Siemens – Henrique Petersen
Transcript of Siemens – Henrique Petersen
Sustainability@Supply Chain
São Paulo, October 2014
Restricted © Siemens AG 2013 All rights reserved. siemens.com/answers
Sustainability@Supply ChainHenrique Paiva
Megatrends are significantly shaping the future of our planet
Urbanization
Climate change
Demographic change
Effi
cien
t use
of r
esou
rces
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Globalization
Effi
cien
t use
of r
esou
rces
The result is huge challenges in terms of infrastructure and efficiency
Efficient use of resources
• By 2050, the urban population will double to 6 billion people
Urbanization people
• By 2025, China will have over 200 cities with more than one million inhabitants each
• In the United States, expenditure for healthcare already accounts for 16 percent of the GDP
• At current trends, a girl born in Germany today has a 50% chance to reach the age of 100
• Limiting global warming to 2° C requires a 15-fold increase in carbon productivity
• This results in investment needs of 10.5 trillion €Climate change
Demographic change
Urbanization
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• While the emerging regions of Asia / Pacific and Africa / Middle East provide only about 32% of today’s global economic output, they will contribute 50% of growth by 2020
• This results in investment needs of 10.5 trillion €in the energy sector by 2030
Globalization
Climate change
Source: McKinsey; International Energy Agency (IEA)
Siemens views these challenges as a business opportunity
Efficient use of resources
Effective and environmentally friendly infrastructure, whether in developed or rapidly growing emerging nations Urbanization whether in developed or rapidly growing emerging nations (e.g. the supply of energy, power and water; mobility)
Efficient and affordable long-term medical care and age-appropriate infrastructure (e.g. mobility, medical care, nursing care, administration)
CO2 reduction and energy efficiency (e.g. in power generation, transport and distribution; Climate change
Demographic change
Urbanization
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Specific requirements of regional markets and the management of global processes and development (e.g. products for emerging countries, global value chains)
(e.g. in power generation, transport and distribution; industry; buildings; mobility; households)
Globalization
Climate change
The Environmental Portfolio comprises products and solutions from all the Sectors
Renewable energy generation
Fossil power generation
Power transmission & distribution
Solutions for industry
Mobility Building technology Water Healthcare
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Initiatives:The Environmental Portfolio of Siemens
Environmental Portfolio revenue (in billions of €)1)
32.332.729.7
Energy efficiencyEnergy efficiency1
FY 2013FY 2012FY 2011
29.7
377333
Environmental Portfolio CO 2 abatement (in millions of metric tons)1)
Renewable energies2
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1) On a comparable basis
333259
FY 2012FY 2011 FY 2013
Environmental technologies3
As of Nov. 2013
CO2 abatement
at our customers 1)
Siemens GHG
emissions from
production
The CO2 abatement at our customers equals the emissions of several large cities
Approach for calculating GHG emission reductions at customers
The annual emission reductions are calculated by comparison of an Environmental Portfolio Element with a reference solution (baseline). For a reporting
42
47
54
259 Mt
377 Mt
333 Mt
production with a reference solution (baseline). For a reporting year, the emission reduction is derived from the number of units installed (light grey bar).
Installations from previous years that are still in use at the customer, are taken into account, too (dark grey bar).
