The worldwide demand for electricity is expected to rapidly increase, this paired with the impact of climate change makes the sustainability of the energy sector a matter of urgency.
Siemens Energy is following an ambitious strategy to drive decarbonization with targets across the value chain that are approved by the Science Based Targets initiative (SBTi). We have the technology, innovations and expertise and are working with our customers, suppliers, and partners to transition to a more sustainable world.
We have an aspiration to reach net zero across the entire value chain, in line with a 1.5°C pathway.
Decarbonized products, services and solutions for our customers
Our biggest lever for decarbonization is through our portfolio of products that help our customers reduce their emissions. Our goal is to reduce absolute scope 3 greenhouse gas emissions from use of sold products 28% by 2030 from a 2019 base year [SBTi approved].
The bulk of emissions will be reduced through measures such as portfolio adjustments, fuel shifts and emission removal technologies. We expect most of our emissions reductions from sold products will happen after 2030, as we expect markets and technologies still need to mature and scale. This has been demonstrated through a portfolio emissions reduction measures review to achieve net zero (read more in our 2022 Sustainability Report).
Decarbonized Supply Chain
Our goal is to reduce our relative Scope 3 GHG emissions from purchased goods and services as well as transportation and distribution by 30% per procurement volume (€ spent) until 2030 based on fiscal year 2018.
We are partnering with our suppliers to decarbonize our supply chain and run our Carbon Reduction@Suppliers Program in cooperation with an external service provider. The program offers an economic model based on an input/output analysis that identifies the CO2 footprint of all suppliers.
To increase transparency regarding supplier engagement for decarbonization in 2022, we encouraged more than 2,000 suppliers to participate in our decarbonization due diligence assessment and report on their measures.
Climate-neutral in own operations
We have committed to become climate neutral in own operations by 2030 and have launched our Climate Neutral Program to achieve this ambitious target. This includes reducing absolute scope 1 and 2 greenhouse gas emissions by 46% by 2025, compared to 2019.
Our levers are:
- 100% of Siemens Energy’s global electricity consumption should be met by power from renewable sources by 2023.
- Reducing the consumption of primary energy. We have energy efficiency projects in place at various locations for buildings and process optimization.
- Reducing SF6 emissions, with the expansion of our Blue Portfolio, together with the stringent measures in our facilities, we have set ourselves the target to reduce our SF6-related emissions by 60% by 2030 compared to a 2019 baseline.
- New mobility concepts, we are aiming for 100% CO2-neutral benefit cars by 2030 through implementation of our car policy globally.
SGRE achieved carbon neutrality in its own operations at the end of fiscal year 2019. It expanded its ambitions to Climate Neutral by 2030 without offsets and Carbon positive by 2040.