Agenda packet — City Council and Concurrent Authorities, December 9, 2025 (part 2 of 6)

Estimate
From Epic
3719 N. 75th St. Suite #110
Scottsdale, AZ 85251
Estimate For I Stockton Police Department
Quantity Unit Price Amount
··-

1.00 $70,000.00 $70,000.00

1.00 $18,000.00 $18,000.00
Estimate Total $88,000.00

ATTACHMENT B
191
City of Stockton
Legislation Text
File #: 25-1343, Version: 1

APPROVE MOTION TO EXECUTE A THREE-YEAR COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT WITH MILLER MENDEL, INC. FOR BACKGROUND INVESTIGATIONS SOFTWARE IN AN AMOUNT NOT TO EXCEED $171,574

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process; and

2. Authorize the City Manager to execute a three-year Cooperative/Piggyback Purchase Agreement between the City of Stockton and Miller Mendel, Inc., for background investigations software not to exceed $171,574.

It is further recommended that the City Manager be authorized and directed to make any and all expenditures and appropriations on behalf of the City as appropriate and necessary to carry out the purpose and intent of this motion.

Summary
The Stockton Police Department (SPD) previously faced significant challenges in completing timely background investigations for prospective employees. In Fiscal Year 2022-23, the Department lost more than 20 qualified applicants to competing agencies because SPD’s background investigation process took longer to complete. These delays placed SPD at a clear competitive disadvantage in attracting and hiring qualified candidates.

To address this issue, the City of Stockton modernized its background investigation process by transitioning to eSOPH, an advanced background investigation platform. Agencies using eSOPH have demonstrated processing time reductions of nearly 50% due to the system’s automated workflows, integrated data sources, and patented technologies.

To support SPD’s ongoing recruitment efforts and ensure continuity of background investigation services, staff recommends approval of a motion to execute a three-year cooperative/piggyback purchase agreement with Miller Mendel, Inc. for the eSOPH background investigation software, in an amount not to exceed $171,574.

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DISCUSSION
Background
In Fiscal Year 2022-23, SPD was unable to hire more than 20 qualified applicants due to delays in completing background investigations. To address this issue, the City of Stockton transitioned to eSOPH in FY 2023-24 to significantly reduce processing times and automate many of the document requests, tracking, and filing tasks required of investigators when reviewing applicant-submitted background information.
eSOPH, an advanced background investigation platform developed by Miller Mendel, Inc., is a webbased Software as a Service (SaaS) solution used by government and private entities to manage background investigations through an electronic Statement of Personal History (eSOPH). The system provides a comprehensive suite of core services.

Present Situation
Since transitioning to the eSOPH background investigation platform in FY 2023-24, SPD has experienced significant improvements in both the efficiency and accuracy of its background investigation process. The system’s automated workflows, centralized document management, and integrated data sources are substantially reducing the time required for investigators to complete each background file, enabling SPD to remain competitive with other agencies and avoid delays that previously led to the loss of qualified applicants. Tasks that were once manual and time-consuming are now streamlined, allowing investigators to focus on evaluating candidates, instead of tracking paperwork or waiting for external records.
eSOPH is intuitive, reliable, and easier to use compared to the SPD’s previous system. Its organization of applicant information, automated reminders, and user-friendly digital submission tools have enhanced the experience for both investigators and applicants. Given these improvements, SPD staff strongly support continuing the use of eSOPH and view it as essential to maintaining hiring competitiveness and meeting departmental recruitment goals.

Staff recommends continuing services with Miller Mendel, Inc. to ensure uninterrupted system access and sustained efficiencies in the background investigation process.

Findings
Stockton Municipal Code section 3.68.070 provides for an exception to the competitive bidding requirements in cases wherein the City Council has made findings that support and justify the purchase via a Cooperative / Piggyback Agreement. Findings to support the purchase are as follows:

1. eSOPH provides the essential functionality needed for SPD to complete pre-employment background investigations efficiently and consistently, supporting timely hiring and reducing applicant loss.

2. eSOPH is a proprietary, patented system exclusively owned and supported by Miller Mendel, Inc., and cannot be obtained from any other vendor.

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3. SPD’s established background investigation workflows are built around the eSOPH platform, and shifting to a different system will create significant operational disruption and reduce process efficiency.

FINANCIAL SUMMARY
The total proposed cost is $57,191 annually, for a total contract cost not to exceed $171,574 for a three-year Cooperative/Piggyback Purchase agreement with Miller Mendel, Inc., eSoph services.

Funding is included in the FY 2025-26 Police Department’s Patrol Measure A, Software Account.

Attachment A - The County of Tulsa, Oklahoma on behalf of the Tulsa County Sheriff’s Office Cooperative Piggyback Agreement
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1 (Rev. ..2025)

COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT
AGREEMENT SUMMARY:

1. Cooperative/Piggyback
Name:

2. Contractor:

3. Cooperative Agency
Agreement Name and
Agreement Number:

4. Cooperative Agency Initial
Agreement Term:

5. Cooperative Agency’s
Agreement-Options to
extend:

6. Cooperative Agency
Amended Term:

7. Cooperative Agency
Remaining Options to
Renew:

8. City of Stockton
Cooperative Purchase
Agreement Term:

9. City of Stockton
Cooperative/ Piggyback
Purchase Agreement
Amount:

ATTACHMENT A
The County of Tulsa, Oklahoma on behalf of the Tulsa County Sheriff's Office
Miller Mendel, Inc
Start Date: February 27, 2026
End Date: February 26, 2029
The Agreement including any extensions shall not go beyond 3 years as a total term
N/A
N/A
Not to Exceed $171,574 for the term of the
Agreement.

Master Software Subscription Services Agreement CMF#
20252140
N/A
195
2 (Rev. ..2025)

AGREEMENT
The City of Stockton, a California municipal corporation on behalf of itself and its associated entities ("City"), and the above-named Contractor (“Contractor”), do hereby agree that City shall be granted the pricing, terms, and conditions under the above referenced
(“COOP”) as such may be amended from time to time. The COOP and associated documents referenced in the agreement are incorporated herein as Exhibit A to this City Cooperative/Piggyback Purchase Agreement (“Agreement”).

Contractor shall grant such pricing, terms, and conditions to City for all procurements of goods and services, whether taking place on a City purchase order, purchasing card (credit card), or other purchasing modality, whether via telephone, via the Contractor website, or via direct purchase at a Contractor retail location. Agreement Term: The Term of this Agreement shall remain in effect from date of the signing of this Agreement through
unless terminated earlier by the City.
Insurance and Hold Harmless: In addition to the pricing, terms and conditions stated in the COOP and the associated documents incorporated herein as Exhibit A, Contractor shall, at Contractor’s sole cost and expense and for the full term of the Agreement or any extension thereof, obtain and maintain at least all the insurance requirements listed in attached Exhibit B.

3. Compensation: City and Contractor do hereby enter into this Agreement for available in the above-named COOP and associated documents incorporated herein as Exhibit A and referenced in the attached quote Exhibit C. In no way, shall payment to the Contractor during the term of this Agreement exceed for the purchase of
Any person signing this Agreement on behalf of City or Contractor does warrants that he or she has full authority to do so.

ATTACHMENT A
Master Software Subscription Services Agreement CMF# 20252 February 27, 2029
Please see Exhibit A for additional clauses 3.1.1, Multiyear Subscription. 3.1.3 "Entries" 3.1.4 "Unlimited" Services"

4.2.1 Multi-year Quotes and 11. NOTICES to be added to Coop agreement by vendor.

Background Investigations Software
$171,574
Background Investigations Software
196
3 4. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.

5. Applicable Law. Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

6. Special Funding. If Special Funding is applicable, Exhibit D – Special Funding Terms & Conditions are incorporated herein.

This Agreement may be amended only by a written amendment, consistent with the COOP, signed by Contractor and City.

CITY OF STOCKTON CONTRACTOR NAME.

By: __________________________
Signature
____________________________
Print name
Title: ________________________
[If Contractor is a corporation, signatures must
comply with Corporations Code §313]
By: __________________________
Signature
-RKQQ\)RUG, City Manager
Date:____________________
ATTEST:
____________________________
Katherine Roland, CMC, CPMC, City Clerk
APPROVED AS TO FORM:
___________________________
Lori M. Asuncion, City Attorney
__________________________
Print name
(Rev. ..2025)
Title: _______________________

ATTACHMENT A
197
DATE: October 29, 2025
FROM: Matney M. Ellis
Procurement Director
TO: Board of County Commissioners
SUBJECT: Agreement – Miller Mendel, Inc.

Submitted for your approval and execution is the attached Agreement between the Board of County Commissioners of the County of Tulsa, Oklahoma, on behalf of the Tulsa County Sheriff’s Office, and Miller Mendel, Inc., for a web-based Software as a Service (“SaaS”) subscription to assist in the management of pre-employment background investigations through a background investigation management system. If approved, the term of this Agreement shall begin upon approval and continue for 12 months, as further described in the attached.

Respectfully submitted for your approval and execution.

MME / dcc
SUBMITTED FOR: The November 3, 2025 BOCC meeting agenda.

DEPARTMENT

MEMO PROCUREMENT
CMF# 20252140

ATTACHMENT A
$33529('
11/3/2025
198
$.' ATTACHMENT A
199

ATTACHMENT A
200

ATTACHMENT A
201

ATTACHMENT A
202

ATTACHMENT A
203

ATTACHMENT A
204

ATTACHMENT A
205

ATTACHMENT A
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ATTACHMENT A
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ATTACHMENT A
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ATTACHMENT A
209

ATTACHMENT A
210

ATTACHMENT A
211

ATTACHMENT A
212

ATTACHMENT A
213

ATTACHMENT A
214

ATTACHMENT A
215

ATTACHMENT A
216
-POOJF4JNT
$IBJSNBO

ATTACHMENT A
217

ATTACHMENT A
218
-POOJF4JNT
$IBJSNBO

ATTACHMENT A
Attest:

Michael Willis, County Clerk
219

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ĂƚĞŽŶYƵŽƚĞ YƵŽƚĞEƵŵďĞƌ ŵŽƵŶƚ &ŝƌƐƚĂǇŽĨ
^ƵďƐĐƌŝƉƟŽŶWĞƌŝŽĚ
10/01/2025 2384-zĞĂƌϭ Ψϱϯ͕ϮϬϬ͘ϬϬ 02/27/2026
10/01/2025 2384-zĞĂƌϮ Ψϱϲ͕ϵϰϮ͘ϬϬ 02/27/2027
10/01/2025 2384-zĞĂƌϯ Ψϲϭ͕ϰϯϮ͘ϬϬ 02/28/2028

3.1.3 Entries. dŚĞŵĂǆŝŵƵŵŶƵŵďĞƌŽĨĂƉƉůŝĐĂŶƚ
ŶƚƌŝĞƐŝŶĐůƵĚĞĚŝŶƚŚĞ^ƵďƐĐƌŝƉƟŽŶ
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3.1.4 “Unlimited” Services. &ĞĞƐ ůŝƐƚĞĚŝŶYƵŽƚĞĨŽƌĂ^ĞƌǀŝĐĞ ƚŚĂƚŚĂǀĞ͞hŶůŝŵŝƚĞĚ͟ƵƐĂŐĞ ŶŽƚĞĚĂƌĞďĂƐĞĚƵƉŽŶƚǇƉŝĐĂůƵƐĂŐĞƌĂƚĞƐĨŽƌƐŝŵŝůĂƌůǇ ƐŝǌĞĚĂŐĞŶĐŝĞƐ͘/ĨŝƚďĞĐĂŵĞ ĂƉƉĂƌĞŶƚƚŚĂƚ ůŝĞŶƚŝƐƵƐŝŶŐŝƚƐ^ƵďscƌŝƉƟŽŶƚŽƐƵƉƉŽƌƚďĂĐŬŐƌŽƵŶĚŝŶǀĞƐƟŐĂƟŽŶƐĨŽƌŽƚŚĞƌĚĞƉĂƌƚŵĞŶƚƐ͕ ŽƵƚƐŝĚĞƚŚĞƐĐŽƉĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚŽƌŝĨůŝĞŶƚŝƐƵƟůŝǌŝŶŐ ĂŶƵŶƵƐƵĂůůǇůĂƌŐĞǀŽůƵŵĞŽĨ^ĞƌǀŝĐĞƐ ƚŽĂĚĞŐƌĞĞƚŚĂƚŝƐďĞǇŽŶĚƚŚĞƌĞĂƐŽŶĂďůǇ ĂŶƟĐŝƉĂƚĞĚĂŶĚŝŶƚĞŶĚĞĚƐĐŽƉĞŽĨƚŚŝƐŐƌĞĞŵĞŶƚ͕ DD/ƌĞƐĞƌǀĞƐƚŚĞƌŝŐŚƚƚŽĐĂƉƚŚĞƌĞůĂƚĞĚ^ĞƌǀŝĐĞƵƐĂŐĞĂŶĚͬŽƌƚŚĞǀŽůƵŵĞŽĨ^ĞƌǀŝĐĞƐ͘ƚ ůŝĞŶƚ͛ƐĚŝƌĞĐƟŽŶ͕ƚŚĞǇŵĂǇƌĞƋƵĞƐƚĂƋƵŽƚĞ ĨƌŽŵDD/ƚŽƌĞŵŽǀĞƚŚĞĐĂƉĂŶĚ ƉƌŽĐĞĞĚ ǁŝƚŚ ĞǆĐĞƐƐŝǀĞƵƐĂŐĞŽĨƚŚĞ^ĞƌǀŝĐĞĚƵƌŝŶŐƚŚĞ^ƵďƐĐƌŝƉƟŽŶWĞƌŝŽĚ͘

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ATTACHMENT A
220

11. NOTICES͘ůůŶŽƟĐĞƐĂŶĚƌĞƋƵĞƐƚƐŝŶĐŽŶŶĞĐƟŽŶǁŝƚŚƚŚŝƐŐƌĞĞŵĞŶƚǁŝůůďĞĚĞĞŵĞĚ ŐŝǀĞŶĂƐŽĨƚŚĞĚĂǇƚŚĞǇĂƌĞƌĞĐĞŝǀĞĚĞŝƚŚĞƌďǇŵĞƐƐĞŶŐĞƌ͕ĚĞůŝǀĞƌǇƐĞƌǀŝĐĞŽƌŝŶƚĞhŶŝƚĞĚ^ƚĂƚĞƐ ŽĨŵĞƌŝĐĂŵĂŝůƐ͕ƉŽƐƚĂŐĞƉƌĞƉĂŝĚ͕ĐĞƌƟĮĞĚŽƌƌĞŐŝƐƚĞƌĞĚ͕ƌĞƚƵƌŶƌĞĐĞŝƉƚƌĞƋƵĞƐƚĞĚ͕ĂŶĚ ĂĚĚƌĞƐƐĞĚƚŽDD/ŽƌůŝĞŶƚĂƚƚŚĞĨŽůůŽǁŝŶŐĂĚĚƌĞƐƐ͗
&ŽƌDŝůůĞƌDĞŶĚĞů͕/ŶĐ͕͘ĐŽƉǇŽĨEŽƟĐĞƐ;ƐͿƚŽ͗ &ŽƌůŝĞŶƚ͕ĐŽƉǇŽĨEŽƟĐĞ;ƐͿƚŽ͗ Dƌ͘<ƵƌƚdǇůĂŶĚĞƌ KĸĐĞŽĨƚŚĞŚŝĞĨŽĨWŽůŝĐĞ
ZǇůĂŶĚĞƌΘƐƐŽĐŝĂƚĞƐ ^ƚŽĐŬƚŽŶWŽůŝĐĞĞƉĂƌƚŵĞŶƚ
406 W 12ƚŚ ^ƚ ϮϮ
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sĂŶĐŽƵǀĞƌ͕tϵϴϲϲϬ ^ƚŽĐŬƚŽŶ͕ϵϱϮϬϮ

ATTACHMENT A
221
5 (Rev. ..2025)

EXHIBIT B

INSURANCE REQUIREMENTS
(Insert City Insurance Requirements)

ATTACHMENT A
222
City of Stockton
Legislation Text
File #: 25-1268, Version: 1

APPROVE MOTION TO AUTHORIZE A COOPERATIVE PURCHASE AGREEMENT FOR

CITYWIDE SIEMENS HVAC CONTROLS SOFTWARE SERVICES, AND DELTA WATER

TREATMENT PLANT BUILDING AUTOMATION SYSTEM UPGRADE PROJECT

RECOMMENDATION
It is recommended that the City Council approve a motion to:

1. Approve findings pursuant to Stockton Municipal Code section 3.68.070 in support of an exception to the competitive bidding process.

2. Approve the use of a Cooperative Purchase Agreement through Omnia Partners, Contract No. 2023003490, with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010.

3. Approve the use of a Cooperative Purchase Agreement through Omnia Partners, Contract No. 2023003490, with Siemens Industry, Inc., in the not to exceed amount of $491,498.28, for Delta Water Treatment Plant Building Automation System Upgrade, Project No. OM-26-009.

4. Authorize the City Manager to execute a three-year Cooperative Purchase Agreement with Siemens Industry, Inc., in the not to exceed amount of $607,266.05, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and Delta Water Treatment Plant Building Automation System Upgrade, Project No. OM-26-009.

It is also recommended that the City Manager be authorized to take appropriate and necessary actions to carry out the purpose and intent of this motion.

Summary
Public Works is responsible for the maintenance of approximately 500 Heating, Ventilation, and Air Conditioning (HVAC) units in City-owned facilities. The majority of these HVAC units utilize software from Siemens Industry, Inc. This software is used to remotely monitor, tune, and troubleshoot HVAC unit controls. An ongoing software service agreement with Siemens Industry, Inc. will minimize potential service disruptions and maintain a comfortable environment for City staff and patrons utilizing City buildings.

The Municipal Utilities Department’s (MUD) Delta Water Treatment Plant (DWTP) is operating with an outdated Building Automation System (BAS), which remotely controls and monitors HVAC, lighting, security, and other essential building systems software. Upgrading the BAS is necessary to sustain long-term system resilience and performance.

City of Stockton Page 1 of 3 Printed on 12/3/2025
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File #: 25-1268, Version: 1
Omnia Partners is a national cooperative procurement organization that offers publicly solicited contracts to government entities nationwide. Use of a Cooperative Purchase Agreement (COOP) streamlines administrative costs and procedures and takes advantage of volume purchasing while maintaining the integrity of the competitive bidding process.

It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Omnia Partners, with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and to execute a COOP, in the not to exceed amount of $491,498.28, for DWTP BAS Upgrade, Project No. OM-26- 009, for a combined COOP total of $607,266.05 (Attachment A).

DISCUSSION
Background
Public Works is responsible for the maintenance of approximately 500 HVAC units in City-owned facilities. The majority of these HVAC units utilize software from Siemens Industry, Inc. This software is used to remotely monitor, tune, and troubleshoot HVAC unit controls. An ongoing software service agreement with Siemens Industry, Inc. will minimize potential service disruptions and maintain a comfortable environment for City staff and patrons utilizing City buildings. The City previously issued annual Purchase Orders to Siemens Industry, Inc. for software support.

Since 2012, MUD’s DWTP supplies 30 million gallons of treated surface water a day to Stockton residences and commercial businesses. The DWTP’s BAS, which remotely controls and monitors HVAC, lighting, security, and other essential building systems software, is deteriorating. This deterioration has caused disruptions in site operations, affecting the working environment for DWTP staff and straining City resources allocated to manage these issues reactively.

Omnia Partners is a national cooperative procurement organization that offers publicly solicited contracts to government entities nationwide. Use of a COOP streamlines administrative costs and procedures and takes advantage of volume purchasing while maintaining the integrity of the competitive bidding process. Omnia Partners has a contract, No. 2023003490, with Siemens Industry, Inc. for software support services.

The initial term of Omnia Partners Contract No. 2023003490 with Siemens Industry, Inc. expires in May 2028, with an option to renew for five additional successive one-year periods through May 2033.

Should the lead agency and Siemens Industry, Inc. opt to renew the COOP, the City may also opt to extend the agreement beyond the initial three-year term.

Present Situation
An ongoing software service agreement with Siemens Industry, Inc. will provide for routine evaluations of system programming and on-call software troubleshooting to avoid any potential service disruptions. The service agreement will also assist with maintaining required temperature levels for critical operational equipment and a comfortable environment for City staff and patrons utilizing City buildings.

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Upgrading MUD’s DWTP BAS will resolve persistent automation control issues that are hindering site operations. The project will modernize field panels, integrate HVAC control systems across key DWTP buildings, and establish a resilient system to support the DWTP’s mission.

It is recommended that Council approve a motion authorizing the City Manager to execute a COOP through Omnia Partners with Siemens Industry, Inc., in the not to exceed amount of $115,767.77, for Citywide Siemens HVAC Controls Software Services, Project No. OM-26-010, and, in the not to exceed amount of $491,498.28, for DWTP BAS Upgrade, Project No. OM-26-009, for a combined COOP total of $607,266.05 (Attachment A).

Findings
Pursuant to Stockton Municipal Code section 3.68.070, Council may approve findings which support an exception to the competitive bidding process. These findings include:

1. Omnia Partners, through the University of California Procurement Services, the lead public agency, established a COOP for Building Management Services with Siemens Industry, Inc., Contract No. 2023003490.

2. The Request for Proposals (RFP) specifications used by Omnia Partners were assessed against the City’s standard RFP process and industry standards of quality and efficiency. The Procurement Division of the Administrative Services Department has determined that the contract meets the obligations of City procurement requirements.

3. Taking advantage of the leveraged procurement agreement negotiated by Omnia Partners will save the administrative expense of City staff conducting a separate procurement.

FINANCIAL SUMMARY
Funding for the COOP will be encumbered on a fiscal year basis. There is sufficient budget in the Public Works Facilities HVAC Maintenance Software Operating Account to cover year one of the Citywide Siemens HVAC Controls Software Services.

Additionally, there is sufficient funding in MUD’s Water Utility Operating Budget for the DWTP BAS Upgrade. Funding for future years will be appropriated as part of the annual operating budget development cycle.

Attachment A - Cooperative Purchase Agreement with Siemens Industry, Inc.

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COOPERATIVE/PIGGYBACK PURCHASE AGREEMENT
AGREEMENT SUMMARY:

1. Cooperative/Piggyback
Name:

Omnia Partners

2. Contractor: 6LHPHQV,QGXVWU\,QF

3. Cooperative Agency
Agreement Name and
Agreement Number:

Building Management Services – University of
California, CA, Contract No. 2023003490

4. Cooperative Agency Initial
Agreement Term:

Start Date: May 26, 2023
End Date: May 25, 2028

5. Cooperative Agency’s
Agreement-Options to
extend:

Option to renew for five (5) additional successive
one-year periods through May 25, 2033

6. Cooperative Agency
Amended Term:

N/A

7. Cooperative Agency
Remaining Options to
Renew:

Five (5) additional successive one-year periods
through May 25, 2033

8. City of Stockton
Cooperative Purchase
Agreement Term:

Start Date: Upon execution
End Date: May 25, 2028

9. City of Stockton
Cooperative/ Piggyback
Purchase Agreement
Amount:

Not to Exceed $607,266.05 for the term of the
Agreement.

AGREEMENT
The City of Stockton, a California municipal corporation on behalf of itself and its associated entities ("City"), and the above-named Contractor (“Contractor”), do hereby agree that City shall be granted the pricing, terms, and conditions under the above referenced Building Management Services - University of California, CA Contract # 2023003490 (“COOP”) as such may be amended from time to time. The COOP and associated documents referenced in the agreement are incorporated herein as ([KLELW$ to this City Cooperative/Piggyback Purchase Agreement (“Agreement”).

ATTACHMENT A
226
Agreement Term: The Term of this Agreement shall remain in effect from date of the signing of this Agreement through May 25, 2028, unless terminated earlier by the City.

If the Cooperative/Piggyback Agency extends the COOP with Contractor by a written amendment, the City has the option to extend the term of this Agreement by written amendment not to go beyond the term stated in the COOP fully executed amendment. Insurance and Hold Harmless: In addition to the pricing, terms and conditions stated in the COOP and the associated documents incorporated herein as ([KLELW $ Contractor shall, at Contractor’s sole cost and expense and for the full term of the Agreement or any extension thereof, obtain and maintain at least all the insurance requirements listed in attached ([KLELW%.

To the fullest extent permitted by law, Contractor shall hold harmless, defend and indemnify City of Stockton and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with Contractor’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City of Stockton. This obligation is independent of, and shall not in any way be limited by, the minimum Insurance obligations contained in this Agreement. These obligations shall survive the completion or termination of this Agreement.
Compensation: City and Contractor do hereby enter into this Agreement for building automation service upgrade in the above-named COOP and associated documents incorporated herein as ([KLELW $ and referenced in the attached quote Exhibit C. In no way, shall payment to the Contractor during the term of this Agreement exceed $607,266.05 for HVAC Controls Software Services and Building Automation System Upgrade. Any person signing this Agreement on behalf of City or Contractor does warrants that he or she has full authority to do so. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue for all claims in the Superior Court of the County of San Joaquin, Stockton Branch or, where applicable, in the Federal District Court of California, Eastern District, Sacramento Division.
Applicable Law. Deliverables must conform with all applicable federal, state, and local laws. Such conformity includes compliance with federal sanctions, and Contractor certifies that it has not and will not engage in prohibited transactions with sanctioned persons or entities.

This Agreement may be amended only by a written amendment, consistent with the COOP, signed by Contractor and City.

ATTACHMENT A
227
CITY OF STOCKTON 6,(0(16,1'8675<,1&
By: __________________________
Signature
____________________________
Print name
Title: ________________________
[If Contractor is a corporation, signatures must
comply with Corporations Code §313]
By: __________________________
Signature
Johnny Ford, City Manager
Date: ____________________
ATTEST:
____________________________
Katherine Roland CMC, CPMC, City Clerk
APPROVED AS TO FORM:
___________________________
Lori Asuncion, City Attorney
__________________________
Print name
Title: _______________________

ATTACHMENT A
228

BUILDING MANAGEMENT SERVICES
Executive Summary
Lead Agency: University of California Solicitation: 002815 RFP Issued: June 27, 2022 Pre-Proposal Date: July 6, 2022 Response Due Date: August 18, 2022 Proposals Received: #5 Awarded to: Siemens Industry, Inc., Regional Solutions and Services The University of California, Office of the President issued RFP # 002815 on June 27, 2022, to establish a national cooperative contract for UC locations including campuses, health centers, the Office of the President and its affiliates, for Building Management Services.

