Siemens has reinforced its position as a global sustainability leader through its Sustainability Report 2025, highlighting major progress in industrial decarbonization, circular economy initiatives, workforce development, and digital responsibility. Guided by its DEGREE sustainability framework, Siemens continues to integrate environmental, social, and governance (ESG) priorities into core business operations while supporting customers in their transition toward a low-carbon future.
The DEGREE framework – Decarbonization, Ethics, Governance, Resource Efficiency, Equity, and Employability – remains central to Siemens’ sustainability strategy. The framework embeds sustainability targets into executive compensation and corporate decision-making, ensuring accountability across the organization while aligning business operations with a 1.5°C climate pathway.
“DEGREE is how we deliver impact, guide performance and embed our values in everything we do,” Eva Riesenhuber, Global Head of Sustainability at Siemens, said.
A major achievement in fiscal 2025 was Siemens’ substantial reduction in greenhouse gas emissions. The company reported a 66 percent reduction in Scope 1 and Scope 2 emissions compared with its 2019 baseline. Scope 3 emissions, which cover indirect emissions across the value chain, declined by 11 percent.
Beyond its own operations, Siemens, under the guidance of CEO Roland Busch, has enabled approximately 694 million metric tons of CO₂ equivalent avoided emissions through the lifecycle impact of its products and services, demonstrating the company’s growing role in helping industries decarbonize.
“While we are committed to leading in GHG reduction, we are equally focused on empowering our customers to decarbonize. By transparently quantifying Customer Avoided Emissions, we show how Siemens technologies drive change across our customers’ industries,” Matthias Beer, Head of Climate at Siemens, said.
Siemens also accelerated its circular economy strategy, Judith Wiese, Chief People and Sustainability Officer of Siemens, said. Eco-design integration across relevant hardware, software, and service offerings increased from 16 percent in 2021 to 67 percent in 2025. Waste sent to landfill declined by 52 percent during the same period, reflecting improved resource efficiency and waste management practices. Biodiversity implementation across relevant sites rose from 18 percent to 55 percent, highlighting the company’s increasing focus on environmental conservation and ecosystem protection.
Sustainability is becoming a larger contributor to Siemens’ financial performance. The company reported that 52 percent of eligible revenue is aligned with EU Taxonomy environmental criteria, indicating strong demand for sustainable technologies and solutions. Siemens also invested approximately €6.6 billion in research and development during 2025, supporting sustainable innovation in automation, artificial intelligence, digital twins, industrial software, and smart infrastructure.
On the social front, Siemens expanded educational outreach, reaching 1.1 million people through external learning and skills development programs. Employees completed an average of 36.6 hours of training annually, reflecting continued investment in workforce development. Women now hold 31 percent of top management positions, while the company’s adjusted global pay gap narrowed to 2.0 percent. Siemens also reported a Work Well-being Score of 84, exceeding its internal targets for employee engagement and workplace health.
Cybersecurity remained a strategic priority as Siemens expanded Zero Trust architecture coverage from 16 percent to 62 percent of relevant applications in 2025. The initiative strengthens digital resilience across industrial systems and critical infrastructure environments.
The company’s sustainability leadership continues to receive global recognition. Siemens maintained its MSCI ESG AAA rating, achieved EcoVadis Platinum status, placing it among the top 1 percent of companies globally, and secured inclusion in the CDP Climate A List for climate leadership and transparency.
The Siemens Sustainability Report 2025 demonstrates how sustainability, innovation, and business growth can be integrated into a single corporate strategy. With significant emissions reductions, 694 million metric tons of avoided emissions, 52 percent green revenue alignment, and continued investment in technology innovation, Siemens is positioning itself as a key enabler of sustainable industrial transformation worldwide.
SHAFANA FAZAL
