How Siemens is Making its Value Chain More Sustainable
As we near the end of another year, it's essential for companies like Siemens to step back and evaluate their performance, and for Siemens, 2024 has been a year worth celebrating.
Beyond achieving their highest earnings-per-share yet, the Berlin-based tech titan has also made significant strides towards their ambitious sustainability goals.
From decarbonisation efforts to enhancing their ESG performance and embracing the philosophy of circularity, Siemens’s latest sustainability report is packed with insights. Interestingly, their commitment to sustainability coincides with record-breaking profits showing that responsible business practices can indeed harmonise with financial success.
Guiding Principles of Sustainability at Siemens
The 'DEGREE' framework sits at the heart of Siemens’ sustainability strategy. This comprehensive approach focuses on decarbonisation, ethics, governance, resource efficiency, equity and employability.
These core elements underscore the company’s proactive methodologies to combat challenges like climate change, resource scarcity and social inequity.
In a notable reflection by Dr. Roland Busch, CEO of Siemens, he underscores the necessity of accelerating sustainability efforts. "We need faster progress on sustainability," he emphasises.
"Combining the real and digital worlds allows us to accelerate this transformation, making adoption scalable and accessible.”
Key Milestones Achieved in 2024
2024 was a year of significant achievements for Siemens, notably a 60% cut in carbon emissions from their operations since 2019 — an impressive feat that surpasses the interim targets that the team had set for 2025..
Beyond their operational boundaries, Siemens has also enabled their clients to dodge 144 million metric tonnes of CO₂ equivalent emissions through their products — a figure that exceeds Siemens’ own value chain emissions of 121 million metric tonnes.
The Siemens Xcelerator platform has played a critical role here. By integrating pioneering digital solutions, it boosts energy efficiency, aids in decarbonising grids and optimises building operations. Its hallmark offerings, including GridScale X and Building X, cater to a range of sectors, while their Siemens EcoTech label guarantees customers access to transparent environmental data.
“We're committed to delivering technology with purpose,” says Roland.
"Whether through AI-enhanced systems or digital twins, our solutions drive meaningful impact for customers and communities.”
Emphasising Circularity and Ethics
Circularity is not just a policy but a foundational strategy at Siemens. By leveraging advanced manufacturing technologies and digital twins, the company is pushing the envelope in extending product lifespans and reducing waste.
Judith Wiese, the company's Chief Sustainability Officer, reiterates, “Circularity is more than a buzzword — it’s a business imperative.
“Our technologies empower customers to maximise resource efficiency while minimising environmental footprints.”
In 2024, the adoption of secondary materials, particularly metals, grew significantly, and Siemens is on track to eliminate landfill waste by 2030.
Furthermore, internally, Siemens has championed equity, with women occupying over 32.6% of top management positions, surpassing their 2025 aspirations. They also invested a substantial US$482m in enhancing employee expertise across digitalisation, leadership and sustainability sectors.
“Our people are at the heart of our transformation,” remarks Judith.
“By fostering an inclusive culture and equipping employees with future-ready skills, we ensure long-term resilience.”
Siemens has further enhanced its employability framework, providing 27 hours of digital learning per employee in 2024, surpassing its 2025 goal.
'A genuine commitment to ethical leadership'
Governance remains a cornerstone of Siemens’ sustainability ethos. ESG considerations are embedded in executive compensation structures, and the company’s Supplier Code of Conduct ensures rigorous standards across its supply chain.
Recognitions such as the EcoVadis Platinum Medal and CDP Climate Change A List underscore Siemens’ leadership in sustainable business practices.
“Governance is as critical as innovation in driving meaningful change,” Roland explains. “Our efforts reflect not only compliance but a genuine commitment to ethical leadership.”
The firm's proactive strategies in fostering an inclusive workplace and equipping its workforce with state-of-the-art skills ensure not just current efficiency but long-term organisational resilience.
Collaborations and Ethical Partnerships
Strategic partnerships with significant global entities like the United Nations and the World Economic Forum have amplified Siemens’ capacity to tackle broad-scale issues such as decarbonisation and digital inclusion.
“Our biggest impact is through our portfolio,” explains Dr. Eva Riesenhuber, Global Head of Sustainability.
"More than 90% of our business enables our customers to achieve a positive sustainability impact.
"With 144 million tons CO2e of customer avoided emissions we enable our customers to avoid more emissions than caused along our entire value chain (Scope 1, 2 and 3)."
Looking forward, Siemens remains devoted to enhancing the integration of ESG principles within its operations, offerings, and broader value chain, crafting a sustainable future that benefits all.
As Roland puts it: “Our sustainability journey is one of continuous improvement. Together with our partners, we’re committed to scaling our impact for a better tomorrow.”
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