The solicitation included cooperative purchasing language in Sections 1.2 OMNIA Partners – National Program:

The University of California, as the Principal Procurement Agency, defined in Exhibit A, has partnered with OMNIA Partners, Public Sector (“OMNIA Partners”) to make the resultant contract (also known as the “Master Agreement” in materials distributed by OMNIA Partners) from this solicitation available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”), through OMNIA Partners’ cooperative purchasing program. The UC is acting as the contracting agency for any other Public Agency that elects to utilize the resulting Master Agreement. Use of the Master Agreement by any Public Agency is preceded by their registration with OMNIA Partners (a “Participating Public Agency”) and by using the Master Agreement, any such Participating Public Agency agrees that it is registered with OMNIA Partners, whether pursuant to the terms of a Master Intergovernmental Cooperative Purchasing Agreement, a form of which is attached hereto as Exhibit C, or as otherwise agreed to. Exhibit A contains additional information about OMNIA Partners and the cooperative purchasing program.

Notice of the solicitation was sent to potential offerors, as well as advertised in the following:
x CalUSource
x OMNIA Partners website
x USA Today, nationwide
x Arizona Business Gazette, AZ
x San Bernardino County Sun, CA
x Honolulu Star-Advertiser, HI
x The Herald-News – Will County (IL)
x The Advocate – New Orleans, LA
x The New Jersey Herald, NJ
x Daily Journal of Commerce, OR
x The State, SC
x Deseret News, UT
x Richmond Times-Dispatch, VA
x Seattle Daily Journal of Commerce, WA
x Houston Community Newspapers, TX
x Helena Independent Record, MT
x Las Vegas Review-Journal and/or Las Vegas Sun
x Kennebec Journal/Morning Sentinel, ME

ATTACHMENT A

EXHIBIT A
229
On August 18, 2022 proposals were received from the following offerors:
Johnson Controls
Siemens Industry, Inc.
Sunbelt Controls
Syserco, Inc
Schneider Electric
The proposals were evaluated by an evaluation committee. Using the evaluation criteria established in the RFP, the committee elected to enter into negotiations with Siemens Industry, Inc. and proceeding with contract award upon successful completion of negotiations.

The UC and Siemens Industry, Inc. successfully negotiated a contract, and the UC executed the agreement with a contract effective date of May 26, 2023
Contract includes: Service and Maintenance, Energy and sustainability, Asset Maintenance, Monitoring, Reporting and Event Resolution, Scalable Managed Services, Building Automation Services, Mechanical Services, Electrical Services, Fire Safety Services, Security Services, Energy Services, and Digital Services.

Term:

Initial five (5) year agreement from May 26, 2023 through May 26, 2028 with the option to renew for five (5) additional successive one-year periods through May 25, 2033.

Pricing/Discount: Available by contacting OMNIA Partners/Siemens Industry, Inc. for more details.

ATTACHMENT A

EXHIBIT A
230
1SJDJOH䞱BWBJMBCMF䞱VQPO䞱SFRVFTU䞱

ATTACHMENT A

EXHIBIT A
231
USFR Compliance Questionnaire

YES/NO COMMENTS

1. Based upon review of this contract for the procurement of construction, materials, and/or services that exceeded $100,000, did the cooperative follow the School District Procurement Rules (R7-2-1001 et seq)? YES
a. For this contracts awarded through competitive sealed bidding or competitive sealed proposals, did the cooperative:
1) Give adequate notice of the invitation for bid (IFB) or request for proposal (RFP)? R7-2-1022 or R7-2-1042(C) YES
Ads & Affidavits
2) Compile and maintain a list of persons who requested to be added to a list of prospective bidders, if any? R7-2-1023 YES Notification list
3) Issue the IFB or RFP at least 14 days before the due date and time set for bid or proposals, as applicable, unless a shorter time was determined necessary? R7-2-1024(A) or
R7-2-1042(B)
YES RFP Document
4) Include all required information in the IFB or RFP?
(Note: If the answer is “No,” the “Comments” should
specifically indicate which requirements were not complied with.) R7-2-1024(B) or R7-2-1042(A)
YES
5) Stamp sealed bids or proposals with the time and date upon receipt and store bids or proposals unopened until the due date and time set for opening? R7-2-1029 or R7-2-1045
YES Electronic System
6) If a multiple award was made for the IFB or RFP:
i. Did the cooperative establish and follow procedures for the use of multiple award contracts? R7-2-1031(D) and
R7-2-1050(C) YES
ii. Did the cooperative include in the solicitation(s)
notification that multiple contracts may be awarded, the cooperative’s basis for determining whether to award
multiple contracts, and the criteria for selecting vendors for the multiple contracts? R7-2-1031(C) and R7-2-1050(B)
YES RFP Document
Section 2.1
iii. Determine, with the specific reason(s) in writing, that a single award was not advantageous to the cooperative’s
members and retain documentation that supported the basis for a multiple award? R7-2-1031(D)
YES
iv. Limit contract awards to the least number of suppliers necessary to meet the requirements of the members?
R7-2-1031(D) and R7-2-1050(C) YES

ATTACHMENT A

EXHIBIT A
232

YES/NO COMMENTS
7) For contracts where only one responsive bid or proposal was received, determine that the price submitted was fair and reasonable, and that either other prospective offerors had reasonable opportunity to respond or there was not adequate time for resolicitation, and retain documentation that
supported the basis for the determination? R7-2-1032 or R7-2-1046(A)(1)

N/A

b. For this contract awarded through competitive sealed bidding, did the cooperative award the contracts to the lowest responsible and responsive bidder whose bid conformed, in all material respects, to the requirements and evaluation criteria set forth in the IFB? (Note: If the answer is “No,” the “Comments” should specifically indicate which requirements were not complied with.) R7-2-1031

N/A

RFP
c. For this contract awarded through competitive sealed proposals, did the cooperative award the contract to the offeror whose proposal was determined, with the specific reason(s) in writing, to be most advantageous to the cooperative’s members based on the factors set forth in the RFP and retain documentation that supported the determination? R7-2-1050

YES

See Evaluation
Documentation

2. Did the cooperative have signed conflict-of-interest disclosures filed for any employee or nonemployee evaluation committee members? R7-2-1008 and R7-2-1015
Yes Part of UC’s policies

3. If the cooperative used a qualified select bidders list to procure construction services, did the cooperative comply with requirements of R7-2-1101?
N/A

4. If the cooperative used construction-manager-at-risk, design-build, or job-order-contracting to procure construction services, did the cooperative comply with the requirements of R7-2-1100 through R7-2-1115?

N/A

5. If the cooperative procured goods and services using reverse auctions or electronic bidding, did the cooperative comply with the requirements of R7-2-1018, R7-2-1021, or R7-2-1041?

N/A

6. For purchases made through the Simplified School Construction Procurement Program, did the cooperative follow the requirements of R7-2-1033? (Note: If the answer is “No,” the “Comments” should specifically indicate which requirements were not complied with.)

N/A

7. If the cooperative used multi-term contracts for any of the contracts tested in question 1:
a. Were the terms and conditions of renewal or extension, if any, included in the IFB or RFP? A.R.S. §15-213(K) and R7-2-1093 YES
b. For materials or services and contracts for job-order-contracting construction services that were entered into for more than 5 years, did the cooperative determine in writing, before the procurement solicitation was issued, that a contract of longer duration would be advantageous to its members? A.R.S.
§15-213(K) and R7-2-1093

N/A

8. Did the cooperative prevent additional purchases by new members that would materially change the volume of goods or services estimated in the original solicitation? R7-2-1011

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EXHIBIT A
233

YES/NO COMMENTS

9. Did the cooperative maintain current cooperative purchasing agreements with participating school districts? R7-2-1191 through R7-2-1195 YES
For questions 10 and 11: If the cooperative had any emergency or sole source procurements, the audit firm must test all such procurements.

10. Based upon review of any emergency procurements, was the basis for each emergency procurement reasonable; did the cooperative maintain a written statement for each emergency procurement documenting the basis for the emergency, the selection of the particular contractor, and why the price paid was reasonable; and was such statement signed by the individual authorized to initiate emergency procurements? R7-2-1055 and R7-2-1056 N/A

11. Based upon review of any sole source procurements, was the basis for the sole source procurement reasonable, and did the cooperative retain its written determination that there was only one source for the required materials, service, or construction items? R7-2-1053 N/A

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From: Marilyn Biscotti
To: Hamilton, Matthew
Cc: Fred Flores
Subject: UC BMS Notice of Intent to Award
Date: Wednesday, November 9, 2022 10:12:58 PM
Attachments: image001.png
image002.png
image003.png
November 9, 2022
Matthew Hamilton
Siemens
(916) 524-7087
[email protected]
Dear Matthew,
SUBJECT: Notice of Intent to Award
RFP # 002815 RFP-UC System-wide Building Management Systems The University of California (UC) has completed its evaluation of proposals in response to the above referenced RFP and intends to award a contract to your company. I will represent UC in this regard with appropriate representation from UC and OMNIA Partners members moving forward, and I will contact you soon to begin negotiating the contract. Kindly direct to me all communications regarding this Notice of Intent to Award.

This Notice of Intent to Award is non-binding. If your company does not agree with UC on contract terms, UC will not award a contract to your company. Your company may not begin work, purchase materials, or enter into subcontracts relating to the project before both parties sign a contract, unless prior written approval is obtained from me. UC reserves the right to cancel this Notice of Intent to Award at any time before both parties sign a contract.

I look forward to working with you to put contract terms in place. I will be sending you a follow up email to discuss the proposed date and process of the interview meeting. Please forward this letter to the appropriate persons on your Team. Please don’t hesitate to contact me if you have any questions about this Notice of Intent to Award.

Sincerely,
Marilyn Biscotti
Senior Commodity Manager – Facilities, Maintenance & Capital Programs Procurement Services, Strategic Sourcing Centers of Excellence University of California, Office of the President
510-587-6095

ATTACHMENT A

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[email protected]
cc: Fred Flores, OMNIA

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Sustainability
report
2021

ATTACHMENT A

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Technology to
Transform the Everyday
Our Purpose
Key figures 1
303,000
Employees

15.0 %
Adjusted EBITA margin
for the Industrial Businesses
€ 62.3 billion
Revenue
€ 6.7 billion
Net income
1 Including Varian.
2 Publicly listed subsidiary of Siemens; Siemens’ share in Siemens Healthineers: 75 %.

Joint values unite us under the brand Siemens with Siemens Healthineers (SHS) Siemens Siemens
Healthineers 2
Health

SCOPE OF SUSTAINABILITY
REPORT
Digital transformation of Industry,
Infrastructure and Mobility
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.

SIEMENS SUSTAINABILITY REPORT 2021 2

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Contents 3
Foreword 4
The COVID-19 Pandemic 8
1 Siemens at a glance 11

1.1 Our DEGREE framework
sets clear and measurable ambitions 12

1.2 Company profile 14

1.3 Strategy 17

1.4 Our contribution to sustainable
development of societies 20

1.5 Our key areas of impact 26

1.6 Customers 28

1.7 Research and development 32
2 Our sustainability management 36

2.1 Materiality assessment 37

2.2 Sustainability governance and organization 40

2.3 Partnerships and collaborations
for sustainability 43

2.4 Sustainability ratings reflect our
performance 45
3 Governance 47

3.1 Compliance 48

3.2 Human rights 56

3.3 Sustainable supply chain practices 62

3.4 Cybersecurity and data privacy 67
4 Environment 73
Holistic environmental protection 74

4.1 Climate action 76

4.2 Conserving resources 83

4.3 Product stewardship 88
5 Social 93

5.1 Working at Siemens 94

5.2 Diversity, Equity & Inclusion 100

5.3 Professional education and
lifelong learning 103

5.4 Occupational health and
safety management 106

5.5 Corporate citizenship 110
6 Our sustainability indicators 113
7 Annex 130

7.1 Reporting methodology 131

7.2 Environmental Portfolio reporting
principles 134

7.3 Task Force on Climate-Related
Financial Disclosures (TCFD) 139

7.4 GRI Standards – key topics
and boundaries 146

7.5 WEF IBC Metric 148

7.6 SASB – Electrical Electronic
Equipment Index 152

7.7 The United Nations Global Compact 154

7.8 United Nations CEO Water Mandate 159

7.9 Independent auditor’s limited
assurance report 161

7.10 Notes and forward-looking statements 164

7.11 Further information and
information resources 166
Contents
SIEMENS SUSTAINABILITY REPORT 2021 3
Content

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Foreword
Dear Readers,
the world is changing, at an increasing pace every
day. At the same time, in some ways the world isn’t
changing fast enough to overcome the ecological and
social challenges that confront us all.

Thanks to technological progress we are able to provide food for more people today than at any time in history. The percentage of very low-income people
in the world is at its lowest level ever. And in the past 20 years alone, a billion people have escaped extreme
poverty.

The dilemma of our time
But there’s a price to pay for that progress, and that
price is increasing every day. We’re emitting ever
more CO2, and we are accelerating climate change.

Air and water are in a concerning state in many regions. Not to mention growing inequality in many societies.

Humanity today faces a double challenge: How can
we manage to provide a good life for more and more
people and – at the same time – halt climate change
and environmental pollution? How can we safeguard
the foundations of life for future generations?
The answer is: We need to decouple economic growth
from the consumption of natural resources. We must
do more with less.

Doing more with less is something we can already do
today. In the past decades, for instance, technological progress has enabled more than 30 countries to decouple economic growth and consumption from carbon emissions.

Siemens has contributed to that progress – and we
want to speed it up even more. In collaboration with
our customers and partners, we’re working to transform industry, infrastructure, mobility, and healthcare: the backbone of our society. We’re certain that with new technologies we can generate progress and
growth for every society, while consuming fewer resources. We call this “Technology with Purpose”.

How “Technology with Purpose” can help
Every day, our “Technology with Purpose” demonstrates what is already possible. For instance, we’re supplying the U.S. railway Amtrak with trains whose
new drive technologies use less energy and can run
entirely free from fossil fuels. Artificial intelligence lets us guarantee that the trains are available almost
100 percent of the time. Compared with the trains
that were mostly in use before, we are thus significantly reducing CO2 emissions – while at the same time carrying 1.5 million more passengers.

In Egypt, we’re about to build the country’s first electrified, high-speed, long-distance train line. It will provide new, affordable, sustainable mobility, counteract urban sprawl, and create new opportunities for economic growth and employment.

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

In collaboration with our
customers and partners, we’re
working to transform industry,
infrastructure, mobility, and
healthcare: the backbone of our
society.

Foreword
SIEMENS SUSTAINABILITY REPORT 2021 4

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Another example is our digital twins. They can simulate a vast range of products and processes in fields as diverse as industry, infrastructure, construction,
and city planning. They help to save time, energy, and
resources. With our British customer TrakRap, for instance, we’ve been able to develop new machines that consume 90 percent less energy and 70 percent
less plastic when making film packaging for bottles.

We’re building state-of-the-art plants that extract
green hydrogen, and we’re connecting them with
industries and energy storage facilities. Our model
project at Wunsiedel in northern Bavaria, Germany,
shows how an entire community can be supplied with
100 percent renewable energy, and how hydrogen
can serve for long-term energy storage. This helps
ease grid bottlenecks and keep the power grid flexible.

These and many other projects show: With the right
technology, we can do more with less. If we truly
want to become more sustainable and achieve our
climate goals, however, we have to move even faster
and make sustainable technologies the new standard.

Here we at Siemens are leading by example.

What we expect from ourselves
Six years ago, we were one of the world’s first large
industrial corporations to commit to becoming
climate-neutral by 2030. Since then, we’ve cut our
CO2 emissions by more than half. And we’re working
full-speed to achieve our ambitious goal even earlier,
if possible. For this purpose we designed, for example, digital twins that help us to develop a clear timeline
for making our factories and large buildings
climate-neutral.

What drives us is our desire to apply technology that
will make our own activities – and those of our partners and customers – more sustainable. The Dow Jones Sustainability Index (DJSI) published in November 2021 ranked Siemens as the most sustainable company in its industry group. This recognition confirms that we are on the right track.

With our new ambitious DEGREE 1 framework, we are
taking yet another step forward. It represents a whole
new level in our commitment to sustainable development, good governance, social responsibility, and protecting the environment.

Every day we work hard on protecting people and our
environment and on mitigating damage to the climate. One example of what we’re doing: We’re aiming to put the principle of the circular economy to work at our company and to eliminate landfill waste
by 2030.

We’ve adopted sustainability as a strategic imperative
for all our investment decisions – whether they’re
about corporate acquisitions, customer projects, or
assessments of suppliers.

By joining the Science Based Targets initiative (SBTi)
we’ve committed to reporting on our own operating
emissions and those in our value chain.

And we’ll be backing up that commitment with additional actions. As a member of the Climate Group – an initiative of like-minded companies – we’ve agreed
to convert entirely to renewable energy by 2030, to
use or run all our buildings on a CO2-neutral basis, and to switch entirely to electric vehicles.

Sustainability is the heart of our
business and the engine that drives it.

Which is why we’ve developed an
ambitious new sustainability
framework: DEGREE.
1 DEGREE is an acronym for Decarbonization, Ethics, Governance, Resource Efficiency, Equity, and Employability.

Foreword
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We also want to cut emissions throughout our value
chain at least by 20 percent until 2030 (basis: fiscal
2020). To achieve this goal we support our suppliers,
for example, with Carbon Web Assessments to analyze their carbon footprint and reduce it efficiently.

Empowered employees are crucial to our success.

Diverse, inclusive teams can do wonders if each of
the team members can contribute their own individual abilities and feels respected and motivated.

We help our employees to embrace change, remain
resilient and relevant, and thus sustainably employable over a long working life with their skills in a constantly changing and challenging environment.

That's why we at Siemens continually invest in training and development, helping our employees develop a positive, forward-looking mindset that helps them
take on challenges, grow from them, and ultimately
rise above them. We refer to this as a Growth Mindset.

Last year, we invested more than 300 million euros
in training and development. We use our own digital
knowledge to move learning into the digital world.

To date, we have around 100,000 pieces of digital
learning content available.

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 Siemens
Integrity Initiative, we’re supporting organizations
around the world to combat corruption.

All of this shows: We’re speeding up our company’s
sustainable transformation. And this commitment is
recognized around the world.

Shared principles, rules, and solutions for
transformation
We’ve already gained a lot of ground, and we’re proud
that not even a pandemic has been able to stop us.

But we still have a long way to go. That goes for our
company as well as our entire society.

At Siemens, we’ll continue working hard for progress
at every level. We’re encouraging change – and transforming the everyday: We want to make people’s lives better all over the globe – today and in the future.

That’s why we’re investing extensively in research and
development. In global alliances like the UN Global
Compact, the World Economic Forum, and econsense,
and in collaboration with many universities, we’re
developing principles, rules, and solutions to speed
up sustainable transformation worldwide.

Most of all, we’ll keep working for and with our customers to do more with less every day. We will only be able to build a sustainable world if we can make
today’s cutting-edge technologies the standard of
tomorrow.

Dr. Roland Busch Judith Wiese
We support our employees to take on
challenges, grow from them and rise
above them. We refer to this as a
Growth Mindset.

Foreword
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Again in 2021, COVID-19 was our constant companion.

We are still in the pandemic, crisis and emergency
management was a particular challenge this year as
well. ANNUAL FINANCIAL REPORT 2021 COMBINED
MANAGEMENT REPORT 8.3.1 STRATEGIC RISKS
Balance between opportunities and risks
Since the beginning of 2021, more and more vaccines
have been approved and the global vaccination
campaign against the coronavirus has gathered pace.

In addition, some sectors such as the automotive
industry and mechanical engineering have recovered
more quickly than expected. The general economic
situation has improved despite considerable regional
differences. The demand for our services has grown
and we have been able to satisfy this demand and
deliver consistently good operating results. Thus,
Siemens has continued to follow an accelerated and
value-enhancing course of growth across all business
segments and regions.

Nothing is more important to us than protecting our
people. Despite the hope and optimism fueled by
vaccinations, we are still committed to preventing the
further spread of the coronavirus, combating it, and
curbing it with all our strength. This commitment
requires that we as a company continue to implement
sustainable hygiene and protection concepts together
with all our people.

Lasting protection and enduring
appreciation
The COVID-19 crisis team established in 2020 and
the decentralized emergency management teams
continued to closely observe the course of the global
pandemic in 2021 and reacted to regional
developments quickly and efficiently. The established
hygiene and protection concepts were adjusted
according to the prevailing circumstances and
communicated transparently via local channels. The
success of this approach is attested by the trend of
case numbers in Europe, insofar as the number of
infections of our people is relatively low compared
to the overall case numbers in Europe (considering
only those European countries that host Siemens
locations).

Siemens supports national vaccination campaigns as
the most important tool against COVID-19. In some
countries such as Germany, we have been able to
offer all our people the chance to get vaccinated by
the company’s Medical Services.

The longer the pandemic lasts, the more important it
becomes to protect the health and safety of our
people and keep up their motivation. Although the
global employee survey showed a high degree of
satisfaction with Siemens’ handling of the crisis and
the support we provide to our people, the restrictions
imposed on people’s private and work activities have
led to widespread COVID-19 fatigue. In video
messages from Managing Board members and in
local and centralized initiatives, Siemens has
expressed its appreciation for the fact that our people have not only been able to protect themselves and
their co-workers, but have also made an invaluable
contribution to the success of our company with their
responsible behavior over many months and under
extremely difficult working conditions in many cases.

Trust in our solutions
The second year of the pandemic has shown that we
will navigate the crisis safely, making a valuable
contribution to society with our many initiatives and
solutions. This is demonstrated by the following
activities and projects:

THE COVID-19 PANDEMIC
Healthy and safe amid the pandemic
The COVID-19 Pandemic
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→ The COVID-19 Aid Fund, established in April 2020
and largely managed by the charitable
organization Siemens Caring Hands e.V.,
continued to provide quick, unbureaucratic
support to aid organizations and medical
institutions, as well as those affected by the crisis
worldwide. Since April 2020, Siemens and our
people have donated more than €7 million, which
has been used to finance important aid projects
throughout the world. These include local
initiatives in collaboration with NGOs in certain
countries and other global initiatives managed
directly by Siemens Caring Hands e.V. For
example, Siemens has made a lasting contribution
to combating the pandemic in India by using the
aid fund to supply 100 oxygen concentrators to
hospitals in Bengaluru, Goa, and Chennai, in
addition to the company’s local efforts in that
country. The concentrators help treat COVID-19
patients. In addition, donated funds have been
used to provide additional medical devices,
hygiene sets, masks, and food to affected families
and facilitate access to education in digital
formats. The aid fund supports COVID-19
projects in more than 40 countries, including
Brazil, India, the United States, Germany, Vietnam,
Sudan, Mexico, South Africa, Canada, and
Bangladesh.
→ Since the beginning of the pandemic, Siemens has
provided aid funds totaling approximately
€18 million, via both the COVID-19 Aid Fund and
other charitable projects directly financed with
company funds.
→ Bringing a vaccine quickly to market is critical for
combating a pandemic. Siemens Digital Industries
helped the pharmaceutical company BioNTech
refit its factory in Marburg for the production of
COVID-19 vaccines in a record time of only five
months. This success will now be transferred to
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.
→ With its smart building solutions, Siemens Smart
Infrastructure creates safe and protected indoor
spaces in office buildings and factories, healthcare
facilities, and public buildings. These solutions
help to combat the spread of the virus and safely
revive economic and social life. For example, the
National Center for Civil and Human Rights
(NCCHR), in Atlanta (United States), was one of
the first cultural institutions to integrate thermal
imaging and air purification technologies from
Siemens and its partners into its existing health
and safety protocols. As a result, the center was
able to reopen its doors to visitors and offer a safe
place for learning and open dialog in the midst
of the pandemic.
→ Especially during the COVID-19 pandemic,
mobility is essential for keeping society and the
economy healthy and running smoothly. Siemens
Mobility’s products and solutions help mobility
providers continue to operate efficiently and
sustainably while also reducing the risks for
passengers. With our MaaS (Mobility as a Service)
platforms, we can help railway operators provide
seamless mobility. Transparent travel details and
options to plan and pay for trips – even intermodal
trips – without physical contact help make travel
safe and comfortable and therefore contribute to
a more sustainable use of public mass transit.

One MaaS solution will be deployed on a
country-wide basis in Spain, for example, where
the railway operator Renfe has engaged Siemens
Mobility and everis to develop and operate a
smart MaaS platform.

In these times of dramatic change for companies,
industries, and markets, it has been shown that our
customers and partners can trust Siemens to help
them solve their pressing challenges and make a real
difference in the world.

The COVID-19 Pandemic
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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.

The COVID-19 Pandemic
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Siemens at
a glance

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1.1 Our DEGREE framework sets clear and measurable ambitions

1.1 Our DEGREE framework
sets clear and measurable ambitions
A clear framework for sustainability
Sustainability is an integral part of our business – it is part of our DNA. We are taking our ESG commitment to the next level with our DEGREE framework.

It constitutes a 360-degree approach for all stakeholders – our customers, our suppliers, our investors, our people, the societies we serve, and our planet. In
addressing the three aspects of ESG, we are building a
better future that helps us stay within the planetary
boundaries, helps us foster a culture of trust, empowerment, and growth, supports inclusive economic opportunities, and ensures that our people and
businesses remain resilient and relevant for whatever the future holds.

The DEGREE framework is based on six fields of action
that drive sustainability and are dynamic and continuously evolving. We have set clear priorities and ambitions for key ESG issues, which we are driving within our own operations and together with our customers
and suppliers. The DEGREE framework applies to all
Siemens-affiliated companies excluding Siemens
Healthineers (SHS). The sustainability concept of SHS
follows the same basic principles, which reflects our
expectations as majority shareholder.

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

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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. 1 Science 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 SUSTAINABILITY REPORT 2021 13

1.1 Our DEGREE framework sets clear and measurable ambitions Baseline Progress until end of FY 21 Ambitions
Decarbonization 1. Net zero operations by 2030 in line with SBTi pathway 1

2. Net zero supply chain by 2050,
20% emissions reduction by 2030
926 kt CO2
2 8,098 kt CO2e 3
–36%
–1%
–50%
–20%
Ethics 3. Striving to train 100% of our people on
Siemens’ Business Conduct Guidelines
every three years
− − 76%4 100%
Governance 4. ESG-secured supply chain based on supplier commitment to the Supplier Code of Conduct

5. Long-term incentives based on
ESG criteria 5
− −
− −
Suppliers committed
ESG criteria anchored
− −
− −
Resource
efficiency

6. Next-level robust ecodesign for 100% of relevant
Siemens product families by 2030

7. Natural resource decoupling through increased
purchase of secondary materials for metals
and resins7

8. Circularity through waste-to-landfill reduction
of 50% by 2025 and toward zero landfill waste
by 2030
26%6
− −
7,000 t 6
26%
Part of Eco Efficiency @ Siemens 6
7,000 t
100%
− −
–50%
Equity 9. 30% female share in top management by 2025

10. Access to employee share plans: maintain high
level and expand globally to 100% 8

11. Global commitment to the New Normal
Working Model 9

22.7%3
98%6
− −

27.5%
98%
Roll-out continued
30%
100%
– –
Employability 12. Double digital learning hours
by 2025

13. Access to employee assistance program:
maintain high level and expand globally to
100% by 2025

14. 30% improvement in Siemens’ globally
aggregated LTIFR10 by 2025
7h3
82%3

0.313
87%
–13%
x2
100%
–30%
x2.5

FURTHER INFORMATION

ON OUR AMBITIONS

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A focused technology company
Siemens AG (Berlin and Munich) is a technology company focused on the fields of industry, infrastructure, mobility, and healthcare.

By combining the real and digital worlds, Siemens
empowers its customers to transform their industries
and their markets.

In addition to its core businesses of Digital Industries, Smart Infrastructure, and Mobility, Siemens is the
majority shareholder of the exchange-listed company
Siemens Healthineers (SHS) – a globally leading provider of medical technology that is shaping the future of healthcare.
– Internationally active, focused technology
company
– Purpose: Technology to Transform the
Everyday
– Combining the real and digital worlds to
benefit customers and society

1.2 Company profile

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

1.2 Company profile
SIEMENS SUSTAINABILITY REPORT 2021 14
Industrial businesses
Other businesses Services
Digital Industries
Portfolio Companies
Smart Infrastructure
Siemens Advanta
Mobility
Siemens
Financial Services
Siemens Healthineers1
Siemens
Real Estate
Global
Business Services
Businesses and services

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Our corporate structure
Our corporate structure comprises business units,
countries, and service and governance units. Our
national subsidiaries are close to our customers,
create market opportunities, and drive growth on the
basis of a lean organizational structure. Siemens
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.

Shaping the industrial revolutions
Siemens has shaped the industrial revolutions ever
since it was founded. Thanks to its extensive portfolio expertise and many years of experience in combining
the real and digital worlds, Siemens is able to help
shape the sustainable development of Industrie 4.0.

1.2 Company profile
SIEMENS SUSTAINABILITY REPORT 2021 15
Shaping the industrial revolutions
1st Industrial Revolution Steam power –
Shift from manual to
mechanical production
Electrification –
Introduction of the assembly
line and advances in
transportation
Automation –
Automation of production
and computerization
Digitalization –
Combining the real and
the digital worlds in
industry, infrastructure,
mobility, and healthcare
2nd Industrial Revolution
3rd Industrial Revolution
4th Industrial Revolution

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1 Including Varian.

Milestones of a 174-year history
Siemens is a technology company that operates in
nearly all countries of the world. Ever since it
was founded in 1847, it has stood for technical
performance, innovation, quality, reliability, and
internationality.

Key figures1
In fiscal 2021, which ended on September 30, 2021,
Siemens generated revenues of €62.3 billion and a
profit after taxes of €6.7 billion. As of September 30, 2021, the company had around 303,000 employees worldwide.

1.2 Company profile
SIEMENS SUSTAINABILITY REPORT 2021 16
Milestones in a 174-year history
Werner von Siemens,
company founder,
visionary and inventor
TIA Portal takes automation
a stage further
Pointer telegraph
lays the foundation of
Siemens as a global
company
Test operation of the
world‘s largest rotor for
offshore wind turbines
The dynamo makes
electricity part of
everyday life
Breakthrough of highvoltage direct-current
(HVDC) transmission
MindSphere, the cloudbased IoT operating systemLaunch of first project for
Siemensstadt 2.0
First magnetic
resonance imaging
scanner
Charter of Trust: a joint
initiative for a secure
digital world
Comfy workplace app makes
it safe to return to the office
during the coronavirus
pandemic
1816–1892
1983
2019
1975
2020
1847
2010
2018
1866
2012
2016
Siemens electrifies the
Irish Free State with a
hydroelectric power plant
1925
World’s first
electric railway
1879
SIMATIC revolutionizes
automation
1959

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With the spin-off of Siemens Energy on October 1, 2020 our company entered a new chapter. In this new phase as a focused technology company,
Siemens is focusing on technologies that drive the

1.3 Strategy
– Continuous improvement on the basis of four
strategic priorities
– Sustainability is an integral part of our
business: Our technologies and solutions
support the transition toward a sustainable
future
– Clear action fields and ambitions along our
DEGREE framework

COMPANY PRESENTATION
digital transformation of industry, smart infrastructure, and sustainable mobility. Under our strategy the core business units have more entrepreneurial
freedom to focus on their own customers and markets.

We maximimize the benefits for customers by combining the real and digital worlds.

Siemens’ unique ability to combine the real and digital worlds is based on three elements: Using its experts’ profound domain knowhow, Siemens is
developing digital applications for specific industries.

In addition, Siemens is pooling expertise to drive the
core technologies that are used across the company.

And thanks to a strong ecosystem including custom1.3 Strategy SIEMENS SUSTAINABILITY REPORT 2021 17
Strengthening and
empowering people
We strengthen our customers,
partners, and employees so that
they can make the most of their
abilities.

Value for our customers
We identify the needs of our
customers as early as possible –
ideally before our customers
themselves are aware of them.

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

Our four strategic priorities

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ers, partners and startups, Siemens brings customer-oriented innovations fast to market.

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.

The company is rapidly driving its technology portfolio: software and automation solutions and an IoT platform, plus core technologies in areas such as
artificial intelligence (AI), digital twins, 5G, industrial edge and cybersecurity. Since Siemens’ core business and its digital business will increasingly reinforce 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
Siemens. It contains six action fields, within which
we have defined 14 ambitions. We continually
develop these action fields in order to address central ESG aspects (E for Environment, S for Social, and G for Governance) from the perspective of all our
stakeholders.
“Sustainability is part of our DNA:

It is not an option,
it is a business imperative.”
Judith Wiese, Chief People and Sustainability Officer,
and member of the Managing Board of Siemens AG
DEGREE: A clear framework for
sustainability
The answers to the challenges of our time are vitally
important for the quality of life for people living today and future generations. Every degree counts as we
strive to responsibly fulfill the needs of a constantly evolving society. DEGREE underlines the necessity to
limit global warming to 1.5 degrees Celsius.

That is why we are taking our sustainability approach
to the next level with our DEGREE framework. It
represents a 360-degree approach that includes all
critical action fields for Siemens. With this approach, we address all our stakeholders: our customers, our
investors, our people, the societies which we serve,
and our planet:
1 Science Based Targets initiative including SHS.

D for Decarbonization – With our portfolio, we help our customers lower their emissions and thereby achieve
their decarbonization goals. Besides aiming to make our own business operations climate-neutral by 2030, we
also strive to lower all emissions associated with us – from our supply chain throughout the use phase of our
products. With its commitment to the Science Based
Targets initiative, Siemens supports the Paris Climate
Agreement goal to limit global warming to 1.5 degrees
Celsius. 1

1.3 Strategy
SIEMENS SUSTAINABILITY REPORT 2021 18

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E for Ethics – At Siemens, we pursue a zero-tolerance
approach to corruption as well as other violations of
applicable laws and our own Business Conduct Guidelines. Our values and ethical standards are embedded in our Business Conduct Guidelines, on which we will
provide regular training to all our people. Our company is marked by a culture of trust. We co-founded the initiative “Charter of Trust” to protect data and
promote cybersecurity in a trustworthy digital world.

G for Governance – It has been clearly shown that
strong governance goes hand in hand with better,
more sustainable business. Besides embedding these
principles in our own management systems, we extend them to our suppliers, who are obliged to follow a comprehensive Code of Conduct. Furthermore,
sustainability criteria are an integral element of our
long-term variable compensation programs1 for both
the Managing Board and our senior management.

R for Resource Efficiency – We want to accelerate
recycling and circular economy. Therefore, we have
developed a new standard for the design of environmentally friendly products, which contains clear product design criteria and shall cover 100 % of
relevant product families. Our technology enables
sustainable design approaches for products and
solutions, both for our customers and ourselves. In
addition, we promote decoupling from natural
resources by increasingly purchasing secondary
materials.2 By 2025, we are aiming to reduce our
landfill waste by 50 % from the baseline year 2021.

E for Equity – Equality and respect are the core of our corporate values. Our goal is to be the employer of
choice and to foster diversity, inclusion, and community. Thereby, we aim to create a sense of belonging and a safe environment, where all our people can give
their best. By 2025, we plan to have a 30 % female
share in our top management. Also, we want to maintain access to employee share plans at a high level and expand globally to 100 %.3 As one of the first
major industrial players we have committed to a “new
normal” 4 in which our people can work remotely for
two to three days per week, fostering a culture of trust and empowerment.

E for Employability – In a constantly changing world,
it is critically important that we as a company and as
individuals remain resilient and relevant. At Siemens,
we are constantly investing into development and
education of our people. We strongly focus on digital
learning, employee assistance program, and
occupational health & safety. For example, we are
aiming to reduce the injury rate by 30 % until 2025,
compared to the baseline year 2020. 5

ADDITIONAL INFORMATION
The DEGREE framework applies to Siemens AG
except Siemens Healthineers, which is an
independently stock-listed company. Under the
Siemens brand, we are closely connected to Siemens
Healthineers via shared values, including
sustainability in all its dimensions. These values
contain the central ESG aspects (E for Environment,
S for Social, G for Governance) from the perspective
of all our stakeholders – the foundation of DEGREE
framework. In its sustainability concept, Siemens
Healthineers pursues the same values, which
represent our expectations as majority shareholder.

The specific Siemens Healthineers sustainability
approach is described in a dedicated report.
1 Assessed based on Siemens-internal ESG/Sustainability index, based on Customer Net Promoter Score, CO2 Reduction, Training Hours. 2 Product specification for use of secondary materials under development.
3 Where legally possible and reasonable.
4 For employees with job profiles that make this feasible and reasonable.
5 LTIFR: Lost Time Injury Frequency Rate (of Siemens employees and temporary workers).

1.3 Strategy
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1.4 Our contribution to sustainable
development of societies
The United Nations’ 17 Sustainable Development
Goals (SDGs) and their 169 targets serve as a compass
for the joint efforts for change that must be made by
governments, businesses, cities, and civil society as
a whole if we are to achieve a more sustainable future.

The SDGs and their related targets address the most
important economic, social, environmental, and
– Effective influence in achieving UN’s
Sustainable Development Goals (SDGs)
– Our contribution is measured with Business
to Society (B2S) methodology, using six
globally valid areas of impact
– SDGs included in our DEGREE sustainability
framework
Allocation of the SDG goals to Siemens sustainability framework DEGREE Equity
Resource efficiency
Decarbonization
Ethics
Employability
G
o
v
ern
a
nce

1.4 Sustainable development of societies
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governance-related challenges of our times, and thus
help stimulate transformational change. Adopted as
values, the SDGs also influence Siemens as a company.

They are firmly associated with our new DEGREE
sustainability framework, which serves in-house to
guide our sustainability management, and also lays
down the details of our ambitions for sustainability.

The SDGs are reflected as well in our Business to
Society (B2S) methodology, which exemplifies Siemens’
global effect on the outside world, and how we generate value for all our stakeholders.

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 valueenhancing growth. At the same time, we offer cost-effective, innovative solutions for the transition to carbon neutrality. These technologies support
customers in achieving their objectives while
consuming fewer resources. To varying extents,
Siemens helps achieve most of the SDGs in the
UN’s Agenda 2030 in four important ways:
→ through our products and solutions,
→ by doing business responsibly,
→ through our expertise and thought leadership,
and
→ through our corporate citizenship activities and
community engagement.

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How we contribute to achieving the SDGs
From a global standpoint, these are the SDGs where
Siemens has a high or medium impact:

Goal 3 – Ensure healthy lives and promote
well-being for all at all ages
We make a significant impact on SDG 3 through our
business portfolio, especially through Siemens
Healthineers and the production technology we provide to pharmaceutical companies. In addition to the impact of our portfolio, we also care about the health
and safety of our people and contract workers. Separately from Siemens Healthineers, Siemens sets ambitious goals for access to Employee Assistance
Programs, and for reducing employee accident rates
(Lost Time Injury Frequency Rate – LTIFR). And we
participate in health-related community engagement
activities, such as cancer awareness campaigns and
mobile clinics.

Goal 4 – Ensure inclusive and equitable
quality education and promote lifelong
learning opportunities for all
Lifelong learning is a basic prerequisite if we are to
ensure employability for our people and in the job
market in general. We offer access to education in
multiple ways, including learning and education
opportunities for all our people, as well as vocational and more advanced training through partnerships
with schools and universities. Education for customers
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.

Goal 5 – Achieve gender equality and
empower all women and girls
We firmly believe that promoting diversity in the
workforce serves the interests of both society and
Siemens itself. Diversity reinforces our innovative
strength, unleashes employee potential, and directly
contributes to our business success. Through our
human resources management, we are also
supporting a transformation in top management,
where there is room for improvement. Here we are
recruiting more women for top managerial positions,
and including more women in networking activities,
trainings, and mentoring programs. Excluding
Siemens Healthineers, Siemens aims to have globally
30 % of its top management positions filled by women
by 2025.

Goal 7 – Ensure access to affordable,
reliable, sustainable, and modern energy
for all
Our business portfolio covers the entire spectrum of
applications for modern smart grids and energy
distribution systems. The rapid expansion of
decentralized energy structures powered by Siemens
technology creates a more diverse energy mix and
improves the security of energy supplies. The Internet
of Energy and data-based technologies foster energy
intelligence and lead the way toward a sustainable
energy landscape. Our technologies facilitate access
to clean, reliable, low-carbon energy.

1.4 Sustainable development of societies
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Goal 8 – Promote sustained, inclusive and
sustainable economic growth, full and
productive employment and decent work
for all
Siemens is committed globally to the New Normal
Working Model. Our aim amid this new normal is for
all our people around the world to be able to work on
a mobile basis two to three days a week, wherever
feasible and reasonable. Mobile working has many
advantages – for the individual, but also for the
company, for instance by ensuring that we are prepared to respond flexibly in future crises. Our worldwide business operations and our position as a thought leader mean that in many countries we
contribute toward the growth of gross domestic product (GDP). We are committed to offering attractive jobs and facilitating employment, and we are encouraging the uncoupling of economic growth from energy consumption.

Goal 9 – Build resilient infrastructure,
promote inclusive and sustainable
industrialization, and foster innovation
As a global technology company and innovation
leader in electrification, automation, and digitalization, Siemens supports sustainable industrialization. With
our engineering and our knowledge of numerous
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 enterprises (SMEs). We have officially adopted sustainability as an additional strategic imperative for our investment decisions.

Goal 11 – Make cities and human
settlements inclusive, safe, resilient, and
sustainable
Siemens is a trusted partner for municipal governments, offering solutions across all infrastructure domains to make cities more efficient, sustainable, and resilient – for instance, with intelligent transportation solutions, efficient and safe buildings, and smart-city initiatives leveraging the power of digitalization.

Goal 12 – Ensure sustainable consumption
and production patterns
Siemens is committed to using resources responsibly
and recognizes that the circular economy offers
highly beneficial opportunities for business, the
environment, and society. So by the end of this
decade we want to evolve even further toward the
circular economy, for example by increasing the
percentages of metals and plastics we procure as
secondary materials. We also aim to reduce our
amount of landfill waste. Siemens has worldwide
strategic initiatives for the design phase and end of
life-cycle for its products and operations, and is
committed to robust, ecologically friendly design.

We apply disruptive technologies and innovative
business models to make an active contribution to
the circular economy.

1.4 Sustainable development of societies
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Goal 13 – Take urgent action to combat
climate change and its impacts
Siemens was one of the world’s first industrial firms
to commit to making its own business activities carbon-neutral by 2030. By 2020 we had halved our own operations’ carbon footprint from the 2014 figure,
and thus met our intermediate target. The company
is now stepping up its existing activities for physical decarbonization all along the value chain. Siemens,
excluding Healthineers, has committed to reducing
emissions in its supply chain by 20 percent from the
2020 level by 2030, and is aiming to have a carbonneutral supply chain by 2050. Our targets have been chosen on the basis of the reduction track of the
Science Based Targets initiative. This ensures that our efforts are consistent with the levels aimed for by the Paris Climate Accords. Our technologies help customers in a vast range of industries to improve their energy efficiency permanently, with a positive business scenario, and to reduce CO2 emissions.

Goal 16 – Promote peaceful and inclusive
societies for sustainable development,
provide access to justice for all, and build
effective, accountable, and inclusive institutions 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
requirements of the United Nations Global Compact
(UNGC), the Human Rights Declaration, and all other
relevant regulations into our supply chain and to
promoting their principles through our work with
external organizations and institutions.

Goal 17 – Strengthen the means of
implementation and revitalize the Global
Partnership for Sustainable Development
As a global company and advocate of free trade, we
believe partnerships are key to sustainable
development and to our company’s success. In
addition, we recognize the importance of
digitalization, project financing, and public-private
partnerships for sustainable development. In all of
these areas, we are partnering with international
organizations, business organizations, think tanks,
nongovernmental organizations (NGOs), and
academia, including the UNGC, World Economic
Forum (WEF), econsense, Transparency International,
and numerous universities.

1.4 Sustainable development of societies
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Business to Society – measuring our
social impact
We measure our impact on sustainable development
with our Business to Society (B2S) methodology. This
approach is based on the Measuring Impact Framework published by the World Business Council for Sustainable Development (WBCSD) and allows us to
measure in quantitative terms the social impact of
our activities in six different action zones: advancing the economy, promoting skills and jobs, driving innovation, protecting the environment, improving quality of life, and shaping social change. Not only that, 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.

Customers and governments thus get useful
information, for example in the course of large
infrastructure projects. Employee feedback on social
media posts indicates that our contribution to
societies makes our people proud to work for Siemens.

Transparently contributing to society thus provides
tangible business value to Siemens. We will continue
to apply the methodology within customer projects
and bidding procedures. Both in-house and for the
general public, we will keep up communicating our
impact on sustainable development and the value it
brings for all stakeholders.

1.4 Sustainable development of societies
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Economic value:

Generated €281 billion of gross value added,1
€ 62.3 billion in revenue; operating in around
200 countries
Financing:

Siemens Financial Services – With more than
2,900 Siemens Financial Services experts,
Siemens Financial Services helps to enable
projects mainly in the area of infrastructure and
technology for approximately 285,000 customers
around the world through financing solutions
totaling € 30.4 billion
Global employment:

Siemens opened up possibilities for 5 million
jobs, 2.6 million of them in developing and
emerging economies; 303,000 2
Siemens
employees; around 34,400 2 new hires
Professional education and lifelong
learning:

Around 6,700 apprentices and students in dual
study programs worldwide, € 318 million
invested in vocational education and training,
€ 165 million of that in employee training. This
equated to an average of € 573 and 22 hours per
employee.

Attractive jobs:

More than 100,000 Siemens employees
excluding SHS took part in the Siemens employee
share program in 2021; as shareholders, they are
also co-owners. Personnel expenses for wages
and salaries: € 20.1 billion; pension contributions
of approximately € 4.0 billion 3

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
Research and development:
€ 4.9 billion spent on research and development
(R&D), 44,900 R&D employees, R&D intensity

7.8 %, 43,400 patents granted
Setting up innovation networks:

Siemens’ global venture unit, next47, provides
capital to help start-ups
Digital transformation:

Digital Industries – Digital solutions boost
cost-effectiveness and productivity among our
customers; for instance, simulation software
saves billions of miles of road testing in the
development of autonomous vehicles. Charter
of Trust – joint initiative between Siemens and
companies all over the world to create a more
secure digital world
University partnerships:

Siemens works closely with the research
excellence in international ecosystems
Strengthening the
economy
Building
skills
Driving
innovation
1 Fiscal 2019.
2 Including Varian.
3 Contributions to defined benefit plans, defined contribution plans, and state plans. Figures comprises the total of all continuing and discontinuing operations.

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

1.5 Our key areas of impact
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Decarbonizing society:
88 Mt greenhouse gas reduction through
Environmental Portfolio products in operation
by our customers
Efficiency in consumption:

Smart Infrastructure – Guaranteed reduction of
€ 4.0 billion (1995 – 2044) in utility costs for our
customers. To date, that guarantee has already
been surpassed by 20 %
Carbon footprint:
– 36 % Scope 1 and Scope 2 emissions since
FY 2019 according to our SBTI 1
-based reduction
path, 78 % of total energy consumption is green
electricity
Circular economy:
92 % of total waste is recycled or recovered;
With our digital marketplace “SiEasy”, we enable
idle equipment, machines, furniture and
materials to continue to be used within Siemens.

In this way, we extend the service life time of our
used equipment and avoid additional resource
extraction from nature
Health:

Siemens Healthineers – 174 million patient
touchpoints provide access to healthcare in
underserved countries; 64 AI-supported products
help improve clinical decision-making
Mobility:

Siemens Mobility – Providing mobility solutions
that enable safe, reliable, clean, affordable public
transportation to carry people sustainably, door
to door
Security:

Smart Infrastructure – Security solutions protect
people and materials, enhance operating
efficiency, safeguard business operations, and
ensure compliance
Occupational health and safety:

New corporate program “Healthy and Safe @
Siemens” launched; reduction of the LTIFR: Lost
Time Injury Frequency Rate for Siemens
employees and temporary workers by 8 %
compared to the previous year; acting quickly,
effectively and adapted to the respective local
situation during the COVID-19 pandemic in order
to ensure the health and safety of our people
Global commitment to the New Normal
Working Model 2
Supply chain management:

Clear commitment from around 63,000 suppliers
to the Siemens Group Code of Conduct for
Suppliers and Third Party Intermediaries,
394 external sustainability audits performed
Integrity:

Some U.S.$ 120 million in funding provided for
85 projects as part of the Siemens Integrity
Initiative to combat corruption and fraud in more
than 50 countries; around 72,000 employees
have already completed global online training
course in the Business Conduct Guidelines
Human rights:

Comprehensive due diligence process regarding
environmental and social risks implemented
Social responsibility:
€ 40.6 million in community investment
Siemens Stiftung:

The charitable foundation, established in 2008,
promotes with its international project work
access to basic services, high quality education
and an understanding of culture. With a network
of over 100 cooperation partners the foundation
develops solution approaches and programs with
a focus on technological and social innovations
Protecting the
environment
Improving quality
of life
Shaping a
changing society
SIEMENS SUSTAINABILITY REPORT 2021 27

1.5 Our key areas of impact
1 Science Based Target Initiative; base year 2019.
2 For employees with job profiles that make this
feasible and reasonable.

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1.6 Customers
– “Customer impact” guides our actions
– Key Account Management: A holistic approach
to the customer
– Regular measurement of customer satisfaction
Putting customers first has a long tradition at Siemens.

When it comes to technology, innovation, and
sustainability, our customers are always at the heart
of what we think and do: Everything begins with
them. 1
That’s why we’ve made customer benefit a strategic
priority. We listen so we can understand our customers’ needs as early as possible – best of all, even before
our customers themselves become aware of them.

Focus on customer impact
What do our customers want? How can we be sure to
help them stay relevant, even during phases when
markets are constantly shifting, and our customers
themselves are undergoing transformations?
Our approach must continuously adapt to a world of
ever-accelerating change:
→ Growth markets can be volatile.
→ Innovation and development cycles have
shortened drastically.
→ As barriers to market entry are lowered, nimble
new competitors are entering the scene.
→ Digitalization can be disruptive, but it also
offers new business opportunities.
→ On top of that, digitalization has ushered in
sweeping operational changes – including lean
management and agile software development,
to name just two examples.
→ Data-driven business models and technologybased services are booming.

As these changes advance, our customers’ needs are
also changing. So as a company, we must adjust as
well, and listen carefully to our customers so we can
provide them with the best possible help in adapting
to change.

Our customers are among our most important
stakeholders, along with our suppliers, partners,
investors, and our people. We engage in critical dialog and engage with them, answer their questions, and
encourage discussion. This helps us better understand
our stakeholders’ expectations and take the right
steps to strengthen our partnerships while
maintaining and enhancing trust.

We provide products, solutions, and services in almost
every country in the world. To meet our customers’
needs and the constantly changing demands of the
markets, Siemens draws on a global sales force that
takes its guidance from our regional companies. Key
success factors are a strong customer focus,
digitalization, and efficient and lean processes, as
well as collaboration with external partners.

Our regional teams can also call upon our global
network of partners, which includes consultants,
distributors, integrators, technical procurement
experts, construction companies, machine builders,
and more.
1 We call any current or potential purchaser of Siemens products or services, no matter what the sales channel, a “customer.” Some customers who are especially significant for Siemens are called Key Customers.

1.6 Customers
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Through our portfolio – which primarily covers
automation and digitalization in the process and
manufacturing industries, as well as intelligent
infrastructure for buildings and energy systems,
mobility solutions for rail and road transport, and
medical technology for the healthcare sector – we
have an impact on the fulfillment of numerous
sustainable development goals (SDGs).

We intend to help our customers refocus on
sustainable solutions and transform potential risks
into competitive advantages with our technology and
innovation. Siemens has a unique store of expertise
for managing this transition so as to make
sustainability into a growth engine, transform supply
chains, and protect our people.

New solutions for the digital world
The digital transformation is also changing all areas
of life: how we stay informed, how we travel, how
we shop – and how we manufacture products. And
it’s also changing business models.

The speed of innovation and the ability to disrupt are
becoming key success factors in global competition.

This increases the pressure in all industries – and at
the same time, it creates new business opportunities,
but is also characterized by an increasing complexity and uncertainty for our customers, suppliers, and partners.

Questions such as “How to create business value from
digital technologies?” or “Will new digital players attack my core business and with whom to partner?” play an
important role.

Increasingly complex solutions driven by digitalization, along with new and changing business models and
holistic strategies for sales ecosystems, require robust selling skills and a strongly value-oriented customer
approach.

To address these challenges, at Siemens we rely on a
mature and structured Key Account Management
approach.

Key Account Management is the company-wide
program that structures and drives systematic
business relationships with Key Customers. While all
our customers are served by the general Sales
organization, Key Customers are attended to also in
our Key Account Management approach.

