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Extract from Code of Conduct for suppliers Siemens‘ suppliers undertake: i To act in accordance with the applicable statutory and international standards regarding environmental protection; i to minimize environmental pollution and make contin- uous improvements in env- ironmental protection; i to set up or use an environ- mental management Version 1.0 / 2010-10-5 © Siemens AG / All rights reserved Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by DB Schenker Logistics EcoTransIT, Paris 5 October 2010

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Page 1: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Extract from Code of Conduct for suppliers

Siemens‘ suppliersundertake:i To act in accordance with

the applicable statutoryand international standardsregarding environmentalprotection;

i to minimize environmentalpollution and make contin-uous improvements in env-ironmental protection;

i to set up or use an environ-mental management

Version 1.0 / 2010-10-5

© Siemens AG / All rights reserved

Environmental Protectionin the Supply Chain/Logistics

Joint GHG Emission Inventory forSiemens Shipments handled byDB Schenker Logistics

EcoTransIT, Paris 5 October 2010

Page 2: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 2 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Agenda

EcoTransitITWorld Stakeholder

Workshop

5 October 2010

UIC Headquarters Paris

� Sustainability at Siemens

� Initial situation for carbon footprintassessement

� Requirements and scope

� Shipper's View

� Challenge 1 - Organizational scope

� Challenge 2 - Modes of Transport

� Challenge 3 - Transparency of Methods

� Challenge 4 - Result

� Logistics Provider's View

Page 3: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 3 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Sustainability at SiemensSustainability in Our DNA Ever Since

"I will not sell the future

for instant profit!"

(Werner von Siemens 1879)

1849 Healthcare insurance

1910 Vacation home

1950 Reconstruction bonus

1995 Siemens Environment Report

2001 Business Conduct Guidelines(incl. environmental protection)

2003 Partnership with UNICEF

2005 Generation 21 and Caring Hands

We at Siemens don't just talk about sustainability. We've made the three areas of sustainable development

environment business society

the cornerstone of all our activities.

Page 4: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 4 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Sustainability at SiemensGoals Are Ambitious and Give Directions

Quote: Peter Löscher

Our key sustainability goals

300 million tons less CO2 emitted by our customers

25 billion euros in revenue with ourEnvironmental Portfolio

20% improvement in CO2 efficiency

20%billion euros in revenue with ourEnvironmental Portfolio

Worldwide presence

Basis for competitiveness

Requires global supplychains and consequentlycontributes to global warming

Earth

Sun

Atmo-sphere Heat reflected

back to planet

Reflected sunlight

Infrared rays radiated into space

"Climate and environment protection are therefore an entrepreneurial remit beeing a social responsibility and success factor at same time."Quote: Peter Löscher, CEO Siemens AG

Page 5: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 5 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Initial Situation Dialogue with Main Logistics Providers

"Going it alone" is not enough to avoid waste of resources and to protect climate and environment

Transport sectorcauses 14% ofCO2 emissions

worldwide

April 2008Environmental questionaire to check suppliers fitness

July 2008First workshops with selected logistics providersof importance for Siemens, followed by further workshops

Sept 2009First satisfying results, CO2 report

2010Transfer into regular reporting

Schedule

Those emissionshave to be

influenced to tapthe full potential

for ecological optimization

Targets

i Exchange motives andexpectations

i Set up common understanding on frame of action

i Understand providers methodto evaluate CO2 emissions

i Standardized method to evaluate CO2 emissions

i Elaborate reporting systems- CO2 emissions- Suppliers’ measures and their

impact / effectiveness

i Develop target system

Page 6: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 6 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Requirements and Scope

i Calculation of CO2 emissions

i Annual reportingon company level

Siemens provided

i CalculationBasis

i ProcessDescription

Siemens expects You can't manage what you don't measure….

…but don't overdo it:

Final Remark

i Reporting is one side of the coin

i Ecologic and efficient supply chain the other side

Page 7: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 7 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Agenda

EcoTransitITWorld Stakeholder

Workshop

5 October 2010

UIC Headquarters Paris

� Sustainability at Siemens

� Initial situation for carbon footprintassessement

� Requirements and scope

� Shipper's View

� Challenge 1 - Organizational scope

� Challenge 2 - Modes of Transport

� Challenge 3 - Transparency of Methods

� Challenge 4 - Result

� Logistics Provider's View

Page 8: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 8 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea SchönPage 8 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Challenge 1Embracing all SIEMENS Business Units

Page 9: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 9 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea SchönPage 9 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Challenge 2Embracing All Shipments for All Modes of Transport

� Rail transport in Europe

� Road transport in Europe

� Air transport worldwide / U.S. domestic

� Ocean shipping worldwide:- container shipping- bulk shipping

� Pre-/on-carriage air & ocean transport (modal split)

� Terminal handling

Page 10: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 10 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea SchönPage 10 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Challenge 3Transparency of Methods

� Laying the basisDB Schenker Logistics annual footprint

� Defining system boundaries: - Scope - Correction factors- RFI

� Locating sensitivities

Page 11: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 11 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea SchönPage 11 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Challenge 4Explaining the Result

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

tons CO2

Co2 emissions per mode of transport

Air Ocean Truck (Ocean) Rail (Ocean) Truck (domestic)

Page 12: Environmental Protection in the Supply Chain/Logistics · Environmental Protection in the Supply Chain/Logistics Joint GHG Emission Inventory for Siemens Shipments handled by

Page 12 EcoTransitIT World, Stakeholder Workshop 5th October 2010 – Siemens AG, Birgit Heftrich und DB Schenker, Andrea Schön

Thank you very much for your attention

Contact:

Birgit HeftrichCorporate Supply Chain ManagementEnvironmental Issues in the Supply Chain

Werner-von-Siemens-Str. 5091052 Erlangen

[email protected]

http://www.siemens.com

Contact:

Andrea SchönEnvironmental & Green Logistics ManagerCorporate Risk Management

Alfredstr. 8145130 Essen

[email protected]

http://www.dbschenker.com

Contact: