What was the challenge?
Siemens plc has long been committed to taking corporate action on climate change and has been a Carbon Trust Standard bearer since 2010. However, it wanted to achieve more, including reducing emissions beyond its production facilities and enabling its customers to maximise carbon savings, as part of its ambition to become the first global industrial company to be carbon neutral by 2030.
To achieve this, it required an impartial review of its current activities as well as help in identifying opportunities across its entire value chain, the potential for the enablement of avoided emissions, and the scope for innovation and influencing.
How did we help?
To help Siemens plc achieve this, we used our newly developed Climate Leadership Framework which is designed to give companies a step-by-step guide to aligning business models with a net zero economy. The Framework cuts through complexity to provide an impartial, ‘outside-in’ view of sustainability maturity, plus a map of key opportunities to align to a net zero future. It also provides powerful opportunities for internal collaboration and engagement, is resource efficient, and results in a tailored roadmap that ensures practical progress is achievable.
We undertook a comprehensive review of current performance, and then assessed this against the key stages on a company’s journey to net zero. Following the analysis phase, the findings were then presented back to Siemens’ senior stakeholders.
The Framework highlighted three key areas for Siemens to focus on:
- upstream emissions reductions within the value chain – such as energy and procurement
- emissions from Siemens’ own operations (such as fuel and electricity)
- downstream emissions (i.e. product lifecycles and investments)
A series of interactive workshops were held with Siemens’ senior leaders, including Carl Ennis, CEO, Siemens plc and Smart infrastructure Great Britain & Ireland, plus the business unit heads from key departments, including supply chain and business development. This engagement phase provided leaders with the opportunity to review where Siemens can have most impact over the next 10-20 years. From this, a roadmap was co-created – setting out priorities for immediate, medium and long-term carbon mitigation.
What were the benefits?
The Climate Leadership Framework provided Siemens with a comprehensive view of the organisation, and an ambitious roadmap to align its business with a net zero economy.
“We wanted to be challenged and the Framework certainly did that; giving a clear picture of our status – and the gap that we must close to be a climate leader. This gave us a reality check on the transformational potential to tackle emissions in our supply chain,” confirmed Sarah Jones, Environment Manager, Siemens plc. “We can’t do everything now – so the Framework helped us to identify key challenges shared with our customers – since through creating synergies with our customers we can maximise our impact.”
“The Climate Leadership Framework provided the most comprehensive view of the organisation’s current and potential decarbonisation impact to date. The impartial lens of the Framework challenged our systems and ambition. Plus, the Carbon Trust’s track record enabled them to steer us to low carbon scenarios based on the experiences of other organisations outside of our sector, who face similar challenges.” added Jones.
Engaging with the Framework also helped Siemens to align with CDP, as well as support preparatory work on Task Force on Climate-related Financial Disclosure (TFCFD) reporting.
Significantly, the Framework also mapped the ‘enablement effects’ of Siemens’ model for the first time, revealing how it is broadening the reach of corporate carbon reduction impacts beyond its value chain. For example, Siemens is enabling carbon reduction in the automotive sector, by expanding the roll-out of its eMobility Charging technology beyond homes and businesses – to installers of lamppost charging systems – effectively democratising eMobility and accelerating the uptake of electric vehicles.
Enablement is a key focus for Siemens going forward, the strategic importance of which has brought out by using the Climate Leadership Framework.