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“Committing to cutting our global carbon footprint is not only prudent — it’s profitable.”
– Joe Kaeser, CEO Siemens AG
With our commitment to turn our operations carbon-neutral by 2030, Siemens set a clear signal even before the adoption of the Paris Agreement. By setting this goal, we express our firm belief that companies play a pioneering role in the fight against climate change. Our goal is clear: All Siemens production facilities and buildings worldwide are to achieve a net-zero carbon footprint by 2030. This program not only benefits humanity and the environment, but also comes with sustainable economic advantages for our company. We focus on four key levers.
Siemens Energy Efficiency Program
Siemens plans to invest some €100 million in energy efficiency projects at its production facilities and buildings by 2020. Savings in power consumption and heat generation are expected to cut carbon dioxide emissions by an annual 80,000 metric tons.
Prior to the launch of the carbon neutral program, Siemens has already implemented energy efficiency measures at 24 sites. From 2010 to 2014, this smaller-scale energy-efficiency program contributed to an increase in carbon efficiency by as much as 20%. We are now building on its success: More than 17 energy efficiency projects were kicked off last year alone, 3 of which were successfully implemented within one year and have an amortization period of 5 years or less.
Decentralized energy systems
With its global market development approach, Decentralized Energy Systems (DES), Siemens aims to promote innovative solutions covering aspects of power generation at both Siemens sites – and in their immediate vicinity – and improve business potential. DES technologies includes wind farms, photovoltaic power stations, energy storage and decentralized cogeneration, i.e. combined heat and power generation. In the long term, Siemens aims to secure up to 10% of its power supply using DES solutions. The expected amortization period for investments in decentralized energy projects is generally 10 years or less. Once completed, we expect to lower emissions by up to 100,000 metric tons of carbon dioxide annually.
It takes smart solutions to make transportation more efficient, safe and environmentally friendly. Mobility is a sector, in which automation, digitization and electrification are among the more obvious emerging trends. Siemens is stepping up its commitment to electromobility and making a key contribution to the reduction of CO2 emissions in the process.
With over 45,000 vehicles worldwide, the Siemens fleet emits 15% of the company's total carbon dioxide emissions. From 2008 to 2014, Siemens successfully reduced the average CO2 emissions in Germany by as much as 30%. This program module is expected to cut gasoline costs by some 33% and reduce the fleet’s CO2 emissions by 100,000 metric tons per year until 2025. The optimization of the vehicle fleet not only lowers its environmental impact, but also comes with financial advantages: Fleet costs are expected to drop by as much as one third. To achieve its medium-term target – reducing the average fleet emissions to 95 grams of CO2 per kilometer by 2020 – Siemens is gradually introducing appropriate directives in all countries. Attractive smart mobility offers complement the program.
Purchase of clean electricity
Compared to other areas such as fuel consumption or district heating, power consumption causes the largest share of Siemens’ total carbon dioxide emissions. We therefore move into purchasing electricity from renewable energy sources. Our initial focus is on countries with a high demand for electricity – Germany, the USA, the Czech Republic, the United Kingdom, and Austria.
Operations in Germany are responsible for more than one third of Siemens’ total power consumption. Siemens therefore purchases 50% of the electricity it requires in Germany from renewable energy sources. After the switch to green electricity at 38 of its German sites, the carbon footprint of Siemens shrank by as much as 200,000 metric tons in fiscal 2016. Next year, greenhouse gas certificates from a Swedish wind farm running Siemens turbines will help to further reduce the carbon footprint of German Siemens sites. This step speaks of Siemens’ clear intention to focus on sustainable Siemens solutions when purchasing clean energy. Siemens plans to reduce its emissions worldwide by 750,000 metric tons of carbon dioxide by 2020.
20% of all Siemens sites in the US consume electricity from renewable energy sources. Our goal is for all our US sites to use 100% clean electricity by 2020.