ 
Joining the EP100, EV100, and RE100 50 % by 2025 and toward zero landfill waste by
initiative 2
2030
→ Portfolio to support customers in climate
protection Additional topics:
→ 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 use
recycling of total waste
of renewable energy (RE). → 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 and responsibility 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 and develops environmental protection measures and
conversion of raw materials, preproduction in the programs and, together with our Sustainability Board,
supply chain, our own manufacturing activities, our advises the Managing Board member responsible for
product development, use by customers, reuse and environmental protection. The EHS experts and the
disposal, and utilization of transport services. It is sustainability officers in our business areas help line
primarily the result of energy utilization, land use, the managers implement our environmental guidelines
emission of airborne pollutants, the emission of and programs. The company’s environmental risks
greenhouse gases, and the generation of solid and and 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
of the company’s businesses and regional
Our main challenges include the reduction of the organizations as well as experts in corporate
environmental impact of product utilization − a governance, 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 and insurance. Operational environmental
cycles, reparability, reusability, and reliability as well management is based on the ISO 14001 and
as 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
implemented via our own binding standard.
In managing the environmental impact of our
DEGREE defines the framework for ambitious
business activities, we go beyond mere compliance
environmental programs.
with the applicable statutory requirements. We
reconcile economic, environmental, and social Our environmental programs are embedded in our
requirements 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 Based
and active management − often in collaboration with Targets Initiative, we are supporting the achievement
our business partners − of the environmental impact of the 1.5-degree Celsius target set by the Paris
of 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 of
is appointed to ensure their implementation. The business processes.

SIEMENS SUSTAINABILIT Y REPORT 2021 74

Holistic environmental protection

Eco Efficiency @ Siemens

Responsible Product Efficient Own

Development Clean Supply Chain Operations

Products and solutions are at the core A clean supply chain is central on the Efficiently managing our own
of business. Evaluating our portfolio path to decoupling natural resource production sites and offices
and applying an eco-design approach use. Which is why we will be sourcing continues to be key in our
to relevant product families supports more secondary materials and take environmental approach, particularly
us in selling eco-efficient products continuous action to initiate the by enhancing waste management
and solutions. replacement of regulated substances practices and using clean energy
according to IEC 62474. effectively.

In joining the Science Based Targets Initiative, waste and promoting the elimination of waste
­Siemens has committed itself to further reducing all materials. Our products’ environmental aspects will
greenhouse gas emissions generated along the entire also be included in our customer feedback system in
value chain. Our goal is to reduce the CO2 emissions order to continuously generate and implement
from our business operations to the point that our feedback regarding their Robust Eco Design. Launched
business segments’ contribution is compatible with this fiscal year, Eco Efficiency @ Siemens will run until
the 1.5-degree Celsius target in terms of the 2030. Time-­limited environmental initiatives − such
recognized climate models. Measures at our business as projects in the areas of water, biodiversity, and
operations − 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 population
achievement. 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, at
the very latest, it has been obvious that the creation
Eco Efficiency @ Siemens focuses on Robust Eco of a greenhouse-gas-neutral planet will require a
Design − the design of products, services, and fundamental structural transformation of the market
solutions to meet strict standards of environmental economy. The term “circular economy” defines a
compatibility. 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 value
materials 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 the for Resource Efficiency in our DEGREE framework as
share of renewable energies is now high and will “the achievement of a circular economy and
increase further, we aim to additionally increase dematerialization”: we want to emphasize the
energy 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 innovative
and 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 the
limiting 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 use
by 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 are
from business operations, collaboration with to boost energy efficiency and promote digitalization.
suppliers, and a portfolio that helps our CO2 savings are calculated and reported for the
customers 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 scientists of our DEGREE framework for sustainability at S
­ iemens.
say must be done well before the end of the
21st century. We will achieve this goal with the aid of Transparency on greenhouse gas
an appropriate governance structure, including emissions
strategy and risk management, and by acting in We report our greenhouse gas emissions on the basis
accordance with the recommendations of the Task of the Greenhouse Gas Protocol corporate standard
Force on Climate-related Financial Disclosures (TCFD). published by the World Resources Institute (WRI) and
In addition, our products and solutions make an the World Business Council for Sustainable
important contribution to decarbonization by our Development (WBCSD). Direct greenhouse gas
customers, while also presenting a business emissions (Scope 1) arise from sources that are in the
opportunity for ­Siemens. company’s possession or under its control. Indirect
greenhouse gas emissions (Scope 2) arise from the
We have strengthened our climate protection strategy use of purchased electricity and district heating. Since
with our validated 1.5 degree Celsius Science Based fiscal 2016, we have also reported upstream Scope 3
Target and by joining the initiatives RE100 (COMPLETE emissions, arising within our supply chain, from
CONVERSION TO GREEN ELECTRICIT Y), EV100 (CONVERSION sources such as business travel, capital goods, fuels,
OF THE VEHICLE FLEET TO ELECTRIC VEHICLES), and EP100 and energy-relevant activities and shipments. Scope 3
(NET-­Z ERO EMISSION BUILDINGS). As key elements of our emissions 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 is model based on our volume of purchased goods and
embedded in the Long-term Incentive (LTI) services. We are reporting downstream Scope 3
compensation component of the senior emissions, including those arising from the use of our
management of Siemens (excluding SHS), and our products, our investments, employee commuting,
business units are charged with the responsibility of and work-from-home activities, for the first time
reducing their respective emissions. REFERENCE TO in 2021.
SUSTAINABILIT Y IN MANAGEMENT COMPENSATION

SIEMENS 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
Based Target and, on the other hand, will be continued
(in 1,000 metric tons of CO2 equivalents) 2021 2020 1
under the title “Net Zero 2030” for our business
Scope 1 386 424
operations as part of our DEGREE framework for
Scope 2 2 208 253
sustainability. By committing to the Science Based
Sum Scope 1 and 2 595 678
Targets, we have pledged to reduce the CO2 emissions
Scope 3
from our own business operations by 50 % from 2019
Purchases goods & services 8,813 8,607
by the year 2030. We will then offset the remaining
Capital goods 381 419
CO2 emissions with high-quality CO2 certificates to
Fuel and energy-related activities 263 282
achieve our “Net Zero 2030” target. At Siemens
Waste in operations 24 28
(excluding SHS), the integration of CO2 reduction into
Transportation upstream 797 740
the Long-term Incentive components of management
Business travel 63 126
compensation strengthens the responsibility of our
Employee Commuting 3 94 94
operating business units. We have also issued an
Sum Scope 3 Upstream 10,435 10,296
internal guideline defining the first parameters for
Use of sold products 453,350 483,813
the subsequently necessary procurement of CO2
Investments 5,486 13,582
certificates with an emphasis on high-quality CO2
Sum Scope 3 downstream 458,836 497,395
certificates meeting established standards and
Total Scope 3 469,271 507,691
making 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 to
the Sustainable Development Goals, including those
the chapter REPORTING METHOD. that are not related to climate protection.
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.
By joining the RE100, we have pledged to convert our
electricity consumption completely to electricity from
Climate protection targets within the renewable sources by the year 2030 at the latest.
value chain Green 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 have is 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 the
emissions 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 Use of renewable energy

neutrality Even before we joined the RE100 Initiative, we
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 %
footprint 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-wide
­Siemens Energy), thus achieving our intermediate purchased electricity consisted of electricity from
target last year. renewable sources. Thus, we reduced emissions by a
total 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 tons
of 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 to Indonesia, Peru, and Ecuador, the complete
our SBTi commitment. This reduction is due primarily conversion to green electricity is not yet possible at
to the continued implementation of our energy this time. Through our membership in RE100, we are
procurement policies, as well as a number of other attempting to have these regulations amended to
measures and initiatives, which are briefly described make this conversion possible.
in the following.
In purchasing green electricity, we follow the
purchasing guidelines of the WWF’s “Next Generation
Emission reduction as part of the “Net Zero 2030”
Green Electricity” initiative.
program
(in kt CO2 for Siemens AG)1
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, the
2021
new Siemens campus in Erlangen derives the majority
– 36 %3
of the green energy it requires from wind farms,
which will lose access to subsidies under the German
926 2030

0 Renewable Energy Act (EEG) starting in 2021.

701
595

The use of biogas is another component of our

decarbonization strategy. By using biogas, we have
been able to reduce our annual emissions by
FY FY FY FY
2019 2 2020 2021 2030 22.5 thousand metric tons of CO2 compared to the
use of conventional natural gas.
1 As reported in respective fiscal year.
2 As reported in FY 2020.
3 Compared to FY 2019.

SIEMENS SUSTAINABILIT Y REPORT 2021 78

4.1 Climate action

Reduction of motor vehicle fleet We have issued a new guideline defining principles
emissions for the CO2-neutral operation of new buildings and
We are working to reduce the emissions from our setting maximum permissible emissions in the supply
motor vehicle fleet, which comprises approximately chain and construction activities.
43,000 vehicles, and are striving to electrify it
completely by the year 2030 as part of our EV100 In 2021, the Nuremberg Chamber of Industry and
commitment. 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 and only 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 sustainability
of exclusively electric vehicles to 656 and the number concept with extensive employee offerings and
of hybrid vehicles to 2,719. Thus, currently around mobility 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 this of 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,
which will generate enough electricity to power
Reduction of building emissions 110 households or 240 electric cars for a full year.
With regard to building emissions, we want to own
or lease only buildings with no net CO2 emissions by Under our New Normal Working Model, we
the year 2030 as part of our EP100 pledge. We intend permanently allow employees to work remotely for
to 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 our
modernizing existing buildings, and leasing office buildings and from daily commutes, while increasing
space with the lowest possible emissions. When all the emissions generated by people working from
other measures have been exhausted, we will home. We calculate the total emissions generated in
purchase high-quality CO2 certificates to offset the Category 3.7 “Employee Commuting” as 94 thousand
remaining emissions. Currently, 32 Siemens locations metric tons of CO2 and the emissions caused by
have 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 our
In the United Kingdom and Brazil, we currently use products will continuously decrease over time due to
an internal CO2 price to manage our decarbonization new product generations as well as the continuous
activities. In the United Kingdom, we charged a price conversion 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 the
were employed to support decarbonization activities operations of our customers during their anticipated
in the area of heating systems, including the useful 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, the to be generated over the entire assumed useful life
price will rise to GBP 40 per metric ton in order to must be reported in the year of sale according to the
support the electrification of the motor vehicle fleet. Greenhouse Gas Protocol. We calculate these
In Brazil, USD 40 per metric ton of CO2 is charged and emissions 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 have
pledged to reduce the Scope 3 emissions generated
Upstream emissions during the use phase of our products (Scope 3.11
Our upstream emissions are approximately “Use Phase Emissions”) by 15 % from 2019 by the
10.4 million metric tons of CO2 equivalents (million year 2030.
metric tons CO2e) and are therefore considerably
higher than the emissions in our own business Our electric motors, which are highly efficient and
operations. This is due to the fact that the operations have very long useful lives, are the main source of
in 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 instead
emissions, we have set the goal for Siemens of 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 by project “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. SUPPLY CHAIN. approx. 330 metric tons of CO2 per year when green
hydrogen is used.
CO2 emissions arising in the use phase of
our products In manufacturing operations, the use of “SIMATIC
We offer our customers highly efficient and long-lived Energy Manager” helps our customers visualize their
products that fulfill their function for a long period of energy consumption, assess potential energy efficiency
time and are especially dependent on electricity for savings, and compare key performance indicators
their operation due to our strategic focus on across production facilities and factories. As a result,
electrification, automation, and digitalization. both energy costs and CO2 emissions can be reduced.

SIEMENS SUSTAINABILIT Y REPORT 2021 80

4.1 Climate action

Portfolio elements mitigate adverse environmental

Emissions from the value chain and savings
impacts and reduce emissions of CO2 and other
by the Environmental Portfolio
(in millions of metric tons of CO2)
greenhouse gases that are mainly responsible for
458.8 climate change (CO2 emissions).

The Environmental Portfolio technologies of Siemens

that make the biggest contribution to the overall
∼ 42x reduction of our customers’ CO2 emissions are
87.5 components for smart and distributed power grids,
frequency converters, rail transportation of
passengers and goods, and building technology.

0.6 11.0
10.4 The revenues generated on the Siemens Environmental
Portfolio amounted to €19.1 billion in the past fiscal
year. Thus, our Environmental Portfolio accounted for
Upstream Own Cradle to gate Use phase and Savings from
emissions operations investments Environmental 31 % of our total revenues. In addition, our newly
Portfolio1
installed Environmental Portfolio elements helped our
1  otal annual savings of products installed since 2002 by our customers and
T customers reduce their CO2 emissions by another
still in use in fiscal 2021.
8.4 million metric tons in fiscal 2021. Including all the
Environmental Portfolio elements in use by our
Siemens Environmental Portfolio for customers, we helped our customers reduce their CO2
­climate-conscious product use 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 of
systems, 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 collect
Results of the Environmental Portfolio
data on the Environmental Portfolio, such as energy
efficiency above a defined threshold value and the use Fiscal 2021
of energy from renewable sources.
Revenue generated with

Due to portfolio changes in the direction of

the Siemens Environmental
Portfolio (continuing opera-
tions, in € billion)
19.1
electrification, automation, and digitalization, not all
portfolio elements that make a positive contribution
Greenhouse gas reductions in
to decarbonization, such as our digitalization portfolio the reporting year at our
customers through elements of
and our energy-efficient electric motors, meet the
currently applied selection criteria for the
the Environmental Portfolio
newly installed in the reporting
year (continuing operations, in
8.4
millions of metric tons)
Environmental Portfolio. We are also preparing for
the introduction of the EU Taxonomy, which will
prescribe a new classification system for sustainable Greenhouse gas reductions in
the reporting year through
business activities. We therefore plan to revise our ­Environmental Portfolio

87.5
products in operation at our
Environmental Portfolio in the coming fiscal year to customers’ sites (continuing
operations, in millions of
reflect these changed framework conditions. The metric tons)

savings are calculated by comparison with reference

solutions known as baselines. The Environmental

SIEMENS SUSTAINABILIT Y REPORT 2021 81

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 the participates in committees and associations where
rising share of renewable energy, it will also lead to it 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,
→ Accelerating the decarbonization of all sectors by
Investment-related emissions means 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 efficient
and technology that make a significant contribution energy systems,
to decarbonization. Specifically, SFS provides equity → Accelerating the integration of highly flexible
and debt financing solutions to support projects with technologies such as energy storage batteries, in
a total installed capacity of more than 25,000 MW of order to integrate renewable energy while also
wind energy, 12,000 MW of solar energy, and assuring 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
into business decisions. It should be high enough
To the extent that SFS committed to finance fossil to set in motion a shift to low-carbon technologies
fuel generation projects in the past fiscal year, the in 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, and
Eco Efficiency @ Siemens environmental measures for conserving resources and promoting a
program and the DEGREE framework circular economy under the letter “R” for “Resource
– 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
– Introduction of new waste categories such as 2025 and staying on track to reduce landfill waste
materially recycled waste and landfill waste quantities further by 2030. We also want to increase
to support the improvement of the circular the percentage of waste that can be recovered or
economy recycled by 2030, and to encourage waste avoidance
in 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: Further­
also situates dematerialization and the circular important 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.
Efficiently managing global protection of
Decarbonization and dematerialization necessitate 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 measures
means consuming finite resources and generating with 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 critical management system in place. At least 185 of our
concern. For that reason, we no longer distinguish locations, 180 of which have been audited by external
between electricity and heat – we consider both auditors, now have environmental management
forms of energy together when it comes to improving systems that comply with ISO 14001. Another
efficiency. And since supplying all our locations’ 27 Siemens locations have implemented energy
energy needs from renewable sources will also have management systems compliant with ISO 50001.
implications for biodiversity and resource
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.

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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 and vehicles, we calculated the consumption of all cars
production sites, and also emissions of volatile used by employees and for services, as well as our
organic compounds (VOCs) and ozone-depleting trucks. In fiscal 2021 the company fleet consumed
substances (ODSs) at our most important sites. Our about 2.66 million gigajoules in fuel. The figure from
internal environmental standard has now the previous year was 2.53 million gigajoules. The
implemented these principles on a binding basis; increase of 5 % can be traced back to the resumption
some of the terms go above and beyond the of business travel as a consequence of the COVID-19
requirements of local law. For all our sites that have pandemic.
significant energy consumption, we have explored
the possibility of local power generation to improve Total energy consumption of Siemens without SHS in
energy efficiency. fiscal 2021 came to 7,373 million gigajoules. This
consumption will provide the basis for calculating the
Water 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, climate
change, and the evolution of flooding and Emissions of air pollutants
precipitation patterns at our sites, and we include the In addition to the greenhouse gas emissions addressed
results in our business decisions, such as when in the chapter on climate protection, Siemens also
choosing a site or adopting precautionary measures. gathers data on other emissions that result from our
business activities and that are of great significance
Determining base values for the for environmental protection. These “volatile organic
Eco Efficiency @ Siemens program in compounds” are used as solvents in paints and
fiscal 2021 adhesives, and for impregnation and surface cleaning
Following the successful conclusion of the Serve the processes. They are precursors of ground-level ozone,
Environment program, fiscal 2021 represents the and 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 of that can potentially harm the ozone layer, to ensure
primary and secondary energy represents the base compliance with the international Montreal Protocol
figure for calculating future energy efficiency. The on Substances that Deplete the Ozone Layer, as well
landfill 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
compounds by another 31 % from the previous year,
Energy use reduced to 253 metric tons. This decline can be almost
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. Total emissions of ozone-depleting
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 the
rose 22 %. Only small amounts of other fossil fuels many substances that produce ODSs).
were consumed. Our electricity consumption
decreased again slightly and is now 5,329 million We determined the quantity of nitrogen oxides in our
gigajoules. In all, this yields a reduction of 7 % in relevant thermal processes with the aid of
secondary energy. computational procedures, assuming typical

SIEMENS SUSTAINABILIT Y REPORT 2021 84

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 Total 7,133 1 6,665

Fiscal 2020 Fiscal 2021 Fiscal 2020 Fiscal 2021

1 
The extrapolation method was adjusted in fiscal year 2021 and hence
fiscal 2020 values adapted. For further information, please refer to the
chapter REPORTING METHOD.

