Circularity, Supply Chains & Strategy: A Year at Siemens
As the year draws to a close, the time for reflection begins. Year-end evaluations are in full swing at Siemens and the German tech giant has a great cause for celebration.
As well as registering its highest earnings-per-share performance yet, the Berlin-based conglomerate has made remarkable progress on its ambitious sustainability goals in 2024.
The company's sustainability report reveals the finer details of a successful year, including the decarbonisation milestones, ESG performance and philosophy of circularity.
What's more, this targeted approach to sustainability has come hand-in-hand with record breaking profits, showing that going green needn't break the bank.
Siemens' core principles of sustainability
Central to the report - and to Siemens' broader pursuit of sustainability - is the 'DEGREE' framework, a six-pillar strategy targeting decarbonisation, ethics, governance, resource efficiency, equity and employability.
The report also details the main challenges or problems that they are looking to address; climate change, resource scarcity and social inequality.
In the report, Dr. Roland Busch, CEO of Siemens, reflects on the urgency of scaling sustainability 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.”
Some of the milestones from the report
Siemens' sustainability milestones in 2024 include a 60% reduction in carbon emissions from operations since 2019, surpassing the interim targets that the team had set for 2025.
There are positive outcomes outside of the company's operations too.
The report projects that Siemens products will help customers avoid 144 million metric tonnes of CO₂ equivalent emissions over their lifetimes, exceeding Siemens’ own value chain emissions of 121 million metric tonnes.
Key to these achievements has been the Siemens Xcelerator platform, which integrates digital solutions to enhance energy efficiency, decarbonise grids and optimise building operations.
Flagship offerings like GridScale X and Building X have facilitated decarbonisation across diverse sectors, while innovative products carrying the Siemens EcoTech label empower customers with transparent environmental data.
“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 as a 'business imperative'
Siemens has placed circularity at the forefront of its resource efficiency strategy, leveraging digital twins and advanced manufacturing technologies to extend product lifecycles and reduce waste.
Its EcoTech-labelled products adhere to stringent criteria for material reuse and sustainability.
“Circularity is more than a buzzword—it’s a business imperative,” says Judith Wiese, Chief Sustainability Officer. “Our technologies empower customers to maximise resource efficiency while minimising environmental footprints.”
In 2024, Siemens recorded significant progress in secondary material use, particularly in metals, and launched initiatives to phase out waste-to-landfill by 2030.
A people-centred approach to sustainability
Internally, Siemens has exceeded its equity goals, with women now holding 32.6% of top management positions—well above the 2025 target of 30%.
There's also been the huge investment of US$482m in employee education, focusing on digitalisation, leadership and sustainability.
“Our people are at the heart of our transformation,” says Judith. “By fostering an inclusive culture and equipping employees with future-ready skills, we ensure long-term resilience.”
Siemens has further enhanced its employability framework, providing 27 hours of digital learning per employee in 2024, surpassing its 2025 goal.
'A genuine commitment to ethical leadership'
Governance remains a cornerstone of Siemens’ sustainability ethos. ESG considerations are embedded in executive compensation structures, and the company’s Supplier Code of Conduct ensures rigorous standards across its supply chain.
Recognitions such as the EcoVadis Platinum Medal and CDP Climate Change A List underscore Siemens’ leadership in sustainable business practices.
“Governance is as critical as innovation in driving meaningful change,” Roland explains. “Our efforts reflect not only compliance but a genuine commitment to ethical leadership.”
The power of partnerships
Siemens’ 2024 report also highlights strategic collaborations with organisations like the United Nations and the World Economic Forum. These partnerships amplify Siemens' capacity to address systemic challenges, from decarbonisation to digital inclusion.
The partnerships Siemens is fostering aren't just in governance: it is putting a sharp focus on the partnerships it holds up and down its supply chain.
"Our biggest impact is through our portfolio," says Dr. Eva Riesenhuber, Global Head of Sustainability. "More than 90% of our business enables our customers to achieve a positive sustainability impact.
"With 144 million tons CO2e of customer avoided emissions we enable our customers to avoid more emissions than caused along our entire value chain (Scope 1, 2 and 3)."
Looking ahead, Siemens aims to further integrate ESG principles across its operations, offerings and value chain.
As Roland says: “Our sustainability journey is one of continuous improvement. Together with our partners, we’re committed to scaling our impact for a better tomorrow.”
Explore the latest edition of Sustainability Magazine and be part of the conversation at our global conference series, Sustainability LIVE.
Discover all our upcoming events and secure your tickets today.
Sustainability Magazine is a BizClik brand
