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Siemens Energy presents its corporate sustainability report

sustainability report

Siemens Energy has published its corporate sustainability report. Last year they improved in almost all areas of sustainability.

Christian Bruch, the CEO and Chief Sustainability Officer of Siemens Energy said: “The global electricity demand will increase by 25% by 2030. Meeting this energy demand in a sustainable, secure, and affordable way is one of the fundamental tasks of our time. Our mission is to support our customers in their transformation towards greater sustainability. But this also means we must lead by example and apply the highest standards in our operations. Our goal is to be a leader within the energy industry regarding sustainability, corporate governance, and social issues. We are on the right track but still far from where we want to be.”

Scopes 1, 2 & 3

Greenhouse gas emissions are an essential information parameter throughout the value chain. A fundamental distinction is made here between:
Scope 1–> emissions the company is directly responsible for or has control, such as gas consumption.
Scope 2–> indirect emissions through purchased energy, e.g., electricity consumption.
Scope 3–> indirect emissions in the upstream and downstream supply chain.

Siemens Energy emitted 21% fewer greenhouse gases in its immediate area of responsibility than in the previous year. The company reduced its greenhouse gas emissions by 50% from the baseline year 2019. The original target was to reduce emissions by 46% by 2025.

Climate-neutral by 2030

Siemens Energy aims to be utterly climate-neutral by 2030. A key reason for the company’s success in reducing greenhouse gases is its use of renewable energies. Within the organization, 90% of the electricity needed for its operations comes from renewable sources. The target was 84%. By September 30, 2023, electricity demand is expected to be covered entirely by green power.

They also reported Scope 3 emissions resulting from their own products’ operation throughout their entire life cycle. These account for more than 99% of Siemens Energy’s total greenhouse gas emissions. And they represent the most crucial challenge to climate neutrality. Last year, the company emitted 46 million fewer metric tons of greenhouse gases in this category. There was a 12% reduction compared to the 2019 baseline, mainly to the coal phase-out that the company implemented in 2020.

There is an urgency to switch from coal to gas for power generation and renewable energy use. Coal generates nearly 40% of the world’s power; switching to gas could eliminate approximately 50% of emissions from each power plant.

More sustainability in supply chains

The Report reflects Siemens Energy’s ESG achievements in the past fiscal year and areas for improvement. Women made up approximately 20% of Siemens Energy’s workforce. At the top two management levels (Gas and Power, excluding Siemens Gamesa), it increased by another percentage point last year to 22%. But Siemens Energy’s targets are more ambitious, aiming to reach 30% by 2030. The company expects to progress rapidly in this area with the new organizational structure that came into effect on October 1, 2022.

Siemens Energy will take further steps to become a leading ESG company:
–>The company will expand its share of internally produced green energy.
–> Siemens Energy will boost the build of technology automation
–> Energy requirements will further reduce

Dr. Anita Schieffer, who has been appointed Group Compliance Officer for the newly created Human Rights Officer position, will help meet the new requirements of international companies.

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