We regularly identify sustainability topics based on their importance for us and our stakeholders, and prioritize them on the principle of materiality. Our materiality portfolio highlights key sustainability topics and their importance for our stakeholders and Siemens. The portfolio is prepared annually in a process that closely integrates analyses of general trends, our orientation to megatrends, and intensive dialogues with our stakeholders. During fiscal 2011, we consulted more than 30 external stakeholders and experts from science, industry, politics, non-governmental organizations and consultancies. We then combined the outcome of this dialogue with the assessments of our specialist departments.

By dealing with the topics contained in this portfolio, 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.

The innovative products and solutions in our Environmental Portfolio, for instance, present exceptional growth opportunities for Siemens. Our primary goal is to tap these opportunities and systematically expand 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.

Our compliance management underscores how we go about minimizing risks and taking advantage of the resulting opportunities – on a broad scale that extends beyond the company itself.

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.