Atmospheric pollutant emissions further subdivided into groups of waste for recycling,
Fiscal year thermal recovery, landfill, and other disposal. These
(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 tons demolition work are reported separately because
of R11 equivalent¹ 0.030 0.085
these types of waste come about independently from
1 The R11 equivalent is a measure of ozone depletion potential.
production.

combustion conditions. For fiscal 2021 this yielded Waste

a figure of 93 metric tons for our environmentally
relevant sites, compared to 94 metric tons the year Waste
(in 1,000 metric tons)
before. This figure includes nitrogen oxides that are 12
Hazardous
released in burning the fuels listed under primary
waste
energy.
28
Construction
Efficient waste management Fiscal 2021
waste
The environmental relevance of waste depends on
276
the type of waste and the method used for its disposal. Total
235
We distinguish between hazardous and non- Nonhazardous
hazardous waste, and between construction and waste
demolition waste. We modified these waste
categories this fiscal year. We can now distinguish
thermal recovery from material recycling. The groups
of hazardous and nonhazardous waste are each

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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 the
compared to the previous year. In both cases this adverse local effects of our water consumption and
decline can be almost exclusively attributed to the use. Here we take account of such factors as water
sale of gear manufacturer Flender. Construction scarcity, water pollution, 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
from fiscal 2020. internal analytical systems, Siemens assesses the risks
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
decreased from fiscal 2020 because additional
Recycling and recovery 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

93 92
84 %1
Total Total

Share of recycling and

recovery in total waste1 of our locations have implemented

1 Excluding construction waste.

a water strategy

The amount of materials recycled from waste as a Our total water consumption decreased 2 % from the
percentage 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 chemical
in the years to come. The quantity of recycled waste quality largely unchanged, so that the water can be
from fiscal 2021 will provide the base figure for this returned directly to the receiving water body or
purpose. groundwater.

The rate of recycling and thermal recovery remained 1 Without Siemens Healthineers

almost unchanged, and is now 92 %.

SIEMENS SUSTAINABILIT Y REPORT 2021 86

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 ecological
from fiscal 2020. Most of the wastewater, excluding complexes of which they form a part. When
chemically 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 fiscal year experts prepared several video
Fiscal year presentations for our people, our people prepared
(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 were
Cooling water (flows heated, encouraged to take action on their own, and a
but chemically unchanged back corporate biodiversity site was set up on the intranet.
into the receiving water system) 10.51 10.26
The new site includes information and contacts for
Total 15.05 15.33
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 and preserving forests, and preserving existing
Cooling water biodiversity in planning and carrying out construction
(flows back heated but
work, as we have done for instance at our new
chemically unchanged into
the receiving water) campus in Erlangen.

2021 Incidents relevant to the environment,

4.55
15.06 and fines
Total wastewater total
without chemically Siemens uses a worldwide reporting system to
unchanged cooling document environmental incidents. In fiscal 2021 we
water recorded 14 minor incidents: These involved spills of
dye, 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 data
collection, see the chapter REPORTING METHOD.

SIEMENS SUSTAINABILIT Y REPORT 2021 87

4.3 Product stewardship

4.3

Product stewardship

– Robust Eco Design to increase resource specifications for the environmentally friendly design
efficiency throughout the life cycle of the products and solutions of its business units.
– Extensive revision of the Siemens Standard The implementation of this standard is the
for the environmentally friendly design of responsibility of the heads of the operating business
products and solutions units and is an integral part of the annual
– Clear commitment to material efficiency by environmental review according to ISO 14001.
increasing the proportion of secondary raw
materials, reducing substances of very high In the development of our eco design approach, we
concern, and paying attention to recyclability focus mainly on increasing the resource productivity
in product design of our solutions in the applications of our customers
by striving for the optimal interaction of products and
services throughout the life cycle. We currently see
Environmentally friendly product design increasing the efficiency of manufacturing and
on the basis of established standards infrastructure 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 product
legislation, but also increasing demands on the part design relate to the specification of requirements for
of 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 in
meaning 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
approach by intensifying the use of life-cycle
We focus on resource efficiency assessments and environmental product declarations,
over a product’s entire life cycle and by paying greater attention to service and
recycling aspects in designing our products. Our
The environmental impacts of products, services, and ambition is to apply the extended “Robust Eco Design”
solutions are largely decided already in the approach to all products, services, and solutions by
specification 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 product
resource efficiency and decarbonization in production, declarations, raise the proportion of secondary
increased productivity and efficiency during use, and materials, and improve recyclability. Siemens
product construction designed to improve recyclability. therefore also espouses the European Green Deal, the
In 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

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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 both
behavior, and also aims to prevent waste and keep business and environmental requirements. To this
resources in circulation for as long as possible by end, products are assigned to technically
means 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 certain in 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 is
have 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. only 25 % of revenue is classified as such; if it is not
fulfilled at all, the corresponding revenue is
Exercising product stewardship with disregarded. Based on the degrees of fulfillment of
DEGREE and the environmental program the individual RED criteria, the average value is
Eco Efficiency @ Siemens applied 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 of
sets 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 the
ratio 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 our Our goal is to embed “Robust Eco Design” in the life-
products, solutions, and services on a sound, cycle management processes for all relevant product
comprehensive 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 life- product families that meet the criteria of “Robust Eco
cycle management, the 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 for life-cycle assessments and
→ Solid foundation: The quantitative assessment of environmental product declarations insofar as the
the environmental impacts of relevant product fulfillment of this criterion now also requires
families is applied as the basis for eco design application at the level of product families. For the
characteristics and environmental product current 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 the play a role at the product family level and form part of
requirement specifications. the RED KPI.

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4.3 Product stewardship

Eco Efficiency @ Siemens Robust Eco Design approach

Manufacture
· Operational
resource efficiency
· Less waste / higher
energy efficiency

Sales / Service
Procurement · Substantiated
· More secondary environmental
material claims
· Fewer substances · Repairability
of concern · Reusability
· Retrofits &
Refurbishment
Planning

Use
Restoration / ­
Recycling · Durability
· Recyclability · Resource
· Suitability for productivity &
Remanufacture Energy efficiency
· Upgradeability

Reuse
· Reusability
· Repairability

Another essential aspect of the “Responsible Product reduce 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. With
and the environmental protection requirements of regard to secondary materials, we focus on suppliers
their applications. To this end, questions on this of raw materials and semi-finished products made of
subject will be added to the customer satisfaction metal and plastic who can be directly influenced by
surveys 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
entirely of iron, copper, and aluminum, we calculated
The tasks in the program category of “Clean Supply a proportion of 38 % in the past fiscal year. This
Chain” are directly derived from the “material proportion is calculated as the weighted average of
reduction” criterion of the “Robust Eco Design” the shares of secondary materials in the three above-
approach. Our goals are to increase the proportion of mentioned metals on the basis of regional or global
secondary materials for metals and plastics and average values derived from the literature. For

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4.3 Product stewardship

plastics, the proportion of secondary materials is less program. In addition, internal IT methods and
than 1 % because suitable recycling chains have not processes have been continuously adjusted with the
yet been fully established for technical plastics. goal of taking a more proactive and safe approach to
Moreover, the corresponding product specifications the use of materials and substances and in order to
and 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” is
the reduction of substances of very high concern, Currently, up to 67 % of our sales (without sales of
such as declarable substances, which will be explained SHS) are still achieved with products that contain
in greater depth in the next section. All targets substances or substance groups listed among the
mentioned above must be achieved in order to regulated substances according to IEC 62474. This
decisively improve resource efficiency and reduce transparency enables us to take continuous action to
environmental 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

MindSphere Easy Sparo-

Siveillance
SIHARBOR IoT Platform vation Part
Access Mobile
port energy Rail spare
access solutions
management parts

Digital industries (DI) / Large Smart Infrastructure (SI) DI solutions make customers Additive manufacturing of
Drives Applications (LDA) develops digital key software assess and improve their spare parts improves material
provide a solution for energy as a service solution to energy consumption efficiency and product
supply for ships at ports to support its customers in weight, implements,
improve air and noise becoming more resource circularity, reduces CO2
pollution efficient footprints.

Risk-conscious handling of declarable “reThink:Plastic@Siemens”

substances 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 and address this issue with a strategic initiative known as
potentially harmful substances, such as those “reThink:Plastic@Siemens” in order to make a
regulated by the EU REACh Regulation. Under the contribution to the responsible, sustainable use of
earlier “Product Eco Excellence” (PrEE) program, we plastics as part of the company’s commitment to
established important foundations for the digital, product stewardship. In the analysis conducted under
automated, and therefore efficient data processing this initiative, we found that plastics are being used
of 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 our to other materials in most cases. A detailed analysis
suppliers has been increased as part of the PrEE of the plastics used by Siemens generally shows that

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4.3 Product stewardship

a distinction must be made between the use of

technical plastics in products with average life cycles
of 10 to 30 years and the use of basically disposable
plastics used in packaging, for example. The use of
plastics in packaging was analyzed in detail and
confirmed in fiscal 2021. It was shown that plastics
used in transport usually generate lower envi-
ronmental impacts such as CO2 emissions, for
example, due to the lower weight of such plastics
compared to other materials. The results of this
analysis 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, the

company strives to increase the proportion of
secondary raw materials in the technical plastics used
in the company’s products.

SIEMENS SUSTAINABILIT Y REPORT 2021 92

 Page 93 – 112

Social
Contribution to
people and society

Equity Employability
foster diversity, inclusion, and enable our people to stay resilient
community development to create a and 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: maintain
level and expand globally to 100 % 1 high level and expand globally to 100 % by 2025
→ Global commitment to the New Normal Working → 30 % improvement in Siemens’ globally aggre-
Model 2 gated LTIFR 3 by 2025

Additional topics: Additional topics:

→ Support for our people through attractive → “MyGrowth” program for the development
employer benefits and offers of a company-wide growth mentality
→ 
High appreciation for diversity through qualified
“Diversity Charter” → Wide range of opportunities for career
→ Social engagement with three strategic entry and qualification
priorities → 
Healthy and Safe @ Siemens program

1 Where legally possible and reasonable.

introduced
2 
For employees with job profiles that make this possible and reasonable.
3 
LTIFR: Lost Time Injury Frequency Rate (of Siemens employees and
temporary workers) baseline FY 2020.

SIEMENS SUSTAINABILIT Y REPORT 2021 93

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, empowering management
– Supporting our people by offering attractive approach and corporate culture will play a crucial role
benefits in achieving continuous transformation. These
factors will provide guidance, and should build a
strong 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 with transformation presents, a growth mindset is
significant new challenges, which at the same time essential. 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 across people and relevant as skilled workers. That calls for
different ecosystems will all become more and more developing 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’ve combined all this in our HR aspiration: to
We rely on gifted people and a growth advance an integrative, enabling culture for the
mindset upcoming transformation that ensures lasting
Finding solutions for these challenges is what inspires business success and long-term employability for our
our aim to #TransformTheEveryday, and is the key to people. We constantly invest in all levels of training
our company’s sustainable success. To achieve that for our workforce, support their willingness to
goal, Siemens is concentrating on its four strategic experiment and learn, and help them develop a
priorities, 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 –
Ethics, Equity and Employability – are the fields with
We are in the midst of a cultural change at ­Siemens the highest priority for the Siemens HR system.
in which we want to empower all our people to ask SIEMENS AT A GL ANCE

questions, take risks, and do what they think will be

1  ll employee figures in this chapter refer to the headcount and

A
includes Varian.

SIEMENS SUSTAINABILIT Y REPORT 2021 94

5.1 Working at Siemens

Promoting a culture of trust in the real → The Werner von Siemens Award is given in six
and digital worlds different categories to honor achievements that
Our values and ethical standards for doing business have had a positive impact on Siemens and
are anchored in our Business Conduct Guidelines beyond. Elements of our DEGREE framework are
(BCGs). Our BCGs define the basic principles and an integral part of the Werner von Siemens
rules for our conduct both inside and outside the Award. In 2021, the trophies were presented to
company, and are binding for all our employees, teams that have enabled our customers to
managers, and top management alike, worldwide. transform their industries, contribute to
COMPLIANCE technological innovation, serve as a role model
in digitization, or participate in an initiative
Based on this culture of trust, we place fair treatment characterized by ingenuity and social
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, and
regardless of skin color, ethnic or social background, submitted 413 entries.
religion, age, disability, sexual identity and
orientation, world view, or gender. HUMAN RIGHTS. Siemens employee share program
Our goal is to be the employer of choice – which is strengthens identification with the
supported by our top employer ranking of various company
organizations 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 on in the company is intended to motivate our people to
understanding our people’s experiences and taking take personal responsibility for their own actions. This
them into account, and on recognizing our people’s ownership culture has a long tradition at S
­ iemens.
achievements: The first profit-sharing program was introduced back
in 1858. Today, the global Siemens share program,
→ We use the results of our Siemens Global which has been offered annually since 2008, is one
Employee Survey (SGES) at regular intervals to of 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 to derive any necessary steps 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 of
1
Siemens AG distributed around 490,000 free bonus
approval for relevant aspects such as innovation, shares to employees in the past fiscal year as part of
diversity, 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 the
previous calendar year and who continue to be employed at a partici-
pating Siemens subsidiary at least until the last day of the applicable
offer 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 employed employee exits – was 11 % in the reporting period,
303,000 people around the world. That represents compared to 15 % for the previous year. All other
an increase of about 10,000 employees from differences result from changes in the basis of
September 30, 2020; 56 % of all employees were in consolidation 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
have permanent employment contracts. Asia, Australia 10.1 6.0

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) 2021 2020

Siemens 30 30
21 %
Europe, C.I.S.,¹ Africa, Middle East 29 29
Americas
Americas 33 32
Asia, Australia 29 29

1 Commonwealth of Independent States.

56 % 303,000
Europe, C.I.S., 1 Total
Africa, Middle East 23 % Employee turnover rate ¹
Asia,
Fiscal year
Australia
(in %) 2021 2020

Employee decision 4.7 3.5

Other reasons for exit 5.0 4.8

27 % Total 9.7 8.4

1 Employee turnover is defined as the ratio of voluntary and involuntary exits from
Proportion of women Siemens during the fiscal year to the average number of employees.

as a percentage of
total employees
Working hours and working time arrangements
1 Commonwealth of Independent States.

Average standard weekly working hours¹

September 30,

Hires and exits (in hours) 2021 2020

The number of new hires increased by approximately Siemens 39.5 39.3

36 % compared to fiscal 2020, while the number of Europe, CIS, Africa, Middle East
2
38.0 37.9
exits increased by 17 %. Americas 41.0 41.1
Asia, Australia 41.9 41.5

1 
Contractual weekly working hours.
2 Commonwealth of Independent States.

SIEMENS SUSTAINABILIT Y REPORT 2021 96

5.1 Working at Siemens

Employee benefits and opportunities for

Use of working hour programs at Siemens
today and tomorrow
September 30,
Amid a constantly changing world, we continuously
(in thousands) 2021 2020
compare the employee benefits and opportunities we
Part-time 13.8 13.9
provide, and revise them so that we can offer flexible
Employees on leave or absence 6.3 6.2
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 to
almost unchanged from the previous year. The average realize their full potential and strengthening their
age in the reporting period was 42 years. resilience with a variety of insurance policies, support
benefits, retirement arrangements, and elective
Age structure plans. To understand the constantly changing, diverse
(as a percentage of total employees) September 30, 2021 needs of our global team and their families, we watch
< 35 35 – 44 45 – 54 > 54
the external market and track the latest trends and
Siemens 30 % 30 % 23 % 17 % innovations in our industry and we keep an eye to
sustainability.
Europe, C.I.S.,¹
Africa, Middle East 25 % 28 % 26 % 20 %

Americas
Pensions 1
26 % 26 % 25 % 24 %
We offer defined benefit and/or defined contribution
Asia, Australia 44 % 38 % 15 % 3% pension plans. The largest pension plans are in
Germany, the United States, the United Kingdom,
1 Commonwealth of Independent States. and Switzerland. Contributions and amounts
recognized as expense for state plans and defined
Commitment 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 as
needs) 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 to
regulations, Siemens adheres to the principle of € 1,449 million. Employer contributions to defined
“equal pay for equal work,” for instance equity in benefit plans amounted to € 2,041 million. The
wages for women and men with the same job profile/ company’s major defined benefit plans are funded
same role. with assets in segregated entities. In accordance
with local laws, these plans are managed in the
We also review pay parity at regular intervals, so as to beneficiaries’ interest by way of contractual trust
eliminate unjustified differences (with the same job agreements with each separate legal entity. The
profile, role, competencies, experience, and defined benefit plans cover 442,000 participants,
performance, etc.), as further testimony to our including 178,000 actives, 84,000 deferreds with
unwavering commitment to fair payment for vested benefits, and 180,000 retirees and surviving
employees. In 2021 we reviewed our 21 largest dependents.
countries (selected by revenue) on the basis of our
defined, market-based pay parity methodology. We are 1 Figures comprises the total of continuing and discontinuing operations.

working with the companies in these largest countries

to establish a long-term cultural change in support of
our targets.

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5.1 Working at Siemens

The Siemens Group also takes a sustainable approach → With mobile working within this New Normal, we
to 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 1
working and flexibility of work location in the
since 2020. All asset managers must be PRI hybrid New Normal Working Model (2–3 days of
signatories and be able to provide evidence of an mobile work per week as a worldwide standard
ESG policy. ESG factors are integrated into the offering for our people) also strengthens our abil-
investment process. Siemens Pensionsfonds AG ity to attract and retain the best talent for S
­ iemens.
invests selectively in liquid asset classes, with a focus Our DEGREE ambition of global commitment to
on 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 and → We also encourage balance of work and caregiv-
the portfolio’s carbon footprint. ing relatives. Siemens is well aware that this
concern is growing in importance, and we sup-
The internal asset manager, Siemens Fonds Invest port our people in Germany who provide care for
GmbH, has also been a PRI signatory since 2020, and family 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 2
counseling, and training in health matters.
sustainable Article 8 funds under the EU Disclosure
Regulation 3. Childcare at Siemens
As part of its family-friendly corporate policy, for
Work-life balance fiscal year 2021 Siemens AG supported its people in
There is an increasing desire for more flexibility and Germany with a general tax-free childcare allowance
more individual solutions depending on phase of life of up to € 100 per calendar month per child for the
when 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, and week) 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 childcare
sabbaticals, time-outs, parental leave, and partial at a kindergarten or similar establishment, for
early 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 and options, such as around 1,500 5 childcare places, a
promote a sustainable work culture and working summer vacation childcare program, and parent-child
environment THE COVID-19 PANDEMIC . health retreats.

