Inside Siemens' Year of Supply Chain Sustainability

Siemens is wrapping up 2024 with remarkable achievements, showcasing that sustainability and profitability can thrive together.

The German tech powerhouse not only reached its highest-ever earnings per share but also made substantial strides towards its ESG objectives.

The company’s latest sustainability report highlights its decarbonisation milestones, advancements in circularity and ESG successes. It serves as proof that Siemens’ commitment to sustainable operations goes hand in hand with its financial success.

At the heart of Siemens’ approach lies its 'DEGREE' framework—a six-pillar strategy addressing decarbonisation, ethics, governance, resource efficiency, equity and employability.

The strategy tackles global challenges like climate change, resource scarcity and social inequality while driving meaningful transformation within the organisation and beyond.

The sustainability report reveals that since 2019, Siemens has reduced carbon emissions from its operations by 60%, surpassing its interim 2025 targets.

Beyond its own footprint, Siemens’ technologies are projected to help customers avoid 144 million metric tonnes of CO₂ equivalent emissions over their lifetimes—significantly more than the company’s own value chain emissions of 121 million metric tonnes.

Dr Roland Busch, Siemens’ CEO, emphasises the importance of accelerating these efforts. “We need faster progress on sustainability,” he says.

“Combining the real and digital worlds allows us to accelerate this transformation, making adoption scalable and accessible.”

Digital innovations power decarbonisation

A key driver of Siemens’ sustainability success is the Siemens Xcelerator platform, which brings together digital tools to optimise energy efficiency, decarbonise infrastructure and enhance building management. Solutions such as GridScale X and Building X have become industry benchmarks for decarbonisation.

Additionally, products carrying Siemens’ EcoTech label provide customers with transparent environmental performance data, enabling informed decisions that align with sustainability goals.

“We're committed to delivering technology with purpose,” Roland explains. “Whether through AI-enhanced systems or digital twins, our solutions drive meaningful impact for customers and communities.”

Circularity and resource efficiency

Siemens is making strides in resource efficiency, with circularity at the core of its operations.

Circularity refers to designing products and systems that maximise reuse and minimise waste, prolonging the lifecycle of materials. Siemens has implemented digital twins, virtual replicas of products or systems, to optimise resource use and reduce environmental impact.

EcoTech-labelled products meet stringent criteria for material reuse and sustainable production, ensuring that customers can adopt these solutions with confidence.

Judith Wiese, Siemens’ Chief Sustainability Officer, explains the importance of this approach: “Circularity is more than a buzzword—it’s a business imperative.

"Our technologies empower customers to maximise resource efficiency while minimising environmental footprints.”

In 2024, Siemens reported major progress in using secondary materials, particularly metals and launched initiatives to phase out landfill waste entirely by 2030.

People at the centre of transformation

Sustainability at Siemens extends to its workforce. The company has exceeded its equity target, with women now holding 32.6% of top management positions—surpassing its 30% goal set for 2025.

Siemens has also invested US$482m in employee education, focusing on skills like digitalisation, leadership and sustainability.

“Our people are at the heart of our transformation,” adds Judith. “By fostering an inclusive culture and equipping employees with future-ready skills, we ensure long-term resilience.”

Employees benefited from 27 hours of digital learning per person in 2024, exceeding the company’s 2025 objective. This focus on employability helps Siemens remain competitive and adaptable in a rapidly changing world.

Strong governance is another cornerstone of Siemens’ sustainability journey as ESG principles are woven into executive compensation, ensuring accountability at the highest levels.

Meanwhile, the company’s Supplier Code of Conduct enforces rigorous standards throughout its supply chain, from ethics to environmental practices.

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