1.3 Strategy 1.3 Strategy – We combine the real and the digital worlds to scale Global megatrends sustainability impact Complexity in the industrial world has never been greater – Siemens’ business is focused on enabling customers than today. Several megatrends are driving us to rethink to achieve positive sustainability impact along established ways of doing things: three customer value propositions: decarbonization & energy efficiency, resource efficiency & circularity, → Environmental change and the associated climate change, people centricity & societal impact along with extreme weather conditions like increasing – The DEGREE sustainability framework defines clear flooding and drought, pose critical challenges. Current fields of action for our sustainability ambition legislation alone is insufficient to effectively combat environmental change. We are also facing challenges related to resource efficiency and material extraction, Siemens is a leading technology company with a portfolio water scarcity, and biodiversity loss. designed to drive the digital and sustainable transformation → In times of crisis, glocalization can create a greater balance of industry, infrastructure, mobility, and healthcare. We between the global and the local in our economy. For firmly believe that technology is the answer to creating a instance, by ensuring production of our products and sustainable future. As key pillars of our strategy, digitaliza- solutions near our customers, we can strengthen our tion and sustainability help future-proof our business and resilience to shocks while also reducing the environmental that of our customers. impact of our products. → Increasing urbanization, especially in less-developed Siemens offers technologies and solutions to advance regions, is a significant megatrend. In this context, the growth as societies transition toward a more sustainable demand for more sustainable and efficient products, future. We enable our customers to accelerate the energy technologies, and solutions – including passenger trans- transition, create more resource-efficient factories, smarter portation and access to renewable energy – continues to buildings, and cleaner transportation, and advance health- grow as more and more people move to cities. care. By combining the real and the digital worlds, we → As global population growth progresses at a slower pace, empower our customers to be more competitive and more our societies are aging, and an increasing number of resilient while simultaneously reducing their environmental people need medical care. This demographic change is impact. Managing data across complex value chains has also contributing to a shortage of workers across industries. become an important prerequisite for accelerating this → Lastly, digitalization continues to accelerate advancements transformation. Siemens’ industrial metaverse and digital in connectivity, the Internet of Things (IoT), automation, twin technologies integrate data from physical factories and and AI technologies. Digitalization is being rapidly products across entire lifecycles to optimize production adopted by multiple industries in the public and private design, increase production efficiency, and reduce CO2e sectors. By optimizing processes, it can play a decisive role emissions and the consumption of energy, water, and raw in reducing environmental impacts. materials. Our products, services, and solutions demonstrate how technology advances sustainability and is helping shape the world we want to live in. SIEMENS SUSTAINABILITY REPORT 2023 17