Sustainability Report 2021
Creating transparency
siemens-energy.com/sustainability
Foreword | Content | The company | Decarbonizing our business | Responsible operations | Annex |
Dear readers,
We stand at a turning point in human history. The impact of climate change - coupled with an ever-growing demand for energy - is confronting us with fundamental challenges. Projections made by the Intergovernmental Panel on Climate Change in August 2021 indicate that the average global temperature may rise more than 1.5 degrees by as early as 2030. The result would be weather events more extreme than we have ever experienced before. Thus, it is time to act and implement measures that reduce CO2 right away. Politicians, society at large, and the business world all bear an equal responsibility.
At Siemens Energy, we take this effort very seriously. We intend to include the "Decade of Implementation" - as it was called at the World Climate Conference in Glasgow in November 2021 - within our sphere of responsibility and to make an active contribution to combating climate change.
We want to be the sustainability leader in our industry - and that includes the environment, social responsibility, and governance.
"That's why we place sustainability at the heart of our strategy."
What does that mean for us? We have declared that our activities will be guided by the United Nations' 17 Sustainability Development Goals that are part of its Agenda 2030. Siemens Energy actively supports the targets of the Paris Agreement. And we are committed to the Ten Principles of the United Nations Global Compact and report annually on our progress.
Our efforts to fight climate change start within our own organization. The most important internal goal is to make our own operations climate-neutral by 2030. Our ambitious climate goals throughout the value chain are consistent with the Paris Agreement, as the Science-Based Targets initiative has confirmed.
We also want to set an example in our social responsibility activities. Over the past year, the COVID-19 pandemic and the increasingly obvious impact of climate change have changed the lives of everyone. They have shown the importance of a reliable, affordable, sustainable energy supply so that societies can retain their ability to function even under the most difficult conditions. What we need is a global perspective that recognizes the specific situation in the different parts of the world. Yet the reality is that
efforts made to increase sustainable development may be offset by population and energy growth in developing countries. And that would jeopardize every CO2 target. All the more reason for us to promote technologies that will enable these countries to cover the cost of transitioning faster to renewable energy and at the same time meet their growing energy needs. That calls for innovation. We therefore invest around €1 billion annually in research and development.
What is crucial, however, is not only what we do, but also how we do it. Thus, responsible business practices are the base of our business at Siemens Energy. They express our corporate culture - from rigorous compliance with occupational health and safety measures to an unequivocal commitment to human rights. It also includes choosing and managing our workforce from a perspective that recognizes inclusion and diversity as a strength. The same goes for integrity and compliance, which are the foundation for all our decisions and actions. Sustainability is a task for everybody at Siemens Energy. We systematically manage, track, and measure our Sustainability Program. This report is an expression of how we view our mission.
We made progress in 2021 on our journey to become the sustainability leader in our industry. The results from our sustainability ratings confirm that. But there is more work to be done. We will keep you posted on what we do.
