Siemens Energy : Sustainability Report 2021

Sustainability Report 2021

Creating transparency

siemens-energy.com/sustainability

Foreword

Content

The company

Decarbonizing our business

Responsible operations

Annex

Dear readers,

We stand at a turning point in human history. The impact of climate change - coupled with an ever-growing demand for energy - is confronting us with fundamental challenges. Projections made by the Intergovernmental Panel on Climate Change in August 2021 indicate that the average global temperature may rise more than 1.5 degrees by as early as 2030. The result would be weather events more extreme than we have ever experienced before. Thus, it is time to act and implement measures that reduce CO2 right away. Politicians, society at large, and the business world all bear an equal responsibility.

At Siemens Energy, we take this effort very seriously. We intend to include the "Decade of Implementation" - as it was called at the World Climate Conference in Glasgow in November 2021 - within our sphere of responsibility and to make an active contribution to combating climate change.

We want to be the sustainability leader in our industry - and that includes the environment, social responsibility, and governance.

"That's why we place sustainability at the heart of our strategy."

What does that mean for us? We have declared that our activities will be guided by the United Nations' 17 Sustainability Development Goals that are part of its Agenda 2030. Siemens Energy actively supports the targets of the Paris Agreement. And we are committed to the Ten Principles of the United Nations Global Compact and report annually on our progress.

Our efforts to fight climate change start within our own organization. The most important internal goal is to make our own operations climate-neutral by 2030. Our ambitious climate goals throughout the value chain are consistent with the Paris Agreement, as the Science-Based Targets initiative has confirmed.

We also want to set an example in our social responsibility activities. Over the past year, the COVID-19 pandemic and the increasingly obvious impact of climate change have changed the lives of everyone. They have shown the importance of a reliable, affordable, sustainable energy supply so that societies can retain their ability to function even under the most difficult conditions. What we need is a global perspective that recognizes the specific situation in the different parts of the world. Yet the reality is that

efforts made to increase sustainable development may be offset by population and energy growth in developing countries. And that would jeopardize every CO2 target. All the more reason for us to promote technologies that will enable these countries to cover the cost of transitioning faster to renewable energy and at the same time meet their growing energy needs. That calls for innovation. We therefore invest around €1 billion annually in research and development.

What is crucial, however, is not only what we do, but also how we do it. Thus, responsible business practices are the base of our business at Siemens Energy. They express our corporate culture - from rigorous compliance with occupational health and safety measures to an unequivocal commitment to human rights. It also includes choosing and managing our workforce from a perspective that recognizes inclusion and diversity as a strength. The same goes for integrity and compliance, which are the foundation for all our decisions and actions. Sustainability is a task for everybody at Siemens Energy. We systematically manage, track, and measure our Sustainability Program. This report is an expression of how we view our mission.

We made progress in 2021 on our journey to become the sustainability leader in our industry. The results from our sustainability ratings confirm that. But there is more work to be done. We will keep you posted on what we do.

Best regards,

Christian Bruch

Chief Executive Officer and Chief Sustainability Officer

Siemens Energy AG

Siemens Energy Sustainability Report 2021

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Foreword

Content

The company

Decarbonizing our business

Responsible operations

Annex

Our sustainability performance

Decarbonizing our business								Responsible operations
Performance indicator		Unit		2021		2020		Performance indicator		Unit		2021		2020

Greenhouse gas emissions
Scope 1+2 emissions
absolute		1,000 metric tons CO2e	273	292
thereof SF6		1,000 metric tons CO2e	41	66
thereof fleet		1,000 metric tons CO2e	29	29
Scope 3 downstream emissions¹
absolute		1,000 metric tons CO2e	1,369,163	927,476
intensity		metric tons CO2e/	0.041	0.027
		€ order intake
Scope 3 upstream emissions²
absolute		1,000 metric tons CO2e	4,761	4,722
intensity		kg CO2e/€ PVO spent	0.473	0.476
Energy
Energy consumption		million gigajoule	6.33	5.80
Share of green electricity	%	76	78

Research & development
Research & development expenses		million €	1,155	985
Sustainable supply chain management
External sustainability audits at suppliers		no.	157	60
Waste
Waste recycling and recovery rate	%	82	78
Water
Water consumption		million cubic meters	4.10	3.23
Product stewardship
Portfolio coverage by Life Cycle Assessments (LCAs)	%	71		-
Employees
Share of women in overall workforce	%	19.3	19.1
Share of women in top leadership positions3		%		21		21
Training hours per employee		no.	8.6		-
Occupational health and safety
Total Recordable Incident Rate (TRIR) of employees		no.	0.49		-
Societal engagement

Donations

million €

4.71

5.44

1 Includes category "use of sold products" only.

2 Includes categories "purchased goods and services" and "transportation and distribution" only. Without SGRE. 3 Without SGRE.

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Foreword	Content	The company	Decarbonizing our business	Responsible operations	Annex
Content
				Responsible operations
	Foreword		2	3 Summary page
	Our sustainability performance	3
	Content		4	36/37
	Interview		5	Occupational health and safety	38

Zero Harm framework and safety culture

4 TheAnnexcompany and reporting method	76
Task Force on Climate-Related Financial	77
Disclosures (TCFD)

1	The company
Siemens Energy at a glance	8
	Strategic focus	9
	our portfolio, program and partnerships
	Q&A with talents: Energy transition	16
	Management of COVID-19 effects	17

2	Decarbonizing our business
Summary page	20
	Q&A with talents: Innovation	21
	Customers and innovation	22
	innovation approach and cybersecurity
	Q&A with talents: Decarbonization	27
	Decarbonization	28
	at customers, in operations and of the supply chain

Conservation of resources	43
environmental standards, water and waste
Product stewardship	47
product safety, footprint and material compliance
Q&A with talents: Supply chain	50
Sustainable supply chain management	51
engagement, assessment and minerals sourcing
Human rights	55
commitment, due diligence and transparency
Compliance and integrity	57
zero-tolerance, training and risk management
Q&A with talents: Inclusion & diversity	61
Working at Siemens Energy	62
inclusion & diversity, leadership and training
Q&A with talents: Skills and compentencies	70
Societal engagement	71
global approach, local action and donations

UN Global Compact - Communication on Progress	84
Independent auditor's limited assurance report	89
Imprint	91

Sustainability dialogue

The energy industry's shift to sustainability raises new challenges. Young talents ask our management their most pressing questions.

• Reference within the report   Link to an external reference

Siemens Energy Sustainability Report 2021

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Foreword

Content

The company

Decarbonizing our business

Responsible operations

Annex

How to fight climate change now?

Interview: Oliver Sachgau Photography: Götz Schleser

Climate change is a major threat to humanity. As Siemens Energy Chief Executive Officer and Chief Sustainability Officer Christian Bruch notes, the time has come to radically change and decarbonize our energy system.

Siemens Energy Sustainability Report 2021

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