2.2 Sustainability governance and organization by addressing and financing (i) decarbonization and energy ations for the Siemens sustainability business in alignment efficiency, (ii) resource efficiency and circularity as well as with the Managing Board, EC SUS, and the CEOs. (iii) people centricity and social impact – with a focus on portfolio market segments and go-to-market topics, and it CEOs are ultimately responsible for all sustainability topics in meets on an ad hoc basis to discuss relevant subjects. their area of responsibility. This includes responsibility for Chaired by Siemens’ CEO, the EC SUS includes Siemens’ Chief the sustainability business, implementation of DEGREE, Sustainability Officer, the CEOs of key businesses, Chief sustainability reporting, the Sustainability Risk Due Diligence Strategy Officer, General Counsel, and Global Head of SUS. Process, and other related responsibilities. The Chief Sustainability Officer (CSO) oversees Siemens’ The CEOs of Digital Industries, Smart Infrastructure, Siemens sustainability topics. The CSO is a member of the Siemens Mobility, and Siemens Financial Services (SFS) are supported Managing Board, chairs the Siemens Sustainability Board by their respective Heads of SUS to achieve their sustainability (SSB), and is a member of the Sustainability Executive Com- mandates. The Heads of SUS also assist the Global Head of mittee (EC SUS). The CSO is also responsible for the Siemens SUS with their responsibilities in the Sustainability depart- Sustainability department. ment, as they pertain to their businesses. Heads of SUS have a governance reporting line to the Global Head of SUS in The Global Head of Sustainability (Global Head of SUS) leads addition to their reporting line to their respective CEOs. The the Siemens Sustainability department. In this capacity, the Heads of SUS are appointed by the respective CEOs, in align- Global Head of SUS reports to the CSO on all Siemens sus- ment with the Global Head of SUS. tainability topics excluding sustainability business and related strategy topics. For the latter topics, the Global Head In addition, the CEOs of the business units in Digital Indus- of SUS reports to Siemens’ CEO. The Global Head of SUS is a tries, Smart Infrastructure, Siemens Mobility, and SFS each regular member of the SSB. The Global Head of SUS regularly appoint Sustainability Managers who have a governance informs the Supervisory Board on sustainability matters. reporting line to the Heads of SUS and to their reporting line to their respective CEOs. The Siemens Sustainability department is responsible for developing our DEGREE sustainability framework in coordi- Lead Country SUS Managers support their respective Lead nation with the SSB, businesses, Service and Governance Country CEOs and their assigned countries. They also lead units, and countries and controlling the DEGREE target Siemens’ sustainability topics within the scope of responsi- achievements. Responsibility for sustainability reporting and bility of the Lead Country management. 1 the Net Zero Operations Program also lies with the Sustain- ability department. It also governs the purchase of carbon Our Service and Governance units are responsible for the offsets and the Sustainability Risk Due Diligence Process2. ongoing development of sustainability-related topics within The Sustainability department also supports sustainability their own mandate in line with the DEGREE sustainability initiatives with scalability across Siemens. This includes framework and regulatory and organizational requirements. developing the processes, training, and tools needed to address overarching sustainability topics for our countries, Lastly, Sustainability Risk Due Diligence Subject Matter businesses, and Service and Governance units in collaboration Experts are appointed by and support Digital Industries, with other Siemens organizations. Finally, the Sustainability Smart Infrastructure, Siemens Mobility, and SFS to responsibly department is responsible for developing strategic consider- conduct the Sustainability Risk Due Diligence Process. 1 Siemens has established the Net Zero Operations Program, which is comprised of a series of greenhouse gas (GHG) emission reduction initiatives targeting real estate, production, our vehicle fleet, and related topics to address our commitment to GHG reduction under the DEGREE ambition “Net Zero Operations by 2030.” For more details, see chapter 4.1 Climate action. 2 Siemens has established the Sustainability Risk Due Diligence Process to ensure that environmental, social, and associated human rights and reputational risks (Sustainability Risks) are appropriately assessed and mitigated. The Sustainability department, as the governance owner, has established minimum company-wide standards for the Sustainability Risk Due Diligence Process in our customer-related business that are applicable to the businesses and SFS. SIEMENS SUSTAINABILITY REPORT 2023 24