1.3 Strategy People centricity & societal impact Social: Equity, Employability We enable our partners and customers to improve people’s Equal treatment and respect are the core of our corporate lives today and transform the backbone of societies for a values. Our goal is to position Siemens as the inclusive better tomorrow. For instance, our technologies support the employer of choice in all our relevant talent markets. We well-being, productivity, safety, and security of building foster diversity, equity, inclusion, and community develop- tenants and operators. Similarly, in the field of mobility, ment in order to create a sense of belonging and a healthy passengers and operators benefit from greater safety and and safe environment where all our people can give their convenience thanks to our technologies. They also promote best. At Siemens, we invest in the education, development, the socioeconomic development of communities by enabling and individual growth of our people. We maintain a strong access to basic goods, resilient electric power, affordable real focus on digital learning, employee assistance programs, estate, food and water, healthcare, education, and public and occupational health and safety. transportation. Governance: Ethics, Governance DEGREE: High ambitions for sustainability At Siemens, we believe that the way we do business is as Sustainability is integral to our business and influences important as our business success. Our values and ethical everything we do. The DEGREE sustainability framework principles are embedded in our Business Conduct Guidelines, defines our comprehensive approach to sustainability. Across which are mandatory throughout the company. In addition six fields of action, the framework defines clear priorities for to embedding these principles in our own management us in key sustainability areas that we drive in our own oper- systems, we extend them to our suppliers who are required ations and in collaboration with our partners, suppliers, and to follow a comprehensive Code of Conduct. Beyond that, customers. We continuously develop these priorities and we have made sustainability criteria an integral part of our 1 ambitions while fully integrating the expectations of all our long-term variable compensation programs for both the 2 stakeholders. The fields of action are defined along the Managing Board and our senior management. dimensions of Environment, Social, and Governance: The DEGREE sustainability framework applies to Siemens AG Environment: Decarbonization, Resource efficiency apart from Siemens Healthineers (SHS), which is an indepen- As part of DEGREE, we have set high ambitions to signifi- dent stock-listed company. In its sustainability concept, SHS cantly reduce CO e emissions in Siemens’ operations and pursues the same values as Siemens AG, because they repre- 2 upstream supply chain. Our approach to resource efficiency sent our expectations as the majority shareholder. SHS’s own accelerates recycling and promotes a more circular business. sustainability approach is described in a dedicated report. Our software and simulations reduce the use of substances OUR DEGREE SUSTAINABILITY FRAMEWORK of concern and other resource usage and introduce recycled materials as early as the design and simulation phases of our products, factories, and solutions. In addition, we promote the decoupling of natural resource consumption from eco- nomic growth by increasing the amount of secondary materials that we purchase. 1 Assessment based on the Siemens internal ESG/sustainability index, which is based on customer satisfaction (Net Promoter Score), CO reduction, and digital learning hours. 2 2 Siemens without SHS. SIEMENS SUSTAINABILITY REPORT 2023 19