1 Principles for Responsible Investment. 4 For employees with job profiles that make this possible and reasonable.
2 Undertakings for Collective Investments in Transferable Securities. The Siemens New Normal Working Model is not offered at SHS.
3 EU 2019 / 2088. 5 Excluding SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021 98

5.1 Working at Siemens

The FutureOfWork@SIEMENS initiative Our talent programs for individual career

As a future-oriented company, we have a responsibility paths
to actively consider and shape the influence of current Through a focused integration and development of
and future trends on our people, our work, and our the next generation of leaders, we make a sustainable
working environment. This is what lies at the heart contribution toward a diverse, agile management
of the #FutureOfWork initiative. In order to tackle team, and thus to the transformation of Siemens.
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 specifically
developing their leadership skills and their global
→ #NewWork includes making organizations more networks, the program prepares participants for
flexible and developing individual and future management responsibilities, especially in
organizational adaptability, such as agile forms fast-growing digital business models.
of organization and forms of collaboration, → The Siemens Finance Excellence Program (FEP) is
leadership, and flexible working conditions. a finance leadership program and a stepping
→ #NextWork addresses the existential question of stone for future leaders in finance who have a
our future jobs, namely which activities and roles digital mindset. All FEP associates are assigned a
will exist tomorrow and beyond – both inside and personal mentor from among Siemens’ finance
outside our company. In this context, we identify leadership team, accompanied by custom-­
the capabilities needed to enable an organization tailored development programs.
as a whole, but also our individual people, to → The Siemens Graduate Program (SGP) is an
prepare for the work of tomorrow. international trainee program that offers a
personalized career path for ambitious “master
To succeed, this collaborative design of #NewWork graduates,” with a customized development track
and #NextWork must rely on a cultural change that and excellent networking opportunities
can only be brought about through the cooperation throughout the company.
of all our people.

SIEMENS SUSTAINABILIT Y REPORT 2021 99

5.2 Diversity, Equity & Inclusion

5.2

Diversity, Equity & Inclusion

– Focus on strengthening sense of belonging A global strategy with local

– “Diversity Charter” reinforces respect for implementation
­diversity We have been working for years now to build a
– A DEGREE ambition: 30 % female share in Top diverse, equitable, inclusive corporate culture – and
Management by FY25 1
have had measurable success, for example on the
share 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 many
life – for our customers, our people, and society at regions of the world. Working with our Chief
large. 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 and
for the inclusion and interaction of different ways of assistance for a great many activities.
thinking, backgrounds, experiences, skills, and
individual qualities across all levels and dimensions Siemens AG and the company’s Central Works
of the company. Equity is an integral part of our Council have adopted a Diversity Charter for
corporate culture. Inclusion enables every voice to be Germany. 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, this
means: #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 and
by creating a working environment that is open and the “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 enhance
of any kind. The guidelines clearly state: “We respect diversity further. We employ key figures such as the
the personal dignity, privacy, and rights of each percentage of women, generations, and nationalities
individual.“ They also make it clear that Siemens is as a way of regularly monitoring the efficacy of our
committed 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. HUMAN RIGHTS Employers for Women” and a “100 % rating from the

1 Not applicable to SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021 100

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 Employees in management positions 1

the LGBTIQ* community 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
Employees in management Percentage of female employees
takes a stand and commits to “color for more positions in management positions

29,900 19.6 %
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
1 Employees in management positions include all managers with
been rainbow-colored throughout Pride Month. We disciplinary responsibility. Varian included.
also provide ways for our LGBTIQ* people to network
with 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 the
identify 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 to
increase the number of women in top management 2
to 30 % globally by September 30, 2025.3 We are
also pursuing a variety of initiatives, programs, and
measures to advance a cultural change toward gender
parity, diversity, and integration. Among the many
different women’s networks around the world are:

1 Varian included.
2 This does not affect local or company-specific diversity targets and
requirements set by law or regulation. More details about the targets
and staffing requirements that apply to Siemens AG, as well as the
diversity concepts that are being pursued for the Supervisory Board and
Managing Board of Siemens AG, can be found in the annual “Corporate
Governance Statement” available on the Siemens Investor Relations
website, under the “Corporate Governance” heading.
3 Not applicable to SHS.

SIEMENS SUSTAINABILIT Y REPORT 2021 101

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 place culture 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 Disabled
working, 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. of working persons with disabilities all over the world,
→ GROW2GLOW: The GROW2GLOW network as a signal of respect for the International Day of
provides business coaching for women as a way Persons with Disabilities (IDPD) proclaimed by the
of 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 to
with disabilities, their inclusion in society and the place the concerns of persons with disabilities on
workplace, and their self-determined participation companies’ management agendas.
and right to be treated with respect. What counts for
us is the person – disabilities should have no relevance 1 Inclusion Agreement for Siemens AG Germany.
at all. For that reason, we also aim for a barrier-free
work environment. But at Siemens, inclusion means
more than just accessibility. It is a holistic way of
thinking and acting that eliminates both visible and
invisible barriers, and encourages a culture of aware,
equal-opportunity participation and understanding
as a way of supporting and enabling persons with
disabilities.

SIEMENS SUSTAINABILIT Y REPORT 2021 102

5.3 Professional education and lifelong learning

5.3

Professional education and

lifelong learning

– Broad portfolio for vocational education and business, we teach core components of the dual
training (VET) and lifelong learning vocational education and training, which helps foster
– “MyGrowth” program to develop a company- employability wherever the participants reside. At
wide growth mindset present, our programs have 45 participants from
– One of our DEGREE ambitions: Double digital 17 countries.
learning hours by 2025 1
Lifelong learning is crucial to success
In 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 with of € 573 per employee. We have a wide range of
the right skills are crucial to our growth. That’s why learning content and formats to help our people
we invested approximately €318 million in enhance their qualifications.
employee education and training in fiscal 2021.

Vocational training to start your career

Through its educational institution Siemens
Professional Education (SPE), Siemens is one of the

€ 165 million
largest companies in Germany for secondary school
graduates. Currently the company has
4,711 apprentices and students in dual study programs invested in employee training.
in Germany, 1,029 of them coming in from other This equated to an average of €573 per
companies and 3,682 employed at Siemens. In employee in fiscal 2021.
autumn 2021, 1,085 school graduates began an
apprenticeship 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 the people around the globe. We provide a broad range
world. Our SPE program includes apprenticeships and of courses: Along with content in technology and
dual study programs in technical, IT, and commercial other specialties, they also include developmental
fields and also offers development opportunities for courses for social skills like team leadership and team
disadvantaged young people. building. On average, each employee spent about
22 hours in training during the fiscal year. In terms
International Tech Development programs: Our of the DEGREE ambitions, excluding Siemens
international programs are intended for members of Healthineers, each employee completed about
the upcoming generation from Europe and beyond. 17 hours of digital learning. Management
In a format tailored to the needs of international compensation includes long-term performance
incentives based on ESG criteria and is defined under
1 Not applicable to SHS.

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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) for measuring customer satisfaction. fields. It supports women in realizing their full
SUSTAINABILIT Y GOVERNANCE AND ORGANIZATION potential and aims to promote a culture of inno-
vation through strong networks between depart-
People development programs ments and organizations.
customized for global or local use → 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 strategically
strengthening succession planning and
→ The Siemens Core Learning Paths (CLP) are promoting the corporate culture. These programs
specifically designed for areas like Sales, Project support participants in identifying sustainable
Management, Procurement, Production, and and effective solutions for their business
Software Architecture. They provide the target challenges and provide a shared understanding
group with self-guided learning content and of 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
internationally comparable within Siemens and Future-oriented learning and career
create career opportunities for our people growth and development instruments
throughout the company, and therefore they The MyGrowth program combines our learning and
support 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, and and weaknesses and to be aware of one’s
personal growth. In addition to targeted personal stage of development. A variety of tools
development measures such as training, and services are offered with content like coach-
mentoring, shadowing, and assignments abroad, ing (Peer2Peer), identifying strengths (Strength-
participants benefit by expanding their scope), and perception by others (feedback tool).
professional networks and becoming more visible → MyGrowth Learning (My Learning World): Our
to management. This is how the programs also online learning platform offers more than
make a significant contribution to strategic 100,000 learning resources that aim to satisfy our
succession planning. Some of the Potential- people’s different interests and special
Development Programs are specifically designed requirements. Our people can benefit from a
for the advancement of women. large number of learning formats here, including

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5.3 Professional education and lifelong learning

videos, e-learning modules, virtual training

courses, technical literature, podcasts, and Future 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 to
with you”: This concept allows you to shape your master structural transformation while also
own career development; it’s integrated into a optimizing opportunities for change that can
holistic concept and is based on your current benefit our people. A Future Fund has been
situation. The core components are the Open Job created for this purpose. It encourages
Market, Job Tagging (where you can show you’re development programs intended to support our
interested in a particular job), a People Profile to people in staying oriented in a disruptive
increase your visibility, and Job Shadowing and employment 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, with
strength-based conversations that support both support 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 their
performance. The continuous dialog between our 1 The fund included Siemens Energy until that company
was spun off.
people and management builds transparency and a 2 Excluding Siemens Energy and SHS.

shared understanding.

SIEMENS SUSTAINABILIT Y REPORT 2021 105

5.4 Occupational health and safety management

5.4

Occupational health and

safety management

– The COVID-19 pandemic: a trial by fire for Occupational safety and health management are
worldwide EHS management incorporated into our DEGREE framework, primarily
– Healthy and Safe @ Siemens program launched under “E” for Employability.
– Accident rates reduced even more
COVID-19 pandemic places new demands
on health and safety management
Maintaining, fostering, and improving the safety and Maintaining and strengthening individual and
well-being of our people is a key task of our organizational resilience – and by the same token, the
organization. It’s enshrined in our Business Conduct sustainability 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 the again to be reliable and fully capable of handling this
binding 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 these countries 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 and
the associated responsibility at Siemens. It’s organized promoted vaccination in a number of countries. To
locally, it’s integrated into each area of business and support our people and their families in countries
each national company, and it reports directly to the where the public healthcare system faced especially
respective business managers. The EHS Officers severe challenges, Siemens Medical Services offered
coordinate collaborations with experts in the many assistance, organized hotels where our infected
different fields of action involved. The main task of people could be isolated, and relocated medical
this professional function is to advise managers and equipment to regions where it was most needed.
teams and support them in managing their specific
areas 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 with
dynamically changing requirements.

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5.4 Occupational health and safety management

Inclusion, interaction, and personal → Another example is the “Improvement Dialog”

development approach that’s a key component of the Healthy
The pandemic accelerated the digitalization of our and 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 and riety of views and experiences and then changes
negative implications for their health, safety, and and improvements are explored and adopted.
well-being. Our people were faced with many → For health and safety experts, there’s a “Future
changes and adjustments. We’re working actively to Skills @ EHS” initiative that provides an orienta-
channel these changes toward a “New Normal” with tion 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 ambassadors
concentrated on encouraging interaction, intensifying of an expanded understanding of health and
communication, 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 to
ensure healthy, safe working conditions, and we
In addition to health and safety trainings on specific foster self-organization as one of the best ways to
topics, we significantly expanded the scope of other deal with the requirements of the “new normal.”
opportunities for learning and dialog, especially
pertaining to resilience, psychological safety, and The new Healthy and
psychosocial risk management. 1
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 options of 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 main topics:
among managers and team members about
health, safety, and well-being on the job. The
(virtual) “Walk & Talk 2.0” and EHS-related inter-
nal social networks are one expression of this
intensified interaction and dialog.

1 Siemens excluding SHS.

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5.4 Occupational health and safety management

The program’s framework has been enlarged to

New Healthy and Safe @ Siemens program organizational resilience: It no longer focuses entirely
on bodily health and integrity, but now places more
attention on mental health and psychological safety.
Foster Positive This is intended to strengthen the sense of well-being
Work Climate
and the resilience of our people and to support them
in dealing with change. The key was actively involving
the workforce in designing their work environments.
Evolve Leadership
In our local organizations, health and occupational
in Health and Safety
safety committees play an important role, with
management 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 (a
Optimize
Processes & Resources “Resilience Toolbox”), and many colleagues took
advantage of it.

Resilience toolbox

Action modules
Leadership
for Health &
training
Safety Days

Lectures for all of Toolbox Resilience

our people elements coaching

Team 24/7 available

workshops elements (online)

Integrated offers
from partners

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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 been in 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 was a contract worker who fell from a roof during demolition
Programs) by 2025 work. Another contractor was run over by a mobile crane during
transport 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 and
to 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 access it’s a renewed call to keep ensuring and improving a safe, healthy
to these programs. By that we want to support all our work environment for our people and partners.
people around the world to establish health
promoting behaviors – and also to raise awareness
of psychosocial issues in society as a whole. LTIFR Employees and Temporary Workers ¹
Fiscal year

→ Improving the global accident rate (Lost Time 2021 2020

Injury Frequency Rate, LTIFR) by 30 % by 2025 Employees 0.27 0.28

(base year: 2020) 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.

13 %
2 
As a globally operating company, Siemens isn’t always authorized or able to obtain
sensitive information about contract workers’ health and occupational safety or
complete figures on their work hours. As a result, the Temporary Worker LTIFR for
Siemens includes only temporary workers hired by a temporary employment agency
Reduction in accident rate (LTIFR) 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 –
Contractors 2 1
Accident numbers low Total 4 1
The number of work-related accidents further declined
in the last fiscal year.

The majority of incidents are finger injuries and the

consequences of falls or slipping. Many incident
reports indicate that despite all efforts at prevention
and inspection, a hazard wasn’t properly identified or
eliminated.

1 Siemens excluding SHS.

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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 and framework, specifically the main focus is on “Equity,”
technologies which strengthens the identification of different target
– A variety of projects with three strategic groups with the company, and on “Employability,”
priorities which is achieved through a range of training measures
covering all phases of life.

Corporate citizenship is 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 for
country 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 the extend beyond traditional philanthropy. We harness
SDGs, we identify topics that are relevant for the our technological competencies and leverage our
development of a country and illustrate how we are capabilities 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 citizenship
to give something back to the societies in which the initiatives. OUR MOST IMPORTANT AREAS OF IMPACT

company operates. Thus, corporate citizenship is an HT TPS://[Link]/EN/FOUNDATION/

important element of our company’s sustainability BENEFACTOR/

Our Core Areas

Access to Access to Sustaining

technology education communities

With the aid of our core competencies Knowledge is a resource on which our Our goals are to establish stable living
in digitalization, automation, and future depends. Therefore, improving conditions, protect values, unleash
electrification, as well as scientific educational prospects and allowing creativity, improve intercultural
research, we strive to give as many broad access to education are critically understanding, and contribute to
people as possible the chance to use important challenges for all societies progress.
the latest technologies. everywhere in world.

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5.5 Corporate citizenship

Creating lasting value with a Community Investment 1

shared-value approach
In accordance with our corporate strategy AT A
26 %
GL ANCE , responsibility for the selection and Americas
management of nonprofit and socially innovative
activities lies with the local units or local management
in each country. This approach is designed to make Fiscal 2021

sure that we provide support and create value where € 40.6 million
total
it is needed most. In the process, we combine in- 26 %
depth local knowledge with the need for a long-term 48 % Asia,
commitment to overcome social challenges that may EMEA Australia

vary from region to region. 1 Community investment includes donations as well as sponsoring activities in the
areas of education, science and the arts and culture.

Our goal in each society is to help improve general

living and healthcare conditions (access to technology), Another significant factor of corporate responsibility
enhance educational and training opportunities for the at Siemens are our employee donation programs,
labor market (access to education), and strengthen which combine the company’s commitment to society
social cohesion and cultural identification (sustaining with our people’s wish to be more engaged on a
communities). At the same time, we enhance the personal level. The Cents4Sense program allows
reputation of Siemens, strengthen its local footprint, employee shareholders to donate one dividend of
create 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 the
individual underlying targets. Access to education is relevant for
societies 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
ensuring transparency regarding all activities that vary from region to region and for finding the
worldwide. best possible solutions in close cooperation with local
partners. In doing so, Siemens also improves market
Corporate volunteering is an important lever and access for qualified and urgently needed young
driver of the corporate citizenship activities of professionals, 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 and training 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.

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5.5 Corporate citizenship

A skilled workforce is essential for the growth of a A 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 this
Manufacturing Challenge” contest, in which more than program is to evenly promote all genders. Another
60,000 university and vocational school students have important element is the assignment of mentors from
participated since 2011. By involving a strong network Siemens Turkey. Since 2018, 40 students have
of 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 professional careers.
Everywhere in the world, people are adversely
affected by unforeseeable events and disasters Access to technology on the basis of our
such as disastrous floods and even the COVID-19 core competencies
pandemic. Access to modern and reliable infrastructure, for
example by securing the energy supply, clean water,
The company has therefore set itself the goal or even basic medical care, is a fundamental
of tackling regionally different problems and prerequisite, especially in developing countries, for
finding the best possible solutions in close improving the quality of life of many people and
cooperation with the local authorities. securing prospects for their future.
Immediate humanitarian aid may consist of
financial and particularly also technical support Another way that Siemens helps people improve their
on the basis of the company’s portfolio. Our life 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 that by 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 a
with 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 goes
the “Siemens4Siemens” app developed on the a long way to helping us live up to this objective
basis of Mendix software enabled affected through a diverse range of projects, such as the
employees 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 the
totaling more than €5.7 million were used conservation of natural resources are two goals that
particularly 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, for
care 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

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6 Our sustainability indicators

Fiscal/
Sustainability Key Performance Indicators (KPIs) September 30th Unit FY 2021 FY 2020 +/– Standard

SIEMENS AT A GLANCE
GRI 201-1,
Total revenue Total Fiscal Year Billion € 62.3 55.3 12.7 % WEF
Contribution to GDP (gross domestic
product) generation 1 Total Fiscal Year Billion € 281 n. a. WEF
Total Fiscal Year No. ­(rounded) 5,000,000 n. a. WEF
Jobs enabled 1 in developing and
emerging countries Fiscal Year No. ­(rounded) 2,600,000 n. a. WEF

Research and development 2

R&D expenses Total Fiscal Year Billion € 4.9 4.6 6.4 % WEF
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 Year No. ­(rounded) 42,500 40,800 4.2 %
Patents granted Total Sept. 30th No. ­(rounded) 43,400 40,900 6.1 %

GOVERNANCE
Compliance (continuing and discontinued operations)
GRI 205-3,
206-1, 307-
1, 406-1,
Total Fiscal Year No. 394 332 18.7 % 419-1, WEF
GRI 205-3,
206-1, 307-
allegations of 1, 406-1,
bribery Fiscal Year No. 93 n. a. 419-1, WEF
Compliance cases reported
GRI 205-3,
allegations of 206-1, 307-
­bribery related to 1, 406-1,
actual year Fiscal Year No. 5 n. a. 419-1, WEF
GRI 205-3,
allegations of bribery 206-1, 307-
related to previous 1, 406-1,
years Fiscal Year No. 5 n. a. 419-1, WEF
GRI 205-3,
Total Fiscal Year No. 121 188 – 35.6 % WEF
GRI 205-3,
warnings Fiscal Year No. 62 90 – 31.1 % WEF
Disciplinary sanctions
GRI 205-3,
dismissals Fiscal Year No. 49 63 – 22.2 % WEF
GRI 205-3,
others  4 Fiscal Year No. 10 35 – 71.4 % WEF
Business Conduct Guideline Training – % of invited GRI 205-2,
graduating quota current year Total Fiscal Year employees 92.6 % 86.1 % 7.6 % 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.

