4.1 Climate action At Siemens we have developed our own method that meets indirect decarbonization impacts, we refrain from including our standards for high-quality and transparent metrics. We the avoided emissions from enabling technologies in our calculate the avoided emissions for all products and services overall customer avoided emissions total of 190 million sold and investments made by Siemens in each fiscal year metric tons of CO2e emissions. over the course of their entire use phase at our customers. This approach aligns with the accounting principles defined Investment-related emissions for calculating Scope 3 emissions (Scope 3.11 Use of sold The financing solutions provided by Siemens Financial Ser- products) in the GHG Protocol. For a detailed description of vices (SFS) fund infrastructure projects and technologies our methodology for calculating customer avoided emis- that make a contribution to decarbonization. Specifically, sions, please see REPORTING PRINCIPLES FOR CUSTOMER AVOIDED SFS provides equity and debt financing solutions to support EMISSIONS. projects with a total installed capacity of 27,500 MW of wind energy, 14,900 MW of solar energy, and 2,400 MW of other In fiscal 2023, we helped our customers avoid 190 million renewable energy production technologies (including battery metric tons of CO e emissions. The Siemens technologies storage) worldwide. In fiscal 2023, SFS Equity Finance also 2 that make the largest contribution to the avoidance of CO2e invested in carbon removal companies to support innovative emissions at our customers are frequency converters, rail- solutions and technologies that actively remove CO2e from bound passenger and freight transportation, and building the atmosphere. systems. Where SFS agreed to finance fossil power generation projects in fiscal 2023, its financial contributions corresponded to Avoided emissions at our customers about 3 million metric tons of CO e over the expected 2 Fiscal Year duration of the financing of these projects (Scope 3.15 (in million t CO -equivalent) 2023 2022 investments). 2 Siemens 190 153 Carbon offsets Our internal offsetting policy has established binding guide- When applied alone, this metric does not reflect all of our lines for procuring carbon offsets. This policy aims to ensure portfolio’s positive impacts on our partners and customers. consistency and quality in offset programs. The carbon off- Software, electrification, and automation technology and sets derived from projects for removing or avoiding CO e 2 other “enabling technologies” play a crucial role in achieving emissions must meet minimum quality criteria, including global environmental goals by providing systems that sup- external certification, selection based on the Oxford Offset- port the transition to a low-carbon economy. For example, ting Principles, and internal quality controls. Despite our solutions from Smart Infrastructure can facilitate the trans- high standard for all offsetting, physically reducing emissions formation to an electrification of the global energy system. remains Siemens’ top priority. We also do not deduct carbon Even though they do not show a direct decarbonization offsets from our CO2e footprint in order to maintain transpar- impact on the product level, the electrification and automa- ency regarding our emissions. tion products sold by Smart Infrastructure in fiscal 2023 contributed to the decarbonization of power generation Shaping the climate debate and policy systems by avoiding 4.6 million metric tons of CO e emis- Siemens is part of a number of platforms and initiatives that 2 sions. The description of our methodology for calculating allow us to participate in the debate on climate-related issues. these “enabling” customer avoided emissions can be found For example, as part of the UN Global Compact Peer-Learning in our REPORTING PRINCIPLES FOR CUSTOMER AVOIDED EMISSIONS. Group, we are sharing knowledge and lessons learned on However, because there is no recognized market standard various climate-related topics with other companies. for a calculation methodology to quantify these enabling or SIEMENS SUSTAINABILITY REPORT 2023 63