2024
Siemens
Year
Sector
Groupe diversifié
ACT assessment methodology
Generic
Performance Score
Siemens presents a transition plan with relevant measures, but it remains very incomplete. The company has SBTi validated targets across its 3 scopes, but it could be more transparent about the amount of emissions related to the vehicle fleet by engine type and the building stock in order to refine the assessment of Scopes 1 & 2. As a designer of products and infrastructures with a wide variety of sizes and heterogeneous lifespans, the development of a vision of emissions broken down by product categories is essential to develop a transition plan. Establishing the most emitting product categories and their life cycle phases would help identify specific actions and the most relevant eco-designed options for decarbonisation.
Otherwise, Siemens' upstream and downstream emissions tend to decrease, which makes it possible to assess the company's ability to act positively on its value chain and the performance of its products. However, positioning its contributions to decarbonization for each of the sectors in which it operates would provide a better view of the company's long-term direction and strategic choices to adapt to the requirements of a low-carbon world.
At the level of its value chain, Siemens structures a supplier strategy that encourages its main suppliers to measure, monitor and report their GHG emissions. However, no concrete actions or objectives are expected from Siemens beyond the declarative aspects, and the implementation of these actions is not quantified. Regarding its customer commitment, Siemens measures its avoided emissions using a publicly available methodology based on the World Business Council for Sustainable Development (WBCSD) criteria. However, it does not mention quantified targets, KPIs monitored for the actions mentioned, or concrete commitment plans beyond the accounting of avoided emissions.
Otherwise, Siemens' upstream and downstream emissions tend to decrease, which makes it possible to assess the company's ability to act positively on its value chain and the performance of its products. However, positioning its contributions to decarbonization for each of the sectors in which it operates would provide a better view of the company's long-term direction and strategic choices to adapt to the requirements of a low-carbon world.
At the level of its value chain, Siemens structures a supplier strategy that encourages its main suppliers to measure, monitor and report their GHG emissions. However, no concrete actions or objectives are expected from Siemens beyond the declarative aspects, and the implementation of these actions is not quantified. Regarding its customer commitment, Siemens measures its avoided emissions using a publicly available methodology based on the World Business Council for Sustainable Development (WBCSD) criteria. However, it does not mention quantified targets, KPIs monitored for the actions mentioned, or concrete commitment plans beyond the accounting of avoided emissions.
Narrative Score
Business model and strategy: Siemens is a group of technology companies with a portfolio designed to drive the digital and sustainable transformation of industry, infrastructure, transportation and healthcare. Thanks to a range of products with adapted technology, they allow their customers to minimize their GHG emissions.
Consistency and credibility: Although the group's emissions are on a downward trend, the transition plan remains not very credible because the objectives and the means to achieve them are not sufficiently clear, particularly on scope 3, which accounts for the majority of the company's emissions.
Data quality: Public information remains partial or even very limited, in particular on the details of products sold, produced, especially the most emissive. It is therefore very difficult to assess the real transition and the impact of the actions undertaken.
Reputation: Controversy related to Siemens' involvement in a coal mine project in Australia. This project calls into question the credibility of Siemens' commitments regarding its low-carbon strategy. Siemens has maintained its participation in the project, explaining that it wants to "respect the word given" in order to "remain credible".
Risks: Even though the products sold by Siemens may perform well in areas such as energy efficiency, circularity or sustainability, there is a risk that they may not be eligible for some customers with high environmental standards, due to the lack of transparency of environmental performance indicators.
Consistency and credibility: Although the group's emissions are on a downward trend, the transition plan remains not very credible because the objectives and the means to achieve them are not sufficiently clear, particularly on scope 3, which accounts for the majority of the company's emissions.
Data quality: Public information remains partial or even very limited, in particular on the details of products sold, produced, especially the most emissive. It is therefore very difficult to assess the real transition and the impact of the actions undertaken.
Reputation: Controversy related to Siemens' involvement in a coal mine project in Australia. This project calls into question the credibility of Siemens' commitments regarding its low-carbon strategy. Siemens has maintained its participation in the project, explaining that it wants to "respect the word given" in order to "remain credible".
Risks: Even though the products sold by Siemens may perform well in areas such as energy efficiency, circularity or sustainability, there is a risk that they may not be eligible for some customers with high environmental standards, due to the lack of transparency of environmental performance indicators.
Trend score
The lack of public data makes it difficult to assess the trend, between ambitious but imprecise objectives and fragmented information on the means implemented to achieve them.
Siemens' emissions trajectory is down slightly (-2%) on its value chain, which accounts for the majority of emissions. However, it does not have a specific target for the bulk of scope 3 emissions, nor a strategy that directly addresses emissions in the product mix.
Although Siemens' business model is aligned with a transition to a low-carbon economy, the group lacks essential elements of its climate strategy to ensure the reduction of its emissions in the coming years. However, it seems unlikely that Siemens' rating will deteriorate because it is mostly pulled down by the lack of available data, more than by the lack of ambition or structuring of its transition plan.
Siemens' emissions trajectory is down slightly (-2%) on its value chain, which accounts for the majority of emissions. However, it does not have a specific target for the bulk of scope 3 emissions, nor a strategy that directly addresses emissions in the product mix.
Although Siemens' business model is aligned with a transition to a low-carbon economy, the group lacks essential elements of its climate strategy to ensure the reduction of its emissions in the coming years. However, it seems unlikely that Siemens' rating will deteriorate because it is mostly pulled down by the lack of available data, more than by the lack of ambition or structuring of its transition plan.
Source
ACT Eval 2
Evaluator
CITEPA
GLOBAL SCORE
Performance score (/100)
40
Disclosure score (/100)
84
ℹ️
Narrative Score (A > E)
C
Trend Score (- = +)
=
Scores by module
#1 : best score in the sample
N/A% = module not applicable to the sectoral methodology
Target Score : 55%
Material Investment Score : 25%
Intangible Investment Score : 38%
Sold Product Performance Score : 33%
Management Score : 52%
Supplier Engagement Score : 54%
Client Engagement Score : 39%
Policy Engagement Score : 66%
Business Model Score : 18%
Indicator weight by module