Global Sustainabl

5/27/2023
Company: Sie
Table of Contents
1.Executive Summary.........................................................................................................1
2.Introduction....................................................................................................................2
3.Operational strategy.......................................................................................................3
3.1Recommendation..................................................................................................................4
4.Leadership......................................................................................................................5
4.1Recommendation..................................................................................................................6
5.Planning.........................................................................................................................6
5.1Recommendations.................................................................................................................9
6.Support.........................................................................................................................10
6.1Recommendation................................................................................................................11
7.Operations....................................................................................................................12
7.1Recommendation................................................................................................................13
8.Conclusion.....................................................................................................................14
9.Reference......................................................................................................................15

1.Executive Summary

This Report provides an overview of the Siemens operational

strategy and its sustainability using the ISO 9001 Quality
management system. This report also provides a brief
understanding of Siemens five main properties namely
operational strategy, leadership, planning, support and its
operations with the significant recommendation to each area
where the company needs to improve which would help them
enhance the sustainability performance of the company.
The report also provides information about the partners and
collaboration of siemens which would help the company
achieve its goal of being sustainable. The company also has a
new growth strategy where the ESG is at a centre. The
DEGREE policy (Siemens a, 2022) provides a brief information
on sustainability. The report also provides an information on the
company’s leadership commitment where how are they
managing the sustainability with the necessary changes being
made by the top management The report also says about the
company is tracking their ESG with different ways and how they
are improving it where necessary. There is also various support
at place which helps the company to the track of its
sustainability goal. Also, the report highlights the company’s
sustainable operations. The operations shows company’s
objective and goals for the sustainability.

2.Introduction

The company engages in the automation and digitisation of

production industry, Building infrastructure and energy system,
solution for logistics problem, healthcare services and modern
technology. Siemens has operations in more than 190 countries
and have 311,000 employees globally (Siemens b, 2022). The
company has a framework which is in relevance to
sustainability. The DEGREE framework which states company’s
six core ambitions which are Decarbonisation, Ethics,
Governance, Resource efficiency, Equity, Employability making
it a new strategy for growth which is related to sustainability.
The company has made a significant impact on the factors
environment and social by making it the core focus of the
company’s growth. Siemens is also producing the products
which are eco-friendly and can be reused. The ISO9001 is the
quality management system which is an international
recognised. ISO 9001 is based on various quality management
system which consists of seven principles and are people
engagement, customer centric, leadership, improvement,
evidence-based decision making, managing relationship and
process approach (Siemens c, 2022). The report will talk about
the company’s operational strategy and supply chain
sustainability with its relation to quality management system.

3.Operational strategy

Siemens has a sustainability approach which correspond to its

operational strategy. The reason for the siemens long success
is its three areas of automation, digitisation and sustainability
(Siemens, 2021). The portfolio of siemens makes it sustainable
in terms of decarbonisation, resource efficiency and circular
economy.
Siemens have set the target to reduce its impact on the
environment with producing the product with the option to
reuse, recycle, repair and refurbishment of the product and
reducing the company’s consumption of the natural resources
in the production. Siemens plans to have a NetZero operation
by 2030, with 55% reduction in 2025 and 90% by 2030 and
company also wants to make its supply chain a NetZero by
2050, with having 20% reduction in 2030. The company also
plans to take its eco product design to next level by making it
100% eco-friendly by 2030 (Siemens d, 2022).
The company has also partnered itself with many business
partners to reduce the emission. With the global presence the
company partners with diverse players in the market. The
company wants its efforts to be in corresponds to the SDG 17
which will bring together the government, private sector, the UN
and other (Siemens, e 2022). Only when collaborating with the
stakeholder the company can make some very serious decision
which concern the environment. With this communication with
stake holder can create a group value which can help in
exchange of knowledge and data and help in reducing internal
and external risk.

3.1Recommendation

 The company should be more transparent for their

sustainable activities.
  Employees of the company plays a vital role so they
should also be involved when thinking about sustainability.