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Sustainability Key Performance Indicators (KPIs) September 30th Unit FY 2021 FY 2020 +/– Standard

GRI 205-2,
Total Fiscal Year No. ­(rounded) 72,000 165,000 – 56.4 % WEF
GRI 205-2,
Business Conduct Guideline Training – EMEA Fiscal Year No. ­(rounded) 34,000 105,000 – 67.6 % WEF
persons graduating current year GRI 205-2,
Americas Fiscal Year No. ­(rounded) 19,000 27,000 – 29.6 % WEF
GRI 205-2,
Asia / Australia Fiscal Year No. ­(rounded) 19,000 33,000 – 42.4 % WEF
Graduated other specific Compliance GRI 205-2,
trainings for employees Total Fiscal Year No. ­(rounded) 374,000 277,000 35.0 % WEF
up to GRI 102-12,
Integrity Initiative – Projects Total Sept. 30th No. 85 77 10.4 % WEF
Integrity Initiative – Finance budget up to GRI 102-12,
provided Total Sept. 30th Million US $ 120.0 98 21.8 % WEF

Supply chain management

Purchasing Volume (PVO) / Procurement
volume Total Fiscal Year Billion € 27.8 26.7 4.1 % GRI 102-9
Number of relevant (> € 10,000 annual
volume) suppliers Total Fiscal Year No. ­(rounded) 63,000 65,000 – 3.1 % GRI 102-9
GRI 308-2,
407-1, 408-
1, 409-1,
Total Fiscal Year No. 4,267 4,759 – 10.3 % 414-2
GRI 308-2,
407-1, 408-
1, 409-1,
EMEA Fiscal Year No. 1,505 1,439 4.6 % 414-2,
Sustainability self-assessments 1
GRI 308-2,
407-1, 408-
1, 409-1,
Americas Fiscal Year No. 555 936 – 40.7 % 414-2
GRI 308-2,
407-1, 408-
1, 409-1,
Asia / Australia Fiscal Year No. 2,207 2,384 – 7.4 % 414-2
Agreed improvement measures out of GRI 308-2,
Sustainability self-assessments Total Fiscal Year No. 3,604 3,279 9.9 % 414-2
GRI 308-2,
407-1, 408-
1, 409-1,
Total Fiscal Year No. 319 374 – 14.7 % 414-2
GRI 308-2,
407-1, 408-
1, 409-1,
Supplier quality audits with sustainability EMEA Fiscal Year No. 116 144 – 19.4 % 414-2
questions GRI 308-2,
407-1, 408-
1, 409-1,
Americas Fiscal Year No. 89 77 15.6 % 414-2
GRI 308-2,
407-1, 408-
1, 409-1,
Asia /Australia Fiscal Year No. 114 153 – 25.5 % 414-2

1 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.

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GRI 308-2,
407-1, 408-
1, 409-1,
Total Fiscal Year No. 394 269 46.5 % 414-2, WEF
GRI 308-2,
407-1, 408-
1, 409-1,
EMEA Fiscal Year No. 123 65 89.2 % 414-2, WEF
External sustainability audits
GRI 308-2,
407-1, 408-
1, 409-1,
Americas Fiscal Year No. 44 19 131.6 % 414-2, WEF
GRI 308-2,
407-1, 408-
1, 409-1,
Asia / Australia Fiscal Year No. 227 185 22.7 % 414-2, WEF
Agreed improvement measures out of GRI 308-2,
external sustainability audits Total Fiscal Year No. 6,617 5,394 22.7 % 414-2, WEF

ENVIRONMENT
Climate Action

Greenhouse Gas Emissions

1,000 metric
tons of CO2 GRI 305-1,
Total Fiscal Year equivalents 386 424 – 9.0 % WEF
1,000 metric
tons of CO2 GRI 305-1,
CO2 emissions Fiscal Year equivalents 352 391 – 10.0 % WEF
1,000 metric
tons of CO2 GRI 305-1,
SF6 emissions Fiscal Year equivalents 17 14 27.1 % WEF
1,000 metric
Scope 1 tons of CO2 GRI 305-1,
CH4 emissions Fiscal Year equivalents < 0.1 < 0.1 WEF
1,000 metric
tons of CO2 GRI 305-1,
N2O emissions Fiscal Year equivalents 1 1 7.6 % WEF
1,000 metric
tons of CO2 GRI 305-1,
HFC-gas emissions Fiscal Year equivalents 16 19 – 15.1 % WEF
1,000 metric
Other Kyoto gas tons of CO2 GRI 305-1,
emissions Fiscal Year equivalents <1 <1 WEF
1,000 metric
Total tons of CO2 GRI 305-2,
(market based) Fiscal Year equivalents 208 253 – 17.7 % WEF
Scope 2
1,000 metric
Total tons of CO2 GRI 305-2,
(location based) Fiscal Year equivalents 755 826 – 8.7 % WEF
1,000 metric
tons of CO2 GRI 305-1,
Scope 1 + 2 Total Fiscal Year equivalents 595 678 – 12.2 % 305-2, WEF

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1,000 metric
tons of CO2 GRI 305-5,
Scope 1 + 2 Reduction to LY Total Fiscal Year equivalents 83 225 – 63.2 % WEF
1,000 metric
tons of CO2 GRI 305-5,
Total (Scope 1 + 2) Fiscal Year equivalents 541 546 – 1.0 % WEF
1,000 metric
Reduced emissions through energy from
Gas from renewable tons of CO2 GRI 305-5,
renewable sources
sources (Scope 1) Fiscal Year equivalents 22 0 WEF
Electricity from 1,000 metric
renewable sources tons of CO2 GRI 305-5,
(Scope 2) Fiscal Year equivalents 518 546 – 5.1 % WEF
1,000 metric
Scope 3 tons of CO2 GRI 305-3,
Total Fiscal Year equivalents 469,271 507,691 – 7.6 % WEF
1,000 metric
tons of CO2 GRI 305-3,
Total Fiscal Year equivalents 10,435 10,296 1.4 % WEF
1,000 metric
Purchased goods & tons of CO2 GRI 305-3,
services Fiscal Year equivalents 8,813 8,607 2.4 % WEF
1,000 metric
tons of CO2 GRI 305-3,
Capital goods Fiscal Year equivalents 381 419 – 9.1 % WEF
1,000 metric
Fuel & energy-relat- tons of CO2 GRI 305-3,
ed activities Fiscal Year equivalents 263 282 – 6.7 % WEF
Scope 3 Upstream
1,000 metric
tons of CO2 GRI 305-3,
Waste in operations Fiscal Year equivalents 24 28 – 14.3 % WEF
1,000 metric
Transportation tons of CO2 GRI 305-3,
upstream Fiscal Year equivalents 797 740 7.7 % WEF
1,000 metric
tons of CO2 GRI 305-3,
Business travel Fiscal Year equivalents 63 126 – 49.8 % WEF
1,000 metric
Employee commut- tons of CO2 GRI 305-3,
ing Fiscal Year equivalents 94 94 0.0 % WEF
1,000 metric
tons of CO2 GRI 305-3,
Total Fiscal Year equivalents 458,836 497,395 – 7.8 % WEF
1,000 metric
Scope 3 Downstream tons of CO2 GRI 305-3,
Use phase emission Fiscal Year equivalents 453,350 483,813 – 6.3 % WEF
1,000 metric
tons of CO2 GRI 305-3,
Investment SFS 1 Fiscal Year equivalents 5,486 13,582 – 59.6 % WEF
1 Emissions out of Siemens Finance Service (SFS) activities in financing fossil energy production projects.

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Greenhouse Gas – Fleet and Real Estate Management

Total number Sept. 30th No. ­(rounded) 43,000 44,000 – 2.3 %

Electrical vehicles Sept. 30th No. ­ 656 n. a.
Hybrid vehicles Sept. 30th No. ­ 2,719 n. a.
Rate of electrical and
Siemens fleet hybrid vehicles Sept. 30th % of total fleet 8% n. a.
(owned or leased vehicles)
1,000 metric
Fleet emissions (part tons of CO2 GRI 305-1,
of Scope 1 emission) Fiscal Year equivalents 194 205 – 5.1 % WEF
Fuel consumption 1,000
fleet Fiscal Year ­gigajoule 2,658 2,530 5.1 %
Siemens sites with Net-Zero CO2 GRI 305-5,
­emissions Total Sept. 30th No. 32 17 88.2 % WEF

Environmental Portfolio 1
SASB RT-EE-
Revenue from Environmental Portfolio
Total Fiscal Year Billion € 19.1 18.0 6.2 % 410a.3
% of total rev-
Share of Revenue from Environmental
enue (Sales to SASB RT-EE-
Portfolio
Total Fiscal Year 3rd. parties) 30.7 % 32.6 % – 5.7 % 410a.3
Greenhouse gas reductions in the
reporting year achieved by our custom-
ers through products of the Siemens
Environmental Portfolio newly installed GRI 305-5,
in the reporting year Total Fiscal Year Mt CO2 8.4 7.0 20.1 % WEF
Greenhouse gas reductions in the
­reporting year achieved by our
­customers through new and through
preexisting products of the Siemens GRI 305-5,
Environmental Portfolio Total Fiscal Year Mt CO2 87.5 80.4 2 8.9 % WEF

Conservation of Resources 3
GRI 302-1,
1,000 SASB RT-EE-
Total Fiscal Year ­gigajoule 9,863 10,416 – 5.3 % 130a.1
% of total 302-1, SASB
Energy Consumption: Primary &
Share of renewable energy RT-EE-
­Secondary Energy
energy sources Fiscal Year ­consumption 46.4 % 39.4 % 17.7 % 130a.1
% of total GRI 302-1,
Share of grid energy SASB RT-EE-
­electricity Fiscal Year ­consumption 54.0 % 58.0 % – 6.8 % 130a.1

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.

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GRI 302-1,
1,000 SASB RT-EE-
Total Fiscal Year ­gigajoule 3,198 3,283 – 2.6 % 130a.1
GRI 302-1,
Natural gas & liquid 1,000 SASB RT-EE-
gas Fiscal Year ­gigajoule 3,118 3,199 – 2.5 % 130a.1
GRI 302-1,
Energy Consumption: Primary Energy Gas from renewable 1,000 SASB RT-EE-
sources Fiscal Year ­gigajoule 399 0 130a.1
GRI 302-1,
Gas share from % of total gas SASB RT-EE-
renewable sources Fiscal Year used 13 % 0  % 130a.1
GRI 302-1,
Fuel oil, gasoline, 1,000 SASB RT-EE-
diesel Fiscal Year ­gigajoule 62 70 – 11.3 % 130a.1
GRI 302-2,
1,000 SASB RT-EE-
Total Fiscal Year ­gigajoule 6,665 7,133 – 6.6 % 130a.1
GRI 302-2,
1,000 SASB RT-EE-
Electricity (total) Fiscal Year ­gigajoule 5,329 6,036 – 11.7 % 130a.1
GRI 302-2,
Energy consumption: Secondary Energy Electricity (renew- 1,000 SASB RT-EE-
able sources) Fiscal Year ­gigajoule 4,173 4,101 1.7 % 130a.1
Electricity Share of GRI 302-2,
renewable energy % of total elec- SASB RT-EE-
sources Fiscal Year tricity used 78 % 68 % 15.3 % 130a.1
GRI 302-2,
1,000 SASB RT-EE-
District heating Fiscal Year ­gigajoule 1,337 1,097 21.9 % 130a.1

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Waste

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 / re-
covered Fiscal Year 1,000 tons 222.3 245.7 – 9.5 % GRI 306-3
Non-hazardous
waste – landfill / other
disposal Fiscal Year 1,000 tons 12.9 13.5 – 4.4 % GRI 306-3
GRI 306-3,
Hazardous waste – SASB RT-EE-
total Fiscal Year 1,000 tons 11.8 18.5 – 35.9 % 150a.1
GRI 306-3,
Hazardous waste – SASB RT-EE-
recycled / recovered Fiscal Year 1,000 tons 6.1 11.6 – 47.2 % 150a.1
Waste Hazardous waste – GRI 306-3,
landfill / other SASB RT-EE-
disposal Fiscal Year 1,000 tons 6 7 – 17.1 % 150a.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
Construction
waste – landfill / oth-
er 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 land-
fill / ­other disposal Fiscal Year 1,000 tons 19 20 – 8.3 % GRI 306-3
% of total waste
Total ­ (w/o construc-
(w/o construction) Fiscal Year tion) 92 % 93 % – 0.2 % GRI 306-4
% of total haz-
Hazardous waste Fiscal Year ardous waste 52 % 63 % – 17.7 % GRI 306-4
Recycling & Recovery rate
% of total
Non-hazardous non-hazardous
waste Fiscal Year waste 95 % 95 % – 0.3 % GRI 306-4
% of construc-
Construction waste Fiscal Year tion waste 47 % 94 % – 50.4 % GRI 306-4
% of total waste
Landfill / other disposal rate Total (w/o construc-
(w/o construction) Fiscal Year tion) 8% 7% 3.0 % GRI 306-4
% of total waste
Landfill rate 1 Total (w/o construc-
(w/o construction) Fiscal Year tion) 3% n. a. GRI 306-4

1 Siemens without SHS.

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% of total waste
Total (w/o construc-
(w/o construction) Fiscal Year tion) 83 % n. a. GRI 306-4
Material Recycling rate 1 % of recy-
cled / recovered
Total waste total (w/o
(w/o construction) Fiscal Year construction) 88 % n. a. GRI 306-4

Water
Million ­cubic GRI 303-3,
Total Fiscal Year meter 15.0 15.3 – 1.8 % WEF
Other water with- Million ­cubic GRI 303-3,
drawal Fiscal Year meter 4.5 5.1 – 10.5 % WEF
Chemically un-
Water withdrawal changed cooling
water ­(returned
to receiving water
body chemically
unchanged, but Million ­cubic GRI 303-3,
warmed) Fiscal Year meter 10.5 10.3 2.5 % WEF
Million ­cubic
Total Fiscal Year meter 15.1 15.3 – 1.5 % GRI 303-4
Million ­cubic
Sanitary wastewater Fiscal Year meter 3.0 3.3 – 9.5 % GRI 303-4
Manufacturing Million ­cubic
­processes Fiscal Year meter 0.7 0.6 23.6 % GRI 303-4
Other (including Million ­cubic
losses) Fiscal Year meter 0.8 1.0 – 17.1 % GRI 303-4
Cooling water
­discharged as Million ­cubic
Wastewater ­wastewater Fiscal Year meter 0.1 0.2 – 61.0 % GRI 303-4
Total wastewater
(w/o chemically
unchanged cooling Million ­cubic
water) Fiscal Year meter 4.6 5.0 – 9.6 % GRI 303-4
Chemically un-
changed cooling
water ­(returned
to receiving water
body chemically
unchanged, but Million cubic
warmed) Fiscal Year meter 10.5 10.3 2.4 % GRI 303-4
Rate sites with implemented water GRI 303-1,
strategy 1 Total Sept. 30th % of sites 84 95 – 11.6 % WEF

Atmospheric pollutant emissions

Volatile Organic Compounds Total Fiscal Year metric tons 253 368 – 31.1 % GRI 305-7,
metric
tons (R11
Ozone-depleting substances Total Fiscal Year ­equivalent) 2 0.030 0.085 – 64.2 % GRI 305-6,
Nitrogen oxides Total Fiscal Year metric tons 92.8 94.4 – 1.6 % GRI 305-7 ,
1 Siemens without SHS.
2 R11 equivalent measures ozone depletion potential.

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Additional environmental topics

GRI 307-1,
SASB RT-EE-
Environment-related incidents Total Fiscal Year No. 14 16 – 12.5 % 150a2
GRI 307-1,
SASB RT-EE-
Total Fiscal Year No. 7 13 – 46.2 % 150a2
GRI 307-1,
Reportable spills Quantity reportable SASB RT-EE-
spills Fiscal Year kg 380 n. a. 150a2
GRI 307-1,
Quantity recovered SASB RT-EE-
spills Fiscal Year kg 346 n. a. 150a2
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 %

Product Stewardship

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 %
% of total rev-
Share of “Full-Scale Life Cycle enue (Sales to
Assessment (LCA)” revenue Total Fiscal Year 3rd. parties) 1 79 % 70 % 13.0 %
% of total rev-
Share of “Environment Product Declara- enue (Sales to
tions (EPD)” revenue Total Fiscal Year 3rd. parties) 1 71 % 71 % – 0.9 %
% of total rev-
Rate of products by revenue that contain enue (Sales to SASB RT-EE-
IEC 62474-declarable substances 2 Total Fiscal Year 3rd. parties) 67 % n. a. 410a1

SOCIAL
Working for Siemens 3
GRI 102-7,
SASB RT-
Siemens employees Total Sept. 30th No. ­(rounded) 303,000 293,000 3.4 % EE_000B

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.

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% of total
EMEA Sept. 30th employees 56.4 % 58.8 % – 4.1 % GRI 102-8
% of total
Americas Sept. 30th employees 20.5 % 19.3 % 6.2 % GRI 102-8
% of total
Asia / Australia Sept. 30th employees 23.2 % 21.9 % 5.9 % GRI 102-8
% of total GRI 102-8,
age group < 35 Sept. 30th employees 29.6 % 29.6 % 0.0 % WEF
% of total GRI 102-8,
Employee Structure
age group 35 – 44 Sept. 30th employees 29.9 % 29.7 % 0.7 % WEF
% of total GRI 102-8,
age group 45 – 54 Sept. 30th employees 23.5 % 23.9 % – 1.7 % WEF
% of total GRI 102-8,
age group > 54 Sept. 30th employees 17.0 % 16.8 % 1.2 % WEF
% of total GRI 102-8,
Blue-collar Workers Sept. 30th employees 17.4 % 18.7 % – 7.0 % WEF
% of total GRI 102-8,
White-collar Workers Sept. 30th employees 82.6 % 81.3 % 1.6 % WEF
GRI 102-7,
Average number of employees Total Fiscal Year No. ­ 295,582 294,468 0.4 % 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
% of total GRI 102-8,
Total Sept. 30th employees 26.7 % 26.2 % 1.9 % WEF
% of total GRI 102-8,
EMEA Sept. 30th employees 25.8 % 25.3 % 2.0 % WEF
Female employees
% of total GRI 102-8,
Americas Sept. 30th employees 28.2 % 27.6 % 2.2 % WEF
% of total GRI 102-8,
Asia / Australia Sept. 30th employees 27.7 % 27.4 % 1.1 % WEF
Total Sept. 30th No. ­(rounded) 29,900 27,200 9.9 %

Employees in management positions 1 % of total

management GRI 102-8,
Women Sept. 30th positions 19.6 % 18.4 % 6.5 % WEF
Employees with permanent working % of total GRI 102-8,
contract Total Sept. 30th employees 94.0 % 93.7 % 0.3 % WEF
GRI 401-1,
Total Fiscal Year No. ­(rounded) 34,400 25,200 36.5 % WEF
GRI 401-1,
EMEA Fiscal Year No. ­(rounded) 13,700 11,700 17.1 % WEF
GRI 401-1,
Americas Fiscal Year No. ­(rounded) 10,600 7,500 41.3 % WEF
Hirings GRI 401-1,
Asia / Australia Fiscal Year No. ­(rounded) 10,100 6,000 68.3 % WEF
GRI 401-1,
Women – Total Fiscal Year No. ­(rounded) 10,200 7,400 37.8 % WEF
No / other gender
­entry (miscella- GRI 401-1,
neous) Fiscal Year No. 12 n. a. WEF
1 Employees in management positions include all managers with disciplinary responsibility.

