2.1 Materiality assessment 2.1 Materiality assessment – Materiality assessment based on GRI 2021 Identifying and prioritizing the topics – 15 material sustainability topics of the greatest In 2023, Siemens conducted internal workshops to help relevance to Siemens identify our material topics by assessing their impacts, risks, – Material impacts, risks, and opportunities as part and opportunities from two different perspectives: of our strategic considerations → Inside­out perspective: Siemens took a closer look at its positive and negative Key topics as guiding principles impacts on the environment and society (inside-out) caused Our materiality assessment is based on external frameworks by the company’s business activities. like the UN Global Compact and the Standards of the Global Reporting Initiative (GRI 2021), which are the foundation for During the inside-out assessment, we identified actual and our reporting. The key topics covered in this report are struc- potential positive and negative impacts for 17 sustainability tured based on ESG. topics and evaluated them according to their likelihood and their severity. Based on evaluations of the individual impacts, Materiality assessment our material topics were derived. These topics are the foun- We updated our materiality assessment with an emphasis dation for determining the content of the GRI report. Including on our industrial businesses Digital Industries, Smart Infra- the outside-in perspective (see below) does not alter the structure, and Mobility in fiscal 2023 based on the GRI 2021 results. standards. Our aim was to identify our company’s key eco- nomic, ecological, and social impacts on the environment The material topics where Siemens can exert the greatest and society in accordance with the updated GRI Standards. influence on society and the environment are climate action, The resulting topics also align with Siemens Healthineers’ social and ecological standards in the supply chain, and (SHS) material topics, which were determined in an indepen- sustainable product design and lifecycle management. These dent materiality assessment. topics received the highest scores in this year’s analysis. The material topics form the framework for implementing → Outside­in perspective: sustainability in the company – at the central corporate The outside-in perspective refers to sustainability topics that level, in our business units, and in the countries. Siemens can be associated with opportunities and risks for the strives to continuously improve sustainability management company’s business activities or financial situation. This and understands the materiality assessment to be a prereq- - perspective was taken into account in the inside-out per uisite for identifying and managing potential opportunities spective in order to introduce the double materiality principle and risks. The Siemens business units derive their key action of future regulation. areas from the requirements and basic conditions of their local markets. The material sustainability topics with the highest degree of influence on our business activities and the generation of lasting value are climate protection and sustainable product design and lifecycle management. SIEMENS SUSTAINABILITY REPORT 2023 21