Berlin Cape Town
London Los Angeles
Melbourne Mexico City
Moscow New York City
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3
FY 2012 FY 2013FY 2012FY 2011
CO2 abatement from previous installations
CO2 abatement from newly installed products and solutions Total emissions equivalent ΣΣΣΣ ~377 Mt (CO2-equivalent)
Moscow New York City
São Paulo Seoul
Singapore Tokyo
1) On a comparable basis As of Nov. 2013
Sustainability@Supply Chain
Knowledge Transfer - suppliers
“Code of conduct” – suppliers qualification
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qualification
Energy Efficiency Program for Suppliers Our Contribution to Sustainability
FY 2013
985 suppliers*
Sustainability approach
CSCM PS, Birgit HeftrichFor internal use onlyReporting August 2013 Page 9
* stretched target CSCM
From Supplier to Customer through Sustainable approach
EEP4S
Suppliers Customers
EEP4S: Process and benefits
Suppliers Customers
Web-based tool:• GHG inventory• Equipments• Energy management• Environment policy
(Mainly) Business: I CS + I DT + IC LMV + IC BT + E T
34 Suppliers (Big andmid size companies)
Suppliers Siemens:
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Suppliers• Cost Reduction• Improve energy managt.• Competitiveness• Awareness about carbon footprint
Siemens: • Greener value chain • Relationship with suppliers• Business Opp.• Better positioning in future negotiations
Initiatives: Energy efficiency at suppliers –Example SCHMOLZ + BICKENBACH
Supplier: Tool producer
• Analysis of Krefeld
Examples of measures:
• Replace dust removal systems• Analysis of Krefeld
company location by team of Siemens experts
• Goal: Identify improvement potential for energy efficiency
systems
• Purchase 20-ton medium-frequency furnace
• Install photovoltaic system
Results of the energy analysis:
Energy cost savings potential of 10 – 15 %
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Sustainability@Supply Chain
Knowledge Transfer - suppliers
“Code of conduct” – suppliers qualification
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qualification
We explained the importance of Siemens Qualification Process, not only to be Qualified at Siemens, but
Code of ConductBasic Quality Requirements
Corporate Responsibility Self Assessment Supplier Self Description
Supplier qualification @ Siemens
only to be Qualified at Siemens, but also to prepare the suppliers to a growingly competitive and demanding business environment
� 'Qualification Classifier'Define qualification
scope
�Sanctioned Parties Screening (DAMEX)�Business Partner Due Diligence�Supplier key data (Corporate Master Data)
Ensure mandatory minimum
requirements for suppliers
Supplier Qualification Process
Decentralized supplier generation process
Supplier Qualification within click4suppliers easy
Corporate Responsibility Self Assessment Quality ManagementEnvironmental Protection, HealthManagement and Safety
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� 'Qualification Classifier'
Corporate Re-sponsibility Self
Assessment
Risk Evaluation
O pe ration al Co m pe te nc e
Q ua lity Co m p eten ce
Su pp ly Cha in M a nag em e nt Co m p eten ce
Procure me nt Co m p eten ce
Bu sin es s Co llab ora tion
Ba lance o f Po we r
R eg ion al P resen ce
Co m m itm en t
C oo pera tion
B us ine ss Co ntin uity
Bu s in ess Envi ron-m enta l F ac to r
C on trac tua l fram ew ork
Int eg ra ti on Co m p lia nc e
Soc ial a nd E thical R espon sibility
Co m pl ia nce in su ppl y cha in of
sup pl ie r
En v iro nm en t, H ea lth a nd Sa fe ty
Le ga l co mp lian ce
Te chn ology & In no vativen ess
Fina nc ial S itu ation
Risk m a na gem e nt @ Su pp lier
Q uality Integ ratio n
Su pp ly C ha in M a nag em e nt
In teg ration
Procu re m ent In teg ration
Te chnolog y & In no vativen ess
O pe ration al Co m pe te nc e
Q ua lity Co m p eten ce
Su pp ly Cha in M a nag em e nt Co m p eten ce
Procure me nt Co m p eten ce
Bu sin es s Co llab ora tion
Ba lance o f Po we r
R eg ion al P resen ce
Co m m itm en t
C oo pera tion
B us ine ss Co ntin uity
Bu s in ess Envi ron-m enta l F ac to r
C on trac tua l fram ew ork
Int eg ra ti on Co m p lia nc e
Soc ial a nd E thical R espon sibility
Co m pl ia nce in su ppl y cha in of
sup pl ie r
En v iro nm en t, H ea lth a nd Sa fe ty
Le ga l co mp lian ce
Te chn ology & In no vativen ess
Fina nc ial S itu ation
Risk m a na gem e nt @ Su pp lier
Q uality Integ ratio n
Su pp ly C ha in M a nag em e nt
In teg ration
Procu re m ent In teg ration
Te chnolog y & In no vativen ess
Self-assessmentSelf-assessment
Supplier related quality
requirements 1
Self-assessmentSelf-assessment
Trading Partner Security
Code of ConductEnvironmental Protection,
Health Management &
Safety
Monitor Supplier status for every
module
Corrective Actions
scopeclick4suppliers easy
1. Basic Quality Requirements, Quality Management Certificates (within LSA), Supplier Self Description
Code o Conduct a MUST to become a supplier for Siemens
O presente Código de Conduta define os requisitos b ásicos exigidos aos fornecedores de bens E serviços da Siemens, relati vamente às suas fornecedores de bens E serviços da Siemens, relati vamente às suas responsabilidades perante os acionistas e o meio a mbiente.
