Introduction: Strategic Vision and Governance
Siemens AG has long been a vanguard of sustainable development within the industrial sector, integrating environmental, social, and governance (ESG) considerations into its core strategy. The company’s latest 2024 Sustainability Report emphasizes a holistic approach that aligns with the United Nations Sustainable Development Goals (SDGs), notably in climate action, clean energy transition, and digital transformation for sustainability.
The governance structure comprises a Sustainability Board Committee, directly overseen by the Executive Board, ensuring sustainability is embedded in corporate decision-making, operational management, and risk assessment. Siemens commits to carbon neutrality by 2030, with intermediate targets of a 50% reduction in Scope 1 and 2 emissions by 2025, compared to baseline 2019 levels. The company also aims to improve resource efficiency by 30%, including water, energy, and raw materials.
Decarbonization and Climate Goals
Siemens’ pathway to decarbonization is backed by significant investments in renewables, power grid modernization, and innovative technologies:
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Total renewable energy procurement exceeds 8.5 TWh annually, supporting 70% of global electricity consumption in 2024.
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The company’s scope 1 and 2 emissions in 2024 amounted to only 3.3 million metric tons of CO₂, a 52% decrease since 2019.
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Scope 3 emissions, primarily from supply chain and product use, are under active management with suppliers committing to Science-Based Targets (SBTs), contributing to a projected 40% reduction in lifecycle emissions by 2030.
Green Innovation & Circular Economy
Siemens leads in the industrial digital transformation, deploying intelligent energy management systems, and electric mobility solutions:
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The company installed over 120 GW of smart grid capacity, reducing grid losses by 15% in high-density urban areas.
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Circular economy initiatives include reuse of 85% of processed metals and recycling of 78% of waste at manufacturing sites. The “Green Factory” certification is achieved for 60% of their factories.
Water and Resource Efficiency
In 2024, Siemens’ go-green initiatives resulted in:
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Water reductions of 38%, mainly through recycled water use and process optimization.
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Decreased raw material consumption per unit by 20%, driven by digital manufacturing workflows and supplier product design improvements.
Social Responsibility and Stakeholder Engagement
The company has expanded its social responsibility initiatives:
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Diversity and inclusion programs reached 80% workforce participation.
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423,000 community beneficiaries in STEM (Science, Technology, Engineering, and Mathematics) programs globally.
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Total safety incidents reduced by 27%, with a goal for zero accidents by 2030.
External Recognition and Future Outlook
Siemens maintains top ratings in DJSI World, EcoVadis Platinum, and CDP A-list rankings in climate and water. The company’s forward strategy involves further digital integration, stronger supply chain decarbonization, and expanding renewable energy assets.
Corporate Sustainability Benchmark: Unilever PLC (UK/Nederland)
Introduction: Strategic Focus and Governance
Unilever’s 2024 Responsible Business Report illustrates a pioneering approach embedded in a governance framework led by a Chief Sustainability Officer and a dedicated Sustainability Committee. The company prioritizes SDG alignment, with measurable targets across climate, waste, water, and social equity. Its Responsible Living Plan has evolved into the “Compass” strategy, emphasizing regenerative agriculture and social inclusiveness.
Climate and Environmental Actions
Unilever committed to achieving net zero emissions across its value chain by 2039, with interim milestones:
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A 65% reduction in Scope 1 and 2 emissions since 2020.
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In 2024, absolute GHG emissions declined by 15% year-on-year, totaling 7.2 million tonnes CO₂e.
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Supplied renewable energy to over 70% of factories, with ongoing supplier engagement to reach 100% by 2030.
Circularity and Sustainable Packaging
In 2024, Unilever reported:
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84% of packaging collected and recycled, up from 72% in 2020.
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65% recycled content in packaging, with a goal of 100% by 2030.
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Launched “Plastic-Free by 2025” initiatives, reducing virgin plastic use by 30%.
Water and Resource Use
The company reduced water use by 29% per tonne of production, employing:
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Water-efficient process design.
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Improved effluent treatment and watershed restoration programs, impacting 2 million people.
Social Impact & Equity Initiatives
Unilever’s social programs benefit over 13 million low-income consumers mainly in emerging markets:
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Commitments to ensure 50/50 gender parity in management roles by 2030.
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A Health & Well-being index shows a 22% increase in employee wellness scores.
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Extensive supply chain monitoring ensures fair wages with 85% of suppliers audited for ESG compliance.
Transparency & External Validation
Unilever’s sustainability disclosures are externally assured and aligned with GRI Standards, SASB, and TCFD, with a clear focus on double materiality principles. Its comprehensive “Sustainability Scorecard” provides real-time updates and stakeholder access.
Corporate Sustainability Benchmark: TotalEnergies SE (France)
Introduction: Climate Transition Focus and Corporate Strategy
TotalEnergies’ 2024 Sustainability & Climate Report emphasizes its transition from fossil fuels to renewable energy, with a strategy aligned with Europe’s Net Zero 2050 commitments. The company maintains a strong focus on integrating ESG risks and opportunities into its governance structure, with a dedicated Climate Committee reporting to the Board.
Emissions and Decarbonization Strategy
In 2024, TotalEnergies reported:
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A 40% reduction in Scope 1 and 2 emissions since 2019, totaling 60 MtCO₂e.
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A projected 20% decline in Scope 3 emissions through supply chain decarbonization initiatives.
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Investments of €3.5 billion in renewable projects, increasing total renewables capacity to 10 GW.
Energy Transition & Product Innovation
TotalEnergies is expanding its renewable portfolio:
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The commissioning of 5 GW of new wind and solar projects in Europe and Africa.
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Deployment of over 1,000 EV charging stations in Europe, supporting climate-friendly mobility.
Water and Waste Management
The company improved water efficiency by 33%, particularly in tropical plants and offshore platforms. Waste recycling rate reached 92%, with zero waste to landfill in 60% of operated assets.
Social Responsibility and Local Community Impact
TotalEnergies invests heavily in social infrastructure:
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€500 million allocated in 2024 for local community projects.
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45,000 employees trained annually on safety and eco-efficiency.
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Stakeholder engagement program with over 1,200 community consultations.
External Validation and Future Goals
The company boasts top ratings from CDP (A- List) and EcoVadis Gold. It aims to reach 30 GW of renewable capacity and achieve net zero across all operations and supply chains by 2050.
Resources for Further Analysis
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Siemens AG Sustainability Reports:
https://new.siemens.com/global/en/company/sustainability/reports.html -
Unilever Responsible Business Strategy:
https://www.unilever.com/sustainable-living/our-strategy/ -
TotalEnergies Climate & Sustainability:
https://totalenergies.com/sustainability/environment
