Monitoring and measurement
Worldwide reporting platform for environmental protection data
In 2001, Siemens began to build an intranet-supported environmental database in order to accommodate the growing demands for environmental reporting. The relevant data from several hundred locations and organizational units around the world is entered into this database. With the addition of fire and radiation protection, the database was further developed to serve as the reporting platform for the Siemens Environmental and Technical Safety Information System (SESIS).
All Siemens sites that exceed one of the resource consumption, waste output or emissions thresholds shown in the table below are required to submit environmental reports:
This requirement applies to R&D and office locations just as much as to manufacturing facilities.
The data, which is collected once a year, forms the basis for monitoring the company’s environmental performance and producing environmental reports. It also enables us to set quantifiable environmental goals. Newly built or acquired locations must be integrated into this information system within three years.
Besides collecting the environmental data, we also conduct a yearly evaluation to measure the progress made in refining the environmental management systems of the production sites. This evaluation, which is performed in accordance with the international standard ISO 14001, was expanded in 2007 to include integrated environmental, health and safety management systems.
In 2007, we also introduced the new category of “product-related environmental protection” within the SESIS tool. In this regard, information has been collected on the following topics, differentiated by divisions and relevant business units:
- Products and solutions of the environmental portfolio
- Sector-specific programs for phasing out and substituting critical substances
- Environmental product statements and declarations
- Implementation of the Siemens norm “SN 36350 Environmentally Compatible Products/Design for Environment“
- Recycling/take-back of used equipment
- Management systems
- Life cycle analyses
- Packaging
Methodology and data analysis
Considering the sheer breadth and diversity of the production and service operations of Siemens, one of the greatest challenges of the last few years has been to devise a method for measuring and comparing the environmental performance of Siemens’ many locations. The environmental relevance of our various activities, including transport systems, power plants and technology, industrial automation and drive systems, medical equipment and systems, lighting technology, building systems and communication technology, varies widely and this diversity must be taken into account when evaluating our environmental performance.
In addition, Siemens is continually buying or selling production sites and even entire subdivisions. If a subdivision with a significant environmental impact, such as semiconductor technology (Infineon), is acquired or sold, this will of course have a major statistical impact. A recent example is OSRAM, where the increase in absolute energy consumption figures in 2005 was clearly due to the integration of OSRAM Sylvania, the US branch of OSRAM.
The biggest challenge in assessing environmental performance at the corporate level is the lack of across-the-board comparability. That is because the list of sites belonging to Siemens changes from year to year. The chart below illustrates the dynamic nature of Siemens’ portfolio of production plants.
- P05: Number of sites that reported environmental data in SESIS in fiscal 2005.
- P06: Number of sites that reported environmental data in SESIS in fiscal 2006.
- A06: Number of sites that belonged to Siemens in fiscal 2005 and 2006 and reported environmental data in SESIS in both years.
- B05: Number of sites that left Siemens before fiscal 2006 and reported environmental data in 2005 but not in 2006.
- C06: Number of sites that reported environmental data for the first time in fiscal 2006.
We use local plant revenues to scale the environmental data. This puts the environmental impact in relation to the generated value. This results in the following formula, which helps us to calculate the portfolio-adjusted change in environmental performance:
We currently look at the following parameters:
- Electricity
- Fossil fuel
- CO2 equivalents
- Water
- Waste
The change in environmental performance can only be analyzed for sites that belonged to Siemens in both years and also reported data in both years. This is the same concept that forms the basis for defining environmental goals. The aim of the environmental programs is to improve the environmental performance of the individual sites – not to reduce the environmental impact by cleverly selecting parts of the portfolio. It is not Siemens’ goal to limit itself to subdivisions that do not have a significant environmental impact or to separate those that do.
We report on our environmental performance in our current Sustainability Report.
Greenhouse gas reporting
Considering the wide-ranging demands of external stakeholders, Siemens decided in 2007 to model its greenhouse gas reporting after the guidelines of the WRI/WBCSD (World Resource Institute/World Business Council for Sustainable Development, March 2004). In our calculations, we apply the following system:
- The emissions are extrapolated to 100% if the collected data does not cover all of Siemens.
- The data from prior years was adjusted in that the emissions of those locations that have since been sold were removed. In the absence of exact data, the emissions of purchased locations in prior years were estimated and added to the time series.
- The baseline year for the time series is fiscal year 2005.
The exact method is documented in our guidelines for calculating greenhouse gas emissions. Further information regarding our greenhouse gas emissions is available in our current Sustainability Report.
Audits and management evaluation
Regular audits of our locations
Siemens has chosen a graduated approach to auditing its management system. On the location level, internal and external environmental audits are conducted every year in connection with the environmental management systems according to ISO 14001. In addition, audits are conducted on all company levels and in those organizational units for which an environmentally responsible manager has been designated, that is, which have a certain environmental relevance.
The frequency of these audits depends on the maturity of the respective management system and the environmental relevance of the respective location. They are conducted at intervals ranging from once every three years to once a year. The maturity of the environmental management system is determined on the basis of previous audits and the self-assessments conducted in connection with SESIS.
Evaluation by the senior management
Once a year, the Managing Board member that has been designated as the senior executive in charge of environmental protection evaluates the goal achievement of the past year, the status of ongoing projects and the strategies for the coming year, as part of the Management Review process. The management information is further supplemented with quarterly reports.