• Conformidade Legal
• Proibição de corrupção e suborno
• Respeito pelos direitos humanos dos trabalhadores
• Proibição de trabalho Infantil
• Sáude e Segurança dos trabalhadores
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• Sáude e Segurança dos trabalhadores
• Proteção Ambiental
• Cadeia de Suprimentos
The Environmental Portfolio contributes to climate protection and energy efficiency
Criteria and examples for the Environmental Portfol io
Energy efficiency Renewable energies Environmental technologies
1 2 3
Products and solutions with high energy efficiency
Technologies for renewable energies
Environmental technologies
Energy efficiency Renewable energies Environmental technologies
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Examples:• Gas and steam turbine power
plants • High-voltage DC power
transmission (HVDC)• Energy performance contracting
for buildings
Examples:• Wind farms• Grid access for wind power• Steam turbines for concentrated
solar power plants
Examples:• Water treatment• Air pollution control systems
Systematic establishment of sustainability
IÖW / future ranking for sustainability reports:
2nd place
Establishment of internal Sustainability Board and dedicated sustainability organization
Barbara Kux
Tata-Siemens Green MoUsigned
Fifth time in a row in Global 500 Carbon Disclosure Leadership Index
Oekom Rating: Best rated company in “Industrial Conglomerates”
DJSI: Siemens most
Definition of Environmental Portfolio and own environmental targets
2008 2009 2010 2011 2012 2013
Establishment of
Barbara Kuxappointed first Chief
Sustainability Officer at Siemens
signed
German Sustainability
Leadership Index DJSI: Siemens most sustainable industrial company (Industry Group Leader)
Environmental Portfolio revenue increase from EUR 19’’ (FY08
Sector Leader of Dow Jones
2007
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Regional implementation of Sustainability Program
Establishment of external Siemens Sustainability Advisory Board First time
DJSI SuperSector
Leader
First Sustainability
Report published
Sustainability Award (category "Sustainable Strategy –Corporations")
EUR 19’’ (FY08 as reported) to EUR 33’’(FY12)
Page 17 November 2013 Supervisory Board Meeting
Dr. Roland Busch appointed new
CSO
of Dow Jones Sustainability Index
(Diversified Industrials)
• Labor Practice Indicators • Human Capital Development• Talent Attraction & Retention• Corporate Citizenship and
• Corporate Governance• Risk & Crisis Management• Codes of Conduct / Compliance /
Corruption & Bribery
Siemens is the strongest performer in the three dimensions of the Dow Jones Sustainability Index
Siemens is included for the 14th time in a row in the DJSI World Index
• Corporate Citizenship and Philanthropy
• Occupational Health and Safety• Social Reporting
Corruption & Bribery• Innovation Management• Customer Relationship
Management• Supply Chain Management• Strategy for Emerging Markets
Industry GroupLeader
“Capital Goods"
Siemens Score93%
Average Score 1)
Siemens Score
42%88%
Siemens Score
Average Score 1)
96%45%
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• Environmental Policy / Management System
• Operational Eco-Efficiency• Product Stewardship• Climate Strategy• Water Related Risks• Environmental Reporting
1) Average score of all assessed companies in the “Industrial Conglomerates” industry
Source: RobecoSAM, Sustainability Office
93%Score Score
Siemens Score
Average Score 1)
34%
96%
ScoreScore
We have established a global sustainability network
Dr. Roland BuschMember of the Managing Board,Chief Sustainability Officer
Siemens Sustainability BoardRepresentatives from Sectors and Corporate
Siemens Sustainability Advisory Board
CorporateSustainability
Office
Cluster SustainabilityManagers
Sector Sustainability Managers
Chief Sustainability Officer
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Office
Cro
ss S
ecto
r
Energy
Healthcare
Industry
Infrastructure & CitiesPacif ic
Natalia KarapanagiotiSouth West Europe
Edgar DuveGermany
Ian BowmanNorth West Europe
Stefan SpeidelJapan
Irina GoncharovaRussia/Central Asia
Steffen EndlerASEAN-Pacific
Beryl LopezSouth Asia
Martin KlarerNorth East Asia
Marvin BenjaminAfricaHenrique Paiva
Brazil
Aniela MarvalAustral - Andina
Alison TaylorNorth America
Mohsen NayebzadehMiddle East
Beate AndresCentral East Europe
Corporate Units