As part of our ESG assessment, we’re preparing to
include a regular risk assessment of environmental
and social risks for our key accounts. Following a pilot run and full implementation, we’ll discuss this in more detail in our next report.

Siemens Vertical Markets
The main principle for successful Key Account
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).

1.6 Customers
SIEMENS SUSTAINABILITY REPORT 2021 29
Technology with a goal and purpose:

We help customers improve their
sustainable performance
Key Account Management:
a holistic approach to meeting
customer needs

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Such a holistic view makes it easier to develop suitable sales strategies that consider individual business factors, opportunities, vulnerabilities, and the entire ecosystem in the respective industries.

Siemens has therefore structured Key Account
Management according to vertical markets (Siemens
Vertical Markets/SVMs and Vertical Markets/VMs)
which, through company-wide cooperation, provide
our Key Customers with a comprehensive range of
products, solutions, and services across all business
areas. In the SVMs, several Siemens businesses work
together to serve each market on a cross-business
basis. In the VMs, markets are served by a single
Siemens business.

Thanks to harmonized processes, Key Account
Management helps us act as ONE company and serve
our customers in a global, sustainably coordinated
approach.

In the Vertical Market approach, Key Account
Managers operate as the interface between our Key
Customers and Siemens. They have a deep understanding of the challenges involved, so they can generate profitable growth with solutions that
successfully meet those challenges.

Our Key Account Management approach, which we
apply worldwide, enables our Sales and Key Account
Management representatives to adequately map and
address all relevant customer needs and r equirements.

1.6 Customers
SIEMENS SUSTAINABILITY REPORT 2021 30
Corporate
Accounts
Customers
Emerging Verticals
Other businesses
Core business 1
Core business 2
External partners
Siemens Vertical
Markets (SVM)
Vertical
Markets
(VM)
Sales
Key Account
Management
Siemens Vertical Market Management

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Systematically measuring and improving
customer satisfaction
What is more, we regularly measure customer
satisfaction – and, by extension, the quality of our
partnerships – using the Net Promoter Score (NPS).

The management compensation integrates long-term
performance bonuses based on ESG criteria and is
anchored in the DEGREE framework under Governance. The assessment is based on the Siemens internal ESG-/sustainability index, which comprises
the elements of customer satisfaction (Net Promoter
Score), CO2 reduction, and training hours.

SUSTAINABILITY GOVERNANCE AND ORGANIZATION
This systematic evaluation is based on comprehensive
annual customer satisfaction surveys. The score itself
is based on a single question: “How likely is it that you would recommend Siemens to a colleague or business partner?” The survey pursues a holistic approach to customer
relations that includes following up through the implementation of processes and systems designed to help foster long-term customer loyalty.1
Regardless of the score, we initiate a follow-up
process after the survey, both internally and externally.

When a score is low and considered critical, we take
immediate action to identify key issues and determine
what measures need to be taken to improve the
relationship.
1 In most cases, the survey questions focus on the business unit (BU) level. However, the overall score can be aggregated up to the business level and to the level of the entire company.

In response to areas with potential for improvement, the relevant business units and regional entities establish measures for improvement that are reviewed on a regular basis. By making these adjustments, we aim to improve our customer relations and make Siemens the partner of choice for all our customers.

Smooth service, support, and proximity to our customers have always been our top priorities, even during the
COVID-19 pandemic.

Siemens measures customer satisfaction annually. This
year’s continuing increase in the Net Promoter Score
motivates us even more to keep meeting our customers’
high expectations and demanding needs – especially in
today’s difficult environment.

1.6 Customers
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Our customers’ satisfaction is
our top priority

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1.7 Research and development
Our purpose is to provide innovations that improve
the quality of life and benefit people all over the
world, thus contributing to various SDGs and the
implementation of the portfolio-related action areas
Decarbonization and Resource Efficiency in our
DEGREE framework and verifying both the range
and the extensive benefits of our products and
applications.

Innovation strengthens Siemens and its
customers
Our research and development (R&D) activities are
geared toward developing innovative, sustainable
solutions for our customers and for Siemens
businesses and toward simultaneously safeguarding
our competitiveness. Our broad technology portfolio supports both public- and private-sector entities with innovative solutions and business models in the transition to a carbon-neutral future. We
focus on core technologies and innovation fields –
Company Core Technologies (CCT) – that play an
essential role in the success of Siemens and its
customers. The joint implementation of our CCTs
by the company’s operating units and unit Technology ensures that research activities and business strategies are carefully aligned and that all units
can profit equally and quickly from technological
developments. In fiscal 2021, the company focused
on the following CCTs:
– Innovation that benefits people everywhere
– Focus on core technology and innovation fields
– Collaboration with partners as enabler
→ Decentralized energy systems intelligently link
local energy production with consumers and
intermediate storage systems as the proportion
of electricity generated by renewable sources
grows. Predictive and optimization tools improve
grid flexibility, creating emission-free buildings
and smart charging infrastructures to provide a
future-oriented path to more stable, lower-priced
and carbon-free power supplies.
→ The availability of large, economical energy
storage systems is essential for the success of
the energy transition. Developed by Siemens,
these storage systems enable innovative forms
of transport such as battery- and hydrogenpowered trains and ships → Power electronics for inverters has always played
a major role in industry. As the amount of
electricity generated by renewable energy
sources grows, power grids will also depend on
advances in power electronics to facilitate stable
operation.
→ Future mobility systems will increasingly be
electrified and interconnected. Therefore, we
are working to develop a national charging
infrastructure for cars and trucks, fleet
management systems, and the digitally
supported integration and management of
multimodal transportation systems.
→ Blockchain technology enables transactions
between equal partners to be documented in a
tamper-proof and transparent manner in order
to allow peer-to-peer energy trading and ensure
a transparent carbon footprint in multi-company
supply chains.

1.7 Research and development
SIEMENS SUSTAINABILITY REPORT 2021 32

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→ Generators, switchgear, and other equipment
will profit from innovative materials that can, for
example, boost the efficiency of power
generation and enable the lightweight design
of railway vehicles.
→ Additive manufacturing processes facilitate the
flexible production of components that have
completely new topologies and are important
innovation drivers. Siemens, which benefits as
a user of this technology, is also involved in
developing a digital tool chain that will support
the design and subsequent printing of
components – “error-free and from one cast.”
→ We are shaping the future of automation. Our
goal is to cut engineering expenses, increase
flexibility – through the integration of
autonomous manufacturing machines, for
instance – and improve our customers’
productivity, while reducing energy consumption. Advanced robotics plays a key role here, particularly in the area of manufacturing.
→ The Industrial Internet of Things (IIoT) is the
result of the increasing networking of field
devices. The IIoT enables field devices to be
equipped with additional software-based
functions during ongoing operations and makes
it possible for the data produced by these
devices to be evaluated in the field or in the
cloud. It facilitates the development of new
operating and business models in areas such as
predictive remote maintenance and optimized
energy use. Our MindSphere solution offers an
open, cloud-based operating system for the IIoT.
→ Industrial facilities and infrastructures are
generating ever-growing amounts of data. With
the help of machine-based data analysis and
artificial intelligence (AI), we help plant
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
state-of-the-art diagnostic procedures are
generating larger and larger volumes of data.

Here, AI enables improved decision-making
thanks to data analysis, thus increasing our
customers’ productivity.
→ In the area of medical technology, sensor
systems and robotics represent two further focal
points for research, on the basis of which
increasingly complex applications can be
automated. These technologies enable complex
medical systems to function even in remote
areas and less-developed regions, while
simultaneously improving the systems’
efficiency. They also bring healthcare closer to
people, make high-quality healthcare available
everywhere and reduce both the frequency and
cost of medical complications.
→ Digital twins involve the modeling and
simulation of systems and processes, including
the development and manufacturing of products.

Digital twins make it easier to accelerate the
commissioning of manufacturing plants,
improve time to market and optimize the
operation of infrastructures throughout their
life-cycles.
→ Industrial cybersecurity is a key technology for
digitalization. The security of industrial facilities
and the protection of data and intellectual
property are important requirements not only
for customers, but also for governments and
societies, which demand that these requirements
are to be fulfilled.
→ Complex, highly distributed industrial software
systems that integrate the software of different
providers can be developed only by using new
methods and processes in software system
development.

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After four years, the CCT portfolio was revised on
October 1, 2021, in order to better support the new
Siemens strategy and accommodate changed market
demands, while continuing to contribute to the
success of Siemens and it customers through the
provision of Technology with Purpose. These changes
include among others the expansion and renaming
of the CCT Decentralized Energy Systems to
“Sustainable Energy & Infrastructure.”
This CCT will now include R&D activities in the areas
of life-cycle optimization (design tools, digital twins, algorithm optimization) and decarbonization (tools
for the sustainability transformation and the green
factory, carbon footprint transparency and optimization). The newly created CCT “Integrated Circuits & Electronics” bundles R&D activities in fields such as
optimized design and resource-efficient manufacturing, 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
Software Systems &
Processes
Additive Manufacturing &
Materials
Data Analytics &
AI
Automation
Power Electronics
Simulation &
Digital Twins
Sustainable Energy &
Infrastructure
Integrated Circuits &
Electronics
Connectivity &
Edge
Cybersecurity
& Trust
User Experience

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Continued high investment in R&D 1
In fiscal 2021, we reported R&D expenditure of
€4.9 billion, compared to €4.6 billion in fiscal 2020.

The resulting R&D intensity, defined as the ratio of
R&D expenditure to revenue, was 7.8 %, compared
to 8.3 % in fiscal 2020. Additions to capitalized development expenses amounted to €0.3 billion, compared to €0.4 billion in the previous year. As of September 30, 2021, Siemens held approximately
43,400 granted patents worldwide in its continuing
operations and had an average of 42,500 R&D employees, compared to 40,900 patents and 40,800 R&D employees in fiscal 2020.

We are further developing technologies on the basis
of our open innovation concept. In 2021, an external
platform was added to the originally in-house platform of the Siemens Innovation Ecosystem (SIE). This platform enables many in-house and external teams
to work together with partners, customers, suppliers,
universities, and other experts in a global network of
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 application. The SIE is currently used by more than 30,000 registered users.

We are also working closely with scientists from
leading universities and research institutions, not
only under bilateral research cooperation agreements,
but also in publicly funded collective research projects.

Our focus here is on our strategic research partners,
especially the eight Centers of Knowledge Interchange
(CKIs) we maintain at leading universities worldwide.

With the Siemens Research and Innovation Ecosystem
(RIE), newly launched on 1 October, 2021, Siemens
wants to address the challenges of today with technologies of the future in a collaborative manner.

Aligned with the Siemens technology portfolio, we
work closely with the research excellence in these
dedicated ecosystems and focus on broader regional
opportunities.

Siemens’ global venture unit, Next47, provides capital
to help start-ups expand and scale. It serves as the
creator of next-generation business for Siemens by
building up, acquiring, or partnering with start-ups at any stage in their development. Next47 focuses on
anticipating how technologies will impact our markets.

This knowledge is enabling Siemens and Siemens’ customers to grow and thrive in the age of digitalization.

ANNUAL FINANCIAL REPORT 2021 COMBINED MANAGEMENT
REPORT 4.3 RESEARCH AND DEVELOPMENT
1 FY 2021 figures inclusive Varian.

1.7 Research and development
SIEMENS SUSTAINABILITY REPORT 2021 35
€ 4.9 billion
R&D expenditure FY 2021

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Our sustainability
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SIEMENS SUSTAINABILITY REPORT 2021 36

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Key topics as guiding principles
Our materiality assessment is based on external
frameworks such as the UN Global Compact and the
Standards of the Global Reporting Initiative (GRI),
which form the basis for our reporting. The key topics
in our report are structured on the basis of ESG issues (ESG = Environment, Social, Governance). Moreover,
the ongoing dialog with external and internal
stakeholders plays a key role in the materiality process.

These stakeholders particularly include investors,
customers, suppliers, our people, communities,
policymakers, media, nongovernmental organizations,
business associations, and academic institutions.

Updating of the materiality assessment
We updated our materiality assessment with an
emphasis on Smart Infrastructure, Digital Industries,
and Mobility in fiscal 2021. The resulting topics
largely match the material topics of Siemens
Healthineers, which were determined as part of an
independent materiality assessment. The goal was to
identify the key economic, ecological, and social
topics for Siemens in accordance with the GRI
Standards. To this end, we consulted relevant
stakeholders and viewed the impact from an insideout perspective. We also considered the outside-in impact (double materiality). With the aid of the
materiality assessment, we were able to prioritize the
relevant sustainability topics, which were discussed
with and confirmed by our Siemens Sustainability
Board. The material topics form the framework for the
implementation and accelerated advancement of
sustainability within the company – at the central
corporate level, in our business units, and in the
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
prerequisite for process management in order to
identify and manage potential opportunities and risks.

The Siemens business units derive their key action
areas from the DEGREE framework with due regard
to the requirements and basic conditions of their local markets.

Identification and prioritization of topics
Material topics are selected on a step-by-step basis.

The list of potentially relevant sustainability topics
(approx. 100) was based on extensive research of
ratings, rankings, and peers. The subsequent shortlisting was conducted in workshops. Afterward, three perspectives were evaluated in expert workshops and
in interviews with internal and external stakeholders.
→ Stakeholder perspective:

This perspective refers to sustainability topics that
are deemed to be material by external stakeholders
such as customers, investors, suppliers,
government officials, and NGOs, as well as internal
stakeholders (stakeholder relevance). The
most material topics from the perspective of our
stakeholders are sustainable product design and
life-cycle management and climate protection,
and therefore also social and ecological standards
– Materiality assessment updated on the basis
of external frameworks and dialog with
stakeholders
– Material sustainability topics identified and
grouped with an emphasis on shared values
and responsibility
– Material sustainability topics applied as
guiding principles for the DEGREE framework

2.1 Materiality assessment

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in the supply chain, as well as corporate governance
and sustainability leadership.
→ Inside-out perspective:

This perspective refers to sustainability topics that
can be positively or negatively influenced by the
company’s business activities, business
relationships, and products and services
(sustainability relevance). The most material
topics in which Siemens can exert the greatest
influence on society and the environment are
social and ecological standards in the supply chain,
climate protection, and sustainable product design
and lifecycle management.
→ Outside-in perspective:

This perspective refers to sustainability topics that
can be associated with opportunities and risks of
the company’s business activities or financial
situation (business criticality). The most
material sustainability topics from the perspective
of the influence on our business activities and the
generation of lasting value are climate protection,
sustainable product design and life-cycle
management, and social and ecological standards
in the supply chain.

As the result of our materiality assessment, we have
identified 15 material sustainability topics of greatest relevance to our stakeholder groups and of greatest
importance for their sustainability impact and impact
on Siemens. We plan to conduct the materiality
assessment at least every five years.

Shared-value and responsibility topics
The material sustainability topics were then grouped
in accordance with the shared-value and responsibility
approach.

Shared values are associated with social progress
and business value. Companies need to make a
positive contribution to society in order to maintain
their “social license to operate.” Shared-value topics
are those for which we want to create added value
through our activities, products, and services; our role as thought leaders; and our corporate citizenship
activities; and by meeting key systemic challenges to
the benefit of society. At the same time, we strive to
seize business opportunities for Siemens.

Responsibility refers to material topics for which we
bear the responsibility to prevent material negative
impacts on people, society, or the environment in our
business activities. Such impacts could also present
a potential financial or reputation risk for our business activities.

Our material sustainability topics are clearly linked to the Sustainability Development Goals (SDGs), our
four strategic priorities and our DEGREE framework.

STRATEGY
The linkage of the material sustainability topics to the GRI can be found here: ANNEX GRI INDEX

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Social and ecological standards in
the supply chain1 G OVERNANCE
Cybersecurity and data management2 E THICS
Employee health and safety2 E MPLOYABILITY
Diversity, equity & inclusion2 E QUITY
Customer safety and product quality2 G OVERNANCE
Corporate governance and
sustainability leadership2 G OVERNANCE
ESG risk management2 G OVERNANCE

E THICS
Compliance management2 G OVERNANCE

E THICS
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 Shared Values Responsibility Sustainability topics SDGs
Strategic
priorities DEGREE
Climate protection1 D ECARBONIZATION
Sustainable product design and
life-cycle management1

R ESOURCE EFFICIENCY
Innovation and business model2 D ECARBONIZATION

R ESOURCE EFFICIENCY
Partner management and collaboration 2 D ECARBONIZATION

G OVERNANCE
Responsible governance 2 G OVERNANCE
Future of work2 E QUITY

E MPLOYABILITY
Sustainable handling of natural resources
and material efficiency2

R ESOURCE EFFICIENCY

TECHNOLOGY WITH PURPOSE

STRENGTHENING AND EMPOWERING PEOPLE

CUSTOMER VALUE

GROWTH MINDSET
1 Top 3 material sustainability topics.
2 12 additional material sustainability topics.

Result of the assessment of organizational impacts (inside-out, i.e., on the environment and society), stakeholder relevance and business criticality (outside-in) Dimension DEFINITION OF THE MATERIAL TOPICS – BUNDLED ACCORDING TO SHARED

VALUE AND RESPONSIBILITY

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Sustainability management is a company-wide effort
that derives from our corporate purpose. It is at the
heart of everything we do. Sustainability is firmly
rooted within our organization and has been an
integral component of management compensation
since fiscal 2020.

Foundation: corporate governance
The cornerstone for sustainability-based corporate
management is compliance with recognized
principles of corporate governance. Siemens AG is
governed by German corporate law, under which it
has a two-tier board structure consisting of a
Managing Board and a Supervisory Board. As the top
management body, the Managing Board is obligated
to serve the company’s best interests and achieve
sustainable growth in company value. The members
of the Managing Board are jointly responsible for the
entire management of the company and decide on
basic issues of business policy and corporate strategy, as well as single-year and multiyear planning. The
Supervisory Board oversees and advises the Managing
Board in its management of the company’s business.

At regular intervals, the Supervisory Board discusses
business development, planning, strategy, and the
implementation of that strategy.

More detailed information on the structure and responsibilities of the Managing Board and Supervisory Board can be found in management’s Corporate
Governance Statement in our ANNUAL REPORT.

Clear organizational structure and
responsibilities
All strategic sustainability activities are overseen by our Chief Sustainability Officer (CSO). The CSO is a
member of the Siemens Managing Board and chairs
the Siemens Sustainability Board (SSB), which consists
of representatives of the businesses, countries, and
units with governance responsibilities (technical and
professional functions).

The SSB is the central steering committee for the
strategic development of sustainability at Siemens,
and makes decisions regarding key sustainability
matters. Where necessary, the Managing Board
addresses sustainability-related risks and
opportunities of strategic and company-wide
importance, and adopts appropriate measures. For
example, it was the Managing Board that adopted the
DEGREE sustainability framework in fiscal 2021. The
SSB motivates and supports the organization in taking
sustainability aspects into account when making
business decisions. At quarterly meetings, the SSB
discusses and hones its focus on strategic sustainability topics, such as CO2 reduction, the framework for ESG
and human rights risks, and nonfinancial reporting,
as well as rankings and ratings. The board adopts
relevant sustainability measures and initiatives or
submits recommendations for action to the Managing
Board. During fiscal 2021, the SSB decided on matters
such as the SBTi commitment, putting the DEGREE
sustainability framework into operation, and a
materiality analysis to serve as the basis for the
further pursuit of sustainability.
– The Sustainability Board is the central steering committee for the ongoing strategic development of sustainability
– Business and country CEOs are responsible
for implementing sustainability policies
– ESG criteria are included in the compensation system for members of the Managing Board and senior managers

2.2 Sustainability governance
and organization

2.2 Sustainability governance and organization
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The Siemens Sustainability Director heads the
Sustainability Department and supports the CSO in
performing his or her duties. In this capacity, the
Sustainability Director reports to the CSO and is a
member of the SSB. The Sustainability Department
monitors trends in sustainability, analyzes the
potential impact on Siemens, prepares decisions for
initiatives and pilot projects, provides support with
their implementation, and promotes efforts by the
SSB to anchor new sustainability topics within the
company.

The CEOs of businesses and countries are responsible
for implementing sustainability within the Group.

This responsibility includes taking sustainability
aspects strategically into account all along the value
chain within their organizations’ business activities.

In all their decisions, strategies, processes, and
systems, they must also take account of business
opportunities and business risks that relate to
sustainability. They also set the targets for strategic sustainability activities in their sphere of responsibility.

In their implementation work, the CEOs of the various
businesses and countries are supported by
Sustainability Managers, whom they appoint. These
Sustainability Managers maintain close contact with
their colleagues and the Sustainability Department.

They also organize a network of sustainability experts
with the aim of ensuring that all sustainability
measures and initiatives are implemented within the
units. All units with governance functions are
additionally responsible for the company-wide
implementation of sustainability aspects within their
spheres of responsibility. They analyze new
sustainability requirements specific to their markets
Overview of roles and responsibilities
Supervisory Board
Managing Board
Units with
governance
Functional
governance
Businesses
Countries
Sustainability
implementation
Sustainability Board
Members:
› Businesses
› Countries
› Units with governance
Chair: CSO
Sustainability Department
Sustainability
governance
CEOs in businesses and lead countries are responsible for anchoring sustainability in their organizations

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and customers, and are in charge of implementing
guidelines, management systems, and strategic
programs, as well as long-term targets and KPIs. They
report on their activities in the Siemens Sustainability Report.

Sustainability reflected in management
compensation
In fiscal 2019, the compensation system for members
of the Managing Board was reviewed in depth and
revised further; it was then endorsed by a large majority at the Annual Shareholders’ Meeting in February 2020. As part of the refinement of the system, a focus
was established for sustainability aspects. As part of
the long-term variable component of compensation
(Siemens Stock Awards), alongside a comparison of
total shareholder return (TSR) against an international index (the MSCI World Industrials Index), a second
performance criterion was introduced, in the form of
an internal ESG/Sustainability index, weighted at 20 %, with three equally weighted indicators.

The ESG indicators reflect relevant strategic and sociopolitical topics. For the Stock Awards Tranche 2021, which was awarded in November 2020, these indicators are reduction of CO2 emissions, digital learning hours per employee, and the Net Promoter Score (NPS)
for measuring customer satisfaction. As well as for the members of the Managing Board, these criteria are
applicable analogously for all senior managers globally who are eligible for Stock Awards.

Additional sustainability matters, including succession planning, sustainability/diversity, and employee
satisfaction, are also defined as individual targets for shortterm variable compensation (bonuses).

To link compensation more firmly to long-term growth
and performance of the company, the level of the longterm variable component of compensation was raised; it now ranges from a minimum of 30 % to a maximum
of 42 % of target total compensation. COMPENSATION
REPORT 2021
Amount of greenhouse gases
emitted by the company’s
business operations in tons of CO2
equivalent, excluding carbon offsets (for example, certificates).

The total number of digital learning
hours completed in virtual trainerled training sessions, self-paced learning, learning on the job,
community-based virtual learning,
and hybrid training sessions
divided by the total number of
employees.

Customer intention to recommend us, measured on a scale of 1 (extremely unlikely) to 10 (extremely likely). NPS is defined as the number of promoters (%) minus
the number of detractors (%).

CO2 Emissions
Digital learning hours
per employee Net Promoter Score (NPS)

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As a company that operates globally, we partner in a
variety of ways with a very diverse set of players. Our efforts here are in line with SDG 17, which calls for a revitalized, strengthened global partnership that
brings together governments, civil society, the private sector, the United Nations, and other entities.

Only by collaborating closely with stakeholder groups
can we make serious progress on complex and
intertwined sustainability challenges such as
environmental concerns. We maintain a constant
dialog for that purpose with investors, customers,
suppliers, our people, communities, policymakers,
media, nongovernmental organizations, business
organizations, and academia. Our management and
the relevant specific units with governance functions
are in charge of this task. For example, overall
responsibility for dialog with policymakers lies with
the Managing Board of Siemens AG. Within the
various business units, the unit’s CEO is responsible
for coordinated dialog. The Managing Board has
tasked the Government Affairs Department with
performing the necessary coordination duties and
has given it the powers it needs for the purpose.

This engagement with our stakeholder groups creates
value on all sides of the equation through exchanges
of knowledge and information, as well as through
creative partnerships. It helps us improve business
conditions and reduce both external and internal risks.

Our new DEGREE sustainability framework is also
founded on dialog with our customers, investors,
suppliers, and our people, and with society at large,
and on acknowledging the impact our business has
on the planet. This new framework thus represents a
360-degree stakeholder approach.

In dialog with politics and society
As a global company, we work with our customers to
find innovative solutions to some of the most pressing
issues facing the planet. For that reason, dialog with
policymakers is intrinsic to our social responsibility, and is of tremendous importance to our success as a
company. We base the priorities of our political activities on our business strategies and innovation fields.

Our advocacy activities focus on the following topics
and policy areas, among others: cybersecurity,
digitalization (including Internet of Things / IoT and
artificial intelligence, or AI), decarbonization and
climate change action, energy, R&D, and trade
policy, as well as connected and automated
mobility for rail and road. We have joined forces
with leading companies from around the world to
establish the Charter of Trust, which aims to make
the digital world safer and more secure
( HTTPS://WWW.CHARTEROFTRUST.COM/).

Furthermore, we support the goal of achieving a
carbon-neutral Europe by 2050 – announced as part
of the European Green Deal – through a variety of
commitments, including our active memberships in
the European Alliance to Save Energy ( HTTPS://EUASE.

NET/) and the EUROPEAN GREEN DIGITAL COALITION.

As part of the European Green Deal, “fit for 55” is an
important – and tangible – step toward the goal of
reducing carbon emissions by 55 % until 2030 and
– Close networking and cooperation with our
stakeholders
– Partnerships are key to sustainable development and business success – Siemens is an active member of numerous
business associations and organizations

2.3 Partnerships and collaborations
for sustainability

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achieving complete climate neutrality by 2050. The
proposed measures establish conditions under which
companies can now make long-term plans. A fair and
reasonable carbon price will accelerate the embrace
of low-carbon technologies, and should thus extend
to as many sectors as possible so as to encourage the
transition to a carbon-neutral economy. Siemens will
continue to do its part here – because we have the
necessary technologies and knowledge to reduce CO2
emissions and energy consumption, and to conserve
resources.

Our political involvement is guided by firm principles.

We are politically neutral and take a zero-tolerance
approach to corruption, violations of fair competition
principles, and other breaches of applicable law and
internal regulations. Siemens does not make political
donations and contributions (donations to politicians,
political parties, or political organizations). All
contributions that support purely political purposes
or the representation of political interests, such as
election events for political campaigns, are prohibited by our internal guidelines.