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% of average
number of GRI 401-1,
Total Fiscal Year employees 11.6 % 8.6 % 34.9 % WEF
% of average
number of
employees GRI 401-1,
EMEA Fiscal Year EMEA 8.0 % 6.8 % 17.6 % WEF
% of average
number of
employees GRI 401-1,
Americas Fiscal Year Americas 18.1 % 13.2 % 37.1 % WEF
% of average
number of em-
ployees Asia / GRI 401-1,
Asia / Australia Fiscal Year Australia 15.4 % 9.4 % 63.8 % WEF
% of average
number of
female em- GRI 401-1,
Women Fiscal Year ployees 13.2 % 9.7 % 36.1 % WEF
Hiring Rate % of average
number of
male employ- GRI 401-1,
Men Fiscal Year ees 11.0 % 8.1 % 35.8 % WEF
% of average
number em-
ployees in age GRI 401-1,
age group < 35 Fiscal Year group 26.8 % 18.8 % 42.6 % WEF
% of average
number em-
ployees in age GRI 401-1,
age group 35 – 44 Fiscal Year group 7.8 % 6.0 % 30.0 % WEF
% of average
number em-
ployees in age GRI 401-1,
age group 45 – 54 Fiscal Year group 4.4 % 3.4 % 29.4 % WEF
% of average
number em-
ployees in age GRI 401-1,
age group > 54 Fiscal Year group 2.3 % 2.0 % 15.0 % WEF
GRI 401-1,
Total Fiscal Year % of new hires 30.2 % 29.7 % 1.7 % WEF
GRI 401-1,
EMEA Fiscal Year % of new hires 28.6 % 28.6 % 0.0 % WEF
Female employees new hired
GRI 401-1,
Americas Fiscal Year % of new hires 33.5 % 32.2 % 4.0 % WEF
GRI 401-1,
Asia / Australia Fiscal Year % of new hires 28.9 % 28.7 % 0.7 % WEF
GRI 405-1,
Disabled employees Germany Sept. 30th No. (­rounded) 5,000 5,400 – 7.4 % WEF

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% of average
number of GRI 401-1,
Total Fiscal Year employees 9.7 % 8.4 % 15.5 % WEF
% of average
number of
Decision employee Fiscal Year employees 4.7 % 3.5 % 34.3 %
% of average
Turnover Rate 1
Other reasons (= not number of
decision empl.) Fiscal Year employees 5.0 % 4.8 % 4.2 %
% of number
Dismissals Fiscal Year of total exits 11.3 % 14.5 % – 22.1 %
% of total
Retiring expected number em-
within next 5 years 2 Sept. 30th ployees 10.3 % 10.0 % 3.0 %

Employees – use of working hour Part-time Sept. 30 th

No. ­(rounded) 13,800 13,900 – 0.7 % GRI 102-8
programs On leave of absence Sept. 30th No. ­(rounded) 6,300 6,200 1.6 %
Germany Sept. 30th No. ­(rounded) 83,600 87,700 – 4.7 % GRI 102-41
Employees represented by an indepen-
% of total
dent trade union or covered by collective
German em-
bargaining agreements
Germany Sept. 30th ployees 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 %
Average weekly standard working hours 3
Americas Sept. 30th Hours 41.0 41.1 – 0.2 %
Asia / Australia Sept. 30th Hours 41.9 41.5 1.0 %

Talent Entry Programs

GRI 404-2,
Community Total Sept. 30th No. 26 35 – 25.7 % WEF
Siemens CEO* Program
GRI 404-2,
Active participants Sept. 30th No. 5 5 0.0 % WEF
GRI 404-2,
Siemens Finance Excellence Program Community Total Sept. 30th No. 68 76 – 10.5 % WEF
(FEP) GRI 404-2,
Active participants Sept. 30th No. 7 10 – 30.0 % WEF
GRI 404-2,
Community Total Sept. 30th No. 910 1,134 – 19.8 % WEF
Siemens Graduate Program (SGP)
GRI 404-2,
Active participants Sept. 30th No. 76 64 18.8 % WEF

Employee Share programs

Employees participating in the Siemens
employee share plans Total (w/o SHS) Fiscal Year No. (rounded) 100,700 102,600 – 1.9 % GRI 401-2
% of
Total (w/o SHS) Fiscal Year employees 4 45 % 44 % 2.3 % GRI 401-2
Participation rate of employee share
% of ­Siemens
plans
Siemens Health- Healthineers AG
ineers AG Fiscal Year employees 52 % 50 % 4.2 % GRI 401-2

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.

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Pensions 1

Total Fiscal Year Million € 3,974 5,451 – 27.1 % GRI 401-2

Contributions to
defined contribution
Contributions to defined benefit plans, plans Fiscal Year Million € 484 710 – 31.8 % GRI 401-2
state plans and defined contribution Contributions to
plans state plans Fiscal Year Million € 1,449 1,844 – 21.4 % GRI 401-2
Employer
contributions to
defined benefit plans Fiscal Year Million € 2,041 2,898 – 29.6 % GRI 401-2

Training and development

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
Germany Sept. 30 th
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
Apprentices and dual students
Germany – for third
parties Sept. 30th No. (rounded) 1,000 900 11.1 % GRI 404-2
Germany – new
internals starting in
fiscal year Fiscal Year No. 1,085 1,161 – 6.5 % GRI 404-2
Average number of interns / students
with an educational / learning target (e.g.
mandatory internship, doctoral student) Total Fiscal Year No. 788 767 2.7 % GRI 404-2
GRI 404-2,
International Tech development Participants Fiscal Year No. 45 51 – 11.8 % WEF
­programs Number of home coun- GRI 404-2,
tries of participants Fiscal Year No. 17 15 13.3 % WEF
GRI 404-2,
Spend on education (apprenticeship) Total Fiscal Year Million € 153.1 159.0 – 3.7 % WEF
GRI 404-2,
Spend on employee training Total Fiscal Year Million € 164.8 161.9 1.8 % WEF
Spend on employee education and GRI 404-2,
training Total Fiscal Year Million € 317.9 320.9 – 0.9 % WEF
Spend on employee training per GRI 404-2,
­employee Total Fiscal Year € 573 551 4.0 % WEF
Spend on employee training per full time GRI 404-2,
employee Total Fiscal Year € 581 559 3.9 % WEF
GRI 404-1,
Total Fiscal Year No. 22 17 29.4 % WEF
GRI 404-1,
Digital learning Fiscal Year No. 19 11 72.7 % WEF
GRI 404-1,
On-site training Fiscal Year No. 3 6 – 50.0 % WEF
GRI 404-1,
Average training hours per employee
Women Fiscal Year No. 22 17 29.4 % WEF
GRI 404-1,
Men Fiscal Year No. 22 17 29.4 % WEF
GRI 404-1,
Blue-collar Workers Fiscal Year No. 12 7 71.4 % WEF
GRI 404-1,
White-collar Workers Fiscal Year No. 24 19 26.3 % WEF
1 Contains data from the discontinued Flender business and the new acquired Varian business.

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% to base year GRI 404-1,

Growth rate of learning hours to base Total Fiscal Year (2020) 28 % n. a. WEF
year % to base year GRI 404-1,
Digital learning Fiscal Year (2020) 71 % n. a. WEF
GRI 404-2,
Siemens Core Learning Paths (CLP) Total Fiscal Year No. 28 44 – 36.4 % WEF
Modules in Siemens digital global learn- GRI 404-2,
ing platform “My Learning World” Total Fiscal Year No. (rounded) 100,000 59,000 69.5 % WEF
Siemens Potential-Development GRI 404-2,
Programs (PDP) Total Fiscal Year No. 34 32 6.3 % WEF

Occupational health & safety

GRI 403-9,
Total Fiscal Year No. 4 1 300.0 % WEF
GRI 403-9,
Temporary Workers Fiscal Year No. 2 0 WEF
Fatalities – work related
GRI 403-9,
Employees Fiscal Year No. 0 0 WEF
GRI 403-9,
Contractors Fiscal Year No. 2 1 100.0 % WEF
GRI 403-9,
Total 1 Fiscal Year No. 0.001 0.000 WEF
GRI 403-9,
Fatality Rate – work related 2
Temporary Workers Fiscal Year No. 0.007 0.000 WEF
GRI 403-9,
Employees Fiscal Year No. 0.000 0.000 WEF
GRI 403-9,
Total Fiscal Year No. 22 n. a. WEF
High-consequence work-related injuries GRI 403-9,
(excluding fatalities) 3 Temporary Workers Fiscal Year No. 1 n. a. WEF
GRI 403-9,
Employees Fiscal Year No. 21 n. a. WEF
GRI 403-9,
Total Fiscal Year No. 0.007 n. a. WEF
GRI 403-9,
High-consequence injuries rate 4
Temporary Workers Fiscal Year No. 0.003 n. a. WEF
GRI 403-9,
Employees Fiscal Year No. 0.008 n. a. WEF
GRI 403-9,
Total Fiscal Year No. 1,572 n. a. WEF
GRI 403-9,
Recordable injuries
Temporary Workers Fiscal Year No. 247 n. a. WEF
GRI 403-9,
Employees Fiscal Year No. 1,325 n. a. WEF
GRI 403-9,
Total Fiscal Year No. 0.510 n. a. WEF
GRI 403-9,
Total recordable injuries rate 5
Temporary Workers Fiscal Year No. 0.828 n. a. WEF
GRI 403-9,
Employees Fiscal Year No. 0.476 n. a. WEF

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.

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GRI 403-9,
Total Fiscal Year No. 856 907 – 5.6 % WEF
GRI 403-9,
Lost time injuries (LTI)
Temporary Workers Fiscal Year No. 115 110 4.5 % WEF
GRI 403-9,
Employees Fiscal Year No. 741 797 – 7.0 % WEF
GRI 403-9,
Total Fiscal Year No. 0.278 0.303 – 8.3 % WEF
GRI 403-9,
Lost time injury frequency rate (LTIFR ) 1
Temporary Workers Fiscal Year No. 0.385 0.680 – 43.3 % WEF
GRI 403-9,
Employees Fiscal Year No. 0.266 0.281 – 5.3 % WEF
GRI 403-10,
Occupational Illness cases Essential Countries Fiscal Year No. 78+x 2 n. a. WEF
Occupational Illness frequency rate
(OIFR) Essential Countries Fiscal Year No. n. a. 3 n. a.
Fatalities due to occupational Illness Essential Countries Fiscal Year No. 8+x 2 n. a.
% of total
Rate of employees covered with OHS MS number
certificate Total Sept. 30th ­employees 59.5 % n. a. WEF

Corporate Citizenship
GRI 201-1,
Total Fiscal Year Million € 28.5 33.7 – 15.3 % WEF
% of Net GRI 201-1,
Total Fiscal Year Income 0.4 % 0.8 % – 46.9 % WEF
GRI 201-1,
Donations
EMEA Fiscal Year Million € 12.4 19.5 – 36.4 % WEF
GRI 201-1,
Americas Fiscal Year Million € 7.1 9.0 – 20.6 % WEF
GRI 201-1,
Asia /Australia Fiscal Year Million € 9.0 5.2 74.0 % WEF
GRI 201-1,
Total Fiscal Year Million € 12.1 n. a. WEF
GRI 201-1,
Sponsoring social programs EMEA Fiscal Year Million € 7.3 n. a. WEF
(e.g. arts and education) GRI 201-1,
Americas Fiscal Year Million € 3.3 n. a. WEF
GRI 201-1,
Asia /Australia Fiscal Year Million € 1.5 n. a. WEF
GRI 201-1,
Total Fiscal Year Million € 40.6 n. a. WEF
% of Net GRI 201-1,
Total Fiscal Year Income 0.6 % n. a. WEF
GRI 201-1,
Community investment total
EMEA Fiscal Year Million € 19.7 n. a. WEF
GRI 201-1,
Americas Fiscal Year Million € 10.5 n. a. WEF
GRI 201-1,
Asia / Australia Fiscal Year Million € 10.5 n. a. WEF
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.

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DEGREE FRAMEWORK – KPI OVERVIEW (figures generally without Siemens Healthineers)

Decarbonization
1,000 metric tons
CO2 Emission Scope 1 + 2 Total (incl. SHS) Fiscal Year of CO2 equivalents 595 678 – 12.2 %
% to base year
Supply Chain: Emission reduction to base year Total (w/o SHS) Fiscal Year (2020) 1 0.6 % n. a.

Ethics
Quota of participants of Business conduct guide- up to Sept. % of total number
line training (since FY 2020) Total (w/o SHS) 30th of employees 76 % n. a.

Governance

Resource efficiency
% of relevant
Quota of product families with robust eco-design Total (w/o SHS) Fiscal Year revenue 2 26 % n. a.
% of relevant
Purchase quota – Secondary material for metals Total (w/o SHS) Fiscal Year purchase volume 38 % n. a.
% of relevant
Purchase quota – Secondary material for plastics Total (w/o SHS) Fiscal Year purchase volume < 1.0 % n. a.
Landfill waste (w/o other disposal and w/o con-
struction waste) Total (w/o SHS) Fiscal Year 1,000 tons 7.0 n. a.

Equity
% of persons in
Female share in Top Management Total (w/o SHS) Sept. 30th Top Management 27.5 % 22.7 % 21.1 %
Share of employees with access to S
­ iemens em- % of total number
ployee share plans Total (w/o SHS) Fiscal Year of employees 3 98 % n. a.

Employability

Digital learning hours per employee Total (w/o SHS) Fiscal Year No. 17 7 142.9 %
% of total number
Level of access to employee assistance program Total (w/o SHS) Sept. 30th of employees 87 % 82 % 6.1 %
% to base year
Improvement in global LTIFR 4 to base year Total (w/o SHS) Fiscal Year (2020) 13 % n. a.

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

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Annex

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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 our in the Annual Report, such as revenues and the
sustainability 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 for
organization, initiatives, programs, management fiscal 2021. The Flender numbers had still been
systems, measures, and goals of sustainable corporate presented in fiscal 2020. Minority interests are not
governance. It supplements the financial reporting included in the report, as a general rule. Unless
provided in the current Annual Report and updates the otherwise 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 the operations. 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 the framework and the global non-financial programs
GRI Standards Comprehensive Option, as well as the and 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 the Given 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 accordance with national regulations concerning the compilation
with the principles set forth in the chapter on and definition of their key figures, which means that
Environmental Portfolio reporting principles. the generated data is not always comparable. Where
ENVIRONMENTAL PORTFOLIO REPORTING PRINCIPLES. applicable, we point out any significant limitations
in 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 the
fully consolidated companies are covered by the Environmental Portfolio, for example. As a result, the
report. Only the company Varian Medical System Inc. data published by us may not be comparable with

SIEMENS SUSTAINABILIT Y REPORT 2021 131

7.1 Reporting methodology

the data published by other companies under the on the basis of environmental data collected on a
same or similar designations. quarterly basis.

The data presented in this report is collected via Collection of data on selected areas of
various internal reporting systems which are for the impact (business-to-society contributions)
most part different from those used to collect the Strengthening the economy – Economic
financial information presented in our consolidated impact
financial statements. In particular, the internal An external service provider has analyzed global gross
reporting systems used to collect the information value-added (measured as the contribution to gross
presented in this report may be subject to less domestic product [GDP]) and the related employment
stringent internal documentation, data generation, (expressed as number of jobs) and assessed the
and 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 the in the economy and represents the difference
collection of the data published in this report without between the value of goods and services sold and the
prior notice. Due to rounding, some of the numbers value of the goods and services used as an input to
presented in this report may not add up exactly to their 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. level. The sum of the gross value-added contributions
of all economic sectors is equivalent to a country’s
Methodology: environmental reporting GDP. The contribution to GDP and employment is
and collection of environmental data divided into three levels:
Within our environmental information system, we
evaluated 237 reports from locations in all relevant → Direct contribution: The increase in GDP and
countries 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 such worldwide increase in GDP and employment
as energy consumption in gigajoules to measure and caused by Siemens’ demand for goods and
monitor our environmental impacts. We report services from its global suppliers and their
environmental data for continued operations. Values suppliers. This is often referred to as the “indirect
have been extrapolated to 100 % coverage in order contribution.”
to reflect total consumption. The extrapolation is → Employee spend contribution (induced): The
conducted on the basis of the area not covered in the worldwide increase in GDP and employment in
reporting system. The difference represents a share the wider economy resulting from the spending
of 18 %. In fiscal 2021, we adjusted the methodology of salary and wages by employees of Siemens
applied to calculate the primary and secondary and its suppliers. This is often referred to as the
energy 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 all

environmentally relevant office and production sites

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7.1 Reporting methodology

This analysis was initially conducted in 2015 and Independent assurance

updated in fiscal 2019 for Siemens excluding Siemens Our sustainability reporting is subject to high quality
Energy. The direct contributions were calculated on standards. As in the previous years, therefore, we
the basis of Siemens data. The indirect and induced commissioned an independent audit firm to conduct
contributions were estimated with the aid of a a 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 are
chapter OUR MOST IMPORTANT AREAS OF IMPACT was presented in the chapter INDEPENDENT AUDITOR’S

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 the
installed base of imaging and advanced therapy
equipment and the number of laboratory tests sold.
Based on available usage data and expert estimates,
the assumptions applied in performing the
calculations 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 with
similar core technologies but various deployment
scenarios (e.g., cloud versus workstation, live versus
postprocessing) are counted as separate units.

