siemens business to societysiemens technology digitalization: insights from 640bn process and pieces...
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Siemens Business to Society Working together to realise the National
Development Plan
siemens.co.zaNDP Vision 2030 Summit
Page 2
Changing business environment is leading to new thinking about growth and
business success
Increasing expectation to:
• Take a broader view of growth beyond increased
output and short-term financial returns
• Demonstrate how business interests are aligned with
the national development agenda and how citizens
will benefit from business operations
• Become a partner in development and in advancing
society
“Companies need to look beyond
the bottom line - they must consider
the impact of their business on
society at large.”
Page 3
Business to society: We identify what matters to SA and quantify our
contribution
Our Business to Society (B2S)
approach looks at the impact of
business in the societies we
operate beyond the traditional
financial bottom line.
It quantifies and demonstrates
how Siemens’ technology, business
activities and voluntary
contributions translate into
sustainable economic,
environmental and social value
with reliable and innovative
metrics.
What really matters to South Africa?
What is Siemens’ impact on the things
that matter?
Economic
growth
Compliance
Education
Health
Page 4
What matters to South Africa
• 23 million people living
in poverty, they live of
less than R620 per
month
• The government’s target
is to grow the economy to
2.7 times its current size
of R3,800bn
• Manufacturing, mining,
automotive and
transportation account for
~25% of GDP
• Unemployment is a key
issue with
5.8 million people
unemployed
• WEF Global
Competitiveness Report
(2016) shows that an
inadequately educated
workforce is the 3rd
most problematic factor
for doing business in
South Africa
• South Africa needs
solutions to over-come
the power crisis and
increase in renewable
energy sources
• Key industries must
become more
automated to remain
competitive
• South Africa is ranked
65/139 countries in ability
to benefit from IT &
digitalization
• Economic growth must
come with a lower carbon
footprint. South Africa
has the 13th highest
CO2e emissions in the
world with 455 million
metric tons emitted and
targeting a 34% CO2e
reduction
• Water is a scarce
resource in South Africa
(ranked as the 30th driest
country in the world)
• Total life expectancy is
57.2 years which gives
South Africa a World Life
Expectancy ranking of
130
• Social responsibility and
long-term commitment of
companies is crucial
• Empowering Historically
Disadvantaged South
Africans is key to foster a
more inclusive society
• SMMEs contributed 42%
to GDP in 2015 up from
33% in 2010
• In Transparency
International’s 2016
Corruption Perceptions
Index South Africa
ranked 64/176 countries
Strengthening the Economy
Developing Local Jobs and Skills
Driving Innovations Sustaining the Environment
Improving Quality of Life
Shaping Societal Transformation
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Siemens Value Map for South Africa
– Together making real what matters
GDP contribution:Contributed R6.8bn in direct
and indirect GVA to the economy
(Petro-) Chemicals: Enabled ~R90bn of SA base chemicals & gases industry value (8 mil.
tons)
Electrification: 31,000 MW of SA's total
installed base & 20% of green electricity managed with
Siemens technology
Digitalization: Insights from 640bn process
and pieces of operation information generated from
smart products
Skills development: 3,984 lives impacted through training and skills development in the
Nkangala District
Job creation: 1,460 people directly
employed with 15,600 jobs enabled
Strengthening the Economy
Developing Local Jobs and Skills
Driving Innovations Sustaining the Environment
Improving Quality of Life
Shaping Societal Transformation
Mining: Enabled ~50% of SA mining
value (R140bn)
Transportation: Enabled ~20% of total rail &
pipeline infrastructure (>5,000 km)
Automotive: Enabled ~50% of total local
car production (240,000 cars)
Employment equity:58% of employees
are historically disadvantaged
Employee training: 5,931training days and R49.6minvested in employee up-
skilling
Waste generated and recycled:
507 tons of waste generated and 96 tons recycled
CO2e offset:2,114 Kt of CO2e offset
through our carbon saving innovations and projects
+
Energy used: 8 403 MWh of electricity
consumed and 9 375 tons CO2e generated
+
Water used: 68 543 kilolitres of water
used (-23%)
+
CSR activities: Siemens investment in CSR activities over the last two
years has impacted 12 720 lives
Health: 34,000 patients benefit daily
from health care based on Siemens equipment
Long-term commitment: 157 years of history in SA
B-BBEE: Level 2
+
Compliance:
>R18m invested in Integrity
Initiative over a 5 year period
Ownership:30% HDSA and employee
ownership
ESD initiatives:30% of procurement spent
with QSEs/EMEs & 20% spent with black women owned *
enterprises
Automation: ~20% of SA’s
total industrial processes enabled with automation
control systems (> 20,000 processes)
Updated!
