Siemens Identifies Sustainability as Key Driver of New Growth Strategy, Launches ESG Framework
Technology-focused industry, infrastructure, transportation, and healthcare solutions company Siemens presented today its new growth strategy, with sustainability as one of its key growth engines, along with digitalization and automation. Unveiled at the company’s Virtual Capital Market Day, Siemens also announced the launch of DEGREE, its new ESG strategy, with targets including achieving a carbon neutral supply chain by 2050.
Siemens also stated that it is officially adopting the topic of sustainability as an additional strategic imperative for its investment decisions.
Roland Busch, President and CEO of Siemens AG, said:
“Digitalization, automation and sustainability are growth engines for our business. Here, our core business and our digital business reinforce each other in a virtuous cycle. This effect forms the foundation of our growth strategy for achieving more profitable growth. As a focused technology company, we want to strengthen our position in all our markets and enter adjacent profitable markets. And we’re now making our commitment to sustainability clearer than ever.”
As companies increasingly incorporate sustainability concerns into their own investment plans and strategies, Siemens has identified multiple opportunities help customers meet these goals, and to drive growth across its sectors. These include data-based solutions to make products more resource-efficient and use less energy and enable supply chain transparency, infrastructure solutions targeting eMobility and energy-efficient indoor climate, and transportation solutions including train battery technology and the development of hydrogen trains.
Siemens announced that its new DEGREE – Decarbonization, Ethics, Governance, Resource efficiency, Equity and Employability – sustainability framework will apply to all activities across the company’s businesses worldwide, with each factor incorporating numerous ESG targets. These include decarbonization targets to reach net zero operations by 2030, and achieve a 20% reduction in supply chain emissions by 2030 and net zero by 2050; ethics training commitments; governance pledges to align incentive pay with ESG criteria; resource efficiency goals including zero waste to landfill by 2030; Equity targets to reach 30% female share in top management by 2025, and; employability initiatives to expand learning, training and employee assistance programs.
Judith Wiese, Chief Human Resources Officer, Chief Sustainability Officer and member of the Managing Board of Siemens AG, said:
“Sustainability is in our very DNA. It’s not an option. It’s a business imperative. Based on our successful track record, we’re now setting ourselves even more ambitious targets. We’ll accelerate our efforts and raise the bar to create considerably more value for all our stakeholders. Sustainable business growth goes hand in hand with the value we create for people and our planet.”