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7.2 Environmental Portfolio reporting principles

7.2

Environmental Portfolio reporting

principles

Environmental Portfolio Guideline Scope of reporting

Because there were no generally accepted The Environmental Portfolio-related key performance
international standards addressing the identification indicators are revenue and the reduction of our
and reporting of so-called “green products” until the customers’ carbon dioxide emissions attributable to
introduction of the EU Taxonomy Regulation as of elements 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 emissions is calculated by comparing the
emissions achieved at our customers in accordance Environmental Portfolio elements with a reference
with the internal regulations defined in our solution. 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 installed
in 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 typically
of revenue. It is based on the Reporting Principles set long-lasting products (such as motors) or
forth in “A Corporate Accounting and Reporting infrastructure elements such as trains that contribute
Standard – Revised Edition” and the “GHG Protocol for to the reduction of carbon dioxide emissions not only
Project Accounting” issued by the Greenhouse Gas in the reporting year, but for many years. For this
Protocol Initiative. These principles are: relevance, reason, we also calculate the accumulated annual
completeness, 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 the emissions is calculated as the reduction of our
revenue recognition policies explained in 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 of
fiscal 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 reduction
of carbon dioxide emissions in the respective
reporting period.

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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 of Portfolio element cannot be accurately separated
carbon dioxide emissions over the entire reporting from our total revenue, the respective revenue is not
period, irrespective of the actual date of installation presented and reported due to the principle of
during 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 to
processes and criteria. the composition of the Environmental Portfolio every
year. Another task of the Sustainability Board is to
In principle, the products, systems, solutions, and discuss potential concerns of external stakeholders
services of the Siemens operating units in the with 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 business
portfolio is reviewed every year to ensure the Criteria for the addition of elements to
appropriate qualification of Environmental Portfolio the Environmental Portfolio
elements based on the criteria described in the An Environmental Portfolio element can be a product,
following. Newly integrated elements are included in system, solution, or service, as defined above.
the report as of the date when they were added.
Elements that no longer fulfill our qualification If all the products, systems, solutions, or services of
criteria are removed from the Environmental Portfolio; a Siemens organizational unit meet one of the
prior 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 process solution may qualify as an Environmental Portfolio
and reviewed by the respective Siemens entities and element if the component provided by Siemens is key
the Sustainability Department. to enabling the system or solution to generate an
environmental benefit. This means that the
Within this process, Siemens verifies the completeness environmental functionality of the overall system or
of documentation supporting the fulfillment of the solution cannot be achieved without the component
qualification criteria. It also looks for any significant provided by Siemens. Examples of core components
adverse 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, the Siemens product, system, or solution qualifies as an
corresponding element is not added to the Environmental Portfolio element, the revenue and
Environmental Portfolio. where applicable, the annual reduction of our
customers’ 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 of This criterion is met by technologies in the field of
“value-added services,” the revenue and where renewable 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 and renewable energy criterion covers technologies for
reported if the service itself qualifies as an power generation from wind and biomass, for
Environmental Portfolio element by meeting one of example.
the selection criteria described below.
Examples of such Environmental Portfolio elements
To qualify for inclusion in the Environmental Portfolio, include smart metering and grid applications.
an element must meet one of the following selection
criteria. Products, systems, solutions, and services to Determination of the reference solution:
be used for military or nuclear power purposes are Baseline methods
not included in the Environmental Portfolio. Energy efficiency and the annual reduction of our
customers’ 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 the
in energy efficiency of 20 % or more during the reference solution: before-and-after comparison,
customer use phase compared to the applicable direct comparison with a reference technology, or
baseline, or a reduction of at least 100,000 metric comparison 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 the
period in the customer use phase compared to the respective 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 the
would 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 the or 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 per of which are improved or replaced by the use of
reporting 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 the
energy consumption of a building is improved, for
example.

1 According to the National Institute of Standards and Technology

(NIST) – Smart Grid Interoperability Standards Project (USA), the
term 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 and
distributed 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, and
other 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 a
to the difference between Siemens products, systems, baseline. For this calculation, we focus on those
solutions, or services and either an appropriate other elements that have a material impact on the overall
technology or predecessor system. Direct comparison reduction of carbon dioxide emissions.
with a reference technology presupposes the
existence of alternative or predecessor products, Emission factors considered for
systems, solutions, or services in the market, which calculating the annual reduction of
are employed for the same or a similar purpose. An carbon dioxide emissions
example is the comparison of passenger or freight rail For some emission reduction calculations, the
transport with air or road transport. baseline reference for the installed base is determined
using known global emission factors such as those
Comparison with the installed base for power production. The baselines used for our
Comparison with the installed base refers to the calculations are mainly based on data from the
difference 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 the
installations employed for the same or a similar Intergovernmental Panel on Climate Change (IPCC)
purpose. Comparison with an installed base for 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 and
Baseline for
motors without frequency converters. Emission factor Environmental Portfolio
Category (g CO2/kWh) elements

Global power generation

When calculating emission reductions compared to from all primary energy
the baseline, we consider either direct savings (due carriers 519 Energy conversion
to the use of efficient motors, for example) or the Global power generation
from fossil energy
indirect effects that occur when different products in
carriers 809 Renewable energy
a system interact and generate emission reductions Use of electricity
(such as building automation components, for (including transmission All kinds of electricity
losses) 558 use except trains
example). If Siemens only delivers core components
but not the entire system, the annual reduction of Source: IEA (IEA World Energy Outlook 2020 with 2020 factors for the current year and
2019 factors for the previous year), own calculations.
carbon 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 technical
innovations or regulatory changes.

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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 that
unless the specific conditions of a solution require the may 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 of emissions, the assessment of the service life of the
electricity, based on the global energy generation Environmental Portfolio elements, internal
from all primary energy carriers, as the baseline for assessments of our own production efficiency factors,
calculating the annual reduction of carbon dioxide the share of a core component, and expert estimates
emissions 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 comparable
with respect to power generation and electrical with the data published by other companies under
applications; however, we include other greenhouse the same or similar designations. We report the
gases in our calculations if they occur in technical annual reduction of carbon dioxide emissions in the
applications. period when the Environmental Portfolio element
was installed. The installation period is defined by
For some Environmental Portfolio elements, we do milestones or determined on the basis of estimated
not know the exact parameters of use by our construction phases. This may differ from the timing
customers. In these cases, therefore, we apply of revenue recognition.
internal and external expert estimates, with due
regard to the principle of conservatism. In addition, the revenue generated from our
Environmental Portfolio and the reduction of our
Estimates applied for reporting purposes customers’ annual carbon dioxide emissions are
To date, there are no generally valid international subject to internal documentation and review
standards applicable to all companies for the requirements which are less complex than those
qualification of products, systems, solutions, and applied to our financial information. We may change
services for environmental and climate protection or our policies for the recognition of revenue from our
for the registration and calculation of the revenues Environmental Portfolio and the reduction of our
and 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 the

Environmental Portfolio is based on criteria,
methodologies, and assumptions 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 the
released a voluntary framework for companies to successful adoption of a 1.5°C-aligned climate target,
report their own climate-related risks and which has been validated by the Science Based
opportunities and disclose the corresponding Targets Initiative (SBTi), as well as the
information to investors, lenders, insurers, and other operationalization of the DEGREE framework and the
stakeholders. This Annex provides an overview of the materiality analysis as the basis for the further
activities conducted by Siemens on the basis of these development 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 the
Managing Board and the senior management in the
Our climate action governance form 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 by that is monitored on a regular basis.
our Chief Sustainability Officer (CSO). The CSO is a
member of the Siemens Managing Board and chairs In addition to strategic sustainability activities, the
the Siemens Sustainability Board (SSB), which Managing Board is also responsible for operational
consists of representatives of the businesses, environmental protection. The responsibility for the
countries, and units with governance responsibilities implementation of environmental guidelines is
(technical and professional functions). The SSB is the defined in the EHS Principles, an internal Managing
central steering committee for the strategic Board guideline. The EHS Global Board, which
development of sustainability at Siemens, and makes consists of specialized experts, develops
decisions regarding key sustainability matters. Where environmental protection measures and programs
necessary, the Managing Board addresses and advises the responsible Managing Board member
sustainability-related risks and opportunities of in 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: SUSTAINABILIT Y REPORT, CHAPTER

such as the decision to become carbon-neutral by ON SUSTAINABILIT Y MANAGEMENT, CDP C1, DEGREE

2030. The SSB is therefore also responsible for our

strategic measures in the areas of sustainability and Governance on the Business and
climate protection along the entire value chain. For Management level
example, it was the Managing Board that adopted The Sustainability Director of Siemens heads the
the 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 the
goals, including the decarbonization of Siemens’ SSB. The Sustainability Department is responsible for
own operations (Scope 1 and 2) and the company’s defining the sustainability strategy of Siemens and
upstream supply chain (Scope 3). Climate change coordinating the climate neutrality program, among

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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 our
sustainability 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 well sustainability) 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, and environment, which could quickly restore a more
systems, they must also take account of business positive 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 the
businesses and countries are supported by trend toward a low-carbon economy. Siemens also
Sustainability Managers whom they appoint. These welcomes and supports, from an opportunity
Sustainability Managers maintain close contact with perspective, 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 or
sustainability network also includes specialist Sustainable Finance Initiative. COMBINED MANAGEMENT

functions such as Environment, Health, and Safety REPORT CHAPTER 8.4 OPPORTUNITIES

(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 circular technology) and physical climate risks are assessed
economy by means of responsible product design, as part of the risk process. We have identified an
environmental protection, and resource conservation. increasing sustainability focus as a risk. The increasing
The EHS Department also supports the business units environmental, social, and governance requirements
in 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 business could result in additional costs. A negative public
units in their efforts to promote decarbonization in perception could lead to reputational damage and
the 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, CHAPTER of rules and associated with this, an optimized due
ON ENVIRONMENT AND SUSTAINABILIT Y MANAGEMENT, diligence process. This supports the Siemens
CDP C1, PRODUCT ECO EXCELLENCE PROGRAM, DEGREE businesses with due diligence in the customer-
oriented environment with a view to possible
Our strategic response to climate-related environmental and social risks as well as related
opportunities and risks human rights and reputational risks. COMBINED

Climate-related opportunities and risks MANAGEMENT REPORT CHAPTER 8.3 RISKS

We have officially defined sustainability as an

additional strategic imperative for our investment Climate change and climate protection measures are
decisions: from company acquisitions to customer important issues for our stakeholders. We therefore
projects. As a global technology company and help 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

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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. CLIMATE

energy costs, and enhance their profitability by way PROTECTION AND SUPPLY CHAIN and COMBINED

of higher productivity. In fiscal 2021, we reduced our MANAGEMENT REPORT, SUSTAINABILIT Y STRATEGY

customers’ CO2 emissions by 88 million tons through

all Environmental Portfolio elements installed and Management 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, the Framework. As an essential element of the new
new EU taxonomy will introduce a classification DEGREE framework, specifically in the field of
system 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, we risk 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 our in 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 from
challenges and harnesses new technologies global studies, weather statistics, and trends, which
associated with grid edge and electrification by are based on international experience and the data
offering products and solutions for distributed energy of primary insurers and reinsurers. However, these
systems, photovoltaic inverters, energy storage, risks would have only led to immaterial changes in
smart, 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 and
digitalization. We have set ourselves the goal of continually adjust our protection concepts to mitigate
making our own operations carbon-neutral by the identified 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 by risk analysis with particular attention to natural
more than half compared to 2014. Compared to the hazards, which influences the selection process for
fiscal 2020, we reduced our Scope 1 and Scope 2 new sites and for technical, organizational, and
emissions by a further 83 kt CO2 or 12 % in 2021. Our physical protection measures. The collected data and
ambitious 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 parameters
risks and increase our resilience and energy that 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 to sites in Regensburg as a precautionary measure to
calculate the upstream greenhouse gases of our protect against heavy rainfall events. Among other
suppliers and are working intensively on methods to measures, we will install additional emergency
calculate the exact CO2 footprints of our suppliers and overflow 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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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 the
physical risks also in order to meet the rising demands resilience of our supply chain in times of major crises
of a changing insurance market with lower coverage with 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: SUSTAINABILIT Y REPORT,

providers, we annually assess more than 80 % of our CHAPTER ON CLIMATE PROTECTION, SUSTAINABILIT Y IN THE

insurance values with regard to fire protection, as well SUPPLY CHAIN ; COMBINED MANAGEMENT REPORT CHAPTER 8.3

as natural disasters such as storms, floods, and AND 8.4, CDP C2 AND C3

hurricanes. 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 of Different climate scenarios are used at Siemens for
this analysis. In Europe, we particularly analyzed different purposes, such as the business strategy, the
flooding risks. By contrast, our sites in the United decarbonization strategy, and the identification of
States, the Philippines, and Japan are exposed to the opportunities 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 and
We share the results with the insurance market in the therefore the Paris Agreement. Decarbonization will
interest of insurability and optimized, risk-adjusted change the entire energy value chain in the coming
premiums. In addition, and in accordance with our decades. By providing innovative technologies, we
EHS management system, we have defined measures see ourselves as a leading decarbonization partner to
for the identified locations such as the installation of our customers and society in general. To fulfill this
flood barriers and the reinforcement of roofs. role, we must have an exact understanding of the
technological changes that must be made in the next
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 globally of IHS Markit, IEA, and Bloomberg NEF for planning
obligatory EHS Guidelines, every ecologically relevant our business strategy and identifying company-wide
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 analytical developments, 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 in With a view to our own business, the analysis of
relation to regional water risks. Locations found to climate-related scenarios enables us to predict the
have 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 and
implemented 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 our developed, extensive multimodal simulation tool and
supply 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 with only few single-source suppliers. and IEA. Our business units also conduct business-
Nonetheless, we analyze potential supply chain specific scenario analysis. Experts of Siemens SI have

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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 fully
of 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 a
robustness of our program to reduce our CO2 comprehensive, interactive and management-
emissions with reference to external energy price oriented Enterprise Risk Management (ERM)
scenarios and the real development of energy prices approach that is integrated into the organization and
and adjust our measures as needed. that addresses both risks and opportunities. Our ERM
approach is based on the globally accepted COSO
Additional information: CDP C3.2 Standard (Committee of Sponsoring Organizations
of the Treadway Commission) Enterprise Risk
Our risk management approach to Management – Integrating with Strategy and
climate-related opportunities and risks Performance (2017) and the ISO (International
Basic principles of risk management Organization for Standardization) Standard 31000
Our risk management policy stems from a philosophy (2018) and is adapted to Siemens requirements. The
of 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
and opportunities and avoiding inappropriate risks. system. They consider a company’s strategy, the
As risk management is an integral part of how we efficiency and effectiveness of its business operations,
plan and execute our business strategies, our risk the reliability of its financial reporting and compliance
management policy is set by the Managing Board. Our with relevant laws and regulations to be equally
organizational and accountability structure requires important.
each of the respective managements of our
organizational units to implement risk management Our ERM process aims for early identification and
programs that are tailored to their specific industries evaluation of, and response regarding, risks and
and responsibilities, while being consistent with the opportunities that could materially affect the
overall policy. achievement of our strategic, operational, financial
and compliance objectives. The time horizon is
Enterprise 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 and
in the early recognition of developments that could controls. If risks have already been considered in
jeopardize the continuity of our business. The most plans, budgets, forecasts or the consolidated
important of these systems include our enterprise- financial statements (e.g. as a provision or risk
wide processes for strategic planning and contingency), they are supposed to be incorporated
management reporting. Strategic planning is with their financial impact in the entity’s business
intended to support us in considering potential risks objectives. As a consequence, only additional risks
and opportunities well in advance of major business arising from the same subject (e.g. deviations from
decisions, while management reporting is intended business objectives, different impact perspectives)
to enable us to monitor such risks more closely as our should be considered. In order to provide a
business progresses. Our internal auditors regularly comprehensive 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 a
elimination. This coordination of processes and quarterly cycle; we complement this periodic

SIEMENS SUSTAINABILIT Y REPORT 2021 143

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, even
to escalate critical issues in a timely manner. Relevant before the bidding phase. Furthermore, we maintain
risks and opportunities are evaluated in terms of appropriate insurance levels for potential cases of
impact and likelihood, considering different impact damage and liability risks in order to reduce our
perspectives, including business 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 is of fluctuation in economic activity and customer
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 and and by adjusting capacity and implementing cost-
opportunities are discussed at different management reduction measures in a timely and consistent
levels and are included in the subsequent reporting manner if they are deemed necessary. Worldwide
process, if found to be relevant. The topics of there are risks from the transmission of infectious
sustainability and especially climate change have agents from animals to humans, from humans to
been specifically addressed in the last few years. humans and in other ways. Epidemic, pandemic or
Reported risks and opportunities are analyzed other infectious developments such as bioterrorism
regarding potential cumulative effects and are to cause high disease rates in countries, regions or
aggregated within and for each of the organizational continents. We constantly check information from
units mentioned above. the World Health Organization (WHO), the - Centers
for Disease Control and Prevention in the U.S. and
Responsibilities are assigned for all relevant risks and Europe, the Robert Koch Institute in Germany and
opportunities, with the hierarchical level of other institutions in order to be able to identify early
responsibility depending on the significance of the epidemic or pandemic risks and determine and
respective 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: COMBINED MANAGEMENT REPORT

strategies. Our general response strategies with CHAPTER 8

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” the management system
relevant opportunity. In a second step, responsibility Climate-related risks and opportunities are
for 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 especially
strategy. These response measures have to be climate risks and opportunities is an integral part
specifically tailored to allow for effective risk of the regular top-down process in which material
management. Accordingly, we have developed a issues and trends are assigned to the
variety of response measures with different corresponding units for the identification of risks
characteristics. For example, we mitigate the risk of and opportunities in risk workshops. As a result,
fluctuations in currency and interest rates by these issue-related recommendations are made
engaging in hedging activities. Regarding our available to all businesses in their quarterly
projects, systematic and comprehensive project reviews. 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 the
execution and complemented by clearly defined associated risks and opportunities.
approval processes, assists us in identifying and

SIEMENS SUSTAINABILIT Y REPORT 2021 144

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 the
within 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, to
risks for ERM reporting. These processes are, for neutralize unavoidable emissions. An Offsetting
example, applied within the environmental Guidance Note has laid the basis for purchasing
management system, including the corresponding CO2 certificates. This guidance is meant to ensure the
risk assessment of environmental impacts on our consistency and quality of offset programs.
production 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 and
aggregated basis within the abovementioned four joining the RE100, EV100, and EP100. Key elements
topic areas in the company’s Annual Report. of the management approach include the
incorporation of CO2 reduction targets in the
Additional information: COMBINED MANAGEMENT REPORT company’s operating activities into the long-term
CHAPTER 8, CDP C2.1 AND C2.2, SUSTAINABILIT Y REPORT, incentive (LTI) of the senior management and the
CHAPTER ON ENVIRONMENT responsibility of the businesses for reducing their
respective emissions. Thus, our commitment to
Metrics and targets climate protection is firmly embedded in the
Siemens considers climate-related risks along the compensation of Managing Board members and
entire value chain. Accordingly, we define metrics for senior management.
the reduction of greenhouse gas emissions in the
supply chain, in the company’s own operations, and Additional information: GOVERNANCE, ENVIRONMENT,

for the goods and services we provide to our CDP C4, C6, C7 AND C9, COMBINED MANAGEMENT REPORT

customers. We disclose our greenhouse gas emissions CHAPTER 10 COMPENSATION REPORT

and the associated risks and opportunities.

