2.2 Sustainability governance and organization 2.2 Sustainability governance and organization – Responsibility for sustainability at Siemens lies Supervisory Board meets regularly to discuss business devel- with the Managing Board and Chief Sustainability opment, planning, strategy, and the implementation of that Officer, supported by the Siemens Sustainability strategy. Board – The Sustainability Executive Committee is our More detailed information on the structure and responsibilities guidance body for Siemens’ sustainability business of the Managing Board and Supervisory Board can be found with a focus on portfolios, market segments, and in the SIEMENS FINANCIAL REPORT FOR FISCAL 2023, COMBINED go­to­market topics MANAGEMENT REPORT, CORPORATE GOVERNANCE STATEMENT – ESG criteria are included in the compensation system for members of the Managing Board and Clear organizational structure and senior managers responsibilities In 2023, we significantly strengthened our sustainability organization throughout the company by introducing the At Siemens, sustainability is rooted in all that we do, includ- Sustainability Executive Committee (EC SUS) and Heads of ing our business purpose and strategy, corporate culture, Sustainability in key businesses and business units, and we processes, and guidelines. The management of sustainability increased the responsibility of the Global Head of Sustain- matters is embedded across our Siemens businesses, Service ability (Global Head of SUS) and the Siemens Sustainability and Governance units, and countries. Sustainability has also department. been an integral component of management compensation since fiscal 2020. Put simply, we strive to make sustainability The Managing Board addresses sustainability-related risks everyone’s responsibility at Siemens. - and opportunities of strategic and company-wide impor tance and adopts appropriate measures. The Managing Foundation: Corporate governance Board also approves any changes to the DEGREE sustainability We believe that compliance with recognized principles of framework. corporate governance is the cornerstone of sustainability- based corporate management. Siemens AG is governed by The Siemens Sustainability Board (SSB) monitors and German corporate law, under which it has a two-tier board resolves Siemens’ sustainability topics, including tracking structure consisting of a Managing Board and a Supervisory the progress of our DEGREE ambition, providing input and Board. guidance on sustainability reporting, and acting as a catalyst for regional sustainability initiatives with the potential to As the top management body, the Managing Board is scale across Siemens. The SSB is composed of representa- responsible for serving the company’s best interests and for tives from Siemens’ businesses, countries, and Service and achieving sustainable growth in company value. The Managing Governance units. The SSB meets four times per year or Board members are responsible for the entire management more frequently as needed. The SSB provides updates and of the company and decide on key issues of business policy recommendations to the Managing Board. and corporate strategy. The Sustainability Executive Committee (EC SUS) acts as The Supervisory Board oversees and advises the Managing guidance body for Siemens sustainability business – the Board in its management of the company’s business. The Siemens portfolio that enables positive sustainability impact SIEMENS SUSTAINABILITY REPORT 2023 23