4.Leadership

Sustainability management is a company wide effort, and it is in

the heart of each operation of the Siemens. There are two tier
board which includes Managing board and supervisory board
which is governed by German corporate law. The sustainable
growth is one of the most important aspects which the top
management consider as it will help in growth of the company’s
value. Managing board and its member are jointly obliged for
the company’s entire management and discuss the company
issues and corporate strategy consisting of sustainability for a
year or more. All the sustainability related are overlooked by the
CSO (Chief Sustainability Officer), the CSO is the member of
the managing board and the member in the Siemens
Sustainability Board (SSB). Strategic sustainability at siemens
is done by the SSB committee and the decisions are also made
by them. The SSB is the one which highlights the issue and
carry out the new policy and strategy for sustainability
throughout the year as in 2021 they carried out a policy of
DEGREE sustainability framework. The change of trends in
sustainability monitored by the department of sustainability
where they make necessary adjustment to the policy.
The company can achieve its complex intertwined sustainability
only by closely working with the stakeholders, customers,
suppliers, employees, policymaker, communities, media,
business organisation and nongovernmental organisation. The
company is also an active member in European Alliance, where
the announced the European Green Deal by which they are
planning to achieve Carbon-Neutral Europe by the year 2050
(Siemens, 2022).
Though there are committees for making decision they can
sometime make mistake as well as they are making decision
based on data given to them but if they communicate effectively
and provide some type of incentives to the employees so they
can get more insights from employee’s perspective.

4.1Recommendation

 Decision making on sustainability should not be a single

sided decision rather all the entities in business should be
involved.
 The communication between employees and company
should be more effective.

5.Planning

Sustainability is most important for any business success and

for siemens it is the same case as sustainability can be used as
an opportunity for growth and it can only be achieved through
proper planning and with significant amount of data. Planning
certainly starts with making a route map of the goals a
company wants to achieve such as a roadmap to achieve net-
zero (Siemens, 2022).

The siemens uses the Digital mode to test the sustainability

prototype and make necessary changes where applicable. To
measure the progress done by siemens the company uses
previous achievements as a baseline to where they wish to go
in future and to measure these achievements the company
uses various tracking technology like sensors, Internet of
Things, Artificial Intelligent, cloud computing and Digital twins.
Digital twins are used by organisation to test sustainable
solutions. The digital twins can create a digital form of existing
operation plan with which the manager can make necessary
changes were needed. One of the companies in siemens uses
the digital twin’s technology to create a sustainable road to
reduce the company’s ambition to decarbonise its factories by
2030 (Siemens,2022).
The other way how siemens track their ESG is by having a
sustainability performance review and ratings. As per the
Figures 1 and 2 it shows that the company has been improving
as the rating from the Sustainability report from two consecutive
years shows that company has improved its practices to be
more sustainable.
Figure 1: Sustainability Rating for year 2021

(Source: Siemens Sustainability 2021)

Figure 2: Sustainability Ratings for year 2022

(Source: Siemens Sustainability 2022)
However, the company has planned everything and are working
towards it with digital way which just show them where they
need to improve but with continuous improvement through
planning, implementation and evaluation and make changes
and do it once again to get more precise area of improvement.

5.1Recommendations

 To track and make necessary changes to their plan the

company should have more delicate and detailed
approach to how they should improve their sustainability
approach.
 They should have more than one way to plan the
sustainability approach.
6.Support

Siemens is committed and determined to be sustainable and

has implemented various initiative to support it. There are some
ways siemens have been supporting sustainability as they have
embedded it in their business activities, investment decision
making and governance. The DEGREE framework is to take
ESG commitment to the next level. It also constitutes of 360-
degree approach to all the stakeholders, suppliers, investors,
people, society and our planet. The three aspects of ESG help
us to foster trustworthy culture, empowerment, growth,
supports inclusive economic opportunities. Siemens also
collaborates with the customer and partner to speed up the
progress towards achieving climate goals. The business to
society methodology is also used as a support where it can be
used to measure the social contribution in various dimensions.
At siemens the company believe that the sustainability can only
be achieved and practiced effectively is by constituting
voluntary pledge based on core beliefs. Siemens has a
sustainability in their supply chain’s code of conduct for
suppliers, third party and business partner are about making
the sustainable requirement more deeply embed into their
supply chain making it more efficient and effective.
Siemens is also focused on giving training to employees and all
this training was given through web-based on sustainability and
human rights in the supply chain for all its suppliers. The global
web-based training program were for environmental, social and
human rights. At siemens it is believed that continuous skill
building is most important. Siemens not only provide training to
employees, but they also provide training to suppliers, targeted
skill building activities for salesperson on regional and global
level, also for the specific group like compliance and
environment, health and safety. The refreshing training is given
every three years for the company employees (Siemens f,
2022).