Engagement in associations and
organizations
In addition, Siemens is a member of numerous
business associations and similar organizations, some
of which advocate for their members’ interests in the
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: HTTPS://NEW.SIEMENS.COM/GLOBAL/
EN/COMPANY/ABOUT/CORPORATE-FUNCTIONS/GOVERNMENTAFFAIRS.HTML We also work closely with the Organization for
Economic Cooperation and Development (OECD), the
United Nations, the European Union, and the World
Economic Forum (WEF). We are involved in various
initiatives of the WEF, such as the Partnering Against
Corruption Initiative (PACI).

We cooperate as well with the United Nations, for
instance as part of our commitment to the Ten
Principles of the United Nations Global Compact
(UNGC). When it comes to environmental issues, we
support the United Nations Framework Convention
on Climate Change (UNFCCC) and the UN climate
conferences, plus we are actively involved in the CEO
Water Mandate. Furthermore, we have joined the
World Bank’s Carbon Pricing Leadership Coalition
(CPLC), and we advocate for the global introduction
of carbon pricing. We are additionally committed to
the UNGC Women’s Empowerment Principles and
have signed the Diversity Charter, an initiative by the German government.

For years, we have supported One Young World
(OYW), a nonprofit organization that champions
young business leaders around the globe in order to
build a better world with more responsible, more
effective leadership. At the 2021 OYW Summit in
Munich, we celebrated ten years of our CEOs’ involvement with the organization.

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Our commitment to sustainability is widely recognized
in a variety of significant ratings and rankings. This
recognition corroborates the wisdom of our
sustainability strategy, and at the same time it also
provides us with a yardstick for continuous
improvement.

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:
– Our engagement is recognized in a number
of ratings and rankings
– This helps continuously improve our sustainability performance – It also strengthens the Siemens brand and
enhances the satisfaction of our people

2.4 Sustainability ratings
reflect our performance

1. Markets and customers increasingly want
information about ratings and rankings, and
they’ve begun requiring these assessments as
part of their contract terms.

2. More and more investors are developing their
own ratings and rankings to assess companies’
sustainability performance.

3. We want to be able to benchmark ourselves
against peers and competitors so we can
introduce the right steps for improvement and
detect important trends in sustainability.

4. Strong performances in relevant, acknowledged
ratings strengthen the Siemens brand and
enhance the satisfaction of our people.

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Siemens’ sustainability performance has received recognition in external ratings and rankings 1 High risk exposure is in line with the industry average.

Cybersecurity
program
Innovation
management
Customer relationship
management
Green products and
service/ ecodesign
Compliance
management system
Environmental
management system
Rating highlights
Constant leader for
five years (AAA / AA)
AA
#1 in our industry, more
than 20 years
in the World
Index (top 10 %)
81 points
Part of the
FTSE4Good Index family
Prime status in
ESG Corporate
Ratings since 2016
PRIME
5th in our industry
with strong management of ESG risks1
Silver recognition level and
as such within the leading
companies in our industry
(top 25 %)

28.4 points
61 points
Constituent of the
VigeoEiris EUROZONE
120 index since 2020
Over 10 years at
leadership level
(A ⁄ A-) in Climate
Change
A–
57 points

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Governance
Responsible Business
Practice
SIEMENS SUSTAINABILITY REPORT 2021 47
Our key ambitions:
→ Striving to train 100% of our people on Siemens’
Business Conduct Guidelines every three years
Additional topics:
→ Zero-tolerance approach to breaches of
applicable laws and our own internal
guidelines
→ A global, risk-based compliance system
→ Aiming for a leading role in cybersecurity
Our key ambitions:
→ ESG-secured supply chain based on supplier
commitment to the Supplier Code of Conduct
→ Long-term incentives based on ESG criteria1
Additional topics:
→ Focus on human rights: climate protection,
occupational safety, and responsible
sourcing of minerals
→ Digital ESG Risk Due Diligence Tool
(ESG Radar)
Ethics
Foster a culture of trust, adhere to ethical
standards, and handle data with care
Governance
Apply state-of-the-art systems for effective and
responsible business conduct
1 Assessment based on Siemens-internal ESG-/sustainability Index, based on customer satisfaction (Net Promoter Score), CO2 reduction, training hours.

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Siemens takes a zero-tolerance approach to corruption
and other breaches of applicable laws and of the
values laid down in our Business Conduct Guidelines
(BCGs). If violations do occur, we respond consistently and vigorously following defined procedures. But
compliance means more than just complying with
laws and internal regulations: It’s the foundation of
all our decisions and activities, and the key to integrity in business conduct. Our premise is this: Only clean
business is Siemens business. This applies worldwide
and at all levels of the organization. At Siemens,
standing up for integrity means that everywhere we
do business, we act in accordance with our values:
responsible – excellent – innovative. And we’ve also
anchored that approach in our new DEGREE framework
under “E” for “Ethics.” STRATEGY AT A GLANCE
Our compliance organization contributes in particular
to the achievement of the UN’s Sustainable
Development Goal (SDG) 16, “Peace, Justice and
Strong Institutions.” That goal includes a call for
companies to dramatically reduce corruption and
bribery in all their forms.

Worldwide commitment to
fighting corruption
Beyond our company’s borders – and in collaboration
with other international and national organizations –
we’re committed – including as part of our Collective
Action activities – to fighting corruption and
promoting fair competition in our markets SEE ALSO
THE SECTION ON “COLLECTIVE ACTION” BELOW. Part of that
engagement is our commitment to the United
Nations Global Compact (UNGC) and our involvement
in the World Economic Forum and its Partnering
Against Corruption Initiative (PACI). In addition, we
actively support the United Nations Convention
against Corruption and the Anti-Bribery Convention
of the Organisation for Economic Cooperation and
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 companywide work in this domain and are also enshrined in our code of conduct: the Siemens BCGs that provide
direction for all our activities. BUSINESS CONDUCT

GUIDELINES
– Zero-tolerance approach to breaches of applicable laws and our own internal guidelines – A global, risk-based compliance system
– All our business activities are guided by our
values: “responsible – excellent – innovative”

3.1 Compliance
Zero-tolerance approach to
breaches of applicable law and our
Business Conduct Guidelines

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Siemens and its roughly 303,000 employees operate
in many different countries throughout the world
with customers in both the private and public sectors
that serve a vast array of industrial sectors. Our global business operations are governed by numerous
national legal systems and a variety of political, social, and cultural settings, which are constantly changing.

Accordingly, the environment where Siemens
conducts its business, and thereby carries out its
compliance activities, is correspondingly complex.

The Siemens compliance system
Our BCGs contain the fundamental principles and
rules for our conduct, both within Siemens and in our
relationships with our customers, external partners,
and the general public. They also serve as an
expression of our values and lay the basis for detailed internal regulations. The BCGs are binding for all
Siemens employees around the world.

BUSINESS CONDUCT GUIDELINES
Our compliance system is designed to ensure that our
business practices worldwide comply with these
guidelines and follow applicable laws. To attain that
goal, the system is based on three pillars – prevent,
detect, and respond – and covers the activity fields
anti-corruption, anti-money laundering, antitrust,
Collective Action, data privacy, export control, and
human rights. HUMAN RIGHTS and DATA PRIVACY
Anti-Corruption Antitrust Data Privacy Human Rights
Anti-Money Laundering Collective Action Export Control
Prevent
Respond
Detect
Management
responsibility
Activity fields
Siemens compliance system

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Preventive measures include compliance risk
management, preparing of topic-specific guidelines
and procedures, incorporating compliance
requirements into our business processes, and
providing comprehensive training and advice for our
people. Channels for reporting compliance violations –
such as the “Tell Us” whistleblower system and the
Ombudsperson as well as professional and fair
investigations – are indispensable for recognizing and
completely resolving matters of misconduct.

Unambiguous responses and clear consequences
serve to punish misconduct and eliminate weaknesses.

To ensure that our compliance system is put into
action and meets our requirements, our internal audit
department continuously performs compliance
controls and audits.

One of the key components of this compliance system
is our managers’ responsibility. That is why the global Legal and Compliance department is directly assigned
to the Chairman of the Managing Board as a
governance function. Our Chief Compliance Officer
delivers quarterly reports directly to the Managing
Board and Supervisory Board of Siemens AG.

The global compliance structure combines strong
Group-level governance with the work of qualified
compliance officers who ensure that the compliance
system is implemented worldwide. They work closely
with employees and managers, who assume personal
responsibility for compliance within their respective
business units.

The entire management team has to act on our
commitment to compliance and ensure that all
business decisions and transactions that fall within
their area of responsibility comply with both the
relevant legal requirements and our own values and
company guidelines. Siemens managers demonstrate
a strong commitment to compliance. Compliance and
integrity are therefore deeply anchored in our
corporate culture.

To obtain feedback directly from Siemens employees,
regular survey questions are conducted on the topic
of integrity within the Siemens Global Employee
Survey (SGES). The surveys are held annually on
selected integrity topics. The results from this fiscal year show a continuous positive trend in the entire
organization’s perception and awareness of integrity
and responsible business conduct. The next survey is
scheduled for fiscal 2022.

Compliance risk management
To be effective, the Siemens compliance system
needs to be continuously adjusted in order to meet
business-specific risks and multiple local legal
requirements. The findings from compliance risk
management, as well as compliance controls and
audits, serve as a basis for deriving measures to
further develop the compliance system.

The goal of compliance risk management is to detect
compliance risks at an early stage and take appropriate steps to prevent or mitigate risks. Risk assessment is
also integrated into individual business processes and
tools that evaluate risks in any given business
decisions and take appropriate risk mitigation steps.

Thus, compliance can make an important contribution
to achieving our corporate goals.

Compliance risk management is an integral part of
the company-wide Siemens Enterprise Risk
Management (ERM) program ANNUAL REPORT 2021

8.3.1 CHAPTER RISK, which creates a holistic view of all identified risks throughout the Group. Each entity and
each region assess its business risks in relation to
compliance risks. Current developments are
systematically also evaluated.

In close collaboration with the relevant businesses,
the early identification and assessment of the
compliance risks involved in new digital business
models are a core part of our risk management process.

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Additional information from internal data sources is
included in order to provide a holistic overview of
compliance risks. Cross-functional exchange at
regular meetings and an annual Corporate Compliance
Risk Workshop also makes it possible to identify and
monitor emerging or changing risks. The results of
the risk assessment are therefore a key starting point
for the ongoing development of our compliance system.

Compliance priorities in fiscal 2021
Our compliance priorities are the foundation for the
continuous development and improvement of our
system. We keep a close watch on the ever-evolving
requirements in the compliance environment and
strive to fulfill them. Among the challenges in this
regard are changes in market conditions and in the
compliance risks of our business activities.

In fiscal 2021, we’ve also defined our long-term
compliance priorities. The priorities are constantly
evolving, so we can work from a reliable, long-term
perspective when developing our compliance efforts.

These priorities are supplemented by focus areas and
specific activities for each fiscal year, and they
continued to guide our work in fiscal 2021. Every
compliance employee is actively encouraged and
committed to the fulfillment of our priorities.

Compliance training
To ensure that compliance and integrity are deeply
anchored in the organization, both Siemens
employees and the Compliance department receive
targeted, group-oriented, risk-based training on
compliance topics.

Excellent compliance team
Provide an excellent compliance
team through a first-class learning
and development landscape and
close collaboration.

Committed to business
Further intensify cooperation
between the compliance organization and our businesses and reinforce our compliance system’s
market and customer focus.

Foster integrity
Support business management to meet its
responsibilities for compliance and further
strengthen the culture of integrity in our
company and beyond.

Manage risk and assurance
Continue providing our businesses with
the appropriate level of assurance within
our compliance system.

Effective processes
Continue to further optimize
and streamline our compliance
processes.

Compliance priorities
Foster
integrity
Manage risk
and assurance
processes
Effectiv
c
e
ompliance team
Excellent
Com
mitted
to business
Culture of
ownership
Compliance priorities

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295
Compliance training for the Siemens organization
emphasizes three core aims:

1. To impart values and raise awareness of fundamental compliance issues among all employees

2. To convey in-depth specialized knowledge to
managers and specific target groups

3. To provide additional materials on all relevant
compliance topics
Employees learn about the compliance activity fields
through programs such as mandatory web-based
trainings on the contents of our BCGs. In addition to
the mandatory training courses, there are also
additional training materials that can be used for
specific target groups; these are available on the
global learning platform. Because of the global
coronavirus pandemic (COVID-19), many of the
classroom training sessions were converted to
virtual formats in fiscal 2021 in order to maintain
training continuity.

The BCG training was rolled out to around
77,000 employees worldwide, and 72,000 of them
(approximately 93 %) successfully completed the
training by the end of fiscal 2021. 1
In addition, Siemens employees around the world
completed about 374,000 training programs for
specific target groups in fiscal 2021. 1
New target for BCG training
As part of the new DEGREE framework, Siemens has
expanded the existing training target to include the
group of employees without online access. In the
future, we plan to train all employees on the BCGs in
campaign cycles that run for three years each (without
SHS). The current cycle covers the fiscal years from
2020 to 2022.

Within the current cycle, we have trained 76 % of our
employees worldwide on the BCGs.

Starting fiscal 2022, we are planning to provide
in-person training for employees who until now
couldn’t be included in Siemens’ internal IT system
for training. Annual face-to-face training sessions will be held at every production site worldwide. We aim
to ensure that every employee receives training
during the campaign’s recurring three-year cycle, in
keeping with the new DEGREE target. No in-person
sessions were held during the past two fiscal years
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
our production facilities, fiscal 2022 remains for the
target achievement. 2 In fiscal 2023, a new three-year
cycle will begin and will comprise annual trainings
both in person and online.

Moreover, integrity dialogs are conducted every year.

In this initiative managers have an opportunity to
discuss current compliance issues with their teams as
well as to specifically communicate and inform about
selected compliance topics.
1 This figure includes Siemens Healthineers employees.
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. 181,000
since the start of the campaign, 181,000
employees were trained on the contents of
the Business Conduct Guidelines

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296
Training programs are planned and initiated according
to regional conditions. A learning management
system helps track mandatory trainings for the
defined and regionally specified target groups, and
the completion of training requirements is regularly
reported to the management of the respective unit.

A comprehensive train-the-trainer concept equips
trainers with the educational and content-related skills they need for the various compliance training courses.

Because of the ongoing pandemic, this concept was
implemented virtually again fiscal 2021.

Collaborations with business partners
Under certain circumstances, Siemens can be held
liable for the illegal activities of certain third parties (such as business partners acting as intermediaries,
resellers, and consortium partners), whom we refer
to as business partners. Transactions with Siemens
could be misused to gain undue advantages for the
business partner, or for Siemens.

Each Siemens unit is responsible for its own business
partners. They must be carefully selected by the
responsible operational unit and must undergo a riskbased compliance due diligence process. This process needs to be adequately monitored for the duration
of the business relationship; in other words, the need
for the relationship and performance, taking into
account remuneration, is regularly reassessed. We
have established mandatory processes and related
tools for this purpose that are continuously refined
to cover risks that arise.

Decisions about engaging a business partner are
transparent and risk-oriented, and are based on the
most recent compliance due diligence procedures.

Appropriate remediation measures are initiated
depending on the risk classification of the business
relationship and the risks identified.

Both business partners and suppliers are required to
sign a predefined code of conduct. In addition,
depending on the risk classification, audits can be
carried out at the business partners’ premises by the
Siemens audit function or external service providers.

CHAPTER 3.3 SUPPLY CHAIN
Early detection of warning signs of
money laundering
Siemens has a declared goal of doing business only
with reliable customers, business partners, and other
third parties. That’s why we perform risk-based checks
of our business counterparts’ identity and financial
backgrounds as well as the origin of their payments in
order to ensure that payments come from legitimate
sources. To help our employees better detect and
identify money-laundering risks, we regularly hold
awareness trainings all over the world. Where
necessary, Siemens reports suspicious matters to the
responsible authorities.

To provide focused support for our business, risktriggering warning signals were revised and further detailed in fiscal 2021.

Compliance indicators and
whistle-blowing
At Siemens, we offer all employees and external third
parties protected channels through which they can
report violations of external and internal rules. Reports made through these channels are forwarded to our
compliance organization and are monitored. Possible
misconduct can also be reported directly to the
compliance officers in the individual business units
or to management. Our employees make use of these
reporting channels regularly. In fiscal 2021,
394 compliance cases were reported that required
further inquiry or investigation. We believe that the
increase in cases from 332 in fiscal 2020 is within a
normal fluctuation range when taking the COVID-19

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Compliance indicators 1
Fiscal year
2021 2020
Compliance cases reported 394 332
Disciplinary sanctions 121 188
therein warnings 62 90
therein dismissals 49 63
therein other² 10 35
1 Continuing and discontinued operations
2 Includes loss of variable and voluntary compensation components, transfer, and suspension
pandemic into account. The total number of
disciplinary measures for compliance violations in
fiscal 2021 was 121 (188 in fiscal 2020).

The number of disciplinary measures in a fiscal year
doesn’t necessarily reflect the number of compliance
cases reported in the same period. Frequently,
disciplinary action isn’t taken in the year in which the underlying cases were reported or the investigation –
which follows a careful procedure – was completed.

A compliance case may also result in multiple
disciplinary actions or none at all.

We believe that the evidence demonstrates that our
compliance system is well-designed and effectively
implemented. Due to the nature of our business
operations, the environments where we work, and
our wide range of different geographic regions, we
don’t regard the number of incidents as unusual.

More information on significant ongoing and future
charges of corruption, antitrust violations, and other
violations of the law can be found in COMBINED
MANAGEMENT REPORT CHAPTER 8.3.4 COMPLIANCE RISK, AND
NOTE 22 IN NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR FISCAL 2021.

Collective Action and the
Siemens Integrity Initiative
If substantial progress is to be made in combating
corruption and fostering fair competition, large
numbers of stakeholders must act collectively. The
global Siemens Integrity Initiative earmarks more
than US$100 million to support organizations and
projects that combat corruption and fraud through
Collective Action, education, and training. The
Siemens Integrity Initiative focuses on supporting
projects that have a clear impact on the business
environment, can demonstrate objective and
measurable results, and have the potential to be
scaled up and replicated.

Building upon the Third Funding Round from 2018,
in December 2020 we invited short-listed partners to
submit applications for additional support, adhering
to the published criteria for application and selection.

A team of experts from various disciplines and regions
carefully reviewed the projects, presented them to
the Siemens Steering Committee for approval, and
then introduced them to the World Bank for what’s
known as the “non-veto” process and to the European
Investment Bank for information.

In July 2021 we announced the eight additional new
projects that will be funded for three years beginning
July 1, 2021, each for a total of up to US$20.5 million and with activities in more than 27 countries.

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.

WWW.SIEMENS.COM/INTEGRITY- INITIATIVE
US$120 million in support for
85 projects in 50 countries

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The Siemens Integrity Initiative constitutes one
element of a 2009 settlement between Siemens and
the World Bank and another 2013 settlement between
Siemens and the European Investment Bank (EIB).

Results and progress in fiscal 2021
In fiscal 2021, we again made significant progress
with our Siemens compliance system, including:
→ The global BCGs training was updated to
emphasize the importance of integrity and
compliance in the company and among its
employees. The training’s content, formats, and
execution were adapted to current conditions
and further developed.
→ We formed global teams of compliance experts
to focus on defined topics. This is intended to
address major challenges on a cross-organizational basis while also identifying opportunities for improvement in efficiency and efficacy by
tapping into all of Siemens’ knowledge. Within
these networks, the ongoing monitoring of
compliance risks was supplemented with a global 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.

We’ll continue our development of a compliance
system tailored to the individual risks and
opportunities of our businesses and our
organizational structure at Siemens. In our global
employee survey in fiscal 2022, we’ll again solicit
our employees’ feedback on integrity at Siemens in
order to be able to derive appropriate measures.

Finally, in fiscal 2022 we’ll continue to implement
the projects of the Siemens Integrity Initiative and
monitor their progress.

WWW.SIEMENS.COM/INTEGRITY- INITIATIVE
“Ethical management of the
company is very important to us.

That’s why we’re committed to a
collective approach and support
international initiatives to
combat corruption.”
CEO Roland Busch

3.1 Compliance
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299
As a global company, we are well aware of our
responsibility to society. We are unreservedly
committed to safeguarding and respecting human
rights in every stage of the value chain. We understand this to be a key element of acting with integrity and
responsible corporate governance. Our holistic
approach to respecting human rights is not limited to
our own business locations: We also consider our
supply chain and the business activities of our
customers. Our goal and aspiration is to identify any
human rights violations occurring anywhere in our
value chain as early as possible and to mitigate
identified risks responsibly.

Our new DEGREE framework consists of different
components to address the multifaceted issue of
human rights in the areas of G (Governance), E (Ethics), and E (Equity).

Commitment to human rights and
international standards
Our human rights principles are firmly grounded in
the United Nations 2030 Agenda for Sustainable
Development. Siemens believes that the
corresponding Sustainability Development Goals
(SDGs) can only be fully achieved if any potentially
negative impacts within the value chains are
examined in greater detail and effective action is
taken to counter them. In these efforts, we are guided
by international standards that help companies
define their approaches to human rights and
continuously optimize them. These standards include
the United Nations Guiding Principles on Business and
Human Rights and the Guidelines for Multinational
Enterprises published by the Organization for
Economic Cooperation and Development (OECD).

They highlight the importance of a due diligence
process that is able to proactively identify, assess, and prevent any human rights violations to protect those
affected or at least mitigate their impacts as much as
possible.

The Business Conduct Guidelines
Our pledge to safeguard human rights is anchored in
our Siemens Business Conduct Guidelines (BCGs)
COMPLIANCE). The BCGs are binding on all employees
and business partners worldwide. They set out the
fundamental principles and rules that apply to our
actions within our company and in relation to our
customers, external partners, and the public.

Siemens is committed to complying with the
following international standards and also expects
its business partners to observe the following
guidelines, where applicable:
→ The International Bill of Human Rights,
consisting of:
· the Universal Declaration of Human Rights,
· the International Covenant on Civil and Political
Rights, and
· the International Covenant on Economic, Social
and Cultural Rights.
– Respect for human rights remains in focus at
all times
– Commitment to compliance with international standards – Inclusion of all key partners

3.2 Human rights

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→ The European Convention for the Protection of
Human Rights and Fundamental Freedoms,
→ The Tripartite Declaration of Principles concerning
Multinational Enterprises and Social Policy of the
International Labour Organization (ILO),
→ The ILO Declaration on Fundamental Principles
and Rights at Work,
→ The OECD Guidelines for Multinational Enterprises
(after adoption of the core elements of the UN
Guiding Principles on Business and Human Rights
in 2011),
→ The UN Guiding Principles on Business and
Human Rights, and
→ The Ten Principles of the United Nations Global
Compact.

Beyond that, Siemens AG reaffirmed its commitment
to workers’ fundamental rights in an international
framework agreement signed by trade unions and
employee representatives in 2012.

The following fundamental rights are among those
enshrined in the abovementioned agreements and
guidelines and in our Business Conduct Guidelines:
→ No discrimination, respect for the principles of
equal opportunity and equal treatment,
→ Free choice of employment (no forced labor),
→ Prohibition of child labor,
→ Fair pay,
→ Freedom of collective bargaining and association,
→ Compliance with safety rules.

Management and responsibilities
Our actions in support of respect for human rights
and our commitment to implementing the UN
Guiding Principles on Business and Human Rights are
monitored by the Siemens Managing Board and the
Siemens Sustainability Board (SSB). These bodies
discuss both progress and challenges and identify
improvement measures. Furthermore, the Chief
Compliance Officer reports to the Supervisory Board
and Managing Board at a regular basis and also
provides information on topics relating to human
rights on an ad hoc basis.

The SSB has given the Sustainability and Compliance
departments the task of ensuring that the respect for
human rights is more deeply embedded in the
company’s worldwide processes and business
decisions. To this end, the two departments have
developed a framework program aimed at ensuring
the respect for human rights and agreed to
successively realize improvement potential across all
program dimensions. In fiscal 2021, these efforts
were focused on capacity building, awareness
creation and the implementation of a comprehensive
due diligence approach in customer-related business.

SIEMENS’ HUMAN RIGHTS FRAMEWORK
Continuous improvement measures
We view living up to our responsibility for human
rights as a continuous improvement process. Siemens
employs risk management programs and procedures
across its value chain to systematically identify and
assess risks of human rights violations at an early
stage and mitigate these risks depending on the
company’s leverage potential.

Human rights in the supply chain
Maintaining sustainable supply chains is one of our
guiding principles. Siemens suppliers commit to
uphold the Siemens Group Code of Conduct for
Suppliers and Third Party Intermediaries and Business
Partners, which affirms the fundamental human
rights of our suppliers’ employees.

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SIEMENS SUSTAINABILITY REPORT 2021 57

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301
This Code encompasses the following points:
→ Fair labor conditions (pay, working hours, vacation), → Right to freedom of association,
→ Responsibility for health and safety standards,
→ Prohibition of discrimination,
→ Prohibition of forced labor and child labor,
→ Provision of anonymous grievance mechanisms.

Siemens takes a risk-based approach to identifying
potential risks in its supply chain. This includes
Corporate Responsibility Self-Assessments (CRSAs) by
suppliers, internal supplier audits, and external
sustainability audits. Whenever deviations from the
principles of the Code of Conduct for Siemens
Suppliers, and therefore also violations of the human
rights principles defined in this document are
identified, we work with the supplier to clarify how
lasting corrective action can be taken within a
reasonable time frame. SUPPLY CHAIN
In case of severe violations, we reserve the right to
terminate the supplier relationship.

MATERIAL HUMAN RIGHTS RISK ISSUES WITHIN OUR
VALUE CHAIN
Siemens’ human rights framework
I. Periodic human rights impact review process
III. Overarching pillars
Periodic review
II. Transactional human rights due diligence process
Risk identification
How are risks in projects
identified?
Risk assessment
How are risks
assessed?
Risk management
(incl. monitoring)
What are effective
mitigation measures?
How are the material human right aspects and human rights risk issues for Siemens periodically identified?
Grievance mechanism How are effective complaint channels provided? Awareness
Policy and circulars
Training and competence building
Reporting and external
Stakeholder engagement
How is awareness about human rights issues ensured at Siemens? How is Siemens’ commitment to respecting human rights embedded in policies and circulars?
How do you develop target group-specific human rights training for Siemens? How are human rights activities and issues disclosed?
How do you build an open dialog with external and internal stakeholders?

