Index related to the Global Compact of the United Nations

Siemens has been a member of the UN Global Compact since 2003 and has expressly committed itself to the Compact’s ten principles. This Sustainability Report, and in particular the following report index, describes the progress we have made during the year – broken down according to the systems and measures we have implemented and our achievements.

During the year under review, we intensified our commitment to the Global Compact. When we revised the Siemens Business Conduct Guidelines, we made the ten principles of the Global Compact binding for the entire company.

Within its sphere of influence, Siemens is also committed to promoting the values defined in the Global Compact with respect to human rights, employee rights, environmental protection and the fight against corruption. This commitment is an integral part of our business strategy and our business transactions.

That’s why we expect our employees, suppliers and business partners around the world to observe the following guidelines:

  • The Universal Declaration of Human Rights,
  • 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 Labor Organization (ILO),
  • The ILO’s Declaration on Fundamental Principles and Rights at Work,
  • The OECD  Guidelines for Multinational Enterprises,
  • The Agenda 21 Plan of Action for Sustainable Development, and
  • The UN Convention Against Corruption.

We refer to the principles of the UN Global Compact not only in the following index but also in the index in which the content of this Report is cross-referenced to the Global Reporting Initiative guidelines.

Index according to the ten principles of the Global Compact
Principle Systems Measures Achievements
Principle 1
Support of human rights

Principle 2
Exclusion of human rights abuses

Principle 3
Assurance of freedom of association

Principle 4
Elimination of all forms of forced labor

Principle 5
Abolition of child labor
With our Business Conduct Guidelines we have also committed ourselves to observing human rights and the core work norms.

With our Code of Conduct for Siemens Suppliers we ensure that these basic rights and principles are also observed in our supply chain.

Success factor – Integrity
Management: Suppliers

Members and external stakeholders can report suspected violations to the ombudsman and the compliance helpdesk “Tell us.” We investigate all statements and instigate disciplinary measures where necessary.

Management: Comliance
In fiscal 2008, we revised our Business Conduct Guidelines. Additions included committing ourselves to observing the basic principles of the United Nation’s Global Compact and the United Nations Convention against Corruption.

To monitor the observance of the Code of Conduct for Siemens Suppliers, we have established a comprehensive control system. We trained our employees in application of the Code of Conduct.

The Siemens Compliance Program
Management: Suppliers
Some of the reports made to the ombudsman and the compliance helpdesk “Tell us” in the period covered by the report involved possible violations of work norms. We followed up these incidents and disciplinary measures were instigated where necessary.

Key figures: Compliance

In the period covered by the report, 336 supplier quality audits were conducted with a CR auditing module. In the process we identified a total of 590 potential improvements: around 12 percent involved structural improvements of the management systems in the area of human rights. We have agreed on improvement measures with 23 suppliers.

Key figures: Suppliers
Principle 6
Elimination of discrimination
Our Business Conduct Guidelines unequivocally prohibit every form of discrimination.

Suspected violations can be reported to the ombudsman and the compliance helpdesk “Tell us".

Management: Comliance

Our Promoting and Managing Diversity Guidelines, which are valid worldwide, are the basis for avoiding discrimination of any kind at Siemens. The Regional Companies draw up their own equal opportunity policies for implementing the global Diversity Guidelines.

Success factor – Integrity
Diversity and Equality of Opportunity
In November 2008, we established the position of Chief Diversity Officer with company-wide responsibility for diversity management. Our goal is to systematically expand diversity to all levels of the company by 2011. Siemens USA has established a central diversity management structure and a nationwide structure – the Diversity Board – to link all local diversity-related activities with one another.

Success factor – Integrity
Diversity as a strategic advantage
Diversity management in the U.S.
In fiscal 2008, women accounted for 26 percent of our total workforce. As in fiscal 2007, 13.4 percent of our managers were women. We intend to increase the diversity of our management.

Key figures: Employees
Goals: Employees

Some of the reports to the ombudsman and the Compliance Helpdesk “Tell us” during the reporting period concerned possible violations of our anti-discrimination regulations. We investigated the allegations and instigated disciplinary measures against violations.

Key figures: Compliance
Principle 7
Precautionary approach to environmental protection
Our responsibility for environmental protection has been included in our environmental guidelines. In addition, Siemens Norm 36 350 ensures that we comply with the principle of precautionary environmental protection in all our product design processes.

Management: Environmental protection
Environmentally compatible product design
In fiscal 2008, we introduced comprehensive measures for achieving our goals in the areas of energy (20 percent), water (20 percent) and waste (15 percent). These included the program “Innovation in Manufacturing.” In fiscal 2008 we also extended the Siemens norm to plants and systems. The new section of SN 36 350 covers the whole life cycle of a system – planning, procurement, setting up, operation and dismantling.

Company environmental program
Innovation in manufacturing
Environmentally compatible product design
With our company environmental program, we have come a step closer to reaching our efficiency targets. In the area of water we have already achieved a 21-percent improvement. In the area of energy/CO2 emissions, there has been a ten-percent improvement and in the waste area a four-percent improvement.

Key figures: Environmental protection
Principle 8
Specific initiatives to promote environmental protection
Raising our employees’ awareness of environmental and climate protection is an element of both our environmental strategy and our social commitment. With internal communications measures and our Siemens Generation21 program, we help create a greater sense of responsibility for ecological issues inside and outside the company.

Company environmental program
Internal environmental communications
Responsibility for sustainable development
Every three years we present an award to employees who have shown particular commitment to environmental protection.

We implement numerous internal communications measures in order to heighten our employees’ awareness of the environment. We have thus devoted an issue of our international employee magazine to environment and climate protection and have set up our own intranet website on the topic which also contains practical tips.

Climate protection is also the subject of a Siemens school competition in a number of countries. On the political level, we are, among other things, also involved in the Federation of German Industries’ climate initiative.

Company environmental program
Internal environmental communications
Responsibility for sustainable development
In fiscal 2008 we donated around €13 million to education and science. Since combatting climate change is one of the main aspects of our social commitment, a large part of this investment has gone into raising awareness of this aspect of environmental protection among school and university students.

Key figures: Society
Principle 9
Diffusion of environmentally friendly technologies
As part of our Environmental Portfolio, we develop and market products and solutions that enable our customers to reduce their CO2 emissions, lower life cycle costs and protect the environment.

Our Environmental Portfolio
In fiscal 2008, we continued to develop the Siemens Environmental Portfolio and implemented processes for annual reporting.

Our Environmental Portfolio
The products and solutions of the Environmental Portfolio that were installed for our customers from 2002 to 2008 helped them cut their CO2 emissions by around 148 million tons a year. In the year 2008 alone, newly installed products and solutions cut CO2 emissions by around 34 million tons.

Our Environmental Portfolio
Principle 10
Measures against corruption
Our Compliance Program is based on the three pillars prevent, detect and respond. This system is the basis of all measures against corruption in the company.

The Siemens Compliance Program
In fiscal 2008, we extended our compliance organization, raised our employees’ awareness of the risks of corruption and established a control system which enables weak points to be detected and eliminated. These measures are also designed to regain the trust of our stakeholders.

Management: Compliance
The number of employees working in the compliance area increased to 621 in fiscal 2008.

123,000 employees received online compliance training, and 52,200 had personal training. In the period covered by this report, we instigated disciplinary measures for 909 violations of compliance regulations.

Key figures: Compliance