Siemens expect its supplier to be obliged with the firm’s code

of conduct. The code of conduct is based on the United Nations
global compact and the siemens business conduct guidelines
which sets the principle for whole company. The company also
has a supplier’s code which respects the fundamental human
rights, health and safety, environmental protection and has a
zero tolerance for corruption and bribery.

6.1Recommendation

 The company should reduce the time frame for the

refresher’s training.
 There should be the feedback for the training course form
all the employees showing they have knowledge about it.
  There should be another form of training as well which
would provide them more practical training and which they
would use for making effective supply chain.

7.Operations

Siemens is committed to have a sustainability in its

production and operations. Product buy back is the trend
which siemens follows and keeping this trend into
consideration they have prepared the new eco-design
approach which would help make the operation sustainable
with neglecting the impact on environment (Siemens, 2022).
The Eco-design approach includes the resource efficiency
less CO2 emission in manufacturing, higher productivity and
efficiency when using and design of product which support
circularity. This is embedded in the DEGREE framework as
R where it stands for resource efficiency. The eco-design
enables one to identify environmentally compatible design
which takes circularity into account. To continuously assess
the outcome of the product the company have been
expanding its database for monitoring and communicating for
the products impact on environment.
With the eco-design initiative the company is implementing
new process of manufacturing, new resources and process
design which is helpful for the manufacturer to easily
 implement into the production process which can be helpful
for the company’s goal of reduction in the landfill waste by
2030. The siemens also have goal of having a clean supply
chain starting from sourcing the raw materials which they are
preventing to source form area of conflict or high-risk area
(Siemens, 2022). They are working towards the reduction in
CO2 in supply chain. They have separated the natural
resources and they have started promotion of using existing
raw materials and the product for a long term as possible
and in continuous cycle. Siemens also uses the renewable
energy source in their production processes which would
help them reduce their carbon footprint (Siemens, 2022).

Even though the company has an eco-friendly design

approach and many other sustainability in place but there are
areas where they need to put more focus and work towards it
to achieve their goal of less environmental impact.

7.1Recommendation

 Siemens should also invest more into renewable energy

source so that they can use in its manufacturing process.

 The company should also look for new methods or new

approach to reduce their carbon footprint.
8.Conclusion

In Conclusion, it is clear siemens have various ways to make

its supply chain and its operations sustainable. Siemens also
have operational strategy which is core centric to
sustainability. The company have been having the significant
impact on all three ESG factors. The Company is also
partnered with various prestigious business which can help
them achieve their goal. Siemens is also involved with
various government organisation. All the decision are being
taken by the sustainability committee at siemens and there
should be changes made as the employees and other parties
related to company should take part in the decision making.
There are plans in place for siemens to reduce its carbon
footprint and reduce the landfill waste generated by them.
The eco-friendly design for its product is a must as they help
the products to last longer and make the use of resource
more efficiently and effectively. The planning at siemens is
also about how they are managing and tracking their
progress through the digital medium and makes the changes
were needed also the progress is measured by comparing it
to the previous year’s achievement but there should be
made few changes as recommended to have more ideal
knowledge about the same. There are supports for all this
strategy which help them company achieve its objective.
 Also, the training should be given more often to the
employees. Investing in more renewable source of energy
can help the company to move closer to its decarbonisation
policy framework. There are various areas where the
company can improve its performance in order to have an
overall sustainability and continue to have a less impact on
the environment.

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