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With regard to the new German Supply Chain Due
Diligence Act (LkSG), which will enter into force on
January 1, 2023, we have established a crossfunctional working group to evaluate the effects of the new law on Siemens.

Human rights in the workplace
The BCGs BUSINESS CONDUCT GUIDELINES are an integral
element of all employment contracts. Every employee
is responsible for respecting human rights. Siemens
does not tolerate discrimination, sexual harassment,
or any other form of personal attack on individuals or
groups. In addition, the principles of equal opportunity and equal treatment apply without restriction.

The principles of diversity, equal opportunity, and
inclusion are all embedded in our business goals and
processes. We acknowledge that we must ourselves
effect the transformation we want and remain
committed to creating a more equitable, more
sustainable future. We believe that movements such
as “Black Lives Matter” and changes are needed to
address the injustice that black Americans and other
minorities still have to endure. For this reason, we
launched the “Courageous Conversations” platform
for our people in the U.S., where they can share their
experiences and learn from each other. More than
3,500 employees participated in this dialog format in
2021. In our Supplier Diversity Program, we identify
opportunities for pro bono work to promote social
justice and collaborate with minority-controlled
businesses in a targeted manner. To promote diversity
among suppliers, Siemens, Siemens Healthineers,
and the Siemens Foundation together have donated
more than US$ 8 million to historically black colleges
and universities and to organizations that improve
access to COVID-19 vaccines in minority communities.

MATERIAL HUMAN RIGHTS RISK ISSUES WITHIN OUR

VALUE CHAIN
Fair pay and active codetermination
Fair and transparent pay is an indispensable element
of appreciative, respectful dealings with our people.

In Germany, the collectively agreed-to pay system
forms the basis for equal pay within the areas covered
by collective agreements. Raises for those outside
collective agreements are also handled without
discrimination after review on the basis of our defined, market-based “pay-parity” methodology. A full 88 %
of employees in Germany are covered by collective
agreements. Approximately 98 % are subject to codetermination. The remaining 2 % are executive staff with no codetermination rights. Siemens negotiates
wages with unions in free collective bargaining
negotiations.

For further information, please see the chapters:

OCCUPATIONAL HEALTH AND SAFETY, WORKING AT SIEMENS
with a focus on DIVERSITY and PRODUCT STEWARDHIP.

Human rights in the case of business
decisions by customers
Siemens strives to systematically operationalize any
human rights risks within its value chain by means of
a company-wide due diligence approach. This also
includes the business conducted by our customers.

We operate in nearly 200 countries, including
countries with a challenging social and political
context.

Our stakeholders are increasingly asking what
responsibility companies bear for the business
activities of their customers. We recognize this and
take action to ensure that our risk due diligence
The early detection of
environmental and social risks
plays a key role in human rights
due diligence.

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303
procedures continue to evolve and that we work to
assess possible environmental and social risks in
our operational business on an even more
comprehensive basis and at an earlier stage.

Material human rights risks within our value chain,
including in the business relationships of our
customers, that we have identified are summarized
in the following TABLE.
→ Our experience in dealing with critical/
controversial projects,
→ Expertise supplied by external human rights
experts, and
→ Insights from dialogs with investors, Siemens
shareholders, NGOs, and peer groups.

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
on the basis of the abovementioned material risk
fields. This will help Siemens identify and assess
possible environmental and social risks, and the
associated human rights and reputational risks, earlier and on an even more comprehensive basis in the case
of business decisions made by customers. The tool
can be used to check over 60 different risk indicators
for individual business activities. Together with
external human rights experts, targeted mitigation
measures are defined depending on how pronounced
the risk profile is and what kind of influence Siemens
has. The Risk Due Diligence Tool will be continually
refined and expanded to cover critical human rights
issues.

As part of our responsible business conduct practices,
we also look at counterpart risks. Our business
responsibles assume responsibility for the periodic
risk assessment of key customers with regard to
environmental and social risks and their related
human rights and reputation risks. The development
of this process is ongoing and will be finalized in
fiscal 2022.

Training and skill building
Siemens firmly believes that the principles of
sustainability can be fully and effectively practiced only if they constitute a voluntary pledge based on core
beliefs. Continuous skill building is a key factor in this regard. Our activities in this area are geared toward
specific target groups. Siemens provides training for
suppliers, interactive training formats for employees,
and tailored skill-building activities for global and
regional salespeople and specific functions such as
Compliance and Environment, Health, and Safety (EHS).

We believe it is essential to integrate the key risk fields into our due diligence procedures. The following
assessments have been considered:
→ Results of the materiality assessment in the area
of human rights from fiscal 2019. We conducted
an online survey of 500 stakeholders, including
suppliers, customers, NGOs, think tanks, investors,
shareholders, government representatives, and
our people,
1 Including in the areas of coal, oil, and gas and mining, for example.

Human rights risk issues in the
supply chain
› Fair labor conditions
› Freedom of assembly
› Discrimination
› Forced labor
› Child labor
› Health and safety
Human rights risk issues in the case of
business decisions by customers
› Business-specific environmental
and social risks 1
› Country-specific risks
› Impact on local communities
(such as indigenous population,
ethnic or religious minorities)
› Fair labor conditions
› Modern slavery
› Discrimination
› Occupied territories
Human rights risk issues in the
workplace
› Health and safety
› Fair labor conditions
› Discrimination
Material human rights risk issues within
our value chain

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Networks and coalitions
A regular dialog with peer group companies creates
a platform founded on mutual trust for a more indepth discussion of human rights. This also helps us come up with fresh ideas and harness past experiences
for continuous improvement measures within our
company. This kind of mutual dialog focuses on
discussing challenges and solutions, addressing
conflicts of goals, and identifying possible areas of
shared action. After all, we firmly believe that we can achieve faster progress by concerted action than by
acting alone.

Siemens is a member of the Global Business Initiative
on Human Rights (GBI). This initiative is one of the
leading international network initiatives in the area
of human rights. It consists of over 20 companies
from all over the world. Siemens is also represented
in the European Business and Human Rights Peer
Learning Group of the Global Compact Network. In
Germany, Siemens is also involved in the working
groups of econsense 1 in the areas of business and
human rights and human rights in the supply chain.

Besides regular dialog with peer groups and think
tanks, we also interact regularly with external human
rights advisors on the subject of training, sensitization, and due diligence. In addition, we communicate
regularly with investors, shareholders, rating agencies, and NGOs.

Our brochures “Sustainability in the Supply Chain” and
“Siemens Group Code of Conduct for Suppliers and
Third Party Intermediaries and Business Partners”
SUPPLY CHAIN support and sensitize our suppliers to
the importance of embedding these values, as well
as the sustainability requirements they entail, more
deeply in their own supply chains. Siemens also offers
web-based training on sustainability and human
rights in the supply chain for all our suppliers.

A new, global web-based training program for
environmental, social, and human rights due diligence
was successfully conducted in fiscal 2021. Although
the training program is available to all employees,
participation is required for a smaller target group
consisting of senior managers, salespeople, and risk
management professionals. In total, 31,000 employees
had participated in the training program by the end of
fiscal 2021.

In addition, our Human Rights Knowledge Hub offers
further training materials on topics such as modern
slavery, occupied territories, and effective grievance
mechanisms.

We also plan to launch an internal platform to enable
a regular dialog across businesses, countries, and
specific departments and openly discuss challenges,
risk fields, and examples of good practice.

Grievance mechanism and channels
Siemens offers all our people an external third parties protected channels for reporting violations of external 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 WWW.SIEMENS.COM/HUMANRIGHTS
1 econsense is a Forum for Sustainable Development of German Business.

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– Assumption of responsibility on the basis
of the holistic approach summarized as
“Prevent – Detect – Respond”
– Evaluation of suppliers on the basis of selfassessments and on-site audits – Focus on human rights: climate protection,
occupational safety, and responsible sourcing of minerals According to the UN Global Compact, the “supply
chain makes a significant impact in promoting human
rights, fair labor practices, environmental progress,
and anti-corruption policies.” 1 Moreover, improved
waste management and use of materials based on
the principles of a circular economy can reduce
consumption of natural resources. In addition, we
have increased our focus on climate protection in our
supply chain in recent years.

Responsibility for the worldwide
supplier network
Sustainability in the supply chain is based on a holistic “Prevent – Detect – Respond” approach and is designed
to minimize risk.

We expect all suppliers to make a firm commitment to
our Siemens Group Code of Conduct for Suppliers and
Third Party Intermediaries (“Code”): The requirements
set out in the Code must be accepted by all suppliers.

The Code, which was introduced more than ten years
ago, is based on the principles outlined in the United
Nations Global Compact. The Code also builds on the
Siemens Business Conduct Guidelines (BCGs), which set
out the basic principles of sustainability for the entire company.

Among other things, suppliers declare their willingness to respect the fundamental rights of employees,
establish high standards for health, safety, and
environmental protection, and pursue a zero-tolerance

3.3 Sustainable supply chain practices
1 https://www.unglobalcompact.org/what-is-gc/our-work/supply-chain The procurement activities of Siemens are wideranging: The company purchased goods and services valued at just under €28 billion in fiscal 2021,
equivalent to approximately half our total revenue.

We are aware that our worldwide purchasing activities
have a major impact on local communities and the
environment in our procurement markets. Sustainable
business practices are therefore an integral part of
purchasing policy at Siemens. We expect our suppliers
not only to contribute to the economic success of our
company, but also to ensure strict compliance with
our sustainability requirements, which are
summarized in the Siemens Group Code of Conduct
for Suppliers and Third Party Intermediaries. The
obligation of suppliers to observe our Code of
Conduct is an essential basis for fulfilling the
Governance (“G”) ambitions of our DEGREE framework.

Our supplier network is broadly diversified. We work
with about 63,000 suppliers in around 145 countries.

There is great variation in the overall conditions that apply across these countries. As a result, strict
compliance with the global sustainability
requirements that apply to our suppliers is a major
challenge in our day-to-day purchasing activities.

Siemens purchased goods and services
worth €28 billion from 145 countries

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strategy in relation to corruption and bribery. The Code also contains a section on preventing purchases of
conflict minerals, meaning minerals produced in certain countries that yield profits for armed groups in particular.

The Code also includes provisions on preventing money
laundering and terrorist financing, export control and
customs, and ensuring data protection. In addition,
suppliers are obligated to institute a protected grievance mechanism for their employees. An accompanying
Code of Conduct brochure and a web-based training
module are provided to aid in supportive communication.

Supplier management follows clear criteria
The supplier management process at Siemens
includes strict criteria for supplier selection and
qualification. On this basis, we can quickly identify
and counteract any sustainability risks also when
admitting new suppliers. This may apply to suppliers
with the following risk characteristics:
→ Locations in high-risk countries
→ Products according to the requirements for
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
RoHS (Restriction of the Use of Certain Hazardous
Substances in Electrical and Electronic Equipment)
→ General aspects of supplier quality management
(including sustainability-related topics)
→ Plant engineering (risks associated with
construction contractors)
To identify these risk characteristics, we categorize
our suppliers according to several factors:
→ Purchased material and service fields are assigned
to the abovementioned risk groups as part of our
processes. This makes it possible to assign
measures to individual suppliers (e.g., specific
contract clauses, obtaining proof, possibly
flagging the supplier for an on-site audit).
→ Risk levels for individual countries are introduced
based on sustainability indicators for key areas
such as legal compliance, corruption and bribery,
human rights in the workplace, child labor, and
more. We base these assessments on information
from internationally recognized organizations.
→ Suppliers may be assigned to other strategic
categories based on factors such as specific
preparations for projects with high local
purchasing volumes, for example.

Self-assessments and site audits as
control mechanisms
We perform suitable reviews according to the risk
assessment for suppliers based on the categories
outlined above. These reviews range from supplier
self-assessments of their own sustainability practices
to sustainability audits conducted on-site by external
auditors.

Self-assessments
Corporate Responsibility Self-Assessments (CRSAs) are
part of the supplier qualification process, which is
reviewed regularly and updated as needed to take new
standards and regulations into account. Accordingly,
new potential suppliers undergo a binding qualification process, while existing suppliers are reassessed every
three years.
1 Conducted by Siemens auditors with integrated sustainability questions. 2 Conducted by external auditors.

Number of audits
4,267
Sustainability
self-assessments
394
Sustainability
audits2
319
On-site supplier
quality audits1

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Quality audits with sustainability questions
The quality audits of suppliers conducted by Siemens
auditors included questions on the subject of
sustainability that cover all aspects and requirements
of the Code. We conducted 319 on-site audits
worldwide in fiscal 2021, that being about 15 % less
than in the previous year.

The number of completed CRSAs declined by around
10 % from 4,759 self-assessments in fiscal 2020 to
4,267 in 2021. This moderate decrease is mainly
attributable to the lower number of new suppliers
resulting from the general reduction of our supplier
pool from around 65,000 in 2020 to 63,000 in the
past fiscal year. On the other hand, the number of
agreed-upon improvement measures increased in
fiscal 2021. The effects became apparent only in 2021
due to the fact that new topics were added to the
Code of Conduct and incorporated into the CRSA only
late in fiscal 2020. In particular, we made larger
additions to the Code of Conduct in the categories of
“Legal compliance/prohibition of corruption and
bribery” and “Respect for the basic human rights of
employees,” which are now also reflected in the
higher number of improvements.

Corporate Responsibility Self-Assessments (CRSA)¹
Fiscal year
(Number) 2021 2020
Europe, C.I.S.,² Africa, Middle East 1,505 1,439
Americas 555 936
Asia, Australia 2,207 2,384
Total 4,267 4,759
Fiscal year
Agreed-upon improvement (number) ³ 2021 2020
Legal Compliance/prohibition of
corruption and bribery 1,152 1,085
Respect for the basic human rights of
employees 773 655
Prohibition of child labor 149 144
Health and safety of employees 705 511
Environmental Protection 680 754
Supply Chain 145 130
Total 3,604 3,279
1 Self-assessments completed mainly by suppliers from non-OECD countries with a purchasing volume of >€50,000 per year. Questionnaires that were initiated, completed, and concluded in the reporting period.
2 Commonwealth of Independent States.
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 management systems and the lack of specific processes and guidelines implemented by the supplier.

Supplier quality audits with integrated sustainability questions Fiscal year
(Number) 2021 2020
Europe, C.I.S.,1 Africa, Middle East 116 144
Americas 89 77
Asia, Australia 114 153
Total 319 374
1 Commonwealth of Independent States.

External sustainability audits
From our point of view, external sustainability audits
are the most effective method of assessing the
sustainability performance of our suppliers. They are
conducted by one of our external audit service
providers and serve as a control mechanism for
suppliers with a high risk assessment.

External sustainability audits (ESA)
Fiscal year
(Number) 2021 2020
Europe, C.I.S.,¹ Africa, Middle East 123 65
Americas 44 19
Asia, Australia 227 185
Total 394 2 269
Fiscal year
Agreed-upon improvement measures (number) 3 2021 2020
Legal Compliance/prohibition of corruption
and bribery 1,141 937
Respect for the basic human rights of
employees 2,446 1,877
Prohibition of child labor 89 95
Health and safety of employees 2,430 2,064
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.

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The improvement of the COVID-19 situation especially
since the spring of 2021 actually made it possible to
conduct more external sustainability audits than
before the COVID-19 pandemic. Compared to 269
sustainability audits in fiscal 2020, 394 audits were
conducted in 2021, which equals of an increase of
approx. 46 %. This number includes 65 audits that we
conducted virtually due to the COVID-19 pandemic,
where the auditor inspected the supplier’s facility by
means of a remote video link. Also included are 14
audits at companies which Siemens purchases from
but which were ordered by a third party and verified
by our audit provider. Those audit reports fully meet
the Siemens expectations and were given to us with
approval of the audited companies.

For monitoring purposes, audits can be repeated or
follow- up audits can be performed by our external
audit service providers. It is also possible for the
responsible purchasing departments at Siemens to
agree on a series of optimization measures with the
supplier. During this process, we remain committed
to our partnerships with our suppliers and help them
to improve. However, if the problems continue or a
supplier does not show a willingness to take necessary
remedial action, we remove that supplier from our list.

Our central warning message process is intended to
ensure even faster, more efficient responses to
violations of the requirements laid out in the Code. In this process, suppliers can be blocked in local systems around the world through central messaging.

Sustainability topics with a particular
need for action
Three focus topics play an important role in responsible supply chain practices due to their strong connection
with other Siemens sustainability activities. These
include safeguarding human rights, including
responsible sourcing of minerals, lowering CO2
emissions in our supply chain, and ensuring health
and safety, especially on project construction sites.

Responsible sourcing of minerals
Siemens is working hard to prevent the use of
minerals from areas of conflict and high-risk areas in
the supply chain that are covered by the risk definition set out in Annex 2 to the OECD’s Due Diligence
Guidance for Responsible Supply Chains of Minerals
from Conflict-Affected and High-Risk Areas.

To this end, we have developed principles for the
responsible sourcing of minerals (Responsible
Minerals Sourcing Policy) and integrated them into
our purchasing process. These principles offer a
uniform, company-wide standard for supply chain
management in this area. Our approach to these
topics is geared toward the risk-based requirements
of the OECD’s Due Diligence Guidance. To determine
the use, sources, and origins of these minerals within
our supply chains, we investigate the smelting plants
involved. Siemens is a member of the Responsible
Minerals Initiative (RMI), an organization of more
than 400 industrial companies that provides auditing
programs for smelting.

We use the Conflict Minerals Reporting Template
(CMRT) published by the RMI to survey our more than
2,600 relevant suppliers and elicit the information we
need about smelters in our supply chain that are
associated with the production of tin, tantalum,
tungsten, and gold (3TG).

We share our findings regarding identified smelters
with our RMI partners. The initiative then reviews
whether the smelters are certified. Siemens is an
active member of the Responsible Minerals Assurance
Process and urges the decision-makers of smelters
that are not yet certified to participate in audit programs.

In this process, Siemens supports the smelters as they
move toward the final audit and certification.

Individual results are communicated on the RMI
website: WWW.RESPONSIBLEMINERALSINITIATIVE.ORG
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

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operations and explains how these emissions can
be sustainably reduced. In a second part, the
supplier’s primary data can be queried.

This tool is based on the following methodology:
→ The basis is the model calculation of our external
partner, which divides our suppliers into product
and service categories and assigns an industry
average for CO2. This value is supplemented by a
country-specific figure for CO2, also based on
internationally available data.
→ Since early 2021, we ask our suppliers to inform
us about their implemented CO2 reduction
measures and their CO2 management via CWA.

Based on the given answers, we update the
calculated CO2 reductions and their remaining
footprint.

Detailed information on this development and
the CWA is provided at WWW.SIEMENS.COM/ CARBONSUPPLIERS.

In fiscal 2021, we contacted 7,100 suppliers and
by the end of this fiscal year we had received more
than 1,800 answers reporting the efforts to
reducing their CO2 footprint. Their answers resulted
to an average reduction of 7.6 % against our
formerly calculated CO2 footprint, respectively an
absolute amount of 104 kt CO2e.

Enforcing occupational safety at construction
sites
Our supply chain management and EHS experts
have jointly established a selection process for
suppliers that primarily perform construction
services for Siemens. Before these contractors can
be added to our supplier pool and used, EHS experts
review and confirm the responses given by potential
contractors to occupational health and safety
questions. We also regularly review the risk
potential associated with the relevant service
categories and update our review methodology.
rights are systematically violated,” Siemens also
applies its established risk assessment system to
evaluate further minerals beyond the 3TG grouping.

Cobalt is one of the minerals or metals that have been
incorporated into the Siemens due diligence process
following RMI’s development of an auditing standard
and reporting specifications for cobalt (CRT) in
addition to its 3TG due diligence process specifications.

Siemens now also conducts supplier audits for cobalt,
focusing on battery manufacturers.

Further information and the text of our Responsible
Minerals Sourcing Policy can be found at
WWW.SIEMENS.COM/RESPONSIBLEMINERALS.

Program to reduce CO2 in the supply chain
As part of the Siemens Carbon Neutral Program and
our reporting to the CDP, we publish the upstream
greenhouse gas emissions caused by our suppliers. In
our Carbon Reduction@Suppliers approach, which is
implemented with an external partner, we prepare
analyses based on economic data to model the CO2
footprint for each one of our suppliers.

So, in 2021 the supply chain emissions for our
Siemens DEGREE ambition (Siemens without SHS)
were reduced by 0.6 % to 8,048 kt CO2e since – for
the first time – we included our suppliers’ CO2
reductions which they already had executed. Taking
the 1.5 % increase of our Procurement Volume into
account, the CO2 emissions were reduced by more
than 2 %.

Description of the “Carbon Reduction at
Suppliers” program
In 2018/19, we set the basis of this program when
we contacted and surveyed more than
9,000 suppliers in over 90 countries and then
worked extensively on a process for identifying our
suppliers’ CO2 footprints and reducing emissions
through individual agreements on targets.

Today we use a web-based tool known as the
“Carbon Web Assessment (CWA),” which shows our
suppliers the highest CO2 emitters in their

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Cybersecurity rapidly gaining in
importance
Digitalization is involved in so many aspects of our
lives. Hospitals, factories, power plants, power grids, water systems, intelligent infrastructures, connected
mobility – digital systems have become indispensable
in many sectors of the economy. Wherever large
volumes of information are stored, potential criminal
attacks are never far away. That makes cybersecurity
one of today’s most relevant issues – not just for
companies but for society as a whole. And its
relevance is expected to increase over the coming
years. It will be a crucial instrument for helping
businesses safeguard critical infrastructures, protect
sensitive information, and ensure their business
continuity.

It’s easy to see why secure digital systems are so
necessary: The Internet of Things (IoT) is one of the
driving technologies behind the digitalization of
industry, just as it also drives nearly all Siemens
business fields. And as one of Siemens’ strategic goals, this digital transformation will only succeed if
Siemens can be certain that data and connected
systems will remain secure. So, cybersecurity is a top
priority for Siemens.

An approach that covers all levels simultaneously –
from the operational level to the field level and from
access control to copy protection – is absolutely
essential to keeping industrial facilities
comprehensively safe from internal and external
cyberattacks. Siemens recognized early on that
cybersecurity would be an integral part of the digital
revolution, and it has successfully addressed the issue by creating a centralized cybersecurity ecosystem. The
company has developed a holistic approach to
cybersecurity that helps to provide the best possible
protection for its IT1 and OT2 infrastructure as well as its products, solutions, and services.

Our new DEGREE framework addresses the topic of
cybersecurity under “E” for Ethics. That commitment is
further reinforced by Siemens’ participation in founding the “Charter of Trust” initiative to protect data and
promote cybersecurity within a trustworthy digital world.

Siemens is certain that it will become more and more
important to be able to trust the digital world. We’re a recognized industry leader in cybersecurity, and our goal is to protect data and continue to develop cybersecurity to create a more trustworthy digital world.

Our cybersecurity performance has won outside
recognition from sustainability ratings and rankings. The DJSI, for example, has recognized us as a leading
company relative to our peers.

The Cybersecurity Department works to be a trusted
partner in the digital world for our society, our customers, and Siemens units themselves. Siemens can draw on
decades of expertise: The company’s small IT security
team back in 1986 has grown to a staff of about 1,300
cybersecurity experts. They develop and adopt leading
technologies, leverage our internal network, and
maintain a dialog with other companies. We want to
continuously improve resilience through clear, holistic accountability and ownership. We rely on a culture of
– Aiming for a leading role in cybersecurity
– Global expertise and governance structures
– Data protection is part of the compliance
system

3.4 Cybersecurity and data privacy
1 Information technology
2 Operational technology

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ownership for all aspects of cybersecurity. All of
which gives Siemens a very broad foundation for
protecting itself, its customers, and society at large.

Our Cybersecurity unit has the task of protecting our
internal office environment and our Siemens plants
around the world. We develop our own security
solutions for that purpose, integrate them into our IT
and OT environments, and are careful to provide
continuous maintenance for systems throughout
their life cycle.

To further enhance the cybersecurity business for
Siemens AG, we’re taking the next step: We’re offering
a selection of highly mature security services for our
external customers. In close collaboration with the
Business, we’re defining our go-to-market strategy
and making the most our access to our customers.1
Responsibilities for cybersecurity clearly
defined
A Cybersecurity Board (CSB) has been established to
coordinate cybersecurity across the entire Siemens
ecosystem. Chaired by the Global Chief Cybersecurity
Officer, the Board is intended to steer the company’s
overall cybersecurity approach. The company units
are represented on the CSB by their Chief Cybersecurity Officers. The Board provides a collaborative platform
for advancing strategic initiatives throughout Siemens
and its affiliated companies in order to address
security issues and establish cybersecurity
requirements and recommendations – which the
company’s various units then define more specifically
for themselves. Collaboration agreements have also
enabled the Chief Cybersecurity Officers at Siemens
Energy and Siemens Healthineers to participate in
the CSB.

Since cybersecurity is a priority for top management,
the Global Chief Cybersecurity Officer reports directly to the responsible member of the Managing Board,
quarterly to the full Managing Board, and annually to
the Supervisory Board.

The Cybersecurity Department tracks the following
issues and carries out the following activities:
→ Measures in information technology, operational
technology, and product and solution security
→ Cybersecurity risk management
→ Monitoring and reporting on the status and
progress of cybersecurity measures and checks
→ Cyber readiness and second line of defense
assessments 2
→ Mandatory global cybersecurity awareness
measures and annual IT cybersecurity global
awareness trainings
→ Coordinating the joint bodies (such as the CSB),
tasks, and topics by central and local cybersecurity
teams in the businesses and countries
→ Strengthening cybersecurity at a global level in
different industries beyond company boundaries
through the activities of the Charter of Trust: 3 for
example, through its Board of Directors,
management forum, and various task forces. The
Cybersecurity Department is also a service
provider for the entire Siemens cybersecurity
ecosystem.

The cybersecurity organization was developed:
→ To protect Siemens’ infrastructure and products
from cyberattack
→ To monitor the threat landscape and initiate the
necessary measures to ensure cyber resilience
→ To identify, assess, and call attention to
cybersecurity risks and actively manage them
1 https://new.siemens.com/global/en/products/services/cybersecurity.html. 2 https://new.siemens.com/global/en/products/ services/cybersecurity/assessments-for-operational-technology.html 3 https://www.charteroftrust.com/
Approximately 1,300
experts for Cybersecurity
work for Siemens

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→ To apply country-specific laws and regulations
that affect our products, solutions, and
infrastructure and take action accordingly
→ To reduce the risk of harm to customers
→ To reduce the risk of business interruption
→ To prevent a loss of reputation and market share
→ To minimize risk of penalties
Ensuring cybersecurity calls for an effort from every
one of our people, both to protect our products,
solutions, and services and to safeguard our own IT/
OT infrastructure. This lays the groundwork for our
customers to be able to buy products and solutions
that meet their security requirements, and with which
they can run their own systems reliably and securely.

