Assisting Siemens on their route to Net Zero

Client

Siemens logo

Expertise

Assurance and labelling

Impact

Establishing clarity on climate progress made to date, its impact and the road ahead.

Siemens house
Challenge 

How can a global conglomerate keep track of their climate progress?

Net Zero commitments are gaining ground. But climate targets require substance and must be backed by action if they are going to have an impact. Net Zero is about more than commitments; it is about implementing credible strategies, measuring progress and asking the right questions. Do we have the right processes in place to achieve our targets? What impact have our decarbonisation efforts had to date? And are we on track to meet these targets? 

Siemens plc understood these questions first-hand. Its parent company, Siemens AG, had recently restarted its Carbon Neutral Program with the goal to reach a Net Zero carbon footprint. To help achieve this multinational corporate goal, Siemens plc wanted to certify its climate progress. As part of this, it sought to assess the impact of its decarbonisation efforts, communicate progress and steer its course towards Net Zero.

Having worked with the Carbon Trust since 2011, Siemens plc joined the Route to Net Zero Standard.

The Route to Net Zero Standard

The Carbon Trust’s Route to Net Zero Standard enables businesses to plan their route map to get to Net Zero while verifying their progress to date. Companies that qualify for the Standard will have their carbon reductions independently verified and scored against one of the three assessment tiers: Taking Action, Advancing and Leading, designed to increase ambition over time and to provide guidance to stay on track with science and best practice. 

To qualify for the foundational Taking Action tier, companies must demonstrate: 

  • Three years of annual carbon footprints for Scope 1, 2, and business travel (Scope 3, Category 6) and historical reductions.
  • Foundational carbon management practices in place, such as a public emissions reduction target.

The Carbon Trust helps companies progress on this sustainability journey, providing a robust assessment process and tailored recommendations. The Standard encourages companies to progress their climate action and achieve the highest tier. To achieve this, companies will have leading practices in place, e.g.:

  • Measured and high-quality Scope 1, 2 and 3 footprints.
  • Reduced their Scope 1 and 2 emissions in line with a Net Zero pathway. 
  • Set a qualifying Net Zero target that is public and aligns with science. 
  • Have leading carbon management practices in place, including a detailed carbon reduction strategy and implementation plan.
  • Quote Icon

    Across the EU and beyond, regulations around sustainability are tightening. They reiterate the need for financial institutions and businesses alike to better understand the synergy between futureproofing their organisation and taking climate action.

    Veronika Thieme
    Associate Director, Europe, The Carbon Trust
    Veronika Thieme
  • Quote Icon

    EU regulation reiterates the need for financial institutions and businesses alike to better understand the synergy between futureproofing their organisation and taking climate action. Uncovering potential risk and opportunity blind spots helps businesses understand how they can remain relevant in a Net Zero world.

    Veronika Thieme
    Associate Director, Europe, The Carbon Trust
    Veronika Thieme
  • Quote Icon

    We see countless examples where investment managers need to get a deal approved by an investment committee in less than one week. Climate due diligence is essential, but it shouldn’t be a blocker. It’s important non-sustainability experts have the tools and confidence to check climate credentials and prevent unnecessary delays that may result in financial institutions passing on qualified sustainability investments.

    Tom McKeith
    Consultant, Corporate Sustainability, The Carbon Trust
    Tom McKeith
    • Solution

    Certifying progress in climate action

    Since Siemens plc already had taken significant steps in its climate journey, they were well placed to join the Standard. The goal was to assess Siemens plc progress and current position against a Net Zero pathway. To capture a clear and transparent picture, we:

    Value chain

    Verified* the quantitative carbon emissions reductions achieved to date. We assessed Scope 1 and 2 emissions alongside any emissions emitted from business travel. It showed Siemens plc had cut its organisational footprint well over 30% in just two years.

    Identifying data

    Analysed existing policies, governance structures, reporting processes, carbon data collection methods and environmental projects in place. This review measured whether Siemens plc has the right processes in place to minimise its footprint year-on-year.

    Carbon accounting

    Issued Siemens plc with our Taking Action certification. We offered a set of recommendations and low-hanging fruit actions that will help the company advance to the next tier of the Standard.

    Reporting

    Assessed how Siemens plc current sustainability strategy tracks against a Net Zero pathway. Here, we identified gaps in the sustainability strategy for Siemens plc to address if it wants to cut further emissions.

    *Verified to ISO 14064-3

    Impact

    Building confidence in climate progress and the road ahead

    The Route to Net Zero Standard goal is to help organisations like Siemens to measure and manage their emissions, inform carbon reduction strategies, and create climate targets fit for the future. Through this third-party verification and gap analysis, Siemens plc became one of the first companies accredited with this Standard. It enables the company to:

    Icon - handshake

    Inspire trust in Siemens plc climate commitment. The company can now back its sustainability claims with factual and verified data.

    Communication icon

    Gain clarity on how it can further cut emissions and engage with stakeholders on climate action. Some of the actions identified were low-hanging fruits, which will lead to important progress.

    people

    Bolster internal support for Siemens plc sustainability strategy. The team can now clearly justify how it will contribute to the company’s wider carbon neutral target.

    Quote Icon

    The objective feedback and practical guidance are some of the things we have valued throughout our partnership with the Carbon Trust. It is why we decided to track our climate progress via the Route to Net Zero Standard. The gap analysis, which identified areas for improvement, was especially helpful. Its findings will be instrumental in our climate journey ahead. We can now clearly communicate this progress and outline the next steps we still need to take to fulfil our climate pledges.

    Olivia Whitlam
    Head of Sustainability, Siemens plc