ENVIRONMENT AND CDP C4

Siemens was the first global industrial company to

commit to the goal of climate neutrality in 2015. By
joining the Science Based Targets Initiative (SBTi) and
committing 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 to
reducing 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 zero
by the year 2050. A number of ongoing activities will

SIEMENS SUSTAINABILIT Y REPORT 2021 145

 7.4 GRI Standards – key topics and boundaries

7.4

GRI Standards – key topics and

boundaries

Sustainability topics SDGs DEGREE GRI Standard

Climate protection 1 D ECARBONIZATION GRI Standard 302

Energy
GRI Standard 305
Emissions

Sustainable product R ESOURCE

 EFFICIENCY GRI Standard 204
design and life cycle Procurement Practices
management 1 GRI Standard 301
Materials

Innovation and D ECARBONIZATION GRI Standard 201

business model 2 R ESOURCE EFFICIENCY Economic Performance

Partner management D ECARBONIZATION GRI Standard 203

and collaboration 2 G OVERNANCE Indirect Economic Impacts

Responsible G OVERNANCE GRI Standard 201

governance 2 Economic Performance
Shared value

GRI Standard 202

Dimension

Market Presence

Future of work 2 E QUIT Y GRI Standard 401

E MPLOYABILIT Y 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

Sustainable handling of R ESOURCE EFFICIENCY GRI Standard 301

natural resources and Materials
material efficiency 2 GRI Standard 302
Energy
GRI Standard 303
Water and Effluents (2018)
GRI Standard 306
Waste (2020)

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

SIEMENS SUSTAINABILIT Y REPORT 2021 146

 7.4 GRI Standards – key topics and boundaries

Sustainability topics SDGs DEGREE GRI Standard

Social and ecological G OVERNANCE GRI Standard 414

standards in the supply Supplier Social Assessment
chain 1 GRI Standard 308
Supplier Environmental
Assessment

Cyber-security and E THICS GRI Standard 201

data management 2 Economic Performance

Employee health and E MPLOYABILIT Y GRI Standard 403

safety 2 Occupational Health and
Safety (2018)

Diversity, equity and E QUIT Y GRI Standard 405

inclusion 2 Diversity and Equal Opportunity
GRI Standard 406
Non-Discrimination

Customer safety and G OVERNANCE GRI Standard 301

Responsibility
Dimension

product quality 2 Materials

Corporate governance and G OVERNANCE GRI Standard 413

sustainability leadership 2 Local communities

ESG risk management 2 G OVERNANCE GRI Standard 201

E THICS Economic Performance

Compliance management 2 G OVERNANCE GRI Standard 205

E THICS Anti-Corruption
GRI Standard 206
Anti-Competitive Behavior
GRI Standard 307
Environmental Compliance
GRI Standard 408
Child Labor
GRI Standard 409
Forced or Compulsory Labor
GRI Standard 412
Human Rights Assessment
GRI Standard 419
Socioeconomic Compliance

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

SIEMENS SUSTAINABILIT Y REPORT 2021 147

7.5 WEF IBC Metric

7.5

WEF IBC Metric

Pillars Theme Core metrics Reference Omission

Setting purpose Sustainability Report
Principles of Governing
purpose The company’s stated purpose, as the expression of the means by 2021
Governance
which a business proposes solutions to economic, environmental, Siemens at a glance
and social issues. Corporate purpose should create value for all p.11ff
­stakeholders, including shareholders.

Quality of Governance body composition Annual Financial Report

governing Composition of the highest governance body and its committees 2021
body by: Annual Financial
competencies relating to economic, environmental, and social ­Statements 6.
topics; executive or non-­executive; independence; tenure on the Notes 31 Members of the
governance body; number of each individual’s other significant Managing Board and Su-
positions and commitments, and the nature of the commitments; pervisory Board p. 127ff
gender; membership of underrepresented social groups; stake- HT TPS://[Link].
holder representation. COM/GLOBAL/EN/COMPA-
NY/ABOUT/MANAGEMENT.
HTML , HT TPS://NEW.
[Link]/GLOBAL/
EN/COMPANY/ABOUT/
SUPERVISORYBOARD/COM-
MIT [Link]

Stakeholder Material issues impacting stakeholders Sustainability Report

engagement A list of the topics that are material to key stakeholders and the 2021
company, how the topics were identified, and how the stakehold- Materiality assessment
ers were engaged. p. 37ff

Ethical Anti-corruption Sustainability Report

behaviour 1. T
 otal percentage of governance body members, employees, and 2021
business partners who have received training on the organiza- Compliance p. 48ff
tion’s anti-corruption policies and procedures, broken down by Our sustainability
region. ­indicators p. 118ff
a) Total number and nature of incidents of corruption confirmed
during the current year, but related to previous years; and
b) 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 improve
the broader operating environment and culture, in order to com-
bat corruption.

Protected ethics advice and reporting mechanisms Sustainability Report

A description of internal and external mechanisms for: 2021
1. Seeking advice about ethical and lawful behaviour and Compliance p. 48ff
­organizational integrity; Our sustainability
2. Reporting concerns about unethical or unlawful behaviour and indicators p. 118ff
lack of organizational integrity.

Risk and Integrating risk and opportunity into business process Annual Financial Report
opportunity Company risk factor and opportunity disclosures that clearly 2021
oversight identify the principal material risks and opportunities facing the Combined Management
company ­specifically (as opposed to generic sector risks), the Report 8.
company appetite in respect of these risks, how these risks and Report on expected de-
opportunities have ­moved over time, and the response to those velopments and associat-
changes. These opportunities and risks should integrate material ed material opportunities
economic, environmental, and social issues, including climate and risks p. 26ff
change and data stewardship.

SIEMENS SUSTAINABILIT Y REPORT 2021 148

7.5 WEF IBC Metric

Pillars Theme Core metrics Reference Omission

Greenhouse gas (GHG) emissions Sustainability Report
Planet Climate
change For all relevant greenhouse gases (e.g., carbon dioxide, methane, 2021
nitrous oxide, F-gases, etc.), report in metric tonnes of carbon Climate action p. 76ff
dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 Conserving recources
emissions. p. 83ff
Estimate and report material upstream and downstream Our sustainability
(GHG Protocol Scope 3) emissions where appropriate. indicators p. 118ff

TCFD implementation Sustainability Report

Fully implement the recommendations of the Task Force on 2021
­Climate-related Financial Disclosures (TCFD). If necessary, disclose ­ Task Force on Climate-
a timeline of at most three years for full implementation. Related financial Disclo-
Disclose whether you have set, or have committed to set, GHG sures (TCFD) p. 139ff
emissions targets that are in line with the goals of the Paris Agree-
ment – to limit global warming to well below 2°C above preindus-
trial levels and pursue efforts to limit warming to 1.5°C – and to
achieve net zero emissions before 2050.

Nature loss Land use and ecological sensitivity We are on the

Report the number and area (in hectares) of sites owned, leased, way to further
or managed in or adjacent to protected areas and/or key biodiver- develop our
sity areas (KBA). biodiversity
KPI, so that
we can report
these param-
eters in the
future

Freshwater Water consumption and withdrawal in water-stressed areas Sustainability Report

availability Report for operations where material: megalitres of water with- 2021
drawn, megalitres of water consumed, and the percentage of Conserving recources
each in regions with high or extremely high baseline water stress, p. 83ff
according to WRI Aqueduct water risk atlas tool. Our sustainability
Estimate and report the same information for the full value chain indicators p. 118ff
(upstream and downstream) where appropriate.

SIEMENS SUSTAINABILIT Y REPORT 2021 149

7.5 WEF IBC Metric

Pillars Theme Core metrics Reference Omission

Diversity & inclusion (%) Sustainability Report 2021
People Dignity and
equality Percentage of employees per employee category, by age group, Diversity, Equity & Inclu-
­gender, and other indicators of diversity (e.g. ethnicity). sion p. 100ff
Our sustainability
indicators p. 118ff

Pay equality (%) Sustainability Report 2021 Siemens

Ratio of the basic salary and remuneration for each employee Working at Siemens pursues the
­category by significant locations of operation for priority areas of p. 94ff principle of
equality: women to men, minor to major ethnic groups, and other Our sustainability performance-­
relevant equality areas. indicators p. 118ff related
compensa-
tion – regard-
less of gender.
Remuneration
data is regard-
ed confiden-
tial and is
therefore not
reported.

Wage level (%) Siemens pur-

Ratios of standard entry-level wage by gender compared to local sues the prin-
minimum wage. ciple of perfor-
Ratio of the annual total compensation of the CEO to the median mance-related
of the annual total compensation of all its employees, except the compensa-
CEO. tion – regard-
less of gender.
Remuteratiom
data is regard-
ed confidential
and is not
reported

Risk for incidents of child, forced, or compulsory labour Sustainability Report 2021
An explanation of the operations and suppliers considered to have Human Rights p. 56ff
significant risk for incidents of child labor, forced, or compulsory Sustainable supply chain
labor. Such risks could emerge in relation to: practice p. 62ff. Business
a) type of operation (such as manufacturing plant) and type of Conduct Guidelines:
supplier; and HTTPS://[Link].

b) countries or geographic areas with operations and suppliers [Link]/SIEMENS/AS-

­considered at risk. SETS/API/UUID:5C242542-

E991-4B97-AF63-090AD-
509BE74/2021-SAG-BCG-
[Link]

Health and Health and safety (%) Sustainability Report 2021

well-being The number and rate of fatalities as a result of work-related injury; Occupational health and
high-consequence work-related injuries (excluding fatalities); safety management
recordable work-related injuries; main types of work-related injury; p. 106ff
and the number of hours worked. Our sustainability
An explanation of how the organization facilitates workers’ access indicators p. 118ff
to non-occupational medical and healthcare services, and the
scope of access provided for employees and workers.

Skills for the Training provided (#, $) Sustainability Report 2021

future Average hours of training per person that the organization’s Professional education
­employees have undertaken during the reporting period, by and lifelong learning
gender and employee category (total number of hours of training p. 103ff
provided to employees divided by the number of employees). Our sustainability
Average training and development expenditure per full-time indicators p. 118ff
­employee (total cost of training provided to employees divided by
the number of employees).

SIEMENS SUSTAINABILIT Y REPORT 2021 150

7.5 WEF IBC Metric

Pillars Theme Core metrics Reference Omission

Absolute number and rate of employment Sustainability Report
Prosperity Employment
and wealth 1. Total number and rate of new employee hires during the report- 2021
generation ing period, by age group, gender, other indicators of diversity Professional education
and region. and lifelong learning
2. Total number and rate of employee turnover during the report- p. 103ff
ing period, by age group, gender, other indicators of diversity Our sustainability
and region. indicators p. 118ff

Economic contribution Siemens Annual Financial

1. Direct economic value generated and distributed (EVG&D), on Report 2021
an accruals basis, covering the basic components for the organi- Consolidated Financial
zation’s global operations, ideally split out by: Statements 41ff
– 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 mon-
etary value of financial assistance received by the organization
from any government during the reporting period.

Financial investment contribution Annual Financial Report

1. Total capital expenditures (CapEx) minus depreciation, support- 2021
ed by narrative to describe the company’s investment strategy. Consolidated Financial
2. Share buybacks plus dividend payments, supported by narrative Statements 6.
to describe the company’s strategy for returns of capital to Note 19 Equity p. 67
shareholders. Annual Financial
Statements 3.
Note 15 Shareholder's
Equity p. 120ff

Innovation Total R&D expenses Sustainability Report

of better Total costs related to research and development 2021
products Research & Development
and services p. 32ff

Community Total tax paid Annual Financial Report

and social The total global tax borne by the company, including corporate 2021
vitality income taxes, property taxes, non-creditable VAT and other sales Consolidated Financial
taxes, employer-paid payroll taxes, and other taxes that constitute Statements 6.
costs to the company, by category of taxes. Note 2 Material account-
ing policies and critical
accountig estimates
p.46ff
Note 7 Income Taxes
p. 53ff
Annual Financial
­Statements 3.
Note 13 Deffered tax
assets p. 119

SIEMENS SUSTAINABILIT Y REPORT 2021 151

7.6 SASB – Electrical Electronic Equipment Index

7.6

SASB – Electrical Electronic

Equipment Index
Codified
Topic Metric Code Disclosure Reference Omission
RT-EE-130a.1 (1) Total energy consumed Sustainability Report 2021:
RT-EE-130a.1 (2) Percentage grid electricity ­E­nvironment – Conservating resourc-
Energy es, p.83ff, (Energy used reduced),
Management RT-EE-130a.1 (3) Percentage renewable Our key areas of impact, p. 26-27,
Our sustainability i­ndicators, p. 114ff

RT-EE-150a.1 Amount of hazardous waste Sustainability Report 2021:

generated, ­p­ercentage ­Environment – Conservating
recycled resources, p.83ff, (Efficient Waste
management),
Our key areas of i­mpact, p.26-27,
Our sustainability ­indicators, p. 114ff
Hazardous Waste
RT-EE-150a.2 Number and aggregate Sustainability Report 2021: In Fiscal year 2021 we reported
Management
quantity of reportable spills, ­Environment – Conservating 14 minor cases. In 6 cases spills of
quantity recovered ­resources, p.83ff, (Incident relevant to dye, diesel, hydraulic oil and resins
the environment), were involved. There were also
Our sustainability ­indicators, p. 114ff losses of coolant in five cases. One
minor fine from penalties in the
year under review were reported.

RT-EE-250a.1 Number of recalls issued, not applicable Siemens has established a

total units recalled comprehensive, company-wide
product safety system to ensure our
products comply with applicable
legal safety requirements and meet
the latest technical safety standards
so that they do not pose a threat to
the life or health of users or other
third parties.
Under this system, all company
units are required to ensure that
Product Safety their products comply with the
state of the art in safety matters.
Also, the units are obliged to carry
out systematic product monitoring
and take the necessary corrective
actions to remedy potential ­product
safety deficiencies.

RT-EE-250a.2 Total amount of monetary Annual Financial Report 2021

losses as a result of legal Consolidated Financial Statements 6.
proceedings associated with Notes 22 Legal Proceedings, p. 69
product safety

SIEMENS SUSTAINABILIT Y REPORT 2021 152

7.6 SASB – Electrical Electronic Equipment Index

Codified
Topic Metric Code Disclosure Reference Omission
RT-EE-410a.1 Percentage of products by Sustainability Report 2021:
revenue that contain IEC ­Environment – Product stewardship
62474 declarable substances p. 88ff,
Our sustainability ­indicators, p. 114ff

RT-EE-410a.2 Percentage of eligible prod- not applicable

Product Lifecycle ucts by revenue that meet
Management ENERGY STAR® criteria

RT-EE-410a.3 Revenue from renewable Sustainability Report 2021:

energy-related and energy Environment – Climate action, p. 76ff
efficiency-related products (Environmental Portfolio for climate-­
conscious product use),
Our sustainability indicators, p. 114ff

RT-EE-440a.1 Description of the manage- Sustainability Report 2021:

ment of risks associated with Environment – Product stewardship,
the use of critical materials p. 88ff. (Risk-conscious ­handling of
Materials declarable ­substances),
Sourcing
Sustainable supply chain practices, ­
p. 62ff (Responsibility for the world-
wide supplier network)

RT-EE-510a.1 Description of policies and Sustainability Report 2021:

practices for prevention of: Compliance, p. 48ff
(1) corruption and bribery
and (2) anti-competitive
behavior

RT-EE-510a.2 Total amount of monetary Annual Financial Report 2021:

losses as a result of legal Consolidated Financial Statements 6.
Business Ethics proceedings associated with Notes 22 Legal Proceedings, p. 69
incidents relating to bribery Sustainability Report 2021:
or corruption Compliance, p. 39ff

RT-EE-510a.3 Total amount of monetary Annual Financial Report 2021:

losses as a result of legal Consolidated Financial Statements 6.
proceedings associated with Notes 22 Legal Proceedings, p. 69
anti-competitive behavior Sustainability Report 2021:
regulations Compliance, p. 39ff

RT-EE-000.A Number of units produced by not applicable

product category
Activity metric
RT-EE-000.B Number of employees Sustainability Report 2021 Working
at Siemens 94ff

SIEMENS SUSTAINABILIT Y REPORT 2021 153

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 the
Compact since 2003, and is expressly committed to index 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 The following are among the funda- In the year under review, the number
is rooted in the Siemens Business mental rights enshrined in our Business of sustainability self-assessments came
Support for human
rights Conduct Guidelines (BCGs), which are Conduct Guidelines: to 4,267. We conducted 319 supplier
binding on all our people worldwide. quality audits that included sustainability
Principle 2 → No discrimination; respect for the
They set out the fundamental principles questions and 394 external sustainability
principles of equal opportunity and
No complicity in and rules that govern our actions within audits. In external sustainability
equal treatment
human rights abuses our company and in relation to our audits, we identified a total of
→ Free choice of employment
customers, external partners, and the 6,617 areas for improvement.
Principle 3 (no forced labor)
public. The Siemens Business Conduct
→ No child labor Human rights are a matter that calls
Upholding freedom of Guidelines provide the ethical and legal
association → Fair and reasonable wages for constant alertness. In fiscal 2018,
framework within which we conduct
→ Freedom of collective bargaining Siemens joined the European Business
our business activities.
Principle 4 and association and Human Rights Peer Learning Group
Elimination of all They contain our basic principles and → Compliance with safety rules of the Global Compact Network. This or-
forms of forced labor rules for our conduct internally and ganization is likewise intended as a peer
Our CoC includes the following aspects
externally, for example on core labor learning group on business and human
Principle 5 of human rights:
standards for human rights. rights for European companies from
Abolition of child labor → Fair working conditions (pay, work different sectors and of different sizes.
Our Siemens Group Code of Conduct
hours, vacation),
(CoC) for Suppliers and Third Party Governance is a focus area under our
→ Right to freedom of association,
Intermediaries ensures that these basic new DEGREE framework. Based on
→ Responsibility for health and safety
rights and principles are also observed material risk areas, we successfully
standards,
in our supply chain. rolled out our new digital due diligence
→ No discrimination,
tool for risk, the ESG Radar.
We have conducted a company-wide → No forced labor or child labor, and
OUR KEY AREAS OF IMPACT
internal human rights risk assessment → Availability of anonymous complaint
as part of our Compliance Risk Assess- mechanisms. SUSTAINABLE SUPPLY CHAIN PRACTICES
ment (CRA). SUSTAINABLE SUPPLY CHAIN PRACTICES HUMAN RIGHTS