Siemens provides cybersecurity training for its
employees every year. In 2020, 87 % of all employees
took part in the online cybersecurity training to
protect the company.

The training courses were offered barrier-free for the
first time in the financial year 2021. Therefore, the
rollout was delayed by a few months and the
participation rate was 79 % on the reporting date.

However, we assume that we will at least achieve the
participation rate of the previous year.

Cybersecurity insurance and risk analysis
To protect the company even more and reduce the
potential financial impact of cyber incidents, options
for risk transfer have been explored in detail. After an international call for bids for insurance, the currently 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.

The Siemens cybersecurity organization has also
taken steps to further mitigate risk. These initiatives improve our cyber resilience by helping us better
prepare for possible cyberattacks, respond to them
more effectively, and recover from them more rapidly.

Here are some of the activities that aim to reduce
these risks’ probability and impact:
→ The Cybersecurity Improvement Program (CSIP)
was intended to reduce risk and protect Siemens’
most critical assets by developing and
implementing consistent security solutions. The
CSIP was a four-year program that was concluded
in September 2021.
→ The paramount goal of Enhanced Microsoft
Security (EMS) was to make the Siemens
cybersecurity organization a cybersecurity leader
by integrating native Microsoft technology while
at the same time improving user-friendliness.

This program concluded in fiscal 2021 and was
succeeded by the Zero Trust program.
→ The Zero Trust program will run for two years. It
applies EMS findings to factories, business IT, and
products. The program is based on the principle
of “never trust, always verify” and aims to check
each individual connection in real time and to
permit only trustworthy communication.

The threat landscape is ever-changing and everexpanding, so it’s important to keep a constant eye on it and set up new initiatives and programs to
ensure that we keep adapting and improving.

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1 Computer Emergency Response Team
2 https://vilocify.com/
Building high levels of cybersecurity into
Siemens products and solutions
Siemens products, solutions, and services contain a
significant amount of software and IT-related
components, which in many cases are used in the
context of critical infrastructures and could become
more exposed to cyberthreats. Regulatory and
customer-specific security requirements are
increasing and need to be addressed by Siemens.

Siemens has established a company-wide Product &
Solution Security (PSS) initiative to define guidance
and mandatory requirements for PSS and to
continuously improve their implementation within
the business units. This is managed, among other
things, by means of the so-called PSS Maturity. PSS
Maturity stands for a proprietary, standards-based
maturity model, which shows the extent to which the
established business and design processes are being
expanded and constantly improved with regard to
security activities and requirements. The maturity
model covers several subject areas, which are
measured at various levels and is adaptable to
respective business. Evaluation is performed annually
at the organizational level, the results are discussed
with the unit management, and corresponding
improvement programs are initiated. Continuous
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.

Siemens CERT secures our internal infrastructure,
continuously monitors the cyberthreat landscape for
us, and evaluates the potential impact on the
company. In the event of a security incident, our
experts analyze the cause and initiate countermeasures to minimize harmful impact. Appropriate interest groups (and the authorities, if required) are
also informed.

ProductCERT handles security issues related to
Siemens products and solutions. The Security
Vulnerability Monitoring service has been operating
for more than ten years and is constantly on the
lookout for information on vulnerabilities in software
and hardware components that are built into Siemens
products or used in Siemens’ IT infrastructure. Under
the “Vilocify” 2 brand, this monitoring also lays the
groundwork for external activities that offer the
service to a broader customer base. New security
recommendations are published each month in
tandem with Microsoft Patch Day. Its goal of is to
establish transparency, inspire trust, and improve
planning reliability for customers, who appreciate the
regular Siemens Security Advisory Day. We also work
with external researchers and partners to monitor
and improve our services.

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Protection of personal data
For Siemens, protecting the personal data of our
customers, our people, and partners is an expression
of responsible interaction. As digitalization advances, handling personal data is also becoming an
increasingly important success factor. That’s why
processing personal data in compliance with
applicable data protection laws, including the General
Data Protection Regulation (GDPR), is of utmost
importance to Siemens. Our DEGREE framework
prioritizes handling data carefully – under “E” for
“Ethics.”
Implementing data privacy requirements
within the Group: The data privacy
management system
To put data privacy into action throughout the Group,
Siemens has made it an integral part of the Siemens
compliance system. The company has put a data
privacy management system into place to ensure that
all our business activities comply with data privacy
requirements, and that personal data is processed
transparently for all concerned in compliance with
the applicable law (referral to the Compliance
chapter). COMPLIANCE.

The data privacy management system is composed
of the following components that will effectively
protect the personal data of our customers, business
partners, and our people.

Transparency and data subject rights
We believe transparency about processing is a key
component of effective data protection. Our websites and digital products and solutions include data privacy policy statements that inform users about
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.

Employees committed to data protection
and regular training
Continuously keeping up with data protection
requirements isn’t just a task for IT – it also involves our people and processes. That’s why internal
regulations such as our Business Conduct Guidelines
require every employee to comply with data
protection requirements.

Siemens employees also receive regular trainings on
how to handle personal data that are tailored to
specific functions and target groups. In fiscal 2021,
Siemens developed a new web-based data
protection training program composed of an
“Essentials” level that’s mandatory for all employees
who process personal data as part of their job, and
specialized “Nuggets” designed for specific fields and
target groups.

Data transfers
Transfers of personal data within the Group are
covered by binding internal data protection
regulations: the Siemens Binding Corporate Rules on
Data Protection (BCR). Back in 2014, Siemens was one
of the first companies in Germany to introduce a
mandatory, Group-wide instrument of this kind. With
the BCR, Siemens Group companies around the world
have an obligation to process personal data from data
subjects in the European Union in accordance with
European data protection standards.

Data privacy management system ensures
compliance with data protection requirements throughout all business processes

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Data protection among our suppliers and
partners
A holistic approach to data protection only works if
data protection requirements are consistently
observed and implemented within the Group and also
by our external suppliers and partners. Our suppliers
and partners undergo a preliminary data protection
audit and are required by contract to adhere to data
protection standards.

Data protection in our products and
solutions (privacy by design)
Siemens wants to ensure that its products and
solutions can be used in compliance with all relevant
data protection rules. So for Siemens, privacy by
design means that compliance with the law,
transparency, informational self-determination, data
minimization, and data security are already applied
when functions and services are developed, and that
they’re incorporated into the design. This approach
means that privacy by design is securely integrated
into our product development processes.

Siemens is well aware that using its products and
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.

Inspection
The requirements and measures described in this
section are subject to regular verification, and
Siemens conducts risk-based data protection audits
of its processing activities, products, and services. The focus of data protection audits in fiscal 2021 was on
storing personal data on Siemens IT systems in
compliance with the data protection laws, secure data
exchanges between Siemens IT systems, security of
systems where sensitive personal data is processed
(for example, the IT infrastructure for company
medical offices), and defending against phishing and
similar attacks.

Reporting data protection violations
A fast response is essential in the event of a data
protection violation. This is the only way to ensure
that these violations are terminated swiftly and that
all involved parties both in-house and external (such
as the data subjects and the regulatory authorities)
are informed immediately. To facilitate this, Siemens
has established a global Data Privacy Incident Process
that uses central reporting channels and includes the
relevant stakeholders.

3.4 Cybersecurity and data privacy
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Decarbonization
support the 1.5°C target to fight
global warming
Resource efficiency
achieve circularity and
dematerialization
Our key ambitions:
→ Net zero operations by 2030 in line with SBTi
pathway1
→ Net zero supply chain by 2050, 20 % emissions
reduction by 2030
Additional topics:
→ Joining the EP100, EV100, and RE100
initiative 2
→ Portfolio to support customers in climate
protection
Our key ambitions:
→ Next-level Robust Eco Design for 100 % of relevant
Siemens product families by 2030
→ Natural resource decoupling through increased
purchase of secondary materials for metals and
resins
→ Circularity through waste-to-landfill reduction of
50 % by 2025 and toward zero landfill waste by
2030
Additional topics:
→ Improving energy efficiency by 10 % until
2030
→ Continuous increase in share of material
recycling of total waste
→ Phasing out single-use plastics at our sites
worldwide

Page 73 ends

Environment
Conservation of nature
and resources
1 SBTi: Science-Based Targets initiative.
2 Improving energy productivity (EP), Use of electric vehicles (EV) and use of renewable energy (RE).

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Holistic
environmental protection
As a company with many production facilities and
office locations worldwide, our activities have a wideranging impact on the environment. This impact extends to everything including the production and
conversion of raw materials, preproduction in the
supply chain, our own manufacturing activities, our
product development, use by customers, reuse and
disposal, and utilization of transport services. It is
primarily the result of energy utilization, land use, the emission of airborne pollutants, the emission of
greenhouse gases, and the generation of solid and
liquid waste − all of which can have negative effects
on surface water, groundwater, the soil, biodiversity,
and the climate.

Our main challenges include the reduction of the
environmental impact of product utilization − a
challenge that is already being met to a large extent
by our products, which are characterized by long life
cycles, reparability, reusability, and reliability as well as the minimal, low-emission utilization and/or
consumption of energy, raw materials, auxiliary
materials, and fuel.

In managing the environmental impact of our
business activities, we go beyond mere compliance
with the applicable statutory requirements. We
reconcile economic, environmental, and social
requirements and honor our responsibility to society.

Our forward-looking commitment strengthens our
customers’ competitiveness and lays the foundation
for our future success. It includes the identification
and active management − often in collaboration with
our business partners − of the environmental impact
of all our activities along the entire value chain.

Siemens’ activities are based on its own environmental
guidelines. A member of Siemens’ Managing Board
is appointed to ensure their implementation. The
responsibility for implementing our environmental
principles is defined in the EHS Principles, a Managing Board guideline. Our Global EHS board of experts
develops environmental protection measures and
programs and, together with our Sustainability Board,
advises the Managing Board member responsible for
environmental protection. The EHS experts and the
sustainability officers in our business areas help line managers implement our environmental guidelines
and programs. The company’s environmental risks
and opportunities are assessed in terms of uniform
criteria and reported to the Siemens Enterprise Risk
Management Team in Siemens AG’s Environmental
Council, which comprises the environmental experts
of the company’s businesses and regional
organizations as well as experts in corporate
governance, environmental protection, supply chain
management, sustainability, real estate management,
and insurance. Operational environmental
management is based on the ISO 14001 and
50001 norms for energy-intensive units and on the
IEC 62430 norm for the environmentally compatible
design of solutions, services, and products that are
implemented via our own binding standard.

Our environmental programs are embedded in our
DEGREE sustainability framework and focus on the
reduction of greenhouse gas emissions and increasing
resource efficiency along the entire value chain.

Through our commitment to the Science Based
Targets Initiative, we are supporting the achievement
of the 1.5-degree Celsius target set by the Paris
Climate Agreement, while Eco Efficiency @ Siemens,
our resource efficiency program, is helping reduce all
our environmental impacts by fostering the circular
economy and the general dematerialization of
business processes.

DEGREE defines the framework for ambitious
environmental programs.

Holistic environmental protection
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In joining the Science Based Targets Initiative,
Siemens has committed itself to further reducing all
greenhouse gas emissions generated along the entire
value chain. Our goal is to reduce the CO2 emissions
from our business operations to the point that our
business segments’ contribution is compatible with
the 1.5-degree Celsius target in terms of the
recognized climate models. Measures at our business
operations − such as the electrification of our vehicle fleet, the conversion to green electricity, and building optimization − as well as in the supply chain and the
expanded value chain will play a key role in target
achievement. The related ambitions are bundled under
the “D“ for decarbonization in our DEGREE framework.

Eco Efficiency @ Siemens focuses on Robust Eco
Design − the design of products, services, and
solutions to meet strict standards of environmental
compatibility. Our procurement and production
activities also consider resource efficiency, addressing the twin goals of increasing the share of secondary
materials in plastics and metals, and continuously
reducing the share of materials which pose potential
risks to health and the environment. Although the
share of renewable energies is now high and will
increase further, we aim to additionally increase
energy efficiency in our operations and offices. We
have also undertaken fostering the circular economy
and dematerialization by further reducing landfill
waste and promoting the elimination of waste
materials. Our products’ environmental aspects will
also be included in our customer feedback system in
order to continuously generate and implement
feedback regarding their Robust Eco Design. Launched
this fiscal year, Eco Efficiency @ Siemens will run until 2030. Time- limited environmental initiatives − such
as projects in the areas of water, biodiversity, and
packaging − round out our environmental program.

In a rapidly expanding global economy characterized
by ongoing urbanization and world population
growth, the importance of environmental protection
will increase. Since the start of the EU Green Deal, at the very latest, it has been obvious that the creation
of a greenhouse-gas-neutral planet will require a
fundamental structural transformation of the market
economy. The term “circular economy” defines a
framework for moving from a linear, resourceintensive economy to a circular, resource-conserving form of value creation and for shaping such value
creation accordingly. It is precisely for this reason that we have chosen to formulate a key element of the “R”
for Resource Efficiency in our DEGREE framework as
“the achievement of a circular economy and
dematerialization”: we want to emphasize the
compensation and rebound effects that are necessary
for our new circular business model and innovative
processes.

Responsible Product
Development Clean Supply Chain
Efficient Own
Operations
Eco Efficiency @ Siemens
Products and solutions are at the core
of business. Evaluating our portfolio
and applying an eco-design approach
to relevant product families supports
us in selling eco-efficient products
and solutions.

A clean supply chain is central on the
path to decoupling natural resource
use. Which is why we will be sourcing
more secondary materials and take
continuous action to initiate the
replacement of regulated substances
according to IEC 62474.

Efficiently managing our own
production sites and offices
continues to be key in our
environmental approach, particularly
by enhancing waste management
practices and using clean energy
effectively.

Holistic environmental protection
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We have pledged to make an important contribution
to decarbonizing the global economy, which scientists
say must be done well before the end of the
21st century. We will achieve this goal with the aid of an appropriate governance structure, including
strategy and risk management, and by acting in
accordance with the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD).

In addition, our products and solutions make an
important contribution to decarbonization by our
customers, while also presenting a business
opportunity for Siemens.

We have strengthened our climate protection strategy
with our validated 1.5 degree Celsius Science Based
Target and by joining the initiatives RE100 (COMPLETE
CONVERSION TO GREEN ELECTRICITY), EV100 (CONVERSION
OF THE VEHICLE FLEET TO ELECTRIC VEHICLES), and EP100
(NET- ZERO EMISSION BUILDINGS). As key elements of our
management approach, the reduction of CO2
emissions in the company’s own operations is
embedded in the Long-term Incentive (LTI)
compensation component of the senior
management of Siemens (excluding SHS), and our
business units are charged with the responsibility of
reducing their respective emissions. REFERENCE TO

SUSTAINABILITY IN MANAGEMENT COMPENSATION
Our approaches to reducing emissions target the
entire value chain. During the use phase of our
products, the main source of CO2 emissions is the use
of electrical energy. Consequently, the key levers for
lowering emissions during the product use phase are
to boost energy efficiency and promote digitalization.

CO2 savings are calculated and reported for the
products of the Siemens Environmental Portfolio.

Our binding climate protection targets and measures
are grouped within the “D” (Decarbonization) category
of our DEGREE framework for sustainability at Siemens.

Transparency on greenhouse gas
emissions
We report our greenhouse gas emissions on the basis
of the Greenhouse Gas Protocol corporate standard
published by the World Resources Institute (WRI) and
the World Business Council for Sustainable
Development (WBCSD). Direct greenhouse gas
emissions (Scope 1) arise from sources that are in the
company’s possession or under its control. Indirect
greenhouse gas emissions (Scope 2) arise from the
use of purchased electricity and district heating. Since fiscal 2016, we have also reported upstream Scope 3
emissions, arising within our supply chain, from
sources such as business travel, capital goods, fuels,
and energy-relevant activities and shipments. Scope 3
emissions from our supply chain have been calculated
using a cross-regional, macroeconomic input- output
model based on our volume of purchased goods and
services. We are reporting downstream Scope 3
emissions, including those arising from the use of our
products, our investments, employee commuting,
and work-from-home activities, for the first time
in 2021.
– Our pledge: We are making a contribution to
limiting global warming to 1.5 degrees Celsius
– Our targets: CO2-neutral business operations
by 2030 and CO2-neutral supply chain by 2050
– Our path: Continuous reduction of emissions
from business operations, collaboration with
suppliers, and a portfolio that helps our
customers protect the environment

4.1 Climate action

4.1 Climate action
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EXHIBIT A
320
Climate protection targets within the
value chain
Greenhouse gas emissions (Siemens AG)
Fiscal year
(in 1,000 metric tons of CO2 equivalents) 2021 2020 1
Scope 1 386 424
Scope 22 208 253
Sum Scope 1 and 2 595 678
Scope 3
Purchases goods & services 8,813 8,607
Capital goods 381 419
Fuel and energy-related activities 263 282
Waste in operations 24 28
Transportation upstream 797 740
Business travel 63 126
Employee Commuting 3 94 94
Sum Scope 3 Upstream 10,435 10,296
Use of sold products 453,350 483,813
Investments 5,486 13,582
Sum Scope 3 downstream 458,836 497,395
Total Scope 3 469,271 507,691
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 chapter REPORTING METHOD.
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.

Thus, our former “Carbon Neutral 2030” program on
the one hand has been subsumed into our Science
Based Target and, on the other hand, will be continued
under the title “Net Zero 2030” for our business
operations as part of our DEGREE framework for
sustainability. By committing to the Science Based
Targets, we have pledged to reduce the CO2 emissions
from our own business operations by 50 % from 2019
by the year 2030. We will then offset the remaining
CO2 emissions with high-quality CO2 certificates to
achieve our “Net Zero 2030” target. At Siemens
(excluding SHS), the integration of CO2 reduction into
the Long-term Incentive components of management
compensation strengthens the responsibility of our
operating business units. We have also issued an
internal guideline defining the first parameters for
the subsequently necessary procurement of CO2
certificates with an emphasis on high-quality CO2
certificates meeting established standards and
making a positive contribution to the achievement of
the Sustainable Development Goals, including those
that are not related to climate protection.

By joining the RE100, we have pledged to convert our
electricity consumption completely to electricity from
renewable sources by the year 2030 at the latest.

Green power currently accounts for 78 % of our power
consumption.

As part of our commitment to EV100, we are striving
to convert our motor vehicle fleet completely to
electric vehicles by the year 2030.

Our membership in EP100 bolsters our commitment
to only owning or leasing buildings with no net CO2
emissions by the year 2030.

With regard to Scope 3 emissions, we are particularly
focused on reducing emissions within our supply
chain. Therefore, the goal of Siemens (excluding SHS)
is to reduce our supply chain emissions by 20 % by
the year 2030 and eliminate them completely by the
year 2050. These targets are likewise part of our
DEGREE framework.

Siemens SBTi commitment
By joining the Science Based Targets Initiative, Siemens has pledged to reduce emissions from its own operations
(Scope 1 and 2) by 50 % by the year 2030 and its Scope 3 emissions (upstream and downstream) by 15 % compared
to 2019. These targets evince our commitment to make a
contribution to limiting global warming to 1.5 degrees
Celsius and keeping climate change in check.

By extending the “Carbon-Neutral 2030” program that
was first launched in 2015, our new Science Based Target now applies to the entire value chain. Moreover, we have pledged to speed up the physical reduction of CO2
emissions in our own business operations.

4.1 Climate action
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321
“Net Zero 2030”: Moving toward CO2
neutrality
Siemens launched the global “CO2-neutral” program
aimed at its own business operations in September
2015. Under this program, we reduced the carbon
footprint of our own operations by 54 % between
2014 and 2020 (as reported last year, including
Siemens Energy), thus achieving our intermediate
target last year.

Compared to the fiscal 2020, we reduced our Scope
1 and Scope 2 emissions by 83 thousand metric tons
of CO2 or 12 % in 2021. Scope 1 and 2 emissions
decreased by 36 % since fiscal 2019, contributing to
our SBTi commitment. This reduction is due primarily
to the continued implementation of our energy
procurement policies, as well as a number of other
measures and initiatives, which are briefly described
in the following.

Use of renewable energy
Even before we joined the RE100 Initiative, we
worked continuously to increase the share of
electricity consumption represented by electricity
from renewable sources. Our goal is to use 100 %
green electricity by the year 2030 at the latest. In
fiscal 2021, more than 78 % of our company-wide
purchased electricity consisted of electricity from
renewable sources. Thus, we reduced emissions by a
total of 518 thousand metric tons of CO2 per year
compared to the average electricity mix.

Due to regulatory restrictions in countries such as
Indonesia, Peru, and Ecuador, the complete
conversion to green electricity is not yet possible at
this time. Through our membership in RE100, we are
attempting to have these regulations amended to
make this conversion possible.

In purchasing green electricity, we follow the
purchasing guidelines of the WWF’s “Next Generation
Green Electricity” initiative.

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
new Siemens campus in Erlangen derives the majority
of the green energy it requires from wind farms,
which will lose access to subsidies under the German
Renewable Energy Act (EEG) starting in 2021.

The use of biogas is another component of our
decarbonization strategy. By using biogas, we have
been able to reduce our annual emissions by

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.
926
701 595
2030
0 2021
– 36 %3
Emission reduction as part of the “Net Zero 2030”
program
(in kt CO2 for Siemens AG)1
FY
2019 2
FY
2020
FY
2021
FY
2030

4.1 Climate action
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Reduction of motor vehicle fleet
emissions
We are working to reduce the emissions from our
motor vehicle fleet, which comprises approximately
43,000 vehicles, and are striving to electrify it
completely by the year 2030 as part of our EV100
commitment. These emissions totaled approximately
194 thousand metric tons of CO2 in fiscal 2021.

By issuing a new motor vehicle fleet guideline and
expanding our charging infrastructure to currently
1,472 charging points, we have increased the number
of exclusively electric vehicles to 656 and the number
of hybrid vehicles to 2,719. Thus, currently around
8 % of our vehicles are pure electric vehicles or at least hybrid vehicles. We are striving to increase this
proportion substantially in the coming years on the
way to fulfilling our EV100 pledge.

Another component of our strategy to reduce fleet
emissions is the introduction of a flexible company
car model with battery-electric and hybrid vehicles
for senior managers. With the aid of an app, senior
managers can switch their company car at any time,
change it to suit their needs, or even temporarily
suspend the use of their company car entirely.

Reduction of building emissions
With regard to building emissions, we want to own
or lease only buildings with no net CO2 emissions by
the year 2030 as part of our EP100 pledge. We intend
to achieve this goal by means of various measures
such as building new CO2-neutral buildings,
modernizing existing buildings, and leasing office
space with the lowest possible emissions. When all
other measures have been exhausted, we will
purchase high-quality CO2 certificates to offset the
remaining emissions. Currently, 32 Siemens locations
have no net CO2 emissions during regular operations.

We have issued a new guideline defining principles
for the CO2-neutral operation of new buildings and
setting maximum permissible emissions in the supply
chain and construction activities.

In 2021, the Nuremberg Chamber of Industry and
Commerce for Middle Franconia awarded its
“Sustainable Business Parks and Commercial Buildings”
award to the Siemens Erlangen Campus. It was the
only project in Erlangen and only one of three in the
region to receive this award, by which the CIC’s expert jury recognized the campus’s “holistic sustainability
concept with extensive employee offerings and
mobility concept, as well as the hybrid wood design.”
In particular, the space-efficient design and greening
of facades and roofs on the campus grounds were
singled out for recognition.

The headquarters of Siemens Smart Infrastructure in
Zug (Switzerland) has been under renovation since
May 2021 with the goal of converting it to a CO2-
neutral site by the year 2023. Investments of approx.
€63 million are planned to achieve this goal.

Siemens Mobility Austria has installed a 500-kWp
photovoltaics plant at its Vienna-Simmering location,
which will generate enough electricity to power
110 households or 240 electric cars for a full year.

Under our New Normal Working Model, we
permanently allow employees to work remotely for
two to three days per week whenever possible. This
new policy will reduce emissions from the use of our
buildings and from daily commutes, while increasing
the emissions generated by people working from
home. We calculate the total emissions generated in
Category 3.7 “Employee Commuting” as 94 thousand
metric tons of CO2 and the emissions caused by
working from home as 22 thousand metric tons of
CO2 (use of IT equipment).

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323
Use of an internal CO2 price
In the United Kingdom and Brazil, we currently use
an internal CO2 price to manage our decarbonization
activities. In the United Kingdom, we charged a price
of GBP 31 per metric ton of CO2, using a methodology
based on the recommendations of the “High- Level
Commission on Carbon Pricing.” Most of the proceeds
were employed to support decarbonization activities
in the area of heating systems, including the
installation of a heat pump to replace a gas-fired
boiler at our factory in Hebburn. In fiscal 2022, the
price will rise to GBP 40 per metric ton in order to
support the electrification of the motor vehicle fleet.

In Brazil, USD 40 per metric ton of CO2 is charged and
the proceeds are used to finance decarbonization
measures.

Upstream emissions
Our upstream emissions are approximately

10.4 million metric tons of CO2 equivalents (million
metric tons CO2e) and are therefore considerably
higher than the emissions in our own business
operations. This is due to the fact that the operations in our supply chain are usually more energy-intensive
than our own, primarily because they process raw
materials. In our supply chain, as part of our upstream emissions, we have set the goal for Siemens
(excluding SHS) of reducing the CO2 emissions
generated in our supply chain by 20 % from 2020 by
the year 2030 and in the long term of having a CO2-
neutral supply chain by 2050. A detailed description
of our efforts to this end is provided in the chapter
Supply Chain. SUPPLY CHAIN.

CO2 emissions arising in the use phase of
our products
We offer our customers highly efficient and long-lived
products that fulfill their function for a long period of time and are especially dependent on electricity for
their operation due to our strategic focus on
electrification, automation, and digitalization.

Therefore, emissions from the use phase of our
products will continuously decrease over time due to
new product generations as well as the continuous
conversion to renewable energy in the users’ markets.