Best regards,
Christian Bruch
Chief Executive Officer and Chief Sustainability Officer
Siemens Energy AG
Siemens Energy Sustainability Report 2021 | Page 2 |
Foreword | Content | The company | Decarbonizing our business | Responsible operations | Annex |
Our sustainability performance
Decarbonizing our business | Responsible operations | |||||||||||||
Performance indicator | Unit | 2021 | 2020 | Performance indicator | Unit | 2021 | 2020 |
Greenhouse gas emissions | ||||||
Scope 1+2 emissions | ||||||
absolute | 1,000 metric tons CO2e | 273 | 292 | |||
thereof SF6 | 1,000 metric tons CO2e | 41 | 66 | |||
thereof fleet | 1,000 metric tons CO2e | 29 | 29 | |||
Scope 3 downstream emissions¹ | ||||||
absolute | 1,000 metric tons CO2e | 1,369,163 | 927,476 | |||
intensity | metric tons CO2e/ | 0.041 | 0.027 | |||
€ order intake | ||||||
Scope 3 upstream emissions² | ||||||
absolute | 1,000 metric tons CO2e | 4,761 | 4,722 | |||
intensity | kg CO2e/€ PVO spent | 0.473 | 0.476 | |||
Energy | ||||||
Energy consumption | million gigajoule | 6.33 | 5.80 | |||
Share of green electricity | % | 76 | 78 | |||
Research & development | ||||||
Research & development expenses | million € | 1,155 | 985 | |||
Sustainable supply chain management | ||||||
External sustainability audits at suppliers | no. | 157 | 60 | |||
Waste | ||||||
Waste recycling and recovery rate | % | 82 | 78 | |||
Water | ||||||
Water consumption | million cubic meters | 4.10 | 3.23 | |||
Product stewardship | ||||||
Portfolio coverage by Life Cycle Assessments (LCAs) | % | 71 | - | |||
Employees | ||||||
Share of women in overall workforce | % | 19.3 | 19.1 | |||
Share of women in top leadership positions3 | % | 21 | 21 | |||
Training hours per employee | no. | 8.6 | - | |||
Occupational health and safety | ||||||
Total Recordable Incident Rate (TRIR) of employees | no. | 0.49 | - | |||
Societal engagement | ||||||
Donations | million € | 4.71 | 5.44 |
1 Includes category "use of sold products" only.
2 Includes categories "purchased goods and services" and "transportation and distribution" only. Without SGRE. 3 Without SGRE.
Siemens Energy Sustainability Report 2021 | Page 3 |
Foreword | Content | The company | Decarbonizing our business | Responsible operations | Annex | |
Content | ||||||
Responsible operations | ||||||
Foreword | 2 | 3 Summary page | ||||
Our sustainability performance | 3 | |||||
Content | 4 | 36/37 | ||||
Interview | 5 | Occupational health and safety | 38 | |||
Zero Harm framework and safety culture
4 TheAnnexcompany and reporting method | 76 |
Task Force on Climate-Related Financial | 77 |
Disclosures (TCFD) |
1 | The company | |
Siemens Energy at a glance | 8 | |
Strategic focus | 9 | |
our portfolio, program and partnerships | ||
Q&A with talents: Energy transition | 16 | |
Management of COVID-19 effects | 17 |
2 | Decarbonizing our business | |
Summary page | 20 | |
Q&A with talents: Innovation | 21 | |
Customers and innovation | 22 | |
innovation approach and cybersecurity | ||
Q&A with talents: Decarbonization | 27 | |
Decarbonization | 28 | |
at customers, in operations and of the supply chain |
Conservation of resources | 43 |
environmental standards, water and waste | |
Product stewardship | 47 |
product safety, footprint and material compliance | |
Q&A with talents: Supply chain | 50 |
Sustainable supply chain management | 51 |
engagement, assessment and minerals sourcing | |
Human rights | 55 |
commitment, due diligence and transparency | |
Compliance and integrity | 57 |
zero-tolerance, training and risk management | |
Q&A with talents: Inclusion & diversity | 61 |
Working at Siemens Energy | 62 |
inclusion & diversity, leadership and training | |
Q&A with talents: Skills and compentencies | 70 |
Societal engagement | 71 |
global approach, local action and donations |
UN Global Compact - Communication on Progress | 84 |
Independent auditor's limited assurance report | 89 |
Imprint | 91 |
Sustainability dialogue
The energy industry's shift to sustainability raises new challenges. Young talents ask our management their most pressing questions.
- Reference within the report Link to an external reference
Siemens Energy Sustainability Report 2021 | Page 4 |
Foreword | Content | The company | Decarbonizing our business | Responsible operations | Annex |
How to fight climate change now?
Interview: Oliver Sachgau Photography: Götz Schleser
Climate change is a major threat to humanity. As Siemens Energy Chief Executive Officer and Chief Sustainability Officer Christian Bruch notes, the time has come to radically change and decarbonize our energy system.
Siemens Energy Sustainability Report 2021 | Page 5 |
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Siemens Energy AG published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2022 09:06:04 UTC.