How is Siemens Succeeding in Reducing its Factory Emissions?

Siemens' factory in Erlangen, Germany, has been named a Digital Lighthouse Factory by the World Economic Forum (WEF), recognising its cutting-edge adoption of sustainable and digital manufacturing practices.

The acknowledgment is a result of Siemens' commitment to reducing emissions while boosting productivity through innovative technologies.

This award is part of the WEF’s Global Lighthouse Network, which acknowledges manufacturing sites that lead the way in adopting Industry 4.0 technologies. The Erlangen factory is the third Siemens site to receive this honour, following recognition of their factories in Amberg, Germany and Chengdu, China.

The accolade comes on the back of significant achievements at Erlangen, where Siemens has succeeded in reducing energy consumption by 42% while increasing productivity by 69%. This has been achieved by implementing a Green Lean Digital approach that seamlessly blends sustainability, efficiency and digital transformation.

What is the Green Lean Digital approach?

The Green Lean Digital approach is the strategic framework behind Siemens’ success at the Erlangen factory.

This approach focuses on integrating three critical elements: sustainability (Green), efficiency (Lean) and digital transformation (Digital). Each element plays a crucial role in reducing environmental impact, optimising production processes and fostering innovation.

Sustainability (Green): Siemens has prioritised minimising its environmental footprint through carbon-neutral practices.

The factory has implemented circular economy principles, aiming to eliminate waste and reduce reliance on finite resources. Renewable energy use and energy-efficient systems help keep carbon emissions low, aligning with Siemens’ broader sustainability goals.

Efficiency (Lean): Lean manufacturing principles have been key to improving the workflow and cutting excess.

By eliminating waste and streamlining production, Siemens enhances productivity without increasing resource consumption. This method not only reduces costs but also drives operational and environmental benefits, making the factory both sustainable and cost-efficient.

Digital transformation (Digital): To achieve these impressive sustainability targets, Siemens has embraced advanced digital technologies like artificial intelligence (AI), the Internet of Things (IoT) and digital twins.

These tools allow real-time monitoring of operations, enabling predictive maintenance, smarter decision-making and more effective sustainability tracking. The use of robotics and automation has optimised operations, allowing Siemens to reduce its material consumption and energy use.

Innovation driving sustainability at Siemens

Siemens has pushed the boundaries of what’s possible in manufacturing with the Green Lean Digital approach.

At Erlangen, more than 100 digital use cases have been implemented, including pioneering work in semiconductor production.

In just 11 months, the factory built a clean-room production facility to manufacture semiconductors for its SINAMICS frequency converters, critical components for energy-efficient power electronics.

This facility has achieved impressive reductions in both material consumption and energy usage. A data analytics system developed by Siemens helped reduce material use by 40% and halved space requirements for production.

Meanwhile, a specialised energy management system enabled the factory to cut its energy use by 50%, demonstrating the power of digital transformation in achieving sustainability goals.

These advancements in efficiency and sustainability are not just benefiting Siemens; they are setting a standard for the wider industry.

As Siemens’ Erlangen factory becomes a blueprint for the future of industrial production, it serves as a model for the next generation of factories to follow.

The factory’s Head of Manufacturing, Stephan Schlauss emphasises the importance of Siemens’ role in driving the global energy transition: "The Siemens factory in Erlangen aims to become the leading supplier of power electronics for the energy transition.

"This award recognises the commitment of all our employees in recent years. It’s also an incentive for us to never rest on our laurels but to improve even more."

Scope 3 implications of Siemens’ Digital Lighthouse Factory

Siemens’ focus on sustainability and digital innovation at the Erlangen site also brings significant reductions in Scope 3 emissions - those produced indirectly across its supply chain.

The factory’s in-house semiconductor production, which reduces material consumption by 40%, directly impacts Scope 3 Category 1, Purchased Goods and Services. By using fewer raw materials, Siemens lowers the emissions associated with the production and transportation of these goods.

Further downstream, Siemens’ SINAMICS frequency converters, produced at the Erlangen facility, boost energy efficiency for customers. This improvement affects the Use of Sold Products (Category 11) within Scope 3 emissions, as more energy-efficient products reduce consumption during their operation, lowering their lifetime emissions.

Moreover, by embracing circular economy practices in waste management, the factory positively impacts Waste Generated in Operations (Category 5). Reducing waste minimises emissions linked to waste treatment and disposal, further shrinking Siemens’ overall environmental footprint.

Lastly, the 50% reduction in space requirements for semiconductor production also impacts logistics. Smaller production facilities lead to more efficient transportation, potentially reducing both upstream and downstream emissions tied to Transportation and Distribution (Category 4).

By integrating sustainability into its digital transformation strategy, Siemens is not only enhancing its operations but also demonstrating leadership in tackling emissions across its value chain.

A commitment to a sustainable future

The recognition from the WEF is a clear indicator of Siemens’ leadership in both digital transformation and sustainability. This is not the first time Siemens has been celebrated for its innovative manufacturing approaches.

However, it speaks volumes about the company’s dedication to continuously improving its environmental performance and operational efficiency.

"All good things come in threes," says Cedrik Neike, Member of the Managing Board of Siemens AG and CEO of Digital Industries.

"Following recognitions for Amberg and Chengdu, this award highlights the inventiveness of our Erlangen team. By utilising technologies like AI, digital twins and robotics, we have increased productivity by 69%, cut energy consumption by 42%, and are creating a blueprint for the industrial metaverse.

"This acknowledgement motivates us to continue our own sustainability efforts and to help our customers become more resilient and sustainable."

With its focus on sustainability, innovation, and efficiency, Siemens' Erlangen factory is proving that industrial production can be both environmentally responsible and highly productive.

As it continues to lead the charge in the industrial metaverse, Siemens sets a new standard for what it means to be a sustainable manufacturer in the 21st century.

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