SUSTAINABILIT Y MANAGEMENT HUMAN RIGHTS

SUSTAINABLE SUPPLY CHAIN PRACTICES

HUMAN RIGHTS

SIEMENS SUSTAINABILIT Y REPORT 2021 154

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 Our worldwide diversity networks In fiscal 2021, 167 different national-
opportunity, and inclusion by creating promote and discuss diversity topics ities were represented in the Siemens
Elimination of
discrimination a working environment that is open across the company. Leading Women in workforce. The Ability@Siemens initia-
and appreciative for everyone. Our Industry, Global Leadership of Women@ tive is intended to promote a culture
commitment to protecting human Technology & Innovation, and GROW- of integration for the more than 5,000
rights is anchored in the BCGs. We will 2GLOW are some examples of such persons with disabilities who currently
not tolerate discrimination. The BCGs networks. We use key figures (including work at Siemens in Germany.
state unequivocally, “We respect the the percentage of women, generations,
Siemens Professional Education (SPE)
personal dignity, privacy, and rights of nationalities) to regularly monitor how
is a program that offers possibilities for
each individual.” They also make it clear effectively we implement diversity
disadvantaged young people. In 2021
that Siemens is committed to work initiatives, and we publish the results in
Siemens also joined the Valuable 500 –
with everyone, irrespective of ethnic our Diversity & Inclusion Fact Sheet.
an initiative launched at the World Eco-
origin, culture, religion, age, disability,
Focus areas for diversity include: nomic Forum to ensure that concerns of
skin color, gender, sexual identity and
persons with disabilities are included in
orientation, or world view. We are a → Consciously addressing
corporate management agendas.
signatory of the “Charta der Vielfalt” unconscious bias,
diversity charter. → Promoting gender balance, “Fostering diversity, inclusion, and
→ Highlighting the value of globality, community development to create a
DIVERSIT Y, EQUIT Y & INCLUSION
→ Encouraging diversity and sense of belonging” was prioritized in
inclusiveness.
fiscal 2021 as part of the DEGREE focal
DIVERSIT Y, EQUIT Y & INCLUSION area for “Equity.”
OUR KEY AREAS OF IMPACT

DIVERSIT Y, EQUIT Y & INCLUSION

Empowering women In fiscal 2016 we signed the CEO State- We encourage applying the Women’s In the year under review, women
ment on the UNGC Women’s Empower- Empowerment Principles to guide accounted for 26.7 % of the total work-
ment Principles. Through sponsorships actions that advance and empower force at Siemens. The percentage of
and strategic partnerships, we are women in the workplace, marketplace, women in management positions has
also involved in such programs and and community, and we communicate risen steadily in recent years, and now
initiatives as the “Charta der Vielfalt” our progress by using sex-disaggregated comes to more than 19.6 %.
diversity charter. data and other indicators.
In fiscal 2021, 30.2 % of all new hires
SUSTAINABILIT Y MANAGEMENT
Under the DEGREE framework, Siemens were women.
DIVERSIT Y, EQUIT Y & INCLUSION (excluding SHS) is pursuing the goal OUR KEY AREAS OF IMPACT
of having 30 % women in top manage-
DIVERSIT Y, EQUIT Y & INCLUSION
ment by 2025.
DIVERSIT Y, EQUIT Y & INCLUSION

SIEMENS SUSTAINABILIT Y REPORT 2021 155

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 We bundle our binding climate pro- We have reinforced our climate protec-
system in place to manage its envi- tection goals and measures under the tion strategy further by confirming our
Precautionary
ronmental performance. All relevant “D” heading (Decarbonization) in our science-based Targets, which aim for
­approach to
production and office sites are required DEGREE framework for sustainability 1.5ºC, and by joining the RE100, EV100,
­environmental
to implement an environmental man- at Siemens. and EP100 initiatives. Anchoring our
­challenges
agement system that complies with the CO2 reduction in business operations as
→ Net zero operation by 2030, in
internationally recognized ISO 14001 part of the Long-term incentives (LTI)
compliance with SBTi targets
standard as well as our own internal for Senior Management and making the
specifications on environmentally com- → Net zero supply chain by 2050, business units responsible for reducing
patible product and system design. 20 % emission reduction by 2030 their own shares of emissions are now
significant components of our manage-
ENVIRONMENT Our environmental programs are
ment approach.
embedded in the DEGREE sustainabil-
ity framework, and focus on reducing In terms of our own business activity,
greenhouse gas emissions and making we launched our global “CO2-Neutral”
resource use more efficient all along the program in September 2015. By 2020
value chain. Our program for efficient this program had already reduced our
resource use, Eco Efficiency @ Siemens, own operations’ carbon footprint 54 %
helps mitigate all our environmental from the 2014 figure (as was reported
impacts by encouraging a circular econ- for 2020, including Siemens Energy),
omy and a general dematerialization of and thus we achieved our intermediate
business processes. goal last year.
The “R” for resource efficiency indicates In 2021, we reduced our Scope 1 and
that environmentally sound handling Scope 2 emissions by another 83 kt
of limited resources is an integral part CO2e, or 12 %, from the year before.
of Siemens’ DEGREE sustainability During the year under review, 78 % of
program. our electric power consumption was
“green.”
Robust, ecologically sound design of
the next stage for all of Siemens’ OUR KEY AREAS OF IMPACT

relevant product families by 2030 SUSTAINABILIT Y MANAGEMENT

→ Decoupling from natural resources by ENVIRONMENT

procuring more secondary metal and
plastic materials

→ Circular economy by reducing landfill

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

On top of that, the Efficient Own

­Operations component of the ­Eco
Efficiency @ Siemens environmental
program is also focusing on dematerial-
ization 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 impact
of our waste.
SUSTAINABILIT Y MANAGEMENT

ENVIRONMENT

SIEMENS SUSTAINABILIT Y REPORT 2021 156

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 of Siemens maintains a global environ- In the year under review, we reported
environmental and climate protection mental communications network € 40.6 million in community invest-
Initiatives for greater
environmental is intrinsic to both our environmental to ensure that knowledge about ment. In July 2021 we took part in the
responsibility strategy and our social commitment, environmental management, methods, One Young World Summit in Munich,
with the core components of access to solutions, and experiences is communi- Germany. As part of Earth Day, Siemens
technology, access to education, and cated across locations, businesses, and UK provided teaching materials to 214
sustaining communities. Our internal national borders. elementary schools to teach resource
communication measures and our cor- conservation in ways appropriate for
For years, we have been an actively
porate citizenship focus help heighten children.
involved member of One Young World,
a sense of responsibility for ecological OUR KEY AREAS OF IMPACT
the World Bank’s Carbon Pricing Lead-
issues. Protecting the environment and
ership Coalition (CPLC), and the World SUSTAINABILIT Y MANAGEMENT
preserving natural resources are two
Economic Forum (WEF). CORPORATE CITIZENSHIP
goals that are of paramount importance
for preserving communities. SUSTAINABILIT Y MANAGEMENT

SUSTAINABILIT Y MANAGEMENT

CORPORATE CITIZENSHIP

Principle 9 As part of our Environmental Portfo- Our Environmental Portfolio is our big- With all the Environmental Portfolio
lio, we develop and market products, gest contribution to mitigating climate components that we have installed for
Development and
diffusion of environ- solutions, and services that enable our change. It comprises products, systems, customers since fiscal 2002 (excluding
mentally friendly customers to reduce their CO2 emis- solutions, and services (Environmental Siemens Energy) and that are still in
technologies sions, lower lifecycle costs, and protect Portfolio components) that meet one operation today, by the end of fiscal
the environment. of our criteria for selection – that they 2021 we had reduced our customers’
offer energy efficiency above a defined CO2 emissions by 88 million metric tons
We are preparing for the introduction
threshold, or employ renewable forms (continuing operations).
of the EU taxonomy, which will provide
of energy.
a classification system for sustainable During fiscal 2021, 31 % of our revenue
economic activities. This will supple- Our DEGREE framework has set the in continuing operations came from our
ment Siemens’ previous Environmental ambitious goal of achieving next-stage, Environmental Portfolio.
Portfolio reporting. robust, ecologically friendly design for OUR KEY AREAS OF IMPACT
CLIMATE ACTION 100 % of the relevant Siemens product
SUSTAINABILIT Y MANAGEMENT
families by 2030.
CLIMATE ACTION
CLIMATE ACTION

SIEMENS SUSTAINABILIT Y REPORT 2021 157

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 Siemens takes a zero-tolerance Once again in fiscal 2021, we made
contain the fundamental principles and approach to corruption and other important progress in advancing the
Combating corruption
rules for our conduct within Siemens breaches of applicable law and our Siemens compliance system, including:
and in relation to Siemens’ customers, values as laid down in the Business
→ BCG training was rolled out for some
external partners, and the general Conduct Guidelines. Our compliance
77,000 employees around the world
public. They also serve as an expression priorities are:
(including SHS), and 72,000 of them
of our values and form the basis for de- (about 93 %) had completed it
→ Foster Integrity,
tailed internal regulations. The Business successfully by the end of fiscal 2021.
→ Manage Risk and Give Assurance,
Conduct Guidelines are binding on all → We established global teams of
→ Effective Processes,
our people around the world. → An Excellent Compliance Team, and compliance experts for specific
→ Committed to Business. topics. In this way, we aim to address
Our compliance system is designed to
significant cross-organizational
ensure that our business practices Our priorities will continue to guide challenges and at the same time,
worldwide comply with these guidelines our work and will be defined in further identify opportunities for
and follow applicable laws. detail with focus areas for fiscal 2022. improvement in terms of efficiency
It is based on three pillars – prevent, de- and efficacy by making the most of
We actively support the United Nations
available knowledge and experience.
tect, and respond – and includes activity Convention against Corruption and the As a part of this network, continuous
fields in anti-corruption, anti-money Anti-Bribery of the Organization for Eco- monitoring of compliance risks was
laundering, antitrust, Collective Action, nomic Cooperation and Development supplemented with a global group
data privacy, export controls, and (OECD). Siemens’ activities in the World of experts to provide early detection
human rights. Economic Forum (WEF) include our of risks from new digital business
COMPLIANCE participation in the Partnering Against models, and to define proposals for
Corruption Initiative (PACI). risk mitigation.

To date, we have provided some OUR KEY AREAS OF IMPACT

USD $ 120 million in funding for 85 COMPLIANCE
projects as part of the Siemens Integrity
Initiative to combat corruption and
fraud in more than 50 countries.

As part of the DEGREE framework, we

plan to provide training and refresher
courses in the BCGs for 100 % of our
people in three-year cycles.
COMPLIANCE

SIEMENS SUSTAINABILIT Y REPORT 2021 158

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 water Group Code of Conduct for Siemens Suppliers and
efficiently at our own facilities and by providing Third Party Intermediaries. Further information on
solutions that help our customers handle water and these requirements is available in the section
wastewater more efficiently. SUSTAINABLE SUPPLY CHAIN PRACTICES of this report.

Our own activities Our customers

Further information about resource conservation and We support our customers with water management
water consumption at Siemens locations is available solutions.
in the section ENVIRONMENT of this report. We are
continuing 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 of plants in Saudi Arabia with process automation
wastewater contamination or poorly developed systems, drives technology, process
technical infrastructures − must be adjusted to local instrumentalization systems, and communications
conditions in order to reduce risks and negative technology. This order follows an earlier agreement
environmental impacts. Siemens’ water strategy aims in which Siemens was named the main contractor to
to minimize the negative local impacts of our water supply 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 is
located near the Saudi Arabian city of Al Khafji, are
We use resources carefully and avoid wasting them considerably lower than those at plants powered by
wherever possible − for example, by participating in electricity 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.

SIEMENS SUSTAINABILIT Y REPORT 2021 159

7.8 United Nations CEO Water Mandate

Partnerships to reduce water loss The Siemens Stiftung, Siemens’ nonprofit foundation
Siemens and BuntPlanet have signed a distribution in Germany, applies an entrepreneurial approach to
agreement 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 reduce
water loss, guarantee water supplies and significantly Migori country in western Kenya is a sub-Saharan
increase energy efficiency. As part of this collaboration, region whose inhabitants have no access to clean
both partners are making a major contribution to drinking water. A Siemens Stiftung water kiosk
ensuring sustainable water supplies worldwide. provides the Wath Onger community in Migori with
up 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 the
such as the water project on the Action 2020 platform region. Other waterborne diseases such as typhoid
of 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 initiated
of the world. by the Lake Victoria AIDS Support Organization
(LAVISO).

Further information on projects from the Siemens

Stiftung is available at:
[Link]/EN/PROJECTS/

SIEMENS SUSTAINABILIT Y REPORT 2021 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 and
Young GmbH Wirtschaftsprüfungsgesellschaft relates application of appropriate methods to prepare the
exclusively to the German PDF version of the report 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
internal controls that they have considered necessary
To Siemens AG, Berlin and Munich to enable the preparation of a report that is free
We have performed a limited assurance engagement from – intended or unintended – material
on 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 not with the provisions under German commercial law
include the information in the Annex to the report and professional requirements, and we have fulfilled
as well as any prospective disclosures and links to our other professional responsibilities in accordance
other web pages. The report is published as a PDF with these requirements.
version at [Link]/INVESTOR/EN.

Our audit firm applies the national statutory

Management’s responsibility 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 in rights and duties of Wirtschaftsprüfer and vereidigte
accordance 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 [IDW Qualitätssicherungsstandard 1:
performance indicators of the Environmental Anforderungen an die Qualitätssicherung in der
Portfolio, 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.

SIEMENS SUSTAINABILIT Y REPORT 2021 161

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 a
sample basis,
We conducted our assurance engagement in → Analytical measures at Group level and at the
accordance with the International Standard on level of the Industrial Businesses regarding the
Assurance 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 and
by the International Auditing and Assurance Standards reporting of the sustainability data at Group level,
Board (IAASB). This Standard requires that we plan and at 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, in sample basis relating to the collection and
accordance with the reporting criteria. In a limited reporting of the key performance indicators of
assurance engagement the assurance procedures are the Environmental Portfolio including the
less in extent than for a reasonable assurance procedures for determining the qualification of
engagement and therefore a substantially lower level products, solutions, and services for the
of assurance is obtained. The assurance procedures Environmental Portfolio,
selected depend on the auditor’s professional → Inquiries of employees from the central
judgment. Sustainability Department and other relevant
departments on material qualitative statements
Within the scope of our assurance engagement, which in the report as well as the inspection of selected
has been conducted between May and November underlying documents,
2021, we performed amongst others the following → Evaluation of the presentation of disclosures in
assurance and other procedures: the report.

→ Inquiries of employees concerning the Assurance conclusion

sustainability strategy, sustainability principles, Based on our assurance procedures performed and
and sustainability management including the assurance evidence obtained, nothing has come to
stakeholder 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 of has not been prepared, in all material respects, in
the report in order to assess the sustainability accordance with the reporting criteria.
reporting system, the data capture and
compilation methods, as well as internal controls
to the extent relevant for the limited assurance
of the report,
→ Identification of likely risks of material
misstatement in the report,

SIEMENS SUSTAINABILIT Y REPORT 2021 162

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 or
agreed 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 the of anyone taking note of the result of our assurance
Company as to the results of the assurance engagement summarized in this assurance report to
engagement and must not be used for purposes other decide whether and in what way this result is useful
than those intended. The report is not intended to or 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 and
also govern our relations with third parties in the Breitsameter Johne
context of this engagement ( [Link]/ Wirtschaftsprüferin Wirtschaftsprüferin
GENERAL-ENGAGEMENT-TERMS ). In addition, please refer (German Public Auditor) (German Public Auditor)
to the liability provisions contained there in no. 9 and
to the exclusion of liability towards third parties. We
assume no responsibility, liability, or other obligations
towards third parties unless we have concluded a
written agreement to the contrary with the respective
third party or liability cannot effectively be precluded.

SIEMENS SUSTAINABILIT Y REPORT 2021 163

7.10 Notes and forward-looking statements

7.10

Notes and forward-looking

statements

There is no standard system that applies across forward-looking statements in other reports, in
companies for qualifying products and solutions for prospectuses, in presentations, in material delivered
environmental and climate protection, or for compiling to shareholders, and in press releases. In addition,
and calculating the respective revenues and the our 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 with to 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 the disclosures, in particular in the chapter Report on
reduction of our customers’ annual carbon dioxide risks and opportunities including report on expected
emissions are derived from various internal reporting development of the Annual Report. Should one or
systems that are generally different from those more of these risks or uncertainties materialize,
applicable to the financial information presented in events of force majeure, such as pandemics, occur,
our Consolidated Financial Statements and are, in or 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 the achievements 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 our statement. 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 and
future events or developments involving Siemens
that may constitute forward-looking statements.
These statements may be identified by words such
as “expect,” “look forward to,” “anticipate,” “intend,”
“plan,” “believe,” “seek,” “estimate,” “will,” “project,”
or words of similar meaning. We may also make

SIEMENS SUSTAINABILIT Y REPORT 2021 164

7.10 Notes and forward-looking statements

This document includes – in the applicable financial Due to rounding, numbers presented throughout this
reporting framework not clearly defined – and other documents may not add up precisely to the
supplemental financial measures that are or may be totals provided, and percentages may not precisely
alternative performance measures (non-GAAP reflect the absolute figures.
measures). 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, the
positions or results of operations as presented in German-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.

SIEMENS SUSTAINABILIT Y REPORT 2021 165

7.11 Further information and information resources

7.11

Further information and

information resources

Additional information
The Siemens annual financial report 2021
is available at:
[Link]/ANNUALREPORTS

Further sustainability information

Further information on our commitment to
sustainability and sustainability figures are
available at:
[Link]/SUSTAINABILIT Y

[Link]/SUSTAINABILIT YFIGURES

Further information on research, development,

and innovation at Siemens is available at:
[Link]/INNOVATION

Further information on Siemens Stiftung

is available at:
[Link]/EN

© 2021 by Siemens AG, Berlin and Munich

SIEMENS SUSTAINABILIT Y REPORT 2021 166

Address Siemens AG
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Germany
Internet [Link]
Phone + 49 (0) 89 636 - 33443 (Media Relations)
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Email press@[Link]
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