We regularly identify sustainability topics based on their importance for us and our stakeholders, and prioritize them on the principle of materiality. Our materiality matrix highlights key sustainability issues and their significance for our stakeholders and Siemens. The matrix is prepared annually in a process that closely integrates analyses of general trends, our orientation to megatrends, and intensive dialogs with our stakeholders. During fiscal 2012, we consulted more than 90 external stakeholders and experts from academia, industry, politics, non-governmental organizations and consultancies. We then combined the outcome of this dialog with the assessments of our specialist departments.

By dealing with the topics in the materiality matrix we are able to identify opportunities, minimize risks and provide answers to the questions of tomorrow. How this works is best demonstrated with the help of a few examples.

One of the most important challenges for Siemens is innovation. Smart innovation management enables us to develop key technologies and make them fit for the market. Innovations are a mainstay of Siemens’ business success, including when it comes to meeting sustainability requirements by consistently expanding our Environmental Portfolio.

Specifically, we aim to boost revenues from our Environmental Portfolio to at least €40 billion by the end of fiscal 2014 and we are helping our customers reduce their carbon emissions. In fiscal 2012, our ecofriendly products and solutions enabled customers worldwide to slash their CO₂ emissions by 332 million tons – a quantity equivalent to the total annual carbon dioxide emissions of Berlin, Hong Kong, London, New York City, Tokyo, Moscow, Jakarta, São Paulo and Melbourne.

We also make our products more ecofriendly by improving resource productivity. Our Healthcare Sector, for instance, not only supplies new spare parts for current products but also provides refurbished parts for fitting in products that have reached or passed the end of their lifecycle.

We also expect our suppliers to act in accordance with clear principles of sustainability and integrity. Our basic requirements – such as respect for the basic rights of employees and environmental protection – are defined in the Code of Conduct for Siemens Suppliers. We have also integrated sustainability requirements in all relevant Supplier Management processes, such as Supplier Selection, Supplier Qualification and Supplier Evaluation, as well as Supplier Development, and established appropriate internal control and monitoring mechanisms throughout the company.