Technology transfer: 8,851 training days through
SITRAIN™
Siemens Stiftung:~500 educators trained, ~35
000 learners reached & ~240 schools impacted from
2012 to 2016
Page 6 Confidential © Siemens AG 2017 All rights reserved.
Supportedproduction of
240 000
cars
Which is 50% total production
140 000
Of these cars
were exported
Including:
Our contribution to the Automotive Industry
Page 7 Confidential © Siemens AG 2017 All rights reserved.
People employed directly
1 460 90%
Of jobs created are
skilled
28 000
Additional jobs that Siemens SA supports outside of SA industry
(89% are in Africa)
Indirect jobs created
15 600
Our contribution to Job Creation
Page 8 Confidential © Siemens AG 2017 All rights reserved.
640bn Pieces of process and operation information
17 500
Software
engineers
employed
globally
Siemens is one of the biggest software companies in the world
Our contribution to Digitalization
Page 9 Confidential © Siemens AG 2017 All rights reserved.
>R18mInvested
In integrity initiatives over last 5 years
100 points
Siemens has received in the
Compliance category of the
Dow Jones Sustainability
Index (DJSI)
Our contribution to Good Corporate Governance
Page 10 Confidential © Siemens AG 2017 All rights reserved.
30%
B-BBEE shareholding in Siemens South Africa
Higher than the target set : B-BBEE codes (25%)
Our B-BBEE Ownership
Level
2 B-BBEE status
Page 11 Confidential © Siemens AG 2017 All rights reserved.
157years
157 years of history in South Africa
1927In Cape Town, Siemens
electrifies Table
Mountain’s cableway
2007
Siemens commissions the first new
power stations in a democratic
South Africa, Ankerlig and
Gourikwa
1860
Construction of South Africa’s first telegraph line
between Cape Town and Simonstown
1897
Stators for the three-phase generators
in the Brakpan power station, near
Johannesburg
1898
Founding of Siemens Limited
Electrical Engineers
1975
Largest ever order from Anglo
American Corporation for eight
sets electrical mine winders
1982
Order received to equip Kendal,
the largest coal-fired power plant
worldwide
1983
Siemens installs first Magnetic
Resonance Imaging unit at Park
Lane Clinic, Johannesburg
1994
Siemens launches Youthspace
providing safe haven for children living
on the streets, providing shelter,
nourishment and education
2002
As consortium leader, Siemens
awarded first medical Public
Private Partnership project,
Inkosi Albert Luthuli Hospital
2011South Africa’s largest rail
signaling order awarded to
Siemens
2014
Opening of the Mandela
School of Science &
Technology
2014
Completion of the Jeffreys
Bay wind farm
2015
Siemens achieves Level 2
BBBEE status
Our Long-term Commitment to South Africa
2016
Completion of the
Noupoort wind farm
Page 12 Confidential © Siemens AG 2017 All rights reserved.
500
Educators trained
35 000 learners reached & ~240
schools impacted from 2012 to 2016
Learners reached
35 000
Our Siemens Stiftung Experimento
Thank you Sabine Dall’Omo
siemens.co.zaNDP Vision 2030 Summit