The use of our products sold in fiscal 2021 will cause
emissions of 453.4 million metric tons of CO2 in the
operations of our customers during their anticipated
useful lives, mainly due to the electricity consumed
and the long service lives, given that the emissions
to be generated over the entire assumed useful life
must be reported in the year of sale according to the
Greenhouse Gas Protocol. We calculate these
emissions by application of the global power mix
emissions factor of the International Energy Agency
(IEA). As part of our Science Based Targets, we have
pledged to reduce the Scope 3 emissions generated
during the use phase of our products (Scope 3.11
“Use Phase Emissions”) by 15 % from 2019 by the
year 2030.

Our electric motors, which are highly efficient and
have very long useful lives, are the main source of
emissions in the use phase.

The use of trains powered by green hydrogen instead
of diesel is one example for the reduction of emissions in the use phase of our products. In the joint funding
project “H2goesRail,” the German national railway
operator Deutsche Bahn and Siemens plan to deploy
a train that can be powered by hydrogen (Mireo Plus H)
in the Tübingen region in 2024, which will save
approx. 330 metric tons of CO2 per year when green
hydrogen is used.

In manufacturing operations, the use of “SIMATIC
Energy Manager” helps our customers visualize their
energy consumption, assess potential energy efficiency
savings, and compare key performance indicators
across production facilities and factories. As a result, both energy costs and CO2 emissions can be reduced.

4.1 Climate action
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324
Siemens Environmental Portfolio for
climate-conscious product use
Our Environmental Portfolio is our biggest contribution to mitigating climate change. It comprises products,
systems, solutions, and services (Environmental
Portfolio elements) that meet one of the selection
criteria defined 15 years ago when we began to collect
data on the Environmental Portfolio, such as energy
efficiency above a defined threshold value and the use
of energy from renewable sources.

Due to portfolio changes in the direction of
electrification, automation, and digitalization, not all portfolio elements that make a positive contribution
to decarbonization, such as our digitalization portfolio and our energy-efficient electric motors, meet the
currently applied selection criteria for the
Environmental Portfolio. We are also preparing for
the introduction of the EU Taxonomy, which will
prescribe a new classification system for sustainable
business activities. We therefore plan to revise our
Environmental Portfolio in the coming fiscal year to
reflect these changed framework conditions. The
savings are calculated by comparison with reference
solutions known as baselines. The Environmental
Portfolio elements mitigate adverse environmental
impacts and reduce emissions of CO2 and other
greenhouse gases that are mainly responsible for
climate change (CO2 emissions).

The Environmental Portfolio technologies of Siemens
that make the biggest contribution to the overall
reduction of our customers’ CO2 emissions are
components for smart and distributed power grids,
frequency converters, rail transportation of
passengers and goods, and building technology.

The revenues generated on the Siemens Environmental
Portfolio amounted to €19.1 billion in the past fiscal
year. Thus, our Environmental Portfolio accounted for
31 % of our total revenues. In addition, our newly
installed Environmental Portfolio elements helped our
customers reduce their CO2 emissions by another

8.4 million metric tons in fiscal 2021. Including all the Environmental Portfolio elements in use by our
customers, we helped our customers reduce their CO2
emissions by 87.5 million metric tons in fiscal 2021.

CO2 emission reduction at our customers therefore
increased compared to the portfolio-adjusted value of

80.4 million metric tons in fiscal 2020.

Revenue generated with
the Siemens Environmental
Portfolio (continuing operations, in € billion)
Greenhouse gas reductions in
the reporting year through
Environmental Portfolio
products in operation at our
customers’ sites (continuing
operations, in millions of
metric tons)
Greenhouse gas reductions in
the reporting year at our
customers through elements of
the Environmental Portfolio
newly installed in the reporting
year (continuing operations, in
millions of metric tons)
Results of the Environmental Portfolio

19.1 8.4

87.5 Fiscal 2021
Emissions from the value chain and savings
by the Environmental Portfolio
(in millions of metric tons of CO2)
Upstream
emissions
Own
operations
Cradle to gate Use phase and
investments
Savings from
Environmental
Portfolio1

10.4 0.6

87.5 11.0
458.8
1 Total annual savings of products installed since 2002 by our customers and still in use in fiscal 2021.
∼ 42x

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Just as a declining emissions factor for global power
generation will reduce our customers’ emissions
(Scope 3.11 “Use Phase Emissions”) as a result of the
rising share of renewable energy, it will also lead to
lower reductions of our customers’ CO2 emissions
even with comparable increases in energy efficiency.

More detailed information on our Environmental
Portfolio reporting principles is presented in the Annex.

Investment-related emissions
The financing solutions provided by Siemens
Financial Services (SFS) enable infrastructure projects and technology that make a significant contribution
to decarbonization. Specifically, SFS provides equity
and debt financing solutions to support projects with
a total installed capacity of more than 25,000 MW of
wind energy, 12,000 MW of solar energy, and
480 MW of other renewable energy production
(including battery storage) throughout the world.

To the extent that SFS committed to finance fossil
fuel generation projects in the past fiscal year, the
SFS financing contributions correspond to total
emissions of approx. 5.5 million metric tons of CO2
over the term of the projects (Scope 3.15
“Investments”).

Shaping climate policy frameworks
Beyond its own measures and activities, Siemens
participates in committees and associations where
it advocates further changes in the climate policy
frameworks to support the following aspects:
→ Using energy as efficiently as possible, advancing
electrification, and increasing the share of energy
from renewable sources,
→ Accelerating the decarbonization of all sectors by
means of sector coupling, among other measures,
→ Redesigning energy markets to ensure adequate
investments in sustainable, secure, and efficient
energy systems,
→ Accelerating the integration of highly flexible
technologies such as energy storage batteries, in
order to integrate renewable energy while also
assuring system stability,
→ Implementing a CO2 price in order to integrate
the actual costs associated with CO2 emissions
into business decisions. It should be high enough
to set in motion a shift to low-carbon technologies
in line with the pledges made in the Paris
Agreement (COP21).

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The “R” for Resource Efficiency indicates that an
environmentally conscious use of limited resources
is an integral part of the Siemens DEGREE framework.

And the Efficient Own Operations category of the
Eco Efficiency @ Siemens environmental program
also situates dematerialization and the circular
economy within the operational context of improving
resource conservation. The focus here is on improving
energy efficiency and reducing the environmental
impact of our waste.

Decarbonization and dematerialization necessitate
using electricity from renewable sources, because
extracting energy from fossil sources inevitably also
means consuming finite resources and generating
environmentally harmful emissions. In this regard,
exactly what the energy is used for is not a critical
concern. For that reason, we no longer distinguish
between electricity and heat – we consider both
forms of energy together when it comes to improving
efficiency. And since supplying all our locations’
energy needs from renewable sources will also have
implications for biodiversity and resource
consumption, we’ve set ourselves the goal of
improving the energy efficiency of our production
sites and offices 10 % from the fiscal 2021 figure
by 2030.

Siemens groups its principal strategies, targets, and
measures for conserving resources and promoting a
circular economy under the letter “R” for “Resource
Efficiency” in its DEGREE sustainability framework.

That also includes the ambition of reducing landfill
waste from operations 50 % from the 2021 figure by
2025 and staying on track to reduce landfill waste
quantities further by 2030. We also want to increase
the percentage of waste that can be recovered or
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.

These targets are defined for Siemens excluding SHS.

Alongside the goals of the Eco Efficiency @ Siemens
program, we are actively pursuing resource
conservation in other areas as well: Further
important areas of environmental protection at
Siemens AG include recognizing and mitigating water
risks, reducing emissions of volatile organic
compounds (VOCs), and improving biodiversity.

Efficiently managing global protection of
the environment and resources
The global goals of the Eco Efficiency @ Siemens
program are converted to local targets and measures
with the aid of environmental and energy management system. All our sites have an environmental management system in place. At least 185 of our
locations, 180 of which have been audited by external
auditors, now have environmental management
systems that comply with ISO 14001. Another
27 Siemens locations have implemented energy
management systems compliant with ISO 50001.

To meet our responsibility to the environment, we not
only look at our own areas of action, but also assess
energy efficiency and waste reduction in the supply
chain for energy-intensive products.
– Recorded baseline values for the new
Eco Efficiency @ Siemens environmental
program and the DEGREE framework
– Equal treatment of primary and secondary
energy in future calculation of energy
efficiency
– Introduction of new waste categories such as
materially recycled waste and landfill waste
to support the improvement of the circular
economy

4.2 Conserving resources

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We take a holistic approach to air pollution by
analyzing our emissions locally at our office and
production sites, and also emissions of volatile
organic compounds (VOCs) and ozone-depleting
substances (ODSs) at our most important sites. Our
internal environmental standard has now
implemented these principles on a binding basis;
some of the terms go above and beyond the
requirements of local law. For all our sites that have
significant energy consumption, we have explored
the possibility of local power generation to improve
energy efficiency.

Water is one of humanity’s most important resources.

So for some years now, our company has been
analyzing water scarcity, water pollution, climate
change, and the evolution of flooding and
precipitation patterns at our sites, and we include the results in our business decisions, such as when
choosing a site or adopting precautionary measures.

Determining base values for the
Eco Efficiency @ Siemens program in
fiscal 2021
Following the successful conclusion of the Serve the
Environment program, fiscal 2021 represents the
base year for the new Eco Efficiency @ Siemens
program for Siemens without SHS. The sum of
primary and secondary energy represents the base
figure for calculating future energy efficiency. The
landfill waste from fiscal 2021 will set the base figure for assessing our reduction of this waste in the
coming years.

Energy use reduced
The use of primary energy decreased 3 % in fiscal 2021.

Consumption of natural gas and liquid petroleum gas
also decreased from the previous year; the reduction
here was also 3 %. Heating needs, on the other hand,
rose 22 %. Only small amounts of other fossil fuels
were consumed. Our electricity consumption
decreased again slightly and is now 5,329 million
gigajoules. In all, this yields a reduction of 7 % in
secondary energy.

To determine energy consumption by our company
vehicles, we calculated the consumption of all cars
used by employees and for services, as well as our
trucks. In fiscal 2021 the company fleet consumed
about 2.66 million gigajoules in fuel. The figure from
the previous year was 2.53 million gigajoules. The
increase of 5 % can be traced back to the resumption
of business travel as a consequence of the COVID-19
pandemic.

Total energy consumption of Siemens without SHS in
fiscal 2021 came to 7,373 million gigajoules. This
consumption will provide the basis for calculating the
energy efficiency of the Eco Efficiency @ Siemens
program.

Emissions of air pollutants
In addition to the greenhouse gas emissions addressed
in the chapter on climate protection, Siemens also
gathers data on other emissions that result from our
business activities and that are of great significance
for environmental protection. These “volatile organic
compounds” are used as solvents in paints and
adhesives, and for impregnation and surface cleaning
processes. They are precursors of ground-level ozone,
and thus contribute to what is known as “summer
smog.” Siemens also monitors the use of substances
that can potentially harm the ozone layer, to ensure
compliance with the international Montreal Protocol
on Substances that Deplete the Ozone Layer, as well
as various national laws.

We reduced our emissions of volatile organic
compounds by another 31 % from the previous year,
to 253 metric tons. This decline can be almost
exclusively attributed to the sale of gear manufacturer Flender. Total emissions of ozone-depleting
substances decreased by 0.05 metric tons of R11
equivalent and now come to 0.03 (R11 is one of the
many substances that produce ODSs).

We determined the quantity of nitrogen oxides in our
relevant thermal processes with the aid of
computational procedures, assuming typical

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Atmospheric pollutant emissions
Fiscal year
(in metric tons) 2021 2020
Volatile organic compounds 253 368
Ozone-depleting substances in metric tons
of R11 equivalent¹ 0.030 0.085
1 The R11 equivalent is a measure of ozone depletion potential. combustion conditions. For fiscal 2021 this yielded
a figure of 93 metric tons for our environmentally
relevant sites, compared to 94 metric tons the year
before. This figure includes nitrogen oxides that are
released in burning the fuels listed under primary
energy.

Efficient waste management
The environmental relevance of waste depends on
the type of waste and the method used for its disposal.

We distinguish between hazardous and nonhazardous waste, and between construction and 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
further subdivided into groups of waste for recycling,
thermal recovery, landfill, and other disposal. These
new categories have been implemented for Siemens,
excluding SHS. Waste flows from construction or
demolition work are reported separately because
these types of waste come about independently from
production.

Waste
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.

Natural gas/liquid petroleum gas Fuel oil, coal, gasoline/diesel Electricity District heating Fiscal 2020 Fiscal 2021 Fiscal 2020 Fiscal 2021 Fiscal 2020 Fiscal 2021 Fiscal 2020 Fiscal 2021 3,199 3,118 62 5,329 1,337 1 6,036 1 70 1 1,097 1
Primary energy
(1,000 gigajoules)
Secondary energy
(1,000 gigajoules)
Total Total
Fiscal 2020 Fiscal 2020
3,283 1 6,665
Fiscal 2021 Fiscal 2021
3,198 7,133 1
12 Hazardous
waste
235
Nonhazardous
waste
Fiscal 2021
276
Total
28 Construction
waste
Waste
(in 1,000 metric tons)

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Water risk analysis
The aim of our water strategy is to minimize the
adverse local effects of our water consumption and
use. Here we take account of such factors as water
scarcity, water pollution, flooding, and the
consequences of climate change. For the purpose, we
analyzed our environmentally relevant locations
using the Aqueduct Water Risk Atlas from the World
Resources Institute (WRI). With the aid of additional
internal analytical systems, Siemens assesses the risks that result on the local level from our sites’ activities and sets them in relation to regional water risks.

Locations found to have a high risk in this assessment
must set targets to reduce it. In fiscal 2021, 84 % of
our locations had implemented this water strategy.

The data shown do not include SHS. The percentage
decreased from fiscal 2020 because additional
locations were included in our environmental
reporting. As part of our regular review of all water
risk assessments, the water risk analyses for these
newly included sites will be performed in the coming
fiscal year, and the Siemens water strategy will be put into action there.

Our total water consumption decreased 2 % from the
previous year and is now 15.05 million m3. The largest
share of our water consumption is for cooling
processes. These processes leave the water’s chemical
quality largely unchanged, so that the water can be
returned directly to the receiving water body or
groundwater.

Year-on-year, nonhazardous waste decreased by 9 %.

The volume of hazardous waste decreased by 36 %
compared to the previous year. In both cases this
decline can be almost exclusively attributed to the
sale of gear manufacturer Flender. Construction
waste decreased 76 % over the same period. The
sharp decrease in construction waste is mainly the
consequence of the partial completion of the Siemens
Erlangen Campus. In all, total waste was reduced 31 %
from fiscal 2020.

The quantity of landfill waste in waste for disposal
came to 7 kt in fiscal 2021 for Siemens without SHS.

This is the base value for our ambition under DEGREE
and Eco Efficiency @ Siemens of reducing our landfill
waste 50 % from the current fiscal year’s figure by 2025.

Recycling and recovery
The amount of materials recycled from waste as a
percentage of total waste came to 83 % for Siemens
without SHS. All figures exclude construction waste.

We plan to increase the percentage of recycled waste
in the years to come. The quantity of recycled waste
from fiscal 2021 will provide the base figure for this
purpose.

The rate of recycling and thermal recovery remained
almost unchanged, and is now 92 %.
1 Without Siemens Healthineers
Recycling and Recovery
(in %)
93 Total
92 Total
Share of recycling and
recovery in total waste1
Fiscal 2020 Fiscal 2021
1 Excluding construction waste.
84%1
of our locations have implemented
a water strategy

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Water withdrawal
Fiscal year
(in million cubic meters) 2021 2020
Other water withdrawal 4.54 5.07
Cooling water (flows heated,
but chemically unchanged back
into the receiving water system) 10.51 10.26
Total 15.05 15.33
Initiatives for greater biodiversity
Biodiversity is the variability among all living
organisms from all sources and all the ecological
complexes of which they form a part. When
biodiversity declines, ecosystems and their benefits
are threatened, which poses a threat to society’s wellbeing and has an adverse impact on human health.

Biodiversity is an important aspect of Siemens’
environmental management, and many locations are
pursuing measures to promote biodiversity. To further
raise awareness of aspects of biodiversity, in the past fiscal year experts prepared several video
presentations for our people, our people prepared
and distributed internal informational materials for
Biodiversity and Environment Day, our people were
encouraged to take action on their own, and a
corporate biodiversity site was set up on the intranet.

The new site includes information and contacts for
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 insectfriendly meadows, supporting birds’ nesting, planting and preserving forests, and preserving existing
biodiversity in planning and carrying out construction
work, as we have done for instance at our new
campus in Erlangen.

Incidents relevant to the environment,
and fines
Siemens uses a worldwide reporting system to
document environmental incidents. In fiscal 2021 we
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.

The total volume of wastewater, excluding chemically
unchanged cooling water, came to 4.6 million m3 in
fiscal 2021. This is equivalent to a decrease of 9.6 %
from fiscal 2020. Most of the wastewater, excluding
chemically unchanged cooling water, is sewage. The
reduction in sewage wastewater can be partially
attributed to the sale of gear manufacturer Flender.

Additionally, the sale caused a substantial reduction
of cooling water discharged as wastewater.

10.51 Cooling water
(flows back heated but
chemically unchanged into
the receiving water)

4.55 Total wastewater
without chemically
unchanged cooling
water
Wastewater
(in million cubic meters)
2021

15.06 total

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Environmentally friendly product design
on the basis of established standards
The rising expectations of society for corporate
environmental responsibility have led to stricter
legislation, but also increasing demands on the part
of our customers and investors. This trend has also
increased the strategic importance of eco design,
meaning the consideration of environmental aspects
in the design of products, services, and solutions
throughout the life cycle.
specifications for the environmentally friendly design
of the products and solutions of its business units.

The implementation of this standard is the
responsibility of the heads of the operating business
units and is an integral part of the annual
environmental review according to ISO 14001.

In the development of our eco design approach, we
focus mainly on increasing the resource productivity
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
increasing the efficiency of manufacturing and
infrastructure solutions as the most effective lever for reducing environmental impacts. Other strategic
aspects of our environmentally friendly product
design relate to the specification of requirements for
the production and material composition of products
and solutions aimed at improving recyclability in
order to continuously optimize material efficiency
over the entire product 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
assessments and environmental product declarations,
and by paying greater attention to service and
recycling aspects in designing our products. Our
ambition is to apply the extended “Robust Eco Design”
approach to all products, services, and solutions by
the year 2030 in order to increase the number of lifecycle assessments and environmental product declarations, raise the proportion of secondary
materials, and improve recyclability. Siemens
therefore also espouses the European Green Deal, the
goal of which is to transition to a modern, resourceefficient, and competitive economy. The European Commission presented an action plan for the circular
– Robust Eco Design to increase resource
efficiency throughout the life cycle
– Extensive revision of the Siemens Standard
for the environmentally friendly design of
products and solutions
– Clear commitment to material efficiency by
increasing the proportion of secondary raw
materials, reducing substances of very high
concern, and paying attention to recyclability
in product design

4.3 Product stewardship
The environmental impacts of products, services, and
solutions are largely decided already in the
specification of design requirements. Fundamental
eco design approaches at Siemens include increased
resource efficiency and decarbonization in production,
increased productivity and efficiency during use, and
product construction designed to improve recyclability.

In accordance with the international standard
IEC 62430, Siemens enforces its own global
environmental standard, which comprises binding
We focus on resource efficiency
over a product’s entire life cycle

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economy in March 2020. This document shows how
products can be designed more sustainably, supports
circular economy processes and sustainable consumer
behavior, and also aims to prevent waste and keep
resources in circulation for as long as possible by
means of recycling. The EU has enacted a ban on
disposable plastic products with the goal of reducing
waste quantities in the medium-term future. As of
July 2021, the law prohibits the production of certain
disposable plastic products in the EU. These issues
have now been taken up by Siemens and are being
addressed in a dedicated Green Deal project.

Exercising product stewardship with
DEGREE and the environmental program
Eco Efficiency @ Siemens
Toward the goal of product stewardship as it relates
to environmental protection, the comprehensive
environmental program Eco Efficiency @ Siemens
sets particular priorities in the categories of “Robust Eco-Design” and “Clean Supply Chain.”
The principal idea behind “Robust Eco Design” is to
assess and improve the environmental impacts of our
products, solutions, and services on a sound,
comprehensive basis. To this end, the following
criteria are applied systematically:
→ Use perspective: In portfolio and product lifecycle management, the environmental performance of relevant product families is
assessed from the perspective of use, the market,
and customers by incorporating questions
regarding environmental requirements for
homogeneous product families into customer
surveys, among other steps.
→ Solid foundation: The quantitative assessment of
the environmental impacts of relevant product
families is applied as the basis for eco design
characteristics and environmental product
declarations.
→ Materials reduction: The principles of materials
reduction such as attention to repairability,
reusability, and recyclability are reflected in the
requirement specifications.

When a product, service, or solution meets all the
criteria, it is deemed to fulfill the principles of “Robust Eco Design” (RED), meaning a design that fulfills both
business and environmental requirements. To this
end, products are assigned to technically
homogeneous product families in the business units
and checked against the RED criteria. A given
homogeneous product family could meet the criteria
in full or in part or not at all. If a criterion is completely fulfilled, all revenue generated on the product is
attributed to fulfillment; if it is only partially fulfilled, only 25 % of revenue is classified as such; if it is not fulfilled at all, the corresponding revenue is
disregarded. Based on the degrees of fulfillment of
the individual RED criteria, the average value is
applied as the RED implementation degree of the
given product family. The revenue share of the REDconformant portfolio is then calculated by multiplying the RED implementation degree by the revenues of
the given product families. The implementation
degree KPI for “Robust Eco Design” is calculated as the ratio of the total RED-conformant revenue shares to
the total revenues of the relevant product families.

Our goal is to embed “Robust Eco Design” in the lifecycle management processes for all relevant product families by the year 2030, with a current focus on
tangible products such as hardware, for example. In
2021, the share of revenues generated on relevant
product families that meet the criteria of “Robust Eco
Design” was 55 % and the “Robust Eco Design”
(without SHS revenues and internal services such as
real estate) implementation degree was 26 %.

The “solid foundation” criterion of the “Robust Eco
Design” approach also goes beyond the previous
requirements for life-cycle assessments and
environmental product declarations insofar as the
fulfillment of this criterion now also requires
application at the level of product families. For the
current orientation of the “Robust Eco Design”
approach, coverage by full-scale life cycle assessments (for purposes of “solid foundation”) and environmental
product declarations (as environmental statements)
play a role at the product family level and form part of the RED KPI.

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Another essential aspect of the “Responsible Product
Development” program category is systematic
surveys of customers to determine their challenges
and the environmental protection requirements of
their applications. To this end, questions on this
subject will be added to the customer satisfaction
surveys by the year 2030 in order to develop
innovative solutions to help reduce adverse
environmental impacts in the future.

The tasks in the program category of “Clean Supply
Chain” are directly derived from the “material
reduction” criterion of the “Robust Eco Design”
approach. Our goals are to increase the proportion of
secondary materials for metals and plastics and
reduce the share of our revenues generated on
products that contain substances of very high concern
for environment and health by the year 2030. With
regard to secondary materials, we focus on suppliers
of raw materials and semi-finished products made of
metal and plastic who can be directly influenced by
way of appropriate specifications.

For metals with a main mass consisting almost
entirely of iron, copper, and aluminum, we calculated
a proportion of 38 % in the past fiscal year. This
proportion is calculated as the weighted average of
the shares of secondary materials in the three abovementioned metals on the basis of regional or global average values derived from the literature. For
Manufacture
· Operational
resource efficiency
· Less waste / higher
energy efficiency
Sales/Service
· Substantiated
environmental
claims
·Repairability
·Reusability
· Retrofits &
Refurbishment
Use
·Durability
· Resource
productivity &
Energy efficiency
·Upgradeability
Restoration/
Recycling
·Recyclability
· Suitability for
Remanufacture
Procurement
· More secondary
material
· Fewer substances
of concern
Planning
Eco Efficiency @ Siemens Robust Eco Design approach
Reuse
· Reusability
·Repairability

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plastics, the proportion of secondary materials is less than 1 % because suitable recycling chains have not
yet been fully established for technical plastics.

Moreover, the corresponding product specifications
and standards have been upgraded.

Another essential aspect of a “Clean Supply Chain” is
the reduction of substances of very high concern,
such as declarable substances, which will be explained
in greater depth in the next section. All targets
mentioned above must be achieved in order to
decisively improve resource efficiency and reduce
environmental impacts. We are working on this goal
together with our business partners.

Risk-conscious handling of declarable
substances
Another essential aspect of product stewardship is
the responsible handling of problematic and
potentially harmful substances, such as those
regulated by the EU REACh Regulation. Under the
earlier “Product Eco Excellence” (PrEE) program, we
established important foundations for the digital,
automated, and therefore efficient data processing
of the corresponding substance data by fiscal 2020.

For example, the level of usage of the industrial
substances data platform known as BOMcheck by our
suppliers has been increased as part of the PrEE
Digital industries (DI) / Large
Drives Applications (LDA)
provide a solution for energy
supply for ships at ports to
improve air and noise
pollution
Smart Infrastructure (SI)
develops digital key software
as a service solution to
support its customers in
becoming more resource
efficient
DI solutions make customers
assess and improve their
energy consumption
Additive manufacturing of
spare parts improves material
efficiency and product
weight, implements,
circularity, reduces CO2
footprints.

SIHARBOR
port
Siveillance
Access Mobile
access solutions
MindSphere
IoT Platform
energy
management
Easy Sparovation Part
Rail spare
parts
program. In addition, internal IT methods and
processes have been continuously adjusted with the
goal of taking a more proactive and safe approach to
the use of materials and substances and in order to
more efficiently fulfill the declaration requirements
such as those of the EU SCIP database and IEC 62474.

Currently, up to 67 % of our sales (without sales of
SHS) are still achieved with products that contain
substances or substance groups listed among the
regulated substances according to IEC 62474. This
transparency enables us to take continuous action to
initiate their replacement, whenever this is technically possible and reasonable.
“reThink:Plastic@Siemens”
In view of the greatly increased use of plastics in a
wide range of applications, Siemens has decided to
address this issue with a strategic initiative known as “reThink:Plastic@Siemens” in order to make a
contribution to the responsible, sustainable use of
plastics as part of the company’s commitment to
product stewardship. In the analysis conducted under
this initiative, we found that plastics are being used
more and more for technical and economic reasons,
but they also offer ecological advantages compared
to other materials in most cases. A detailed analysis
of the plastics used by Siemens generally shows that
Examples of solutions to increase resource efficiency at Siemens

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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 environmental 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.

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City Council and Concurrent AuthoritiesDecember 9, 2025

City Council and Concurrent Authorities
December 9, 2025