3.3 Sustainable supply chain practices → Zero-tolerance strategy to prevent corruption and bribery The Decarbonization field of action commits us to reducing → Preventing purchases of conflict minerals produced in upstream emissions in our supply chain. As part of this certain countries that yield profits for armed groups, in effort, Siemens has set a target to reduce CO e emissions 2 particular generated in our supply chain by 20% by 2030 compared to → Preventing money-laundering and terrorist financing 2020. We also aim to achieve Net Zero emissions in our → Export control and customs supply chain by 2050.1 → Data protection → Compelling their suppliers to comply with the principles of our Supplier Code of Conduct D Decarbonization Sustainable business practices are an integral part of our Progress on DEGREE ambition #2: Procurement Principles at Siemens. For instance, it requires Net Zero supply chain by 2050, the Supplier Code of Conduct to be incorporated into all 20% emissions reduction by 2030 new and extended procurement contracts. Procurement is responsible for ensuring that suppliers accept the Supplier In fiscal 2023, supply chain emissions decreased by Code of Conduct and do not depart from it. 1% compared to the baseline year 2020, reaching 8,029 kt CO e, with the carbon reduction measures 2 Targets implemented by our suppliers being reflected in this We expect all suppliers to commit to and follow our Supplier number. If the increase in purchasing volume of Code of Conduct. This is also reflected in our DEGREE around 33% is included, CO2e emissions were however sustainability framework as a part of the Governance field of reduced even further in relation to the purchasing action.1 volume. Progress FY 20: 8,098 kt CO e – 1% – 20% by 2030 G Governance 2 – 100% by 2050 Progress on DEGREE ambition #4: Siemens without SHS ESG-secured supply chain based on supplier commitment to our Supplier Code of Conduct Actions and results We expect our suppliers not only to contribute to the economic success of our company but also to ensure Supplier management follows clear criteria strict compliance with our sustainability require- At Siemens, supply chain sustainability is supported by a ments, which are summarized in the Siemens Supplier holistic Prevent – Detect – Respond approach with the aim of Code of Conduct. The obligation of suppliers to effectively mitigating risks. observe our Code of Conduct is an essential founda- tion for fulfilling our governance ambitions bundled Our aim is to raise supplier awareness of the importance of under “G” in our DEGREE sustainability framework. integrating our values and meeting sustainability require- ments. Siemens also provides web-based training on Progress sustainability and human rights in the supply chain for all Suppliers committed our suppliers. Siemens without SHS 1 Siemens without SHS. SIEMENS SUSTAINABILITY REPORT 2023 45